Applicants state that the proposed transaction involves only a change in corporate structure of a reseller of telecommunications services. According to Applicants, approval of this application will enhance Global's ability to compete in the market for telecommunications services in California. The proposed transfer of control will strengthen Global as a competitor by providing access to financial resources necessary for Global to expand its customer base and develop new products and services to meet the evolving communications needs of authorities in California that operate correctional institutions and other confinement facilities.
Further, Applicants state that the transaction will have no adverse effect upon customers. The transaction will not result in any changes to Global's service to its current customers. Global's corporate officers and management team responsible for its day-to-day operations are expected to remain essentially the same immediately following the merger. The proposed transaction will not have an adverse effect on non-management employees of Global, and no staff reductions are presently contemplated. In addition, the contact points for customers and Commission inquiries will remain the same after the transfer of control. Nor does the proposed transfer of control raise any competitive concerns. GTEL Acquisition Corp. holds no investments in the type of telecommunications authorizations held by or services offered by Global, and thus the proposed transaction will not result in any consolidation in the market for telecommunications services to the corrections industry in California. According to Applicants, the only impact of the proposed transaction is financial in that Global will obtain access to increased resources necessary to become an even more effective competitor.