[Federal Register Volume 72, Number 185 (Tuesday, September 25, 2007)]
[Rules and Regulations]
[Pages 54363-54367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18777]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 63

[IB Docket No. 04-47; FCC 07-118]


Modification of the Rules and Procedures Governing the Provision 
of International Telecommunications Service

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this Report and Order, the Federal Communications 
Commission amends its rules governing the provision of international 
telecommunications service. The Commission amends the rule regarding 
the discontinuance of international services to reduce the notice 
period to 30 days. The Commission also clarifies its rules governing 
the provision of international roaming service by U.S. Commercial 
Mobile Radio Service (CMRS) carriers, changes in de jure control of an 
international section 214 authorization holder, and the treatment of 
asset acquisitions. The Commission declines, however, to modify its 
rule governing the provision of services by a subsidiary of an 
international section 214 authorization holder. The Commission also 
declines to adopt changes to its rules governing a CMRS carrier's 214 
authorization process. However, the Commission does amend its cable 
landing license application rules and application procedures to require 
applicants to certify their compliance with the Coastal Zone Management 
Act (CZMA).

DATES: Effective October 25, 2007, except for the amendments to 
Sec. Sec.  1.767(k)(4), 63.19(a)(1) and (a)(2), and 63.24(c) which 
contain information collection requirements that have not been approved 
by the Office of Management and Budget (OMB). The Commission will 
publish a document in the Federal Register announcing the effective 
date of these rules. Written comment by the public on the modified 
information collection requirements are due November 26, 2007.

FOR FURTHER INFORMATION CONTACT: David Krech, Policy Division, 
International Bureau at (202) 418-7443 or Cara Grayer, Policy Division, 
International Bureau at (202) 418-2960. For additional information 
concerning the information collection(s) contained in this document, 
contact Judith B. 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 in IB Docket No. 04-47, FCC 07-118, adopted June 20, 2007 and 
released on June 22, 2007. The full text of the Report and Order is 
available for public inspection and copying during regular business 
hours at the Commission's Reference Information Center, Portals II, 445 
12th Street, SW., Room CY-A257, Washington, DC 20554. The document also 
may be purchased from the Commission's duplicating contractor, Best 
Copy and Printing, Inc., Portals II, 445 12th Street, SW., Room CY-
B402, Washington, DC 20554, telephone 202-488-5300, facsimile 202-488-
5563, or via e-mail [email protected].

Summary of Report and Order

    1. On March 4, 2004, the Commission released a Notice of Proposed 
Rulemaking (NPRM) (Amendment of Parts 1 and 63 of the Commission's 
Rules, IB Docket No. 04-47, 69 FR 13276, March 22, 2004) seeking 
comment on several potential changes to its international section 214 
authorization process and to the rules relating to the provision of 
U.S.-international telecommunications services. The Commission sought 
comment on whether to: (1) Amend the procedures for discontinuance of 
an international service; (2) amend the rules to clarify that U.S.-
authorized resale carriers can resell the U.S.-inbound international 
services of either U.S. carriers or foreign carriers; (3) amend the 
rules to allow commonly controlled subsidiaries to provide 
international service under their parent's section 214 authorization; 
(4) revise the international section 214 requirements placed on 
Commercial Mobile Radio Service (CMRS) carriers; (5) permit a 30-day 
notification period for CMRS carriers to provide international resale 
service; (6) amend Sec.  1.767 of the Commission's rules governing 
procedures for consideration of applications for cable landing licenses 
in order to assure compliance with the Coastal Zone Management Act of 
1972 (CZMA); and (7) amend the

[[Page 54364]]

ownership and other rules to clarify their intent. Ten parties filed 
comments in response to the Commission's NPRM. Based on review of the 
record in this proceeding and for the reasons set forth in the Report 
and Order, the Commission modified its rules governing the provision of 
international telecommunications service.
    2. Discontinuance Issues: The procedures for discontinuing an 
international service are contained in Sec.  63.19 of the Commission's 
rules. This rule sets forth different procedures for discontinuing 
international service, depending on whether a carrier is classified as 
a non-dominant, dominant, or a CMRS carrier. Prior to this Order, the 
notice period for the discontinuance of international service by non-
dominant carriers differed from the notice period governing the 
discontinuance of a domestic service provided by such carriers. In this 
Order, the Commission amends its rules to reduce the notification 
period for a non-dominant carrier's discontinuance of international 
service from 60 days to 30 days, to be more consistent with the minimum 
period generally allowed before a non-dominant carrier can receive 
authority to discontinue domestic service. In addition, the Commission 
modifies its rules to require international carriers to file a copy of 
the notification with the Commission at the same time they provide 
notification to their affected customers.
    3. International Roaming Issues: International roaming allows the 
customers of U.S.-licensed CMRS carriers to use the networks of 
foreign-licensed wireless carriers to make calls while traveling in 
foreign countries. Roaming agreements between U.S and foreign carriers 
may permit U.S. carriers' customers that are roaming in other countries 
to call the United States or other countries. U.S.-CMRS carriers bill 
their customers for international roaming service, and their 
international roaming rates and plans are available on the carriers' 
Web sites.
    As an initial matter, the Commission finds that international 
roaming involves call termination in the United States that comes 
within the Commission's jurisdiction. The Commission amends Sec. Sec.  
63.18(e)(2) and 63.23(c) of its rules to permit explicitly all U.S.-
authorized resale carriers to provide international service by 
reselling the international services of any other authorized U.S. 
common carrier or foreign carrier, or by entering into a roaming or 
other arrangement with a foreign carrier. The Commission clarifies that 
a U.S. carrier's resale authority includes authority to provide U.S. 
inbound or outbound service via resale or other arrangement between the 
carrier and any other authorized U.S. carrier or foreign carrier. This 
rule change eliminates uncertainty about the ability of U.S.-authorized 
resale carriers to provide U.S.-inbound service to customers under a 
roaming or other arrangement that a U.S. carrier has with a foreign 
carrier, including arrangements that allow for customer use of a 
calling card issued by a U.S. carrier.
    4. Commonly-Controlled Subsidiary Issues: Under the Commission's 
rules, a commonly-controlled subsidiary must obtain its own 
international section 214 authorization, while a wholly-owned 
subsidiary may provide service pursuant to its parent company's 
authorization. In this Order, the Commission finds that it would not be 
in the public interest to amend its rules to allow commonly-controlled 
subsidiaries to provide international service pursuant to their 
parent's international section 214 authorization. The Commission 
reiterated that the differences in ownership between a parent and a 
subsidiary that it controls but does not wholly own may raise issues 
that require separate review.
    5. International 214 Authorizations for CMRS Carriers: The 
Commission sought comment on whether it should exempt CMRS carriers 
from the requirement to file an application for international section 
214 authority prior to providing service. The Commission decided not to 
make any changes to the procedures for granting international section 
214 authorizations at this time. The Commission intends to develop a 
fuller record on possible changes further streamlining the application 
process that would apply to all carriers providing international 
service, including, but not limited to, CMRS carriers as a part of a 
larger review. The Commission intends to address CMRS carrier issues as 
a part of that proceeding, and the docket will be kept open until that 
time.
    6. Transfer of Control: The Commission amends Sec.  63.24 to 
clarify that a diminution of an entity's ownership interest in a 
carrier from more than 50 percent to 50 percent or less constitutes a 
transfer of control that must be reported to the Commission.
    7. Asset Acquisition: The Commission adds a note to Sec.  63.24 to 
clarify that an asset acquisition that will not result in a loss of 
service for its customers should be treated as an assignment rather 
than a discontinuance of service. Specifically, the Commission 
clarifies that when a carrier sells its customer base, or a portion of 
its customer base, to another carrier, the sale of assets will be 
treated as an assignment, which requires prior Commission approval 
under Sec.  63.24 of the rules.
    8. Modification of Cable Landing License Rules: The Coastal Zone 
Management Act (CZMA) was enacted to encourage the participation of and 
cooperation among state, local, regional, and federal government 
agencies that have programs that affect the coastlines. The statute 
authorizes states to develop coastal management programs, subject to 
federal approval by NOAA. A coastal management program defines 
permissible land and water use within the state coastal zone. Under 16 
U.S.C. 1456(c)(3)(A), states with federally-approved management 
programs are entitled to review such uses for consistency with those 
programs any ``required federal license or permit to conduct an 
activity, in or outside of the coastal zone, affecting any land or 
water use or natural resource of the coastal zone of that state.'' In 
the NPRM, the Commission sought comment on whether to amend its rules 
to require applicants for a cable landing license to comply with the 
CZMA.
    9. NOAA has regulatory responsibility over the state certification 
process and requirements for all applicants for federal licenses for 
activities in or outside of coastal zones under CZMA, 16 U.S.C. 
1456(c)(3)(A). NOAA's regulations, 15 CFR part 930, subpart D, provide 
a process to determine when federal license or permit activities are 
subject to consistency review. If review is required, the applicant 
must certify that the proposed activity complies with the enforceable 
policies of a state management program, and all relevant states must 
concur in the applicant's certification before the Federal agency 
grants the license.
    10. The Commission amends its cable landing license rules to 
comport with CZMA requirements to apply to applications for a license 
to construct and operate a submarine cable system or to modify the 
construction of a previously approved submarine cable system. The 
Commission will not consider the requirements of the CZMA to apply to 
applications for changes of ownership of the submarine cable system or 
landing stations (transfers or control or assignments) or other 
modifications of the cable landing license that do not effect the 
construction of the submarine cable system. The Commission therefore 
adds a note to Sec.  1.767(a) of its rules clarifying that, in 
accordance with the express requirement that a federal license 
applicant ``shall provide [the certification] in the application to the

[[Page 54365]]

licensing or permitting agency,'' all consistency certifications 
required by section 1456(c)(3)(A) must be included in the application 
filed with the Commission for a license to construct and operate a 
submarine cable system or to modify the construction of a previously 
approved submarine cable system.
    11. In accordance with the requirement that state concurrence is to 
precede the grant of the cable landing license and to prevent the 
construction of any submarine cable system or cable landing station 
while a coastal state is reviewing the applicant's consistency 
certification, the Commission will not streamline the application or 
take any action on a cable landing license application pending 
notification, or documentation from the applicant, that all required 
state concurrences have been received or may be presumed. In sum, the 
Commission revises Sec.  1.767 to clarify that any consistency 
certifications required by section 1456(c)(3)(A) must be included in 
cable landing license applications filed with the Commission to 
construct and operate or modify construction of a previously approved 
submarine cable system, and that construction or modification may not 
commence until all coastal states have concurred or may be presumed to 
have concurred with any required certifications included in the cable 
landing application. Further, Sec.  1.767(k)(4) clarifies that the 
submarine cable system will not be located in any states where the 
cable landing licenses may be subject to the consistency certification 
requirements of the CZMA.

Paperwork Reduction Act

    12. This Report and Order contains either new or modified 
information collections subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. 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 collection requirements contained 
in this proceeding. In addition, we note that pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law No. 107-198, (see 44 
U.S.C. 3506 (c)(4)), the Commission previously sought specific comment 
on how the Commission might ``further reduce the information collection 
burden for small business concerns with fewer than 25 employees.''
    13. All comments regarding the requests for approval of the 
information collection 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]; 
phone 202-418-0214.

Final Regulatory Flexibility Analysis

    14. The Regulatory Flexibility Act of 1980, as amended (RFA) 
requires that a Regulatory Flexibility Act 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.'' 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).
    15. As stated in the Report and Order, this proceeding was 
initiated as part of the Commission's 2002 biennial regulatory review 
process. Through this review, the Commission has sought to: facilitate 
the introduction of new services; provide customers with more choices, 
innovative services, and competitive prices; improve the processing of 
authorization applications and regulation of international services; 
and lessen the regulatory burdens placed on carriers. In this 
proceeding, the Commission examined the rules regarding the 
authorization of international services under section 214 of the Act.
    16. In the NPRM, the Commission certified that the rules proposed 
in this proceeding would not have a significant economic impact on a 
substantial number of small entities. The Commission stated that the 
proposals would be in the public interest and would lessen the burdens 
on all carriers, both small and large, providing international common 
carrier service pursuant to section 214 of the Act. In the Order, the 
Commission adopts many of the rule changes proposed in the NPRM. Thus, 
we certify that rule changes adopted in this Order will have no 
significant economic impact on a substantial number of small entities.
    17. In the Order, the Commission amends its rules regarding the 
discontinuance of international service by aligning the international 
rules with those rules for domestic service. The Order will amend the 
submarine cable landing rules to require applicants to include 
information regarding an applicant's compliance with the Coastal Zone 
Management Act of 1972. The Order clarifies the rules to eliminate 
confusion as to whether a CMRS carrier requires authority to resell 
U.S. inbound service of a foreign carrier for the U.S.-CMRS carrier's 
customers that are roaming in a foreign country. The Order requires a 
carrier to notify the Commission when there is a change in ownership to 
50 percent or less. Also, a diminution of an entity's ownership 
interest in a carrier to 50 percent or less constitutes a transfer of 
control that must be reported to the Commission. The Order amends its 
rules to clarify that an asset acquisition that will not result in a 
loss of service for its customers should be treated as an assignment 
rather than a discontinuance of service. In addition, the Report and 
Order amends the rules so that when a carrier sells its customers or a 
portion of its customers to another carrier, the sale of assets will be 
treated as an assignment.
    18. The rule changes adopted in this Report and Order will benefit 
all entities, both small and large. The rules for discontinuing 
international service will be consistent with the rules for 
discontinuing domestic service, thereby eliminating the disparities 
between domestic and international service rules. The Commission finds 
that it will be in the public interest to eliminate the requirement 
that CMRS carriers seek authority for the resale of inbound traffic. 
Rather, this authority will be included in the carrier's global resale 
authority. This rule change will reduce the filing requirements on CMRS 
carriers, many of which are small entities. Although the majority of 
submarine cable landing license applicants is not considered small 
entities, the rule changes affecting these applicants are nominal and 
will ensure that our rules are consistent with the Coastal Zone 
Management Act of 1972.
    19. The rules adopted in the Report and Order are administrative 
and will streamline and clarify our processes. Therefore, we find that 
the rules adopted in this Order will not have a significant economic 
impact on a substantial number of small entities.

Ordering Clauses

    20. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1, 4(i), 4(j) 11, 201-205, 211, 214, 219, 220, 
303(r), 309, and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 154(i), 154(j), 161, 201-205, 211, 214, 219, 220, 303(r),

[[Page 54366]]

309 and 403, and sections 34-39 of the Cable Landing License Act, 47 
U.S.C. 34-39, this report and order is hereby adopted.
    21. It is ordered that the Commission's Consumer and Governmental 
Affairs Bureau, Reference Information Center, shall send a copy of this 
report and order, including the Final Regulatory Flexibility Act 
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.
    22. It is further ordered that the Regulatory Flexibility 
Certification, as required by section 604 of the Regulatory Flexibility 
Act and as set forth above is adopted.

List of Subjects in 47 CFR Parts 1 and 63

    Cable, Telecommunications.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 1 and 63 to read as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i) , 154 
(j), 155, 157, 225, 303(r) and 309.
0
2. Section 1.767 is amended by adding a note to paragraph (a)(10) and 
by adding new paragraph (k)(4) to read as follows:


Sec.  1.767  Cable landing licenses.

    (a) * * *
    (10) * * *

    Note to paragraph (a)(10): Applicants for cable landing licenses 
may be subject to the consistency certification requirements of the 
Coastal Zone Management Act, 16 U.S.C. 1456, if they propose to 
conduct activities, in or outside of a coastal zone of a state with 
a federally-approved management plan, affecting any land or water 
use or natural resource of that state's coastal zone. Before filing 
their applications for a license to construct and operate a 
submarine cable system or to modify the construction of a previously 
approved submarine cable system, applicants must determine whether 
they are required to certify that their proposed activities will 
comply with the enforceable policies of a coastal state's approved 
management program. In order to make this determination, applicants 
should consult National Oceanic Atmospheric Administration (NOAA) 
regulations, 15 CFR part 930, subpart D, and review the approved 
management programs of coastal states in the vicinity of the 
proposed landing station to verify that this type of application is 
not a listed federal license activity requiring review and that no 
state has sought or received NOAA approval to review the application 
as an unlisted activity. If it is determined that any certification 
is required, applicants shall consult the affected coastal state(s) 
(or designated state agency(ies)) in determining the contents of any 
required consistency certification(s). Applicants may also consult 
the Office of Ocean and Coastal Management (OCRM) within NOAA for 
guidance. The cable landing license application filed with the 
Commission shall include any consistency certification required by 
section 1456(c)(3)(A) for any affected coastal state(s). Upon 
documentation from the applicant, or notification from each affected 
coastal state, that the state has either concurred, or by its 
inaction, is conclusively presumed to have concurred with the 
applicant's consistency certification, the Commission may take 
action on the application.

* * * * *
    (k) * * *
    (4) Certifying that for applications for a license to construct and 
operate a submarine cable system or to modify the construction of a 
previously approved submarine cable system, the submarine cable system 
will not be located in any states where the cable landing licenses may 
be subject to the consistency certification requirements of the Coastal 
Zone Management Act, 16 U.S.C. 1456.
* * * * *

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
3. 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.


0
4. Section 63.18 is amended by revising paragraph (e)(2) introductory 
text to read as follows:


Sec.  63.18  Contents of applications for international common 
carriers.

* * * * *
    (e) * * *
    (2) Global Resale Authority. If applying for authority to resell 
the international services of authorized common carriers subject to 
Sec.  63.23, the applicant shall:
* * * * *

0
5. Section 63.19 is amended by revising paragraphs (a)(1) and (a)(2) to 
read as follows:


Sec.  63.19  Special procedures for discontinuances of international 
services.

    (a) * * *
    (1) The carrier shall notify all affected customers of the planned 
discontinuance, reduction or impairment at least 30 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 the date on which notice has been given to all affected 
customers. The filing may be made by letter (sending an original and 
five copies to the Office of the Secretary, and a copy to the Chief, 
International Bureau) and shall identify the geographic areas of the 
planned discontinuance, reduction or impairment and the 
authorization(s) pursuant to which the carrier provides service.
* * * * *

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


Sec.  63.23  Resale-based international common carriers.

* * * * *
    (c) Subject to the limitations specified in paragraph (b) of this 
section and in Sec.  63.17(b), the carrier may provide service by 
reselling the international services of any other authorized U.S. 
common carrier or foreign carrier, or by entering into a roaming or 
other arrangement with a foreign carrier, for the provision of 
international basic switched, private line, data, television and 
business services to all international points.

    Note to paragraph (c): For purposes of this paragraph, a roaming 
arrangement with a foreign carrier is defined as an arrangement 
under which the subscribers of a U.S. commercial mobile radio 
service provider use the facilities of a foreign carrier with which 
the subscriber has no direct pre-existing service or financial 
relationship to place a call from the foreign country to the United 
States.

* * * * *

0
7. Section 63.24 is amended by adding a note to paragraph (b) and by 
revising paragraph (c) to read as follows:


Sec.  63.24  Assignments and transfers of control.

* * * * *
    (b) * * *

    Note to paragraph (b): The sale of a customer base, or a portion 
of a customer

[[Page 54367]]

base, by a carrier to another carrier, is a sale of assets and shall 
be treated as an assignment, which requires prior Commission 
approval under this section.

    (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. A change from 50 percent or more ownership to less 
than 50 percent 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 Note to paragraph (c).
* * * * *
 [FR Doc. E7-18777 Filed 9-24-07; 8:45 am]
BILLING CODE 6712-01-P