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(1) (a) (i) 1) a)%8=(%  H*%Fm$ 2j|nzozp#{q{a2Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%Fn/ a3Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%Fo: a4Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%FpE a5Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%FqP   2Er|sP}t~ul~a6Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%Fr[   a7Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%Fsf  a8Paragraph+%X,1. a. i. (1) (a) (i) 1) a)%8=(%  H*%Ftq Default Paragraph FoDefault Paragraph Fontu 2vwwxyхtoc 1toc 1v` hp x (#!(#B!(#B` hp x (#toc 2toc 2w` hp x (#` !(#B` !(#B` hp x (#toc 3toc 3x` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4y` hp x (# !(#  !(# ` hp x (#2z!{?|v]}ӌtoc 5toc 5z` hp x (#h!(# h!(# ` hp x (#toc 6toc 6{` hp x (#!(#!(#` hp x (#toc 7toc 7| toc 8toc 8}` hp x (#!(#!(#` hp x (#2~#A_}toc 9toc 9~` hp x (#!(#B!(#B` hp x (#index 1index 1` hp x (#` !(# ` !(# ` hp x (#index 2index 2` hp x (#` !(#B` !(#B` hp x (#toatoa` hp x (#!(# !(# ` hp x (#2ev͗lC8kcaptioncaption _Equation Caption_Equation Caption CourierTimes RomanTimes Roman BoldTimes Roman Italic7oC2o\  PCXPy.]8*]\  PCPy.a8*ta4  p(ACd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdCourierTimes New RomanCG TimesCG Times BoldTimes New Roman BoldTimes New Roman ItalicCG Times Italic2KLLKj"i~'^:DpddȨDDDdp4D48ddddddddddDDpppd|Ld|pȐD8DtdDdpXpXDdp8Dp8pdppXLDpdddXP,PhD4htDDD4DDDDDDdDp8dddddȐXXXXXJ8J8J8J8pddddppppddpddddzpdddXXhXXXXXdddhdptL8LpLDLpphhp8ZDP8pppddƐXXXpLpLpLphfDtppppppȐhXXXpDppLDd4ddC6CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxHjdDddddddd<d<$YYdCCddooCYd<d<+oodCCddddCo-ԍXxAT&T Reply, at 47.(#M  X -x4.` ` On November 30, 1995, the Commission approved the Foreign Carrier Entry  X-Order,mD& zP-ԍXxForeign Carrier Entry Order, FCC 95475.(#m in which it adopted rules that govern the entry of foreign carriers into the U.S. market for international telecommunications services. KDD submitted a supplemental filing  Xj-following release of the Foreign Carrier Entry Order which supplies information required by  XU-the newly adopted rules.wU& zP-ԍXxSee Public Notice, Report No. I8147, February 16, 1996.(#w AT&T filed a partial opposition to the supplemental filing which does not oppose authorizing service to the United Kingdom or Germany, but does oppose grant of authorization for service to Japan.  X-,0 Discussion ă  X-x5.` ` The Foreign Carrier Entry Order provides the standard by which applications of foreign carriers seeking to provide international telecommunications services in the United States will be measured. In the context of that proceeding, the Commission addressed the arguments raised by AT&T here. We therefore need not address these arguments individually. The Commission stated that carriers seeking to provide resale of noninterconnected private lines to countries in which they have an affiliate with market power must demonstrate that the affiliated market offers effective competitive opportunities for U.S."Ch 0*(("  X-carriers seeking to resell noninterconnected private lines.& zPy-ԍXxForeign Carrier Entry Order,  139148 and Appendix A,  63.01(r)(7).(#Ǝ The Commission also stated that it will continue to consider other public interest factors that may weigh in favor of, or against, granting the application. These factors include the general significance of the proposed entry to the promotion of competition in the U.S. communications market, any national security, law enforcement, foreign policy, or trade concerns raised by the Executive Branch, and the  X-presence of costbased accounting rates.  X_-x6.` ` In adopting an effective competitive opportunities test, the Commission stated that it would only apply this test to those applications from foreign carriers that have market  X1-power, or are affiliated with such carriers, in the destination markets they seek to serve.P ^1Z& zP< -ԍXxId., at  102. We defined affiliation as an ownership interest of greater than 25 percent, or a  zP -controlling interest at any level, in a U.S. carrier by a foreign carrier. See Foreign Carrier Entry  zP -Order, at  7389.(#P The  X -Foreign Carrier Entry Order defines market power as "the ability of the carrier to act anticompetitively against unaffiliated U.S. carriers through the control of bottleneck services  X -or facilities on the foreign end."V & zP-ԍXxId., at  116.(#V Bottleneck services or facilities are "those that are necessary for the provision of international services, including intercity or local access  X -facilities on the foreign end."B & zP-ԍXxId.(#B The Commission found that applications from foreign carriers that hold market power raise the greatest potential of anticompetitive conduct, particularly where U.S. carriers are not allowed to compete effectively in those markets. If the affiliation is with a nondominant foreign carrier, we would not apply an effective competitive  Xd-opportunities analysis to the application.X d& zP-ԍXxId., at  100102.(#X  X6-x7.` ` After reviewing the record, we conclude that it is not necessary to engage in an effective competitive opportunities analysis of the German or U.K. resale markets because KDD's affiliates in those countries do not possess market power. KDD states that neither its  X-U.K. nor its German affiliates own telecommunications facilities in those markets. 6 & xP -ԍXxLetter from Robert J. Aamouth, counsel for KDD America, to William F. Caton, Secretary, F.C.C., February 13, 1996.(#ƫ This Commission has recognized that participation in the U.S. market by foreign carriers that do not own or control telecommunication facilities in a foreign market is unlikely to raise market  X-power concerns.u^ & zP%-ԍXxSee 47 C.F.R. 63.12 (c)(2) (streamlined processing of private line resale applications filed by foreign  zP&-carriers that do not own or control telecommunications facilities in the destination country). See also  zP'-Streamlining the International Section 214 Authorization Process and Tariff Requirements, IB Docket"' 0*(('" No. 95118, FCC 9679, (released March 13, 1996) at Appendix A,  63.12 (c)(1) (expanding streamlined processing to include facilitiesbased applications). (#u Although KDD's application identifies affiliates in Germany and the" 0*((" United Kingdom, the record contains no other information to suggest that affiliates of KDD possess market power in those countries. Indeed, AT&T does not argue that KDD has market power in the United Kingdom or Germany. We therefore find that we need not apply our effective competitive opportunities analysis for authorization of service on those routes. We also note that the Executive Branch has raised no other public interest concerns with respect to KDD's service to the United Kingdom or Germany.  X_-x8.` ` KDD's supplemental filing does, however, raise the issue of whether KDD possesses market power in Japan and whether the Japanese market offers effective competitive opportunities for the resale of noninterconnected private lines. AT&T argues that KDD has market power in Japan and that the Japanese market does not meet the requirements of the  X -effective competitive opportunities analysis. & zP-ԍXxSee AT&T Partial Opposition to Supplemental Filing of KDD America, Inc., March 18, 1996.(#Ɨ  X -x9.` ` In order to treat this application expeditiously, we will grant KDD's application to serve Germany and the United Kingdom and will defer consideration of its application to serve Japan. We therefore find that grant of authorization to KDD America to resell noninterconnected private lines for service to the United Kingdom and Germany to be in the public interest and consistent with the provisions of Section 214 of the Communications  Xb-Act.Sb& xP-ԍXx47 U.S.C.  214 (1996).(#S Our public interest finding is limited to use of the authorized facilities for the provision of service between the United States and the United Kingdom, and between the  X4-United States and Germany.R4B& zP'-ԍXxSee infra,  14.(#R We make no finding and do not authorize the use of these facilities to serve any other foreign point under Section 214. v  X- Ordering Clauses ă  X-x 10.` ` Accordingly, IT IS ORDERED that application File ITC95481 IS GRANTED IN PART and KDD America, Inc. is authorized to resell international private vlines not interconnected to the public switched network for the provision of international private line services between the United States and Germany and the United Kingdom.  XN-x 11.` ` It is FURTHER ORDERED that KDD America's application for authority under Section 214 of the Communications Act of 1934, as amended, to resell noninterconnected private line services between the United States of America and Japan is hereby DEFERRED.  X-"0*((<"Ԍ X-x 12.` ` It is FURTHER ORDERED that KDD America, Inc. shall comply with Section 203 of the Communications Act, 47 U.S.C.  203, Part 61 and Sections 43.51 and 43.61 of the Commission's Rules, 47 C.F.R. Part 61 and  43.51 and 43.61, and shall file annual  X-reports of circuit additions in accordance with the requirements set forth in Rules for Filing of  X-International Circuit Status Reports, CC Docket No. 93157, Report and Order, 10 FCC Rcd 8605 (1995).  Xc-x 13.` ` It is FURTHER ORDERED that our authorization of KDD America, Inc. to provide private lines as part of its authorized services is limited to the provision of noninterconnected private line service only between the United States and the United Kingdom or between the United States and Germany, that is, private lines that originate in the United States and terminate in the United Kingdom or Germany, or that originate in the United Kingdom or Germany and terminate in the United States. In addition, KDD America may not and KDD America's tariffs must state that its customers may not connect private lines provided over these facilities to the public switched network at either the U.S. or foreign end or both, for the provision of international switched basic services, unless authorized to do so by the Commission upon finding that the foreign administration affords resale opportunities  X}-equivalent to those available under U.S. law, in accordance with Regulation of International  Xh-Accounting Rates, Phase II, First Report and Order, 7 FCC Rcd 559 (1991),  Order on  XS-Reconsideration and Third Further Notice of Proposed Rulemaking, 7 FCC Rcd 7927 (1992),  X>-petition for reconsideration pending. See also Market Entry and Regulation of Foreign X)-Affiliated Entities, Report and Order, IB Docket 9522, FCC 95475 (released November 30, 1995), at  133138.  X-x 14.` ` This order is issued under Section 0.261 of the Commission's Rules and is effective upon adoption. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission's Rules may be filed within 30 days of the  X-public notice of this Order (see Section 1.4(b)(2)). x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhScott Blake Harris x` `  hhChief, International Bureau