[Federal Register Volume 65, Number 196 (Tuesday, October 10, 2000)]
[Rules and Regulations]
[Pages 60113-60117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25980]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 63

[IB Docket No. 97-142, FCC 00-339]


Rules and Policies on Foreign Participation in the U.S. 
Telecommunications Market

AGENCY: Federal Communications Commission.

ACTION: Final rules.

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SUMMARY: This document addresses specific issues raised in petitions 
requesting clarification and reconsideration of the Commission's 
decisions in the initial Report and Order in this proceeding. This 
document also clarifies and revises certain aspects of the Commission's 
rules regarding prior notifications of foreign affiliations. This 
document also amends the rules to define ``interlocking directorates'' 
and to cross-reference the Commission's prior notification 
requirements. The final rules contain information collections subject 
to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. 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 information collections contained in the 
final rule.

EFFECTIVE DATE: Effective November 9, 2000 except for section 63.11 
which contains modified information collections that have not been 
approved by the Office of Management and Budget (OMB). The Commission 
will publish a document in the Federal Register announcing the 
effective date of that section. Written comments by the public on the 
information collection requirements are due October 24, 2000. OMB must 
submit written comments on the information collection requirements on 
or before December 11, 2000.

ADDRESSES: All comments regarding the requests for approval of the 
information collection, both regular and emergency, should be submitted 
to Judy Boley, Federal Communications Commission, Room 1-C804, 445 12th 
Street, SW, Washington, DC 20554, or via the Internet to 
[email protected]; phone 202-418-0214. In addition, comments on the 
emergency request for approval of the information collections should be 
submitted to Edward C. Springer, OMB Desk Officer, Room 10236 NEOB, 725 
17th Street, NW, Washington, DC 20503 or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Lisa Choi, Policy and Facilities 
Branch, Telecommunications Division, International Bureau, (202) 418-
1384. For additional information concerning the information collections 
contained in this document contact Judy Boley at (202) 418-0214, or 
email at [email protected]., and Edward C. Springer, OMB Desk Officer, 
Room 10236 NEOB, 725 17th Street, NW, Washington, DC 20503 or via the 
Internet to [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
on Reconsideration, FCC 00-339, adopted on September 12, 2000 and 
released on September 19, 2000. The full text of this document 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. The document is 
also available for download over the Internet at http://www.fcc.gov/Bureaus/International/Notices/2000/fcc00339.doc. The complete text of 
this document 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 document contains modified information collections subject to 
the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. 
Implementation of any modified requirements will be subject to approval 
by the Office of Management and Budget (OMB) for review under the PRA's 
emergency processing provisions. OMB, the general public, and other 
Federal agencies are invited to comment on the proposed information 
collections contained in this proceeding.

Summary of Order on Reconsideration

    1. On November 25, 1997, the Commission adopted a Report and Order 
and Order on Reconsideration (Foreign Participation Order (62 FR 64741. 
Dec. 9, 1997). The Foreign Participation Order established the 
Commission's procompetitive rules and policies regarding foreign 
participation in the U.S. telecommunications market. In light of the 
Word Trade Organization (WTO) basic Telecom Agreement and WTO Members' 
commitments to open markets, the Commission adopted rules to open 
further the U.S. market to competition from foreign companies. On 
September 12, 2000, the Commission adopted an Order on Reconsideration 
(Order) that addressed the petitions seeking clarification and 
reconsideration of the Foreign Participation Order. In this Order, the 
Commission found that its competitive safeguards and ability to attach 
additional conditions to grants of authority, in conjunction with the 
procompetitive commitments of WTO Members would reduce the danger of 
anticompetitive conduct resulting from entry of carriers from WTO 
Members into the U.S. Market.
    2. Specifically, the Commission affirmed its prior conclusion that 
it is under no obligation to impose the same entry standard with regard 
to WTO Members' participation in the U.S. telecommunications market to 
Bell Operating Company (BOC) entry into in-region interLATA services 
markets pursuant to section 271. The Commission concluded that no new 
information or arguments were presented for it to revisit the initial 
conclusion that the public interest presumption established in the 
Foreign

[[Page 60114]]

Participation Order does not apply with regard to BOC entry into in-
region interLATA markets. The Commission also noted that it has 
separately addressed the nature of its public interest analysis in its 
evaluations of BOC applications filed pursuant to section 271.
    3. The Commission affirmed, clarified, and revised the requirement 
for prior notification of controlling investments by U.S. carriers in 
foreign carriers and of controlling investments of greater than twenty-
five percent capital stock investments by foreign carriers in U.S. 
carriers. Although the Commission rejected a request to eliminate the 
prior notification requirement for U.S. carrier controlling investments 
in foreign carriers, the Commission did clarify and revise Sec. 63.11 
to address more precisely the underlying purpose for the provision and 
to reduce unnecessary regulatory burdens.
    4. Specifically, the Commission will continue to require prior 
notification of a U.S. carriers' controlling investment in a foreign 
carrier or a foreign carrier's controlling or greater than twenty-five 
percent investment in a U.S. carrier with the exception that prior 
notification is not required if one of the following is true for the 
foreign carrier: (1) the foreign carrier is one that the Commission has 
previously determined in an adjudication lacks market power in 
destination markets authorized to be served by the U.S. carrier; (2) 
the foreign carrier is a resale carrier in such markets; or (3) the 
destination markets in which the foreign carrier is authorized to 
operate are WTO Members and the authorized carrier either demonstrates 
that it should retain non-dominant classification on the newly-
affiliated routes pursuant to Sec. 63.10 or the authorized carrier 
agrees to comply with the Commission's dominant carrier safeguards on 
those routes.
    5. Authorized carriers that intend to rely on one of the exceptions 
to the prior notification rule are required to submit a certification 
with the Commission as part of its notification indicating upon which 
exception it is rely and certifying as to the factual basis for the 
qualification. In addition, the Commission modified the prior 
notification requirement so that such prior notifications must be filed 
forty-five days rather than sixty days prior to the consummation of the 
acquisition in order to respond to carriers' concerns that that sixty 
days is overly burdensome.
    6. In addition, the Commission revised the rules to provide U.S. 
carriers with the opportunity to file confidentially the information 
requested by the Commission as part of their prior notifications of 
affiliation. Carriers are permitted to request in an accompanying cover 
letter that the Commission maintain confidential treatment of the prior 
notification information for twenty days, after which date the carrier 
agrees to public treatment of such information. The Commission will 
then place the notification on pubic notice twenty-fives days prior to 
the planned consummation of the investment. The revised rule will 
provide ample opportunity for public comment while alleviating 
carriers' concerns about the time burden and difficulty of maintaining 
the confidentiality of sensitive transactions.
    7. The Commission also amended Sec. 63.11 to permit the Commission 
to classify an authorized carrier as dominant by a public notice, 
rather than by written order, in circumstances in which the authorized 
carrier agrees to abide by dominant carrier regulation on an affiliated 
route. This amendment will reduce further regulatory burdens on 
carriers and administrative burdens on the Commission.
    8. The Commission also modified the content of notifications of 
affiliation to include a statement by an authorized carrier as to 
whether the notification is subject to prior notification (including 
the date of projected closing) or post notification (including the 
actual date of closing). In order to facilitate processing of 
notifications and transfer of control or assignment applications, 
authorized carriers are required to cross-reference their applications 
and foreign carrier affiliation notifications. Similarly, with respect 
to the content of post-notifications of affiliation, carriers may not 
notify the Commission of a proposed affiliation with a foreign carrier 
in the context of a transfer of control or initial Sec. 63.18 
application in order to discharge their notification obligations under 
Sec. 63.11. The Commission revised the rules to clarify that carriers 
are responsible for the continuing accuracy of the contents of their 
prior notifications during the forty-five day notice period and are 
responsible on an on-going basis for complying with the requirement for 
notifying the Commission of their affiliations with foreign carriers.
    9. In light of recent rule changes in other proceedings, the 
Commission narrowed the definition of ``interlocking directorates'' as 
those persons having any of the duties ordinarily performed by a 
director, president, vice president, secretary, treasurer, or other 
officer of the carrier. In addition, authorized carriers are required 
to identify only their interlocking directorates with the foreign 
carriers that are the subject of the notifications.
    10. The Commission clarified and revised the provision in 
Sec. 63.11(e)(2) prohibiting the consummation of an investment pending 
Commission approval. Authorized carriers that acquire affiliations 
subject to the revised Sec. 63.11 with carriers in non-WTO Members are 
required to demonstrate that the foreign carrier lacks market power or 
is a resale carrier, or to make an ECO showing in order to continue to 
operate on the applicable route. Otherwise, an authorized carrier risks 
having its authorization revoked.
    11. The Commission found moot a request to reconsider its decision 
regarding the ``No Special Concessions'' rule and discontinue its 
practice of placing a special condition on BOC affiliate section 214 
authorizations with respect to ``grooming arrangements'' (arrangements 
to terminate traffic in particular geographic regions). The Commission 
stated that the rule changes adopted in the ISP Reform Order (64 FR 
34734, June 29, 1999) addressed this issue.
    12. The Commission also denied the request to reconsider the 
language in the Foreign Participation Order referring to the 
Commission's ability to designate cable operators as common carriers. 
The Commission found that this proceeding was not the appropriate forum 
to address this concern. Rather, the Commission noted that the 
regulatory distinction between common carrier and non-common carrier 
submarine cables is at issue in the Submarine Cable Streamlining 
proceeding (65 FR 411613, June 6, 2000).
    13. The Commission also rejected a request to modify its rebuttable 
presumption regarding the market power of a foreign carrier from a WTO 
Member. The Commission concluded that it had fully considered and 
rejected a similar proposal in the Foreign Participation Order.
    14. In addition, the Commission addressed issues regarding dominant 
carrier safeguards for foreign-affiliated U.S. carriers. First, the 
Commission declined to remove the dominant carrier safeguards that 
apply to each U.S. carrier having an affiliation with a carrier that 
possesses market power on the route. In the Foreign Participation 
Order, the Commission adopted a narrowly-tailored dominant carrier 
framework designed to address specific concerns of anticompetitive 
behavior while limiting the regulatory burden imposed generally on 
foreign-affiliated U.S. carriers. These policies and

[[Page 60115]]

safeguards also were consistent with the United States' GATS 
obligations. The Commission found that no new arguments were presented 
for it to reconsider this issue. Second, the Commission reaffirmed its 
decision to continue to allow dominant foreign-affiliated carriers to 
file tariffs on one-day's notice and add or discontinue circuits on 
foreign-affiliated routes without prior approval. The Commission held 
that it had fully considered and dismissed these arguments in the 
Foreign Participation Order.
    15. The Commission also denied a request to extend its deregulatory 
approach regarding section 310(b)(4) requests to the treatment of 
broadcast licenses. The Commission found that this matter was not at 
issue in the Foreign Participation Order, and therefore, this 
proceeding was not the proper forum to revisit this issue.
    16. The Commission also rejected a request to broaden the 
application of the Benchmarks Order (62 FR 45758, August 29, 1997). 
Specifically, the Commission was asked to impose a condition on 
switched resale authorizations to serve foreign-affiliated markets on 
the foreign carrier offering U.S. authorized carriers a settlement rate 
for the affiliated route that is at or below the relevant benchmark 
rate. The Commission found that it had fully considered and reject this 
issue in the Foreign Carrier Participation Order. The Commission also 
noted that the Benchmarks Reconsideration Order (64 FR 47699, September 
1, 1999) further narrowed the section 214 condition on facilities-based 
carriers so that it currently applies only to the provision of 
facilities-based switched and private line service to foreign-
affiliated markets where the foreign affiliate possesses market power.
    17. Finally, the Commission rejected the request that it reconsider 
that aeronautical enroute service is a basic telecommunications 
service. The Commission stated that although it has treated 
aeronautical enroute and fixed services as private services, they still 
fall within the class of services covered by U.S. commitments in the 
WTO. Thus, the Commission reaffirmed its conclusion that some 
aeronautical enroute and fixed services are basic telecommunications 
services under the WTO Basic Telecom Agreement.

Procedural Matters

    18. Final Regulatory Flexibility Certification. The purposes of 
this proceeding are to adopt a liberalized standard for participation 
by foreign and foreign-affiliated entities in the U.S. 
telecommunications market, 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 foreign carrier affiliation notifications. In most 
cases, the notifications will be filed after the consummation of the 
investment resulting in a foreign carrier affiliation. We anticipate 
that the revisions we adopt here will expand the ability of U.S. 
carriers to reap economic benefits by taking advantage of new 
opportunities in the international telecommunications marketplace.
    19. The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., 
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.'' The rule changes 
adopted in this order only affect the timing of the submission of 
foreign carrier affiliation notifications. These changes do not impose 
additional compliance burdens on small entities nor do they alter the 
small entities possibly affected by the rules published in the Foreign 
Participation Order. The rules adopted in this order would not have a 
detrimental impact on small entities. In fact, we anticipate that the 
rule changes we adopt here will reduce regulatory and procedural 
burdens on small entities. Therefore, we certify, pursuant to section 
605(b) of the RFA, that the rules adopted herein will not have a 
significant economic impact on a substantial number of small entities.
    20. The Commission will send a copy of the Order on 
Reconsideration, including a copy of this final certification, in a 
report to congress pursuant to SBREFA (5 U.S.C. 801(a)(1)(A)). In 
addition, the Order on Reconsideration and this certification will be 
sent to the Chief Counsel for Advocacy of the Small Business 
Administration, and will be published in the Federal Register.
    21. Paperwork Reduction Act Analysis. The Commission, as part of 
its continuing effort to reduce paperwork burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on the following information collection, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. An agency may not conduct or 
sponsor a collection of information unless it displays a currently 
valid control number. No person shall be submit to any penalty for 
failing to comply with a collection of information subject to the 
Paperwork Reduction Act that does not display a valid control number. 
Comments on emergency request for approval of information collections 
are due on or before October 24, 2000. Public and agency comments on 
the regular request for approval of the information collections are due 
proposed and/or modified information collections are due on or before 
December 11, 2000.
    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 estimate; (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 Control Number: 3060-0686.
    Title: Streamlining the International Section 214 Authorization 
Process and Tariff Requirements.
    Form Number: N/A.
    Type of Review: Revisions to existing collection.
    Respondents: Business and other for-profit entities.
    Number of Respondents: 60.
    Number of Responses: 1.
    Estimated Time Per Response: 8 hours.
    Frequency of Response: On Occasion.
    Total Annual Burden: 480 hours (50% of burden estimated to be 
contracted to outside assistance).
    Total Annual Costs: $36,000.
    Needs and Uses: The information will be used by the Commission to 
assess the potential impact of a U.S. carrier's acquisition or 
affiliation with a foreign carrier. The information will enable the 
Commission to determine what safeguards may need to apply or what other 
Commission action may be necessary with regard to the authorized 
carrier's section 214 authorization to serve the affiliated route. The 
information collections are necessary for the Commission to protect the 
public interest from the harm and competitive distortion that could 
arise in the U.S. market from the presence of a new controlling foreign 
affiliation. In addition, the Commission must maintain records that 
accurately reflect a party or parties that control a carrier's 
operations, particularly for purposes of

[[Page 60116]]

enforcing the Commission's rules and policies.

Ordering Clauses

    22. Pursuant to Sections 1, 2, 4(i), 201, 203, 205, 214, 303(r), 
309, and 310 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 152, 154(i), 201, 203, 205, 214, 303(r), 309, 310 and Parts 43 and 
63 of the Commission's rules, 47 CFR 43, 63, that the Order on 
Reconsideration in IB Docket No. 97-142 is adopted.
    23. 47 CFR Part 63 is amended as set forth in the rule changes, 
effective November 9, 2000 except for section 63.11 which contains 
modified information collections that have not been approved by the 
Office of Management and Budget (OMB). The Commission will publish a 
document in the Federal Register announcing the effective date of that 
section. Written comments by the public on the information collection 
requirements are due October 24, 2000. OMB must submit written comments 
on the information collection requirements on or before December 11, 
2000.
    24. The Petitions for Reconsideration filed by ARNIC, BellSouth, 
KDD, MCI, PanAmSat, SBC, and Sidak are denied, as described herein.
    25. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Order on Reconsideration, 
including the Final Regulatory Flexibility Certification, to the Chief 
Counsel for Advocacy of the Small Business Administration.
    26. The policies, rules, and requirements, established in this 
decision shall take effect thirty days after publication in the Federal 
Register except for the rules in section 63.11 which contains modified 
information collections that have not been approved by the Office of 
Management and Budget (OMB).

List of Subjects in 47 CFR Part 63.

    Communications common carriers, reporting and recordkeeping 
requirements,

Federal Communications Commission.
William F. Caton,
Deputy Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR Part 63 as follows:

PART 63--EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE, 
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE B COMMON CARRIERS; AND 
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS

    1. The authority citation for part 63 continues to read as follows:

    Authority: Section 1, 4(I), 4(j), 10, 11, 201-205, 214, 218, 403 
and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless 
otherwise noted.

    2. Section 63.09 is amended by adding paragraph (g) to read as 
follows:


Sec. 63.09  Definitions applicable to international Section 214 
authorizations.

* * * * *
    (g) As used in this part, the term:
    (1) Interlocking directorates shall mean persons or entities who 
perform the duties of ``officer or director'' in an authorized U.S. 
international carrier or an applicant for international Section 214 
authorization who also performs such duties for any foreign carrier.
    (2) Officer or director shall include the duties, or any of the 
duties, ordinarily performed by a director, president, vice president, 
secretary, treasurer, or other officer of a carrier.
* * * * *

    3. Section 63.11 is revised 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.

    If a carrier is authorized by the Commission (``authorized 
carrier'') to provide service between the United States and a 
particular foreign destination market and it becomes, or seeks to 
become, affiliated with a foreign carrier that is authorized to operate 
in that market, then its authorization to provide that international 
service is conditioned upon notifying the Commission of that 
affiliation.
    (a) Affiliations requiring prior notification: Except as provided 
in paragraph (b) of this section, the authorized carrier must notify 
the Commission, pursuant to this section, forty-five days before 
consummation of either of the following types of transactions:
    (1) Acquisition by the authorized carrier, or by any entity that 
controls the authorized carrier, or by any entity that directly or 
indirectly owns more than twenty-five percent of the capital stock of 
the authorized carrier, of a controlling interest in a foreign carrier 
that is authorized to operate in a market that the carrier is 
authorized to serve; or
    (2) Acquisition of a direct or indirect interest greater than 
twenty-five percent, or of a controlling interest, in the capital stock 
of the authorized carrier by a foreign carrier that is authorized to 
operate in a market that the authorized carrier is authorized to serve, 
or by an entity that controls such a foreign carrier.
    (b) Exceptions.
    (1) Notwithstanding paragraph (a) of this section, the notification 
required by this section need not be filed before consummation, and may 
instead be filed pursuant to paragraph (c) of this section, if either 
of the following is true with respect to the named foreign carrier 
regardless of whether that foreign carrier is authorized to operate in 
a World Trade Organization (WTO) or non-WTO Member:
    (i) The Commission has previously determined in an adjudication 
that the foreign carrier lacks market power in that destination market 
(for example, in an international section 214 application or a 
declaratory ruling proceeding); or
    (ii) The foreign carrier owns no 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).
    (2) In the event paragraph (b)(1) of this section cannot be 
satisfied, notwithstanding paragraph (a) of this section, the 
notification required by this section need not be filed before 
consummation, and may instead be filed pursuant to paragraph (c) of 
this section, if the authorized carrier certifies that the named 
foreign carrier is authorized to operate in a WTO Member and provides 
certification to satisfy either of the following:
    (i) The authorized carrier demonstrates that it is entitled to 
retain non-dominant classification on its newly affiliated route 
pursuant to Sec. 63.10; or
    (ii) The authorized carrier agrees to comply with the dominant 
carrier safeguards contained in Sec. 63.10 effective upon the 
acquisition of the affiliation. See Sec. 63.10.
    (c) Notification after consummation. Any authorized carrier that 
becomes affiliated with a foreign carrier and has not previously 
notified the Commission pursuant to this section shall notify the 
Commission within thirty days after consummation of the acquisition.

    Example 1 to paragraph (c). Acquisition by an authorized carrier 
(or by any entity that

[[Page 60117]]

directly or indirectly controls, is controlled by, or is under 
direct or indirect common control with the authorized carrier) of a 
direct or indirect interest in a foreign carrier that is greater 
than twenty-five percent but not controlling is subject to paragraph 
(c) but not to paragraph (a).
    Example 2 to paragraph (c). Notification of an acquisition by an 
authorized carrier of a hundred percent interest in a foreign 
carrier may be made after consummation, pursuant to paragraph (c), 
if the foreign carrier operates only as a resale carrier.
    Example 3 to paragraph (c). Notification of an acquisition by a 
foreign carrier from a WTO Member of a greater than twenty-five 
percent interest in the capital stock of an authorized carrier may 
be made after consummation, pursuant to paragraph (c) of this 
section, if the authorized carrier demonstrates in the post-
notification that it qualifies for non-dominant classification on 
the affiliated route or agrees to comply with dominant carrier 
safeguards on the affiliated route effective upon the acquisition of 
the affiliation.

    (d) Cross-Reference. In the event a transaction requiring a foreign 
carrier notification pursuant to this section also requires a transfer 
of control or assignment application pursuant to Sec. 63.18(e)(3), the 
foreign carrier notification shall reference in the notification the 
transfer of control or assignment application and the date of its 
filing. See Sec. 63.18(e)(3).
    (e) Contents of notification. The notification shall certify the 
following information: (1) The name of the newly affiliated foreign 
carrier and the country or countries in which it is authorized to 
provide telecommunications services to the public;
    (2) Which, if any, of those countries is a Member of the World 
Trade Organization;
    (3) What services the authorized carrier is authorized to provide 
to each named country, and the FCC file numbers under which each such 
authorization was granted;
    (4) Which, if any, of those countries the authorized carrier serves 
solely through the resale of the international switched services of 
unaffiliated U.S. facilities-based carriers;
    (5) The name, address, citizenship, and principal business of any 
person or entity that directly or indirectly owns at least ten (10) 
percent of the equity of the authorized carrier, and the percentage of 
equity owned by each of those entities (to the nearest one percent);
    (6) A certification that the authorized carrier has not agreed to 
and will not in the future agree 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
    (7) Interlocking directorates. The name of any interlocking 
directorates, as defined in Sec. 63.09(g), with each foreign carrier 
named in the notification. See Sec. 63.09(g).
    (8) With respect to each foreign carrier named in the notification, 
a statement as to whether the notification is subject to paragraph (a) 
or (c) of this section. In the case of a notification subject to 
paragraph (a) of this section, the authorized carrier shall include the 
projected date of closing. In the case of a notification subject to 
paragraph (c) of this section, the authorized carrier shall include the 
actual date of closing.
    (9) If an authorized carrier relies on an exception in paragraph 
(b) of this section, then a certification as to which exception the 
foreign carrier satisfies and a citation to any adjudication upon which 
the carrier is relying. Authorized carriers relying upon the exceptions 
in paragraph (b)(2) of this section must make the required certified 
demonstration in paragraph (b)(2)(i) of this section or the certified 
commitment to comply with dominant carrier safeguards in paragraph 
(b)(2)(ii) of this section in the notification required by paragraph 
(c) of this section.
    (f) In order to retain non-dominant status on each newly affiliated 
route, the authorized carrier should demonstrate that it qualifies for 
non-dominant classification pursuant to Sec. 63.10. See Sec. 63.10.
    (g) Procedure. After the Commission issues a public notice of the 
submissions made under this section, interested parties may file 
comments within fourteen days of the public notice.
    (1) If the Commission deems it necessary at any time before or 
after the deadline for submission of public comments, the Commission 
may impose dominant carrier regulation on the authorized carrier for 
the affiliated routes based on the provisions of Sec. 63.10. See 
Sec. 63.10.
    (2) In the case of a prior notification filed pursuant to paragraph 
(a) of this section in which the foreign carrier is authorized to 
operate in a non-WTO Member, the authorized carrier must demonstrate 
that it continues to serve the public interest for it to operate on the 
route for which it proposes to acquire an affiliation with the non-WTO 
foreign carrier by making the required showing in Secs. 63.18(k)(2) or 
(3) to the Commission. If the authorized carrier is unable to make the 
required showing in Secs. 63.18(k)(2) or (3) or is notified that the 
affiliation may otherwise harm the public interest pursuant to the 
Commission's policies and rules, then the Commission may impose 
conditions necessary to address any public interest harms or may 
proceed to an immediate authorization revocation hearing. See 
Secs. 63.18(k)(2) and (3).
    (h) All authorized carriers are responsible for the continuing 
accuracy of information provided pursuant to this section for a period 
of forty-five days after filing. During this period if the information 
furnished is no longer accurate, the authorized carrier shall as 
promptly as possible, and in any event within ten days, unless good 
cause is shown, file with the Secretary in duplicate a corrected 
notification referencing the FCC file numbers under which the original 
certification was provided, except that the carrier shall immediately 
inform the Commission if at any time, not limited to the forty-five 
days, the representations in the ``special concessions'' certification 
provided under paragraph (e)(6) of this section or Sec. 63.18(n) are no 
longer true. See Sec. 63.18(n).
    (i) A carrier that files a prior notification pursuant to paragraph 
(a) of this section may request confidential treatment of its filing, 
pursuant to Sec. 0.459 of this chapter, for the first twenty days after 
filing. Such a request must be made prominently in a cover letter 
accompanying the filing.
* * * * *

    4. Section 63.18 is amended by adding two new sentences immediately 
preceding the last sentence of paragraph (e)(3) to read as follows:


Sec. 63.18  Contents of applications for international common carriers.

* * * * *
    (e) * * *
    (3) * * * In the event the transaction requiring a transfer of 
control or assignment application also requires the filing of a foreign 
carrier affiliation notification pursuant to Sec. 63.11, the applicant 
shall reference in the application the foreign carrier affiliation 
notification and the date of its filing. See Sec. 63.11. * * *
* * * * *

[FR Doc. 00-25980 Filed 10-06-00; 8:45 am]
BILLING CODE 6712-10-P