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Contract analysis / fcc-form-603-cover-letter-narrative.docx
fcc-form-603-cover-letter-narrative.docx
High · 1
Medium · 14
Standard · 3
2. Supporting Narrative Statement (attached hereto);
2. Supporting Narrative Statement (attached hereto);
3. Exhibit A — Corporate Organization Chart;
3. Exhibit A — Corporate Organization Chart;
4. Exhibit B — List of Licenses to Be Assigned;
4. Exhibit B — List of Licenses to Be Assigned;
5. Exhibit C — Asset Purchase Agreement (Redacted Execution Version), dated September 22,
5. Exhibit C — Asset Purchase Agreement (Redacted Execution Version), dated September 22, 2022;
6. Exhibit D — Certificates of Formation / Incorporation for NWA and Northgate US Holding
6. Exhibit D — Certificates of Formation / Incorporation for NWA and Northgate US Holdings LLC; and
7. Exhibit E — Consent Letters from Ridgeline Members (Pinnacle Growth Capital Fund II LP
Medium
⚑ Assignment / subcontracting
7. Exhibit E — Consent Letters from Ridgeline Members (Pinnacle Growth Capital Fund II LP and Crestwood Family Office LLC). The concurrently filed Section 310(b)(4) Petition for Declaratory Ruling is filed separately under its own cover but is cross-referenced throughout this application and supporting narrative. We respectfully request that the Commission maintain the connection between these filings throughout the
1. Assignor — Ridgeline Wireless Holdings LLC
Medium
⚑ Assignment / subcontracting
1. Assignor — Ridgeline Wireless Holdings LLC Ridgeline Wireless Holdings LLC ("Ridgeline") is a limited liability company organized under the laws of the State of Nevada, bearing NV SOS Entity No. E0428716302. Ridgeline maintains its principal office at 450 South Virginia Street, Suite 800, Reno, Nevada 89501. Ridgeline was founded in 2014 by Garrett Nolan and operates as a regional wireless telecommunications provi
2. Assignee — Northgate Wireless Americas Inc.
2. Assignee — Northgate Wireless Americas Inc. Northgate Wireless Americas Inc. ("NWA") is a corporation organized under the laws of the State of Delaware, bearing Delaware File No. 7284619. NWA was incorporated on August 22, 2022, for the specific purpose of acquiring and holding FCC wireless radio service licenses in connection with NTP's entry into direct U.S. spectrum ownership. NWA maintains its principal office
3. Ownership Chain Diagram
3. Ownership Chain Diagram The complete ownership chain from the licensee to the ultimate parent entity is depicted in the Corporate Organization Chart attached as Exhibit A and summarized below: Northgate Telecommunications PLC (Public limited company, England and Wales; Companies House No. 08473291; LSE: NGTL) | | 100% ownership ↓ Northgate US Holdings LLC (Limited liability company, Delaware; formed August 30, 202
1. License Details
Medium
⚑ Assignment / subcontracting
1. License Details The proposed assignment involves fourteen (14) FCC Wireless Radio Service licenses in the Meridian Technologies-3 band (Band 66), authorized under Part 27 of the Commission's Rules, 47 C.F.R. Part 27. The licenses bear call signs WQAB201 through WQAB214, inclusive. The spectrum at issue consists of 39 MHz of paired spectrum (39 MHz uplink / 39 MHz downlink), for a total of 78 MHz of paired bandwidt
2. Buildout Status
Medium
⚑ Assignment / subcontracting
2. Buildout Status Ridgeline has met interim construction benchmarks on eleven (11) of the fourteen (14) licenses. Specifically, the licenses bearing call signs WQAB201 through WQAB211 have satisfied the applicable interim construction requirements under the Commission's rules. Three licenses covering southern Oregon Economic Areas — call signs WQAB212 (EA-162, Klamath Falls), WQAB213 (EA-163, Lakeview), and WQAB214
3. Spectrum Valuation
Standard
⚑ Commercial term
3. Spectrum Valuation In connection with the negotiation of the APA, the parties commissioned an independent spectrum valuation from Vantage Spectrum Consultants Inc. ("Vantage Spectrum"), a nationally recognized spectrum valuation and consulting firm with offices at 1700 Pennsylvania Avenue NW, Suite 520, Washington, DC 20006. The valuation engagement was led by Dr. Raymond Kessler, Principal Consultant at Vantage S
1. Asset Purchase Agreement
Medium
⚑ Assignment / subcontracting
1. Asset Purchase Agreement The proposed assignment arises from an Asset Purchase Agreement executed on September 22, 2022, between Ridgeline, as Seller and Assignor, and NWA, as Buyer and Assignee. A redacted copy of the executed APA is attached hereto as Exhibit C. The key terms of the APA are summarized below: Purchase Price. The purchase price for the fourteen licenses is $126,500,000, as set forth in Section 3.1
2. Transaction Timeline
2. Transaction Timeline The following timeline summarizes the key milestones in the negotiation and execution of the proposed transaction: The Letter of Intent executed on June 15, 2022, between NTP and Ridgeline set forth the principal terms upon which the parties would negotiate a definitive agreement for the acquisition of Ridgeline's spectrum licenses. Following the execution of the Letter of Intent, the parties
3. Representations and Warranties Insurance
Standard
⚑ Commercial term
3. Representations and Warranties Insurance In connection with the proposed transaction, the parties have obtained an indicative representations and warranties insurance policy from Apex Continental Insurance Ltd. ("Apex Continental"), a Bermuda-domiciled insurance company with a U.S. branch office located at 140 Broadway, Suite 3500, New York, New York 10005. The indicative policy was underwritten by Fiona Ashworth
1. Applicability. Section 310(b)(4) of the Communications Act of 1934, as amended, 47 U.S
1. Applicability. Section 310(b)(4) of the Communications Act of 1934, as amended, 47 U.S.C. § 310(b)(4), provides that no common carrier radio station license shall be held by a corporation of which more than twenty-five percent (25%) of the capital stock is owned of record or voted by aliens, their representatives, or by a foreign government or representative thereof, or by any corporation organized under the laws
2. Significant Foreign Shareholders of NTP
2. Significant Foreign Shareholders of NTP NTP is publicly traded on the London Stock Exchange (LSE: NGTL). The following table identifies all shareholders holding five percent (5%) or more of NTP's outstanding shares based on the most recent public filings and shareholder register: Each of the identified significant shareholders is organized or established in a country that is a member of the World Trade Organizatio
3. WTO-Member-Country Presumption
3. WTO-Member-Country Presumption The Commission has established a rebuttable presumption that indirect foreign ownership of common carrier licensees above the twenty-five percent (25%) benchmark in Section 310(b)(4) is consistent with the public interest where the foreign ownership is held by entities from WTO-member countries. See Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, IB
4. National Security Review
4. National Security Review The Applicants are aware that the proposed transaction may be subject to review by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (the "Committee") pursuant to Executive Order 13913 of April 4, 2020. The Committee, which is chaired by the Attorney General and includes the Secretary of Homeland Security and the Secretary of
Section 1.2111 of the Commission's Rules, 47 C.F.R. § 1.2111, governs anti-trafficking rul
Medium
⚑ Assignment / subcontracting
Section 1.2111 of the Commission's Rules, 47 C.F.R. § 1.2111, governs anti-trafficking rules and unjust enrichment payment obligations applicable to licenses originally acquired at auction. These rules are designed to prevent licensees from acquiring spectrum at auction using small business or other designated entity bidding credits and then transferring the licenses shortly thereafter to non-designated entities at a
1. Enhanced Service to Covered Markets
Medium
⚑ Assignment / subcontracting
1. Enhanced Service to Covered Markets The proposed assignment will place the Meridian Technologies-3 (Band 66) spectrum in the hands of NWA, an entity backed by NTP's substantial financial resources. NTP's market capitalization of approximately £4.8 billion and projected FY2022 revenue of approximately £2.57 billion provide a strong financial foundation for the capital investment required to deploy and expand broadb
2. Acceleration of Buildout
Medium
⚑ Assignment / subcontracting
2. Acceleration of Buildout NWA commits to meeting all interim and final construction benchmarks for all fourteen licenses, including the three southern Oregon licenses (WQAB212, WQAB213, and WQAB214) that have not yet met their interim benchmarks. The interim benchmarks for these three licenses are due March 14, 2025, and the final construction deadlines fall on March 14, 2028. The fact that Ridgeline has not yet me
3. Competitive Benefits
Standard
⚑ Commercial term
3. Competitive Benefits The proposed transaction will introduce a new, well-capitalized competitor with international experience in telecommunications and SaaS into the U.S. wireless market. NTP's existing U.S. MVNO operations, conducted through third-party carrier arrangements, demonstrate NTP's commitment to the U.S. market and its ability to serve U.S. consumers. Direct spectrum ownership will enable NWA to move b
4. No Competitive Harms
Medium
⚑ Assignment / subcontracting
4. No Competitive Harms NWA does not currently hold any FCC spectrum licenses in any band or any geographic market. Accordingly, the proposed assignment raises no spectrum aggregation concerns under the Commission's policies regarding mobile spectrum holdings. See id. There is no overlap between NWA's current operations and Ridgeline's service area that would give rise to competitive concerns, and the proposed assign
5. Continuity of Service
Medium
⚑ Assignment / subcontracting
5. Continuity of Service As noted throughout this narrative, the proposed transaction involves the transfer of bare spectrum licenses only. Ridgeline will retain its subscriber base of approximately 142,000 accounts, its network infrastructure, its customer contracts, and all other assets and operations associated with its wireless telecommunications business. Ridgeline will manage the transition to alternative spect
1. Counsel for Assignee (Northgate Wireless Americas Inc.)
1. Counsel for Assignee (Northgate Wireless Americas Inc.) Broadfield Whitaker LLP Annette Galvez, Partner Daniel Fong, Senior Associate 1401 H Street NW, Suite 750 Washington, DC 20005 Telephone: (202) 457-8312 (A. Galvez) / (202) 457-8347 (D. Fong) Facsimile: (202) 457-8301 Email: agalvez@broadfieldwhitaker.com / dfong@broadfieldwhitaker.com Calderwood & Harkness LLP Harold Wren, Of Counsel (Communications & Regula
2. Counsel for Assignor (Ridgeline Wireless Holdings LLC)
2. Counsel for Assignor (Ridgeline Wireless Holdings LLC) Hargrove, Sato & Caldwell LLP Kevin Sato, Lead Partner (Regulatory/Telecom) Mariana Quelibo, Associate 100 West Liberty Street, Suite 1200 Reno, NV 89501 Telephone: (775) 348-2700 Email: ksato@hsclaw.com / mestevez@hsclaw.com
3. Applicant Contact
3. Applicant Contact Northgate Wireless Americas Inc. Claire Matsuda, VP, U.S. Operations 2200 Wilson Boulevard, Suite 1450 Arlington, VA 22201 Telephone: (703) 812-4600 Email: cmatsuda@northgatewireless.com Northgate Telecommunications PLC Thomas Brennan, SVP, Regulatory Affairs 14 Cavendish Square London W1G 0BX, United Kingdom Telephone: +44 20 7946 0123 Email: tbrennan@northgatetelecom.co.uk
I. Request for Expedited Processing
Medium
⚑ Assignment / subcontracting
I. Request for Expedited Processing The Applicants respectfully request that the Commission process this FCC Form 603 application, together with the concurrently filed Section 310(b)(4) Petition for Declaratory Ruling, on an expedited basis. As described in Section D above, the Asset Purchase Agreement between Ridgeline and NWA contains a Long-Stop Date of March 15, 2023. If FCC consent to the assignment of the fourt
1. Grant consent to the assignment of the fourteen (14) Meridian Technologies-3 (Band 66)
Medium
⚑ Assignment / subcontracting
1. Grant consent to the assignment of the fourteen (14) Meridian Technologies-3 (Band 66) wireless radio service licenses (call signs WQAB201, WQAB202, WQAB203, WQAB204, WQAB205, WQAB206, WQAB207, WQAB208, WQAB209, WQAB210, WQAB211, WQAB212, WQAB213, and WQAB214) from Ridgeline Wireless Holdings LLC to Northgate Wireless Americas Inc. pursuant to Section 310(d) of the Communications Act of 1934, as amended, 47 U.S.C.
2. Grant the concurrently filed Section 310(b)(4) Petition for Declaratory Ruling, approv
High
⚑ Penalty / liquidated damages
2. Grant the concurrently filed Section 310(b)(4) Petition for Declaratory Ruling, approving up to one hundred percent (100%) indirect foreign ownership of Northgate Wireless Americas Inc. by Northgate Telecommunications PLC, a public limited company organized under the laws of England and Wales, and its shareholders. The proposed assignment serves the public interest, convenience, and necessity. The transaction will
1. Certificate of Incorporation for Northgate Wireless Americas Inc., filed with the Dela
1. Certificate of Incorporation for Northgate Wireless Americas Inc., filed with the Delaware Secretary of State on August 22, 2022, bearing File No. 7284619.
2. Certificate of Formation for Northgate US Holdings LLC, filed with the Delaware Secret
2. Certificate of Formation for Northgate US Holdings LLC, filed with the Delaware Secretary of State on August 30, 2022. [Certified copies of both documents are provided as separate attachments.] Exhibit E — Consent Letters from Ridgeline Members Exhibit E consists of the following consent letters from minority members of Ridgeline Wireless Holdings LLC:
1. Side Letter from Pinnacle Growth Capital Fund II LP, executed by Robert Almeda, Managi
Medium
⚑ Assignment / subcontracting
1. Side Letter from Pinnacle Growth Capital Fund II LP, executed by Robert Almeda, Managing Director of Pinnacle Growth Capital Management LLC, in its capacity as General Partner of Pinnacle Growth Capital Fund II LP, consenting to the proposed transaction and waiving any consent rights under the Ridgeline LLC Agreement with respect to the assignment of the fourteen licenses to NWA. The side letter was executed in Se
2. Side Letter from Crestwood Family Office LLC, executed by Eleanor Crestwood, Principal
Medium
⚑ Confidentiality undertaking
2. Side Letter from Crestwood Family Office LLC, executed by Eleanor Crestwood, Principal of Crestwood Family Office LLC, consenting to the proposed transaction and confirming that Crestwood Family Office LLC does not object to the assignment of the fourteen licenses to NWA. The side letter was executed in September 2022. [Copies of both consent letters are provided as separate attachments.] CONFIDENTIAL — This docum