[Federal Register Volume 69, Number 82 (Wednesday, April 28, 2004)]
[Rules and Regulations]
[Pages 23151-23155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9505]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0, 43, 63, and 64

[IB Docket Nos. 02-324 and 96-261, FCC 04-53]


In the Matter of International Settlements Policy Reform and 
International Settlement Rates

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document is a summary of the Report and Order adopted by 
the Commission in this proceeding. The Commission exempted the 
application of the International Settlements Policy (ISP) from U.S.-
international routes that complied with its Benchmarks Policy. The 
Commission also eliminated its International Simple Resale (ISR) 
Policy. The Commission maintained the application of its Benchmarks 
Policy to all U.S.-international routes. The Commission committed to 
developing and releasing a Notice of Inquiry regarding the nature and 
effect of high foreign mobile termination rates on U.S. consumers.

DATES: Effective May 28, 2004 except for Sec. Sec.  43.51(d), 43.51(e), 
64.1001, and 64.1002(c) which contain information requirements that 
have not yet been approved by Office of Management and Budget (OMB). 
The Commission will publish a document in the Federal Register 
announcing the effective date of those sections. OMB, the general 
public, and other Federal agencies are invited to comment on the 
information collection requirements on or before June 28, 2004.

ADDRESSES: In addition to filing comments with the Secretary, a copy of 
any comments on the information collections contained herein should be 
submitted to Judith B. Herman, Federal Communications Commission, Room 
1-C804, 445 12th Street, SW., Washington, DC 20554, or via the Internet 
to [email protected], and to Kristy L. LaLonde, OMB Desk Officer, 
Room 10236 NEOB, 725 17th Street, NW., Washington, DC 20503 or via the 
Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: James Ball, Chief, Policy Division, 
International Bureau, or Alexandra Field, Assistant Chief, Policy 
Division, International Bureau at (202) 418-1460. For additional 
information regarding the Paperwork Reduction Act information 
collections contact Judith B. Herman at 445 12th Street SW., Rm. 1-
C804, Washington, DC, 20554 or via internet at [email protected]; 
phone (202) 418-0214.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in IB Docket No. 96-261 & 02-324; FCC 04-53, adopted March 
11, 2004 and released on March 30, 2004. The full text of this 
Commission decision is available for inspection and copying during 
normal business hours in the FCC Reference Center (Room CY-A257), 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-04-53A1.pdf. The complete text may also be 
purchased from the Commission's copy contractor, Qualex International, 
in person at 445 12th Street, SW., Room CY-B402, Washington, DC 20554, 
via telephone at (202) 863-2893, via facsimile at (202) 863-2898, or 
via e-mail at [email protected]. This Report and Order contains new or 
modified information collections subject to the Paperwork Reduction Act 
of 1995 (PRA), Public Law 104-3. It will be submitted to the Office of 
Management and Budget (OMB) for review under section 3507(d) of the 
PRA. OMB, the general public, and other Federal agencies are invited to 
comment on the modified information collections contained in this 
proceeding.

Summary of Report and Order

    On October 10, 2002, the Commission adopted a Notice of Proposed 
Rulemaking in this proceeding 67 FR 65527 (Oct. 25, 2002) to obtain 
comment on proposals to modify the application of its International 
Settlements Policy (ISP), the competitive status of the U.S.-
international telecommunications market, the success and effectiveness 
of Benchmarks Policy, and the issue of foreign mobile termination 
rates. On March 11, 2004 the Commission adopted a Report and Order in 
this proceeding. In the Report and Order, the Commission finds that the 
U.S.-international telecommunications market has been undergoing 
changes in recent years. There has been increasing competition on many 
U.S.-international routes accompanied by lower settlement rates and 
calling prices to U.S. customers. There also exists the potential for 
further development of competition as a result of emerging means of 
routing international traffic that do not involve the traditional 
carrier settlement process. At the same time, settlement rates on most 
routes continue to be above cost and there exists the continued 
potential for anticompetitive conduct and other forms of market 
failure. On balance, the Commission finds that the changes now 
unfolding in the U.S.-international market permit us to adopt a more 
limited application of our regulatory framework accompanied by 
competitive safeguards to protect U.S. customers against 
anticompetitive behavior. The Commission stated that, where there is 
vigorous competition, market forces are causing international 
termination rates to move toward cost on many routes.
    The Commission concludes that reforming our rules to remove our 
International Settlements Policy (ISP)

[[Page 23152]]

from benchmark-compliant routes will give U.S. carriers greater 
flexibility to negotiate arrangements with foreign carriers. The 
Commission finds that doing so will encourage market-based arrangements 
between U.S. and foreign carriers that will further our long-standing 
policy goals of greater competition in the U.S.-international market 
and more cost-based rates for U.S. customers. Furthermore, in view of 
the Commission action removing the ISP from benchmark-compliant routes, 
this Report and Order eliminates the Commission's International Simple 
Resale (ISR) policy and associated filing requirements. The Commission 
also retains and clarifies the applicability of certain regulatory 
safeguards to protect U.S. customers from anticompetitive conduct 
should it occur in the future. Moreover, it retains its benchmarks 
policy but plans to subject it to further evaluation as to whether 
future modifications are warranted. Finally, the Commission is 
concerned about the increasingly high mobile termination rates that are 
being charged to U.S. carriers and their effect on U.S. consumers. 
Accordingly, the Commission decided to continue to evaluate the nature 
and effect of mobile termination rates on U.S. customers and commits to 
issuing a Notice of Inquiry seeking detailed information on the issue 
and what responses are available to the Commission. In addition, the 
Commission will continue to respond to carrier complaints in this area 
if foreign mobile termination rates charged to U.S. carriers are not 
consistent with its general accounting rate principles.

Procedural Matters

Paperwork Reduction Act

    This Report and Order contains modified information collections. 
The Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public to comment on the information 
collections contained in this Report and Order as required by the 
Paperwork Reduction Act of 1995, Public Law 104-13. Public and agency 
comments are due June 28, 2004. PRA comments should address: (a) 
Whether the proposed collection of information is necessary for the 
proper performance of the function of the Commission, including whether 
the information shall have practical utility; (b) the accuracy of the 
Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    OMB Approval Number: 3060-0454.
    Title: Regulation of International Accounting Rates.
    Form No.: N/A.
    Type of Collection: Revision of a currently approved collection.
    Respondents: Business or other for-profit.
    Number of Respondents: 5.
    Estimated Time for Response: 1 hour.
    Frequency of Reponse: On Occasion, annual reporting requirement.
    Total Annual Burden: 150 hours.
    Total Annual Cost: $7,000.
    Needs and Uses: The information will be used by the Federal 
Communications Commission (FCC) and interested members of the public to 
monitor the international accounting rates to ensure that the public 
interest is being served and also to enforce Commission policies and 
rules.

Final Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act of 1980, as amended (RFA), requires 
that a regulatory flexibility analysis be prepared for notice-and-
comment rule making proceedings, unless the agency certifies that ``the 
rule will not, if promulgated, have a significant economic impact on a 
substantial number of small entities.'' See 5 U.S.C. 601-612, the RFA 
has been amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA), Public Law No. 104-121, Title II, 110 Stat. 857 
(1996). 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. See 5 U.S.C. 601(3) 
(incorporating by reference the definition of ``small-business 
concern'' in the Small Business Act, 15 U.S.C. 632). Pursuant to 5 
U.S.C. 601(3), the statutory definition of a small business applies 
``unless an agency, after consultation with the Office of Advocacy of 
the Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 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 U.S. Small Business Administration (SBA). 
See 15 U.S.C. 632.
    Pursuant to the RFA, the Commission incorporated an Initial 
Regulatory Flexibility Analysis (IRFA) into the Notice of Proposed 
Rulemaking. (17 FCC Rcd at 19982 & 19986-89 paragraphs 53 & 68-78.) We 
received no comments in response to the IRFA. For the reasons described 
below, we now certify that the policies and rules adopted in the 
present Report and Order will not have a significant economic impact on 
a substantial number of small entities.
    The Report and Order finds that the changes now unfolding in the 
U.S.-international market permits it to adopt a more limited 
application of our regulatory framework accompanied by competitive 
safeguards to protect U.S. customers against anticompetitive behavior. 
The Commission continues to believe that, where there is vigorous 
competition, market forces are causing international termination rates 
to move toward cost on many routes. It concludes that reforming its 
rules to remove the International Settlements Policy (ISP) from 
benchmark-compliant routes will give U.S. carriers greater flexibility 
to negotiate arrangements with foreign carriers. The Commission 
believes that doing so will encourage market-based arrangements between 
U.S. and foreign carriers that will further its long-standing policy 
goals of greater competition in the U.S.-international market and more 
cost-based rates for U.S. customers. The Commission has decided to 
retain the benchmarks policy subject to evaluation as to future 
modifications. It similarly will continue to evaluate the nature and 
effect of high foreign mobile termination rates on U.S. customers. It 
concludes that the record before us regarding future benchmarks policy 
and on foreign mobile termination rates is insufficient to warrant 
specific Commission action at this time.
    The Report and Order requires that the ISP be removed from all 
U.S.-international routes that are benchmark-compliant and affirms, 
adopts, or modifies certain competitive safeguards to prevent potential 
anticompetitive harm on such routes. The rules and policies contained 
in the Report and Order apply to all carriers providing facilities-
based international common carrier service pursuant to section 214 of 
the Act. It is uncertain as to the number of small entities that will 
be affected by the proposals. Agency data indicate the number of 
section 214 applications filed with the Commission continues to 
increase each year. The total number of licensees is difficult to

[[Page 23153]]

determine, because many licenses are jointly held by several licensees. 
The Report and Order will reduce the administrative burden on all 
carriers, both small and large, of complying with the ISP and contract 
and accounting rate filing costs. The Report and Order reduces the 
filing of carrier-to-carrier contracts contained in section 43.51. The 
Report and Order clarifies that section 43.51 applies solely to U.S. 
carrier contracts for international common carrier service involving 
dominant foreign carriers on routes where the ISP applies. The 
Commission narrows the contract filing requirement and clarifies that 
rate filings need not be made for routes removed from the ISP. These 
modified filing requirements will eliminate many current-required 
contract filings and rate filings currently made by all U.S.-
international facilities-based carriers, including small entities, in 
the normal course of business; and therefore, do not impose a 
significant economic impact on these small entities. In this Report and 
Order, we adopt one of the proposals set forth in the NPRM and 
determine that removing the ISP from additional U.S.-international 
routes will give U.S.-international facilities-based carriers the 
flexibility necessary to respond to dynamic price and service changes 
in the marketplace and will best protect U.S. customers from the rates, 
terms and conditions that violate the Communications Act.

Ordering Clauses

    Pursuant to Sections 1, 4(i)-4(j), 201-205, 214, 303(r), and 309 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i)-
154(j), 201-205, 214, 303(r), 309, the policies, rules, and 
requirements discussed herein are adopted and parts 43 and 63 of the 
Commission's rules, 47 CFR 0, 43, 63, and 64 are amended as specified 
in the rule changes, effective May 28, 2004. Except for Sec. Sec.  
43.51(d), 43.51(e), 64.1001 and 64.1002(c) which contain information 
requirements that have not yet been approved by Office of Management 
and Budget (OMB). The Commission will publish a document in the Federal 
Register announcing the effective date of those sections.
    The Commission's Consumer and Government Affairs Bureau, Reference 
Information Center, SHALL SEND a copy of this Report and Order, 
including the Final Regulatory Flexibility Certification, to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with section 603(a) of the Regulatory Flexibility Act, 5 U.S.C. 601 et 
seq.
    The policies, rules, and requirements established in this decision 
shall take effect thirty days after publication in the Federal Register 
or in accordance with the requirements of 5 U.S.C. 801(a)(3) and 44 
U.S.C. 3507.

List of Subjects in 47 CFR Parts 0, 43, 63, and 64

    Communications and common carriers; reporting and recordkeeping 
requirements; Telecommunications.

The Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

0
Parts 0, 43, 63, and 64 of the Commission rules are amended as follows:

PART 0--COMMISSION ORGANIZATION

0
1. The authority citation for part 0 continues to read as follows:

    Authority: Sec. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155.


Sec.  0.457  [Amended]

0
2. Section 0.457 is amended by removing paragraph (d)(1)(vi).

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

0
3. 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.


0
4. Section 43.51 is amended by revising paragraphs (b)(2), (b)(3), (d) 
and (e), and adding Note 4 to Sec.  43.51 to read as follows:


Sec.  43.51  Contracts and concessions.

* * * * *
    (b) * * *
    (2) A carrier that is engaged in foreign communications and that 
has been classified as dominant for any service on any of the U.S.-
international routes included in the contract, except for a carrier 
classified as dominant on a particular route due only to a foreign 
carrier affiliation under Sec.  63.10 of this chapter, or
    (3) A carrier, other than a provider of commercial mobile radio 
services, that is engaged in foreign communications and enters into a 
contract, agreement, concession, license, authorization, operating 
agreement or other arrangement and amendments thereto with a foreign 
carrier that does not qualify for the presumption, set forth in Note 3 
to this section, that it lacks market power on the foreign end of one 
or more of the U.S.-international routes included in the contract, 
unless the route appears on the Commission's list of U.S.-international 
routes that the Commission has exempted from the international 
settlements policy set forth in Sec.  64.1002 of this chapter.
* * * * *
    (d) Any U.S. carrier that interconnects to the U.S. public switched 
network an international private line that extends between the United 
States and a country that the Commission has not exempted from the 
international settlements policy shall file annually with the Chief of 
the International Bureau a certified statement containing the number 
and type (e.g., a 64-kbps circuit) of private lines interconnected at 
the carrier's own switch, including any switch in which the carrier 
holds a leasehold interest. The certified statement shall specify the 
number and type of interconnected private lines on a country specific 
basis. The identity of the customer need not be reported, and the 
Commission will treat the country of origin information as 
confidential. Carriers need not file their contracts for such 
interconnections, unless they are specifically requested to do so. 
These reports shall be filed on a consolidated basis on February 1 
(covering international private lines interconnected during the 
preceding January 1 to December 31 period) of each year. International 
private lines to countries which the Commission has exempted from the 
international settlements policy, set forth in Sec.  64.1002 of this 
chapter, at any time during a particular reporting period are exempt 
from this filing requirement.
    (e) Other filing requirements for carriers providing service on 
U.S.-international routes that are subject to the international 
settlements policy.
    (1) For routes subject to the international settlements policy set 
forth in Sec.  64.1002 of this chapter, if a U.S. carrier files an 
operating or other agreement with a foreign carrier pursuant to 
paragraph (a) of this section to begin providing switched voice, telex, 
telegraph, or packet-switched service between the United States and a 
foreign point, the carrier must also file with the International Bureau 
a modification request under Sec.  64.1001 of this chapter. The 
operating or other agreement cannot become effective until the 
modification request has been granted under paragraph Sec.  64.1001(e) 
of this chapter.
    (2) For routes subject to the international settlements policy, if 
a carrier files an amendment, pursuant to

[[Page 23154]]

paragraph (a) of this section, to an existing operating or other 
agreement with a foreign carrier to provide switched voice, telex, 
telegraph, or packet-switched service between the United States and a 
foreign point, and the amendment relates to the exchange of services, 
interchange or routing of traffic and matters concerning rates, 
accounting rates, division of tolls, the allocation of return traffic, 
or the basis of settlement of traffic balances, the carrier must also 
file with the International Bureau a modification request under Sec.  
64.1001 of this chapter. The amendment to the operating or other 
agreement cannot become effective until the modification request has 
been granted under Sec.  64.1001(e) of this chapter.
* * * * *

    Note 4 to Sec.  43.51: The Commission's list of international 
routes exempted from the international settlements policy is 
available on the International Bureau's World Wide Web site at 
http://www.fcc.gov/ib.

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

0
5. 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.


Sec.  63.12  [Amended]

0
6. Section 63.12 is amended by removing paragraph (c)(3) and 
redesignating (c)(4) as paragraph (c)(3).

0
7. Section 63.14 is amended by revising paragraph (c) to read as 
follows:


Sec.  63.14  Prohibition on agreeing to accept special concessions.

* * * * *
    (c) This section shall not apply to the rates, terms and conditions 
in an agreement between a U.S. carrier and a foreign carrier that 
govern the settlement of U.S. international traffic, including the 
method for allocating return traffic, if the U.S. international route 
is exempt from the international settlements policy set forth in Sec.  
64.1002 of this chapter.


    Note to Paragraph (c): The Commission's list of international 
routes exempted from the international settlements policy is 
available on the International Bureau's World Wide Web site at 
http://www.fcc.gov/ib.

Sec.  63.16  [Removed]

0
8. Section 63.16 is removed.

0
9. Section 63.17 is amended by revising paragraphs (b) introductory 
text, (b)(1), and (b)(2) to read as follows:


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

* * * * *
    (b) Except as provided in paragraph (b)(4) of this section, a U.S. 
common carrier, whether a reseller or facilities-based carrier, may 
engage in ``switched hubbing'' to countries that do not appear on the 
list of U.S. international routes exempted from the international 
settlements policy, set forth in Sec.  64.1002 of this chapter provided 
the carrier complies with the following conditions:
    (1) U.S.-outbound switched traffic shall be routed over the 
carrier's authorized U.S. international circuits extending between the 
United States and a country that is exempt from the international 
settlements policy (i.e., the ``hub'' country), and then forwarded to 
the third country only by taking at published rates and reselling the 
international message telephone service (IMTS) of a carrier in the hub 
country;
    (2) U.S.-inbound switched traffic shall be carried to a country 
that is exempt from the international settlements policy (i.e., the 
``hub'' country) as part of the IMTS traffic flow from a third country 
and then terminated in the United States over the carrier's authorized 
U.S. international circuits extending between the United States and the 
hub country.
* * * * *

    Note to Paragraph (b): The Commission's list of international 
routes exempted from the international settlements policy is 
available on the International Bureau's World Wide Web site at 
http://www.fcc.gov/ib.

Sec.  63.22  [Amended]

0
10. Section 63.22 is amended by removing paragraph (e) and 
redesignating paragraphs (f) and (g) as paragraphs (e) and (f).

0
11. Section 63.23 is amended by revising paragraph (d) to read as 
follows:


Sec.  63.23  Resale-based international common carriers.

* * * * *
    (d) The carrier may provide switched basic services over its 
authorized resold private lines in either of the following two 
circumstances:
    (1) The country at the foreign end of the private line appears on 
the Commission's list of international routes exempted from the 
international settlements policy set forth in Sec.  64.1002 of this 
chapter; or
    (2) The carrier is exchanging switched traffic with a foreign 
carrier that lacks market power in the country at the foreign end of 
the private line. A foreign carrier lacks market power for purposes of 
this section if it does not appear on the Commission's list of foreign 
carriers that do not qualify for the presumption that they lack market 
power in particular foreign points.


    Note to Paragraph (d): The Commission's list of international 
routes exempted from the international settlements policy, and the 
Commission's list of foreign carriers that do not qualify for the 
presumption that they lack market power in particular foreign points 
are available on the International Bureau's World Wide Web site at 
http://www.fcc.gov/ib.

* * * * *

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

0
12. The authority citation for part 64 continues to read as follows:

    Authority: 47 U.S.C. 154, 254(k); secs. 403(b)(2)(B), (c), 
Public Law 104-104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 
218, 225, 226, 228, and 254(k) unless otherwise noted.

0
13. Section 64.1001 is amended by revising the section heading, 
paragraphs (a) and (b), by removing paragraphs (c) and (e), and by 
redesignating paragraphs (d), (f), and (g) as paragraphs (c), (d), and 
(e), to read as follows:


Sec.  64.1001  Requests to modify international settlement 
arrangements.

    (a) The procedures set forth in this rule apply to carriers that 
are required to file with the International Bureau, pursuant to Sec.  
43.51(e) of this chapter, requests to modify international settlement 
arrangements. Any operating agreement or amendment for which a 
modification request is required to be filed cannot become effective 
until the modification request has been granted under paragraph (f) of 
this section.
    (b) A modification request must contain the following information:
    (1) The applicable international service;
    (2) The name of the foreign telecommunications administration;
    (3) The present accounting rate

[[Page 23155]]

(including any surcharges);
    (4) The new accounting rate (including any surcharges);
    (5) The effective date;
    (6) The division of the accounting rate; and
    (7) An explanation of any proposed modification(s) in the operating 
agreement with the foreign correspondent.
* * * * *

0
14. Add Sec.  64.1002 to subpart J to read as follows:


Sec.  64.1002  International settlements policy.

    (a) Except as provided in paragraph (b) of this section, a common 
carrier that is authorized pursuant to part 63 of this chapter to 
provide facilities-based switched voice, telex, telegraph, or packet-
switched service on a U.S. international route, and that enters into an 
operating or other agreement to provide any such service in 
correspondence with a foreign carrier that does not qualify for the 
presumption that it lacks market power on the foreign end of the route, 
must comply with the following requirements:
    (1) The terms and conditions of the carrier's operating or other 
agreement relating to the exchange of services, interchange or routing 
of traffic and matters concerning rates, accounting rates, division of 
tolls, the allocation of return traffic, or the basis of settlement of 
traffic balances, are identical to the equivalent terms and conditions 
in the operating agreement of another carrier providing the same or 
similar service between the United States and the same foreign point.
    (2) The carrier shall not bargain for or agree to accept more than 
its proportionate share of return traffic.
    (3) The division of tolls shall be evenly-divided between the U.S. 
carrier and foreign carrier.
    (4) The carrier must also duly comply with the requirements in 
Sec.  43.51 and Sec.  64.1001 of this chapter.


    Note to Paragraph (a): Carriers shall 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 of their foreign carrier correspondent 
agreements are subject to the requirements of this paragraph. This 
list is available on the International Bureau's World Wide Web site 
at http://www.fcc.gov/ib.


    (b) A carrier that enters into an operating or other agreement with 
a foreign carrier for the provision of a common carrier service on an 
international route is not subject to the requirements of paragraph (a) 
of this section if the route appears on the Commission's list of 
international routes that the Commission has exempted from the 
international settlements policy. This list is available on the 
International Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (c) A carrier that seeks to add a U.S. international route to the 
list of routes that are exempt from the international settlements 
policy shall make its request in writing to the International Bureau, 
accompanied by a showing that a U.S. carrier has entered into a 
benchmark-compliant settlement rate agreement with a foreign carrier 
that possesses market power in the country at the foreign end of the 
U.S. international route that is the subject of the request. The 
required showing shall consist of an effective accounting rate 
modification, filed pursuant to Sec.  64.1001, that includes a 
settlement rate that is at or below the Commission's benchmark 
settlement rate adopted for that country in IB Docket No. 96-261, 
Report and Order, 12 FCC Rcd 19,806, 62 FR 45758, Aug. 29, 1997, 
available on the International Bureau's World Wide Web site at http://www.fcc.gov/ib.
    (d) A carrier or other party may request Commission intervention on 
a route that the Commission has exempted from the international 
settlements policy by filing with the International Bureau a petition, 
pursuant to this section, demonstrating anticompetitive behavior that 
is harmful to U.S. customers. Carriers and other parties filing 
complaints must support their petitions with evidence, including an 
affidavit and relevant commercial agreements. The International Bureau 
will review complaints on a case-by-case basis and take appropriate 
action on delegated authority pursuant to Sec.  0.261 of this chapter. 
Interested parties will have 10 days from the date of issuance of a 
public notice of the petition to file comments or oppositions to such 
petitions and subsequently 7 days for replies. In the event 
significant, immediate harm to the public interest is likely to occur 
that cannot be addressed through post facto remedies, the International 
Bureau may impose temporary requirements on carriers authorized 
pursuant to Sec.  63.18 of this chapter without prejudice to its 
findings on such petitions.


    Note 1 to Sec.  64.1002: For purposes of this section, foreign 
carrier is defined in Sec.  63.09 of this chapter.


    Note 2 to Sec.  64.1002: For purposes of this section, a foreign 
carrier shall be considered to possess market power if it appears on 
the Commission's list of foreign carriers that do not qualify for 
the presumption that they lack market power in particular foreign 
points. This list is available on the International Bureau's World 
Wide Web site at http://www.fcc.gov/ib.


[FR Doc. 04-9505 Filed 4-27-04; 8:45 am]
BILLING CODE 6712-01-P