Alliance Group Services Appeals WCB Order Upholding USAC’s Application of its Asset Transfer Policy


On May 27, 2010, Alliance Group Services, Inc. (“Alliance”) filed an application for review of a Federal Communications Commission‘s (“FCC”) Wireline Competition Bureau (“WCB”) order upholding a June 2001 Universal Service Administrative Company (“USAC”) decision applying its asset transfer policy to a transaction involving Alliance and U.S. Republic Communications (“U.S. Republic”).

Alliance asserts that USAC erred in applying its own policy regarding transfer of assets when it billed Alliance based on U.S. Republic’s reported revenue.  According to Alliance, USAC‘s asset transfer policy assigns reporting obligations differently depending upon whether the selling entity continues to operate after the sale of some or all of its assets.  Alliance maintains that, in situations where the selling entity continues to conduct business after the asset transfer, USAC‘s policy is that the seller reports revenues it had received from the customer base prior to the asset transfer, and the purchaser reports only the revenues it received from other customers prior to the purchase.  Thus, Alliance argues that USAC erred by holding Alliance responsible for U.S. Republic‘s 1999 USAC contributions even though U.S. Republic continued in existence after its transfer of assets to Alliance.

Clients who wish to review Alliance‘s Application for Review in greater detail can do so at the following link:

Alliance Application for Review

If you have any questions or concerns regarding Alliance‘s Application for Review, please contact the attorney assigned to your account.  Alternatively, you may reply to this message via e-mail and someone will promptly respond to your inquiry.

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