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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** DA 97-1392 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) Applications of ) Centerior Telecom Company, ) Centerior Communications Holdings, Inc., and ) File No. ETC-97-6 Centerior PCS Cleveland, Inc. ) for a Determination of Exempt Telecommunications ) Company Status Under Section 34 of the Public Utility ) Holding Company Act of 1935, as added by ) Section 103 of the Telecommunications Act of 1996 ) ORDER Adopted: July 2 , 1997 Released: July 2, 1997 By the General Counsel: 1. On May 22, 1997, Centerior Telecom Company (Centerior Telecom), Centerior Communications Holdings, Inc. (Centerior Communications), and Centerior PCS Cleveland, Inc. (Centerior PCS) (individually an "Applicant" and collectively the "Applicants") filed a consolidated application with the Commission for a determination that each Applicant qualifies for "exempt telecommunications company" ("ETC") status pursuant to section 34(a)(1) of the Public Utility Holding Company Act of 1935 ("PUHCA"), as added by section 103 of the Telecommunications Act of 1996. The Applicants' application was placed on public notice for comment on the adequacy and accuracy of the representations contained therein on May 23, 1997. Centerior Telecom Company, et al., Public Notice, DA No. 97-1084 (OGC rel. May 12, 1997). No comments were filed in response to the public notice. As explained below, each Applicant individually satisfies the statutory criteria required for an affirmative determination of ETC status and, therefore, the Applicants' consolidated application is granted. 2. Each of the Applicants represents that it is an Ohio corporation. Centerior Telecom and Centerior Communications are each wholly-owned subsidiaries of Centerior Enterprises, Inc, which is in turn a wholly-owned subsidiary of Centerior Energy Corporation. Centerior PCS is a wholly-owned subsidiary of Centerior Communications. The Applicants further represent that each is and will continue to be engaged, directly or indirectly through one or more "affiliates," as defined in Section 2(a)(11)(b) of PUHCA, and exclusively in the business of providing telecommunications services, information services, other services or products subject to the jurisdiction of the Commission, or products or services that are related or incidental to the provision of such products or services, within the meaning of Section 34(a)(1) of PUHCA. The respective activities of each Applicant are discussed below. 3. According to the consolidated application, Centerior Telecom provides a variety of communications services and facilities to the affiliated companies of Centerior Energy and to outside customers. Centerior Telecom's activities include the construction and operation of an extensive fiber optic transmission network in northern Ohio, and the construction and maintenance of wireless transmission facilities on property leased from Centerior Energy's utility affiliates. While Centerior Telecom states that its long-term plans include the provision of network services to end-users, at present its activities focus on the provision of services and facilities to interexchange carriers, competing access providers, and wireless communications services providers. 4. According to the consolidated application, Centerior Communications provides no communications services to the public and has no technical operations. Rather, Centerior Communications participates in investment activities relating to communications companies, advanced technology, and communications related ventures. At present, Centerior Communications' sole investment activity is its 100 percent equity ownership of Centerior PCS. 5. Centerior PCS does not directly provide communications services to the public. However, Centerior PCS participates as a 25 percent equity owner in AT&T Wireless PCS of Cleveland, LLC, which is constructing a PCS network in the Cleveland, Ohio Metropolitan Trading Area. 6. Based upon the representations contained in the Applicants' consolidated application, we find that each Applicant meets the statutory requirements for a determination that it is an exempt telecommunications company as that term is defined in PUHCA section 34(a)(1), as amended. 7. Accordingly, IT IS ORDERED that Applicants' consolidated application IS GRANTED. IT IS FURTHER ORDERED that the Securities and Exchange Commission SHALL BE NOTIFIED of this determination. FEDERAL COMMUNICATIONS COMMISSION William E. Kennard General Counsel