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(1) (a) (i) 1) a)dK+b70t _5xŗ+tP+,` ` ` hhh "i~'^:DTddDDDd4D48ddddddddddDDd||||DXp||dp||ppL8LTdDddXdX8dd88X8ddddLL8dXXXLP8PlD4lTDDD4DDDDDDdDd8|d|d|d|d|dX|X|X|X|XD8D8D8D8dddddddddpX|ddddpXd|d|d|d|dXXlXx|X|X|X|XdddldldD8DdDDDddllXp8pHpDp@p8dtdddd|L|L|LdLdLdLllpHp8pTddddddplpLpLpLdpDddLpDpdx4ddC,CWddddddddddddddddddddddddddddddddddddddddNHxxHhdLdddddd8@d<@d<DDppdDDxddzHxxHkddDpd<"dxtldxxdy.X80,X\  P6G;Py.\80,T\4  pG;7jC:,9Xj\  P6G;XP7nC:,|Xn4  pG;XW!@(#,h@\  P6G;hPH5!,i,5\  P6G;,P\{,W80,%0W*f9 xr G;X\5hC:,%2Xh*f9 xr G;XXNewVecto           2j yO#X\  P6G;P#X01Í ÍX81Í Í@--@  Њ  yO-x` `  hh@hpp   xxDA 97699  XX-+2#Xj\  P6G;9XP#Before the w Federal Communications Commission  X*-Washington, D.C. 20554 ă  X-In the Matter of hh@h) x` `  hh@h)  X-PrimeCo Personal Communications, L.P.@h) x` `  hh@h)  X -Application for Authorization Pursuant to @h)ppITC96635  Xr -Section 214 of the Communications Act ofh)pp    X[ -1934, as Amended, to Resell International@h)  XD -Communications Services to Gibraltar,@h)  X--Lithuania, and Russiahh@h)  X-  ORDER, AUTHORIZATION AND CERTIFICATE ĐTP Adopted: April 8, 1997 Released: April 10, 1997TP By the Chief,  "J Telecommunications Division "J   X^-$G I. Introduction T  X0-TPx1.` ` PrimeCo Personal Communications, L.P. (PrimeCo), on behalf of itself and the Texas MTA Partnerships (collectively, the Applicant), requests authority pursuant to Section  X-214 of the Communications Act of 1934,V yO{-ԍx47 U.S.C.  214, as amended (Act).V to resell international switched telecommunications services originating from the Applicant's service areas and terminating in Gibraltar, Lithuania, and Russia. The Applicant seeks classification as a nondominant reseller of international switched services on the requested routes. No party opposed the Applicant's Section 214 application.  Xx-x2.` ` We find that a grant of this application will serve the public interest under Section 214 of the Act. We also find that the Applicant's provision of resold switched services on the U.S.Gibraltar, U.S.Lithuania, and U.S.Russia routes should be subject to nondominant carrier regulation. "$X0*0*0*""  X-"3 II. Background ĐTP  X-x3.` ` PrimeCo, a Delaware corporation, holds broadband PCS licenses in eight Major  X-Trading Area (MTA) markets. {O4-ԍXxSee PrimeCo Personal Communications, L.P. Application for Authorization Pursuant to Section 214 of the Communications Act of 1934, as Amended, to Resell International Communications Services to  {O-Gibraltar, Lithuania, and Russia, File No. ITC96635, at 4 (filed Nov. 18, 1996) (PrimeCo  {O-Application). PrimeCo's eight MTA markets are: Chicago; TampaSt. PetersburgOrlando; MiamiFort Lauderdale; New OrleansBaton Rouge; Milwaukee; RichmondNorfolk; Jacksonville; and Honolulu.  {O" -See id. at Attachment 1.(#Ɗ PrimeCo is indirectly owned by AirTouch Communications,  X-Inc., Bell Atlantic Corporation, NYNEX Corporation, and U S WEST, Inc.EDH {O -ԍXxSee id. at 2. PrimeCo is directly owned by PCSCO Partnership (PCSCO) and PCS Nucleus, L.P., two Delaware partnerships which each hold a twenty percent general partnership interest and a thirty percent limited partnership interest. PCSCO is owned by NYNEX PCS, Inc. and Bell Atlantic Personal Communications, Inc. (BAPCI), two Delaware corporations which are indirect, whollyowned subsidiaries of NYNEX Corporation and Bell Atlantic Corporation, respectively. PCS Nucleus, L.P. is owned by U S WEST PCS Holdings, Inc. (USWP) and AirTouch PCS Holding, Inc. (APHI), two Delaware corporations. USWP is an indirect, whollyowned subsidiary of U S WEST, Inc., and APHI  {O-is a whollyowned subsidiary of AirTouch Communications, Inc. See id. at 49.(#E Because Bell Atlantic Corporation, NYNEX Corporation, and U S WEST, Inc. each own more than 10 percent of PrimeCo, the Applicant is under common ownership, and thereby is affiliated with, three Bell Operating Companies (BOCs): the Bell Atlantic Telephone Companies, the  XH-NYNEX Telephone Companies, and U S WEST Communications, Inc. HT  yOM-ԍXxThe Telecommunications Act of 1996, Pub. L. No. 104104, 110 Stat. 56 (1996), defines an affiliate as "a person that (directly or indirectly) owns or controls, . . . or is under common ownership or control with, another person. . . . [T]he term `own' means to own an equity interest (or the equivalent thereof) of more than 10 percent." 47 U.S.C.  153(1). (#Ƥ The Texas MTA Partnerships consist of three broadband PCS licensees that are organized under the laws of  X -Delaware and provide service in Texas.  < {O-ԍXxSee PrimeCo Application at 3, 9. The individual licensees are: the Dallas MTA, L.P.; the Houston  {O-MTA, L.P.; and the San Antonio MTA, L.P. See id. at Attachment 1. (#  PrimeCo controls and manages the Texas MTA  X -Partnerships."  yOL-ԍXxPrimeCo holds a one percent sole general partnership interest and a 79 percent limited partnership interest in the Texas MTA Partnerships. Texas Utilities Communications, Inc. (TUC), a Delaware corporation, holds a twenty percent limited partnership interest. TUC, in turn, is a whollyowned  {O!-subsidiary of the Texas Utilities Company, a Texas corporation. See id. at 9. (#  X -x4.` ` We previously granted a streamlined Section 214 application filed by PrimeCo, on behalf of itself and the Texas MTA Partnerships, for authority to resell switched services  X -to all international points except Gibraltar, Lithuania, and Russia.  {O&-ԍXxITC96550; see Public Notice, Overseas Common Carrier Section 214 Applications Actions Taken, Rep. No. I8219, DA 962031 (released Dec. 5, 1996).(# The instant application is" 0*(( "  X-not subject to streamlined processing because such processing is not available to an applicant seeking authority to provide service to a market in which it is affiliated with a foreign carrier and the Commission has not yet made a determination as to whether that foreign carrier  X-possesses market power in that destination market.% {O4-ԍXxSee 47 C.F.R.  63.12(c)(1); see also Streamlining the International Section 214 Authorization Process  {O-and Tariff Requirements, Report and Order, 11 FCC Rcd 12884, 12896 (released Mar. 13, 1996).(#%  X-#] III. Discussion ĐTP  X_-x5.` ` The Applicant maintains that a grant of the instant application will allow its subscribers to use their wireless telephones to complete calls to Gibraltar, Lithuania, and Russia, thereby "enhancing competition . . . by providing customers with additional carrier  X -choices."_  $ {O -ԍxPrimeCo Application at 12. _ Because the Applicant is a BOC affiliate, we must initially determine whether service restrictions imposed on BOCs and their affiliates prevent the Applicant from providing the requested service. Next, we consider whether the Applicant should be subject to nondominant carrier regulation in the provision of resold switched services along the U.S.Gibraltar, U.S.Lithuania, and U.S.Russia routes.  X-xA.` ` Provision of Incidental InterLATA Services under Section 271(b)(3)  Xb-x6.` ` The Telecommunications Act of 1996 (1996 Act) permits a BOC or a BOC  XK-affiliate to "provide incidental interLATA [i.e., local access and transport area] services K yO-ԍXx"InterLATA services" are defined as "telecommunications between a point located in a local access and transport area and a point located outside such area." 47 U.S.C.  153(21).(# . . .  X6-originating in any State[.]"[ 6 {O-ԍxId.  271(b)(3) (footnote added).[ The 1996 Act defines "incidental interLATA services" to include "the interLATA provision by a Bell operating company or its affiliate . . . of commercial  X-mobile services in accordance with section 332(c) of th[e] Act[.]"J  {OY-ԍxId.  271(g)(3).J  X-x7.` ` The Applicant states that, "[a]s a broadband PCS licensee, . . . [it] provides  X-commercial mobile services in accordance with section 332(c) of the [Act.]"P 2  {O"-ԍxPrimeCo Application at 2.P The Applicant certifies, therefore, that the "authority it seeks in the instant application is associated solely with its provision of incidental interLATA services, as that term is defined in Section 271(g)  X~-of the Act.":~  {O&-ԍxId.: We find that the resale of international switched services on the U.S.Gibraltar,"~V 0*((P" U.S.Lithuania, and U.S.Russia routes by the Applicant to its commercial mobile services customers is permitted under Section 271(b)(3) of the Act. We also find that a grant of the instant application will serve the public interest under Section 214 of the Act by facilitating the efficient and rapid provision of international services.  X- TPxB.` ` Foreign Carrier Affiliations  X_- x 8.` ` The Applicant certifies that it is affiliated with foreign carriers in the  XH-destination countries under Section 63.18(h)(1) of the Commission's rules.EH {O -ԍxSee id. at 10.E The Applicant maintains that it is presumptively nondominant on these three routes despite these  X -affiliations.o Z {O% -ԍxSee id. at 16 (citing 47 C.F.R.  63.10(a)(4)).o  X - x 9.` ` The Commission regulates U.S. international carriers as dominant on routes where an affiliated foreign carrier has the ability to discriminate in favor of its U.S. affiliate  X -through control of bottleneck services or facilities in the destination market.J  {O[-ԍXxSee Regulation of International Common Carrier Services, Report and Order, 7 FCC Rcd 7331, 7334  {O%-(1992) (International Services); see also Market Entry and Regulation of Foreignaffiliated Entities,  {O-Report and Order, 11 FCC Rcd 3873, 39663971 (1995) (Foreign Carrier Entry Order) (reaffirming the basic framework for classifying and regulating a carrier as dominant based upon its foreign carrier  {O-affiliations as set forth in International Services), recon. pending. In general, a U.S. carrier is affiliated with a foreign carrier when a foreign carrier owns a greater than 25 percent interest in, or controls, the U.S. carrier, or when a U.S. carrier owns a greater than 25 percent interest in, or controls, a foreign  {O-carrier. See 47 C.F.R.  63.10(a)(4) & 63.18(h)(1)(i).(# Under this framework, a U.S. international carrier that serves a destination market solely through the resale of the switched services of an unaffiliated U.S. facilitiesbased carrier is presumptively  Xy-nondominant for that route "regardless of any foreign affiliations."y  {O(-ԍXxInternational Services, 7 FCC Rcd at 7335; 47 C.F.R.  63.10(a)(4).  (#ƭ The Commission has found that the resale of an unaffiliated U.S. facilitiesbased carrier's switched services "presents no substantial possibility of anticompetitive effects in the U.S. international service market, because the reseller's foreign affiliate is negotiating the terms and conditions of access  X-to the destination market with an unaffiliated carrier on the U.S. end."  {O^!-ԍXxInternational Services, 7 FCC Rcd at 7335; see also Foreign Carrier Market Entry Order, 11 FCC Rcd at 392728 (finding that "in order for a foreign carrier to favor its U.S. resale affiliate it would necessarily have to favor the underlying U.S. facilitiesbased carrier as well. We [therefore] consider it unlikely that a foreign carrier reseller would engage in discriminatory conduct under such circumstances").(# "B0*(("Ԍ X-x 10.` ` The Applicant certifies that it is affiliated within the meaning of Section 63.18(h)(1) of the Commission's rules with Gibraltar NYNEX Communications Ltd.  X-(GNCL).] {Ob-ԍXxSee PrimeCo Application at 11.(#] GNCL is fifty percent owned by NYNEX Network Systems Company and fifty percent owned by the Government of Gibraltar. GNCL is the only carrier authorized to provide domestic wireline telecommunications services in Gibraltar and telecommunications services between Gibraltar and Spain. The Applicant states that GNCL must terminate international calls at a point of interconnection with Gibraltar Telecommunications International Ltd. (Gibtel), which presently is Gibraltar's only carrier authorized to handle international switched voice traffic between Gibraltar and foreign countries other than Spain. The Applicant maintains that Gibtel enters into all contractual operating arrangements with U.S. international carriers for the transmission of traffic between the United States and Gibraltar. The Applicant pledges to serve the U.S.Gibraltar route only through the resale of unaffiliated, nondominant U.S. carrier services. "NYNEX and PrimeCo have no ability to influence or affect the operating decisions of Gibtel," the Applicant states, "and therefore, lack  X -the ability to discriminate against unaffiliated U.S. international carriers."B q {O-ԍXxId.(#B  X- x  11.` ` The Applicant also certifies that it is affiliated within the meaning of Section  Xy-63.18(h)(1) with Lintel, "an international gateway operator in Lithuania."Ay {O--ԍxId. at 12.A The Applicant states that "Lintel does not control intercity or local access facilities in Lithuania, and does  XK-not provide resale service in Lithuania."K {O-ԍXxId. (citing ITJ America, Inc., File No. ITC96275, Order, Authorization and Certificate, DA 961782,  45 (released Oct. 29, 1996)).(# The Applicant maintains that it "lacks the ability to directly or indirectly influence Lintel's interconnection and related interconnection agreements with international carriers, and U S WEST has neither participated in nor influenced such  X-agreements."Q {O-ԍxPrimeCo Application at 12.Q  X- x  12.` ` The Applicant also certifies that it is affiliated within the meaning of Section 63.18(h)(1) with Westelcom, Delta Telecom, BaykalWestcom, AKOS, UralWestcom, Nizhegorodskaya Cellular Communications (NCC), Moscow Cellular Communications (MCC),  X-and Dontelecom in Russia.M {O"-ԍXxSee id. at 1215 (stating that U S WEST indirectly holds, through the Russian Telecommunications Development Corporation (RTDC), the following ownership interests in the following carriers: Westelcom (50 percent), Delta Telecom (42.5 percent), BaykalWestcom (49 percent), AKOS (67 percent), UralWestcom (49 percent), NCC (50 percent), MCC (39 percent), and Dontelecom (33 percent)). "RTDC is a Delaware company with interests in numerous telecommunications ventures in  {O&-Russia." Id. at 12 n.7(#M According to the Applicant, Westelcom is "a joint venture which" 0*((Q"  X-operates three international gateway switches (and extensions thereof) in Russia." {Oy-ԍXxId. at 12. Rostelecom, "an international access carrier to the Russian public switched telecommunications network," holds a fifty percent ownership interest in Westelcom and solely "owns and  {O -operates the international gateway switches." Id. at 1213. Westelcom "provides switching related services, such as the development of management, marketing, financial, and billing procedures and systems . . . [and] acts as a vehicle for reinvestment of switch revenues by the company in future  {Oe-Russian telecommunications projects." Id. at 13.(#Ɣ The Applicant also states that the other carriers, Delta Telecom, BaykalWestcom, AKOS, UralWestcom, NCC, MCC, and Dontelecom, provide cellular services in various parts of  X-Russia.PF {O -ԍXxSee id. at 1315.(#P BaykalWestcom also provides intercity exchange service in Irkuktsk. {OD -ԍXxSee id. at 14. Delta Telecom "interconnects to the local network through a switch owned and operated  yO -by [the Petersburg Telephone Network]," which holds a 57.5 percent ownership interest in Delta  {O -Telecom. Id. at 13. Delta Telecom, however, "is a nonexclusive licensee competing against two wellheeled competitors: NorthWest GSM, a joint venture including Norwegian Nortelinvest, Telia AB and Telecom Finland; and an AMPS license owned by Motorola, the City of St. Petersburg, and other  {O0-private U.S. investors." Id. (#Ɯ The Applicant avers that BaykalWestcom, AKOS, UralWestcom, NCC, and Dontelecom are "relatively" new market entrants, and that they each have less than 2000 subscribers, with the exception of AKOS and UralWestcom, which have fewer than 4000 and 1000 subscribers,  X_-respectively.D_V  {Of-ԍxId. at 1315.D The Applicant states that Westelcom, Delta Telecom, BaykalWestcom, AKOS, UralWestcom, NCC, MCC, and Dontelecom "hold[] no ownership interest in international facilities and lack[] authority to route international traffic or otherwise negotiate the terms of  X -interconnection agreements with U.S. international carriers."D  {O-ԍXxId. (#D The Applicant avers that it will serve the U.S.Russia route only through the resale of unaffiliated, nondominant U.S. carrier  X -services.` z {O-ԍXxSee PrimeCo Application at 1315.(#`  X -x 13.` ` The Applicant states that the Texas MTA Partnerships have no additional  X -foreign carrier affiliations.M  {Od!-ԍXxSee id. at 16.(#M  Xy- x  14.` ` Under the framework adopted in International Services and Section 63.10(a)(4) of the Commission's rules, we first find that, because the Applicant will provide services on these affiliated routes solely through the resale of unaffiliated U.S. facilitiesbased carriers' switched services, it is entitled to a presumption that it be classified as nondominant on these routes. Second, we find that the Applicant's foreign carrier affiliations do not give us any  X-reason to overcome this presumption. N o party filed an opposition to the Applicant's Section" 0*(( " 214 application or requests that the Applicant be classified as a dominant carrier. We therefore find no basis at this time to regulate the Applicant as a dominant carrier in the resale of international switched services on the U.S.Gibraltar, U.S.Lithuania, and U.S.Russia routes.  X-x15.` ` As a nondominant reseller of international switched services, the Applicant will be allowed to file tariffs on no less than one days' notice, without economic or cost support, and the tariffs will be presumed lawful. It also will be subject to the Section 214 requirements of nondominant U.S. international carriers.  X -x16.` ` As a nondominant carrier, the Applicant will be subject to regulation under Title II of the Act. Specifically, Title II requires carriers to offer international services under rates, terms and conditions that are just, reasonable and not unduly discriminatory (Sections 201 and 202), and Title II carriers are subject to the Commission's complaint process (Sections 206209). Title II carriers also are required to file tariffs pursuant to our streamlined tariffing procedures (Sections 203 and 205). Nondominant U.S. international switched resellers also are subject to the requirements of Sections 43.51, 43.61, 63.14 and  Xy-63.19 of the Commission's rules.<!f y yO-ԍXx47 C.F.R.  43.51 (requiring common carriers engaged in foreign communications to file with the Commission certain contracts, agreements, concessions, licenses, authorizations, and other arrangements);  {O-id.  43.61 (requiring common carriers engaged in the provision of international telecommunications service between the U.S. and foreign destinations to file reports containing annual traffic and revenue  {O-data); id.  63.14 (prohibiting U.S carriers authorized to provide international communications service from agreeing to accept special concessions directly or indirectly from any foreign carrier or administration with respect to traffic or revenue flows between the United States and any foreign  {On-country for which the U.S. carrier is authorized to provide service); id.  63.19 (requiring nondominant international carriers to "notify all affected customers of the planned discontinuance, reduction or impairment [of service] at least 60 days prior to. . . [the] planned action"; notification of such action must be in writing to each affected customer, unless otherwise authorized in advance by the Commission, and a copy of such notification must be filed with the Commission).(#<  XK- & III. Ordering Clauses ĐTP  X-x17.` ` Upon consideration of the application and in view of the foregoing, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require the resale of international switched services by PrimeCo Personal Communications, L.P. (PrimeCo) and the Dallas MTA, L.P., the Houston MTA, L.P., and the San Antonio MTA, L.P. (collectively, the Texas MTA Partnerships).  X-x18.` ` Accordingly, IT IS HEREBY ORDERED that application File No. ITC96635 filed by PrimeCo IS GRANTED and PrimeCo and the Texas MTA Partnerships are authorized to resell on a nondominant carrier basis international switched services of unaffiliated U.S. international carriers for the provision of international switched services"N !0*((|" originating from U.S. points served by PrimeCo and the Texas MTA Partnerships and terminating in Gibraltar, Lithuania, and Russia.  X-x19.` ` IT IS FURTHER ORDERED that PrimeCo and the Texas MTA Partnerships shall comply with the requirements specified in Section 63.21 of the Commission's rules, 47 C.F.R.  63.21.  X_-x20.` ` This order is issued under Section 0.261 of the Commission's rules and is  XH-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  X -of the public notice of this order (see Section 1.4(b)(2)). x x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@D "J iane J. Cornell "J  x` `  hh@Chief "J , Telecommunications Division "J  x` `  hh@International Bureau