PUBLIC UTILITY COMMISSION
Harrisburg, PA 17105-3265
Public Meeting heldSeptember 30, 2004
Commissioners Present:
Terrance J. Fitzpatrick, Chairman
Robert K. Bloom, Vice Chairman
Glen R. Thomas
Kim Pizzingrilli
Wendell F. Holland
Joint application ofGlobal Tel*Link Corp. and Gores Portfolio Holdings, Inc. for approval of the transfer of all the common stock of Global Tel*Link Corp. from Schlumberger Technologies, Inc. to Gores Portfolio Holdings, Inc. / Docket No.:
A-310152 F0002
ORDER
BY THE COMMISSION:
On August 9, 2004, Global Tel*Link Corp. (Global) and Gores Portfolio Holdings, Inc. (Gores) filed the above-captioned joint application pursuant to Chapter 11 of the Public Utility Code, 66Pa.C.S.§§1101, et seq., seeking approval of the transfer of 100% of Global’s stock.
Global specializes in providing prepaid calling service and telephone service to populations of prison inmates. The utility was issued its original certificate of public convenience as an IXC reseller in an order dated August 16, 1994. Gores is not itself a jurisdictional entity, but its parent, Gores Technology Group, holds a controlling interest in Voicecom Telecommunications, LLC, a company that provides telephone service in over 200 major metropolitan areas nationwide. The Gores companies do not currently hold investments in other inmate-only utilities.
The applicants propose the transfer of control of Global to Gores which is part of a private investor groupthat concentrates on investments in technology and the telecommunications industry. It has over $300 million of committed but unused capital available for investment in and expansion of companies in those areas. Therefore, aver the applicants, Global will have access to a ready source of capital.
The applicants have cited the managerial experience of Gores and its parent, Gores Technology Group,having included with the application biographical data for many of Gores’ senior managers together with a discussion of Gores’ current and former investments. The applicants have pointed to Gores’ success in bringing software and telecommunicationsacquisitions from a state of unprofitability to one of being profitable rather quickly. Upon consideration of these factors, we conclude that the record provides substantial evidence of affirmative public benefit sufficient to warrant approval of the proposed transactions under City of York v. Pennsylvania Public Utility Commission, 449 Pa. 136, 295 A.2d 825 (1972).
Having thus reviewed the application concerning the transfer of control of Global to Gores, we find that the transfer is necessary or proper for the service, accommodation, convenience, or safety of the public, and that the application should be approved;THEREFORE,
IT IS ORDERED:
1. That the joint application concerning the transfer of all the stock of Global Tel*Link Corp. is hereby approved.
2. That a certificate of public convenience be issued evidencing our approval, and that the case be marked closed.
BY THE COMMISSION
James J. McNulty
Secretary
(SEAL)
ORDER ADOPTED: September 30, 2004
ORDER ENTERED:October 1, 2004
1