[Federal Register Volume 65, Number 245 (Wednesday, December 20, 2000)]
[Proposed Rules]
[Pages 79795-79800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32202]



[[Page 79795]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 43 and 63

[IB Docket No. 00-231, FCC 00-407]


2000 Biennial Regulatory Review, Amendment of Parts 43 and 63 of 
the Commission's Rules

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rule making.

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SUMMARY: This document solicits comments on proposed changes to several 
of the rules relating to international telecommunications services. The 
Commission initiated this proceeding to determine what rules could be 
modified or eliminated in light of competition in international 
telecommunications services. This proceeding is part of the 
Commission's year 2000 biennial regulatory review. The Commission 
believes that these proposals will remove unnecessary burdens on the 
public and the agency.

DATES: Comments are due on or before January 24, 2001, and reply 
comments are due on or before February 27, 2001.

ADDRESSES: Federal Communications Commission, Secretary, 445 12th 
Street, SW., Room TW-B204F, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: David Krech, International Bureau, 
(202) 418-1460.

SUPPLEMENTARY INFORMATION:
    1. This is a summary of the Commission's Notice of Proposed Rule 
Making (NPRM), FCC 00-407, adopted on November 13, 2000, and released 
on November 30, 2000. The full text of this document is available for 
inspection and copying during normal business hours in the Office of 
Media Relations, Reference Operations Division, (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//fccI00407.doc. 
The complete text of this document also may be purchased from the 
Commission's copy contractor, International Transcription Service, 
Inc., 1231 20th Street, NW., Washington, DC 20036, (202) 857-3800.
    2. This NPRM contains proposed information collections subject to 
the Paperwork Reduction Act of 1995 (PRA). It will be submitted to the 
Office of Management and Budget (OMB) for review under the PRA. OMB, 
the general public, and other Federal agencies will be invited to 
comment on the proposed information collections contained in this 
proceeding.

Summary of Notice of Proposed Rulemaking

    3. On November 13, 2000, the Commission adopted a Notice of 
Proposed Rulemaking (NPRM) to determine whether it should amend and 
clarify several of its rules relating to international 
telecommunications services. The Commission initiated this proceeding 
in response to the Telecommunications Act of 1996, which requires the 
Commission to review all regulations that apply to operations or 
activities of any provider of telecommunications service and to repeal 
or modify any regulation it determines to be no longer necessary in the 
pubic interest. The Commission solicits comments on all of the 
proposals and tentative conclusions contained in the NPRM.
    4. Section 63.24 sets out the procedures for review of pro forma 
assignments and transfers of control of authorizations to provide 
international telecommunications service. The Commission has found that 
Sec. 63.24 does not explicitly address many of the types of 
transactions that should be treated as pro forma. Thus, the Commission 
proposes to amend the procedures for review of assignments and 
transfers of control of international service authorizations to match 
more closely those procedures used for other service authorizations, 
particularly Commercial Mobile Radio Services (CMRS).
    5. Currently there are two rules addressing assignments and 
transfers of control of international Section 214 authorizations. The 
Commission believes that the current regulatory structure may not be 
sufficiently flexible for corporate transactions that do not fall into 
one of the existing categories but should be treated as pro forma. The 
NPRM solicits comment on the proposals to amend the rules to allow more 
flexibility to applicants in structuring transactions and provide 
greater clarity to authorized international carriers regarding 
assignments and transfers of control.
    6. There has been a steady increase in the number of transactions 
involving authorizations for different services and requiring intra-
agency approval, many of which involve both international Section 214 
authorizations and wireless authorizations. Thus, the Commission 
proposes to modify and consolidate its current rules on assignments and 
transfers of control of international Section 214 authorizations so 
that the new rule more closely tracks the procedures applicable to 
CMRS. The NPRM seeks comment on this proposal.
    7. Currently, Sec. 1.948 governs CMRS's assignments and transfers 
of control of authorization and provides that a change from less than 
50 percent ownership to 50 percent or more ownership shall always be 
considered a transfer of control. In other situations, whether a 
controlling interest in transferring is determined on a case-by-case 
basis considering the distribution of ownership, and the relationships 
of the owners, including family relationships. The Commission proposes 
to adopt both of these provisions as part of a consolidated rule that 
would govern all international Section 214 assignments and transfers, 
whether substantial or pro forma. The Commission proposes to move the 
provisions of Sec. 63.18(e)(3), which specify the procedures for 
seeking prior approval of an assignment or substantial transfer of 
control, to Sec. 63.24. The NPRM seeks comment on these proposals.
    8. The NPRM seeks comment on the proposal to allow a case-by-case 
determination of whether an assignment or transfer of control is 
substantial or pro forma. The Commission tentatively concludes that it 
should adopt the same case-by-case approach in the FCBA Forbearance 
Order (63 FR 10338, March 3, 1998) for determining whether transfers of 
control of international Sec. 214 authorizations are substantial or pro 
forma. The Commission proposes that the transaction types currently 
listed in the rules as pro forma should be considered illustrative, not 
comprehensive. The NPRM seeks comment on these proposals.
    9. The NPRM seeks comment on other proposals to amend Sec. 63.24 so 
that it more closely tracks the procedures used for CMRS. The NPRM 
proposes that within 30 days after consummation of a pro forma 
transaction, the licensee must file an application with the Commission. 
The NPRM seeks comment on this proposal and the specific filing 
requirements for such an application. The NPRM seeks comment on the 
proposal that the rules clearly state that both pro forma and 
transferees and pro forma assignees are required to notify the 
Commission of either a pro forma transfer of control or assignment, 
which may be done by letter 30 days after the transaction. The NPRM 
also seeks comment on proposals to add definitions and explanatory 
language on assignments and transfers of control as well as procedures 
to be followed in the event of an involuntary assignment or transfer of 
control.

[[Page 79796]]

    10. The NPRM seeks comment on the Commission's tentative conclusion 
that the proposed rules, as revised to more closely track the rule used 
for CMRS, will reduce the regulatory burden on Section 214 
authorization holders. The NPRM also seeks comment on whether the 
proposals will provide greater flexibility to Section 214 authorization 
holders and expanding the possible range of transactions that qualify 
for filing on a pro forma basis.
    11. The Commission proposes to discontinue the application of the 
benchmark rates to services provided over facilities-based private 
lines. The Commission believes that this proposal will relieve an 
unnecessary burden without adversely affecting competitive safeguards. 
The NPRM seeks comment on the proposal and conclusion. Comments should 
address the likelihood that a carrier could successfully evade 
application of the condition by sending facilities-based switched 
traffic over facilities-based private lines.
    12. The Commission proposes to modify its rules for discontinuances 
of service by U.S. international common carriers. The Commission 
proposes to require prior approval for discontinuances by a U.S. 
international carrier only for those routes and services for which the 
carrier is classified as dominant due to its having market power in the 
provision of that international service on the U.S. end of the route. 
The NPRM seeks comment on this proposal and the tentative conclusion 
that the discontinuance requirement should apply only to U.S. carriers 
regulated as dominant due to market power in the U.S. Comments should 
address under what circumstances, if any, prior Commission approval 
should be required before a U.S. carrier regulated as dominant under 
Sec. 63.10 can discontinue service.
    13. The NPRM seeks comment on the proposals to amend the 
explanatory notes regarding attribution of indirect ownership interests 
in U.S. and foreign carriers to clarify that whenever an ownership 
percentage exceeds 50 percent or represents actual control it shall be 
treated as a 100 percent interest for purposes of applying the 
multiplier.
    14. The NPRM seeks comment on a number of proposals to amend or 
eliminate rules that are no longer applicable. The NPRM proposes to 
eliminate Sec. 63.21(h) because there are no U.S. carriers to which the 
rule applies. The NPRM proposes to eliminate Sec. 43.81 because the 
requirement that foreign-owned carriers file certain reports has 
expired. The NPRM proposes to amend Sec. 63.22 to clarify that a 
facilities-based carrier may provide service over U.S. facilities, 
which are not subject to authorization by the Commission, as long as 
those facilities are not on the Exclusion List. The NPRM also proposes 
to eliminate confusion over the inconsistency of Sec. 63.22 by removing 
the general reference to a list of countries in the Exclusion List. The 
NPRM proposes to eliminate unnecessary duplication of the contents 
required for international Section 214 applications contained in 
Sec. 63.09 and Sec. 63.18. The NPRM addresses the duplicative notes 
that are unnecessary and the proposal to eliminate the first three 
explanatory notes to Sec. 62.18(h) while retaining the forth note. The 
NPRM proposes to delete the provision in Sec. 63.20 that specifies the 
number of copies required to be filed for applications to supplement 
already authorized facilities.
    15. In addition, the NPRM proposes to eliminate the requirement 
that a Section 214 application be submitted on computer diskette. The 
Commission believes that the International Bureau Filing System (IBFS) 
supercedes the computer diskette method for filing applications. 
Similarly, the NPRM proposes to amend Sec. 63.10(d) to remove the 
requirement that reports filed by dominant carriers be filed on 
diskettes. Comments are sought on these tentative conclusions and 
whether there is any reason to continue to require international 
Section 214 applications and dominant carrier reports to be filed on 
computer diskettes.

Procedural Matters

    16. Ex Parte Presentations. This proceeding is a ``permit-but-
disclose'' proceeding. Ex Parte presentations are permitted, except 
during the Sunshine Agenda period, provided they are disclosed as 
provided in the Commission's rules.
    17. Initial Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act (RFA), 5 U.S.C. 603 the Commission has 
prepared this present Initial Regulatory Flexibility Analysis (IRFA) of 
the possible significant economic impact on small entities by the 
policies proposed in this Notice of Proposed Rulemaking (NPRM). Written 
public comments are requested on this IRFA. Comments must be identified 
as responses to the IRFA and must be filed by the deadlines for 
comments on the NPRM. The Commission will send a copy of the NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration. In addition, the NPRM and IRFA (or summaries 
thereof) will be published in the Federal Register.
    18. Need for, and Objectives of, the Proposed Rules: The 
Telecommunications Act of 1996 (1996 Act), Public Law 104-104, 110 
Stat. 56, directs the Commission to undertake, in every even-numbered 
year beginning in 1998, a review of all regulations issued under the 
Communications Act of 1934, as amended (Communications Act), 47 U.S.C. 
151 et seq., 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.'' In 
particular, the 1996 Act directs the Commission to determine whether 
any such regulation is no longer necessary ``as the result of 
meaningful economic competition between providers of such service.''
    19. As part of the year 2000 biennial regulatory review, the 
Commission reviewed all of its rules relating to international 
telecommunications services to identify those rules that could be 
revised or eliminated. In this proceeding, we propose changes to 
several of our rules relating to international telecommunications 
services. Specifically, we propose to amend our rule concerning pro 
forma assignments and transfers of control of international Section 214 
authorizations to more closely match those used for the assignment and 
transfer of control of Commercial Mobile Radio Service (CMRS) licenses. 
We also tentatively conclude that it is no longer necessary to apply 
the settlement rate benchmarks condition to Section 214 authorizations 
to provide facilities-based international private line services. We 
also propose to modify our rules to relieve dominant international 
carriers of the requirement to seek prior approval to discontinue 
service, except where such carriers possess market power in the 
provision of international service on the U.S. end of the route. 
Finally, we also propose to amend several rules to clarify the intent 
of those rules and to eliminate certain rules that no longer have any 
application. We believe that these proposed changes are in the public 
interest and will remove unnecessary burdens on the public and the 
Commission.
    20. Legal basis: The NPRM is adopted pursuant to Secs. 1, 4, 11, 
214, 218, 219, 220, and 403 of the Communications Act of 1934, as 
amended, 47 U.S.C. 151, 154, 161, 214, 218, 219, 220, 403.
    21. Description and estimate of the number of small entities to 
which the proposals will apply: RFA directs agencies to provide a 
description of, and, where feasible, estimate of the

[[Page 79797]]

number of small entities that may be affected by the proposals, if 
adopted. The Regulatory Flexibility Act defines the term ``small 
entity'' as having the same meaning as the terms ``small business,'' 
``small organization,'' and ``small business concern'' under Section 3 
of the Small Business Act. A small business concern is one which: (1) 
Is independently owned and operated; (2) is not dominant in its field 
of operation; and (3) satisfies any additional criteria established by 
the SBA.
    22. The SBA has developed a definition of small entities for 
telephone communications companies other than radiotelephone (wireless) 
companies. The Census Bureau reports that there were 2,321 such 
companies that had been operating for at least one year at the end of 
1992. According to the SBA's definition, a wireline telephone company 
is a small business if it employs no more than 1,500 persons, 13 CFR 
121.201, Standard Industrial Classification (SIC) Code 4812. All but 26 
of the 2,321 wireline companies listed by the Census Bureau were 
reported to have fewer than 1,000 employees. Thus, even if all 26 of 
those companies had more than 1,500 employees, there would still be 
2,295 wireline companies that might qualify as small entities or small 
incumbent LECs. Although it seems certain that some of these carriers 
are not independently owned and operated, we are unable at this time to 
estimate with greater precision the number of wireline carriers and 
service providers that would qualify as small business concerns under 
the SBA's definition. Consequently, we estimate that fewer than 2,295 
of these wireline companies are small entities that might be affected 
by these proposals.
    23. Specifically, we propose to amend our rule concerning pro forma 
assignments and transfers of control of international Section 214 
authorizations to more closely match those used for the assignment and 
transfer of control of Commercial Mobile Radio Service (CMRS) licenses. 
We also tentatively conclude that it is no longer necessary to apply 
the settlement rate benchmarks condition to Section 214 authorizations 
to provide facilities-based international private line services. We 
also propose to modify our rules to relieve dominant international 
carriers of the requirement to seek prior approval to discontinue 
service, except where such carriers possess market power in the 
provision of international service on the U.S. end of the route. We 
also propose to amend several rules to clarify the intent of those 
rules and to eliminate certain rules that no longer have any 
application. At this time, we are not certain as to the number of small 
entities that will be affected by the proposals. We seek comment on the 
number of small entities that will be affected by the proposals set 
forth in the NPRM.
    24. Description of projected reporting, recordkeeping, and other 
compliance requirements: The proposals made in the NPRM will reduce the 
recordkeeping and compliance requirements of all companies providing 
international telecommunications services, including small entities.
    25. In the NPRM, the Commission proposes to provide greater 
flexibility and clarity regarding assignments and transfers of control. 
Many of the transactions that carriers are entering into involve 
multiple services. In the NPRM the Commission proposes procedures 
regarding pro forma assignments and transfers of control of 
international Section 214 authorizations that more closely follow those 
used for the assignment and transfer of control of Commercial Mobile 
Radio Service (CMRS) licenses. This should reduce the burdens placed on 
carriers filing transfers of control or assignments by having similar 
requirements for both Section 214 authorizations and CMRS licenses. 
Under the proposed rule carriers will continue to be required to file 
an application, which can be in the form of a letter, with the 
Commission no later that thirty days after the assignment or transfer 
is completed. The application must contain a certification that the 
transfer of control or assignment was pro forma, and, together with all 
other previous pro forma transactions, this transfer of control or 
assignment does not result in a change in the actual controlling party. 
The letter must also contain the name, address of the transferee/
assignee, contact points, and updated ownership information.
    26. The Commission also proposes to remove the settlement rate 
benchmarks condition to Section 214 authorizations to provide 
facilities-based international private line services. The Commission 
also proposes to modify its rules to relieve dominant international 
carriers of the requirement to seek prior approval to discontinue 
service, except where such carriers possess market power in the 
provision of international service on the U.S. end of the route. Only 
one carrier--Comsat--is currently regulated as dominant on particular 
routes in its provision of particular services due to the existence of 
market power on the U.S. end of those routes. Other carriers that are 
classified dominant solely due to affiliations with foreign carriers 
will no longer be required to seek prior approval before discontinuing 
service.
    27. The other proposals in the NPRM will clarify the intent of 
certain rules and to eliminate other rules that no longer have any 
application. We believe that these proposed changes are in the public 
interest and will remove unnecessary burdens on the public and the 
Commission.
    28. Steps taken to minimize significant economic impact on small 
entities, and significant alternatives considered: The RFA requires an 
agency to describe any significant alternatives that it has considered 
in reaching its proposed approach, which may include the following four 
alternatives: (1) the establishment of differing compliance or 
reporting requirements or timetables that take into account the 
resources available to small entities; (2) the clarification, 
consolidation, or simplification of compliance or reporting 
requirements under the rule for small entities; (3) the use of 
performance, rather than design, standards; and (4) an exemption from 
coverage of the rule, or any part thereof, for small entities.
    29. The Telecommunications Act of 1996 (1996 Act) directs the 
Commission to undertake, in every even-numbered year beginning in 1998, 
a review of all regulations issued under the Communications Act of 
1934, as amended (Communications Act), 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.'' In particular, the 1996 Act directs the 
Commission to determine whether any such regulation is no longer 
necessary ``as the result of meaningful economic competition between 
providers of such service.'' As part of the 2000 biennial regulatory 
review, the Commission reviewed all of its rules relating to 
international telecommunications services to identify those rules that 
could be revised or eliminated. In this proceeding the Commission 
proposes changes to several of its rules relating to international 
telecommunications services. The Commission believes that the proposals 
in the NPRM will reduce the economic burdens placed on all companies 
providing international telecommunications services, including small 
entities.
    30. Federal rules that may duplicate, overlap, or conflict with the 
proposed rules: None.
    31. Paperwork Reduction Act. The NPRM contains either new or 
modified information collections subject to the Paperwork Reduction Act 
of 1995

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(PRA). The Commission will submit the proposed information collections 
to the Office of Management and Budget (OMB) for review under the PRA. 
Upon submission to OMB, comments from OMB, the general public, and 
other federal agencies will be invited on the proposed information 
collections contained in the proceeding.

Ordering Clauses

    32. Pursuant to Sections 1, 4, 11, 214, 218, 219, 220 and 403 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154, 161, 
214, 218, 219, 220, 403, the Notice of Proposed Rulemaking is hereby 
adopted and comments are requested.
    33. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Notice of Proposed 
Rulemaking, including the regulatory flexibility certification, to the 
Chief Counsel for Advocacy of the Small Business Administration, in 
accordance with paragraph 603(a) of the Regulatory Flexibility Act, 
Public Law 96-354, 94 Stat. 1164, 5 U.S.C. 601, et seq.

List of Subjects in 47 CFR Parts 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 proposes to amend 47 CFR parts 43 and 63 as 
follows:

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

    1. The authority citation for part 43 continues to read as follows:

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Public 
Law 104-104, sec. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.


Sec. 43.81  [Removed]

    2. Remove Sec. 43.81.

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

    3. 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.

    4. Section 63.09 is amended by revising Note 2 to Sec. 63.09 to 
read as follows:


Sec. 63.09  Definitions applicable to international Section 214 
authorizations.

* * * * *

    Note 2 to Sec. 63.09: 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 or represents actual control, it shall be treated as if 
it were a 100 percent interest. 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.

    5. Section 63.10 is amended by revising paragraph (d) to read as 
follows:


Sec. 63.10  Regulatory classification of U.S. international carriers.

* * * * *
    (d) A carrier classified as dominant under this section shall file 
an original and two copies of each report required by paragraphs 
(c)(3), (c)(4), and (c)(5) of this section with the Chief, 
International Bureau. The carrier shall also file one copy of these 
reports with the Commission's copy contractor. The transmittal letter 
accompanying each report shall clearly identify the report as 
responsive to the appropriate paragraph of Sec. 63.10(c).
* * * * *


Sec. 63.18  [Amended]

    6. Section 63.18 is amended by removing paragraph (e)(3) and Notes 
1 through 4 to paragraph (h) and redesignating paragraph (e)(4) as 
(e)(3) and adding Note to paragraph (h) to read as follows.
* * * * *

    Note to paragraph (h): 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 or represents actual control, it shall be treated as if 
it were a 100 percent interest. 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.

* * * * *
    7. Section 63.19 is revised to read as follows:


Sec. 63.19  Special procedures for discontinuances of international 
services.

    (a) With the exception of those international carriers described in 
paragraph (b) of this section, any international carrier that seeks to 
discontinue, reduce or impair service, including the retiring of 
international facilities, dismantling or removing of international 
trunk lines, shall be subject to the following procedures in lieu of 
those specified in Secs. 63.61 through 63.601:
    (1) The carrier shall notify all affected customers of the planned 
discontinuance, reduction or impairment at least 60 days prior to its 
planned action. Notice shall be in writing to each affected customer 
unless the Commission authorizes in advance, for good cause shown, 
another form of notice.
    (2) The carrier shall file with this Commission a copy of the 
notification on or after the date on which notice has been given to all 
affected customers.
    (b) The following procedures shall apply to any international 
carrier that the Commission has classified as dominant in the provision 
of a particular international service because the carrier possesses 
market power in the provision of that service on the U.S. end of the 
route. Any such carrier that seeks to retire international facilities, 
dismantle or remove international trunk lines, and the dominant 
services being provided through these facilities is not being 
discontinued, reduced or impaired, shall only be subject to the 
notification requirements of paragraph (a) of this section. If such 
carrier discontinues, reduces or impairs the dominant service or 
retires facilities that

[[Page 79799]]

impair or reduce the service, the carrier shall file an application 
pursuant to Secs. 63.62 and 63.500.
    8. Section 63.20 is amended by revising paragraph (a) to read as 
follows:


Sec. 63.20  Copies required; fees; and filing periods for international 
service providers.

    (a) Unless otherwise specified the Commission shall be furnished 
with an original and five copies of applications filed for 
international facilities and services under section 214 of the 
Communications Act of 1934, as amended. Upon request by the Commission, 
additional copies of the application shall be furnished. Each 
application shall be accompanied by the fee prescribed in subpart G of 
part 1 of this chapter.
* * * * *


Sec. 63.21  [Amended]

    9. Section 63.21 is amended by removing paragraph (h) and 
redesignating paragraphs (i) and (j) as paragraphs (h) and (i).
    10. Section 63.22 is amended by revising paragraph (b) to read as 
follows:


Sec. 63.22  Facilities-based international common carriers.

* * * * *
    (b) The carrier may provide service using half-circuits on any U.S. 
common carrier and non-common carrier facilities 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. The exclusion 
list is available from the International Bureau's World Wide Web site 
at 
http://www.fcc.gov/ib.
* * * * *
    11. Section 63.24 is amended by revising the subject heading and 
paragraph (a) and paragraph (b) and by adding new paragraphs (c) 
through (g) to read as follows.


Sec. 63.24  Assignments and transfers of control.

    (a) General. Except as otherwise provided in this section, an 
international Section 214 authorization may be assigned, or control of 
such authorization may be transferred by the transfer of control of any 
entity holding such authorization, to another party, whether 
voluntarily or involuntarily, directly or indirectly, only upon 
application to and prior approval by the Commission.
    (b) Assignments. For purposes of this section, an assignment of an 
authorization is a transaction in which the authorization is assigned 
from one entity to another entity. Following an assignment, the 
authorization is held by an entity other than the one to which it was 
originally granted.
    (c) Transfers of control. For purposes of this section, a transfer 
of control is a transaction in which the authorization remains held by 
the same entity, but there is a change in the entity or entities that 
control the authorization holder. A change from less than 50% ownership 
to 50% or more ownership shall always be considered a transfer of 
control. In all other situations, whether the interest being 
transferred is controlling must be determined on a case-by-case basis.
    (d) Pro forma assignments and transfers of control. Transfers of 
control or assignments that do not result in a change in the actual 
controlling party are considered non-substantial or pro forma. Whether 
there has been a change in the actual controlling party must be 
determined on a case-by-case basis with reference to the factors listed 
in Note 1 to paragraph (d). The types of transactions listed in Note 1 
to paragraph (d) shall be considered presumptively pro forma and prior 
approval from the Commission need not be sought.

    Note 1 to paragraph (d): If a transaction is one of the types 
listed below, the transaction is presumptively pro forma and prior 
approval need not be sought. In all other cases, the relevant 
determination shall be made on a case-by-case basis. (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 re-incorporation 
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.

    (e) Applications for substantial transactions. (1) In the case of 
an assignment or transfer of control of an international Section 214 
authorization that is not pro forma, the proposed assignee or 
transferee must apply to the Commission for authority prior to 
consummation of the proposed assignment or transfer of control.
    (2) The application shall include the information requested in 
paragraphs (a) through (d) of Sec. 63.18 for both the transferor/
assignor and the transferee/assignee. The information requested in 
paragraphs (h) through (p) of Sec. 63.18 is required only for the 
transferee/assignee. At the beginning of the application, the applicant 
shall include a narrative of the means by which the proposed transfer 
or assignment will take place.
    (3) 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.
    (4) An assignee or transferee shall notify the Commission no later 
than 30 days after either consummation of the proposed assignment or 
transfer of control, or a decision not to consummate the proposed 
assignment or transfer of control. The notification may be made by 
letter (sending one copy to the Office of the Secretary and one copy to 
the Telecommunications Division of the International Bureau) and shall 
identify the file numbers under which the initial authorization and the 
authorization of the assignment or transfer of control were granted.
    (f) Applications for non-substantial or pro forma transactions. (1) 
In the case of a pro forma assignment or transfer of control, the 
applicant is not required to seek prior Commission approval.
    (2) A pro forma assignee or transferee shall file an application 
with the Commission no later than 30 days after the assignment or 
transfer is completed. The application may be made by letter (sending 
one copy to the Office of the Secretary and one copy to the Chief of 
the Telecommunications Division of the International Bureau). 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. The applications must contain the following:
    (i) The information requested in paragraphs (a) through (d) and (h) 
of Sec. 63.18 for the transferee/assignee,
    (ii) A certification that the transfer of control or assignment was 
pro forma and that, together with all previous pro forma transactions, 
does not result in a change in the actual controlling party.
    (3) Upon release of a public notice granting a pro forma assignment 
or transfer of control, petitions for

[[Page 79800]]

reconsideration under Sec. 1.106 of this chapter or applications for 
review under Sec. 1.115 of this chapter of the Commission's rules may 
be filed within 30 days. Petitioner should address why the assignment 
or transfer of control in question should have been filed under 
paragraph (e) of this section rather than under paragraph (f) of this 
section.
    (g) Involuntary assignments or transfers of control. An involuntary 
assignment or transfer of control is one that occurs by operation of 
law. In the case of an involuntary assignment or transfer of control, 
the applicant must make the appropriate filing no later than 30 days 
after the event causing the involuntary assignment or transfer of 
control.


Sec. 63.53  [Amended]

    12. Section 63.53 is amended by removing paragraph (b) and 
redesignating paragraph (c) as (b).

[FR Doc. 00-32202 Filed 12-19-00; 8:45 am]
BILLING CODE 6712-10-P