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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) WORLDCOM, INC. ) ) Application for authority pursuant to ) Section 214 of the Communications Act ) File No. I-T-C-97-008 of 1934, as amended, to acquire and operate ) facilities and to resell the services of other ) carriers for the provision of international ) service between the United States and Israel ) ORDER, AUTHORIZATION, AND CERTIFICATE Adopted: May 23, 1997 Released: June 5, 1997 By the Chief, Telecommunications Division: I. Introduction 1. In this Order, we grant WorldCom, Inc. (WorldCom) authority to provide switched and private line international telecommunications services between the United States and Israel on both a facilities-based and resale basis. We also grant WorldCom's request that it be regulated as non-dominant on the U.S.-Israel route. II. Background 2. WorldCom filed an application requesting authority, pursuant to Section 214 of the Communications Act of 1934, as amended, to operate both as a facilities-based carrier and as a resale carrier for the provision of international telecommunications services between the United States and Israel. WorldCom also requests that it be classified as a non-dominant carrier for the provision of international communications services on the United States-Israel route. 3. WorldCom submits that it is affiliated with DARCOM, a foreign carrier in Israel. WorldCom requests that it be regulated as non-dominant for the provision of international communications services to Israel because DARCOM does not have the ability to discriminate against unaffiliated U.S. international carriers through the control of bottleneck services or facilities in Israel. DARCOM controls less than one percent of Israel's telecommunications market, which is dominated by Bezeq. DARCOM does not own transmission facilities or bottleneck facilities that would enable it to discriminate against unaffiliated U.S. carriers. III. Discussion 4. We believe that granting WorldCom's application would serve the public interest, convenience, and necessity by increasing competition on the U.S.-Israel route and thus benefit U.S. consumers. We will therefore grant the requested authorizations. 5. Under the Commission's rules, a U.S. carrier that is affiliated with a foreign carrier that is not a monopoly in a destination country and that seeks to be regulated as non-dominant bears the burden of submitting information sufficient to demonstrate that its foreign affiliate lacks the ability to discriminate against unaffiliated U.S. international carriers through control of bottleneck services or facilities in the destination country. Thus, in determining whether to classify WorldCom as non-dominant for the U.S.-Israel route, we examine whether its affiliate, DARCOM, has the ability to discriminate against unaffiliated U.S. international carriers terminating traffic in Israel through the control of bottleneck services or facilities in Israel. 6. We conclude that DARCOM does not control bottleneck services or facilities in Israel because it controls less than one percent of Israel's telecommunications market and does not own any transmission facilities or bottleneck facilities. Thus, WorldCom's affiliate does not have that ability to discriminate against unaffiliated U.S. international carriers terminating traffic in Israel. Consequently, we find that WorldCom should be regulated as a non-dominant carrier for service between the United States and Israel. IV. Ordering Clauses 7. Upon consideration of the application, filed pursuant to Section 214 of the Communications Act of 1934, as amended, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require a grant of the present application. Accordingly, IT IS ORDERED that application File No. I-T-C-97-008 IS GRANTED, and WorldCom is authorized to provide its international basic switched, private line, data, television, and business services between the United States and Israel on both a facilities-based and resale basis. 8. IT IS FURTHER ORDERED that our authorization of WorldCom to provide private lines as part of its authorized services is limited to the provision of such private lines only between the United States and Israel that is, private lines that originate in the United States and terminate in Israel or that originate in Israel and terminate in the United States. In addition, WorldCom may not and WorldCom's tariff must state that its customers may not connect private lines provided over those 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 Israel affords resale opportunities equivalent to those available under U.S. law, in accordance with the Foreign Carrier Entry Order. The limitations in this paragraph are subject to the exception contained in Section 63.18(e)(4)(ii) of the Commission's Rules, 47 C.F.R.  63.18(e)(4)(ii). 9. IT IS FURTHER ORDERED that WorldCom shall comply with Sections 63.21 and 63.15 of the Commission's Rules, 47 C.F.R.  63.21, 63.15. 10. IT IS FURTHER ORDERED that WorldCom shall be regulated as a non-dominant carrier for services between the United States and Israel. 11. 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 publication on this Order (see Section 1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau