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Domestic 214 Transfer of Control of Alec, LLC to MBS Holdings LLC

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Released: January 15, 2014


Federal Communications Commission

News Media Information 202 / 418-0500

445 12th St., S.W.


Washington, D.C. 20554

TTY: 1-888-835-5322

DA 14-44

Released: January 15, 2014




WC Docket No. 14-5

Comments Due: January 29, 2014
Reply Comments Due: February 5, 2014

On January 6, 2014, IBBS Holdings, LLC (Holdings), ALEC, LLC (ALEC), and MBS Holdings,
Inc. (MBS) (collectively, Applicants) filed an application pursuant to section 63.03 of the Commission’s
rules1 to transfer control of ALEC to MBS.
ALEC, a Kentucky limited liability company, provides competitive local exchange carrier (LEC)
and other telecommunications services in multiple states and is an indirect, wholly owned subsidiary of
Holdings, a Delaware limited liability company.2 Holdings does not itself offer domestic
telecommunications services but has other affiliates that provide Voice over Internet Protocol (VoIP)
service.3 MBS, through its operating affiliate, Momentum Telecom, Inc., provides residential and
business VoIP services in multiple states. Applicants state that the following U.S. based entities and U.S.
citizens will have a 10 percent or greater direct or indirect ownership interest in MBS at the time the
proposed transaction is consummated: Estate of William W. Featheringill (14. 5 percent) (Carolyn
Featheringill is the Trustee of the Estate); FIG LLC (12.4 percent), Ramsey Management LLC (11.8
percent) (both controlled by Carolyn Featheringill), and PIG LLC (11.1 percent) (controlled by Elizabeth
Pharo). Applicants state that no other individual or entity will have a 10 percent or greater direct or
indirect interest in MBS. They further state that neither Ms. Featheringill nor Ms. Pharo has a 10 percent
or greater interest in any other domestic telecommunications carrier.

1 47 C.F.R § 63.03; see 47 U.S.C. § 214. Applicants filed a supplement to their domestic section 214 application on
January 14, 2014.
2 ALEC, LLC is a wholly owned subsidiary of SinglePipe, LLC, which is a wholly owned subsidiary of Integrated
Broadband Services, LLC (IBBS). Applicants state that ALEC is Holdings’ only regulated telecommunications
carrier affiliate. ALEC provides telecommunications services in Alabama, Arkansas, Florida, Georgia, Idaho,
Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, Nevada, New Jersey, North Carolina, Ohio,
South Carolina, Tennessee, and Texas.
3 Applicants state that Holdings is 13 percent owned by the KPB Family GST Investment Trust and 54 percent
owned by Pamlico Capital II, LP. Pamlico is 83 percent owned by Wachovia Investors, Inc., which is wholly owned
by Wells Fargo & Company, a publicly held company. All entities are U.S. based.

Pursuant to the terms of the proposed transactions, MBS, through a wholly owned subsidiary,
MBS Intermediate Holdings, LLC, will acquire 100 percent of the outstanding equity of IBBS. As a
result, ALEC will become an indirect, wholly owned subsidiary of MBS. Applicants assert that the
proposed transaction is entitled to presumptive streamlined treatment under section 63.03(b)(2)(i) of the
Commission’s rules and that a grant of the application will serve the public interest, convenience, and
Domestic Section 214 Application Filed for the Transfer of Control of ALEC, LLC to
MBS Holdings, Inc., WC Docket No. 14-5 (filed Jan. 6, 2014).


The transfer of control identified herein has been found, upon initial review, to be acceptable for
filing as a streamlined application. The Commission reserves the right to return any transfer application
if, upon further examination, it is determined to be defective and not in conformance with the
Commission’s rules and policies. Pursuant to section 63.03(a) of the Commission’s rules, 47 CFR §
63.03(a), interested parties may file comments on or before January 29, 2014 and reply comments on or
before February 5, 2014.
Pursuant to section 63.52 of the Commission’s rules, 47 C.F.R. § 63.52,
commenters must serve a copy of comments on the Applicants no later than the above comment filing
date. Unless otherwise notified by the Commission, the Applicants may transfer control on the 31st day
after the date of this notice.5
Pursuant to section 63.03 of the Commission’s rules, 47 CFR § 63.03, parties to this proceeding
should file any documents in this proceeding using the Commission’s Electronic Comment Filing System

In addition, e-mail one copy of each pleading to each of the following

1) Tracey Wilson, Competition Policy Division, Wireline Competition Bureau,;
2) Jodie May, Competition Policy Division, Wireline Competition Bureau,;
3) Jim Bird, Office of General Counsel,
People with Disabilities: To request materials in accessible formats for people with disabilities
(braille, large print, electronic files, audio format), send an e-mail to or call the
Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (tty).
The proceeding in this Notice shall be treated as a “permit-but-disclose” proceeding in
accordance with the Commission’s ex parte rules.6 Persons making ex parte presentations must file a
copy of any written presentation or a memorandum summarizing any oral presentation within two
business days after the presentation (unless a different deadline applicable to the Sunshine period

4 47 C.F.R. § 63.03(b)(2)(i).
5 Such authorization is conditioned upon receipt of any other necessary approvals from the Commission in
connection with the proposed transaction.
6 47 C.F.R. §§ 1.1200 et seq.

applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the
presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex
presentation was made, and (2) summarize all data presented and arguments made during the
presentation. If the presentation consisted in whole or in part of the presentation of data or arguments
already reflected in the presenter’s written comments, memoranda or other filings in the proceeding, the
presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or
other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be
found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission
staff during ex parte meetings are deemed to be written ex parte presentations and must be filed
consistent with rule 1.1206(b), 47 C.F.R. § 1.1206(b). Participants in this proceeding should familiarize
themselves with the Commission’s ex parte rules.
For further information, please contact Tracey Wilson at (202) 418-1394 or Jodie May at
(202) 418-0913.
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