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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 ) ) Telef˘nica Larga Distancia de Puerto Rico, ) Inc. ) ISP-WAV-19991028-00009 ) Request for a Waiver of the Section 214 ) Settlement Rate Condition on the ) U.S.-Chile Route ) ORDER Adopted: November 17, 1999 Released: November 17, 1999 By the Chief, Telecommunications Division: I. INTRODUCTION 1. On October 28, 1999, Telef˘nica Larga Distancia de Puerto Rico (TLD) filed a petition for waiver of the section 214 benchmarks condition, as codified in rule 63.10, for its U.S.-Chile route. TLD, a U.S.-authorized carrier, is affiliated with a dominant foreign carrier in Chile, Compania de Telefonos de Chile Transmissiones Regionales S.A. (CTC). In this Order, we deny TLD's waiver request. 2. In its 1997 Benchmarks Order, the Commission adopted a condition for section 214 authorization holders that requires that a foreign carrier's settlement rate be at or below the relevant benchmark before its U.S.-licensed affiliate may provide facilities-based service on the affiliated route. The Commission adopted the condition to address the threat of price squeeze behavior on affiliated routes. The Commission imposed this requirement on existing section 214 holders as well, allowing these carriers ninety (90) days from the effective date of the Benchmarks Order to become compliant. After receiving a petition from MCI Worldcom to clarify and reconsider this condition, the Commission granted in 1998, on its own motion, a temporary stay of the section 214 benchmarks condition as it applies to existing authorization holders. In the 1999 Benchmarks Reconsideration Order, the Commission modified the condition so that it applies solely to U.S. facilities-based carriers that are affiliated with a foreign carrier with market power. The Commission lifted the stay and gave U.S. carriers classified as dominant on an affiliated route thirty (30) days from the effective date of the Benchmarks Reconsideration Order to become compliant with this condition; therefore, carriers had to be compliant by November 1, 1999. II. DISCUSSION 3. The Commission may grant a waiver of its rules for good cause shown. Waiver of the Commission's rules is appropriate only if special circumstances warrant a deviation from the general rule. Such deviation must serve the public interest and be consistent with the policies underlying the rule. 4. We find that TLD has not persuasively demonstrated that a waiver would be in the public interest. TLD argues that a waiver would not undermine the Commission's policies because the threat of a price squeeze is unlikely on the route. The Commission thoroughly addressed and dismissed contentions challenging the need for the section 214 condition and its applicability to existing section 214 holders in the Benchmarks Reconsideration Order; therefore, we reject TLD's argument. TLD further asserts that because U.S. carriers will achieve a benchmark-compliant rate in accordance with the transition periods set forth in the Benchmarks Order, it would be in the public interest to grant a waiver of the condition for the two months between the November 1, 1999 condition deadline and January 1, 2000 transition deadline. TLD has not demonstrated that its circumstances distinguish it from other U.S. carriers that must comply with the condition. Any exception for TLD in this instance would be equally applicable for other U.S.- authorized carriers whose foreign affiliates have negotiated a benchmark-compliant rate to take effect at a future date. 5. U.S.-authorized carriers have been on notice that they would have to comply with the section 214 condition on routes where they are affiliated with a foreign carrier since 1997, and specifically, U.S.- authorized carriers classified as dominant on affiliated routes have been aware of the deadline for compliance since June of this year. We note that TLD filed its petition for waiver, one full business day before the November 1 deadline. In order for the Commission to take effective action to remedy rule violations, it is advisable for carriers, acting in good faith, to notify the Commission in a reasonable and timely manner that they may have difficulty complying with the Commission's rules. 6. For the foregoing reasons, we do not find TLD's contentions persuasive that there is good cause to waive the section 214 benchmarks condition on the U.S.-Chile route. Therefore, we deny the request for waiver. III. ORDERING CLAUSES 7. Accordingly, IT IS ORDERED, pursuant to Sections 1, 2, 4(i), 4 (j), 5(c), 201, 214 and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.  151, 152, 154(i), 155(c), 201, 214 and 303(r), and Sections 0.51, 0.261, 1.3, 1.80, 63.10 of the Commission's Rules, 47 C.F.R.  0.51, 0.261, 1.3, 1.80, 63.10, that TLD's petition for waiver of the Section 214 Settlement Rate Condition in the U.S.- Chile route IS DENIED. 8. IT IS FURTHER ORDERED that this order is effective upon release. FEDERAL COMMUNICATIONS COMMISSION Rebecca Arbogast Chief, Telecommunications Division International Bureau