II. COMPANY BACKGROUND
Americatel is a Delaware corporation with offices at 7361 Calhoun Place, Suite 650, Rockville, Maryland. The Commission granted Americatel a Certificate of Public Convenience and Necessity (CPCN) to be a switchless reseller of inter-Local Access and Transport Area (LATA) telecommunications services in December 1997 through Decision (D.)97-12-128 (U-5918-C). The Commission also authorized Americatel to provide intra-LATA telecommunications services offered by communications carriers in California. Additionally, the FCC has granted Americatel authority to provide interstate and international services and intrastate long distance services throughout the contiguous United States.
Americatel provides telecommunications services in the United States with connections to Latin America and the Caribbean. Americatel targets primarily Hispanic customers.6
In 2008, the Commission granted Americatel authority to acquire control of Startec Global Operating Company (Startec), another Delaware corporation in Maryland.7 In California, Startec held a CPCN (U-5604-C) to provide resale interexchange telecommunications service. Startec primarily provided services to customers that place calls to international destinations. Following the acquisition of Startec, Americatel continued to serve Startec's customer base, under the Startec brand.
Platinum Equity -a limited liability company formed under the laws of Delaware and headquartered in Beverly Hills, California- has indirectly held 95 percent of the equity in Americatel since July 2006.8 Platinum Equity is a global firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, (information technology, telecommunications, logistics, manufacturing and entertainment distribution).9
A. Services Provided by Americatel
Americatel currently offers two basic types of long distance services that do not require customers to change their current long distance company:12 (1) dial-around; and, (2) contracted dial-around. Under the dial-around, a customer needs only to dial an access code at the beginning of the call to access Americatel's service. Dial-around is marketed under the 1010123 and the Ametex 1015688 brands/codes.13
Similarly under the contracted dial-around, the customer needs only to dial Americatel's access code at the beginning of the call to access his/her Americatel calling plan. However, the contracted dial-around calling plans involve payment of a monthly fee. Examples of these plans are the Uniendo America and the LineaPais brands. In Uniendo America, residential and business customers agree to pay a monthly fee in exchange for a lower per-minute rate. In LineasPais, residential customers agree to pay a monthly fee and are assigned a local telephone number in the foreign country of their choice. Calls to the assigned local telephone number from friends and relatives from the selected foreign country are routed to the customer's activated telephone number in the U.S.14
Additionally, Americatel offers prepaid calling plans, such as the LineaPais Prepagada (a contracted service wherein only the inbound component is available on a prepaid basis) and the Americatel Prepagado, formerly called 1010123 (wherein customers pay no monthly fee).15
Through a billing arrangement with local telephone companies, the applicable monthly fees that are charged by Americatel show as a line item on the customers' monthly local telephone bill, and the usage charges are billed consistent with the customers' selected calling rate plan.
B. Americatel's marketing strategy
Americatel utilizes telemarketers to promote and market its services and calling plans. On February 1, 2008, Americatel entered into a Marketing Agreement (Agreement) with Bravo Marketing, Inc., (Bravo) a Florida corporation with offices at 2100 Constitution Boulevard, Sarasota, Florida 34231. Bravo was formed as a Florida corporation in January 2008.16
According to the Agreement, Bravo was required to promote and market Americatel's calling plans (which meant collectively the LineaPais and the UniendoAmerica calling plans)17 to consumers at public events and through other face-to-face contacts. The Agreement contains the following provisions, among others:
"Section 3.3, Bravo shall consummate sales of the Calling Plans by either (1) having each End User execute a Letter of Authorization on a form provided by Americatel or (2) by initiating a telephone call between the End User and Americatel's call center so that the new End User may be signed to a Calling Plan according to Americatel's sales procedures."
"Section 3.6 Bravo shall ensure that each End User who purchases an Americatel Calling Plan (a) executes a Letter of Authorization (in the form provided by Americatel) or completes a sales call with Americatel's call center and (b) receives a Brochure (also in the form provided by Americatel.)"
With regard to commissions, the Agreement contains a provision that if an end-user voluntarily or involuntarily cancels within 30 or 60 days (depending on the calling plan), the commission paid or payable to Bravo shall be cancelled, offset and deducted against any commission payable to Bravo.18
6 As described by Americatel in its Advice Letter No. 21 filed December 17, 2007 (Attachment J) and at http:www.americatel/EN/corporate/
7 Through Advice Letter No. 21 filed on December 17, 2007, Americatel advised the Commission of the pro forma corporate restructuring involving the merger of Startec Global Operating Company (Startec) (U-5604-C) and Americatel. In this restructuring, Startec would relinquish its operating authority in California and cease to operate. Americatel would be the surviving company that would assume the customers and operations of Startec -under the Startec brand name- consistent with Americatel's authorities to provide telecommunications services. (Attachment J)
8 Ibid.
9 Americatel web site at http://www.americatel/EN/corporate/
10 January 28, 2008 Americatel Data Response No. 1 (Attachment A)
11 June 2, 2009 Americatel e-mail (Attachment F-2) In this e-mail Americatel stated that the revenues provided on January 28, 2008 are too large to represent Americatel's California intrastate revenues. While uncertain since the individuals and the systems that provided the data are no longer with the company, Americatel believes that the earlier provided figures may have represented revenues from intrastate, interstate and international calls that originated in California.
12 Technically referred to as Primary Interexchange Carrier (PIC)
13 January 28, 2008 Americatel Data Response (Attachment A)
14 Ibid.
15 Ibid.
16 February 2, 2009 Americatel Data Response, page 2, (Attachment E-2)
17 Ibid., at Attachment C
18 Ibid.
