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INTRODUCTION  S8-  S-1.` ` In this Order we grant Unisource USA, Inc. ("Unisource USA") authority, pursuant to  S-Section 214 of the Communications Act of 1934, as amended,L2 yO;- 47 U.S.C.  214 (1994).L to acquire and operate facilities to provide international services, including international basic switched, private line, data, and business services between the United States and Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Norway, Portugal, Spain and Sri Lanka (the "affiliated routes"). We also grant Unisource USA authority to resell noninterconnected international private lines ("noninterconnected private line resale") and international message telephone service ("IMTS resale") between the United States and the affiliated routes. Finally, we grant Unisource USA authority to resell interconnected private lines ("ISR") to France, Belgium, Denmark, Germany, Luxembourg and Norway immediately and to each of Austria, Finland, Greece, Hungary, Ireland, Italy, Portugal, Spain and Sri Lanka at such time as the Commission determines that at least 50 percent of the settled U.S.billed traffic on the relevant route is at or below the applicable benchmark settlement rate or that the country affords equivalent resale opportunities. This authority may be exercised by Unisource USA or any current or future whollyowned subsidiary of Unisource USA.  S<- 0II. BACKGROUND  S!- 2.` ` Unisource USA is a whollyowned subsidiary of Unisource N.V. ("Unisource"), a provider of international telecommunications services. Unisource is a joint venture owned by PTT Telecom BV ("PTT Telecom"), a Netherlands corporation that provides domestic and international"=#X0*&&&" telecommunications services in the Netherlands; Telia AB, a Swedish corporation providing domestic and international services in Sweden; and Swisscom Ltd., a Swiss corporation providing domestic and  S-international service in Switzerland.$. yO-ԍ XApplication for Authority under Section 214 of the Communications Act of 1934, as amended, to Acquire and Operate Facilities to Provide International Telecommunications Services and to Resell Telecommunications Services between the United States and Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Norway, Portugal,  {O"-Spain and Sri Lanka (December 12, 1997) (Unisource USA Application) at 23. (#$ Unisource USA currently has authority to provide international facilitiesbased and resale services between the United States and the Netherlands, the United Kingdom, Sweden and countries in which Unisource USA has no affiliates. Unisource is currently  S-seeking Section 214 authority to provide service to those countries in which it has an affiliate.hz. {O -ԍXUnisource USA Application at Appendix II.(#h We  S-placed the application on public notice. MCI filed a petition to condition the grant of authority.n . {Oz -ԍXMCI Comments (February 6, 1998) (MCI Comments).(#n  S-Unisource USA filed a response to that petition.. yO-ԍXLetter from William T. Lake and Jacquelynn Ruff, counsel to Unisource USA , to Laurie Sherman,  {O-Federal Communications Commission (February 20, 1998) (Unisource Response).(#  S5-3.` ` Unisource USA is affiliated with carriers in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Norway, Portugal and Spain, as a result of  S-Unisource's ownership of AT&TUnisource Communications Services ("AUCS").\ . {Og-ԍUnisource USA Application at 6, n. 9.\ These AUCS carriers are all new entrants into their respective markets and provide primarily private network  Si -services.i . {O-ԍSee, e.g., Unisource USA Application at 9 (AUCS (Oesterrich) GmbH) and 10 (AUCS Danmark A/S). Unisource USA is affiliated with new entrants in the Austrian and German markets owned  S6 -by SwissCom.C6 . {O-ԍId at 9, 14.C Unisource owns new entrants in Belgium, France, Germany, Greece, Italy,  S -Luxembourg and Spain.U  . {OQ-ԍId. at 10, 12, 14, 16, 18, 20.U Through Telia AB, Unisource USA is affiliated with Telia A/S, a provider of public international telephony service in Denmark, Telia Finland Oy, a long distance and international telecommunications provider in Finland, Telecom Eireann, the monopoly provider of voice telephony services in Ireland, and Suntel (Pvt) Ltd., a new entrant in Sri Lanka, which does not  S7-own any facilities.K 7@. {O"-ԍId. at 11, 16, 21. K In addition, through Telia AB, Unisource is affiliated with carriers in Latvia and  S-Lithuania that provide nonvoice telecommunications services.I . {Ov$-ԍXId. at 17.(#I Finally, Unisource USA is affiliated"d 0*G%G%" with JaszTel Ltd. Telecommunikacios, a new entrant which owns local infrastructure facilities in one  S-region of Hungary.A . {O5-ԍId. at 15.A  Sg- 5III. DISCUSSION  S4-  S-A.` ` Market Entry Analysis  S-  S-4.` ` We analyze this application from Unisource USA under the rules adopted by the  Sh-Commission in the Foreign Participation Order, which became effective on February 9, 1998. hZ. {Ob -ԍXSee Matter of Rules and Policies on Foreign Participation in the U.S. Telecommunications Market,  {O, -Market Entry and Regulation of Foreign Affiliated Entities, Report and Order and Order on  {O -Reconsideration, IB Docket Nos. 97142, 9522, FCC 97398 (released Nov. 26, 1997) (Foreign  {O -Participation Order), recon. pending. The effective date was established in a separate order, Rules and  {O -Policies on Foreign Participation in the U.S. Telecommunications Market, et. al., Order, FCC9810 (rel. Jan. 29, 1998). (#Ʈ In that order, the Commission eliminated the effective competitive opportunities ("ECO") test for applications to provide facilitiesbased and noninterconnected private line resale services and eliminated the equivalency requirement for applications to provide switched resale services between  S -the United States and World Trade Organization ("WTO") Members.w . {O-ԍXSee Foreign Participation Order at  3343.(#w Instead the Commission adopted, as a factor of its public interest analysis, a rebuttable presumption that applications for Section 214 authority from carriers to serve WTO Members do not pose concerns that would justify  S -denial of an application on competition grounds.M n . {O-ԍXId at  50.(#M Thus, absent serious concerns raised by the Executive Branch regarding national security, law enforcement, foreign policy or trade issues, or, in the exceptional case where a carrier's entry presents a very high risk to competition in the U.S. market and our safeguards and conditions would be ineffective, we will grant expeditiously Section 214  S8-applications of carriers wishing to serve WTO Members.R8 . {O-ԍId. at  51, 6166. R For applications to provide service to nonWTO countries, the Commission continues to apply the ECO test if the affiliated carrier in the non S-WTO country has market power.O . {O-ԍXId. at  128.(#O  Sl-5.` ` With the exception of Latvia and Lithuania, the affiliated routes are all WTO  S9-Members, entitled to a presumption of entry.9$. {O"-ԍXSee About the WTO, The Organization, Members, www.wto.org/wto/about/organsn6.htm.(#Ɛ The Executive Branch has not raised any concerns in regard to this application and nothing in the record leads us to question the presumption that entry will"0*G%G%b" promote competition in the U.S. international telecommunications market. Unisource USA's affiliates in Latvia and Lithuania do not have market power and therefore are not subject to the ECO test. As a result, we find it in the public interest to grant this application.  S4-B.` ` Conditions on Service  S-  S-6.` ` In the Benchmarks Order,. {O6-ԍXInternational Settlement Rates, Report and Order, IB Docket No. 96261, FCC 97280 (rel. Aug. 18,  {O-1997) (Benchmarks Order).(# the Commission adopted conditions that apply to authorizations to provide facilitiesbased services and ISR. With respect to the provision of facilitiesbased switched or private line services to markets in which a carrier has an affiliate, the settlement rate of the applicant's foreign affiliate must be at or below the relevant benchmark on the affiliated route at  S-the time service is commenced.$. {O -ԍXBenchmarks Order at  231. The Commission reaffirmed this condition is the Foreign Participation  {O -Order at  211. (# We imposed this condition in order to reduce the ability of U.S.licensed carriers to engage in a predatory price squeeze when providing service to an affiliated  S -market.c . {O-ԍXBenchmarks Order at  20716.(#c If the foreign affiliate does not provide facilitiesbased service to terminate international calls, there is no potential for anticompetitive conduct, and the facilities condition does not apply.  S7 -The Benchmarks Order's benchmark settlement rate is U.S. $0.15 per minute with Austria, Belgium,  S -Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Norway and Portugal.T . {O-ԍBenchmarks Order at  120.T The  S -benchmark settlement rate is U.S. $0.19 per minute for Greece, Latvia and Lithuania.: . {O-ԍId.:  Sl-7.` ` Unisource USA affiliates that provide facilitiesbased service to terminate international  S9-calls are Telia A/S, Telia Finland Oy and Telecom Eireann.i96 . {O-ԍXUnisource USA Application at pp. 11, 16. (#i Telia A/S and Telia Finland Oy have  S-settlement rates which are below the benchmark,$ . {On-ԍXTelia A/S's accounting rate is $0.135; Telia Finland Oy's rate is $0.13. See Consolidated Accounting Rates of the United States, Federal Communications Commission (Feb. 1, 1998). According to  {O-Unisource USA, Telia Finland Oy was formerly named Telivo Oy. See Unisource USA Application at 11, n. 19.(#Ƌ and therefore satisfy the facilitiesbased condition in  S-the Benchmarks Order. Telecom Eireann's settlement rate is $0.16B. {O'"-ԍXId.(#B and therefore Unisource USA may not provide facilitiesbased switched or private line service to Ireland until Telecom Eireann's settlement rate is at or below $0.15. "nF0*G%G%"Ԍ S-ԙ8.` ` In order to provide ISR, the Benchmarks Order requires that settlement rates for 50 percent of the settled U.S.billed traffic between the United States and that country are at or below the  S-benchmark.. {O-ԍXId. at  25859. We note that carriers providing service to an equivalent country are not required to comply with this condition.(# We adopted this condition in order to prevent oneway bypass of the accounting rate  Sh-system.Gh". {O*-ԍId. at  232.G This condition applies regardless of the type of telecommunications service provided by the foreign affiliate. The settlement rates with Belgium, Denmark, France, Germany, Luxembourg and  S-Norway are at or below the relevant benchmark settlement rate. {OV -ԍSee Consolidated Accounting Rates of the United States, Federal Communications Commission. and therefore Unisource USA may provide ISR service to those countries immediately. Settlement rates for the other affiliated routes that are WTO Members are not at or below the benchmark settlement rate and therefore Unisource USA may not commence service to Austria, Finland, Greece, Hungary, Ireland, Italy, Portugal, Spain or Sri Lanka until the Commission determines that 50 percent of settled traffic on the relevant route is at or below the applicable benchmark rate.  S -9.` ` In cases where the ISR benchmark condition is not met, the Foreign Participation  Sk -Order authorizes the provision of ISR to a WTO Member if the WTO Member provides equivalent  S9 -resale opportunities.&9 F. {O-ԍSee Foreign Participation Order at  85. The Foreign Participation Order modified the requirement  {O-imposed in the International Resale Order that there must be equivalent resale opportunities on an affiliated  {O-route. See Regulation of International Accounting Rates, Phase II, CC Docket No. 90337, First Report and Order, 7 FCC Rcd 559, 56163.  Thus, Unisource USA may provide ISR service to Austria, Greece, Hungary, Ireland, Italy, Portugal, Spain and Sri Lanka upon a finding by the Commission that these WTO Members provide equivalent resale opportunities. Unisource, however, has not attempted to make such a showing in its application.  S:- 10.` ` Latvia and Lithuania are not WTO Members. In order to provide ISR to Latvia and Lithuania, 50 percent of settled traffic on the relevant route must be at or below the benchmark rate  S-and the Commission must have determined that the nonWTO Member provides equivalent resale  S-opportunities.s4 . {Ov-ԍXSee 47 C.F.R.  63.18(3) and (4).(#s Thus Unisource USA may provide ISR to Latvia and Lithuania at such time as it demonstrates to the Commission that each meets the benchmark condition and provides equivalent resale opportunities.  S-C.` ` Regulatory Treatment(#`  Sp- 11.` ` Commission regulations have traditionally distinguished between "dominant" and "nondominant" carriers. We have classified carriers operating in the U.S. market, whether U.S. or foreignowned, as dominant in their provision of U.S. international services on particular routes in two"  0*G%G%" circumstances: (1) where we have determined that a U.S. carrier can exercise market power on the  S-U.S. end of a particular route; . {O5-ԍXSee generally International Competitive Carrier Policies, CC Docket No. 85585, Report and Order, 102  {O-FCC 2d 812 (1985), recon. denied, 60 RR 2d 1435 (1986); Regulatory Treatment of LEC Provision of Interexchange Services Originating in the LEC's Local Exchange Area and Policy and Rules Concerning  {O-the Interstate, Interexchange Marketplace, Second Report and Order in CC Docket No. 96149 and  {O[-Third Report and Order in CC Docket No. 9661, FCC 97142,  140 (rel. Apr. 18, 1997), recon. FCC  yO%-97229 (rel. June 27, 1997).(#ƾ and (2) where we have determined that a foreign carrier has market power on the foreign end of a particular route that can adversely affect competition in the U.S.  Sg-international services market.!gH. {OO -ԍXSee generally Regulation of International Common Carrier Services, Report and Order, 7 FCC Rcd 7331, 7334 19 (1992).(# Carriers regulated as dominant on a particular route due to an affiliation with a carrier possessing market power on the foreign end of that route are subject to  S-specific safeguards set forth in our rules. In the Foreign Participation Order, we established a presumption that a carrier with less than 50 percent market share on the foreign end should not be  S-subject to dominant carrier safeguards on that route._". {O-ԍForeign Participation Order at  232._   S6- 12.` ` Unisource USA qualifies for nondominant regulation on all the affiliated routes, except Ireland, because its affiliates have less than a 50 percent market share in the destination  S-markets.B#H 4 . yO-ԍXUnisource USA provided the following the market share information in its application at 921:(# XAUCS (Oesterrich) GmbH less than 0.5%; Swisscom Telekommunikationsgesellschaft (Wien) less than 1%; Unisource Belgium and AUCS (Belgium) less than 0.5% aggregate; AUCS (Danmark) less than 0.5%; Telia A/S (Denmark) 3% of the public international telephony services; AUCS (Finland) Oy less than 0.5%; Telia Finland Oy 10% of market for international switched voice and 5% for domestic long distance; SIRIS, AUCS (France) and Unisource Carrier Services France less than 0.5% aggregate; Unisource Carrier Services, Unisource Business Networks Deutschland, AUCS (Germany) and Kommunikationsnetze SudWes less than 1% aggregate; Unisource Hellas Telecommunication services and AUCS (Hellas) less than 0.5% aggregate; JaszTel 1%; AUCS (Italia) and Unisource Italia less than 0.5% aggregate; Telia Latvija less than 5%; Lietelija less than 1%; Unisource Business Networks Luxembourg and AUCS (Luxembourg) less than 0.5% aggregate; AUCS (Norge) less than 0.5%; Telia Norge less than 1%; NCR Portuguesa less than 0.5%; AUCS (Espa9a) and Unisource Espa9a less than 0.5% aggregate; Suntel 6% of fixed telephone services.(# B In the absence of any reason to doubt Unisource USA's data, we presume these affiliates do not have market power. Telecom Eireann, however, we presume has market power since it is the monopoly provider of public voice telephony services in Ireland. Although Unisource USA argues that the indirect nature and limited scope of common ownership interests suggest that Unisource USA"7 D#0*G%G% "  S-and Telecom Eireann are not affiliated,Y$. {Oh-ԍXUnisource Response at 12.(#Y Unisource USA has agreed to be regulated as a dominant  S-carrier on the U.S.Ireland route.]%Z. {O-ԍXUnisource Application at 23. (#] We conclude that Unisource USA should be regulated as dominant on the U.S.Ireland route.  S4- 13.` ` As a dominant carrier on the U.S.Ireland route, Unisource USA will be required to  S-comply with Section 63.10 of our rules.S&. {O -ԍXSee 47 C.F.R. 63.10.(#S Section 63.10 requires carriers regulated as dominant on a particular route due to a foreign carrier affiliation to: 1) file tariffs one day in advance of effectiveness; 2) maintain a limited form of structural separation between it and its foreign affiliate; 3) file quarterly reports of revenue, number of messages, and number of minutes of both originating and terminating traffic; 4) file quarterly reporting requirements on provisioning and maintenance services  S-provided by its foreign affiliate; and 5) file quarterly circuit status reports.}'~. {O -ԍForeign Participation Order at  222, see 47 C.F.R. 63.10(c).} In addition, Unisource will have to comply with certain reporting requirements regarding provision of switched resale services  S -between the United States and Ireland._( . {OL-ԍForeign Participation Order at  197._  S6 - 14.` ` MCI argues that the Commission should impose a number of additional conditions for Unisource's Section 214 authority to provide service to Ireland because Telecom Eireann retains a  S -monopoly on basic switched domestic and international voice services until January 1, 2000.Q) . {O-ԍXMCI Comments at 4.(#Q These include, with respect to service between the United States and Ireland: 1) a requirement to obtain prior approval before adding or discontinuing circuits; 2) a 14day notice period for tariff changes and a requirement to provide cost support for its tariffs; and 3) a requirement to file traffic and revenue,  S-circuit status and provisioning and maintenance reports on a monthly basis, rather than quarterly.H*4 . {O-ԍXId. at 6.(#H In addition, MCI requests that Unisource USA file with the Commission copies of all contracts, agreements and arrangements with Telecom Eireann that relate to routing of traffic, including  Sk-transiting traffic, between the United States and Ireland.H+k . {O-ԍXId. at 7.(#H Finally, MCI says the Commission should require Unisource to publish all contracts, arrangements and agreements that it enters into with another carrier under which Unisource resells that carrier's services; should be prohibited from offering its switched resale services at an average price that is below the average price at which Unisource obtains those services from underlying carriers; and should submit semiannual reports that demonstrate it has"X +0*G%G%3"  S-not offered its switched resale services below its average variable costs.B,. {Oh-ԍXId.(#B  S-15.` ` We decline to apply these additional conditions. In the Foreign Participation Order, the Commission dealt at length with the issue of safeguards for U.S. carriers affiliated with foreign carriers that have sufficient market power to affect competition adversely in the U.S. market. In that  S-Order, we adopted a targeted approach designed to monitor and detect anticompetitive behavior in the  S-U.S. market without imposing regulations that are more burdensome than necessary.g-Z. {O-ԍXForeign Participation Order at  143.(#g The Commission revised its dominant carrier regulations to eliminate those that were not essential to preventing anticompetitive conduct, while at the same time reserving the right to impose more burdensome conditions in the face of evidence of anticompetitive conduct. As a result, the Commission either eliminated or declined to adopt most of the conditions that MCI requests we now apply to Unisource USA.  Sk -16.` ` Specifically, the Commission eliminated the requirement for prior approval before  S8 -adding or discontinuing circuitsG.8 . {O-ԍId. at  249.G and the 14day notice period for tariffs.G/8 ~. {OV-ԍId. at  244.G It also adopted quarterly reporting requirements on circuit status and provisioning and maintenance, rejecting as "unnecessarily  S -onerous" a request that the reports be filed on a monthly basis.]0 . {O-ԍXId. at  277, 278, 283.(#] The Commission declined to adopt a requirement for switched resellers proposed by MCI for filing all contracts, agreements and  Sl-arrangements relating to services and traffic on all routes.G1l. {O-ԍId. at  205.G But Commission rules already impose  S9-filing requirements similar to those MCI requests we impose on Unisource.P294 . {O -ԍSee 47 C.F.R.  43.51.P Similarly, the Commission declined to adopt a prohibition on offering switched resale at an average price below that  S-at which the applicant obtains the services.H3 . {O9-ԍId. at  206. H Finally, the Commission did adopt a reporting requirement for switched resellers, applicable to Unisource USA on the U.S.Ireland route, that should  Sm-address MCI's concerns about the potential for anticompetitive conduct on that route.O4mX . {Oe!-ԍXId. at  211.(#O  S-17.` ` The Commission stated numerous times in the Foreign Participation Order that it retained the authority to impose additional conditions on carriers in the face of anticompetitive"40*G%G%R"  S-behavior.X5. {Oh-ԍSee e.g.,  212, 251, 295.X We agree with Unisource USA, however, that there is no basis at this time to impose any special conditions on Unisource USA in view of the absence of any evidence of anticompetitive  S-conduct.O6Z. {O-ԍUnisource Response at 3.O Should such evidence be brought to our attention, we will consider the appropriateness of additional conditions.  S-0 IV. CONCLUSION  S- 18.` ` We conclude that grant of Unisource USA's application to provide service on the affiliated routes is in the public interest. We believe that additional services between the United States and Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Norway, Portugal, Spain and Sri Lanka will promote competition and the introduction of new international telecommunications services.  S -  Si -V. ORDERING CLAUSES ă  S -19.` ` In view of the foregoing, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require the grant of this application.  Sj-20.` ` Accordingly, IT IS HEREBY ORDERED that File No. ITC 97470 IS GRANTED and Unisource USA, Inc. is authorized to: X1) provide facilitiesbased service between the United States and Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Norway, Portugal, Spain and Sri Lanka immediately;(# X2) provide facilitiesbased service between the United States and Ireland at such time as Telecom Eireann's settlement rate with its U.S. carrier correspondents is at or below $0.15;(# X3) resell international private lines not interconnected to the public switched network for the provision of international private line services between the United States and Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Norway, Portugal, Spain and Sri Lanka immediately; (# X4) provide international switched services using private lines between the United States and Belgium, Denmark, France, Germany, Luxembourg and Norway immediately; (# X5) provide international switched services using private lines between the United States and Austria, Finland, Greece, Hungary, Ireland, Italy, Portugal, Spain and Sri Lanka at such time as the Commission has determined that 50 percent of the settled traffic on the relevant route is at or below the applicable benchmark rate or the country provides equivalent resale opportunities; and(#" 60*G%G%F#"ԌX6) provide international switched services using private lines between the United States and Latvia and Lithuania at such time as 50 percent of the settled traffic on the relevant route is at or below the benchmark rate and the Commission has determined that the country provides equivalent resale opportunities(#   S- 21.55` ` 87DOMIT IS FURTHER ORDERED that Unisource USA shall be regulated as a dominant carrier on the U.S.Ireland route, pursuant to Section 214 of the Act, 47 U.S.C.  214, and Section 63.10 of the Commission's rules, 47 C.F.R.  63.10, and shall comply with the requirements of paragraph (c) of that section. The quarterly traffic reports filed pursuant to Section 63.10(c) must include the information required by Section 43.61 of the Commission's rules, 47 C.F.R.  43.61, for "facilities resale" on the U.S. Ireland route.  S - 22.` ` This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R.  0.261 (1996), and is effective upon adoption. Petitions for reconsideration under Section 1.106 of the Commission's rules, 47 C.F.R.  1.106 (1996), or applications for review under Section 1.115 of the Commission's rules, 47 C.F.R.  1.115 (1996), may be filed within 30 days of the date of public notice of this Order and Authorization (see 47 C.F.R.  1.4(b)(2)).  Sj- ` `  hh,FEDERAL COMMUNICATIONS COMMISSION  S- ` `  hh,Diane Cornell ` `  hh,Chief, Telecommunications Division  S-` `