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Update: Bluesky American Samoa’s sale to Fiji-based telecom approved by FCC

Bluesky Communications logo
One more approval needed before sale is finalized
fili@samoanews.com

Pago Pago, AMERICAN SAMOA — The US Federal Communication Commission (FCC) has approved the acquisition of Bluesky assets in American Samoa by Fiji-based telecom Amalgamated Telecom Holdings Limited (ATH), which is now awaiting approval of the proposed transaction from the Committee of Foreign Investment in the United States (CFIUS).

The FCC’s action was made on Nov. 16 with the public notice issued Nov. 21, according to FCC public records. ATH issued a separate brief statement announcing the FCC approvals, which came after federal authorities, such as the US Department of Justice (USDOJ) and US Department of Homeland Security (USDHS), gave their endorsement a few days ago.

ATH had also submitted to the FCC, two separate letters both dated Nov. 12 — the Letter of Commitments (LOC) to the USDOJ to address national security, law enforcement, and public safety concerns — and the Letter of Assurance (LOA) to both USDOJ and USDHS giving assurance of ATH compliance with federal regulations.

Through the Grant of Authority public notice date Nov 21, the FCC said that AST Telecom, LLC d/b/a Bluesky (AST) and ATH — the petitioners — had filed a petition for a declaratory ruling pursuant to federal rules in which ATH's proposed 100% investment in AST is made through a newly formed, wholly-owned U.S. subsidiary of ATH.

Additionally, AST and ATH filed the Petition in connection with applications for consent to transfer control of licenses and authorizations held by AST and affiliated entities from Spain-based Amper, S.A.

Following consummation of the proposed transaction, ATH's newly formed, wholly-owned U.S. subsidiary, Amalgamated Bluesky Telecom Holdings Incorporated (ABT Holdings), will own all of AST's member interests.

A separate FCC grant of authority public notice, also dated Nov. 21, gives approval of the transfer of the American Samoa Hawaii Cable (ASH-Cable) LLC, which is 33% owned by ASG and the Samoa American Samoa Cable (SAS Cable) LLC, from Amper to ATH.

In a Nov. 20 statement, ATH announced that the FCC has granted ATH and Amper’s joint application on Nov. 17 for transfer and control of AST as well as ASH-Cable and SAS Cable from Amper to ATH. ATH also explained briefly the telecom services included under the FCC approval, which are the same ones that were listed under the FCC public notice.

“With these approvals from FCC, ATH is now expecting the remaining approvals from the... CFIUS to come through shortly, to enable it to conclude the Bluesky transaction with Amper S.A.,” said ATH, which first announced in 2016 the acquisition of Buesky assets in American Samoa.

CFIUS — chaired by the US Secretary of Treasury — is established by US law and its membership is made up of several federal agencies including the USDOJ and USDHS. CFIUS is authorized to review transactions that could result in control of a U.S. business by a foreign person — “covered transactions” — in order to determine the effect of such transactions on the national security of the United States, according to the US Treasury website.

Samoa News reached out to Bluesky Communications CEO Toleafoa Douglas Creevey for comment on being granted FCC approval of the transfer and control of AST as well as ASH-Cable and SAS Cable from Amper to ATH. While acknowledging “a public notice was issued by FCC on November 16th granting the Domestic Section 214 Application for Transfer of Control,” Creevey, via email, said that “we have no further information at this time as a number of follow-on processes will be progressing between the parties."

Specific documents and details of the FCC approval of this ATH and Bluesky transfer are available at <www.fcc.gov>.=