Background

The Commission issues licenses to own and operate submarine cables and associated cable landing stations located in the United States.  It also authorizes modifications, and transfers or assignments of existing cable landing licenses.  Commission review of applications seeks to assure fulfillment of the requirements of the Cable Landing Act of 1921.  The Commission also seeks to ensure that where an applicant controls one of the necessary inputs of a submarine cable system (the wet link, cable landing station or back haul facilities), the applicant cannot engage in anti-competitive conduct to the detriment of competing communications providers.

A cable landing license must be obtained prior to landing a submarine cable to connect:  (1) the continental United States with any foreign country; (2) Alaska, Hawaii or the U.S. territories or possessions with a foreign country, the continental United States, or with each other; and (3) points within the continental United States, Alaska, Hawaii or a territory or possession in which the cable is laid within international waters. 

Commission Authority:  The Commission’s authority to issue licenses derives from the
Cable Landing License Act of 1921 and the Executive Order No. 10530 of May 10, 1954.  The Cable Landing License Act states that no person shall land or operate in the United States “any submarine cable directly or indirectly connecting the United States with any foreign country, or connecting one portion of the United States with any other portion thereof, unless a written license to land or operate such cable has been issued by the President of the United States.”  The requirements of the Act do not apply to cables “all of which, including both terminals, lie wholly within the continental United States.”  Executive Order No. 10530 delegates to the Commission the President’s authority under the Cable Landing License Act subject to obtaining approval from the Secretary of State prior to issuance of a license. 

Commission Rules:  The current rules and regulations applying to Commission consideration of applications for cable landing licenses were adopted in 2001 and are contained in section § 1.767 of the Commission's rules 47 C.F.R. § 1.767. The rules specify among other things (1) the information required to be in an application for a new license or the transfer or assignment of an existing license, (2) the type of entities that, at a minimum, must be part of an application for a cable landing license, (3) the procedures for processing applications including eligibility for streamlined processing, (4) conditions that are imposed on each cable landing license, and (5) certain reporting requirements that apply to licensees affiliated with a carrier with market power.  In addition, § 1.768 of the Commission's rules 47 C.F.R. § 1.768 specifies notification and approval requirements for licensees that are or propose to become affiliates with foreign carriers.

Processing Applications:  Applications for cable landing licenses are subject to initial review for completeness of information and, upon acceptance for filing, public notice inviting comment.  The Commission’s rules provide for streamlined processing (action within 45 days of release of the public notice) where the applicant can demonstrate eligibility for streamlining under the Commission’s rules.  The Commission will undertake to act on applications that are ineligible for streamlining within 90 days of issuance of a public notice unless the application raises questions of extraordinary complexity. 

The timing of Commission action on applications (even of those otherwise qualified for streamlining), also may be affected by Commission coordination with executive branch agencies under the Commission’s rules and Executive Order No. 10530.  To qualify for streamlining the Applicant must send complete copies of the application to (1) the Department of State, (2) the Department of Commerce, and (3) the Department of Defense.  The State Department has authorized the Commission to act on applications when the Commission notifies the State Department in writing of application and the State Department does not object within 30 days of the notification.  In addition to coordinating with the State Department all applications for cable landing licenses, the Commission coordinates with other executive branch agencies applications where a foreign citizen or foreign-organized entity, including foreign government, would hold a 10 percent or greater direct or indirect equity or voting interest in the licensee. 

Licensed Cables

As of December 31, 2010, there are 58 FCC licensed submarine cables operating or planned to enter service.

Regulatory Fees

All licensees of international submarine cables (those submarine cables that connect the United States with international points) are required to pay annual regulatory fees for the submarine cable system.  Regulatory fees are assessed on a per cable landing license basis for submarine cable systems licensed and operational on December 31 of the prior year. For the purposes of regulatory fees, the Commission does not distinguish between submarine cable systems operated on a common carrier basis and those operated on a non-common carrier basis.  The Commission conducts a rulemaking proceeding each year to determine the amount of the regulatory fee for that year. More information regarding regulatory fees is available at http://www.fcc.gov/fees/regfees.html.

Filing Applications

Acceptance of an application for filing is subject to completeness of the application in providing the information required by the rules.  Applications must provide the information required by Section 1.767 of the Commission’s rules.  The following entities, at a minimum, must be Applicants for the license:  (1) any entity that owns or controls the U.S. cable landing station, and (2) all other entities owning or controlling a five percent (5%) or greater interest in the cable system and using the U.S. points of the cable system.  Applicants should be mindful of the technical and ownership information required by the Commission’s rules, as well as a statement as to whether the proposed cable will be operated on a common carrier or non-common carrier basis.  Proposed non-common carrier operation must be accompanied by information showing that the proposed operation satisfies the requirements set forth in National Association of Regulatory Utility Commissioners v FCC, 525 F. 2d 630, 642 (D.C. Cir 1976). 

Applications for all initial submarine cable landing licenses (SCL-LIC) must be filed electronically via the International Bureau Filing System (IBFS) at www.fcc.gov/ibfs.   Other types of applications  --  Amendments (SCL-AMD), Assignments (SCL-ASG), Landing Point Notifications (SCL-LPN), Modifications (SCL-MOD), Special Temporary Authority (SCL-STA), and Transfers of Control (SCL-T/C)  --  may be filed either (1) electronically via IBFS,  (2) by filing an original plus five (5) copies of the application via the Office of the Secretary (and paying electronically via Fee Filer – see link below) or (3) by sending an original plus five (5) copies of the application to the U.S. Bank  (see IB Current Fees.pdf for mailing address) (and paying via check). 

If you need assistance with filing or paying for an application electronically through IBFS, please call the IBFS Help Desk at (202) 418-2222.

To file an SCL-LIC application electronically via IBFS (www.fcc.gov/ibfs), you must log in by typing in your FCC Registration Number (FRN) and your personal password associated with your FRN.  (If you do not have an FRN, you may get one by clicking on the FRN link under “Related Systems” located on the IBFS home page.)  Once you’ve entered your FRN and password, click on the down arrow next to “Start New Application/Action” and scroll down to “International Telecommunications,” under which all available Submarine Cable applications are listed.  Click on “Submarine Cable Landing License Application.”  You need to then input the FRN and password associated with your filing, complete the electronic form in its entirety, and attach all required attachments.  Once your application is complete, you must file your application before you can pay the filing fee.

To file other SCL applications electronically via IBFS (www.fcc.gov/ibfs), the instructions are the same as filing SCL-LIC applications above, except there is no form to complete.  Once you’re logged into your IBFS account, you simply click on the application type you wish to file, confirm the “Applicant” and “Contact” FRN, click “Next Step,” where you will attach your electronic document (Word or PDF document) that serves as your application.  Once your application is complete, you must file your application before you can pay the filing fee.

To file an application via a “paper filing’ through the Office of the Secretary, send an original plus five (5) copies of your application to the Commission (see the FCC’s website at http://www.fcc.gov/osec/ for the correct address to which to send your application). See “Paying Filing Fees” below for payment information.

To file an application via U.S. Bank, send a check, 159 form, and the original plus five (5) copies of your application to the correct mailing address noted in IB Current Fees of the application type.   See “Paying Filing Fees” below for payment information.

Paying Filing Fees

There is an application fee for licenses (SCL-LIC), substantive assignments and transfers of a license (SCL-ASG and SCL-T/C), and requests for special temporary authority (SCL-STA).  There is no application fee for pro forma assignment and transfers of a license (SCL-ASG and SCL-T/C), Amendments (SCL-AMD), Modifications (SCL-MOD), or Landing Point Notifications (SCL-LPN).  For current Submarine Cable application fees, fee codes, and mailing addresses, see the International Bureau Fee Guide (IB Current Fees.pdf).  Once a feeable application is filed, the filing fee must be paid and processed before the Commission can begin processing the application.  Fees may be paid either electronically or by check.       

Electronic Payments:  The filing fee for all feeable applications filed electronically may be paid electronically by credit card.  After logging into your IBFS account by entering your FRN and password, you must click on the “Other IBFS Filings” tab, click on the “Select” button to the left of the FILED application you wish to pay, and then click on the “Form 159 Menu” tab on your upper left.  This will bring up a pre-filled 159 form.  You must complete the credit card information and then file the 159 form.  Once your payment is processed, the Commission may begin processing your application.
 
 If an Assignment (SCL-ASG), Special Temporary Authority (SCL-STA), or Transfer of Control (SCL-T/C) application is filed on paper through the Office of the Secretary, electronic payment for that application can also be made via the Commission’s Fee Filer system at http://www.fcc.gov/fees/feefiler.html.  Please note that the IB Submission number generated by IBFS upon filing your application (IB200900xxxx) MUST be included in the FCC Section Code 2 of the 159 Form. 

Payment by Check:  All feeable submarine cable landing applications may also be paid for by mailing a check directly to the U.S. Bank (see IB Fee Guide (IB Current Fees) for appropriate lock box number, amount of fee, and fee code).  If a payment is made via check, an original plus five (5) copies of the application, plus a completed 159 form, must be attached to the check (see http://www.fcc.gov/fees/form159.html to obtain a 159 form).  If the application was filed electronically via IBFS and the payment is being made via check, the IB Submission number generated by IBFS upon filing your application (IB200900xxxx) MUST be included in the FCC Section Code 2 of the 159 Form.  (Please note that electronic payments take 1-2 business days to clear and checks sent directly to U.S. Bank take 10-14 business days to clear.  The Commission cannot begin the application process until the fee payment has been processed.)

Summary of Source Materials

• Cable Landing License Act of 1921, Pub Law No. 8, 67th Congress, 42 Stat. 8 (1921); 47 U.S.C. §§ 34-39.  Cable Landing License Act 1921.
• Executive Order No. 10530, § 5(a) (May 10, 1954), reprinted and amended in 3 U.S.C. § 301.  Executive Order No. 10530 of May 10, 1954.
• Commission Rules: Cable Landing licenses, 47 C.F.R. 1.767; Notification by and prior approval for submarine cable landing licensees that are or propose to become affiliated with a foreign carrier, 47 C.F.R. 1.768.  47 C.F.R. §§ 1.767 and 1.768.
• Review of Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106, Report and Order, 16 FCC Rcd at 22168, ¶ 2 (2001) (Submarine Cable Report and Order).  FCC-01-332.
• Amendment of Parts 1 and 63 of the Commission’s Rules, Report and Order, IB Docket No. 04-47, 22 FCC Rcd 11398, 11414, ¶45 (2007) (Report and Order) FCC-07-118.  (Recon. pending).
• Streamlined Procedures for Executive Branch Review of Submarine Cable Landing License Requests, U.S. Department of State, http://2001-2009.state.gov/r/pa/prs/ps/2001/6951.htm.
• Assessment and Collection of Regulatory Fees for Fiscal Year 2008, Second Report and Order, 24 FCC Rcd 4208, (2009) (“Submarine Cable Regulatory Fee Order”). FCC-09-62.

Other Relevant Materials

• Seclected Rules applicable for International Common Carriers
• Tel-Optik Limited, Memorandum Opinion and Order, FCC 85-99, 100 FCC 2d 1033 (1985)
• Rules and Policies on Foreign Participation in the U.S. Telecommunications Market (Foreign Participation Order), FCC 97-398, 12 FCC Rcd 23891
• National Association of Regulatory Utility Commissioners v FCC, 525 F.2d 630, 642 (D.C. Cir 1976)