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HIGHLIGHT 3Large, Italicized and UnderscoredY V -qLETTERHEADLetterhead - date/marginsZu H XX  3'3'LetterheadZ K e VE L"n3'3'LetterheadZ K e VE L"nE9    * 3'3'LetterheadZ K e VE L"n3' II"n"Tv3'StandarddZ K e VE L"nU9 Ѓ   INVOICE FEETFee Amount for Math Invoice[ ,, $0$0  2Mu\-p]8 PfQ  )a [ PfQO Style 12Dutch Italics 11.5i$$F )^ `> XifQ  )a [ PfQO Style 11Initial Codes for Advanced IIjJ )a [ PfQK  dddn  #  [ X` hp x (#%'b, oT9 ! )^ `> XifQ ` Advanced Legal WordPerfect II Learning Guide   x )^ `> XifQ Advanced Legal WordPerfect II Learning Guide   j-n )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  jBX )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 Style 3oDutch Roman 11.5 with Margins/Tabsk )a [ PfQO  ddn  # c0*b, oT9 !2ރlm6n|‚o>Style 4 PSwiss 8 Point with MarginslDq Co> PfQ  dddd  #  Style 1.5Dutch Roman 11.5 Fontm4h )a [ PfQO  dddn Style 2Dutch Italic 11.5n$ )^ `> XifQ Style 5Dutch Bold 18 Pointo$RH$L T~> pfQ_  )a [ PfQO 2^pqrPsWStyle 7Swiss 11.5p$$V )ao> PfQ ]  )a [ PfQO Style 6Dutch Roman 14 Pointq$$N w [ PfQ   )a [ PfQO Style 10oInitial Codes for Advancedr U )a [ PfQK  dddn  ##  [[ b, oT9 !b, oT9 !n )^ `> XifQ ` Advanced Legal WordPerfect Learning Guide   f )^ `> XifQ Advanced Legal WordPerfect Learning Guide   Q" )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  QN~ )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 Style 8PfInitial Codes for Beginninggsi )a [ PfQK  dddn  # X` hp x (#%'b, oT9  [ &e )^ `> XifQ ` Beginning Legal WordPerfect Learning Guide   d )^ `> XifQ Beginning Legal WordPerfect Learning Guide   jH )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  j )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 2Кtuvw9Style 9Initial Codes for Intermediatet )a [ PfQK  dddn  # X` hp x (#%'b, oT9 Њ [ e )^ `> XifQ ` Intermediate Legal WordPerfect Learning Guide   3 )^ `> XifQ Intermediate Legal WordPerfect Learning Guide   jf )^ `> XifQ    Copyright  Portola Systems, Inc.`+ >Page  jX )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 UpdateInitial Codes for Update Moduleu )a [ PfQK  dddn  #  [ X` hp x (#%'b, oT9 !n )^ `> XifQ ` Legal WordPerfect 5.0 Update Class Learning Guide   f )^ `> XifQ Legal WordPerfect 5.0 Update Class Learning Guide   Q" )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`7 CPage  jN~ )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 a1IndentedLeft-indented textv6n ? I.Xa2IndentedLeft-indented textw?C ? A.` ` 2xyzK{a3IndentedLeft-indented textxHP ? ` ` 1. a4IndentedLeft-indented textyQp- ? ` `  a.` 'a5IndentedLeft-indented textz[ܽ ? ` `  '(1) hh-a6IndentedLeft-indented text{dK ? ` `  'hh-(a)42m|}~s}}a7IndentedLeft-indented text|l݇ ? ` `  'hh-4i)h:a8IndentedLeft-indented text}u-b ? ` `  'hh-4:a)ppAa1InterrogatoresStarts with A. at margin, 1 at first indent~UZZI.a1OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4$ 2'Xa2OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4/ a3OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4: a4OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4E a5OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4P   23pa6OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4[   a7OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4f  a8OutlineE+O4*ÿUI. A. 1. a. (1) (a) i) a)4 =(O4WGl *O4q Leventhal6@6wwLeventhal, Senter & Lerman Doc Style*O4ÿUVGl.EQ    #XN\  PXP#2UKrWqa1DAKBt*3  S'1.` ` a3DAKa1for ordersenter, tab, parnum, two spaces5Q0 6"]J  1. a2InterrogatoroDStarts with A. at margin, 1 at first indentk*<KL2Kqqqiqکa3InterrogatoroDStarts with A. at margin, 1 at first indentk*<MNa4InterrogatoroDStarts with A. at margin, 1 at first indentk*<OPa5InterrogatoroDStarts with A. at margin, 1 at first indentk*<QRa6InterrogatoroDStarts with A. at margin, 1 at first indentk*<ST2-q}qr_\ѫa7InterrogatoroDStarts with A. at margin, 1 at first indentk*<UVa8InterrogatoroDStarts with A. at margin, 1 at first indentk*<WXa4DAKآy.X80,ɒX\  P6G;P7jC:,ynXj\  P6G;XP2a=5,u&a\  P6G;&P2e=5,&e4  pG;&\0_=5,%&_*f9 xr G;&X P:% ,J:\  P6G;JP!H5!,),5\  P6G;,P\"{,W80,%BZW*f9 xr G;X1a=5,<4&a9 xOG;&2_ S' X   C S'  #&I\  P6Qu&P#Federal Communications Commission xxXDA98873    yx}dddyC Pb Before the Federal Communications Commission  S'"2Washington, D.C. 20554 ă In the Matter of#&I\  P6Qu&P#) ) OPTEL TELECOMMUNICATIONS, INC.) )  Sh'TELEGLOBE INC.) SCL92004TC )  S'Application for Authority to Transfer )pp Control of the CANUS1 Submarine Cable ) Landing License)  S ' ORDER AND AUTHORIZATION ă  S7'` ` Adopted: May 8, 1998q Released: May 8, 1998 By the Chief, International Bureau:  S8'A I. INTRODUCTION ă  S'1.` ` In this Order, we grant the application of Optel Telecommunications, Inc. ("Optel") and Teleglobe Inc. ("Teleglobe") to transfer control of Optel from the current shareholders to Teleglobe. At the same time, we modify the conditions imposed on Optel with regard to the operation of the CANUS1 submarine cable system.  S'u> II. BACKGROUND ă  Sn'2.` ` Optel is a Delaware corporation, in which 80 percent of the shares are owned by six shareholders and 20 percent by Teleglobe, a Canadian corporation. Teleglobe has numerous  S'subsidiaries, including Teleglobe USA Inc. ("Teleglobe USA") and Teleglobe Canada Inc.$Ƙ yOp'ԍXOptel Communications and Teleglobe Inc., Application for Authority to Transfer Control of the  {O8'CANUS1 Submarine Cable Landing License, SCL9204TC (January 15, 1998) (Joint Application) at  {O '1. Optel's name was changed to Optel Telecommunications, Inc. See Letter from Jay S. Newman, counsel for Optel, to Magalie Roman Salas, Federal Communications Commission (Mar. 27, 1998).(# Optel  S'holds a license from the Commission&Ƙ {O)#'ԍXSee Optel Communications Inc., Conditional Cable Landing License, 8 FCC Rcd 2267, 22723 (1993)  {O#'(Optel Order) (conditional landing license); Optel Communications Inc., Final Cable Landing License, 9  {O$'FCC Rcd 6153 (1994) (final license), recon. denied 11 FCC Rcd 1878 (1996); 11 FCC Rcd 7121 (1996) (modification to add Bermuda landing). (# to land and operate in the United States the CANUS1  S'submarine cable system, a fiber optic cable with landing points in New Jersey and Nova Scotia.NƘ {O''ԍJoint Application at 2.N The shareholders of Optel have agreed to sell all of their interests in Optel to Teleglobe, at which time"o4 ,**UUb"  S'Teleglobe would be the sole shareholder of Optel.B] {Oh'ԍId. at 23.B Optel would continue to be the licensee of  S'CANUS1.  Sg'3.` ` On January 15, 1998, Optel and Teleglobe filed for authority under the Submarine  S4'Cable Landing ActL4Z] yO.'ԍ47 U.S.C.  3439. L to transfer control to Teleglobe. We placed the application on public notice. MCI  S'filed comments.f] {O 'ԍMCI Comments (February 6, 1998) (MCI Comments).f Optel and Teleglobe replied and MCI filed a response.|] {O 'ԍXReply of Optel and Teleglobe (February 20, 1998) (Joint Reply); Reply of MCI (March 4, 1998) (MCI  {O 'Reply).(# Pursuant to Section  S'1.767(b) of the Commissions rules,O] yOF'ԍ5 C.F.R.  1.767(b) (1996).O and Executive Order No. 10530, we informed the Department of  S'State of the application.s h ] yO'ԍXLetter from Diane J. Cornell, Chief, Telecommunications Division, International Bureau, Federal Communications Commission to Steven W. Lett, Deputy U.S. Coordinator, Office of International Communications and Information Policy, Bureau of Economic and Business Affairs, U.S. Department of State (January 16, 1998).(#s The Department of State, after coordinating with the Department of Commerce's National Telecommunications and Information Administration and the Department of  S5'Defense, stated it had no objection to the transfer of control of CANUS1X Z5P ] yO%'ЍXLetter from Vonya B. McCann, Deputy Assistant Secretary, Bureau of Economic and Business Affairs, U.S. Department of State, to Regina M. Keeney, Chief, International Bureau, Federal Communications  {O'Commission (April 16, 1998) (State Department Letter).(#X and did not request any special conditions for national security purposes.  S '4.` ` Teleglobe USA currently has authority to provide facilitiesbased and resale services  Si 'between the United States and Canada with no restriction on the type of facility used.R \i r] {O{'ԍXTeleglobe USA Inc., Order, Authorization and Certificate, ITC96410 and ITC96412 (rel. Feb. 3,  {OE'1998) (Teleglobe USA 1998 Authorization).  The Authorization places no restrictions on the types of facilities that Teleglobe USA may use.(#R Prior to that, Teleglobe USA received authority to acquire unlimited capacity specifically on CANUS1 to provide  S 'services to international points other than Canada.  ] {O9!'ԍXTeleglobe USA Inc., Order, Authorization and Certificate, ITC96020 and ITC96411 (rel. May 22,  {O"'1997) (Teleglobe USA CANUS1 Authorization).(#  S ' F III. DISCUSSION ă  S7'A.Transfer of Control  S'5.` ` The Optel Order states that Optel must obtain Commission approval as required by" ,C)C)UU"  S'Ordering Clauses (4), (8) and (9) ] yOh'ԍXThe pertinent ordering clauses are as follows:(# X(4) Neither this license, nor the rights granted herein, shall be transferred, assigned, . . . or disposed of indirectly by transfer of control of the Licensee to any persons, unless the Federal Communications Commission shall give prior consent in writing.(# X(8) The Licensee shall obtain prior Commission approval for any proposed increased in Teleglobe's level of ownership or participation in the Licensee.(# X(9) The Licensee shall, by application, obtain Commission approval prior to the sale or transfer to a foreign entity of five percent or more in the aggregate of U.S.owned and controlled Optel stock.(# to: (1) transfer control of Optel; (2) permit Teleglobe to increase its level of ownership from 19.99 percent to 100 percent; and (3) permit Optel to transfer to Teleglobe, a Canadian corporation, greater than five percent of shares presently held by U.S. interests.  Sg'Teleglobe and Optel argue that the Commission's Foreign Participation Order, which became  S5'effective on February 9, 1998,5( ] {O'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 (rel. 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). (#ƪ establishes the applicable standard of review of their application.  S'That Order adopted, as a factor of the public interest analysis, a rebuttable presumption that applications for licenses to land and operate cables from entities from members of the World Trade  S'Organization (WTO)BX] yO'ԍXThe WTO was created on January 1, 1995, pursuant to the Marrakesh Agreement Establishing the World Trade Organization. 33 I.L.M. 1125 (1994). Members of the WTO are countries or customs territories. A list of Members is available on the WTO website, www.wto.org.(#B do not pose concerns that would justify denial of an application on competition  Sk'grounds.fk] {O'ԍXForeign Participation Order at  93.(#f In addition, the Commission concluded that it would no longer automatically impose a  S8'restriction on foreign ownership of cable landing stations.F8\] {O4'ԍId. at  96.F 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 no conditions would adequately address a very high risk to competition,  S 'we will grant applications to land and operate cables from entities from WTO Members.O ] {O-!'ԍId. at  93, 95. O  S9 '6.` ` We agree with Teleglobe and Optel that the policies enunciated in the Foreign  S 'Participation Order apply to this application.  We concluded in the Foreign Participation Order that  S 'additional foreign investment can promote competition in the U.S. market.F ] {O%'ԍId.at  13. F We adopted an open  S 'entry policy for applications to land and operate submarine cables.A ] {OT('ԍId. at 93.A Canada is a member of the" ,C)C)UU+" WTO. Therefore, we conclude that the public interest will be served by permitting Teleglobe to acquire 100 percent of Optel. We also note that we have already found Teleglobe's entry into the  S'U.S. market for international services to be in the public interest.] {O'ԍXSee Teleglobe USA 1998 Authorization; Teleglobe USA CANUS1 Authorization.(#Ə  S4'B.XRegulatory Conditions(#  S'7.` ` In the Optel Order, the Commission imposed a number of conditions in addition to those regarding a change in control of Optel. The Commission did so at that time because we were concerned that the Canadian regulatory policy requiring "maximum use of Canadian facilities" could  S6'place U.S. carriers at a disadvantage.Z6Z] {O0 'ԍSee Optel Order, 8 FCC Rcd at 2271.Z The Optel Order noted that U.S. carriers were precluded from using CANUS1 for intraCanada or Canadaoverseas traffic requirements, while at the same time CANUS1 could be used to compete for the routing of intraU.S. and U.S. international traffic through  S 'Canada.: ] {O*'ԍId.: Thus,we required that: 1) Optel not sell or lease any capacity on CANUS1 to Teleglobe unless the Commission approves the acquisition of additional capacity; and 2) that Optel file copies of  S8 'any contracts entered into with Teleglobe for the sale or lease of any capacity on CANUS1.t8 ~] {OV'ԍSee Optel Order, 8 FCC Rcd at 2272, Ordering Clauses 6 and 7.t By requiring Teleglobe to seek additional authorization, the Commission reasoned that it would address  S 'any potential anticompetitive conduct through the Section 214 licensing process.I ] {O'ԍId. at 2271, n.35.I  Sl'8.` ` MCI claims that these conditions are still necessary to prevent Teleglobe from acting anticompetitively. It also requests that the Commission require Teleglobe to report on a monthly basis the outbound and inbound minutes carried by it or its affiliates over the CANUS1 cable so as to  S'enable the Commission to detect anticompetitive behavior caused by Teleglobe's use of CANUS1.F] {O'ԍMCI Reply at 3.F MCI argues that Teleglobe could bypass U.S.third country accounting rates by refiling through Canada.  S'9.` ` We decline to maintain the condition requiring prior approval for Teleglobe to add  S'capacity on CANUS1. In the Optel Order and the Commission's reconsideration of that order, the Commission noted that it imposed this condition in order to ensure that Teleglobe's use of CANUS1  So'would be subject to Section 214 review.s\o4 ] yOC"'ԍXOptel Communications, Inc., Application for a license to land and operate in the United States a  {O #'submarine cable extending between Canada and the United States, Order on Reconsideration, File No.  {O#'SCL92004, FCC 95485 (rel. Jan. 11, 1996) (Optel Recon Order).(#s We have since granted Section 214 authorizations to  S<'Teleglobe to provide facilitiesbased service between the United States, Canada and foreign points.<X ] {O4&'ԍSee Teleglobe USA 1998 Authorization and Teleglobe CANUS1 Authorization. Ĉ We thus agree with Optel and Teleglobe that this condition has been superseded by those Section 214 orders. ",C)C)UU"Ԍ S'ԙ 10.` ` We also decline to require Teleglobe to provide monthly traffic reports of traffic routed over CANUS1. We are not persuaded by MCI that transfer of control of CANUS1 would significantly enhance Teleglobe's ability to bypass U.S.third country accounting rates. As Optel and  Sg'Teleglobe note, there is significant circuit capacity between the United States and Canada.Lg] {O'ԍSee Optel Reply at 4.L We agree that CANUS1 is not a bottleneck facility either between the United States and Canada or anywhere else. There are many other facilities that Teleglobe could use. In fact, we rejected this bypass  S'argument in reconsidering the grant of Optel's license and in the Teleglobe USA 1998 Authorization. On reconsideration, AT&T argued that Teleglobe could use CANUS1 to circumvent the normal U.S.European settlements process. The Commission stated that existing rules address any concern about  S6'bypass.N6Z] {O0 'ԍOptel Recon Order at 7.N In the Teleglobe USA 1998 Authorization, the Commission noted that it is unlikely that Teleglobe Canada would have a bargaining advantage over U.S. carriers such that it could negotiate a settlement rate with a third country that was so low that, when combined with the U.S.Canada settlement rate or other transport cost, it would be more economically attractive than the direct U.S. Sk 'third country settlement rate.]k ] {O'ԍTeleglobe USA 1998 Authorization at 4.] Given the available circuit capacity, we fail to see why Teleglobe's control of CANUS1 makes it more likely that Teleglobe would engage in bypass. Therefore, we do not see the need to impose reporting requirements as part of the cable landing license.  S ' 11.` ` Consistent with the request of$8Irom the State Department,W ~] {O'ԍXState Department Letter.(#W we will maintain the condition in Optel's license that requires it to file any contracts it may enter into with Teleglobe for provision of capacity on CANUS1. We find applying this condition only to Teleglobe to be appropriate, even in a mostfavorednation environment because Teleglobe controls both ends of the cable. It owns 100 percent of the cable landing station in Canada directly and, with its acquisition of 100 percent of the stock of Optel, will indirectly control the landing station in the United States. We believe that control of both ends of the cable may create a potential for anticompetitive discrimination against other carriers that such a reporting requirement can prevent. It is not necessary to require other U.S. carriers using CANUS1 to abide by the same condition because only Teleglobe is in the position of controlling both ends of the cable. Finally, we agree with Optel and Teleglobe that the condition need not be modified to impose the applicable filing requirement on Teleglobe because Optel remains the licensee.  S' 12.` ` MCI noted in its Reply that the same kind of national security arrangement required in  S'the  BT/MCI Order would also be applicable in this case.!] {O!'ԍXMCI Reply at 3, n. 7, citing In the Matter of the Merger of MCI and British Telecommunications, plc.,  {OP"'Memorandum Opinion and Order, FCC 97302 (rel. Sept. 24, 1997).(# As Optel and Teleglobe state, neither the Department of Defense nor the Federal Bureau of Investigation have raised any issues with this  Sq'application.N"ql ] {O}%'ԍJoint Reply at 4, n. 8.N Moreover, the Department of State consulted the Department of Defense prior to informing the Commission that it had no objections to the transfer of control. Therefore, we decline to require any special national security arrangements. " ",C)C)UU"Ԍ S'D IV. CONCLUSION ă  S' 13.` ` In light of the above, we find that a grant of the application of Optel and Teleglobe to transfer control of Optel from the current shareholders to Teleglobe will serve the public interest. At the same time, we modify the conditions imposed on Optel with regard to the operation of the CANUS1 submarine cable system to reflect recent Section 214 authorizations granted to Teleglobe. We decline to apply any additional reporting requirements.  Sh'- V. ORDERING CLAUSES ă  S' 14.` ` We hereby GRANT Optel Telecommunications, Inc. and Teleglobe Inc. authority under the Submarine Cable Landing Act to transfer control of Optel from the current shareholders to Teleglobe.  S6 '15.` ` Optel's license to operate CANUS1 is modified by deleting conditions (6) and (8). Except as so modified, Optel's license remains in full force and effect, including the conditions therein.  Sj'16.` ` Optel must notify the Commission within five business days of the effective date of the transfer of control of Optel or of a decision not to effect such transfer of control.  S'17.` ` 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)).  S' ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCRegina M. Keeney, Chief ` `  hhCInternational Bureau