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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** DA 96-1143 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) CABLE & WIRELESS, INC. ) ) Application for authority to ) File No. I-T-C-96-190 provide facilities-based ) services between the United ) States and Mexico. ) ORDER, AUTHORIZATION AND CERTIFICATE Adopted: July 16, 1996 Released: July 19, 1996 By the Chief, Telecommunications Division: 1. On March 14, 1996, Cable & Wireless, Inc. (CWI) filed the above-captioned application requesting authority, pursuant to Section 214 of the Communications Act of 1934, as amended, to provide facilities-based switched and private line services between the United States and Mexico. The application was placed on public notice on March 26, 1996. No comments were received. 2. CWI is an indirect, wholly-owned subsidiary of Cable & Wireless, plc, a company organized under the laws of the United Kingdom. CWI is a domestic common carrier which is authorized to provide international switched and private line services between the United States and numerous countries throughout the world, including Mexico, by resale of the facilities of underlying U.S. carriers. CWI also is authorized to provide switched and private lines services, on a facilities basis, between the United States and Canada. CWI certifies that it is affiliated with many foreign carriers within the meaning of Section 63.01(r)(1)(i) & (ii) of the Commission's Rules. CWI also certifies, however, that it has no affiliation with any carrier in the destination country, Mexico, for which it here seeks facilities-based authority. It also requests that it be declared non-dominant for the U.S.-Mexico route. 3. The Commission determined in the Foreign Carrier Entry Order that an important element of a foreign carrier's entry into the U.S. international services market is whether U.S. carriers have effective competitive opportunities to compete in the destination markets that a foreign carrier seeks to serve. The Commission therefore stated that an effective competitive opportunities test would be an important part of the overall public interest analysis of international Section 214 applications filed by foreign carriers or their U.S. affiliates. The Commission also stated that it would 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 presence of cost-based accounting rates. 4. In adopting an effective competitive opportunities test, the Commission stated that it would apply this analysis only to applications from affiliates of foreign carriers that have market power in the destination countries they seek to serve. Because CWI has no foreign-carrier affiliate in the destination country, Mexico, it will not be necessary to conduct an effective competitive opportunities analysis of the Mexican market. Further, we will treat CWI as non-dominant for the U.S.- Mexico route pursuant to Section 63.10(a)(1) of the rules. We will, however, condition grant of authority on use of the authorized facilities for U.S.-Mexico service only, subject to two exceptions. CWI may use the facilities in conjunction with previously authorized facilities or services to route through the United States traffic that originates and terminates in third countries. CWI also may use the facilities to route U.S. traffic on an indirect, switched transit basis to countries where CWI does not have an affiliation with a foreign carrier. This condition will remain in effect pending authorization of CWI to provide direct, facilities-based service on additional U.S. international routes. 5. The Executive Branch has not raised any concerns with grant of this application. Upon consideration of the application and in view of the foregoing, we conclude that grant of CWI's application will increase competition in the United States and thus benefit U.S. consumers. Therefore, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require a grant of the application. 6. Accordingly, IT IS ORDERED that application File No. I-T-C-96-190 IS GRANTED, and CWI is authorized to establish channels of communication between the United States and the U.S.- Mexico border and use said facilities to provide switched and private line services, including switched voice and data services, between the United States and Mexico. 7. IT IS FURTHER ORDERED that the authority granted herein to provide private line service is limited to the provision of private line service between the United States and Mexico -- that is, private line service that originates in the United States and that terminates in Mexico or that originates in Mexico and that terminates in the United States. In addition, CWI may not -- and CWI's tariff 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 Mexico end, or both, for the provision of international switched basic services, unless authorized to do so by the Commission upon a finding that Mexico affords resale opportunities equivalent to those available under U.S. law, in accordance with Foreign Carrier Entry Order, 11 FCC Rcd 3873 (1995). The limitations in this paragraph are subject to the exceptions contained in Section 63.18(e)(4)(ii) of the Commission's Rules, 47 C.F.R.  63.18(e)(4)(ii). 8. IT IS FURTHER ORDERED that CWI shall comply with the requirements specified in Sections 43.82 and 63.21 of the Commission's Rules, 47 C.F.R.  43.82, 63.21. 9. IT IS FURTHER ORDERED that the facilities for which authority is granted in this order shall be used to provide service between the United States and Mexico only, except that: (1) CWI may use the facilities in conjunction with previously authorized facilities or services to route through the United States traffic that originates and terminates in third countries; and (2) CWI may use the facilities to route U.S. traffic on an indirect, switched transit basis to countries where CWI does not have an affiliation with a foreign carrier. This condition will remain in effect pending authorization of CWI to provide direct, facilities-based service on additional U.S. international routes. 10. 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 date of the public notice of this order (see Section 1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau