[Federal Register Volume 59, Number 125 (Thursday, June 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15878]


[[Page Unknown]]

[Federal Register: June 30, 1994]


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FEDERAL COMMUNICATIONS COMMISSION
[DA 94-636]

 

Direct Packet Data Service Between the United States and Cuba

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Commission has authorized Sprint Communications Company 
L.P. to provide direct packet data service between the United States 
and Cuba in accordance with the provisions of the Cuban Democracy Act. 
This will allow Sprint to help meet the large demand for direct 
telecommunications services between the United States and Cuba. Under 
the guidelines established by the Department of State, Sprint is to 
submit reports indicating the numbers of circuits activated by 
facility, on or before June 30, and December 31 of each year, and on 
the one-year anniversary of this notification in the Federal Register.

EFFECTIVE DATE: June 30, 1994.

FOR FURTHER INFORMATION CONTACT:
Troy F. Tanner, Attorney, Common Carrier Bureau, (202) 632-7265.

SUPPLEMENTARY INFORMATION: 

Sprint Communications Company L.P.

[File No. I-T-C-94-238]
Application for authority to lease and operate facilities for the 
provision of direct packet data service between the United States and 
Cuba

Order and Authorization

Adopted: June 6, 1994; Released: June 22, 1994
By the Chief, International Facilities Division:

    1. The Commission has under consideration the above-captioned 
application filed by Sprint Communications Company L.P. (``Sprint'') 
requesting authority pursuant to Section 214 of the Communications Act 
of 1934, as amended, to establish channels of communication between the 
United States and Cuba for the provision of direct packet data service. 
The application was placed on the Commission's public notice and no 
comments were received.
    2. Sprint proposes to provide international packet data service 
between the U.S. and Cuba via the INTELSAT satellite located at 
335 deg. E.L. using appropriately licensed existing earth station 
facilities. Specifically, Sprint requests authority to lease from 
Comsat and operate one 2-Mbps digital satellite circuit between the 
Orion international Standard A earth station located at Shenandoah, 
Virginia and the theoretical midpoint of the INTELSAT AOR satellite 
connecting with matching facilities provided by INTERTEL S.A. 
(``INTERTEL'') of Cuba. Sprint proposes to connect its operating center 
in New York, New York, to the Orion earth station using Sprint's own 
facilities. Sprint states that it has already entered into an operating 
agreement with INTERTEL for the establishment of direct packet data 
service between the United States and Cuba. Under the terms of its 
agreement, INTERTEL and Sprint have agreed to a 50/50 split of a $5.50 
per kilosegment and $5.50 per hour accounting rate for packet data 
traffic. Sprint states this rate is consistent with U.S. policy 
guidelines.\1\ Sprint states that it will initiate service within one 
year.
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    \1\Sprint explains that packet data traffic is measured based on 
a unit known as a ``kilosegment.'' Sprint states that on a typical 
dial packet data transmission, two kilosegments are transferred per 
hour. On a typical dedicated packet data transmission, four 
kilosegments are transferred per hour. Therefore, for a typical dial 
packet data transmission, the total accounting rate would be 
approximately $16.50 per hour (27.5 cents per minute), including 
$5.50 for the hour of time and $11.00 for the two kilosegments of 
transmitted packet data. For a typical dedicated packet data 
transmission, the total accounting rate would be approximately 
$27.50 per hour (46 cents per minute), including $5.50 for the hour 
of time and $22.00 for the four kilosegments of transmitted packet 
data.
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    3. Sprint states that the public interest would be served by a 
grant of its application because it will result in the rapid 
introduction of new lines of telecommunications between the United 
States and Cuba. Sprint states that an immediate and large demand 
exists for direct telecommunications services between the United States 
and Cuba, and Sprint's proposed service will help meet that demand 
within the regulatory framework established by the Cuban Democracy Act.
    4. In a letter dated July 22, 1993, the U.S. Department of State 
informed the Commission of the Executive Branch's general policy 
guidelines for implementation of the telecommunications provisions of 
the Cuban Democracy Act, which provides that ``telecommunication 
services between the United States and Cuba shall be permitted.''\2\ 
Among the policy guidelines are the following requirements: (1) the 
proposals must have the potential to be operational within a year; (2) 
settlements must not be more favorable to Cuba than the current 50/50 
split of the $1.20 per minute accounting rate; (3) proposals must be 
limited to equipment and services necessary to deliver a signal to 
Cuba; (4) proposals must utilize modes of communications already in 
place between the U.S. and Cuba; and (5) carriers shall report the 
number of circuits activated by facility on June 30 and December 31 of 
each year and on the one-year anniversary of the notification by the 
FCC in the Federal Register.
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    \2\Letter dated July 22, 1993, from Richard C. Beaird, Acting 
U.S. Coordinator and Director, Bureau of International 
Communications and Information Policy, U.S. Department of State to 
FCC Chairman James H. Quello.
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    5. Upon consideration of Sprint's application, we find that a grant 
of its application will serve the public interest subject to the 
conditions set forth below. Sprint's application is consistent with the 
Executive Branch's general guidelines set forth in the Department of 
State's letter. Sprint states that it will initiate service within one 
year, and expects to initiate service shortly after all requisite 
regulatory approvals have been obtained. Sprint's proposed use of 
INTELSAT facilities and appropriately licensed existing earth station 
facilities satisfies the requirements that facilities already be in 
existence and be limited to equipment and services necessary to deliver 
a signal to Cuba.
    6. With respect to Sprint's proposed 50/50 split of a $5.50 per 
kilosegment and $5.50 per hour accounting rate for packet data traffic 
between the United States and Cuba, the Department of State in a 
follow-up letter dated May 23, 1994, stated it has no objection to our 
approval so long as we determine that this proposed rate does not 
exceed the 50/50 split of the $1.20 accounting rate required under the 
guidelines.\3\ We find that the proposed accounting rate is within the 
Department of State's guidelines because both the approximately 
27.5 cents per minute accounting rate for a typical dial packet data 
transmission, and the approximately 46 cents per minute accounting rate 
for a typical dedicated packet data transmission\4\ is well below the 
$1.20 per minute accounting rate approved for voice services.
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    \3\Letter dated May 23, 1994, from Richard C. Beaird, Senior 
Deputy U.S. Coordinator, Bureau of International Communications and 
Information Policy, U.S. Department of State, to FCC Chairman Reed 
Hundt.
    \4\See supra note 1.
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    7. Accordingly, It Is Ordered that application File No. I-T-C-94-
238 IS GRANTED and Sprint Communications Company, L.P. is authorized 
to:
    a. lease from Comsat and operate one 2-Mbps digital satellite 
circuit between the Orion international Standard A earth station 
located at Shenandoah, Virginia and the INTELSAT AOR satellite located 
at 335 deg. E.L. connecting with matching facilities furnished by 
Sprint's correspondent in Cuba, INTERTEL S.A. (the international 
division of EMTELCUBA);
    b. lease from Orion and operate necessary earth segment facilities 
at Orion's earth station at Shenandoah, Virginia;
    c. operate necessary connecting facilities between its operating 
center in New York and Orion's earth station at Shenandoah, Virginia; 
and
    d. use the above facilities for the provision of direct packet data 
service between the U.S. and Cuba subject to the conditions set forth 
herein.
    8. It Is Further Ordered that the service authorized herein must be 
implemented within one year from the date of release of this order.
    9. It Is Further Ordered that Sprint and INTERTEL shall split 50/50 
the $5.50 per hour and $5.50 per kilosegment accounting rate for this 
service.
    10. It Is Further Ordered that the applicant shall submit reports 
on or before June 30, and December 31 of each year, and on the one-year 
anniversary of the notification of the grant of this application in the 
Federal Register indicating the numbers of circuits activated by 
facility.
    11. It Is Further Ordered that this authorization is subject to the 
applicant's obtaining all necessary licenses and authorizations from 
the Departments of Treasury and Commerce.
    12. It Is Further Ordered that this order is subject to revocation 
without a hearing in the event the Department of State or the Federal 
Communications Commission determines that the continuation of 
communications between the U.S. and Cuba is no longer in the national 
interest.
    13. It Is Further Ordered that, pursuant to Section 203 of the 
Communications Act, 47 U.S.C. Sec. 203, and Part 61 of the Commission's 
Rules, 47 CFR Part 61, Sprint shall file and have in effect a tariff 
for the service authorized in this order before offering services to 
the public.
    14. It Is Further Ordered that Sprint shall file copies of any 
operating agreements entered into by itself or its parent/affiliates 
with its correspondents within 30 days of their execution, and shall 
otherwise comply with the filing requirements contained in Sec. 43.51 
of the Commission's Rules, 47 CFR 43.51.
    15. It Is Further Ordered that Sprint shall file annual reports of 
overseas telecommunications traffic required by Section 43.61 of the 
Commission's Rules, 47 CFR 43.61.
    16. It Is Further Ordered that Sprint shall file a Section 214 
application for any additional circuits it proposes to establish 
between the U.S. and Cuba.
    17. Acceptance of this authorization shall be deemed acceptance of 
the conditions set forth herein.
    18. This authorization is issued pursuant to Section 0.291 of the 
Commission's Rules and is effective upon release. Petitions for 
reconsideration under Sec. 1.106 or applications for review under 
Sec. 1.115 of the Commission's Rules may be filed within 30 days of 
public notice of this order (see Sec. 1.4(b)(2)).

Federal Communications Commission.
George S. Li,
Chief, International Facilities Division, Common Carrier Bureau.
[FR Doc. 94-15878 Filed 6-29-94; 8:45 am]
BILLING CODE 6712-01-M