[Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
[Rules and Regulations]
[Pages 19057-19067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9480]


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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