Proposed Transaction
Under this transaction, pursuant to a merger, the shareholders of Parent will transfer all of the membership interests in NTI to Zayo.3 As a result, Zayo will hold a 100% ownership interest in NTI.
NTI will continue to hold its CPCN to provide telecommunications services in California.
Applicants represent that this change in ownership will benefit NTI and its customers, because NTI will gain access to the additional resources and operational expertise of Zayo. Applicants also state that by joining its network with Zayo's network, NTI will become a stronger competitor in the California telecommunications marketplace.
The Applicants further represent that the transaction will be transparent to customers, because customers will continue to receive service from NTI under the same rates, terms, and conditions after the transaction is approved. However, according to the application, NTI will change its company name to a name selected by Zayo after the transfer of control is finalized.
3 In March 2008, NTI filed Advice Letter No. 4, which sought approval of a transaction in which Parent would contribute all of its membership in NTI to Parent's shareholders. This advice letter has been approved and became effective on April 24, 2008. Therefore, Zayo is acquiring the membership interests in NTI directly from Parent's shareholders, rather than from Parent.
