WPC* 2xB(Jr Z|xTimes New Roman (TT)Courier New (TT)C\  P6QPd6X@DQ@2?{phoenix#C\  P6QP# FCCJohn Mount 2o|1heading 1heading 1 X` hp x (#` hp x (##XP\  P6QXP# #C\  P6QP#` hp x (#X` hp x (#Default Paragraph FoDefault Paragraph Font11#XP\  P6QXP##C\  P6QP#endnote textendnote text;1#XP\  P6QXP##C\  P6QP#endnote referenceendnote reference44#XP\  P6QXP##C\  P6QP#2a e% C footnote textfootnote text;1#XP\  P6QXP##C\  P6QP#footnote referencefootnote reference44#XP\  P6QXP##C\  P6QP#toc 1toc 1X` hp x (#(#`(#`X` hp x (#toc 2toc 2X` hp x (#` (#` (#X` hp x (#2     toc 3toc 3 X` hp x (#` (#`` (#`X` hp x (#toc 4toc 4 X` hp x (# (#` (#`X` hp x (#toc 5toc 5 X` hp x (#h(#`h(#`X` hp x (#toc 6toc 6 X` hp x (#(# (# X` hp x (#2  v=toc 7toc 7  toc 8toc 8X` hp x (#(# (# X` hp x (#toc 9toc 9X` hp x (#(#`(#`X` hp x (#index 1index 1X` hp x (#` (#` (#X` hp x (#2"?]{!?"index 2index 2X` hp x (#` (#` (#X` hp x (#toa headingtoa headingX` hp x (#(#(#X` hp x (#captioncaption;1#XP\  P6QXP##C\  P6QP#_Equation Caption_Equation Caption11#XP\  P6QXP##C\  P6QP#2+#I%&l!(footerfooterX` hp x (# (#  (# X` hp x (#page numberpage number11#XP\  P6QXP##C\  P6QP#headerheaderX` hp x (# (#  (# X` hp x (#Body TextBody TextX` hp x (#` hp x (##XP\  P6QXP##C\  P6QP#` hp x (#X` hp x (##XP\  P6QXP# 1e!8(QQ(ddfooterX` hp x (# (# #XP\  P6QXP#page number#XP\  P6QXP##C\  P6QP#"page number"e#C\  P6QP#US?? ) 1A6dd??US ) ??US DA 981339 #XP\  P6QXP#Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of) ) U S WEST Communications, Inc.) ) Application for Authorization Pursuant to )ITC97448 Section 214 of the Communications Act of) 1934, as Amended, to Resell Switched) International Communications Services to) Lithuania and Russia)  ORDER, AUTHORIZATION AND CERTIFICATE  Adopted: June 30, 1998 Released: July 2, 1998  By the Chief, Telecommunications Division  I. Introduction 1.U S WEST Communications, Inc. (USWC or Applicant) requests authority pursuant to Section 214 of the Communications Act of 1934, as amended (Act),#footnote reference##XP\  P6QXP#X0X01ÍÍfootnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#47 U.S.C.  214.#XP\  P6QXP# to resell international switched telecommunications services originating from the Applicant's broadband PCS Basic Trading Area (BTA) markets and terminating in Russia and Lithuania. 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. Body TextX` hp x (#` hp x (##XP\  P6QXP#2.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.Lithuania and U.S.Russia routes as part of its broadband PCS BTA market services should be subject to nondominant carrier regulation.  Body Text  heading 1X` hp x (#` hp x (##XP\  P6QXP# II. Background  heading 1   3.USWC, a Colorado corporation, is a Bell Operating Company (BOC).#footnote reference##XP\  P6QXP#2footnote text#XP\  P6QXP##oDD0DXDhD# $footnote text$#footnote reference##XP\  P6QXP##oDD0DXDhD#э)footnote reference)#oDD0DXDhD# See U S WEST Communications, Inc. Application for Authorization Pursuant to Section 214 of the Communications Act of 1934, as Amended, to Resell SwitchBased International Communications Services to Lithuania and Russia, File No. ITC97448, at 2 (filed August 4, 1997) (USWC Application).#XP\  P6QXP#2 USWC also holds broadband PCS licenses in 53 BTA markets and one Major Trading Area (MTA) market.#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#See Letter from Kenneth D. Patrich, Counsel for USWC, to Magalie Roman Salas, Secretary, FCC at 3 Attach. (May 25, 1998) (USWC Amendment I). USWCs 53 BTA service areas are: Aberdeen, WA; Albuquerque, NM; Bend, OR; BoiseNampa, ID; Bremerton, WA; CasperGillette, WY; Cheyenne, WY; Colorado Springs, CO; Coos BayNorth Bend, OR; Denver, CO; EugeneSpringfield, OR; Flagstaff, AZ; Ft. CollinsLoveland, CO; Gallup, NM; Grand IslandKearney, NE; Grand Junction, CO; Greeley, CO; Hastings, NE; Idaho Falls, ID; KennewickPascoRichland, WA; Klamath Falls, OR; Lincoln, NE; Logan, UT; Longview, WA; MedfordGrants Pass, OR; Minneapolis, MN; Nogales, AZ; North Platte, NE; Omaha, NE; Phoenix, AZ; Pocatello, ID; Portland, OR; Prescott, AZ; ProvoOrem, UT; Rapid City, SD; Riverton, WY; Rochester, MN; Rock Springs, WY; Roseburg, OR; Roswell, NM; St. Cloud, MN; SalemAlbanyCorvallis, OR; Salt Lake City, UT; Santa Fe, NM; Scottsbluff, NE; Sierra VistaDouglas, AZ; Sioux City, IA; Tucson, AZ; Twin Falls, ID; Walla Walla, WAPendelton, OR; WillmarMarshall, MN; Yakima, WA; and Yuma, AZ. USWC#d6X@DQ@#=#C\  P6QP#s MTA market is Seattle, WA. #XP\  P6QXP#Ѡ As a BOC, USWC is subject to certain restrictions regarding its provision of interLATA services.#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP##oDD0DXDhD# $footnote text$#footnote reference##XP\  P6QXP##oDD0DXDhD#э)footnote reference)#oDD0DXDhD# See 47 U.S.C.  271.#XP\  P6QXP# Consistent with the Act, the International Bureau previously granted USWC Section 214 authority to provide resold switched services to all international points except Lithuania and Russia as part of its broadband PCS BTA market services.#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#ITC97447; see Public Notice, Overseas Common Carrier Section 214 Applications Actions Taken, Rep. No. I8262, DA 972016 (rel. Sept. 18, 1997).#XP\  P6QXP#р 4. The present application was not subject to streamlined processing at the time it was filed because USWC was seeking to provide service to Lithuania and Russia, markets in which the Applicant was affiliated with foreign carriers, and the Commission had not yet made a determination as to whether USWCs foreign affiliates possessed market power in the destination markets.#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#See 47 C.F.R.  63.12(c)(1); see also Streamlining the International Section 214 Authorization Process and Tariff Requirements, Report and Order, 11 FCC Rcd 12884, 12896 (1996).#XP\  P6QXP#ѩ On June 12, 1998, however, USWCs former parent corporation, U S WEST, Inc., consummated a transfer of control which resulted in the creation of two wholly independent corporations, USWC, Inc.#footnote reference##XP\  P6QXP#`footnote text#XP\  P6QXP##footnote reference##XP\  P6QXP#X` hp x (#R` hp x (##oDD0DXDhD#э)footnote reference)#oDD0DXDhD# Upon consummation, USWC changed its name to U S WEST, Inc. See Letter from Kenneth D. Patrich, Counsel for USWC, to Magalie Roman Salas, Secretary, FCC at 2 n.2 (June 19, 1998) (USWC Amendment II).#XP\  P6QXP#` and MediaOne Group, Inc. (MediaOne). As a result of the transfer of control, USWC became a whollyowned subsidiary of USWC, Inc., and no longer holds any foreign carrier affiliations within the meaning of Section 63.18(h)(1) of the Commissions rules. MediaOne currently holds all of the ownership interests in the foreign carriers formerly held by USWCs parent corporation.#footnote reference##XP\  P6QXP#'footnote text#XP\  P6QXP##oDD0DXDhD# $footnote text$#footnote reference##XP\  P6QXP##oDD0DXDhD#э)footnote reference)#oDD0DXDhD# See id. at 2. #XP\  P6QXP#'  III. Discussion  5.The Applicant maintains that a grant of the present application will allow its subscribers to use their wireless telephones to complete calls to Lithuania and Russia, thereby "increas[ing] competition on these routes and benefit[ing] consumers by reducing prices, increasing the availability of a wider variety of service options, and promoting the more efficient use of existing international facilities."#footnote reference##XP\  P6QXP# footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#USWC Application at 2.#XP\  P6QXP#  Because the Applicant is a BOC, we initially determine whether service restrictions imposed on BOCs 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.Lithuania and U.S.Russia routes. A.Provision of Incidental InterLATA Services under Section 271(b)(3) 6.The Act permits a BOC to "provide incidental interLATA [i.e., local access and transport area] services#footnote reference##XP\  P6QXP# footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#"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).#XP\  P6QXP#ї . . . originating in any State[.]"#footnote reference##XP\  P6QXP# footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#Id.  271(b)(3) (footnote added).#XP\  P6QXP# The Act defines "incidental interLATA services" to include "the interLATA provision by a Bell operating company or its affiliate . . . of commercial mobile services in accordance with section 332(c) of th[e] Act[.]"#footnote reference##XP\  P6QXP# footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#Id.  271(g)(3).#XP\  P6QXP# 7.The Applicant states that, "[a]s a broadband PCS licensee, . . . [it] provides commercial mobile services in accordance with Section 332(c) of the [Act.]"#footnote reference##XP\  P6QXP# footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#USWC Application at 2.#XP\  P6QXP# 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) of the Act."#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#Id. at 3.#XP\  P6QXP# We find that the resale of international switched services on the U.S.Lithuania and U.S.Russia routes by the Applicant as part of its broadband PCS BTA market services 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. B.Regulatory Classification 8.At the time of its initial application, USWC certified that it was affiliated with foreign carriers in the destination countries under Section 63.18(h)(1) of the Commission's rules.#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#See id. at 6.#XP\  P6QXP# Subsequently, the Applicant filed two amendments certifying that it no longer is affiliated with any foreign carriers.#footnote reference##XP\  P6QXP#footnote text#XP\  P6QXP##oDD0DXDhD# $footnote text$#footnote reference##XP\  P6QXP##oDD0DXDhD#э)footnote reference)#oDD0DXDhD# See USWC Amendment I (stating that USWC no longer has a foreign carrier affiliate in Lithuania); USWC Amendment II (stating that USWC no longer holds any foreign carrier affiliations); see also supra  3.#XP\  P6QXP# 9.The Commission regulates U.S. international carriers as dominant on routes where an affiliated foreign carrier has sufficient market power on the foreign end to affect competition adversely in the U.S. market.#footnote reference##XP\  P6QXP#pfootnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#See Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, Report and Order, 12 FCC Rcd 23, 891 at  231 (1997), recon. pending; see also Regulation of International Common Carrier Services, Report and Order, 7 FCC Rcd 7331, 7334 (1992); Market Entry and Regulation of Foreignaffiliated Entities, Report and Order, 11 FCC Rcd 3873, 39663971 (1995).#XP\  P6QXP#p Under this framework, a U.S. international carrier that has no affiliation with a foreign carrier, and itself is not a foreign carrier in a destination country, shall presumptively be considered nondominant for that route."#footnote reference##XP\  P6QXP# footnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#47 C.F.R.  63.10(a)(1). #XP\  P6QXP#  No party filed an opposition to the Applicant's Section 214 application or requests that the Applicant be classified as a dominant carrier. We find no basis at this time to overcome the presumption in favor of nondominant treatment. We therefore classify USWC as a nondominant international reseller on the U.S.Lithuania and U.S.Russia routes as part of its broadband PCS BTA market services. 10.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. 11.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 63.19 of the Commission's rules.#footnote reference##XP\  P6QXP#hfootnote text#XP\  P6QXP# $footnote text$#footnote reference##XP\  P6QXP##C\  P6QP#э)footnote reference)#C\  P6QP#Id.  43.51 (requiring common carriers engaged in foreign communications to file with the Commission certain contracts, agreements, concessions, licenses, authorizations, and other arrangements); 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 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 that possesses sufficient market power on the foreign end to affect competition adversely in the U.S. market); 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).#XP\  P6QXP#h  III. Ordering Clauses  12.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 on the U.S.Lithuania and U.S.Russia routes by U S WEST Communications, Inc. (USWC) as part of its broadband PCS BTA market services. 13.Accordingly, IT IS HEREBY ORDERED that application File No. ITC97448 filed by USWC IS GRANTED and USWC is authorized to resell on a nondominant carrier basis international switched services of unaffiliated U.S. international carriers for the provision of international switched services between USWCs broadband PCS BTA markets and Lithuania and Russia. 14.IT IS FURTHER ORDERED that USWC shall comply with the requirements specified in Section 63.21 of the Commission's rules, 47 C.F.R.  63.21. 15.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 the public notice of this order (see Section 1.4(b)(2)).  FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau