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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 ) ) MFS International, Inc. ) File No. ITC-97-622 ) Application for Authorization ) Pursuant to Section 214 of the ) Communications Act of 1934, as Amended,) to Construct, Acquire, and Operate ) Capacity in a Fiber Optic Submarine Cable ) System, the Southern Cross Cable System) MEMORANDUM OPINION, ORDER AND AUTHORIZATION Adopted: February 11, 1998 Released: February 13, 1998 By the Chief, Telecommunications Division: I. Introduction 1. In this Order, we grant the application of MFS International, Inc. (MFSI) authority pursuant to Section 214 of the Communications Act of 1934, as amended, 47 U.S.C.  214, to (1) construct, acquire, and operate capacity on a common carrier fiber optic submarine cable system, the Southern Cross cable system (Southern Cross), extending between the United States mainland (and Hawaii), Australia, and New Zealand; and (2) activate capacity in Southern Cross and in its facilities for the provision of MFSI's authorized services. We find that MFSI has provided sufficient information to comply with Section 214 of the Communications Act and therefore grant the authority to construct, acquire, and operate capacity in Southern Cross, subject to the conditions described below. II. Ap plication 2. MFSI, a Delaware corporation, is a wholly-owned subsidiary of MFS Network Technologies, Inc. (MFSNT), a Delaware corporation. MFSNT is a wholly-owned subsidiary of MFS Communications Company, Inc., (MFSCCI), a Delaware corporation. MFSCCI is a wholly-owned subsidiary of WorldCom, Inc., a Georgia corporation. 3. MFSI proposes to land and operate Southern Cross as a common carrier system owned by MFSI and by entities authorized to land and operate an international fiber optic cable system in Australia and New Zealand. The proposed Southern Cross will extend between landing points on the U.S. mainland (California), Hawaii, Australia, and New Zealand. Southern Cross is scheduled to go into initial service in mid-1999. III. Discussion 4. On October 10, 1997, MFSI filed an application for Section 214 authorization. The application was placed on public notice on October 24, 1997. No comments were received. As required by the Commission's rules, MFSI has certified that it has not agreed and will not agree in the future to accept special concessions directly or indirectly from any foreign carrier. MFSI further certifies that it is affiliated with a number of foreign carriers. 5. Section 214 of the Communications Act requires the Commission to determine that the authorization of the Southern Cross facilities will serve the public interest, convenience, and necessity. The Commission must determine whether "the specific facility chosen and the use to be made of that facility are required by the public convenience and necessity." The proposed Section 214 authorizations will improve the telecommunications infrastructure and enhance services on the routes served by Southern Cross. MFSI has also stated that other common carriers may acquire capacity in Southern Cross. We find the pro- competitive goals of the Commission are met by granting the Section 214 authorization. 6. Accordingly, we conclude that the public interest will be served by granting MFSI authority to construct, acquire and operate capacity in Southern Cross. Therefore, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require a grant of the application, as conditioned below. IV. Ordering Clauses 7. IT IS ORDERED that application File No. ITC-97-622 IS GRANTED and MFSI is authorized, pursuant to Section 214 of the Communications Act, as amended, to (1) construct, acquire and operate capacity in a fiber optic submarine cable system known as Southern Cross cable system between the United States mainland, Hawaii, Australia, and New Zealand; and (2) activate capacity in Southern Cross and in its facilities for the provision of its authorized services. 8. IT IS FURTHER ORDERED that MFSI's tariffs must state that its customers may not resell international private lines or connect them to the public switched network for the provision of international basic telecommunications services, unless authorized to do so by the Commission upon a country-specific finding that the Commission will permit the provision of switched services over private lines between the United States and that country. See Market Entry and Regulation of Foreign-Affiliated Entities, Report and Order, 11 FCC Rcd 3873 (1995); Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, IB Docket Nos. 97-142, 95-22, Report and Order and Order on Reconsideration, FCC 97-398 (rel. Nov. 26, 1997). The limitations in this paragraph are subject to the exceptions contained in Section 63.18(e)(4)(ii) of the Commission's rules, 47 C.F.R. 63.18(e)(4)(ii) (1996). 9. IT IS FURTHER ORDERED that MFSI shall make available half-interests in Southern Cross capacity to such present and future U.S. carriers as may be authorized by the Commission to acquire such capacity. 10. IT IS FURTHER ORDERED that the Commission retains jurisdiction to reallocate U.S. carriers' interests in capacity herein authorized, as the public interest may require and with any requisite concurrence of the foreign administration or carriers concerned, in order to accommodate additional carriers or for other reasons. 11. IT IS FURTHER ORDERED that the Commission retains jurisdiction over all matters relating to MFSI's ownership, management, maintenance, and operation of the cable system as authorized herein to ensure the most efficient use not only of this cable system but of all means of communications between the United States and Australia and New Zealand. 12. IT IS FURTHER ORDERED that MFSI shall include the Southern Cross facility use in all circuit reports that may be required by current and future Commission rules. 13. This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R.  0.261, and is effective upon release. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission's rules, 47 C.F.R.  1.106, 1.115, may be filed within 30 days of the date of public notice of this order (see 47 C.F.R.  1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau