20010917Notification of Acquisition.pdf

Because Everybody Needs A Phone-EC i !VED
September 12,2001
Ms.Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
P.O.Box 83720
Boise,Idaho 83720-0074
Re:Notification of Acquisition
Dear Ms.Jewell:
Enclosed for filing please find the original and three (3)copies of the notification of
acquisition of Choctaw Communications,Inc.,by 1-800-RECONEX,Inc.
If you have any questions regarding the foregoing please do not hesitate to contact me
directly at 503.982.5573.
William E.Braun
Vice-President &General Counsel
enclosures
2500 IndustrialAvenue Hubbard,Oregon 97032
503-982-8000 =Fax:[phone] s www.reconex.com
I-d00-BECONE.L
Because Everybody Needs A Phone O
September 12,2001
Ms.Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
P.O.Box 83720
Boise,Idaho 83720-0074
Re:Notification of Acquisition.
Dear Ms.Jewell:
Pursuant to Idaho Statues,Title 62,Chapter 7,§62-704,please consider the followingto
be notification of the proposed acquisition by 1-800-RECONEX,Inc.,(Reconex),of
Choctaw Communications,Inc.,d/b/a Smoke Signal Communications,(Choctaw).
I.Description of Transaction.
Reconex is authorized to provide local exchange carrier services in Idaho pursuant to
Order 11358,granted on January 6,1998.Choctaw is authorized to provide local
exchange carrier services in Idaho pursuant to Order 28159,granted on October 1,1999.
On August 31,2001,Reconex and VarTec Telecom,(VarTec)entered into a Stock
Purchase Agreement whereby Reconex would acquire all of the issued and outstanding
common stock of Choctaw.VarTec is the parent corporation of Choctaw.The
Agreement is effective upon receipt of all required regulatory approvals.This Agreement
brings togethertwo of the original providers of prepaid local dial tone services.It is the
intent of Reconex that each company will continue to operate as it has to date,subject to
the terms of each companies existing tariff,with Choctaw simplybeing a whollyowned
subsidiary of Reconex.
This acquisition will produce significant economic,marketing,and administrative
efficiencies as well as increase the financial base and strength of both Reconex and
Choctaw.These efficiencies will allow each company to compete on a higher level with
respect to the provision of local dial tone services and in turn,increase competition in the
state of Idaho.The ability to share expertise will result in improved service to the
consumers of the state of Idaho,as well as the introduction of new services and the ability
to more rapidly deploy new technologies.
This transaction will be transparent to the Reconex and Choctaw customers and in
addition will benefit those customers as described above.
2500 Industrial Avenue =Hubbard,Oregon 97032
503-982-8000 Fax:[phone] =www.reconex.com
Jean Jewell Letter
September 12,2001
Page 2
II.Contact Person.
The name and number of the contact person most familiar with the transaction is as
follows:
Mr.William E.Braun
Vice-President &General Counsel
1-800-RECONEX,Inc.
2500 Industrial Avenue
Hubbard,Oregon 97032
503.982.5573 (phone)
503.982.6077(fax)
Bill.Braun Reconex.com
III.Tariff Changes.
The companies do not anticipate any significant tariff changes in the near future.The
companies will continue to operate under their existing tariffs with any changes being
brought to the attention of the Commission pursuant to its normal procedure.
IV.Official Notices.
Post approval,please address all official notices regarding Choctaw to the following:
Ms.Marla J.Hanley
Regulatory Director
Choctaw Communications,Inc.
8700 S.Gessner
Houston,Texas 77074
713.779.0692ext.3910 (phone)
713.774.6953 (fax)
Hanleym smokesignal-clec.com
Both Reconex and Choctaw look forward to continuing to serve the consumers of the
state of Idaho in the efficient and professional manner to which those consumers have
grown accustomed.In addition both companies are looking forward to the new
opportunities and possibilities which will be the product of this acquisition.
If you have any questions regarding the foregoing please do not hesitate to contact me
directlyat 503.982.5573.
Very truly yours,
William E.Braun
Vice-President &General Counsel