New Investment In XO Communications, Inc.

This page provides information on applications filed by XO Communications, Inc. pursuant to sections 214 and 310(d) of the Communications Act of 1934, as amended, seeking Commission approval of the proposed transfer of control of certain Commission licenses and authorizations held by Craig O. McCaw and the existing shareholders of XO to the new shareholders of XO, which will include, as 10 percent or greater shareholders, Forstmann Little & Co. Equity Partnership-VII, L.P. and Forstmann Little & Co. Subordinated Debt and Equity Management Buyout Partnership-VIII, L.P., and Teninver, S.A. de C.V., an indirect wholly owned subsidiary of Teléfonos de México, S.A. de C.V. Specifically, the licenses and authorizations to be transferred include licenses and authorizations held by XO and its subsidiaries to provide domestic and international telecommunications services pursuant to parts 63, 90, and 101 of the Commission’s rules. In addition, the Applicant seeks a declaratory ruling pursuant to section 310(b)(4) of the Act, that it will not serve the public interest to prohibit indirect foreign ownership of XO's wireless licenses in excess of the statutory 25 percent foreign ownership benchmark by Telmex and a general partner of Forstmann Little, Gordon A. Holmes, a citizen of the Republic of Ireland

These applications have been consolidated under IB Docket No. 02-50, and most of the record in the proceeding is accessible through the Electronic Comment Filing System. Copies of documents in the record may also be obtained for a fee from FCC's duplicating contractor Qualex International, or may be viewed and/or copied at the FCC Reference Center.

Timeline

Record Documents

Below is a list of record documents in reverse chronological order.

10/21/02
Letter concerning Stock Purchase Agreement filed by XO Communications, Inc.

10/03/02
Memorandum, Opinon, Order and Authorization, DA 02-2512, (IB, WTB, WCB) Acrobat | Text | Word and attached Petition to Adopt Conditions to Authorization and Licenses filed by the Department of Justice and the Federal Bureau of Investigations Acrobat | Text

09/19/02
Response to International Bureau's September 10 Request for Additional Information filed by Forstmann Little & Co. Equity Partnership-VII, L.P. et al.

Response to Wireless Telecommunications Bureau's September 13 Request for Additional Information filed by XO Communications, Inc.

09/17/02
FCC Letter/Request for Additional Information Stops the Clock

09/16/02
Letter and Petition to Adopt Conditions to Authorization and Licenses filed by the Department of Justice and the Federal Bureau of Investigations

09/13/02
Response to International Bureau's September 10 Request for Further Information filed by Forstmann Little & Co. Equity Partnership-VII, L.P. et al.

9/11/02
Notice of Ex Parte Presentation filed by XO Communications, Inc.

08/30/02
Bankruptcy Court Order Confirming Third Amended Plan of Reorganization filed by XO Communications Inc.

Response to Request for Additional Time to Respond filed by XO Communications, Inc. Acrobat | Acrobat

08/29/02
Request for Additional Time to Respond to the International Bureau's Request for Further Information filed by Forstmann Little & Co. et al.

08/08/02
Additional Response to Request for Additional Information, Bankruptcy Court rulings, filed by XO Communications Inc. Acrobat | Acrobat | Acrobat | Acrobat

08/07/02
Response to Request for Additional Information filed by XO Communications Inc.

8/02/02
Disclosure Statement With Respect to Third Amended Plan of Reorganization of XO Communications, Inc. Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat | Acrobat

7/17/02
Notice of Ex Parte Presentation filed by XO Communcations, Inc.

07/03/02
Letter/Amendment to Applications and Petitions filed by XO Communications, Inc.

06/19/02
Notice of pro forma transfer of control to a debtor-in-possession filed by XO Communications, Inc.

06/17/02
Notice of voluntary petition to reorganize under Chapter 11 filed by XO Communications, Inc.

05/09/02
Additional Information to Supplement Information Provided in Applications filed by XO Communications, Inc.

Responses/Oppositions due 05/06/02
Responses/Oppositions

Comments/Petitions due 04/10/02
Comments/Petitions

04/09/02
Order Extending Comment Period, DA 02-790 (IB) Acrobat | Word | Text

04/05/02
Request for Extension of Time filed by XO Communications, Inc.

3/11/02
Public Notice, Commission Seeks Commment On Applications For Consent To Transfer Control Filed By XO Communications, Inc., DA 02-579, IB Acrobat | Word | Text

Applications

2/21/02
Section 310(b)(4) Application, Indirect Foreign Ownership

Application for Transfer of Control and Petition For A Declaratory Ruling, File No. ISP-PDR-20020221-00007

Section 310 Applications, Parts 90 and 101 - Wireless Services, Applications For Consent To Transfer Control from Craig O. McCaw and the current shareholders of XO to the new shareholders of XO, including Forstmann Little and Telmex

File No. 0000774240, Licensee XO Communications, Inc., Call Sign WPRT576

File No. 0000753828, Licensee XO LMDS Holdings, No. 1, Inc., Lead Call Sign WPLM397 (multiple authorizations)

File No. 0000772528, Licensee XO LMDS Holdings No. 1, Inc., Lead Call Sign WPQT938 (multiple authorizations)

International Section 214 Applications, Part 63 - International Service (47 C.F.R. § 63.18), Consent to transfer control of international Section 214 authorizations from Craig O. McCaw and the current shareholders of XO to the new shareholders of XO, including Forstmann Little and Telmex

File Number ITC-T/C-20020221-00095, Authorization Holder XO Communications, Inc., Authorization ITC-214-20001117-00674

File Number ITC-T/C-20020221-00096, Authorization Holder XO Long Distance Services, Inc., Authorization ITC-214-19990402-00197

Domestic Section 214 Application, Part 63 - Domestic Service (47 C.F.R. § 63.01), XO Communications, Inc. and its wholly-owned subsidiaries, as holders of blanket domestic Section 214 authority, have filed an application for transfer of control from Craig O. McCaw and the current shareholders of XO to the new shareholders of XO, including Forstmann Little and Telmex

Background

XO is a Delaware corporation that provides voice, data and other services to business customers in the United States and abroad. XO is currently engaged in a corporate restructuring that it states is critical to the company’s financial survival. The restructuring will include the cancellation of existing common stock and the issuance of new voting common stock of XO to Telmex and Forstmann Little in exchange for $400 million from each of Forstmann Little and Telmex. XO states that upon consummation of the transaction, Forstmann Little and Telmex will each hold a non-controlling minority interest of approximately 40 percent in XO. The Applicant also states that no single shareholder will control XO, and that it is not anticipated that any other shareholder will hold more than a 10 percent interest in the company.

Forstmann Little Equity VII, which proposes to hold 25 percent of the voting stock of XO, and Forstmann Little MBO VIII, which proposes to hold 15 percent of the voting stock of XO, are Delaware limited partnerships. Forstmann Little Equity VII and Forstmann Little MBO VIII are affiliated with Forstmann Little & Co., a private equity firm that was formed in 1978. The Forstmann Little partnerships are part of a family of affiliated private investment funds. The Applicant states that Gordon A. Holmes, a citizen of the Republic of Ireland, is one of the general partners of the Forstmann Little entities investing in XO.

Applicant states that Telmex is a publicly traded Mexican corporation providing telecommunications services in Mexico. According to the application, Telmex is controlled by Carso Global Telecom, S.A. de C.V. (“CGT”), a Mexican holding company. Approximately 67 percent of the shares of CGT are held in trust for investment purposes for Carlos Slim Helu and his family members, all of whom are Mexican citizens. Through intermediate holding companies, Telmex owns 100 percent of the capital stock of Teninver, the Mexican entity through which Telmex proposes to make its investment in XO. Telmex’s indirect, wholly owned subsidiary, Telmex USA, L.L.C., is authorized to provide international switched resale services in the United States, including on U.S. international routes where it is, or is affiliated with, a foreign carrier: specifically, the U.S.-Mexico, U.S.-Guatemala, and U.S.-Argentina routes.

The Applicant asserts that the transaction will produce significant public benefits, including greater competition in the provision of local telecommunications services. The Applicant asserts that the proposed transaction and the debt restructuring associated with it will provide critical funding for XO and a substantial reduction in its debt that will preserve and strengthen the company. The Applicant also submits that the proposed transaction will have no adverse effect on competition in any of the telecommunications markets in which XO provides services.

Clock History

Day 1 was on: 3/11/02
This information was last updated on: 10/07/02

Clock Stopped		Clock Restarted	Days Stopped	Reason for Stop
Day	Date
172	10/03/02 9/10/02			10/03/02 Memorandum, Opinon, Order and Authorization, DA 02-2512, (IB, WTB, WCB) 9/17/02 FCC Letter/Request for Additional Information Stops the Clock
30	4/10/02	4/22/02	12	4/9/02 Order Extending Comment Period, DA 02-790 (IB)[ Acrobat | Word | Text ]