[Federal Register Volume 67, Number 9 (Monday, January 14, 2002)]
[Rules and Regulations]
[Pages 1615-1623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-789]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[IB Docket No. 00-106, FCC 01-332]


Review of Commission Consideration of Applications Under the 
Cable Landing License Act

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document adopts streamlining procedures for processing 
applications for submarine cable landing licenses. The Commission 
initiated this proceeding to consider measures to facilitate the 
expansion of capacity and facilities-based competition in the submarine 
cable market. The Commission adopted measures designed to enable 
international carriers to respond to the demands of the market with 
minimal regulatory oversight and delay, saving time and resources for 
both the industry and government, while preserving the Commission's 
ability to guard against anti-competitive behavior.

DATES: Effective March 15, 2002 except for Secs. 1.767(a)(7) through 
(a)(9), (a)(11), (g)(1) through (g)(14), (j), (k), (l)(1) and (l)(2) 
and (m)(1) through (m)(2); and Secs. 1.768(a) through (i) which contain 
information collection requirements that have not been approved by the 
Office of Management and Budget (OMB). The FCC will publish a document 
in the Federal Register announcing the effective date for those 
sections. Public comments on the information collection requirements 
are due on or before February 13, 2002. OMB must submit written 
comments on the information collection requirements on or before March 
15, 2002.

ADDRESSES: Federal Communications Commission, Secretary, 445 12th 
Street, SW., Room TW-B204F, Washington, DC 20554. 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, SW., 
Washington, DC 20554, or via the Internet to[email protected],and 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: Peggy Reitzel, Policy and Facilities 
Branch, Telecommunications Division, International Bureau, (202) 418-
1499. For additional information concerning the information collections 
contained in this document contact Judy Boley at (202) 418-0214, or via 
the Internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 01-332, adopted on November 8, 2001, and released on 
December 14, 2001. 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/Orders/2001/fcc01332/txt.The complete text of 
this document also may be purchased from the Commission's copy 
contractor, Qualex International, Portals II, 445 12th Street, SW., 
Room CY-B402, Washington, DC, 20554, Telephone: 202-863-2893. Fax: 202-
863-2898, e-mail [email protected].

Summary of Report and Order

    1. On June 8, 2000, the Commission adopted a Notice of Proposed 
Rulemaking (NPRM) in which it proposed streamlining procedures for 
applications seeking submarine cable landing licenses (65 FR 41613, 
July 6, 2000). This proceeding was one of a series of such efforts the 
Commission has undertaken to benefit U.S. consumers by expediting 
regulatory processing and enhancing the competitiveness of service 
providers in the global communications marketplace.
    2. On November 8, 2001, the Commission adopted a Report and Order 
(Order) in this proceeding that focused on the objectives set out in 
the NPRM: (1) To institute an expedited licensing process to speed the 
deployment of cable capacity to the market; (2) to ensure careful 
Commission review of certain applications to guard against anti-
competitive behavior, and (3) to adopt a pro-competitive model that 
could be used around the world.
    3. The NPRM contained streamlining options that commenters found to 
be too complex and burdensome. In response to the comments, the 
Commission adopted a streamlining approach that tracks the streamlining 
procedures currently used for section 214 authorizations of 
international telecommunications services.
    4. The Commission developed an approach under which most 
applications should be streamlined. An application will qualify for 
streamlined processing if the applicants have no affiliation with a 
carrier that possesses market power in the cable's destination markets. 
If an applicant has an affiliation with a carrier with market power in 
any of the cable's World Trade Organization (WTO) Member destination 
markets, the application will be eligible for streamlined processing if 
each applicant with such foreign carrier affiliation certifies that it 
will accept standard competitive safeguards. An application that 
includes an applicant that is, or is affiliated with, a carrier that 
has market power in a cable's non-WTO Member destination market will 
not be eligible for streamlining. To determine affiliation, the Order 
applies the twenty-five percent (25%) ownership affiliation standard 
that is currently applied to international section 214 and cable 
landing license applications.
    5. The standard competitive safeguards are designed to detect and 
deter harm to competition in the United States that may result from a 
foreign carrier's market power. The safeguards include a requirement to 
file quarterly provisioning and maintenance reports and quarterly 
circuit status reports. Licensees concerned about public disclosure of 
the reports will be able to request a standard protective order for 
confidential treatment of the information.
    6. The Order's competitive safeguards also include a ``no special 
concessions'' rule that prohibits all licensees from directly or 
indirectly agreeing to accept a ``special concession'' from a foreign 
carrier with market power in one or more of the cable's destination 
markets. The Order defines a special concession as an exclusive 
arrangement involving services, facilities, or functions on the foreign 
end of a U.S. international route that are necessary to land, connect, 
or operate submarine cables, where the arrangement is not offered to 
similarly situated U.S. submarine cable owners, indefeasible-right-of-
user holders, or lessors, and includes arrangements for the terms for 
acquisition, resale, lease, transfer and use of capacity on the cable; 
access to collocation space; the opportunity to provide or obtain 
backhaul capacity; access to technical network information; and

[[Page 1616]]

interconnection to the public switched telecommunications network. The 
rule will apply to all licenses issued after the effective date of the 
Order. In addition, existing licensees may seek to modify their 
licenses to substitute this targeted safeguard for the current 
prohibition against any exclusive arrangements.
    7. The Order also adopted a requirement that all cable landing 
licensees, like international section 214 carriers, must notify the 
Commission of any foreign carrier affiliations acquired after the 
issuance of a license where the affiliation is with a carrier in a 
market at the foreign end of the cable. This rule will be applied to 
all licensees of all submarine cables, whether authorized by the 
Commission prior to or after the effective date of the rules adopted 
herein. The Commission concluded that this rule would provide 
additional protection against possible anti-competitive conduct.
    8. Streamlined processing is optional, and thus applicants may 
elect to file under the traditional procedures. Moreover, although the 
Order did not mandate electronic filing of applications, applicants are 
encouraged to file electronically. Applications that meet the criteria 
for streamlined processing will be acted upon in a period of forty-five 
(45) days following the public notice announcing the application as 
acceptable for filing and eligible for streamlining. Applications 
acceptable for filing but ineligible for streamlining will be acted 
upon within ninety (90) days unless the Commission notifies the 
applicant that the application presents issues that require additional 
scrutiny, in which case the Commission will extend the review for 
another ninety (90) days. The Commission delegated to the International 
Bureau the authority to identify particular applications that, although 
otherwise eligible for streamlining, may warrant additional public 
comment and require consideration on a case-by-case basis.
    9. The Commission declined to adopt a specific timeframe by which 
it will issue public notices of applications accepted for filing. 
Rather, it will continue its practice of issuing public notices of 
applications accepted for filing in an expeditious manner. The 
Commission adopted the procedure used for section 214 applications of 
not routinely removing applications from streamlining based on the 
filing of comments on competitive or other issues that a party might 
seek to raise. In addition, the Commission adopted its proposal to 
grant applications by public notice unless a formal written order is 
deemed necessary.
    10. The Commission adopted a new rule that will require fewer 
entities to become applicants/licensees. Only the following entities 
will be required to be applicants for a cable landing license: an 
entity that (1) owns or controls a landing station in the United 
States; or (2) owns or controls a five percent (5%) or greater interest 
in the cable system and will use the U.S. points of the cable system. 
In addition, the Commission established a process for an existing 
licensee that is not a U.S. landing party and owns or controls less 
than five percent (5%) of the cable system to seek removal from a 
submarine cable landing license. The Commission also clarified its rule 
that once an entity is a licensee, it is subject to the Commission's 
rules for modifications, assignments and transfers of control of 
interests in cable landing licenses, even where these interests are 
less than five percent (5%). The Commission will continue to require 
applicants for a cable landing license to identify all original owners, 
including those with less than five percent (5%) interest.
    11. The Commission reminded applicants seeking common carrier 
landing licenses that, in addition to the cable landing license 
application, they must file an application for section 214 authority 
for the construction of new lines under Sec. 63.18(e)(4) of the 
Commission's rules.
    12. The Commission adopted a new process designed to replace prior 
review of pro forma transactions with a post-transaction notification 
procedure, thereby allowing entities to proceed with their pro forma 
transactions without delay. In addition, the Commission provided that 
an existing licensee may file an application to modify its license to 
take advantage of this post-transaction notification procedure.
    13. To provide clear and publicly available conditions for 
licenses, the Commission codified routine conditions that traditionally 
have been attached to all cable landing licenses. In addition, the 
Commission codified the new streamlining procedures, the no special 
concessions rule for all licensees, the reporting requirements, the pro 
forma procedures, and the applicant-licensee rule.
    14. The Order also addressed other issues raised in the NPRM or by 
commenters. The Commission declined to eliminate the distinction 
between cables operated on a common carrier and private carrier basis. 
The Commission suggested that parties seeking modifications to existing 
fee structures pursue these requests through the annual rulemaking 
process specifically designated for this purpose. The Commission 
declined to adopt suggestions to reduce the ownership information 
required in cable landing license and section 214 applications, 
deferring this issue to its 2002 biennial review of all of its rules. 
The Commission clarified its rule regarding the type of information an 
applicant must provide in its specific description of cable landing 
stations.

Procedural Matters

    15. Paperwork Reduction Act. The Order contained modified 
information collections. The Commission, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and the 
Office of Management and Budget (OMB) to comment on the information 
collections contained in the NPRM, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due February 13, 2002. OMB notification of action is due March 15, 
2002. 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: 3060-0944.
    Title: Applications under the Cable Landing License Act.
    Form Number: N/A.
    Type of Review: Revised collection.
    Respondents: Business and other for-profit entities.
    Number of Respondents: 25.
    Number of Responses: 271.
    Estimated Time Per Response: An average of 4 hours per response.
    Frequency of Response: On Occasion. Third party disclosure.
    Total Annual Burden: 995 hours.
    Total Annual Costs: $352,425.
    Needs and Uses: The information will be used by the Commission to 
determine the qualifications of applicants 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

[[Page 1617]]

involved in similar arrangements with, foreign carriers that have 
sufficient market power to affect competition adversely in the U.S. 
market. 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.
    16. Final Regulatory Flexibility Act Analysis. As required by the 
Regulatory Flexibility Act (RFA), an Initial Regulatory Flexibility 
Analysis (IRFA) was incorporated in the Review of Commission 
Consideration of Applications under the Cable Landing License Act, 
Notice of Proposed Rulemaking (NPRM). The Commission sought written 
public comment on the proposals of the NPRM, including comment on the 
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the 
RFA. (5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has been amended 
by the Contract With America Advancement Act of 1996, Public Law No. 
104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).

A. Need for, and Objectives of, the Report and Order

    17. In recent years, there has been growth in the number and 
capacity of submarine cables triggered in large part by increased 
Internet and data traffic. Because of this increased demand for 
capacity, the rapid pace of technological development, and the 
emergence of non-traditional ownership and financing structures in the 
submarine cable marketplace, the International Bureau reviewed its 
policies for licensing submarine cables. As a result of the review, the 
Commission initiated this proceeding.
    18. The Order adopts streamlining procedures for processing 
applications for submarine cable landing licenses. The streamlining 
procedures are designed to promote the expansion of capacity and 
facilities-based competition in the submarine cable market, which 
should increase innovation and lower prices for U.S. consumers of 
international communications services. The measures also are designed 
to enable international carriers to respond to the demands of the 
market with minimal regulatory oversight and delay, saving time and 
resources for both the industry and the government, while preserving 
the Commission's ability to guard against anti-competitive behavior.
    19. The measures adopted in the Order are part of the Commission's 
continuing streamlining efforts. We recognize the importance of 
reducing regulatory costs, providing regulatory certainty, and 
facilitating the planning of financial transactions. The procedures 
contained in the Order should allow participants in the submarine cable 
market to make business decisions more readily.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    20. There were no comments in response to the IRFA. In general, 
commenters were very supportive of the agency's proposal to streamline 
the submarine cable landing license process. However, some commenters 
were concerned that the options proposed in the NPRM could be 
burdensome and time-consuming for both applicants and Commission staff, 
and, instead of expediting the licensing process, could slow the 
licensing process. Thus, commenters proposed alternatives that more 
closely resembled the streamlining process currently used by the agency 
for processing international section 214 authorizations. The Order 
adopts an approach to streamlining that reflects the concerns raised by 
commenters.
    21. Commenters in this proceeding presented a number of approaches 
and/or criteria for determining whether an application would be 
eligible for streamlined processing. The Order adopts an eligibility 
test for cables to World Trade Organization (WTO) Member countries that 
focuses on whether the applicants are, or are affiliated with, carriers 
with market power in the cable's destination market. Cables without 
such affiliations will be eligible for streamlining. Cables with such 
affiliations will be eligible if the applicants/licensees with such 
affiliations comply with reporting requirements that are similar to 
existing dominant carrier reporting requirements applicable to section 
214 carriers that have affiliations with market power carriers in 
foreign markets. (See 47 CFR 63.10). In addition, all licensees will be 
subject to the prohibition against entering into special arrangements 
with foreign market-power carriers. The Commission believes that the 
rules and regulations adopted herein both will respond to the 
commenters' proposals and preserve the Commission's ability to guard 
against anti-competitive behavior that could result in harm to 
consumers in the U.S. market.

C. Description and Estimate of the Number of Small Entities to Which 
Rules Will Apply

    22. The RFA directs agencies to provide a description of, and, 
where feasible, estimate of, the 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 
governmental jurisdiction.'' In addition, the term ``small business'' 
has the same meaning as the term ``small business concern'' under 
Section 3 of the Small Business Act. A small business concern is one 
that: (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.
    23. The SBA has developed a definition of small entities for 
telephone communications companies other than radiotelephone (wireless) 
companies. Some of these telephone communications companies may have 
ownership interests in submarine cables or use such cables to provide 
international service. 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. 
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 2,295 or fewer of 
these wireline companies are small entities that might be affected by 
these proposals.
    24. The streamlining measures contained in the Order are available 
to entities applying for a license to land or operate submarine cables 
under the Cable Landing License Act (or entities applying to assign or 
transfer control of interests in existing submarine cable landing 
licenses). The measures, however, may indirectly affect other entities 
as well, including users of submarine cable service such as Internet

[[Page 1618]]

service providers (ISPs) that lease capacity or purchase indefeasible 
rights of use (IRUs) on cable systems. The policies and rules adopted 
in the Order will reduce the burden on all applicants regardless of 
size, by permitting applicants to seek to have their applications 
granted in a more expeditious manner. We do not have precise numbers 
for the small entities that will be affected by the policies and rules. 
Agency data indicates there have been approximately 50 cable landing 
applications filed with the Commission since 1992, but the total number 
of licensees at any particular time is difficult to determine, because 
many licenses are jointly held by several licensees and assignments and 
transfers of control of interests occur on a regular basis. Based on 
this information, we would estimate that, over the next five years, the 
streamlining procedures may benefit as many as 50 applicants meeting 
the SBA definition of a small entity.
    25. In addition to expediting the processing of applications, the 
Order will require fewer entities to become applicants/licensees. This 
change will further reduce the number of small entities subject to the 
rules and regulations. Only the following entities will be required to 
be applicants for a cable landing license: an entity that (1) owns or 
controls a U.S. landing station; or (2) owns or controls a five percent 
(5%) or greater interest in the cable system and will use the U.S. 
points of the cable system. In order to afford existing cable landing 
licensees this same opportunity, small entities that meet the criteria 
may request to be removed from the cable landing license.
    26. We note that it is difficult to determine with precision the 
number of small entities that will be affected by this Order. For 
example, some small entities with less than five percent (5%) ownership 
may elect to become licensees. We will be able to compile more specific 
data only after small entities file applications seeking removal from 
existing cable landing licenses. However, the following example of 
cable ownership interests will provide a good illustration of the 
potential number of small entities that could be exempt from the 
requirements of the Order. According to agency data at the time of 
application, the percentage of ownership interests for an existing 
submarine cable system, the TAT-14 cable, were as follows: four U.S. 
carriers owned five percent (5%) or greater (these four carriers owned 
a total of 32.57 percent); fifteen U.S. carriers owned less than five 
percent (5%) (these fifteen carriers owned a total of 16.93 percent); 
and thirty-two foreign carriers owned the remaining 50.50 percent.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    27. Any reporting or recordkeeping requirements imposed on small 
entities will be insignificant. Generally, applicants seeking a cable 
landing license will submit the same information that is currently 
required by the rules. Applicants may continue to file for a license 
under the existing procedures, and some applicants will not meet the 
eligibility criteria for streamlined processing. Applicants may file 
electronic or paper applications.
    28. We believe that many small entities below the five percent (5%) 
ownership criteria may decide not to be cable landing license 
applicants, and therefore, such entities will not be subject to the 
reporting, recordkeeping, or compliance requirements applicable to 
licensees. Small entities that are currently licensees, and meet these 
criteria, may file an application requesting that they be removed from 
the license. The application would demonstrate that the entity: (1) 
Does not own or control a U.S. cable landing station; and (2) holds 
less than five percent (5%) interest in the cable system. The 
application would be filed with the Commission and copies would be 
served on each other licensee of the cable system. This burden should 
be minimal because the information would be readily available from the 
information that the entity provided at the time of becoming an initial 
applicant or from other business records showing an increase or 
decrease of ownership interest. As an existing licensee of a cable 
landing license, the entity would have ready access to the names and 
addresses of other licensees. Thus, the service burden also would be 
minimal.
    29. The Order also adopts standard competitive safeguards that will 
impose additional reporting burdens on certain entities. We believe, 
however, that very few small entities will be burdened with this 
requirement. Reporting requirements will be imposed only on those 
applicants that have an affiliation with a carrier with market power in 
any of the cable's destination markets. These applicants will be 
required to provide provisioning and maintenance reports that include: 
(a) Identification of each facility or service provisioned and/or 
maintained; (b) for provisioned facilities and services, the volume or 
quantity provisioned and the order-to-delivery intervals; and (c) for 
each facility and service, the number of outages and intervals to 
restoration. Also, applicants will be required to provide quarterly 
circuit status reports, on a facility-specific basis, in the format set 
out by the Commission's annual circuit status manual. If applicants 
have a concern over the public disclosure of their reports, they may 
seek confidential treatment of the information and request a standard 
protective order.
    30. The Order also adopts a rule that requires licensees to notify 
the Commission of new affiliations that they acquire with foreign 
carriers in a cable's destination market. If the Commission deems it 
necessary, it will impose on the newly affiliated licensee the 
reporting requirements discussed above. This rule is similar to the 
notification rule that applies in the context of international section 
214 carriers, see 47 CFR 63.11. We believe this reporting requirement 
will have minimal applicability to small entities because it will apply 
only to licensees, and it is likely, under our rules, that few small 
entities (that is, those independently owned and operated companies 
with no more than 1500 employees) will be required to become licensees.
    31. The Order also adopts a new process designed to remove prior 
Commission review of pro forma assignments or transfers of control of 
interests in submarine cable landing licenses. Again, this process will 
have minimal applicability to small entities to the extent they are not 
cable licensees. Pro forma transactions do not result in a change in 
the ultimate control of the interest in the cable landing license or in 
changes to the cable system itself as previously evaluated at the time 
of the initial license application. Under the Order, a pro forma 
assignee or a person or company that is the subject of a pro forma 
transfer of control of an interest in a cable landing license will no 
longer be required to seek prior approval, but if electing post-
transaction notification, must: (1) Notify the Commission no later than 
thirty (30) days after the pro forma transaction is consummated; (2) 
certify that the assignment or transfer of control is pro forma, and 
together with all previous pro forma transactions, does not result in a 
change of the licensee's ultimate control; and (3) provide an update to 
any ownership information required by our rules. Under this new rule, 
the burden of seeking prior approval would be eliminated for most 
entities, thus allowing them to proceed with their pro forma 
transaction without delay. Entities would file the same information 
after the transaction instead of prior to the transaction. The Order 
provides that

[[Page 1619]]

existing licenses could be modified, at a licensee's request, to be 
subject to this post-transaction process. The licensee would be 
required to file an application with the Commission seeking a 
modification of its license to incorporate this limited exception to 
the prior approval requirement currently set forth in the applicable 
license condition. This new process will impose a slight burden on 
applicants that have been granted a cable landing license and wish to 
take advantage of this new process. Presumably licensees will only 
subject themselves to this burden if they believe the benefit of 
expedited post-transaction processing of pro forma assignments or 
transfers of control will offset any burden. Similarly, the Order 
states that licensees of previously authorized cables may file 
applications to modify their licenses to substitute the new, more 
narrowly tailored ``no special concessions'' rule for the ``no 
exclusive arrangements'' condition contained in existing licenses.

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    32. 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 (among others): (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 reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage or the rule, or any part thereof, for small 
entities.
    33. In the NPRM, we requested comment on whether small entities 
would be adversely affected by the proposals and whether the proposals 
would enable small entities to respond to the demands of the market 
with minimum regulatory oversight, delays, and expenses. Commenters did 
not specifically address the impact on small entities. Rather, 
commenters expressed concerns that the NPRM proposals could be 
burdensome and time-consuming on all entities. Commenters proposed 
alternative measures more aligned with the existing section 214 
streamlining procedures. As a result, the Order adopts measures that 
are closely modeled on the streamlining process for international 
section 214 authorizations which has been successful and not 
burdensome.
    34. The procedures adopted in the Order are designed to provide 
more certainty and flexibility for applicants, encourage investment and 
infrastructure development by multiple providers, expand available 
submarine cable capacity, and decrease application processing time. 
This decision extends the benefits of streamlined processing to as many 
applicants as possible, including small entities. It reduces the 
regulatory and procedural burdens while preserving the Commission's 
ability to guard against anti-competitive behavior. This streamlined 
processing may benefit small entities especially because the procedures 
should facilitate entry by such entities into the submarine cable 
market and expand international services available to such entities. In 
addition, we have developed a definition of ``licensee'' that should 
permit a large number of small entities to be exempt from the 
requirements contained in the Order.
    35. Finally, the reporting requirements and other measures adopted 
in the Order will minimize any economic impact on small entities. The 
reporting requirements, which apply only to certain licensees, will 
allow the Commission to monitor and detect anti-competitive behavior 
without imposing unnecessarily burdensome regulations on a U.S. 
licensee due to its affiliation with a foreign carrier.
    36. To simplify compliance with the rules and requirements, the 
Order codifies the submarine cable landing license conditions. This 
step will provide clear and publicly available standard conditions for 
all entities. Also, applicants will no longer be required to submit a 
letter affirmatively accepting the terms and conditions of the cable 
landing license.
    Report to Congress: The Commission will send a copy of the Order, 
including this FRFA, in a report to be sent to Congress pursuant to the 
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A). In addition, the 
Commission will send a copy of the Order, including FRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration. A copy of 
the Order and FRFA (or summaries thereof) will also be published in the 
Federal Register. See 5 U.S.C. 604(b).

Ordering Clauses

    37. Accordingly, it is ordered that, pursuant to sections 1, 4(i) 
and (j), 201-255 303(r) of the Communications Act as amended, 47 U.S.C. 
151, 154(i), 154(j), 201-255, 303(r), and the Cable Landing License 
Act, 47 U.S.C. 34-39 and Executive Order No. 10530, Sec. 5(a), 
reprinted as amended in 3 U.S.C. 301, this Report and Order is hereby 
adopted and the Commission's rules, 47 CFR part 1, are amended as set 
forth in the Rule Changes.
    38. It is further ordered that the policies, rules and requirements 
established in this decision shall take effect March 15, 2002, except 
for Secs. 1.767(a)(7) through (a)(9), (a)(11), (g)(1) through (g)(14), 
(j), (k), (l)(1) and (l)(2), and (m)(1) through (m)(2); and 
Secs. 1.768(a) through (i) which contain information collection 
requirements that have not been approved by the Office of Management 
and Budget (OMB). The FCC will publish a document in the Federal 
Register announcing the effective date for those sections.
    39. It is further ordered that the Commission's Consumer 
Information Bureau, Reference Information Center, shall send a copy of 
this Report and Order, including the Final Regulatory Flexibility Act 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subjects in 47 CFR Part 1

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications miscellaneous rules relating to common 
carriers.

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 1 as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309 
and 325(e).


    2. Section 1.767 is amended by revising paragraphs (a)(5), (a)(7), 
and (a)(8); redesignating paragraph (a)(9) as (a)(10); adding new 
paragraphs (a)(9), (a)(11), (g) through (m) 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 
geographic coordinates, and may also include street addresses, of each 
landing station. The map must also specify the coordinates of any beach 
joint where those

[[Page 1620]]

coordinates differ from the coordinates of the cable 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 ninety (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 sixty (60) days after receipt of the specific 
description of the landing points, unless the Commission designates a 
different time period;
* * * * *
    (7) A list of the proposed owners of the cable system, including 
each U.S. cable landing station, their respective voting and ownership 
interests in each U.S. cable landing station, their respective voting 
interests in the wet link portion of the cable system, and their 
respective ownership interests by segment in the cable;
    (8) For each applicant of the cable system, a certification as to 
whether the applicant is, or is affiliated with, a foreign carrier, 
including an entity that owns or controls a foreign cable landing 
station in any of the cable's destination markets. Include the 
citizenship of each applicant and information and certifications 
required in Sec. 63.18(h) through (k), and in Sec. 63.18(o), of this 
chapter;
    (9) A certification that the applicant accepts and will abide by 
the routine conditions specified in paragraph (g) of this section; and
* * * * *
    (11) (i) If applying for authority to assign or transfer control of 
an interest in a cable system, the applicant shall complete paragraphs 
(a)(1) through (a)(3) of this section for both the transferor/assignor 
and the transferee/assignee. Only the transferee/assignee needs to 
complete paragraphs (a)(8) through (a)(9) 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 application shall also specify, on a segment specific basis, 
the percentage of voting and ownership interests being transferred or 
assigned in the cable system, including in a U.S. cable landing 
station. 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.
    (ii) In the event the transaction requiring an assignment or 
transfer of control application also requires the filing of a foreign 
carrier affiliation notification pursuant to Sec. 1.768, the applicant 
shall reference in the application the foreign carrier affiliation 
notification and the date of its filing. See Sec. 1.768. See also 
paragraph (g)(7) of this section (providing for post-transaction 
notification of pro forma assignments and transfers of control).
    (iii) An assignee or transferee shall notify the Commission no 
later than thirty (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 license and the authorization of the assignment 
or transfer were granted.
* * * * *
    (g) Routine conditions. Except as otherwise ordered by the 
Commission, the following rules apply to each licensee of a cable 
landing license granted on or after March 15, 2002:
    (1) Grant of the cable landing license is subject to:
    (i) All rules and regulations of the Federal Communications 
Commission;
    (ii) Any treaties or conventions relating to communications to 
which the United States is or may hereafter become a party; and
    (iii) Any action by the Commission or the Congress of the United 
States rescinding, changing, modifying or amending any rights accruing 
to any person by grant of the license;
    (2) The location of the cable system within the territorial waters 
of the United States of America, its territories and possessions, and 
upon its shores shall be in conformity with plans approved by the 
Secretary of the Army. The cable shall be moved or shifted by the 
licensee at its expense upon request of the Secretary of the Army, 
whenever he or she considers such course necessary in the public 
interest, for reasons of national defense, or for the maintenance and 
improvement of harbors for navigational purposes;
    (3) The licensee shall at all times comply with any requirements of 
United States government authorities regarding the location and 
concealment of the cable facilities, buildings, and apparatus for the 
purpose of protecting and safeguarding the cables from injury or 
destruction by enemies of the United States of America;
    (4) The licensee, or any person or company controlling it, 
controlled by it, or under direct or indirect common control with it, 
does not enjoy and shall not acquire any right to handle traffic to or 
from the United States, its territories or its possessions unless such 
service is authorized by the Commission pursuant to section 214 of the 
Communications Act, as amended;
    (5)(i) The licensee shall be prohibited from agreeing to accept 
special concessions directly or indirectly from any foreign carrier, 
including any entity that owns or controls a foreign cable landing 
station, where the foreign carrier possesses sufficient market power on 
the foreign end of the route to affect competition adversely in the 
U.S. market, and from agreeing to accept special concessions in the 
future.
    (ii) For purposes of this section, 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 to land, connect, or operate submarine cables, where the 
arrangement is not offered to similarly situated U.S. submarine cable 
owners, indefeasible-right-of-user holders, or lessors, and includes 
arrangements for the terms for acquisition, resale, lease, transfer and 
use of capacity on the cable; access to collocation space; the 
opportunity to provide or obtain backhaul capacity; access to technical 
network information; and interconnection to the public switched 
telecommunications network.

    Note to paragraph (g)(5): Licensees may rely on the Commission's 
list of foreign carriers that do not qualify for the presumption 
that they lack market power in particular foreign points for 
purposes of determining which foreign carriers are the subject of 
the requirements of this section. The Commission's list of foreign 
carriers that do not qualify for the presumption that they lack 
market power is available from the International Bureau's World Wide 
Web site at http://www.fcc.gov/ib.

    (6) Except as provided in paragraph (g)(7) of this section, the 
cable landing license and rights granted in the license shall not be 
transferred, assigned, or disposed of, or disposed of indirectly by 
transfer of control of the licensee, unless the Federal Communications 
Commission gives prior consent in writing;
    (7) A pro forma assignee or a person or company that is the subject 
of a pro forma transfer of control of a cable landing license is not 
required to seek prior approval for the pro forma transaction. A pro 
forma assignee or person or company that is the subject of a pro forma 
transfer of control must notify the Secretary, Federal Communications 
Commission,

[[Page 1621]]

Washington, DC 20554, with a copy to the Chief, International Bureau, 
Federal Communications Commission, no later than thirty (30) days after 
the assignment or transfer of control 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 or transfer of control 
was pro forma, as defined in Sec. 63.24(a) of this chapter, and, 
together with all previous pro forma transactions, does not result in a 
change of the licensee's ultimate control. A single letter may be filed 
for an assignment or transfer of control of more than one license 
issued in the name of a licensee if each license is identified by the 
file number under which it was granted;
    (8) Unless the licensee has notified the Commission in the 
application of the precise locations at which the cable will land, as 
required by paragraph (a)(5) of this section, the licensee shall notify 
the Commission no later than ninety (90) days prior to commencing 
construction at that landing location. The Commission will give public 
notice of the filing of each description, and grant of the cable 
landing license will be considered final with respect to that landing 
location unless the Commission issues a notice to the contrary no later 
than sixty (60) days after receipt of the specific description. See 
paragraph (a)(5) of this section;
    (9) The Commission reserves the right to require the licensee to 
file an environmental assessment should it determine that the landing 
of the cable at the specific locations and construction of necessary 
cable landing stations may significantly affect the environment within 
the meaning of Sec. 1.1307 implementing the National Environmental 
Policy Act of 1969. See Sec. 1.1307(a) and (b). The cable landing 
license is subject to modification by the Commission under its review 
of any environmental assessment or environmental impact statement that 
it may require pursuant to its rules. See also Sec. 1.1306 note 1 and 
Sec. 1.1307(c) and (d);
    (10) The Commission reserves the right, pursuant to section 2 of 
the Cable Landing License Act, 47 U.S.C. 35, Executive Order No. 10530 
as amended, and section 214 of the Communications Act of 1934, as 
amended, 47 U.S.C. 214, to impose common carrier regulation or other 
regulation consistent with the Cable Landing License Act on the 
operations of the cable system if it finds that the public interest so 
requires;
    (11) The licensee, or in the case of multiple licensees, the 
licensees collectively, shall maintain de jure and de facto control of 
the U.S. portion of the cable system, including the cable landing 
stations in the United States, sufficient to comply with the 
requirements of the Commission's rules and any specific conditions of 
the license;
    (12) The licensee shall comply with the requirements of Sec. 1.768;
    (13) The cable landing license is revocable by the Commission after 
due notice and opportunity for hearing pursuant to section 2 of the 
Cable Landing License Act, 47 U.S.C. 35, or for failure to comply with 
the terms of the license or with the Commission's rules; and
    (14) The licensee shall notify the Secretary, Federal Commissions 
Commission, Washington, DC 20554, in writing, within thirty (30) days 
of the date the cable is placed into service, of the date the cable was 
placed into service. The cable landing license shall expire twenty-five 
(25) years from the in-service date, unless renewed or extended upon 
proper application. Upon expiration, all rights granted under the 
license shall be terminated.
    (h) Applicants/Licensees. Except as otherwise required by the 
Commission, the following entities, at a minimum, shall be applicants 
for, and licensees on, a cable landing license:
    (1) Any entity that owns or controls a cable landing station in the 
United States; and
    (2) All other entities owning or controlling a five percent (5%) or 
greater interest in the cable system and using the U.S. points of the 
cable system.
    (i) Processing of cable landing license applications. The 
Commission will take action upon an application eligible for 
streamlined processing, as specified in paragraph (k) of this section, 
within forty-five (45) days after release of the public notice 
announcing the application as acceptable for filing and eligible for 
streamlined processing. If the Commission deems an application seeking 
streamlined processing acceptable for filing but ineligible for 
streamlined processing, or if an applicant does not seek streamlined 
processing, the Commission will issue public notice indicating that the 
application is ineligible for streamlined processing. Within ninety 
(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.
    (j) Applications for streamlining. Each applicant seeking to use 
the streamlined grant procedure specified in paragraph (i) of this 
section shall caption its application and any cover letter with 
``Application for Cable Landing License--Streamlined Processing 
Requested.'' Applications for streamlined processing shall include the 
information and certifications required by paragraph (k) of this 
section. On the date of filing with the Commission, the applicant shall 
also send a complete copy of the application, or any major amendments 
or other material filings regarding the application, to: U.S. 
Coordinator, EB/CIP, U.S. Department of State, 2201 C Street, NW, 
Washington, DC 20520-5818; Office of Chief Counsel/NTIA, U.S. 
Department of Commerce, 14th St. and Constitution Ave., NW, Washington, 
DC 20230; and Defense Information Systems Agency, Code RGC, 701 S. 
Courthouse Road, Arlington, Va. 22204, and shall certify such service 
on a service list attached to the application or other filing.
    (k) Eligibility for streamlining. Each applicant must demonstrate 
eligibility for streamlining by:
    (1) Certifying that it is not a foreign carrier and it is not 
affiliated with a foreign carrier in any of the cable's destination 
markets;
    (2) Demonstrating pursuant to Sec. 63.12(c)(l)(i) through (iii) of 
this chapter that any such foreign carrier or affiliated foreign 
carrier lacks market power; or
    (3) Certifying that the destination market where the applicant is, 
or has an affiliation with, a foreign carrier is a World Trade 
Organization (WTO) Member and the applicant agrees to accept and abide 
by the reporting requirements set out in paragraph (l) of this section. 
An application that includes an applicant that is, or is affiliated 
with, a carrier with market power in a cable's non-WTO Member 
destination country is not eligible for streamlining.
    (l) Reporting Requirements Applicable to Licensees Affiliated with 
a Carrier with Market Power in a Cable's WTO Destination Market. Any 
licensee that is, or is affiliated with, a carrier with market power in 
any of the cable's WTO Member destination countries, and that requests 
streamlined processing of an application under paragraphs (j) and (k) 
of this section, must comply with the following requirements:
    (1) File quarterly reports summarizing the provisioning and 
maintenance of all network facilities and services procured from the 
licensee's affiliate in that destination market, within ninety (90) 
days from the end of each calendar quarter. These reports shall contain 
the following:

[[Page 1622]]

    (i) The types of facilities and services provided (for example, a 
lease of wet link capacity in the cable, collocation of licensee's 
equipment in the cable station with the ability to provide backhaul, or 
cable station and backhaul services provided to the licensee);
    (ii) For provisioned facilities and services, the volume or 
quantity provisioned, and the time interval between order and delivery; 
and
    (iii) The number of outages and intervals between fault report and 
facility or service restoration; and
    (2) File quarterly circuit status reports, within ninety (90) days 
from the end of each calendar quarter and in the format set out by the 
Sec. 43.82 of this chapter annual circuit status manual with the 
exception that activated or idle circuits must be reported on a 
facility-by-facility basis and derived circuits need not be specified. 
See Sec. 63.10(c)(5) of this chapter.
    (m) (1) Except as specified in paragraph (m)(2) of this section, 
amendments to pending applications, and applications to modify a 
license, including amendments or applications to add a new applicant or 
licensee, shall be signed by each initial applicant or licensee, 
respectively. Joint applicants or licensees may appoint one party to 
act as proxy for purposes of complying with this requirement.
    (2) Any licensee that seeks to relinquish its interest in a cable 
landing license shall file an application to modify the license. Such 
application must include a demonstration that the applicant is not 
required to be a licensee under paragraph (h) of this section and that 
the remaining licensee(s) will retain collectively de jure and de facto 
control of the U.S. portion of the cable system sufficient to comply 
with the requirements of the Commission's rules and any specific 
conditions of the license, and must be served on each other licensee of 
the cable system.

    Note to Sec. 1.767: The terms ``affiliated'' and ``foreign 
carrier,'' as used in this section, are defined as in Sec. 63.09 of 
this chapter except that the term ``foreign carrier'' also shall 
include any entity that owns or controls a cable landing station in 
a foreign market.


    3. Add Sec. 1.768 to read as follows:


Sec. 1.768  Notification by and prior approval for submarine cable 
landing licensees that are or propose to become affiliated with a 
foreign carrier.

    Any entity that is licensed by the Commission (``licensee'') to 
land or operate a submarine cable landing in a particular foreign 
destination market that becomes, or seeks to become, affiliated with a 
foreign carrier that is authorized to operate in that market, including 
an entity that owns or controls a cable landing station in that market, 
shall notify the Commission of that affiliation.
    (a) Affiliations requiring prior notification: Except as provided 
in paragraph (b) of this section, the licensee must notify the 
Commission, pursuant to this section, forty-five (45) days before 
consummation of either of the following types of transactions:
    (1) Acquisition by the licensee, or by any entity that controls the 
licensee, or by any entity that directly or indirectly owns more than 
twenty-five percent (25%) of the capital stock of the licensee, of a 
controlling interest in a foreign carrier that is authorized to operate 
in a market where the cable lands; or
    (2) Acquisition of a direct or indirect interest greater than 
twenty-five percent (25%), or of a controlling interest, in the capital 
stock of the licensee by a foreign carrier that is authorized to 
operate in a market where the cable lands, 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 by 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 the destination market 
where the cable lands is 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 a cable landing station or 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 licensee certifies that the destination market 
where the cable lands is a WTO Member and provides certification to 
satisfy either of the following:
    (i) The licensee demonstrates that its foreign carrier affiliate 
lacks market power in the cable's destination market pursuant to 
Sec. 63.10(a)(3) of this chapter (see Sec. 63.10(a)(3) of this 
chapter); or
    (ii) The licensee agrees to comply with the reporting requirements 
contained in Sec. 1.767(l) effective upon the acquisition of the 
affiliation. See Sec. 1.767(l).
    (c) Notification after consummation: Any licensee that becomes 
affiliated with a foreign carrier and has not previously notified the 
Commission pursuant to the requirements of this section shall notify 
the Commission within thirty (30) days after consummation of the 
acquisition.

    Example 1 to paragraph (c).  Acquisition by a licensee (or by 
any entity that directly or indirectly controls, is controlled by, 
or is under direct or indirect common control with the licensee) of 
a direct or indirect interest in a foreign carrier that is greater 
than twenty-five percent (25%) but not controlling is subject to 
paragraph (c) of this section but not to paragraph (a) of this 
section.
    Example 2 to paragraph (c).  Notification of an acquisition by a 
licensee of a hundred percent (100%) interest in a foreign carrier 
may be made after consummation, pursuant to paragraph (c) of this 
section, 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 (25%) interest in the capital stock of the licensee may be 
made after consummation, pursuant to paragraph (c) of this section, 
if the licensee demonstrates in the post-notification that the 
foreign carrier lacks market power in the cable's destination market 
or the licensee agrees to comply with the reporting requirements 
contained in Sec. 1.767(l) 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 the requirements of 
the license granted under Sec. 1.767 or Sec. 1.767(g), the foreign 
carrier notification shall reference in the notification the transfer 
of control or assignment application and the date of its filing. See 
Sec. 1.767(g).
    (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 at the foreign end of the cable in which it is 
authorized to provide telecommunications services to the public or 
where it owns or controls a cable landing station;
    (2) Which, if any, of those countries is a Member of the World 
Trade Organization;
    (3) The name of the cable system that is the subject of the 
notification, and the

[[Page 1623]]

FCC file number(s) under which the license was granted;
    (4) The name, address, citizenship, and principal business of any 
person or entity that directly or indirectly owns at least ten percent 
(10%) of the equity of the licensee, and the percentage of equity owned 
by each of those entities (to the nearest one percent (1%));
    (5) Interlocking directorates. The name of any interlocking 
directorates, as defined in Sec. 63.09(g) of this chapter, with each 
foreign carrier named in the notification. See Sec. 63.09(g) of this 
chapter.
    (6) 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 licensee shall include the projected 
date of closing. In the case of a notification subject to paragraph (c) 
of this section, the licensee shall include the actual date of closing.
    (7) If a licensee 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 licensee is 
relying. Licensees 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 the reporting requirements in paragraph (b)(2)(ii) of this 
section in the notification required by paragraph (c) of this section.
    (f) If the licensee seeks to be excepted from the reporting 
requirements contained in Sec. 1.767(l), the licensee should 
demonstrate that each foreign carrier affiliate named in the 
notification lacks market power pursuant to Sec. 63.10(a)(3) of this 
chapter. See Sec. 63.10(a)(3) of this chapter.
    (g) Procedure. After the Commission issues a public notice of the 
submissions made under this section, interested parties may file 
comments within fourteen (14) 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 reporting requirements on the licensee based on the 
provisions of Sec. 1.767(l). See Sec. 1.767(l).
    (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, or own a cable landing station in, a non-WTO Member, the 
licensee must demonstrate that it continues to serve the public 
interest for it to retain its interest in the cable landing license for 
that segment of the cable that lands in the non-WTO destination market 
by demonstrating either that the foreign carrier lacks market power in 
that destination market pursuant to Sec. 63.10(a)(3) of this chapter or 
the market offers effective opportunities for U.S. companies to land 
and operate a submarine cable in that country. If the licensee is 
unable to make either required showing or is notified that the 
affiliation may otherwise harm the public interest pursuant to the 
Commission's policies and rules under 47 U.S.C. 34 through 39 and 
Executive Order No. 10530, dated May 10, 1954, then the Commission may 
impose conditions necessary to address any public interest harms or may 
proceed to an immediate authorization revocation hearing.

    Note to paragraph (g)(2): The assessment of whether a 
destination market offers effective opportunities for U.S. companies 
to land and operate a submarine cable will be made under the 
standard established in Rules and Policies on Foreign Participation 
in the U.S. Telecommunications Market, Market Entry and Regulation 
of Foreign-Affiliated Entities, IB Docket Nos. 97-142 and 95-22, 
Report and Order and Order on Reconsideration, 12 FCC Rcd 23891, 
23946 at paragraph 130, 62 FR 64741, December 9, 1997.

    (h) All licensees are responsible for the continuing accuracy of 
information provided pursuant to this section for a period of forty-
five (45) days after filing. During this period if the information 
furnished is no longer accurate, the licensee shall as promptly as 
possible, and in any event within ten (10) days, unless good cause is 
shown, file with the Secretary in duplicate a corrected notification 
referencing the FCC file numbers under which the original notification 
was provided.
    (i) A licensee 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 
(20) days after filing. Such a request must be made prominently in a 
cover letter accompanying the filing.

    Note to Sec. 1.768: The terms ``affiliated'' and ``foreign 
carrier,'' as used in this section, are defined as in Sec. 63.09 of 
this chapter except that the term ``foreign carrier'' also shall 
include an entity that owns or controls a cable landing station in a 
foreign market.

[FR Doc. 02-789 Filed 1-11-02; 8:45 am]
BILLING CODE 6712-10-P