[Federal Register Volume 67, Number 131 (Tuesday, July 9, 2002)]
[Rules and Regulations]
[Pages 45387-45392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16738]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 43 and 63

[IB Docket No. 00-231, FCC 02-154]


2000 Biennial Regulatory Review; International Telecommunications 
Service

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document amends several of the Commission's rules 
regarding the provision of international telecommunications service. 
This document also clarifies the intent of certain rules and eliminates 
certain rules that are no longer necessary. This proceeding is part of 
the Commission's year 2000 biennial regulatory review. The rule changes 
will remove unnecessary burdens on the public and the agency.

DATES: Effective August 8, 2002 except for Secs. 43.61, 63.10(d), 
63.18(e)(3), 63.19(a) and (b), 63.20(a), and 63.24(e) and (f) 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. OMB, the general public, and other Federal agencies are 
invited to comment on the information collection requirements on or 
before September 9, 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 
collection contained herein should be submitted to Judith Boley Herman, 
Federal Communications Commission, In addition to filing comments with 
the Secretary, a copy of any comments on the information collections 
contained herein should be submitted to Judith Boley Herman, Federal 
Communications Commission, Room 1-C804, 445 12th Street, SW, 
Washington, DC 20554, or via the Internet to [email protected], and 
Jeanette Thornton, 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 Division, 
International Bureau, (202) 418-1499. For additional information 
concerning the information collections contained in this Order contact 
Judith Boley Herman 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 02-154, released on June 10, 2002. 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://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-154A1.pdf. 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]. This Order 
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 Report and Order

    1. On November 13, 2000, the Commission adopted a Notice of 
Proposed Rulemaking (NPRM) (65 FR 79795, December 20, 2000), 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 solicited 
comments on all of the proposals and tentative conclusions contained in 
the NPRM.
    2. On May 22, 2002, the Commission adopted a Report and Order 
(Order) in this proceeding. The Commission

[[Page 45388]]

amended several of its rules regarding the provision of international 
telecommunications service. In addition, the Commission amended several 
rules to clarify the intent of those rules and to eliminate certain 
rules that no longer have any application. The rule changes will remove 
unnecessary burdens from both the public and the Commission.
    3. The Commission adopted changes to its rules regarding 
assignments and transfers of control of international section 214 
authorizations. The Commission consolidated several rule sections and 
revised the rules for pro forma transfers and assignments to be more 
consistent with those procedures used for other service authorizations, 
particularly commercial mobile radio services (CMRS). The Order permits 
a case-by-case determination of whether a transfer of control or 
assignment is substantial or pro forma in nature based on the guidance 
set forth in previous Commission decisions. The Order will treat a 
change from less than 50 percent ownership to 50 percent or more 
ownership as a transfer of control. For a pro forma transfer or 
assignment of control, a carrier will be required to notify the 
Commission of the new ownership structure within 30 days after the 
change. Licensees will be required to file a notification with the 
Commission within 30 days after consummation of a pro forma assignment 
or transfer of control. The Commission added 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. The Commission concluded that these changes will 
allow greater flexibility to applicants in structuring transactions and 
will provide greater clarity to authorized international carriers 
regarding assignments and transfers of controls.
    4. The Commission adopted its tentative conclusion that it is no 
longer necessary to apply the settlement rate benchmarks condition to 
section 214 authorizations to provide facilities-based international 
private line service. The Commission determined that the application of 
this condition to facilities-based private line service is not 
necessary to prevent carriers from evading the condition as it applies 
to facilities-based switched services.
    5. The Commission modified its rules to relieve international 
carriers of the requirement to seek prior approval for discontinuance 
of service, except where such carriers possess market power on the U.S. 
end of the route. The Commission retained its notification requirement 
whereby carriers must provide affected customers with 60 days notice of 
a planned discontinuance, reduction or impairment of service and file 
with the Commission a copy of the notification. The Commission, 
however, exempted CMRS carriers from the procedures for discontinuances 
of international services
    6. The Commission clarified its rules regarding attribution of 
indirect ownership interests in U.S. and foreign carriers. In addition, 
the Order eliminated the rule which requires dominant carriers to 
notify the Commission if they convey transmission capacity on submarine 
cables to another U.S. carrier. Because the time period has expired, 
the Commission deleted the requirement that certain foreign-owner 
carriers file with the Commission annual revenue and traffic reports 
with respect to all common carrier telecommunication services they 
offered in the United States in 1988, 1989, and 1990. Further, the 
Commission clarified its rulest that a facilities-based carrier may 
provide service over U.S. facilities that are not subject to 
authorization by the Commission, as long as those facilities are not on 
the Commission's ``Exclusion List for International Section 214 
Authorizations'' (Exclusion List). Also, the Commission removed from 
Sec. 63.22(b) the general reference to a list of countries in the 
Exclusion List.
    7. The Order also removes duplicative notes contained in 
Sec. 63.18. The Order deleted the obsolete language that required U.S. 
international carriers to file applications to supplement already-
authorized facilities. In addition, the Order amended Sec. 63.10(d) and 
63.53(b) to eliminate the requirement that certain documents be 
submitted on computer diskettes because the Commission permits 
electronic filing.
    8. The Commission exempted CMRS carriers providing resale of 
international switched services from filing quarterly traffic and 
revenue reports for their service to foreign markets where they are 
affiliated with a foreign carrier with market power in that market and 
that collects settlement payments from U.S. carriers. The Commission 
declined the commenters' request to eliminate the quarterly traffic and 
revenue data reporting requirements for carriers that meet certain 
traffic thresholds. The Commission did not consider Verizon's request 
to change the affiliation notification procedures because Verizon's 
request was addressed in a previous decision. Although the Commission 
did not eliminate the requirement that carriers inform the Commission 
of their interlocking directorates with foreign carriers, it clarified 
this requirement. The Commission declined to expand the reach of 
Sec. 63.21(i) to commonly controlled subsidiaries. The Commission 
concluded that once a Bell Operating Company receives section 271 
authority to provide InterLATA service in one state in its region it 
does not need to amend its section 214 international authorization when 
it gains section 271 authority for additional states.

Procedural Matters

    9. Paperwork Reduction Act. The Order contained new or 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 Notice, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due September 9, 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-XXXX.
    Title: Amendment of Parts 43 and 63 of the Commission's Rules for 
International Telecommunications Services (IB Docket No. 00-231).
    Form Number: N/A.
    Type of Review: New collection.
    Respondents: Business and other for-profit entities.
    Number of Respondents: 149.
    Number of Responses: 190.
    Frequency of Response: On Occasion. Third party disclosure.
    Total Annual Burden: 263 burden hours.
    Total Annual Costs: $72,000.
    Needs and Uses: The information will be used by the Commission 
staff in carrying out its duties under the Communications Act. The 
information collections are necessary to determine the qualifications 
of applicants to provide common carrier international 
telecommunications service, including applicants that are affiliated 
with foreign carriers, and to determine whether and under what 
conditions the authorizations are in the public interest,

[[Page 45389]]

convenience, and necessity. The information collections are necessary 
to maintain effective oversight of U.S. international carriers 
generally. The notification requirements will ensure that the 
Commission's records accurately reflect the identity of every 
authorized carrier as well as other needed information.
    10. Final Regulatory Flexibility Certification. The Regulatory 
Flexibility Act of 1980, as amended (RFA), requires that a regulatory 
flexibility analysis be prepared for rulemaking proceedings, unless the 
agency certifies that ``the rule will not have a significant economic 
impact on a substantial number of small entities.'' The RFA generally 
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 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 
Small Business Administration (SBA). An Initial Regulatory Flexibility 
Analysis (IRFA) was incorporated in the NPRM. See 2000 Biennial 
Regulatory Review, IB Docket 00-231 (65 FR 79795, December 20, 2000). 
The Commission sought written public comment on the proposals in the 
NPRM, including comment on the IRFA. No comments were received on the 
IRFA.
    11. 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 public interest. The 
Commission identified a number of rules that could be modified or 
eliminated in light of competition in international telecommunications 
services. The Commission also identified a number of rules that could 
be clarified to make it easier for practitioners and other members of 
the public to understand and follow those rules. Commenters not only 
supported the proposals contained in the NPRM, but they requested 
changes to several other rules.
    12. We believe that these changes are in the public interest and 
will remove unnecessary burdens on the public and the Commission. The 
rules and policies contained in the Order will benefit all carriers 
providing international common carrier service pursuant to Section 214 
of the Act, regardless of whether the carrier is a small entity.
    13. The Order adopts changes to the rules regarding assignments and 
transfers of control of international section 214 authorizations. In 
particular the Order consolidates the rules into one rule section, and 
it revises the rules for pro forma transfers and assignments to be more 
consistent with those procedures currently used for other service 
authorizations, particularly commercial mobile radio services (CMRS). 
The changes will eliminate confusion over our rules regarding 
assignments and transfers of control. Also, the rules will provide 
greater flexibility for all applicants, including small entities, in 
structuring transactions. The modifications to the rules eliminate 
filing requirements on small entities and, therefore, do not pose a 
significant economic impact on such entities.
    14. The Order also removes the benchmark condition applicable to 
section 214 authorizations that provide facilities-based international 
private line service. The Commission adopted this condition for 
facilities-based switched service to affiliated markets to address the 
potential for a carrier to engage in a predatory price squeeze. We 
believe the condition is no longer necessary to prevent carriers from 
evading the condition as it applies to facilities-based switched 
service. We find that this condition is burdensome to carriers and 
could prevent the development of innovative services. We believe that 
removal of this specific condition will be in the public interest, and 
it will not impose a significant economic impact on small entities.
    15. The Order also relieves international carriers of the 
requirement to seek prior approval for discontinuance of service, 
except where such carriers possess market power on the U.S. end of the 
route. The Order retains a notification requirement to provide 
customers with sufficient time to obtain an alternative service 
provider before service is discontinued. The Commission, however, 
exempted CMRS carriers from the procedures for discontinuances of 
international services. Currently the rules require prior notification 
of discontinuances of service by U.S. carriers regulated as dominant. 
We do not believe that the dominant and nondominant classification 
should be used in determining criteria for requiring prior approval. 
Rather, the Commission believes that prior approval should be required 
only for carriers possessing market power on the U.S. end of the route. 
This modification clarifies the carriers subject to the rule, and it 
removes the burdensome prior notification procedure for certain 
carriers while protecting customers from abrupt discontinuances of 
service. We do not believe that this change will impose any significant 
economic impact on small entities.
    16. The Order clarifies other rules and eliminates rules that are 
no longer necessary, duplicative, or obsolete. In addition, the Order 
eliminates many procedural burdens placed on all entities. The measures 
contained in the Order are administrative and procedural changes 
designed to further streamline and simplify the rules for international 
telecommunications carriers, and there will be no significant impact 
imposed on small entities.
    17. Therefore, we certify that none of the requirements of the 
Order will have a significant economic impact on a substantial number 
of small entities.
    18. Report to Congress: The Commission will send a copy of the 
Order, including a copy of the Final Regulatory Flexibility 
Certification, in a report to Congress pursuant to the Congressional 
Review Act, 5 U.S.C. 801(a)(1)(A). In addition, the Order and this 
Certification will be sent to the Chief Counsel for Advocacy of the 
Small Business Administration and will be published in the Federal 
Register, 5 U.S.C. 605(b).

Ordering Clauses

    19. Pursuant to the authority contained in 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, this Report and Order in 
IB Docket No. 00-231 is hereby adopted.
    20. Parts 43 and 63 of the Commission's rules are amended as set 
forth in the Rule Changes. These amendments and policy changes set 
forth in this Report and Order shall be effective August 8, 2002, 
except for Secs. 43.61, 63.10(d), 63.18(e)(3), 63.19(a) and (b), 
63.20(a), and 63.24(e) and (f) 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.
    21. The Commission's Consumer Information and Government Affairs 
Bureau, Reference Information Center, shall send a copy of this order, 
including the Final Regulatory Flexibility Act Certification, to the 
Chief Counsel for Advocacy of the Small Business Administration.

[[Page 45390]]

List of Subjects in 47 CFR Parts 43 and 63

    Communications common carriers, Reporting and recordkeeping 
requirements.

    Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rule

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 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, Pub. 
L. 104-104, secs. 402 (b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.

    2. Section 43.61 is amended by revising paragraph (c) to read as 
follows:


Sec. 43.61  Reports of international telecommunications traffic.

* * * * *
    (c) Each common carrier engaged in the resale of international 
switched services that is affiliated with a foreign carrier that has 
sufficient market power on the foreign end of an international route to 
affect competition adversely in the U.S. market and that collects 
settlement payments from U.S. carriers shall file a quarterly version 
of the report required in paragraph (a) of this section for its 
switched resale services on the dominant route within 90 days from the 
end of each calendar quarter. Commercial Mobile Radio Service (CMRS) 
carriers, as defined in Sec. 20.9 of this chapter, are not required to 
file reports pursuant to this paragraph. For purposes of this 
paragraph, affiliated and foreign carrier are defined in Sec. 63.09 of 
this chapter.


Sec. 43.81  [Removed].

    3. 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

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

    Authority: Sections 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.

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


Sec. 63.09  Definitions applicable to international Section 214 
authorizations.

* * * * *

    Note 2: Ownership and other interests in U.S. and foreign 
carriers will be attributed to their holders and deemed cognizable 
pursuant to the following criteria: Attribution of ownership 
interests in a carrier that are held indirectly by any party through 
one or more intervening corporations will be determined by 
successive multiplication of the ownership percentages for each link 
in the vertical ownership chain and application of the relevant 
attribution benchmark to the resulting product, except that wherever 
the ownership percentage for any link in the chain that is equal to 
or 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 because A's interest in X is less than 50 
percent). Under the 25 percent attribution benchmark, X's interest 
in ``carrier''' would be cognizable, while A's interest would not be 
cognizable.


    6. Section 63.10 is amended by revising paragraphs (d) and (e) 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).
    (e) Except as otherwise ordered by the Commission, a carrier that 
is classified as dominant under this section for the provision of 
facilities-based services on a particular route and that is affiliated 
with a carrier that collects settlement payments for terminating U.S. 
international switched traffic at the foreign end of that route may not 
provide switched facilities-based service on that route unless the 
current rates the affiliate charges U.S. international carriers to 
terminate traffic are at or below the Commission's relevant benchmark 
adopted in IB Docket No. 96-261. See FCC 97-280 (rel. Aug. 18, 1997) 
(available at the FCC's Reference Operations Division, Washington, D.C. 
20554, and on the FCC's World Wide Web Site at http://www.fcc.gov).
    7. Section 63.17 is amended by revising paragraph (b)(4) to read as 
follows:


Sec. 63.17  Special provisions for U.S. international common carriers.

* * * * *
    (b) *  *  *
    (4) No U.S. common carrier may engage in switched hubbing to or 
from a third country where it has an affiliation with a foreign carrier 
unless and until it has received authority to serve that country under 
Sec. 63.18(e)(1), (e)(2), or (e)(3).

    8. Section 63.18 is amended by removing paragraph (e)(3), 
redesignating paragraph (e)(4) as paragraph (e)(3), revising newly 
redesignated paragraph (e)(3) and paragraph (g), and by adding a Note 
to paragraph (h) to read as follows:


Sec. 63.18  Contents of applications for international common carriers.

* * * * *
    (e) *  *  *
    (3) Other authorizations. If applying for authority to acquire 
facilities or to provide services not covered by paragraphs (e)(1) and 
(e)(2) of this section, the applicant shall provide a description of 
the facilities and services for which it seeks authorization. The 
applicant shall certify that it will comply with the terms and 
conditions contained in Sec. 63.21 and Sec. 63.22 and/or Sec. 63.23, as 
appropriate. Such description also shall include any additional 
information the Commission shall have specified previously in an order, 
public notice or other official action as necessary for authorization.
* * * * *
    (g) Where the applicant is seeking facilities-based authority under 
paragraph (e)(3) of this section, a statement whether an authorization 
of the facilities is categorically excluded as defined by Sec. 1.1306 
of this chapter. If answered affirmatively, an environmental assessment 
as described in Sec. 1.1311 of this chapter need not be filed with the 
application.
    (h) *  *  *

    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

[[Page 45391]]

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 that is 
equal to or 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 because A's interest 
in X is less than 50 percent). Under the 25 percent attribution 
benchmark, X's interest in ``carrier'' would be cognizable, while 
A's interest would not be cognizable.

* * * * *

    9. 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 
paragraphs (b) and (c) 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, but does not 
discontinue, reduce or impair the dominant services being provided 
through these facilities, 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 impair or reduce the service, the carrier shall file an 
application pursuant to Secs. 63.62 and 63.500.
    (c) Commercial Mobile Radio Service (CMRS) carriers, as defined in 
Sec. 20.9 of this chapter, are not subject to the provisions of this 
section.


    10. 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]

    11. Section 63.21 is amended by removing paragraph (h) and 
redesignating paragraphs (i) and (j) as paragraphs (h) and (i).

    12. Section 63.22 is amended by revising paragraphs (a), (b) and 
(c) to read as follows:


Sec. 63.22  Facilities-based international common carriers.

* * * * *
    (a) A carrier authorized under Sec. 63.18(e)(1) may provide 
international facilities-based services to international points for 
which it qualifies for non-dominant regulation as set forth in 
Sec. 63.10, except in the following circumstance: If the carrier is, or 
is affiliated with, a foreign carrier in a destination market and the 
Commission has not determined that the foreign carrier lacks market 
power in the destination market (see Sec. 63.10(a)), the carrier shall 
not provide service on that route unless it has received specific 
authority to do so under Sec. 63.18(e)(3).
    (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.
    (c) Specific authority under Sec. 63.18(e)(3) is required for the 
carrier to provide service using any facilities listed on the exclusion 
list, to provide service between the United States and any country on 
the exclusion list, or to construct, acquire, or operate lines in any 
new major common carrier facility project.
* * * * *

    13. Section 63.23 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec. 63.23  Resale-based international common carriers.

* * * * *
    (a) A carrier authorized under Sec. 63.18(e)(2) may provide resold 
international services to international points for which the applicant 
qualifies for non-dominant regulation as set forth in Sec. 63.10, 
except that the carrier may not provide either of the following 
services unless it has received specific authority to do so under 
Sec. 63.18(e)(3):
    (1) Resold switched services to a non-WTO Member country where the 
applicant is, or is affiliated with, a foreign carrier; and
    (2) Switched or private line services over resold private lines to 
a destination market where the applicant is, or is affiliated with, a 
foreign carrier and the Commission has not determined that the foreign 
carrier lacks market power in the destination market (see 
Sec. 63.10(a)).
    (b) The carrier may not resell the international services of an 
affiliated carrier regulated as dominant on the route to be served 
unless it has received specific authority to do so under 
Sec. 63.18(e)(3).
* * * * *

    14. Section 63.24 is revised 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.

[[Page 45392]]

    (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 percent 
ownership to 50 percent 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 with reference to the factors listed in the Note to this 
paragraph (c).

    Note to Paragraph (c): Because the issue of control inherently 
involves issues of fact, it must be determined on a case-by-case 
basis and may vary with the circumstances presented by each case. 
The factors relevant to a determination of control in addition to 
equity ownership include, but are not limited to the following: 
power to constitute or appoint more than fifty percent of the board 
of directors or partnership management committee; authority to 
appoint, promote, demote and fire senior executives that control the 
day-to-day activities of the licensee; ability to play an integral 
role in major management decisions of the licensee; authority to pay 
financial obligations, including expenses arising out of operations; 
ability to receive monies and profits from the facility's 
operations; and unfettered use of all facilities and equipment.

    (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 this paragraph (d). The types of transactions listed in 
Note 2 to this paragraph (d) shall be considered presumptively pro 
forma and prior approval from the Commission need not be sought.

    Note 1 to Paragraph (d): Because the issue of control inherently 
involves issues of fact, it must be determined on a case-by-case 
basis and may vary with the circumstances presented by each case. 
The factors relevant to a determination of control in addition to 
equity ownership include, but are not limited to the following: 
power to constitute or appoint more than fifty percent of the board 
of directors or partnership management committee; authority to 
appoint, promote, demote and fire senior executives that control the 
day-to-day activities of the licensee; ability to play an integral 
role in major management decisions of the licensee; authority to pay 
financial obligations, including expenses arising out of operations; 
ability to receive monies and profits from the facility's 
operations; and unfettered use of all facilities and equipment.


    Note 2 to Paragraph (d): If a transaction is one of the types 
listed further, 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. 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; 
Assignment from a corporation to its individual stockholders without 
effecting any substantial change in the disposition of their 
interests; Assignment or transfer by which certain stockholders 
retire and the interest transferred is not a controlling one; 
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); 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 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 shall 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 an original and five copies to the Office of the 
Secretary) and shall identify the file numbers under which the initial 
authorization and the authorization of the assignment or transfer of 
control were granted.
    (f) Notifications for non-substantial or pro forma transactions. 
(1) In the case of a pro forma assignment or transfer of control, the 
section 214 authorization holder is not required to seek prior 
Commission approval.
    (2) A pro forma assignee or carrier that is subject to a pro forma 
transfer of control shall file a notification with the Commission no 
later than 30 days after the assignment or transfer is completed. The 
notification may be made by letter (sending an original and five copies 
to the Office of the Secretary). The notification 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) A single letter may be filed for an assignment or transfer of 
control of more than one authorization if each authorization is 
identified by the file number under which it was granted.
    (4) Upon release of a public notice granting a pro forma assignment 
or transfer of control, petitions for 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 this paragraph (f).
    (g) Involuntary assignments or transfers of control. In the case of 
an involuntary assignment or transfer of control to: a bankruptcy 
trustee appointed under involuntary bankruptcy; an independent receiver 
appointed by a court of competent jurisdiction in a foreclosure action; 
or, in the case of death or legal disability, to a person or entity 
legally qualified to succeed the deceased or disabled person under the 
laws of the place having jurisdiction over the estate involved; 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]

    15. Section 63.53 is amended by removing paragraph (b) and 
redesignating paragraph (c) as paragraph (b).
[FR Doc. 02-16738 Filed 7-8-02; 8:45 am]
BILLING CODE 6712-01-P