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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 96-2141 In the Matter of ) ) CALL AMERICA BUSINESS ) COMMUNICATIONS CORPORATION) ) Application for authority,) File No. I-T-C-96-566(TC) pursuant to Section 214 of ) the Communications Act of) 1934, as amended, to transfer ) control of an international) resale carrier.) MEMORANDUM OPINION, ORDER AND AUTHORIZATION Adopted: December 17, 1996Released: December 19, 1996 By the Chief, Telecommunications Division: 1.Call America Business Communications Corporation (Call America), pursuant to Section 214 of the Communications Act of 1934, as amended, submitted the above-captioned application requesting authority to transfer control of Call America to GST Telecommunications, Inc. (GSTTI). Call America also requests authority, nunc pro tunc, to acquire the 55% interest of its original co-venturer, Scott Hindes. The application was placed on public notice on October 25, 1996. No comments were received. 2.Call America, a privately held California corporation, is a certified international communications carrier, authorized to provide switched resale services between the United States and various overseas points. GSTTI, a Canadian corporation, has its U.S. corporate headquarters in the state of Washington. GSTTI is the parent of GST USA, Inc., a Delaware corporation which, in turn, wholly owns GST Telecom, a Delaware corporation which, in turn, wholly owns GST Newco of California, Inc. (GST sub), an entity recently incorporated specifically for this transaction. GSTTI's subsidiaries are already active in telecommunications in the United States in both the manufacture of equipment and the provision of telecommunications services. 3.The parties have agreed to a two-stage transaction whereby GSTTI will first acquire Call America's outstanding shares of capital stock by merger of GST sub into Call America. The surviving entity will assume the name of Call America. Second, GSTTI will transfer the Call America stock to GST Telecom. 4.Call America has also requested authority, nunc pro tunc, to acquire the 55% interest of its co-venturer, Scott Hindes. This transfer took place on November 15, 1989. The original authorization was issued to Call America and Mr. Hindes as a joint venture a year and a half earlier. The parties state that when Call America acquired Mr. Hindes' joint venture interest, the transfer did not in any way inconvenience or cause harm to the company's customers. The parties state that the proposed merger will strengthen the competitive position of both companies because of the increased financial resources, and thus greatly improve the competitive position of the surviving entity. The parties expect the merger to enhance the flexibility and efficiency of the surviving entity, while making use of already existing management and operations staff. 5.Upon consideration of the application and in view of the foregoing, we conclude that the transfer of Scott Hindes' interest in Call America to Call America and the further transfer of control of Call America to GSTTI will serve the public interest, convenience and necessity. Under the circumstances present here, we do not find that any enforcement action is necessary regarding the previously unauthorized transfer of control. However, we admonish Call America, under this new ownership, to comply with all Commission rules and regulations in the future. 6.Accordingly, IT IS ORDERED that the application of Call America, File No. I-T-C-96-566(TC) IS GRANTED, and a.the transfer of Scott Hindes' 55% interest in the joint venture to Call America is authorized, nunc pro tunc; and b.the transfer of control of Call America to GSTTI is authorized. 7.IT IS FURTHER ORDERED that all terms and conditions of any Commission orders granting authority to Call America to provide common carrier services remain in effect. 8. 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