Biennial Review of International Common Carrier Regulations
Federal RegisterApr 19, 1999
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1, 43 and 63
[IB Docket No. 98-118, FCC 99-51]
Biennial Review of International Common Carrier Regulations
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: On March 18, 1999, the Federal Communications Commission
adopted a Report and Order (Order) to further streamline the rules
governing international common carriers. The new rules will benefit
U.S. consumers because they will eliminate unnecessary regulatory delay
and will facilitate entrance into the international telecommunications
market. The Commission believes that the new rules will lessen the
regulatory burdens on applicants, authorized carriers, and the
[[Page 19058]]
Commission by allowing carriers to operate more efficiently.
The Commission initiated this proceeding pursuant to section 11 of
the Telecommunications Act of 1996, which directs the Commission to
undertake a review every even-numbered year of all regulations that
apply to providers of telecommunications services to determine whether
any such regulation is no longer necessary.
DATES: Effective May 19, 1999.
FOR FURTHER INFORMATION CONTACT: Douglas Klein or Peggy Reitzel, Policy
and Facilities Branch, Telecommunications Division, International
Bureau, (202) 418-1470.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 99-51, adopted on March 18, 1999, and released on March
23, 1999. The full text of this Order is available for inspection and
copying during normal business hours in the FCC Reference Center (Room
CY-A257) of the Federal Communications Commission, 445 12th Street, SW,
Washington, DC 20554.1919 M Street, N.W., Washington, D.C. 20554. The
complete text of this Order also may be purchased from the Commission's
copy contractor, International Transcription Service, Inc., 1231 20th
Street, N.W., Washington, D.C. 20036, (202) 857-3800.
This Order contains information collections subject to the
Paperwork Reduction Act of 1995 (PRA). It has been submitted to the
Office of Management and Budget (OMB) for review under the PRA. OMB,
the general public, and other Federal agencies are invited to comment
on the modified information collections contained in this proceeding.
Summary of Report and Order
1. In July 1998, the Commission adopted a Notice of Proposed
Rulemaking (63 FR 41538, August 4, 1998) to consider whether to further
streamline the international Section 214 authorization process and
tariff requirements. This proceeding was initiated pursuant to the
Telecommunications Act of l996, which directs the Commission to
undertake, on every even-numbered year, a review of all regulations
that apply to operations or activities of any provider of
telecommunications service and to repeal or modify any regulation it
determines to be no longer necessary in the public interest.
Accordingly, the Commission has begun a comprehensive 1998 biennial
review of telecommunications and other regulations to determine whether
any are overly burdensome or no longer serve the public interest. The
Commission sought comment on the proposals contained in the Notice.
2. In this proceeding, the Commission adopts a number of the
proposals contained in the Notice and implements procedures that will
grant regulatory relief to carriers while increasing the efficiencies
of the Commission. In the Notice, the Commission proposed a blanket
Section 214 authorization for international service to unaffiliated
points. The Commission declines to adopt that proposal based on the
comments filed in this proceeding by the Federal Bureau of
Investigation (FBI) and the Department of Defense (DoD). Both the FBI
and DoD argued that it is important to review some applications and
transactions due to national security, law enforcement, and other
considerations. The Commission agrees with the FBI and DoD that it
remains important to continue to review applications prior to
authorization. Thus, the Commission adopts a streamlined authorization
procedure that is narrowly tailored to allow it to review applications
in advance without causing needless delay or uncertainty. Under the new
procedure, once an application is deemed complete and eligible for
streamlined processing, the Commission will issue a public notice
noting that the application has been accepted for filing and will be
subject to streamlined processing. The public notice will state that
the application will be deemed granted 14 days after the date of the
public notice unless the applicant is notified to the contrary. The
International Bureau will issue a weekly public notice of carriers
newly authorized pursuant to this procedure. The new rules will
eliminate the current requirement that streamlined applications be
removed from streamlining in the event that an opposition is filed.
3. The new procedures apply to all international Section 214
applications that currently qualify for streamlining pursuant to
Sec. 63.12 of the Commission's rules, as well as to applicants seeking
to serve affiliated routes where the affiliate has no facilities, or
only mobile wireless facilities, at the foreign end of the route.
Included within this class of streamlined applications are some
assignments and transfers of control of international Section 214
authorizations. It is highly likely that any application that raises
competitive issues would also involve assignments or transfers of
control of submarine cable landing licenses or Title III radio
licenses. Any application that includes an assignment or transfer of a
cable landing license or a Title III license will continue to be
subject to notice-and-comment procedures.
4. Although the Commission concludes that these categories of
applications generally should be subject to our revised streamlined
procedure, the Commission delegates to the International Bureau the
authority to identify those particular applications that do warrant
public comment and additional Commission scrutiny under current stated
Commission policies. For example, additional scrutiny may be required
where an application may present a significant potential adverse impact
on competition, or where an assignment or transfer of control could
eliminate a significant current or future competitor. Absent such
concerns, the Commission finds that grant of Section 214 authority
under these circumstances will serve the public interest, convenience,
and necessity.
5. The Commission will accept petitions seeking a declaratory
ruling that a foreign carrier lacks sufficient market power to affect
competition adversely in the U.S. market, and such ruling may be cited
in an applicant's Section 214 application for the purpose of
establishing its eligibility for streamlined authorization on the
affiliated route.
6. Bell Operating Companies (BOCs) are not be permitted to take
advantage of the streamlined procedure to obtain authorization to
provide international services from any of its in-region states until
the Commission approves its section 271 application to provide
interLATA services from that state. The new streamlined authorization
procedure applies equally to commercial mobile radio service (CMRS)
licensees as to other classes of carriers.
7. The Commission amends its rules to define pro forma and to allow
carriers to undertake pro forma assignments and transfers of control of
international Section 214 authorizations without Commission approval.
The Commission concludes that given the mechanisms in place, many pro
forma transfers and assignments meet the forbearance standard in
Sec. 10 of the Communications Act. So that the Commission can maintain
accurate records of the entities holding Section 214 authorization, it
requires that authorized carriers that undertake a pro forma assignment
notify the Commission by letter within 30 days after consummation of
the transaction. The new rule applies to all authorized international
carriers.
8. The Commission adopts its proposal to allow carriers to provide
their authorized services through their
[[Page 19059]]
wholly owned subsidiaries. Any subsidiary operating pursuant to its
parent's authorization must notify the Commission by letter within 30
days after beginning to provide service. If, at any time, such a
subsidiary is no longer 100-percent owned by the authorized carrier, it
may not operate without first obtaining its own authorization pursuant
to Sec. 63.18.
9. Commonly owned companies (``sister'' or ``parent'' companies)
may use the streamlined authorization procedure of Sec. 63.12 to obtain
authority to provide the same services, subject to the same conditions,
that have already been authorized for a company with exactly the same
ownership.
10. The Commission amends its rules and the exclusion list to allow
any carrier with a global facilities-based authorization to use any
non-U.S.-licensed submarine cable system without prior Commission
approval of each cable system. The exclusion list now provides that
carriers with global Section 214 authorizations to provide facilities-
based service will be authorized to serve any unaffiliated market
except Cuba and are permitted to use any facilities except non-U.S.-
licensed satellite systems that are not specifically identified. The
Commission's rules require it to publish the exclusion list in the
Federal Register, and it is attached as Attachment A. The rule change
does not affect the rules for use of non-U.S.-licensed satellite
systems, which continue to be governed by the policies adopted in the
Commission's DISCO II Order (62 FR 64167, December 4, 1997).
11. The Notice sought comment on whether to eliminate the need to
apply for separate Section 214 authority to build a new common carrier
cable system by including the authorization to construct new lines in
the global facilities-based Section 214 authorization. The Commission
declines to adopt this proposal because it would create a fee
disparity. Until such time as Congress adjusts the fee schedule so that
there is only one application fee for cable landing licenses and the
separate application fee for overseas cable construction is eliminated,
the Commission encourages applicants for common carrier cable landing
licenses to file a single application seeking authority under both the
Cable Landing License Act and Section 214 of the Communications Act.
Information required in each application need not be repeated, and the
applicant should submit both of the applicable fees with its
consolidated application.
12. The Order amends the rules to reflect that the construction of
new submarine cable systems will not have a significant effect on the
human environment and therefore should be categorically excluded from
our environmental processing requirements. The rules will have a Note
to reflect this change, and applicants for a cable landing license may
cite this note for the proposition that action on its application is
categorically excluded from environmental processing.
13. The Order creates a new rule section 63.16, on the provision of
switched basic telecommunications services using international private
lines interconnected to the public switched network (sometimes called
``international simple resale'' or ``ISR''). The new rule will simplify
the procedure for adding to the list of foreign destinations to which
any authorized carrier may carry switched services over its authorized
facilities-based or resold private lines. Currently, the Commission
adds a country to this list only in response to a showing made in a
Section 214 application in which an applicant seeks to provide ISR to a
particular foreign country. The new rule will allow carriers to request
these determinations by petition for declaratory ruling rather than by
a Section 214 application. Applicants would thus be relieved of the
burden of providing the detailed carrier-specific information that is
required when a carrier receives authorization to provide service as
well as to shorten and simplify the rules. The International Bureau
staff will have the discretion to set an appropriate period for public
comment and to issue a ruling by public notice on any petition for a
declaratory ruling to allow ISR to a particular destination.
14. The Commission declines to raise the level of investment by
foreign carriers that must be reported to the Commission. The
Commission retains the requirement that applicants list every entity
that directly or indirectly owns at least 10 percent of the applicant,
rather than increase the threshold to 25 percent.
15. The Order adopts the majority of proposals to reorganize and
simplify the rules. In order to eliminate confusion the Order clarifies
the definition of affiliation and codifies it in Sec. 63.09(e), and
removes the reference to affiliation in Sec. 63.18. The term
affiliation will be used only in its broader sense, that is, when there
is an interest greater than 25 percent, or a controlling interest at
any level, by the U.S. carrier in a foreign carrier or by a foreign
carrier in the U.S. carrier. This is the standard used to determine
whether there exists an affiliation for purposes of classifying a
carrier as dominant under Sec. 63.10. The entry standard is no longer
tied to a definition of affiliation. The Order adds a provision to
Sec. 63.10(a)(4) to require a carrier that is regulated as non-dominant
on an affiliated route under this provision to notify the Commission if
at any time it begins to provide service by reselling an affiliated
facilities-based carrier's services on the affiliated route. The
carrier will be deemed a dominant carrier on the route unless and until
the Commission finds that the carrier qualifies for non-dominant
regulation under Sec. 63.10.
16. The Order adopts the proposal to codify a requirement that
carriers notify the Commission by letter within 30 days of a name
change, an assignment, or a decision not to consummate an authorized
assignment. This requirement ensures that the Commission's records
accurately reflect the party or parties that control the carrier's
operations, particularly for purposes of enforcing Commission rules and
policies.
17. The Commission defers action on the proposal to include in the
rules a provision codifying the benchmark settlement rate condition
that was adopted in the Benchmarks Order (62 FR 45758, August 29,
1997). The Order transfers the record on this issue to the Benchmarks
reconsideration proceeding that will be addressed by the Commission in
the future.
18. The Order directs the International Bureau to release the
updated text of Secs. 63.09 through 63.24 by June 1, 1999, and to make
that document available on the Bureau's Web site at http://www.fcc.gov/
ib.
19. In the proceeding, commenters raised a number of miscellaneous
issues which the Commission declines to adopt. WorldCom proposed that
any new rules with respect to pro forma assignments and transfers of
control and service by wholly-owned subsidiaries apply to Title III
earth station licenses and cable landing licenses. The Commission
declines to adopt WorldCom's proposal because Executive Order No.
10,530 requires the Commission to obtain the approval of the State
Department and advice from other Executive Branch agencies before
granting any cable landing license. With respect to earth station
licenses, the Commission may not have authority to forbear from
reviewing any assignments or transfers of control when they involve
non-common carrier licenses. Tyco requested the Commission to examine
its practice of imposing separate regulatory requirements on common
carrier and non-common carrier submarine cable systems. The
[[Page 19060]]
Commission states that it will consider initiating a proceeding to
address those issues in the near future.
20. SBC raised the issue of eliminating the requirement of tariffs
for international services. SBC and AT&T requested that the Commission
revise the procedures of requiring advance notification of affiliations
with foreign carriers. Cable & Wireless proposed that the Commission
change its policies permitting the provision of switched services over
private lines to recognize when foreign markets offer equivalent resale
opportunities in subsets of services. Deutsche Telekom argued that the
Commission should not impose dominant carrier safeguards on any carrier
whose affiliated foreign carrier's settlement rates are at or below the
Commission's benchmark settlement rates. Cable & Wireless also
requested that the 25 percent affiliation standard should not apply to
the benchmark settlement rate condition. In the Order, the Commission
concludes that these arguments and proposals are outside the scope of
this proceeding.
21. Cable & Wireless suggested that the Commission include in its
rules applicable to international Section 214 authorizations a
provision that specifically addresses frivolous filings. Under the new
procedures adopted in the Order, public comment on the great majority
of international Section 214 applications reduces the ability of
parties to file frivolous petitions to deny. The Commission concludes
that its new procedures, coupled with the Commission's existing rules,
are sufficient to address this concern.
Final Regulatory Flexibility Certification
22. The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, as
amended by the Contract with America Advancement Act of 1996, requires
that an agency prepare a regulatory flexibility analysis for notice-
and-comment rulemaking proceedings, unless the agency certifies that
``the rule will not, if promulgated, have a significant economic impact
on a substantial number of small entities.'' In the Notice, we
certified that the proposed rules would not have a significant economic
impact on a substantial number of small entities because they would not
impose any additional compliance burden on small entities dealing with
the Commission. No comments were received concerning this
certification. We now reaffirm this certification with respect to the
rules adopted in this order. We anticipate that the rule changes we
adopt here will reduce regulatory and procedural burdens on small
entities. The purposes of this proceeding are to eliminate some
regulatory requirements and to simplify and clarify other existing
rules. The modifications do not impose any additional compliance burden
on persons dealing with the Commission, including small entities. Any
prospective carrier will continue to submit an application for Section
214 authorization. In most cases, the authorization will be granted
expeditiously. We anticipate that the revisions we adopt here will make
it easier for small entities as well as others to provide international
telecommunications service without unnecessary delay. Accordingly, we
certify, pursuant to Sec. 605(b) of the RFA, that the rules adopted
herein will not have a significant economic impact on a substantial
number of small business entities, as defined by the RFA. The Office of
Public Affairs, Reference Operations Division, shall send a copy of
this Report and Order, including this certification, to the Chief
Counsel for Advocacy of the Small Business Administration. A copy of
this certification will also be published in the Federal Register.
Paperwork Reduction Act of 1995 Analysis
23. This Order contains information collections which have been
submitted to the Office of Management and Budget (OMB) for approval. As
part of our continuing effort to reduce paperwork burdens, the
Commission invites the general public and the Office of Management and
Budget (OMB) to comment on the information collections contained in
this Order, as required by the Paperwork Reduction Act of 1995, Public
Law 104-13. Public and agency comments are due [May 19, 1999.] A 60 day
comment period was established when the Notice was published in the
Federal Register [63 FR 41538, August 4, 1998]. As described above, the
Commission did not adopt the blanket Section 214 authorization as
proposed in the Notice. As a result, the information collections
contained in the Order negate the majority of collections proposed in
the Notice, and retain the collections currently approved by OMB.
Comments should address the following: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
burden estimates; (c) ways to enhance the quality, utility, and clarity
of the information collected; and (d) ways to minimize the burden of
the collection of information on the respondents, including the use of
automated collection techniques or other forms of information
technology.
OMB Approval Number: 3060-0686.
Title: Streamlining the International 214 Process and Tariff
Requirements.
Form No.: N/A.
Type of Review: Revision of existing collection.
Respondents: Business or other For-Profit.
Number of Respondents: 1650.
Estimated Time Per Response: 1 to 6,056 hours (20.46 hours
average).
Total Annual Burden: 73,885.
Estimated costs per respondent: $12,456,000 (Filing Fees and
Attorney Services).
Frequency of Response: Annually; Semi-Annually; Quarterly: and On
occasion reporting requirements.
Needs and Uses: The information collections are necessary largely
to determine the qualifications of applicants to provide common carrier
international telecommunications services, or to construct and operate
submarine cables, including applicants that are affiliated with foreign
carriers, and to determine whether and under what conditions the
authorizations are in the public interest, convenience, and necessity.
The information collections are necessary for the Commission to
maintain effective oversight of U.S. carriers that are affiliated with,
or involved in certain co-marketing or similar arrangements with,
foreign carriers that have sufficient market power to affect
competition adversely in the U.S. market. The information collected is
necessary for the Commission to ensure that rates, terms and conditions
for international service are just and reasonable, as required by the
Communications Act of 1934. In addition, the Commission must maintain
records that accurately reflect a party or parties that control a
carrier's operations, particularly for purposes of enforcing the
Commission's rules and policies.
Written comments by the public on the proposed information
collections are due on or before May 19, 1999. In addition to filing
comments with the Secretary, a copy of any comments on the information
collections contained herein should be submitted to Judy Boley, Federal
Communications Commission, Room 1-C804, 445 12th Street, S.W.,
Washington, DC 20554, or via the Internet to [email protected].
Ordering Clauses
24. Accordingly, it is ordered that, pursuant to Secs. 1, 4(i),
4(k), 10, 11, 201(b), 214, 303(r), 307, 309(a), and 310
[[Page 19061]]
of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i),
154(k), 160, 161, 201(b), 214, 303(r), 307, 309(a), 310, and the
Submarine Cable Landing License Act, 47 U.S.C. 34-39, this REPORT AND
ORDER is hereby ADOPTED and Parts 1, 43, 63, and 64 of the Commission's
rules, 47 CFR Parts 1, 43, 63, 64, ARE AMENDED as set forth in Rule
Changes.
25. It is further ordered that the rule changes and information
collections contained herein WILL BECOME EFFECTIVE May 19, 1999
following OMB approval, unless a notice is published in the Federal
Register stating otherwise.
26. It is further ordered that the record on codification of the
benchmarks condition for facilities-based carriers developed in this
proceeding be transferred to IB Docket 96-261 for future consideration.
27. It is further ordered that authority is delegated to the Chief,
International Bureau, and the Chief, Common Carrier Bureau, as
specified herein, to effect the decisions as set forth above.
28. It is further ordered that the Commission's Office of
Legislative and Intergovernmental Affairs is directed to submit a
legislative request to Congress as described in paragraph 63 of this
order.
29. It is further ordered that the Commission's Office of Public
Affairs, Reference Operations Division, shall send a copy of this
Report and Order, including the regulatory flexibility certification,
to the Chief Counsel for Advocacy of the Small Business Administration,
in accordance with paragraph 603(a) of the Regulatory Flexibility Act,
5 U.S.C. 601 et seq.
30. It is further ordered that the Commission's Office of Public
Affairs, Reference Operations Division, shall send a copy of this
Report and Order to the Council on Environmental Quality.
List of Subjects in 47 CFR Parts 1, 43, and 63
Communications common carriers, Reporting and recordkeeping
requirements.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 1, 43, 63, and 64 as
follows:
PART 1--PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j),
155, 225, and 303(r).
2. Section 1.767 is amended by revising paragraphs (a)(5), (a)(6),
(a)(7) and (e), adding new paragraphs (a)(8) and (a)(9) to read as
follows:
Sec. 1.767 Cable landing licenses.
(a) * * *
(5) A specific description of the cable landing stations on the
shore of the United States and in foreign countries where the cable
will land. The description shall include a map showing specific
coordinates or street addresses of each landing station as well as the
identity, citizenship, and specific ownership share of each owner of
each U.S. landing station. The applicant initially may file a general
geographic description of the landing points; however, grant of the
application will be conditioned on the Commission's final approval of a
more specific description of the landing points, including all
information required by this paragraph, to be filed by the applicant no
later than 90 days prior to construction. The Commission will give
public notice of the filing of this description, and grant of the
license will be considered final if the Commission does not notify the
applicant otherwise in writing no later than 60 days after receipt of
the specific description of the landing points, unless the Commission
designates a different time period;
(6) A statement as to whether the cable will be operated on a
common carrier or non-common carrier basis;
(7) A list of the proposed owners of the cable system, their voting
interests, and their ownership interests by segment in the cable;
(8) For each proposed owner of the cable system, a certification as
to whether the proposed owner is, or is affiliated with, a foreign
carrier (as defined in Sec. 63.09 of this chapter). Include the
information and certifications required in Sec. 63.18(h) through (k) of
this chapter; and
(9) Any other information that may be necessary to enable the
Commission to act on the application.
* * * * *
(e) The application fee for a non-common carrier cable landing
license is payment type code BJT. Applicants for common carrier cable
landing licenses shall pay the fees for both a common carrier cable
landing license (payment type code CXT) and overseas cable construction
(payment type code BIT). There is no application fee for modification
of a cable landing license, except that the fee for assignment or
transfer of control of a cable landing license is payment type code
CUT. See Sec. 1.1107(2) of this chapter.
3. Section 1.1306 is amended by adding the following sentence to
the end of Note 1:
Sec. 1.1306 Actions which are categorically excluded from
environmental processing.
* * * * *
Note 1: * * * The provisions of Sec. 1.1307(a) and (b) of this
part do not encompass the construction of new submarine cable
systems.
* * * * *
PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN
AFFILIATES
4. The authority citation for part 43 continues to read as follows:
Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub.
L. 104-104, secs. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.
5. Section 43.61 is amended by revising paragraph (c) to read as
follows:
Sec. 43.61 Reports of international telecommunications traffic.
* * * * *
(c) Each common carrier engaged in the resale of international
switched services that is affiliated with a foreign carrier that has
sufficient market power on the foreign end of an international route to
affect competition adversely in the U.S. market and that collects
settlement payments from U.S. carriers shall file a quarterly version
of the report required in paragraph (a) of this section for its
switched resale services on the dominant route within 90 days from the
end of each calendar quarter. For purposes of this paragraph,
affiliated and foreign carrier are defined in Sec. 63.09 of this
chapter.
PART 63--EXTENSION OF LINES AND DISCONTINUANCE, REDUCTION, OUTAGE
AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND GRANTS OF
RECOGNIZED PRIVATE OPERATING AGENCY STATUS
6. The authority citation for Part 63 is revised to read as
follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 160, 161, 201-205,
218, 403, 533 unless otherwise noted.
7. Section 63.09 is added to read as follows:
[[Page 19062]]
Sec. 63.09 Definitions applicable to international Section 214
authorizations.
The following definitions shall apply to Secs. 63.09-63.24 of this
part, unless the context indicates otherwise:
(a) Facilities-based carrier means a carrier that holds an
ownership, indefeasible-right-of-user, or leasehold interest in bare
capacity in the U.S. end of an international facility, regardless of
whether the underlying facility is a common carrier or non-common
carrier submarine cable or a satellite system.
(b) Control includes actual working control in whatever manner
exercised and is not limited to majority stock ownership. Control also
includes direct or indirect control, such as through intervening
subsidiaries.
(c) Special concession is defined as in Sec. 63.14(b) of this part.
(d) Foreign carrier is defined as any entity that is authorized
within a foreign country to engage in the provision of international
telecommunications services offered to the public in that country
within the meaning of the International Telecommunication Regulations,
see Final Acts of the World Administrative Telegraph and Telephone
Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities
authorized to engage in the provision of domestic telecommunications
services if such carriers have the ability to originate or terminate
telecommunications services to or from points outside their country.
(e) Two entities are affiliated with each other if one of them, or
an entity that controls one of them, directly or indirectly owns more
than 25 percent of the capital stock of, or controls, the other one.
Also, a U.S. carrier is affiliated with two or more foreign
carriers if the foreign carriers, or entities that control them,
together directly or indirectly own more than 25 percent of the capital
stock of, or control, the U.S. carrier and those foreign carriers are
parties to, or the beneficiaries of, a contractual relation (e.g., a
joint venture or market alliance) affecting the provision or marketing
of international basic telecommunications services in the United
States.
(f) Market power means sufficient market power to affect
competition adversely in the U.S. market.
Note 1: The assessment of ``capital stock'' ownership will be
made under the standards developed in Commission case law for
determining such ownership. See, e.g., Fox Television Stations,
Inc., 10 FCC Rcd 8452 (1995). ``Capital stock'' includes all forms
of equity ownership, including partnership interests.
Note 2: Ownership and other interests in U.S. and foreign
carriers will be attributed to their holders and deemed cognizable
pursuant to the following criteria: Attribution of ownership
interests in a carrier that are held indirectly by any party through
one or more intervening corporations will be determined by
successive multiplication of the ownership percentages for each link
in the vertical ownership chain and application of the relevant
attribution benchmark to the resulting product, except that wherever
the ownership percentage for any link in the chain exceeds 50
percent, it shall not be included for purposes of this
multiplication. For example, if A owns 30 percent of company X,
which owns 60 percent of company Y, which owns 26 percent of
``carrier,'' then X's interest in ``carrier'' would be 26 percent
(the same as Y's interest because X's interest in Y exceeds 50
percent), and A's interest in ``carrier'' would be 7.8 percent (0.30
x 0.26). Under the 25 percent attribution benchmark, X's interest
in ``carrier'' would be cognizable, while A's interest would not be
cognizable.
8. Section 63.10 is amended by removing the third sentence of
paragraph (a) introductory text and the last sentence of paragraph
(c)(5) and revising paragraph (a)(4) to read as follows:
Sec. 63.10 Regulatory classification of U.S. international carriers.
(a) * * *
* * * * *
(4) A carrier that is authorized under this part to provide to a
particular destination an international switched service, and that
provides such service solely through the resale of an unaffiliated U.S.
facilities-based carrier's international switched services (either
directly or indirectly through the resale of another U.S. resale
carrier's international switched services), shall presumptively be
classified as non-dominant for the provision of the authorized service.
A carrier regulated as non-dominant pursuant to this subparagraph shall
notify the Commission at any time that it begins to provide such
service through the resale of an affiliated U.S. facilities-based
carrier's international switched services. The carrier will be deemed a
dominant carrier on the route absent a Commission finding that the
carrier otherwise qualifies for non-dominant regulation pursuant to
this section.
* * * * *
9. Section 63.11, paragraph (b) is amended by removing the words
``within the meaning of Sec. 63.18(h)(1)'', in paragraph (f) revising
all references to ``Sec. 63.18(i)'' to read ``Sec. 63.18(n)'', removing
the Note to Sec. 63.11 and revising the section heading, paragraph (a),
(c)(1), (c)(2), (e)(1) and (e)(2) to read as follows:
Sec. 63.11 Notification by and prior approval for U.S. international
carriers that are or propose to become affiliated with a foreign
carrier.
(a) Any carrier authorized to provide international communications
service under this part shall notify the Commission sixty days prior to
the consummation of either of the following acquisitions of direct or
indirect interests in or by foreign carriers:
(1) Acquisition of a controlling interest in a foreign carrier by
the authorized carrier, or by any entity that controls the authorized
carrier, or that directly or indirectly owns more than 25 percent of
the capital stock of the authorized carrier; or
(2) Acquisition of a direct or indirect interest greater than 25
percent, or a controlling interest, in the capital stock of the
authorized carrier by a foreign carrier or by an entity that controls a
foreign carrier.
* * * * *
(c) * * *
(1) The carrier also should specify, where applicable, those
countries named in response to paragraph (c) of this section for which
it provides international switched services solely through the resale
of the international switched services of unaffiliated U.S. facilities-
based carriers.
(2) The carrier shall also submit with its notification:
(i) The name, address, citizenship and principal businesses of any
person or entity that directly or indirectly owns at least ten percent
of the equity of the applicant, and the percentage of equity owned by
each of those entities (to the nearest one percent). The applicant
shall also identify any interlocking directorates with a foreign
carrier.
(ii) A certification that the applicant has not agreed to accept
special concessions directly or indirectly from any foreign carrier
with respect to any U.S. international route where the foreign carrier
possesses market power on the foreign end of the route and will not
enter into such agreements in the future.
* * * * *
(e) * * *
(1) In the case of a notification filed under this section, the
Commission, if it deems it necessary, will by written order at any time
before or after the deadline for submission of public comments impose
dominant carrier regulation on the carrier for the affiliated routes
based on the provisions of Sec. 63.10 of this part.
(2) The Commission will presume the investment to be in the public
interest unless the Commission notifies the
[[Page 19063]]
carrier that the investment raises a substantial and material question
of fact as to whether the investment serves the public interest,
convenience and necessity. Such notification shall be in writing within
30 days of the issuance of the public notice. If notified that the
investment raises a substantial and material question, then the carrier
shall not consummate the planned investment until it has filed a
complete application under Sec. 63.18, including Sec. 63.18(k) of this
part, and the Commission has approved the application by formal written
order.
* * * * *
10. Section 63.12, paragraph (c)(2) is amended by removing the
words ``within the meaning of Sec. 63.18(h)(1)'', redesignating
paragraph (c)(5) as paragraph (c)(4) and revising paragraphs (a), (b),
(c)(1) and (c)(4) to read as follows:
Sec. 63.12 Processing of international Section 214 applications.
(a) Except as provided by paragraph (c) of this section, a complete
application seeking authorization under Sec. 63.18 of this part shall
be granted by the Commission 14 days after the date of public notice
listing the application as accepted for filing.
(b) The applicant may commence operation on the 15th day after the
date of public notice listing the application as accepted for filing,
but only in accordance with the operations proposed in its application
and the rules, regulations, and policies of the Commission. The public
notice of the grant of the authorization shall represent the
applicant's Section 214 certificate.
(c) * * *
(1) The applicant is affiliated with a foreign carrier in a
destination market, unless the applicant clearly demonstrates in its
application at least one of the following:
(i) The Commission has previously determined that the affiliated
foreign carrier lacks market power in that destination market;
(ii) The applicant qualifies for a presumption of non-dominance
under Sec. 63.10(a)(3);
(iii) The affiliated foreign carrier owns no facilities, or only
mobile wireless facilities, in that destination market. For this
purpose, a carrier is said to own facilities if it holds an ownership,
indefeasible-right-of-user, or leasehold interest in bare capacity in
international or domestic telecommunications facilities (excluding
switches);
(iv) The affiliated destination market is a WTO Member country and
the applicant qualifies for a presumption of non-dominance under
Sec. 63.10(a)(4)of this part;
(v) The affiliated destination market is a WTO Member country and
the applicant agrees to be classified as a dominant carrier to the
affiliated destination country under Sec. 63.10, without prejudice to
its right to petition for reclassification at a later date; or
(vi) An entity with exactly the same ultimate ownership as the
applicant has been authorized to provide the applied-for services on
the affiliated destination route, and the applicant agrees to be
subject to all of the conditions to which the authorized carrier is
subject for its provision of service on that route; or
* * * * *
(4) The Commission has informed the applicant in writing, within 14
days after the date of public notice listing the application as
accepted for filing, that the application is not eligible for
streamlined processing.
(d) If an application is deemed complete but, pursuant to paragraph
(c) of this section, is deemed ineligible for the streamlined
processing procedures provided by paragraphs (a) and (b) of this
section, the Commission will issue public notice indicating that the
application is ineligible for streamlined processing. Within 90 days of
the public notice, the Commission will take action upon the application
or provide public notice that, because the application raises questions
of extraordinary complexity, an additional 90-day period for review is
needed. Each successive 90-day period may be so extended. The
application shall not be deemed granted until the Commission
affirmatively acts upon the application. Operation for which such
authorization is sought may not commence except in accordance with any
terms or conditions imposed by the Commission.
11. Section 63.14 is amended by removing the last sentence of
paragraph (a) and revising paragraph (b) introductory text to read as
follows:
Sec. 63.14 Prohibition on agreeing to accept special concessions.
* * * * *
(b) A special concession is defined as an exclusive arrangement
involving services, facilities, or functions on the foreign end of a
U.S. international route that are necessary for the provision of basic
telecommunications services where the arrangement is not offered to
similarly situated U.S.-licensed carriers and involves:
* * * * *
Sec. 63.15 [Removed]
12. Section 63.15 is removed.
13. Section 63.16 is added to read as follows:
Sec. 63.16 Switched services over private lines.
(a) Except as provided in Sec. 63.22(f)(2) of this part, a carrier
may provide switched basic services over its authorized private lines
if and only if the country at the foreign end of the private line
appears on a Commission list of destinations to which the Commission
has authorized the provision of switched services over private lines.
The list of authorized destinations is available from the International
Bureau's World Wide Web site at http://www.fcc.gov/ib.
(b) An authorized carrier seeking to add a foreign market to the
list of markets for which carriers may provide switched services over
private lines must make the following showing:
(1) If seeking a Commission ruling to permit the provision of
international switched basic services over private lines between the
United States and a WTO Member country, the applicant shall demonstrate
either that settlement rates for at least 50 percent of the settled
U.S.-billed traffic between the United States and the country at the
foreign end of the private line are at or below the benchmark
settlement rate adopted for that country in IB Docket No. 96-261 or
that the country affords resale opportunities equivalent to those
available under U.S. law (see paragraph (c) of this section).
(2) If seeking a Commission ruling to permit the provision of
international switched basic services over private lines between the
United States and a non-WTO Member country, the applicant shall
demonstrate that settlement rates for at least 50 percent of the
settled U.S.-billed traffic between the United States and the country
at the foreign end of the private line are at or below the benchmark
settlement rate adopted for that country in IB Docket No. 96-261 that
the country affords resale opportunities equivalent to those available
under U.S. law (see paragraph (c) of this section).
(c) With regard to showing under paragraph (b) of this section that
a destination country affords resale opportunities equivalent to those
available under U.S. law, an applicant shall include evidence
demonstrating that equivalent resale opportunities exist between the
United States and the subject country, including any relevant bilateral
or multilateral agreements between the administrations involved. The
applicant must demonstrate that the foreign country at the other end of
the
[[Page 19064]]
private line provides U.S.-based carriers with:
(1) The legal right to resell international private lines,
interconnected at both ends, for the provision of switched services;
(2) Reasonable and nondiscriminatory charges, terms and conditions
for interconnection to foreign domestic carrier facilities for
termination and origination of international services, with adequate
means of enforcement;
(3) Competitive safeguards to protect against anticompetitive and
discriminatory practices affecting private line resale; and
(4) Fair and transparent regulatory procedures, including
separation between the regulator and operator of international
facilities-based services.
(d) The showing required by paragraph (b) of this section may be
made in a Section 214 application filed pursuant to Sec. 63.18 of this
part or in a petition for declaratory ruling addressed to the attention
of the International Bureau and indicating clearly the name of the
party seeking the declaration and the destination points for which the
declaration is sought. The Commission will issue public notice of the
filing of the request and may, in each case, determine an appropriate
deadline for filing comments. Unopposed requests may be granted by
public notice.
Note 1 to Sec. 63.16: The Commission's benchmark settlement
rates are available in International Settlement Rates, IB Docket No.
96-261, Report and Order, FCC 97-280, 12 FCC Rcd 19,806, 62 FR 45758
(August 29, 1997).
14. Section 63.17 is amended by revising paragraph (b)(4) to read
as follows:
Sec. 63.17 Special provisions for U.S. international carriers.
* * * * *
(b) * * *
(4) No U.S. common carrier may engage in switched hubbing to or
from a third country where it has an affiliation with a foreign carrier
unless and until it has received authority to serve that country under
Sec. 63.18(e)(1), (e)(2), or (e)(4) of this part.
15. Section 63.18 is amended by redesignating paragraphs (j) and
(k), as paragraphs (o) and (p), revising paragraphs (e), (g), (h), and
(i), and adding new paragraphs (j) through (n) to read as follows:
Sec. 63.18 Contents of applications for international common carriers.
* * * * *
(e) One or more of the following statements, as pertinent:
(1) Global facilities-based authority. If applying for authority to
become a facilities-based international common carrier subject to
Sec. 63.22 of this part, the applicant shall:
(i) State that it is requesting Section 214 authority to operate as
a facilities-based carrier pursuant to Sec. 63.18(e)(1) of this part of
the Commission's rules;
(ii) List any countries for which the applicant does not request
authorization under this paragraph (see Sec. 63.22(a) of this part);
and
(iii) Certify that it will comply with the terms and conditions
contained in Secs. 63.21 and 63.22 of this part.
(2) Global resale authority. If applying for authority to resell
the international services of authorized U.S. common carriers subject
to Sec. 63.23 of this part, the applicant shall:
(i) State that it is requesting Section 214 authority to operate as
a resale carrier pursuant to Sec. 63.18(e)(2) of this section of the
Commission's rules;
(ii) List any countries for which the applicant does not request
authorization under this paragraph (see Sec. 63.23(a) of this part);
and
(iii) Certify that it will comply with the terms and conditions
contained in Secs. 63.21 and 63.23 of this part.
(3) Transfer of control or assignment. If applying for authority to
transfer control of a common carrier holding international Section 214
authorization or to acquire, by assignment, another carrier's existing
international Section 214 authorization, the applicant shall complete
paragraphs (a) through (d) of this section for both the transferor/
assignor and the transferee/assignee. Only the transferee/assignee
needs to complete paragraphs (h) through (p) of this section. At the
beginning of the application, the applicant should also include a
narrative of the means by which the transfer or assignment will take
place. The Commission reserves the right to request additional
information as to the particulars of the transaction to aid it in
making its public interest determination. An assignee or transferee
shall notify the Commission no later than 30 days after either
consummation of the assignment or transfer or a decision not to
consummate the assignment or transfer. The notification may be by
letter and shall identify the file numbers under which the initial
authorization and the authorization of the assignment or transfer were
granted. See also Sec. 63.24 of this part (pro forma assignments and
transfers of control).
(4) Other authorizations. If applying for authority to acquire
facilities or to provide services not covered by paragraphs (e)(1)
through (e)(3), the applicant shall provide a description of the
facilities and services for which it seeks authorization. The applicant
shall certify that it will comply with the terms and conditions
contained in Sec. 63.21 and Sec. 63.22 and/or Sec. 63.23 of this part,
as appropriate. Such description also shall include any additional
information the Commission shall have specified previously in an order,
public notice or other official action as necessary for authorization.
* * * * *
(g) Where the applicant is seeking facilities-based authority under
paragraph (e)(4) of this section, a statement whether an authorization
of the facilities is categorically excluded as defined by Sec. 1.1306
of this chapter. If answered affirmatively, an environmental assessment
as described in Sec. 1.1311 of this chapter need not be filed with the
application.
(h) The name, address, citizenship and principal businesses of any
person or entity that directly or indirectly owns at least ten percent
of the equity of the applicant, and the percentage of equity owned by
each of those entities (to the nearest one percent). The applicant
shall also identify any interlocking directorates with a foreign
carrier.
(i) A certification as to whether or not the applicant is, or is
affiliated with, a foreign carrier. The certification shall state with
specificity each foreign country in which the applicant is, or is
affiliated with, a foreign carrier.
(j) A certification as to whether or not the applicant seeks to
provide international telecommunications services to any destination
country for which any of the following is true. The certification shall
state with specificity the foreign carriers and destination countries:
(1) The applicant is a foreign carrier in that country; or
(2) The applicant controls a foreign carrier in that country; or
(3) Any entity that owns more than 25 percent of the applicant, or
that controls the applicant, controls a foreign carrier in that
country.
(4) Two or more foreign carriers (or parties that control foreign
carriers) own, in the aggregate, more than 25 percent of the applicant
and are parties to, or the beneficiaries of, a contractual relation
(e.g., a joint venture or market alliance) affecting the provision or
marketing of international basic telecommunications services in the
United States.
(k) For any destination country listed by the applicant in response
to paragraph (j) of this section, the applicant shall make one of the
following showings:
(1) The named foreign country (i.e., the destination foreign
country) is a
[[Page 19065]]
Member of the World Trade Organization; or
(2) The applicant's affiliated foreign carrier lacks market power
in the named foreign country; or
(3) The named foreign country provides effective competitive
opportunities to U.S. carriers to compete in that country's market for
the service that the applicant seeks to provide (facilities-based,
resold switched, or resold non-interconnected private line services).
An effective competitive opportunities demonstration should address the
following factors:
(i) If the applicant seeks to provide facilities-based
international services, the legal ability of U.S. carriers to enter the
foreign market and provide facilities-based international services, in
particular international message telephone service (IMTS);
(ii) If the applicant seeks to provide resold services, the legal
ability of U.S. carriers to enter the foreign market and provide resold
international switched services (for switched resale applications) or
non-interconnected private line services (for non-interconnected
private line resale applications);
(iii) Whether there exist reasonable and nondiscriminatory charges,
terms and conditions for interconnection to a foreign carrier's
domestic facilities for termination and origination of international
services or the provision of the relevant resale service;
(iv) Whether competitive safeguards exist in the foreign country to
protect against anticompetitive practices, including safeguards such
as:
(A) Existence of cost-allocation rules in the foreign country to
prevent cross-subsidization;
(B) Timely and nondiscriminatory disclosure of technical
information needed to use, or interconnect with, carriers' facilities;
and
(C) Protection of carrier and customer proprietary information;
(v) Whether there is an effective regulatory framework in the
foreign country to develop, implement and enforce legal requirements,
interconnection arrangements and other safeguards; and
(vi) Any other factors the applicant deems relevant to its
demonstration.
(l) Any applicant that proposes to resell the international
switched services of an unaffiliated U.S. carrier for the purpose of
providing international telecommunications services to a country where
it is a foreign carrier or is affiliated with a foreign carrier shall
either provide a showing that would satisfy Sec. 63.10(a)(3) of this
part or state that it will file the quarterly traffic reports required
by Sec. 43.61(c) of this chapter.
(m) With respect to regulatory classification under Sec. 63.10 of
this part, any applicant that is or is affiliated with a foreign
carrier in a country listed in response to paragraph (i) of this
section and that desires to be regulated as non-dominant for the
provision of particular international telecommunications services to
that country should provide information in its application to
demonstrate that it qualifies for non-dominant classification pursuant
to Sec. 63.10 of this part.
(n) A certification that the applicant has not agreed to accept
special concessions directly or indirectly from any foreign carrier
with respect to any U.S. international route where the foreign carrier
possesses market power on the foreign end of the route and will not
enter into such agreements in the future.
* * * * *
16. Section 63.20 is amended by revising paragraphs (b), (c) and
the first sentence of paragraph (d) to read as follows:
Sec. 63.20 Copies required; fees; and filing periods for international
service providers.
* * * * *
(b) No application accepted for filing and subject to the
provisions of Secs. 63.18, 63.62 or 63.505 of this part shall be
granted by the Commission earlier than 28 days following issuance of
public notice by the Commission of the acceptance for filing of such
application or any major amendment unless said public notice specifies
another time period, or the application qualifies for streamlined
processing pursuant to Sec. 63.12 of this part.
(c) No application accepted for filing and subject to the
streamlined processing provisions of Sec. 63.12 of this part shall be
granted by the Commission earlier than 14 days following issuance of
public notice by the Commission of the acceptance for filing of such
application or any major amendment unless said public notice specifies
another time period.
(d) Any interested party may file a petition to deny an application
within the time period specified in the public notice listing an
application as accepted for filing and ineligible for streamlined
processing. * * *
17. Section 63.21 is amended by revising the section heading,
paragraph (a), and adding new paragraphs (i) and (j) to read as
follows:
Sec. 63.21 Conditions applicable to all international Section 214
authorizations.
* * * * *
(a) Each carrier is responsible for the continuing accuracy of the
certifications made in its application. Whenever the substance of any
such certification is no longer accurate, the carrier shall as promptly
as possible and in any event within thirty days file with the Secretary
in duplicate a corrected certification referencing the FCC file number
under which the original certification was provided. The information
may be used by the Commission to determine whether a change in
regulatory status may be warranted under Sec. 63.10 of this part. See
also Sec. 63.11 of this part.
* * * * *
(i) Subject to the requirement of Sec. 63.10 of this part that a
carrier regulated as dominant along a route must provide service as an
entity that is separate from its foreign carrier affiliate, and subject
to any other structural-separation requirement in Commission
regulations, an authorized carrier may provide service through any
wholly owned direct or indirect subsidiaries. The carrier shall, within
30 days after the subsidiary begins providing service, file a letter
with the Secretary in duplicate referencing the authorized carrier's
name and the FCC file numbers under which the carrier's authorizations
were granted and identifying the subsidiary's name and place of legal
organization. This provision shall not be construed to authorize the
provision of service by any entity barred by statute or regulation from
itself holding an authorization or providing service.
(j) An authorized carrier, or a subsidiary operating pursuant to
paragraph (i) of this section, that changes its name (including the
name under which it is doing business) shall notify the Commission by
letter filed with the Secretary in duplicate within 30 days of the name
change. Such letter shall reference the FCC file numbers under which
the carrier's authorizations were granted.
18. Section 63.22 is added to read as follows:
Sec. 63.22 Facilities-based international common carriers.
The following conditions apply to authorized facilities-based
international carriers:
(a) A carrier authorized under Sec. 63.18(e)(1) of this part may
provide international facilities-based services to international points
for which it qualifies for non-dominant regulation as set forth in
Sec. 63.10 of this part, except in the following circumstance: If the
carrier is, or is affiliated with, a foreign carrier in a destination
market and the Commission has not determined that the
[[Page 19066]]
foreign carrier lacks market power in the destination market (see
Sec. 63.10(a) of this part), the carrier shall not provide service on
that route unless it has received specific authority to do so under
Sec. 63.18(e)(4) of this part.
(b) The carrier may provide service using half-circuits on any
appropriately licensed U.S. common carrier and non-common carrier
facilities (under either Title III of the Communications Act of 1934,
as amended, or the Submarine Cable Landing License Act, 47 U.S.C. 34-
39) that do not appear on an exclusion list published by the
Commission. Carriers may also use any necessary non-U.S.-licensed
facilities, including any submarine cable systems, that do not appear
on the exclusion list. Carriers may not use U.S. earth stations to
access non-U.S.-licensed satellite systems unless the Commission has
specifically approved the use of those satellites and so indicates on
the exclusion list, and then only for service to the countries
indicated thereon. The exclusion list is available from the
International Bureau's World Wide Web site at http://www.fcc.gov/ib.
(c) Specific authority under Sec. 63.18(e)(4) of this part is
required for the carrier to provide service using any facilities listed
on the exclusion list, to provide service between the United States and
any country on the exclusion list, or to construct, acquire, or operate
lines in any new major common carrier facility project.
(d) The carrier may provide international basic switched, private
line, data, television and business services.
(e)(1) Except as provided in paragraph (e)(2) of this section, the
carrier may provide switched basic services over its authorized
facilities-based private lines if and only if the country at the
foreign end of the private line appears on a Commission list of
countries to which the Commission has authorized the provision of
switched services over private lines. See Sec. 63.16 of this part. If
at any time the Commission removes the country from that list or finds
that market distortion has occurred in the routing of traffic between
the United States and that country, the carrier shall comply with
enforcement actions taken by the Commission.
(2) The carrier may use its authorized private line facilities to
provide switched basic services in circumstances where the private line
facility is interconnected to the public switched network on only one
end--either the U.S. end or the foreign end--and where the carrier is
not operating the facility in correspondence with a carrier that
directly or indirectly owns the private line facility in the foreign
country at the other end of the private line.
(f) The carrier shall file annual international circuit status
reports as required by Sec. 43.82 of this chapter.
(g) The authority granted under this part is subject to all
Commission rules and regulations and any conditions or limitations
stated in the Commission's public notice or order that serves as the
carrier's Section 214 certificate. See Secs. 63.12, 63.21 of this part.
19. Section 63.23 is added to read as follows:
Sec. 63.23 Resale-based international common carriers.
The following conditions apply to carriers authorized to resell the
international services of other authorized carriers:
(a) A carrier authorized under Sec. 63.18(e)(2) of this part may
provide resold international services to international points for which
the applicant qualifies for non-dominant regulation as set forth in
Sec. 63.10, except that the carrier may not provide either of the
following services unless it has received specific authority to do so
under Sec. 63.18(e)(4) of this part:
(1) Resold switched services to a non-WTO Member country where the
applicant is, or is affiliated with, a foreign carrier; and
(2) Switched or private line services over resold private lines to
a destination market where the applicant is, or is affiliated with, a
foreign carrier and the Commission has not determined that the foreign
carrier lacks market power in the destination market (see Sec. 63.10(a)
of this part).
(b) The carrier may not resell the international services of an
affiliated carrier regulated as dominant on the route to be served
unless it has received specific authority to do so under
Sec. 63.18(e)(4) of this part.
(c) Except as provided in paragraph (b) of this section, the
carrier may resell the international services of any authorized common
carrier, pursuant to that carrier's tariff or contract duly filed with
the Commission, for the provision of international basic switched,
private line, data, television and business services to all
international points.
(d) The carrier may provide switched basic services over its
authorized resold private lines if and only if the country at the
foreign end of the private line appears on a Commission list of
countries to which the Commission has authorized the provision of
switched services over private lines. See Sec. 63.16 of this part. If
at any time the Commission removes the country from that list or finds
that market distortion has occurred in the routing of traffic between
the United States and that country, the carrier shall comply with
enforcement actions taken by the Commission.
(e) Any party certified to provide international resold private
lines to a particular geographic market shall report its circuit
additions on an annual basis. Circuit additions should indicate the
specific services provided (e.g., IMTS or private line) and the country
served. This report shall be filed on a consolidated basis not later
than March 31 for the preceding calendar year.
(f) The authority granted under this part is subject to all
Commission rules and regulations and any conditions or limitations
stated in the Commission's public notice or order that serves as the
carrier's Section 214 certificate. See Secs. 63.12, 63.21 of this part.
Section 63.24 is added to read as follows:
Sec. 63.24 Pro forma assignments and transfers of control.
(a) Definition. An assignment of an authorization granted under
this part or a transfer of control of a carrier authorized under this
part to provide an international telecommunications service is a pro
forma assignment or transfer of control if it falls into one of the
following categories and, together with all previous pro forma
transactions, does not result in a change in the carrier's ultimate
control:
(1) Assignment from an individual or individuals (including
partnerships) to a corporation owned and controlled by such individuals
or partnerships without any substantial change in their relative
interests;
(2) Assignment from a corporation to its individual stockholders
without effecting any substantial change in the disposition of their
interests;
(3) Assignment or transfer by which certain stockholders retire and
the interest transferred is not a controlling one;
(4) Corporate reorganization that involves no substantial change in
the beneficial ownership of the corporation (including reincorporation
in a different jurisdiction or change in form of the business entity);
(5) Assignment or transfer from a corporation to a wholly owned
direct or indirect subsidiary thereof or vice versa, or where there is
an assignment from a corporation to a corporation owned or controlled
by the assignor stockholders without substantial change in their
interests; or
(6) Assignment of less than a controlling interest in a
partnership.
[[Page 19067]]
(b) Except as provided in paragraph (c) of this section, a pro
forma assignment or transfer of control of an authorization to provide
international telecommunications service is not subject to the
requirements of Sec. 63.18 of this part. A pro forma assignee or a
carrier that is the subject of a pro forma transfer of control is not
required to seek prior Commission approval for the transaction. A pro
forma assignee must notify the Commission no later than 30 days after
the assignment is consummated. The notification may be in the form of a
letter (in duplicate to the Secretary), and it must contain a
certification that the assignment was pro forma as defined in paragraph
(a) of this section and, together with all previous pro forma
transactions, does not result in a change of the carrier's ultimate
control. A single letter may be filed for an assignment of more than
one authorization if each authorization is identified by the file
number under which it was granted.
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
21. The authority citation for part 64 continues to read as
follows:
Authority: 47 U.S.C. 160, 201, 218, 226, 228, 332 unless
otherwise noted.
Sec. 64.1002 [Amended]
22. Section 64.1002, revise all references to ``63.18(h)(1)(i)'' to
read ``63.09(e)'' and ``63.18(h)(5)(iii)'' to read ``63.18(k)(3)''.
Note: This attachment will not appear in the Code of Federal
Regulations.
Attachment A--Exclusion List for International Section 214
Authorizations
Last Adopted on March 18, 1999
The following is a list of countries and facilities not covered
by grant of global Section 214 authority under Sec. 63.18(e)(1) of
the Commission's Rules, 47 CFR 63.18(e)(1). In addition, the
facilities listed shall not be used by U.S. carriers authorized
under Sec. 63.18 of the Commission's Rules unless the carrier's
Section 214 authorization specifically lists the facility. Carriers
desiring to serve countries or use facilities listed as excluded
hereon shall file a separate Section 214 application pursuant to
Sec. 63.18(e)(4) of the Commission's Rules. See generally 47 CFR
63.22.
Countries
Cuba (Applications for service to Cuba shall comply with the
separate filing requirements of the Commission's Public Notice
Report No. I-6831, dated July 27, 1993, ``FCC to Accept Applications
for Service to Cuba.'')
Facilities:
All non-U.S.-licensed satellite systems
This list is subject to change by the Commission when the public
interest requires. Before amending the list, the Commission will
first issue a public notice giving affected parties the opportunity
for comment and hearing on the proposed changes. The Commission may
then release an order amending the exclusion list. This list also is
subject to change upon issuance of an Executive Order. See
Streamlining the Section 214 Authorization Process and Tariff
Requirements, IB Docket No. 95-118, FCC 96-79, 11 FCC Rcd 12884,
released March 13, 1996 (61 FR 15724, April 9, 1996). A current
version of this list is maintained at http://www.fcc.gov/ib/td/pf/
exclusionlist.html.
For additional information, contact the International Bureau's
Telecommunications Division, Policy & Facilities Branch, (202) 418-
1460.
[FR Doc. 99-9480 Filed 4-16-99; 8:45 am]
BILLING CODE 6712-01-U
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.