[Federal Register Volume 59, Number 199 (Monday, October 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25543]


[[Page Unknown]]

[Federal Register: October 17, 1994]


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FEDERAL COMMUNICATIONS COMMISSION
[DA 94-1093]

 

Cuban Democracy Act

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Commission has authorized IDB WorldCom Services, Inc. to 
provide direct packet switched data service between the United States 
and Cuba in accordance with the provisions of the Cuban Democracy Act. 
This authorization will allow IDB 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, IDB is 
required 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: October 17, 1994.

FOR FURTHER INFORMATION CONTACT:
Kerry E. Murray, Attorney, Common Carrier Bureau, (202) 418-1494.

SUPPLEMENTARY INFORMATION: 

    In the Matter of: IDB WORLDCOM SERVICES, INC.--Application for 
authority to lease and operate facilities for the provision of 
direct packet switched data service between the United States and 
Cuba.

[File No. I-T-C-94-440]

Order and Authorization

    Adopted: September 29, 1994.

    By the Chief, International Facilities Division: 1. The Commission 
has under consideration the above-captioned application filed by IDB 
WorldCom Service, Inc. (``IDB'') 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 switched data service. The application was 
placed on the Commission's public notice and no comments were received.
    2. IDB proposes to provide international packet switched data 
service between the United States and Cuba via the INTELSAT satellite 
located at 325 deg. E.L., using appropriately licensed existing earth 
station facilities. Specifically, IDB requests authority to lease from 
Comsat and operate one 4 kHz analog SCPC circuit between an authorized 
earth station located in the United States and the theoretical midpoint 
of the INTELSAT AOR satellite connecting with matching facilities 
provided by INTERTEL S.A. (``INTERTEL'') of Cuba. IDB proposes to 
acquire and operate facilities to connect its operating center in New 
York, New York, to the U.S. earth station. IDB 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 IDB have 
agreed to a 50/50 split of a $5.50 per kilosegment and $5.50 per hour 
accounting rate for packet data traffic. IDB states this rate is 
consistent with U.S. policy guidelines.\1\ IDB states that it will 
initiate service within one year.
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    \1\In Sprint Communications, L.P., I-T-C-94-238, DA94-636, 9 FCC 
Rcd 2827 (1994), it was noted that packet data traffic is measured 
based on a unit known as a ``kilosegment.'' On a typical dial packet 
data transmission, two kilosegments are transferred per hour. 
Likewise, 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. IDB states that the public interest would be served by a grant 
of its application because it will result in an expanded choice of 
carriers offering telecommunications service between the United States 
and Cuba. IDB states such competition will spur innovation and 
efficiency, lead to lower-priced, higher-quality service, and stimulate 
customer demand and usage. Further, IDB states that the grant of its 
application will result in the expansion of direct telecommunications 
service between the United States and Cuba.
    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 
Acting FCC Chairman James H. Quello.
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    5. The Commission recently granted the application of Sprint 
Communications Company, L.P. to provide packet data services between 
the United States and Cuba pursuant to the same accounting rate as 
proposed by IDB.\3\ In particular, the Commission found that Sprint's 
application was consistent with the Executive Branch's general 
guidelines set forth in the Department of State's letter dated July 22, 
1993.
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    \3\See Sprint Communications Company, L.P., 9 FCC Rcd 2827 
(1994).
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    6. Upon consideration of IDB's application, we find that a grant of 
its application will serve the public interest subject to the 
conditions set forth below. IDB's application is consistent with the 
Executive Branch's general guidelines set forth in the Department of 
State's letter. IDB states that it will initiate service within one 
year, and expects to initiate service shortly after all requisite 
regulatory approvals have been obtained. IDB'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.
    7. With respect to IDB'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 indicated 
in a follow-up letter dated May 23, 1994 that it has no objection to 
our approval so long as the proposed rate does not exceed the 50/50 
split of the $1.20 accounting rate required under the guidelines.\4\ 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\5\ is well below the $1.20 per 
minute accounting rate approved for voice services.
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    \4\Letter dated May 23, 1994, from Richard C. Beaird, Acting 
U.S. Coordinator and Director, Bureau of International 
Communications and Information Policy, U.S. Department of State to 
Acting FCC Chairman James H. Quello.
    \5\See supra note 1.
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    8. Accordingly, It is Ordered that application File No. I-T-C-94-
440 Is Granted and IDB WorldCom Services, Inc. is authorized to:
    a. lease from Comsat and operate one 4 kHz analog SCPS circuit 
between an appropriately licensed existing international earth station 
located in the United States and the INTELSAT AOR satellite located at 
325 deg. E.L. connecting with matching facilities furnished by IDB's 
correspondent in Cuba, INTERTEL S.A. (the international division of 
EMTELCUBA);
    b. acquire and operate necessary earth segment facilities located 
in the United States;
    c. acquire and operate necessary connecting facilities between its 
operating center in New York and a U.S. earth station; and
    d. use the above facilities for the provision of direct packet 
switched data service between the United States and Cuba subject to the 
conditions set forth herein.
    9. It is further ordered That the service authorized herein must be 
implemented within one year from the date of release of this order.
    10. It is further ordered That IDB and INTERTEL shall split 50/50 
the $5.50 per hour and $5.50 per kilosegment accounting rate for this 
service.
    11. 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.
    12. 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.
    13. 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 United States and Cuba is no longer in the 
national interest.
    14. It is further ordered That, pursuant to Section 203 of the 
Communications Act, 47 U.S.C. 203, and Part 61 of the Commission's 
Rules, 47 CFR Part 61, IDB shall file and have in effect a tariff for 
the service authorized in this order before offering services to the 
public.
    15. It is further ordered That IDB 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 Section 
43.51 of the Commission's Rules, 47 CFR 43.51.
    16. It is further ordered That IDB shall file annual reports of 
overseas telecommunications traffic required by Section 43.61 of the 
Commission's Rules, 47 CFR 43.61.
    17. It is further ordered That IDB shall file a Section 214 
application for any additional circuits it proposes to establish 
between the United States and Cuba.
    18. Acceptance of this authorization shall be deemed acceptance of 
the conditions set forth herein.
    19. This authorization is issued pursuant to Section 0.291 of the 
Commission's Rules and is effective upon release. Petitions for 
reconsideration under Section 1.106 or applications for review under 
Section 1.115 of the Commission's Rules may be filed within 30 days of 
public notice of this order (see Section 1.4(b)(2)).

Federal Communications Commission.
George S. Li,
Chief, International Facilities Division, Common Carrier Bureau.
[FR Doc. 94-25543 Filed 10-14-94; 8:45 am]
BILLING CODE 6712-01-M