Biennial Review of International Common Carrier Regulations

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 43, and 63

[IB Docket No. 98-118, FCC 98-149]

Biennial Review of International Common Carrier Regulations

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: On July 9, 1998, the Federal Communications Commission adopted

a Notice of Proposed Rulemaking (NPRM) to further streamline the rules

governing international common carriers. The Commission proposes to

eliminate review of many international applications, reduce the scope

of information that must be provided in applications, and clarify its

rules so that carriers can more easily understand their obligations.

The proposals 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 proposed rules will lessen the regulatory burdens on applicants,

authorized carriers, and the Commission by allowing carriers to operate

more efficiently.

DATES: Comments are due on or before August 10, 1998; and reply

comments are due on or before August 25. Written comments by the public

on the proposed information collections are due September 22, 1998.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW, Room

222, Washington, DC 20554. A copy of any comments on the information

collections contained herein should be submitted to Judy Boley, Federal

Communications Commission, Room 234, 1919 M Street, NW, Washington, DC

20554, or via the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Douglas Klein, Attorney-Advisor,

Policy and Facilities Branch, Telecommunications Division,

International Bureau, (202) 418-1470. For additional information

concerning the information collections contained in this NPRM contact

Judy Boley at 202-418-0214, or via the Internet at [email protected].

Washington, DC

20554, or via the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Douglas Klein, Attorney-Advisor,

Policy and Facilities Branch, Telecommunications Division,

International Bureau, (202) 418-1470. For additional information

concerning the information collections contained in this NPRM contact

Judy Boley at 202-418-0214, or via the Internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice

of Proposed Rulemaking, FCC 98-149, adopted on July 9, 1998. The full

text of this NPRM is available for inspection and copying during normal

business hours in the FCC Reference Center

(Room 239) of the Federal Communications Commission, 1919 M Street, NW,

Washington, DC 20554. The complete text of this NPRM also may be

purchased from the Commission's copy contractor, International

Transcription Service, Inc., 1231 20th Street, NW, Washington, DC

20036, (202) 857-3800.

The Commission initiated this proceeding in response to the

Telecommunications Act of 1996, which requires the Commission to review

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.

This NPRM contains proposed or modified 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 proposed or modified information collections

contained in this proceeding.

Summary of Notice

terest.

This NPRM contains proposed or modified 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 proposed or modified information collections

contained in this proceeding.

Summary of Notice

1. The Commission adopted a Notice of Proposed Rulemaking (FCC 98-

149) to further streamline the international Section 214 authorization

process and tariff requirements. This proceeding was initiated pursuant

to the Telecommunications Act of 1996, which directs the FCC 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 that are overly

burdensome or no longer serve the public interest. We seek comment on

the proposals contained in this Notice.

2. In this proceeding, the Commission proposes to streamline and,

where appropriate, eliminate many of the rules for seeking

authorization pursuant to Section 214. The Commission proposes a

blanket Section 214 authorization for international service to

unaffiliated points. The blanket authorization would certify that it

would serve the pubic interest, convenience, and necessity to allow any

entity that would be a non-dominant carrier to provide facilities-based

service, or to resell the international services of other carriers, to

any international points except a market in which an affiliated carrier

operates. Carriers providing service pursuant to this blanket

authorization would continue to be subject to all of the Commission's

rules and regulations governing international service

y that would be a non-dominant carrier to provide facilities-based

service, or to resell the international services of other carriers, to

any international points except a market in which an affiliated carrier

operates. Carriers providing service pursuant to this blanket

authorization would continue to be subject to all of the Commission's

rules and regulations governing international service. Furthermore, the

authorization of any particular carrier could be revoked or conditioned

as necessary.

3. We seek comment on the scope of the proposed blanket Section 214

authorization. In particular, we seek comment on whether there is a

smaller or larger class of carriers or services for which a blanket

authorization would be appropriate. For example, should the blanket

authorization be limited to the resale of other carriers' services

instead of also authorizing the provision of facilities-based services?

Comments should address whether there remain any public interest

considerations that might warrant denying an authorization to provide

facilities-based service to a foreign market where the applicant has no

affiliate. Furthermore, we seek comment on ways to identify

affiliations that are equally unlikely to raise public interest

concerns that therefore should not require prior Commission review.

Commenters should address whether there is a way to include within the

blanket authorization a carrier's provision of facilities-based or

resold service on routes where it has an affiliation with a carrier

that, for example: we have previously found (in some other context) to

lack market power in the foreign destination market; has no

telecommunications facilities in that market; and/or has only mobile

wireless facilities in that market

ay to include within the

blanket authorization a carrier's provision of facilities-based or

resold service on routes where it has an affiliation with a carrier

that, for example: we have previously found (in some other context) to

lack market power in the foreign destination market; has no

telecommunications facilities in that market; and/or has only mobile

wireless facilities in that market. We tentatively conclude that we

must maintain a requirement that carriers notify the Commission that

they are providing international service pursuant to the blanket

authorization, and that we must be able to condition or revoke an

authorization if necessary to prevent anticompetitive effects. We seek

comment on the applicability of our tentative conclusions to commercial

mobile radio services (CMRS) licenses.

4. We propose to add a new rule section 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. We tentatively conclude that given the mechanisms in place,

many pro forma transfers and assignments meet the forbearance standard

as defined by Section 10 of the Communications Act. So that the

Commission can maintain accurate records of the entities holding

Section 214 authorization, we propose to require that authorized

carriers that undertake a pro forma assignment notify the Commission by

letter within 30 days after consummation of the transaction. We

tentatively conclude that we need not require that carriers notify us

of pro forma transfers of control. The proposed rule would apply to all

authorized international carriers.

5. We seek comment on a proposal to amend Sec. 63.21 of the rules

to provide that an international Section 214 authorization effectively

authorizes the carrier to provide services through its wholly owned

subsidiaries

tentatively conclude that we need not require that carriers notify us

of pro forma transfers of control. The proposed rule would apply to all

authorized international carriers.

5. We seek comment on a proposal to amend Sec. 63.21 of the rules

to provide that an international Section 214 authorization effectively

authorizes the carrier to provide services through its wholly owned

subsidiaries. Although this proposal promotes flexibility, it must not

be used by carriers to circumvent any structural-separation provision

in the Commission's rules. We seek comment on whether the proposed rule

would defeat any of the Commission's structural-separation

requirements.

6. The Commission's rules currently provide that a carrier with a

global facilities-based authorization may not use non-U.S-licensed

facilities unless and until it has received specific prior approval or

the Commission generally approves their use and so indicates on an

exclusion list maintained by the International Bureau. We propose to

amend the 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 would then provide that carriers with global

Section 214 authorizations to provide facilities-based service would be

authorized to serve any unaffiliated market except Cuba and would be

permitted to use any facilities except non-U.S.-licensed satellite

systems that are not specifically identified. This proposed rule change

would not affect the rules for use of non-U.S.-licensed satellite

systems, which continues to be governed by the policies adopted in the

Commission's DISCO II Order (62 FR 64167, December 4, 1997).

7

serve any unaffiliated market except Cuba and would be

permitted to use any facilities except non-U.S.-licensed satellite

systems that are not specifically identified. This proposed rule change

would not affect the rules for use of non-U.S.-licensed satellite

systems, which continues to be governed by the policies adopted in the

Commission's DISCO II Order (62 FR 64167, December 4, 1997).

7. We also seek comment on our proposal 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. We tentatively

conclude that we must limit this provision by stating that it does not

authorize the construction or extension of lines that may have a

significant effect on the environment as defined in our rules. We

propose to eliminate the requirement currently in the rules that

requires the applicant to include a statement whether an authorization

of the facilities is categorically excluded from environmental

processing. We

tentatively conclude 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. This proposal is subject to a change in the

application fees for cable landing licenses and Section 214

authorizations, which are set by statute.

8. We also propose to reorganize and simplify some of our existing

rules. We tentatively conclude that we should reorganize Sec. 63.18,

which describes the contents of international Section 214 applications,

and list the obligations of each category of carrier in a separate rule

section. We propose to include in the rules a provision codifying the

benchmark settlement rate condition that we adopted in the Benchmarks

Order (62 FR 45758, August 29, 1997)

ting

rules. We tentatively conclude that we should reorganize Sec. 63.18,

which describes the contents of international Section 214 applications,

and list the obligations of each category of carrier in a separate rule

section. We propose to include in the rules a provision codifying the

benchmark settlement rate condition that we adopted in the Benchmarks

Order (62 FR 45758, August 29, 1997). We also propose to create new

sections for definitions and for our policy on the provision of

switched services over international private lines.

9. We also propose to modify our rules so that applicants will be

required to list only the direct and indirect shareholders with

interests greater than 25 percent.

Currently, applicants must report every 10-percent-or-greater

direct and indirect shareholder. We seek comment on whether it remains

necessary to scrutinize direct and indirect investments in applicants

at a greater level of detail than we require after the carrier is

authorized.

10. In the Foreign Participation Order, 62 FR 64741. December 9,

1997, we removed the prior-approval requirement for dominant carriers

but neglected to amend the rules to provide that dominant resellers of

international private lines are nevertheless subject to the annual

reporting requirement. We propose to strike the word non-dominant from

that provision and move that provision to the new rule section

containing obligations generally applicable to resellers.

11. We propose to require that carriers authorized to undertake an

assignment notify the Commission by letter within 30 days after either

consummation of the assignment or a decision not to go forward with the

assignment. We also propose to clarify that a carrier that changes its

name need only notify the Commission by letter within 30 days after the

name change.

12

applicable to resellers.

11. We propose to require that carriers authorized to undertake an

assignment notify the Commission by letter within 30 days after either

consummation of the assignment or a decision not to go forward with the

assignment. We also propose to clarify that a carrier that changes its

name need only notify the Commission by letter within 30 days after the

name change.

12. We propose to create a new Section 63.16 containing the

Commission's policy on the provision of switched services over

international private lines interconnected to the public switched

network. This section would provide that carriers could seek a

Commission finding authorizing such service by filing a petition for

declaratory ruling, rather than a Section 214 application. This change

would not modify the requirement that carriers have the necessary

underlying Section 214 authority to provide facilities-based or resold

service between the United States and the country at the foreign end of

the private line.

13. No substantive changes are intended other than those discussed

in the NPRM. We seek comment on whether any inadvertent substantive

changes would result from the proposed reorganization of our rules.

Initial Regulatory Flexibility Analysis

14. The Regulatory Flexibility Act of 1990, 5 U.S.C. 601-612, (RFA)

as amended by the Contract with America Advancement Act of 1996, Pub.

L. 104-121, 110 Stat. 847, requires an initial regulatory flexibility

analysis in notice-and-comment rulemaking proceedings, unless we

certify that ``the rule will not, if promulgated, have a significant

economic impact on a substantial number of small entities.'' The

purposes of this proceeding are to eliminate some regulatory

requirements and to simplify and clarify other existing rules. The

proposals do not impose any additional compliance burden on small

entities dealing with the Commission. In fact, we anticipate that the

rule changes we propose will reduce regulatory and procedural burdens

on small entities

lemaking contains both proposed and

modified information collections. As part of our continuing effort to

reduce paperwork burdens, we invite the general public and the Office

of Management and Budget (OMB) to comment on the information

collections contained in this NPRM, as required by the Paperwork

Reduction Act of 1995, Pub. L. 104-13. Public and agency comments are

due September 22, 1998. 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: 105.

Estimated Time Per Response: 1 hour.

Total Annual Burden: 105.

Estimated costs per respondent: $150.00.

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

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.

Comment Filing Procedures

16. Comments and reply comments should be captioned in IB Docket

No. 98-118. Pursuant to applicable procedures set forth in Secs. 1.415

and 1.419 of the Commission's rules, 47 CFR

1.415, 1.419, interested parties may file comments on or before August

10, 1998, and reply comments on or before August 25, 1998. To file

formally in this proceeding, you must file an original and four copies

of all comments, reply comments, and supporting comments. If you want

each Commissioner to receive a personal copy of your comments, you must

file an original and nine copies. Comments and reply comments should be

sent to Office of the Secretary, Federal Communications Commission,

1919 M Street, NW., Room 222, Washington, DC 20554, with a copy to

Douglas Klein of the International Bureau, 2000 M Street, NW., Suite

800, Washington, DC 20554. Parties should also file one copy of any

documents filed in this docket with the Commission's copy contractor,

International Transcription Services, Inc., 1231 20th Street, NW.,

Washington, DC 20036

deral Communications Commission,

1919 M Street, NW., Room 222, Washington, DC 20554, with a copy to

Douglas Klein of the International Bureau, 2000 M Street, NW., Suite

800, Washington, DC 20554. Parties should also file one copy of any

documents filed in this docket with the Commission's copy contractor,

International Transcription Services, Inc., 1231 20th Street, NW.,

Washington, DC 20036. Comments and reply comments will be available for

public inspection during regular business hours in the FCC Reference

Center, 1919 M Street, NW., Room 239, Washington, DC. Parties are also

encouraged to file a copy of all pleadings on a 3.5-inch diskette in

WordPerfect 5.1 format.

17. For purposes of this proceeding, we hereby waive those

provisions of our rules that require formal comments to be filed on

paper, and we encourage parties to file comments electronically.

Electronically filed comments that conform to the following guidelines

will be considered part of the record in this proceeding and accorded

the same treatment as comments filed on paper pursuant to our rules. To

file electronic comments in this proceeding, you must use the

electronic filing interface available on the FCC's World Wide Web site

at http://dettifoss.fcc.gov:8080/cgi-bin/ws.exe/beta/ecfs/upload.hts.

Further information on the process of submitting comments

electronically is available at that location and at http://www.fcc.gov/

e-file/.

18. Written comments by the public on the proposed information

collections are due on or before September 22, 1998. 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 234, 1919 M Street, NW.,

Washington, DC 20554, or via the Internet to [email protected].

Ordering Clauses

the public on the proposed information

collections are due on or before September 22, 1998. 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 234, 1919 M Street, NW.,

Washington, DC 20554, or via the Internet to [email protected].

Ordering Clauses

19. Accordingly, it is ordered that, pursuant to Sections 1, 4(i),

10, 11, 201(b), 214, 303(r), 307, 309(a), and 310 of the Communications

Act of 1934, as amended, 47 U.S.C. 151, 154(i), 160, 161, 201(b), 214,

303(r), 307, 309(a), 310, this notice of proposed rulemaking is hereby

adopted.

20. It is further ordered that the Office of Public Affairs,

Reference Operations Division, shall send a copy of this notice of

proposed rulemaking, 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.

21. It is further ordered that the Office of Public Affairs,

Reference Operations Division, shall send a copy of this notice of

proposed rulemaking 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

Parts 1, 43, and 63 of title 47 of the Code of Federal Regulations

are amended 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)(6) and

(a)(7) and adding new paragraphs (a)(8) and (a)(9) to read as follows:

Sec. 1.767 Cable landing licenses.

l Regulations

are amended 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)(6) and

(a)(7) and adding new paragraphs (a)(8) and (a)(9) to read as follows:

Sec. 1.767 Cable landing licenses.

(a) * * *

(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 has an affiliation with, a foreign

carrier. Include the information and certifications required in

Sec. 63.18(h)(1) and (2) of this chapter; and

(9) Any other information that may be necessary to enable the

Commission to act on the application.

* * * * *

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.

5. Section 43.61 is amended by revising the last sentence of

paragraph (c) to read as follows:

Sec. 43.61 Reports of international telecommunications traffic.

* * * * *

ass 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.

5. Section 43.61 is amended by revising the last sentence of

paragraph (c) to read as follows:

Sec. 43.61 Reports of international telecommunications traffic.

* * * * *

(c) * * * For purposes of this paragraph, affiliation 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), 201-205, 218, 403, 533

unless otherwise noted.

7. New Sec. 63.09 is added to read as follows:

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 an INTELSAT or separate satellite system.

(b) Control includes actual working control in whatever manner

exercised and is not limited to majority stock ownership.

(c) Special concession is defined as in Sec. 63.14(b).

terest 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 an INTELSAT or separate satellite system.

(b) Control includes actual working control in whatever manner

exercised and is not limited to majority stock ownership.

(c) Special concession is defined as in Sec. 63.14(b).

(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) An affiliation with a foreign carrier includes the following:

(1) A greater than 25 percent ownership of capital stock, or

controlling interest at any level, by the carrier, or by any entity

that directly or indirectly controls or is controlled by it, or that is

under direct or indirect common control with it, in a foreign carrier

or in any entity that directly or indirectly controls a foreign

carrier; or

with a foreign carrier includes the following:

(1) A greater than 25 percent ownership of capital stock, or

controlling interest at any level, by the carrier, or by any entity

that directly or indirectly controls or is controlled by it, or that is

under direct or indirect common control with it, in a foreign carrier

or in any entity that directly or indirectly controls a foreign

carrier; or

(2) A greater than 25 percent ownership of capital stock, or

controlling interest at any level, in the carrier by a foreign carrier,

or by any entity that directly or indirectly controls or is controlled

by a foreign carrier, or that is under direct or indirect common

control with a foreign carrier; or by two or more foreign carriers

investing in the carrier in the same manner in circumstances where the

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 basic international telecommunications

services in the United States. A U.S. carrier also will be considered

to be affiliated with a foreign carrier where the foreign carrier

controls, is controlled by, or is under common control with a second

foreign carrier that is affiliated with that U.S. carrier under this

section.

(f) An affiliation with a U.S. facilities-based international

carrier is defined as in paragraph (e), except that the phrase ``U.S.

facilities-based international carrier'' shall be substituted for the

phrase ``foreign carrier.''

foreign carrier

controls, is controlled by, or is under common control with a second

foreign carrier that is affiliated with that U.S. carrier under this

section.

(f) An affiliation with a U.S. facilities-based international

carrier is defined as in paragraph (e), except that the phrase ``U.S.

facilities-based international carrier'' shall be substituted for the

phrase ``foreign carrier.''

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.

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, the last sentence of paragraph (a)(4),

and the last sentence of paragraph (c)(5).

9. Section 63.11 is amended by revising paragraphs (a)(1) and

(a)(2) and by removing the last sentence of paragraph (c)(1) to read as

follows:

Sec. 63.11 Notification by and prior approval for U.S. international

carriers that have or propose to acquire an affiliation with a foreign

carrier.

(a) * * *

(1) acquisition of a direct or indirect controlling interest in a

foreign carrier by the authorized carrier, or by any entity that

directly or indirectly 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 in the capital

stock of the authorized carrier by a foreign carrier or by an entity

that directly or indirectly controls a foreign carrier where the

interest would create an affiliation within the meaning of

Sec. 63.09(e)(2).

* * * * *

10. Section 63.14 is amended by removing the last sentence of

paragraph (a).

11. Section 63.15 is removed.

Sec. 63.15 [Removed]

12. New Sec. 63.16 is added to read as follows:

Sec. 63.16 Switched services over private lines.

by an entity

that directly or indirectly controls a foreign carrier where the

interest would create an affiliation within the meaning of

Sec. 63.09(e)(2).

* * * * *

10. Section 63.14 is amended by removing the last sentence of

paragraph (a).

11. Section 63.15 is removed.

Sec. 63.15 [Removed]

12. New Sec. 63.16 is added to read as follows:

Sec. 63.16 Switched services over private lines.

(a) Except as provided in Sec. 63.22(g)(2), 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 countries to which the Commission has authorized the

provision of switched services over private lines.

(b) An authorized carrier seeking to add a foreign market to the

list of markets to which carriers may provide switched services over

private lines must make the following showing in a Section 214

application filed pursuant to Sec. 63.18 or in a petition for

declaratory ruling:

(i) 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.

ry, 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.

(ii) 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 and

that the country affords resale opportunities equivalent to those

available under U.S. law.

(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 private line provides U.S.-based carriers with:

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 private line provides U.S.-based carriers with:

(i) The legal right to resell international private lines,

interconnected at both ends, for the provision of switched services;

(ii) 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;

(iii) Competitive safeguards to protect against anticompetitive and

discriminatory practices affecting private line resale; and

(iv) Fair and transparent regulatory procedures, including

separation between the regulator and operator of international

facilities-based services.

Note 1 to Sec. 63.16: The Commission's benchmark settlement

rates are available in International Settlement Rates, Report and

Order, 12 FCC Rcd 19,806, 62 FR 45758 (August 29, 1997).

13. Section 63.17 is amended by changing ``(e)(6)'' to ``(e)(4)''

at the end of paragraph (b)(4).

14. Section 63.18 is amended by revising paragraphs (e), (g), (h),

and (i) 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, the applicant shall:

ion 63.18 is amended by revising paragraphs (e), (g), (h),

and (i) 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, 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 the

Commission's rules

(ii) List any countries for which the applicant does not request

authorization under this paragraph (see Sec. 63.22(a)); and

(iii) Certify that it will comply with the terms and conditions

contained in Secs. 63.21 and 63.22.

(2) Global Resale Authority. If applying for authority to resell

the international services of authorized U.S. common carriers subject

to Sec. 63.23, 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 the Commission's

rules;

(ii) List any countries for which the applicant does not request

authorization under this paragraph (see Sec. 63.23(a)); and

(iii) Certify that it will comply with the terms and conditions

contained in Secs. 63.21 and 63.23.

(3) Transfer of Control or Assignment. If applying for authority to

acquire facilities through the transfer of control of a common carrier

holding international Section 214 authorization, or through the

assignment of another carrier's existing 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 (k) 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

isting 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 (k) 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 shall notify the

Commission no later than 30 days after either consummation of the

assignment or a decision not to consummate the assignment. The

notification may be by letter and shall identify the file numbers under

which the initial authorization and the authorization of the assignment

were granted. See also Sec. 63.24 (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, 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. 1.311 of this chapter need not be filed with the

application.

y 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. 1.311 of this chapter need not be filed with the

application.

(h) A certification as to whether or not the applicant is, or has

an affiliation with, a foreign carrier, supported by the following

information:

(1) In support of the required certification, each applicant shall

also provide the name, address, citizenship and principal businesses of

its greater-than-25-percent direct and indirect shareholders or other

equity holders and identify any interlocking directorates.

(2) The certification shall state with specificity each foreign

country in which the applicant is, or has an affiliation with, a

foreign carrier.

(3) Any applicant that seeks to provide international

telecommunications services to a particular country and that is a

foreign carrier in that country, or directly or indirectly controls a

foreign carrier in that country, or has an affiliation within the

meaning of paragraph Sec. 63.09(e)(2) of this section with a foreign

carrier in that country shall make one of the following showings:

(i) The named foreign country (i.e., the destination foreign

country) is a Member of the World Trade Organization; or

(ii) The applicant's affiliated foreign carrier lacks sufficient

market power in the named foreign country to affect competition

adversely in the U.S. market; or

Sec. 63.09(e)(2) of this section with a foreign

carrier in that country shall make one of the following showings:

(i) The named foreign country (i.e., the destination foreign

country) is a Member of the World Trade Organization; or

(ii) The applicant's affiliated foreign carrier lacks sufficient

market power in the named foreign country to affect competition

adversely in the U.S. market; or

(iii) 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:

(A) 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);

(B) 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);

(C) 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;

(D) Whether competitive safeguards exist in the foreign country to

protect against anticompetitive practices, including safeguards such

as:

(1) Existence of cost-allocation rules in the foreign country to

prevent cross-subsidization;

(2) Timely and nondiscriminatory disclosure of technical

information needed to use, or interconnect with, carriers' facilities;

and

e relevant resale service;

(D) Whether competitive safeguards exist in the foreign country to

protect against anticompetitive practices, including safeguards such

as:

(1) Existence of cost-allocation rules in the foreign country to

prevent cross-subsidization;

(2) Timely and nondiscriminatory disclosure of technical

information needed to use, or interconnect with, carriers' facilities;

and

(3) Protection of carrier and customer proprietary information;

(E) Whether there is an effective regulatory framework in the

foreign country to develop, implement and enforce legal requirements,

interconnection arrangements and other safeguards; and

(F) Any other factors the applicant deems relevant to its

demonstration.

(4) 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 the named

foreign country and that is a foreign carrier in that country or has an

affiliation with a foreign carrier in that country shall either provide

in its application a showing that would satisfy Sec. 63.10(a)(3) or

state that it will file the quarterly

traffic reports required by Sec. 43.61(c) of this chapter.

(5) With respect to regulatory classification under Sec. 63.10, any

applicant that certifies that it is or has an affiliation with a

foreign carrier in a named foreign country 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.

. 63.10, any

applicant that certifies that it is or has an affiliation with a

foreign carrier in a named foreign country 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.

(i) Each applicant shall certify 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 sufficient market power on the foreign end of the

route to affect competition adversely in the U.S. market and will not

enter into such agreements in the future.

* * * * *

15. Section 63.21 is amended by revising the section heading and

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 No.

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. See also

Sec. 63.11.

* * * * *

ccurate, 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 No.

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. See also

Sec. 63.11.

* * * * *

(i) Subject to the requirement of Sec. 63.10 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

subsidiaries without seeking additional Commission authorization,

provided that 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 that changes its name 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 No.

under which the carrier's authorizations were granted.

* * * * *

16. Sections 63.22 through 63.25 are added to read as follows:

Sec. 63.22 Facilities-based international common carriers.

The following conditions apply to authorized international

facilities-based carriers:

er filed with the Secretary in duplicate within 30

days of the name change. Such letter shall reference the FCC File No.

under which the carrier's authorizations were granted.

* * * * *

16. Sections 63.22 through 63.25 are added to read as follows:

Sec. 63.22 Facilities-based international common carriers.

The following conditions apply to authorized international

facilities-based carriers:

(a) A carrier authorized under Sec. 63.18(e)(1) may provide

international facilities-based services to international points for

which it qualifies for non-dominant regulation as set forth in

Sec. 63.10, 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 foreign carrier lacks sufficient

market power in the destination market to affect competition adversely

in the U.S. market (see Sec. 63.10(a)), the carrier shall not provide

service on that route unless it has received specific authority to do

so under Sec. 63.18(e)(4).

(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.

Secs. 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 maintained on the Commission's

World Wide Web site at http://www.fcc.gov/ib/td/pf/exclusion list.html.

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 maintained on the Commission's

World Wide Web site at http://www.fcc.gov/ib/td/pf/exclusion list.html.

(c) The carrier may not provide service to any country listed on an

exclusion list published by the Commission unless it has received

specific authority under Sec. 63.18(e)(4).

(d) The carrier may provide international basic switched, private

line, data, television and business services.

(e) Subject to the requirements of the Submarine Cable Landing

License Act, 47 U.S.C. 34-39, the carrier is authorized to construct,

acquire, or operate lines in any new major common carrier facility

project between the United States and all international points that it

is authorized to serve on a facilities basis. This paragraph shall not

authorize the carrier to engage in any construction or extension of

lines that may have a significant effect on the environment as defined

in Sec. 1.1307 of this chapter. See Sec. 1.1312 of this chapter. The

carrier must seek specific Section 214 authority and comply with the

Commission's environmental rules before any such construction or

extension.

(f) Except as otherwise ordered by the Commission, the carrier may

provide facilities-based service to a market served by an affiliate

that terminates U.S. international switched traffic only if that

affiliate has in effect a settlement rate with U.S. international

carriers that is at or below the Commission's relevant benchmark

adopted in IB Docket No. 96-261. See FCC 97-280 (rel. Aug. 18, 1997)

(available at the FCC's Reference Operations Division, Washington, DC

20554, and on the FCC's World Wide Web Site at http://www.fcc.gov).

rminates U.S. international switched traffic only if that

affiliate has in effect a settlement rate with U.S. international

carriers that is at or below the Commission's relevant benchmark

adopted in IB Docket No. 96-261. See FCC 97-280 (rel. Aug. 18, 1997)

(available at the FCC's Reference Operations Division, Washington, DC

20554, and on the FCC's World Wide Web Site at http://www.fcc.gov).

(g)(1) Except as provided in paragraph (g)(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. If at any time

the Commission finds that the country no longer provides equivalent

resale opportunities or 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.

(h) The carrier shall file annual international circuit status

reports as required by Sec. 43.82 of this chapter.

c 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.

(h) The carrier shall file annual international circuit status

reports as required by Sec. 43.82 of this chapter.

(i) 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 Sec. 63.12.

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) 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):

(i) Switched resold services to a non-WTO Member country where the

applicant is or is affiliated with a foreign carrier; and

(ii) 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 sufficient market power in the destination market to

affect competition adversely in the U.S. market (see Sec. 63.10(a)).

(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).

d the Commission has not determined that the foreign

carrier lacks sufficient market power in the destination market to

affect competition adversely in the U.S. market (see Sec. 63.10(a)).

(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).

(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. If at any time

the Commission finds that the country no longer provides equivalent

resale opportunities or 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.

mmission.

(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.

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;

(5) Assignment or transfer from a corporation to a wholly owned

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

controlling one;

(4) Corporate reorganization that involves no substantial change in

the beneficial ownership of the corporation;

(5) Assignment or transfer from a corporation to a wholly owned

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.

(b) 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. 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, 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.

Sec. 63.25 Special procedures for non-dominant international common

carriers.

(a) Any party that would be a non-dominant international

communications common carrier is authorized to provide facilities-based

international services, subject to Sec. 63.22, between the United

States and all international points, except that this paragraph shall

not authorize the party to provide service between the United States

and any country where an affiliated foreign carrier operates.

(a) Any party that would be a non-dominant international

communications common carrier is authorized to provide facilities-based

international services, subject to Sec. 63.22, between the United

States and all international points, except that this paragraph shall

not authorize the party to provide service between the United States

and any country where an affiliated foreign carrier operates.

(b) Any party that would be a non-dominant international

communications common carrier is authorized to provide resold

international services, subject to Sec. 63.23, between the United

States and all international points, except that this paragraph shall

not authorize the party to provide service between the United States

and any country where an affiliated foreign carrier operates.

(c) Within 30 days of commencing service pursuant to paragraph (a)

or (b), the party shall notify the Commission by letter addressed to

the Chief, International Bureau, that it has commenced providing

service pursuant to Sec. 63.25 of the Commission's rules. Such letter

shall include the applicable information and certifications described

in Sec. 63.18.

(d) Notwithstanding paragraphs (a) and (b), the Commission reserves

the right to condition or revoke the authorization of any entity for a

violation of the Commission's rules or policies, and such condition or

revocation shall be effective against all successors, transferees, or

assigns, as ordered by the Commission.

[FR Doc. 98-19638 Filed 7-23-98; 8:45 am]

BILLING CODE 6712-01-P