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(1) (a) i) a)4 =(O4WGl *O4Oq Leventhal6@6wwLeventhal, Senter & Lerman Doc Style*O4ÿUVGl.EPQ    #XN\  PXP#2rKZi Kk KmK;p"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""K,H6X@`7h@ ?xxx,<x6Nhez7XHV"G($,=hG PE37hPG7jC:,K9Xj\  P6G;XP Hy.X80,KX\  P6G;P I7nC:,[|Xn4  pG;X\S5hC:,p2Xh*f9 xr G;XXTW!@(#,Kh@\  P6G;hPUH5!,Ki,5\  P6G;,P\V{,W80,p0W*f9 xr G;X\X >(#,p!h>*f9 xr G;hX2K+FZv"i~'^#)2<<.<<<<R  {O#-ԍXxId. at 1617.(#L  X-Sprint provides additional information regarding the Dial and Benefit tariff,^? {Ou&-ԍXxSee Sprint Letter & Attachment.(#^ but together with DT, it questions the Commission's jurisdiction to review the tariff. In addition, Sprint" v?0*(("  X-and DT assert that the Sprint Declaratory Ruling does not require a written agreement, as  X-ACC requests, to demonstrate the ability to resell in Germany.n@ {Od-ԍXxSee Sprint Opposition at 19; DT Statement at 4.(#n  X-x20.` ` As an initial matter, we find that MCI's request for all laws governing basic  X-switched resale is unnecessary. At the time of the Sprint Declaratory Ruling, the Commission reported that the German government indicated that "DT may enter into switchless resale agreements with third parties, as subcontractors, within the current . . . German legislative  Xc-framework[]."mAcZ {On -ԍXxSprint Declaratory Ruling, 11 FCC Rcd at 1869.(#m MCI provides no evidence that Germany has reversed its position on this matter. Nor do we find that the standard we apply to the resale milestone requires the other  X5-material listed by MCI.QB5 {O -ԍXxSee supra  12.(#Q  X -x21.` ` In the Sprint Declaratory Ruling, the Commission ruled that the resale milestone is achieved once there "is the existence of opportunities to provide basic switched  X -voice resale."mC ~ {O -ԍXxSprint Declaratory Ruling, 11 FCC Rcd at 1868.(#m We agree with Sprint that DT's Dial and Benefit tariff creates opportunities  X -for basic switched resale where none previously existed, in contrast to BTNA's claim that only a legal basis exists for resale. The recent announcement that ACC and DT have entered into a switchless resale agreement using the Dial and Benefit tariff further demonstrates that opportunities exist for basic switched resale. The Dial and Benefit program allows entities to  Xh-offer switchless resale to domestic and international customers, as required in the Sprint  XS-Declaratory Ruling.-DZS {O-ԍXxSee Deutsche Telekom, General Terms and Conditions, Dial & Benefit (Nov. 1996) (attached to the Sprint Letter) ("With this service, a basic discount or volume discount is given for certain domestic and international calls . . . .").(#- The record, moreover, contains no evidence disputing Sprint's assertion  X>-that the Dial and Benefit tariff is available on a nondiscriminatory basis.eE>2  {O!-ԍXxSee supra note 57 & accompanying text.(#e  X-x22.` ` We nonetheless remain concerned about whether the Dial and Benefit tariff will promote a healthy, viable resale market in Germany. A competitive market requires multiple providers offering customers a range of service options. In addition to ACC's entry, therefore, we anticipate that other providers will use the Dial and Benefit tariff to offer switchless voice resale in Germany.  X-x23.` ` Despite these concerns, we find that the availability of the Dial and Benefit tariff serves as an adequate "interim step" towards fullfledged competition in the German"o E0*((1"  X-market.mF {Oy-ԍXxSprint Declaratory Ruling, 11 FCC Rcd at 1869.(#m If switched voice resale services develop on a node by node or niche market basis, we nonetheless believe that such services satisfy the Commission's requirement that Germany  X-permit the provision of basic switched voice resale "offered to the public."QGZ {O-ԍXxId. at 1868.(#Q In addition, we find that the ACCDT switchless resale agreement belies the arguments that the Dial and  X-Benefit program affords no meaningful opportunity for switchless resale.MH {OA -ԍXxSee ACC Press Release, "ACC Corp. subsidiary signs resale agreement with Deutsche Telekom first  yO -step in entering German telecommunications marketplace," May 20, 1997 (quoting Chris Bantoft, Managing Director of ACC subsidiary ACC Telecom, noting the significance of the agreement, "[t]his creates a window of opportunity for ACC Telecom, by giving us a sixmonth lead over potential competitors in the German telecommunications market before it becomes more fully deregulated in January of 1998").(#M Because we find that the Dial and Benefit tariff creates opportunities for basic switched voice resale, we see no reason to withhold a grant of Sprint's application until 30 days after ACC alerts the Commission of its switchless resale agreement.  X1-x24.` ` We emphasize, however, that attainment of these two milestones represents only an interim step towards effective competition in the German telecommunications market by January 1, 1998. On February 15, 1997, the German government made binding commitments to establish an independent regulatory authority and fair rules of competition, beginning January 1, 1998. As part of the World Trade Organization (WTO) Agreement on Basic Telecommunications, Germany signed the Reference Paper, which requires adoption of procompetitive policies including an impartial, independent regulator, reasonable and nondiscriminatory interconnection rules, and competitive safeguards to prevent crosssubsidization, preclude use of carrier information for anticompetitive purposes, and provide timely disclosure of technical network information. We believe that further attention must be  XK-devoted to these WTO commitments.fI\Kf  {Ob-ԍXxSee APC PCS d/b/a American Personal Communications, Petition for Declaratory Ruling Concerning  {O,-Section 310(b)(4) of the Communications Act of 1934, as amended, Declaratory Ruling and Order, DA 971038, File No. ISP97001,  1718 (Int'l Bur. rel. May 16, 1997).(#f In particular, the adoption and timely implementation of an effective regulatory framework remain to be accomplished. We have significant concerns that the German government has yet to install the new regulatory authority created by the TKG. We believe that, with little more than six months remaining before the German market is fully liberalized, the uncertainty surrounding the regulatory framework is hindering new competitors' ability to prepare to enter the market. With regard to the current proceeding, however, we find that Sprint has demonstrated that the two milestones have been met in Germany, and we therefore lift the circuit restriction imposed on Sprint's U.S. X-Germany route as a condition of the Sprint Declaratory Ruling. "g I0*(("  X- "EI xC.` ` Application to Operate Additional Circuits  X-x25.` ` As noted above, Sprint is subject to dominant carrier regulation on its U.S.Germany route and thus must obtain prior Section 214 authority to acquire and operate any  X-additional circuits on that route.wJ {O-ԍXxSee Sprint Declaratory Ruling, 11 FCC Rcd at 1869.(#w Sprint's application seeks to expand its existing Section 214 authority by operating one 155 Mbps STM1 on the TAT12/13 submarine cable system with connecting terrestrial facilities in order to provide service between the United States and  X_-Germany.ZK^_Z {Oj -ԍXxSee Sprint Application App. A at 8. If, due to capacity constraints, Sprint is unable to acquire and  {O4 -operate an entire STM1, it requests authority for such capacity as it is able to acquire and operate. See  {O -id. App. A at 8 n.10.(#Z In the Sprint Declaratory Ruling, the Commission stated that "[u]pon Sprint's demonstration to the Commission that these two milestones have been met, the Commission will promptly lift this [circuit] restriction from all previously conditioned Section 214  X -authorizations."mL  {OM-ԍXxSprint Declaratory Ruling, 11 FCC Rcd at 1869.(#m Given our findings above that these two milestones have been satisfied, we find that the public interest would be served by granting Sprint's application to operate additional capacity up to one 155 Mbps STM1 on the U.S.Germany route.  X -x26.` ` In the Sprint Declaratory Ruling, the Commission concluded that the public interest would be served by granting the DT and FT investments in Sprint, despite the failure of Germany and France to offer effective competitive opportunities. The Commission found that countervailing public interest factors, including the German and French governments'  Xf-commitments to liberalization, weighed in favor of granting the petition.OMf {O)-ԍXxSee id. at 1850.(#O Given the  XO-Commission's earlier public interest finding, we see no reason to apply the Foreign Carrier  X:-Entry Order framework, including the effective competitive opportunities analysis, again in this proceeding. In light of the current and planned liberalization taking place in Germany, we find that a grant of Sprint's application to operate additional capacity up to one 155 Mbps STM1 on its U.S.Germany route serves the public interest.  X-\ IV. CONCLUSION ă  X-x27.` ` After careful consideration of the arguments made by all parties, we conclude that the public interest will be served by lifting the circuit restriction imposed on Sprint's U.S.Germany route and allowing Sprint to operate the additional requested capacity on that  XV-route. We find that the two milestones identified in the Sprint Declaratory Ruling, implementation of alternative infrastructure networks and the existence of opportunities for basic switched voice resale, have been met in Germany. As a result, we lift the circuit restriction, and pursuant to Section 214, we find that the public interest requires that Sprint be" M0*((y" authorized to increase its capacity up to one 155 Mbps STM1 on the TAT12/13 submarine cable system with connecting terrestrial facilities in order to provide service between the" M0*((y" United States and Germany.  X- V. ORDERING CLAUSES ă  Xv-x28.` ` Accordingly, IT IS ORDERED that the circuit restriction imposed on Sprint's  X_-U.S.Germany route, see Sprint Declaratory Ruling, 11 FCC Rcd 1850, 1873 ( 141) (1996), is hereby removed. Sprint has demonstrated that the two milestones have been met in Germany, and thus removal of the condition is warranted.  X -x29.` ` IT IS FURTHER ORDERED that Sprint's application to operate additional capacity up to one 155 Mbps STM1 on the TAT12/13 submarine cable system with connecting facilities in order to provide service between the United States and Germany IS GRANTED pursuant to Section 214 of the Communications Act, 47 U.S.C.  214.  X-x30.` ` IT IS FURTHER ORDERED that AT&T's Petition to Deny Sprint's application IS DENIED.  XM-x31.` ` This order is effective upon adoption. Petitions for reconsideration under Section 1.106 of the Commission's rules may be filed within 30 days of the public notice of  X-this order (see Section 1.4(b)(2) of the Commission's rules). x` `  hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Peter F. Cowhey  Xi-x` `  hh@Chief, International Bureau Đ