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(1) (a) i) a)4 =(O4WGl *O4q 2=rYr˭Leventhal6@6wwLeventhal, Senter & Lerman Doc Style*O4ÿUVGl.EQ    #XN\  PXP#a1DAKBt*3  S'1.` ` a3DAKa4DAK2o)ƱDefault Paragraph FoDefault Paragraph Font11#XXz PQXP##Iz PQP#head1 #'d#2p}wC@ #toc 1toc 1` hp x (#!(#B!(#B` hp x (#toc 2toc 2` hp x (#` !(#B` !(#B` hp x (#24Rptoc 3toc 3` hp x (#` !(# ` !(# ` hp x (#toc 4toc 4` hp x (# !(#  !(# ` hp x (#toc 5toc 5` hp x (#h!(# h!(# ` hp x (#toc 6toc 6` hp x (#!(#!(#` hp x (#2v6Trtoc 7toc 7 toc 8toc 8` hp x (#!(#!(#` hp x (#toc 9toc 9` hp x (#!(#B!(#B` hp x (#index 1index 1` hp x (#` !(# ` !(# ` hp x (#2vltindex 2index 2` hp x (#` !(#B` !(#B` hp x (#toatoa` hp x (#!(# !(# ` hp x (#captioncaption _Equation Caption_Equation Caption 2 S'H S' Federal Communications Commission`~(#cDA 982294 ă   yxdddy   `2 Before the Federal Communications Commission 2&Washington, D.C. 20554 \  S`' In the Matter of  hhCq)  S8'` `  hhCq)ppFile No. ITC98342  S'AT&T CORP.` `  hhCq)pp  * ITC98342A (#(#` `  hhCq)  S'MCI INTERNATIONAL, INC.hhCq) ` `  hhCq)  Sp'PACIFIC GATEWAY EXCHANGEhhCq)  SH ' (BERMUDA) LIMITEDhhCq) ` `  hhCq)  S 'SPRINT COMMUNICATIONS COMPANY L.P.) ` `  hhCq)  S 'LC COMMUNICATIONShhCq)pp  *xxX (#(#` `  hhCq)  SX'THE ST. THOMAS AND SAN JUANhhCq)  S0'TELEPHONE COMPANY, INC.q) ` `  hhCq)  S'TELECOMMUNICACIONES ULTRAMARINAS)  S' DE PUERTO RICOhhCq) ` `  hhCq)  Sh'TELEFONICA LARGE DISTANCIA DEq)  S@' PUERTO RICO, INC.hhCq) ` `  hhCq)  S'TRICOM USA, INC. hhCq) ` `  hhCq)  S'TELEGLOBE USA, INC.hhCq) ` `  hhCq)  SP'IMPSAT USA, INC. hhCq) ` `  hhCq)  S'GTE COMMUNICATIONS CORPORATIONq) ` `  hhCq)  S'IDB WORLDCOM SERVICES, INC.hhCq) ` `  hhCq)  S`'STAR TELECOMMUNICATIONS, INC.q) ` `  hhCq)  S 'WORLDxCHANGE COMMUNICATIONSq) ` `  hhCq)  S!'LAMBDA OPERATIONS CORP.hhCq) ` `  hhCq)  Sp#'IDT CORPORATION hhCq) ` `  hhCq)  S %'TELIA NORTH AMERICA, INC.hhCq) "%0*''88$"  S'Joint application for AuthorizationhhCq)pp  S'Pursuant to Section 214 of thehhCq )pp   *  S'Communications Act of 1934, as Amended,q)  S'to Construct, Acquire, and OperatehhCq)  S`'Capacity in a Digital Submarine CablehhCq)  S8'System, the AMERICASII Cable Systemq)  S'  MEMORANDUM OPINION, ORDER AND AUTHORIZATION   S'3Adopted: November 3, 1998 Released: November 10, 1998  \By the Chief, Telecommunications Division:  S 'S I. Introduction ă  S '1.` ` In this Order, we grant the joint application of the participating parties (Joint  S 'Applicants)  yO'ԍXThe Joint Applicants are AT&T Corp. (AT&T); MCI International, Inc. (MCII); Pacific Gateway Exchange (Bermuda) Limited (PGE); Sprint Communications Company L.P. (Sprint); LC Communications (LCC); The St. Thomas and San Juan Telephone Company, Inc. (STSJ); Telecommunicaciones Ultramarinas de Puerto Rico (TUPR); Telefonica Larga Distancia de Puerto Rico, Inc. (TLDI); Tricom USA, Inc. (TRICOM); Teleglobe USA Inc. (TELEGLOBE); ImpSat USA, Inc. (IMPSAT); GTE Communications Corporation (GTECC); IDB WorldCom Services, Inc. (WORLDCOM); STAR Telecommunications, Inc. (STAR); WorldxChange Communications (WORLDxCHANGE); Lambda Operations Corp. (CENTENNIAL); IDT Corporation (IDT); and Telia North America, Inc. (TELIA).(# for 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 in a digital submarine cable system, the AMERICASII Cable System (AMERICASII), among Florida, Puerto Rico, the U.S. Virgin Islands (USVI), Martinique, Curacao, Trinidad, Venezuela, Trinidad, French Guiana and Brazil; (2) acquire by lease or other comparable means such extension facilities as may be required to extend the capacity of AMERICASII; and (3) activate capacity in AMERICASII and in the aforementioned facilities for the provision of the Joint Applicants' authorized services. We find that the Joint Applicants have provided sufficient information to comply with Section 214 of the Communications Act and therefore grant the authority to construct, acquire, and operate capacity in AMERICASII,  S'subject to the conditions discussed below. yOP' " ԍXIn a companion order, we grant the Joint Applicants' application for a cable landing license (File No. SCL98003, SCL98003A, DA 982295 (rel. Nov. 10, 1998).(# " 0*&&88>"  S'T II. Application ă  S'2.` ` On April 30, 1998, the Joint Applicants filed this application for Section 214 Authorization. Their application was placed on public notice on May 13, 1998, and an amended application was placed on public notice on August 5, 1998. No comments were received.  S'3.` ` AT&T is a corporation organized under the laws of New York.Z yOx' "@ ԍXFor purposes of this Joint Application, AT&T includes its whollyowned subsidiaries AT&T of Puerto Rico,  "& Inc. and Transoceanic Communications Incorporated. Transoceanic Communications Incorporated will own  {O 'portions of AMERICASII on behalf of AT&T. See Joint Application at 3.(#Ɖ MCII, TRICOM, TELEGLOBE, IMPSAT, GTECC, WORLDCOM, STAR, CENTENNIAL, IDT and TELIA are corporations organized under the laws of Delaware. PGE is a corporation organized and existing under the laws of Bermuda. STSJ is a corporation organized under the laws of the USVI. TUPR and TLDI are corporations organized and existing under the laws of the Commonwealth of Puerto Rico. Sprint is a limited partnership organized under the laws of Delaware and LCC is a trade name for International Telecom, Inc., a corporation organized and existing under the laws of Delaware. WORLDxCHANGE is the doing business name of Communication TeleSystems International, a corporation organized and existing under the laws of the state of California. Each of the Joint Applicants is a common carrier subject to the Communications Act of 1934, as amended.  SX'4.` ` The Joint Applicants propose to land and operate AMERICASII as a common carrier system owned by the Joint Applicants and by entities authorized to land and operate an international submarine fiber optic cable system in Martinique, Curacao, Trinidad, Venezuela, French Guiana, and Brazil. AMERICASII will consist of two or four optical fiber pairs operating at 2.5 Gbps per wavelength. Each fiber pair operating at 2.5 Gbps with one wavelength will have a capacity of 1008  S'Minimum Investment Units (MIUs). {O' "} ԍXFor a complete description of the cable system see the companion order, supra note 2. See also Attached Attachments A and B of the Joint Application.(# The proposed AMERICASII system will extend among landing points at cable stations in Hollywood, Florida; St. Croix, USVI; Miramar, Puerto Rico; Le Lamentin, Martinique; Willemstad, Curacao; Chaguaramas, Trinidad; Camuri, Venezuela; Cayenne, French Guiana; and Fortaleza, Brazil and will be connected with the domestic networks in those countries or  S'territories. Shareholder voting interest in AMERICASII will be divided among the Joint Applicants.D {O' "< ԍ#X\  P6G;/P#XSee Attached Schedules B, C, and D of the Joint Application outlining the percentage of voting interests for each applicant.(# The Joint Applicants expect to activate AMERICASII by September 15, 1999.  Sx'5.` ` The Joint Applicants plan to use AMERICASII in providing their alreadyexisting authorized services. Applicants state that other carriers, including nonowners, may acquire capacity in AMERICASII by lease, IRU, or other arrangements. The minimum investment unit (MIU) assignments for each segment and subsegment of AMERICASII are included in the attachments to this Order."0*&&88"Ԍ S'ԙ6.` ` The Joint Applicants state that the facilities covered by this application will be used to supplement their existing cable and satellite facilities in providing the services that they are presently furnishing or may subsequently furnish. These include satellite circuits between United States earth stations and the INTELSAT Atlantic Ocean Region satellites acquired by the Joint Applicants from the COMSAT Corporation ("COMSAT") pursuant to COMSAT's applicable tariffs and are used in conjunction with connecting circuits between the satellites and foreign earth stations provided by the Joint Applicants' foreign correspondents, or, in some instances, other telecommunications entities. The existing cable facilities used to provide service between the United States and those locations proposed to be served by AMERICASII consist of circuits in the AMERICAS1 cable systemi%Y and TCS1. In addition, the Joint Applicants state that not all of them may be certified to directly serve all territories that AMERICASII facilities are capable of serving. The Joint Applicants state, however, that individual applicants proposing future extensions into such territories by means of AMERICASII facilities will seek the required authorization as necessary.  S 'S III. Discussion ă  S '7.` ` The Joint Applicants have all certified that they have not agreed and will not agree to  SX'accept special concessions from any foreign carrier.wX yO'ԍ#X\  P6G;/P#47 C.F.R.  63.18(i) (1996).w The Joint Applicants, with the exception of MCII and GTECC, further certify that any affiliated foreign carriers do not have market power or the ability to discriminate against unaffiliated carriers through control of bottleneck services and facilities on any  S'of the routes served by AmericasII.~X {O' " ԍX47 C.F.R.  63.18(h)(6)(ii) (1996); see Joint Application, Attachment C; Amendment to Joint Application,  " Attachment D; and Supplemental Certification. MCII is affiliated with Empresa Brasileira de  " Telecomunica'Ses S.A.EMBRATEL (Embratel), the Brazilian longdistance carrier. Letter from Kenneth  " A. Schagrin, Associate Counsel, MCI Communications Corporation to Troy F. Tanner, Chief, Policy and  " Facilities Branch, FCC (Sept. 14, 1998). GTECC is affiliated with Compania Anonima Nacional Telefonos  {O' " de Venezuela (CANTV) in Venezuela. GTE Telecom Incorporated, ITC 95443, ITC 96313, ITC 96314,  {O'ITC 95561, Order, Authorization and Certificate, DA 98348 (rel. Feb. 23, 1998).(#Ǝ To the extent that MCII and GTECC or any of the Joint Applicants provide common carrier service over AMERICASII between the United States and a market for which they are regulated as a dominant carrier under Section 63.10 of the Commission's rules, their use of AMERICASII on those routes will be subject to the Commission's dominant carrier safeguards of Section 63.10. Accordingly, we find that the Joint Applicants' foreign affiliations do not raise concerns that could persuade us to deny the application under Section 2 of the Cable Landing  S'License Act. {O. ' "I ԍX47 U.S.C.  35 (1994); see Joint Application, Attachment C; Amendment to Joint Application, Attachment D; and Supplemental Certification.(#  S' " 0*&&88"  S'8.` ` Section 214 of the Communications Act requires the Commission to determine that the  S'authorization of the AMERICASII facilities will serve the public interest, convenience and necessity.  {O@'ԍX#X\  P6G;/P#See 47 C.F.R.  63.18 (1996).(#Ɔ The proposed Section 214 authorization will improve the telecommunications infrastructure and  S'enhance services on the routes served by AMERICASII. The Commission has previously stressed the importance of making advanced telecommunications available to further economic development of the  S8'Caribbean region. ^8Z {O2' "g ԍX#X\  P6G;/P#Inquiry into Policies to be Followed in the Authorization of Common Carrier Facilities to Meet Caribbean  {O' " Region Telecommunications Needs During the 19851995 Period, CC Docket No. 83525, Report and  {O 'Order, 3 FCC Rcd 97, 105 (1988).(#Ɵ The improvement in telecommunications systems would also improve services to areas in South and Central America. The Joint Applicants have also stated that other carriers, including nonowners, may acquire capacity in AMERICASII, so the procompetitive goals of the Commission are met by granting the Section 214 authorization.  Sp'9.` ` Accordingly, we conclude that the public interest will be served by granting the Joint Applicants authority to construct, acquire and operate capacity in AMERICASII. Therefore, we find that the present and future public convenience and necessity require a grant of the application, as conditioned below.  S '< IV. Ordering Clauses ă  SX' 10.` ` IT IS ORDERED that application File Nos. ITC98342 and ITC98342A ARE GRANTED and the Joint Applicants, AT&T, MCII, PGE, Sprint, LCC, STSJ, TUPR, TLDI, TRICOM, TELEGLOBE, IMPSAT, GTECC i%Y , WORLDCOM, STAR, WORLDxCHANGE, CENTENNIAL, IDT, and TELIA are authorized, pursuant to Section 214 of the Communications Act, as amended, to (1) construct, acquire, and operate capacity in a digital submarine cable system known as the AMERICASII Cable System among Florida, Puerto Rico, the U.S. Virgin Islands, Martinique, Curacao, Venezuela, Trinidad, French Guiana, and Brazil in accordance with the interests indicated in the Attachments; (2) acquire by lease or other comparable means such extension facilities as may be required to extend the capacity of AMERICASII; and (3) activate capacity in AMERICASII and in the aforementioned facilities for the provision of their authorized services.  S' 11.` ` IT IS FURTHER ORDERED that Joint Applicants' tariffs must state that their 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 countryspecific finding that the Commission will permit the provision of switched  S'services over private lines between the United States and that country. See Market Entry and  S'Regulation of ForeignAffiliated Entities, IB Docket No. 9522, Report and Order, 11 FCC Rcd 3873  S'(1995); Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, IB  S'Docket Nos. 97142, 9522, Report and Order and Order on Reconsideration, FCC 97398 (rel. Nov.  Sh'26, 1997), recon. pending. 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)."B 0*&&887"Ԍ S'ԙ 12.` ` IT IS FURTHER ORDERED that the Joint Applicants shall make available halfinterests in AMERICASII capacity to such present and future U.S. carriers as may be authorized by the Commission to acquire such capacity.  S`' 13.` ` 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.  S' 14.` ` IT IS FURTHER ORDERED that the Commission retains jurisdiction over all matters relating to the Joint Applicants' 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 the Caribbean Region.  S '15.` ` IT IS FURTHER ORDERED that the Joint Applicants shall include AMERICASII facility use in all circuit reports that may be required by the Commission's rules.  SX'16.` ` 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)). XX` ` X XXhhCXqFEDERAL COMMUNICATIONS COMMISSION(# XX` ` X XXhhCXqDiane J. Cornell(# XX` ` X XXhhCXqChief, Telecommunications Division(# XX` ` X XXhhCXqInternational Bureau(#