******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 97-1575 In the Matter of ) ) CHAUTAUQUA & ERIE ) COMMUNICATIONS, INC. ) ) Application for authority, ) File No. I-T-C-97-323-TC pursuant to Section 214 of ) the Communications Act of ) 1934, as amended, to transfer ) control of a company holding ) a Section 214 authorization. ) MEMORANDUM OPINION, ORDER AND AUTHORIZATION Adopted: July 18, 1997Released: July 28, 1997 By the Chief, Telecommunications Division: 1.Chautauqua & Erie Communications, Inc. (Chautauqua & Erie), pursuant to Section 214 of the Communications Act of 1934, as amended, submitted the above-captioned application requesting authority to transfer indirect control of Chautauqua & Erie to MJD Holdings Corp. (MJD). The application was placed on public notice on June 18, 1997. No comments were received. 2.Chautauqua & Erie, a New York corporation and a wholly-owned subsidiary of Chautauqua & Erie Telephone Corporation (C&E), is authorized to provide international switched message services between the United States and various overseas points. MJD, a Delaware corporation, is a holding company which owns rural telephone and other communications interests. As part of the proposed transaction, a subsidiary of MJD will be merged into C&E, with C&E being the surviving entity. Thus, Chautauqua & Erie will become an indirect wholly-owned subsidiary of MJD. 3.Upon consideration of the application and in view of the foregoing, we conclude that consent to indirect transfer control of Chautauqua & Erie to MJD will serve the public interest, convenience and necessity. 4.Accordingly, IT IS ORDERED that application File No. I-T-C-97-323-TC IS GRANTED, and the transfer of indirect control of Chautauqua & Erie to MJD is authorized. 5.IT IS FURTHER ORDERED that all terms and conditions of any Commission orders granting authority to Chautauqua & Erie to provide common carrier services remain in effect. 6.IT IS FURTHER ORDERED that, to the extent the applicant originates these authorized services in the local exchange area of an affiliated incumbent local exchange carrier (ILEC), or otherwise provides "in-region" service, as these terms are defined in Regulatory Treatment of LEC Provision of Interexchange Services in the LEC's Local Exchange Area and Policy and Rules Concerning the Interstate, Interexchange Marketplace, Second Report and Order in CC Docket No. 96-149 and Third Report and Order in CC Docket No. 96-61, FCC 97-142 (released April 18, 1997), at paragraph 4, n. 13, recon., FCC 97- 229 (released June 27, 1997) (LEC Classification Order), it shall do so subject to the following conditions: (1) the applicant shall maintain separate books of account from the affiliated ILEC; (2) the applicant shall not jointly own any transmission or switching facilities with the affiliated ILEC; (3) the applicant shall take any tariffed services from the affiliated ILEC pursuant to the terms and conditions of the ILEC's generally applicable tariff; and (4) the applicant shall be treated as a nonregulated affiliate for purposes of local exchange carrier accounting under the Commission's joint cost and affiliate transactions rules as set forth in Parts 32 and 64 of the Commission's Rules. These interim conditions will continue to apply until the LEC Classification Order becomes effective, at which time these conditions will be superseded by the rules adopted in that order. 7. This Order is issued under Section 0.261 of the Commission's Rules and is effective upon adoption. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission's Rules may be filed within 30 days of the date of public notice of this Order (see Section 1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau