7 June 2011
DoD, via NSA, access to international communications with the US is a given.
For decades it has been assumed and partially reported that this has been
done by arrangements with US-based telecommunications hubs along the eastern,
western and southern coasts. The notices below suggest that access might
be arranged at cable landings as well before data is transmitted to and received
from hubs.
US cable landing locations in 2002:
http://cryptome.org/eyeball/cable/cable-eyeball.htm
http://cryptome.org/eyeball/cablew/cablew-eyeball.htm
Telephone switching hubs in downtown Manhattan:
http://cryptome.org/eyeball/nytel/nytel-eyeball.htm
NSA Spying:
http://www.eff.org/issues/nsa-spying
NSA global interception via Echelon:
http://cryptome.org/jya/echelon-dc.htm
NSA Access to Cable Landings
[Federal Register Volume 76, Number 109 (Tuesday, June 7, 2011)]
[Rules and Regulations]
[Pages 32866-32867]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14009]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[DA 11-668]
Cable Landing Licenses; Correction
AGENCY: Federal Communications Commission.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains a corrected mailing address for the
Defense Information Systems Agency in the regulations that we published
in the Federal Register of January 14, 2002, 67 FR 1615.
DATES: Effective June 7, 2011.
FOR FURTHER INFORMATION CONTACT: Adrienne Downs at (202) 418-0412 or
JoAnn Sutton at (202) 418-1372 of the International Bureau, Policy
Division.
SUPPLEMENTARY INFORMATION:
Background
The final regulation that is the subject of this correction
superseded Sec. 1.767(j) on the mailing address for the Defense
Information Systems Agency and affects applicants requesting
streamlined processing of cable landing license applications.
Need for Correction
As published, the final regulation contains an incorrect address
for the Defense Information Systems Agency to which applicants seeking
to use the streamlined grant procedure specified in paragraph (i) of
Sec. 1.767, must send a complete copy of their application, or
[[Page 32867]]
any major amendments or other material filings regarding the
application to, among others, the Defense Information Systems Agency.
List of Subjects in 47 CFR Part 1
Administrative practice and procedure.
Federal Communications Commission.
Sarah Van Valzah,
Assistant Bureau Chief, International Bureau.
Accordingly, 47 CFR part 1 is corrected by making the following
correcting amendments:
PART 1--PRACTICE AND PROCEDURES
0
1. The authority citation for part 1 continues to read as follows:
Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j),
155, 157, 225, 303(r), and 309.
0
2. Section 1.767 is amended by revising paragraph (j) to read as
follows:
Sec. 1.767 Cable landing licenses.
* * * * *
(j) Applications for streamlining. Each applicant seeking to use
the streamlined grant procedure specified in paragraph (i) of this
section shall request streamlined processing in its application.
Applications for streamlined processing shall include the information
and certifications required by paragraph (k) of this section. On the
date of filing with the Commission, the applicant shall also send a
complete copy of the application, or any major amendments or other
material filings regarding the application, to: U.S. Coordinator, EB/
CIP, U.S. Department of State, 2201 C Street, NW., Washington, DC
20520-5818; Office of Chief Counsel/NTIA, U.S. Department of Commerce,
14th St. and Constitution Ave., NW., Washington, DC 20230; and Defense
Information Systems Agency, ATTN: GC/DO1, 6910 Cooper Avenue, Fort
Meade, MD 20755-7088, and shall certify such service on a service list
attached to the application or other filing.
* * * * *
[FR Doc. 2011-14009 Filed 6-6-11; 8:45 am]
BILLING CODE 6712-01-P
[Federal Register Volume 67, Number 9 (Monday, January 14, 2002)]
[Rules and Regulations]
[Pages 1615-1623]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 02-789]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[IB Docket No. 00-106, FCC 01-332]
Review of Commission Consideration of Applications Under the
Cable Landing License Act
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document adopts streamlining procedures for processing
applications for submarine cable landing licenses. The Commission
initiated this proceeding to consider measures to facilitate the
expansion of capacity and facilities-based competition in the submarine
cable market. The Commission adopted measures designed to enable
international carriers to respond to the demands of the market with
minimal regulatory oversight and delay, saving time and resources for
both the industry and government, while preserving the Commission's
ability to guard against anti-competitive behavior.
DATES: Effective March 15, 2002 except for Secs. 1.767(a)(7) through
(a)(9), (a)(11), (g)(1) through (g)(14), (j), (k), (l)(1) and (l)(2)
and (m)(1) through (m)(2); and Secs. 1.768(a) through (i) which contain
information collection requirements that have not been approved by the
Office of Management and Budget (OMB). The FCC will publish a document
in the Federal Register announcing the effective date for those
sections. Public comments on the information collection requirements
are due on or before February 13, 2002. OMB must submit written
comments on the information collection requirements on or before March
15, 2002.
ADDRESSES: Federal Communications Commission, Secretary, 445 12th
Street, SW., Room TW-B204F, Washington, DC 20554. In addition to filing
comments with the Secretary, a copy of any comments on the information
collections contained herein should be submitted to Judy Boley, Federal
Communications Commission, Room 1-C804, 445 12th Street, SW.,
Washington, DC 20554, or via the Internet tojboley@fcc.gov,and to
Edward C. Springer, OMB Desk Officer, Room 10236 NEOB, 725 17th Street,
NW., Washington, DC 20503 or via the Internet
toedward.springer@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: Peggy Reitzel, Policy and Facilities
Branch, Telecommunications Division, International Bureau, (202) 418-
1499. For additional information concerning the information collections
contained in this document contact Judy Boley at (202) 418-0214, or via
the Internet at jboley@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, FCC 01-332, adopted on November 8, 2001, and released on
December 14, 2001. The full text of this document is available for
inspection and copying during normal business hours in the FCC
Reference Center (Room CY-A257) of the Federal Communications
Commission, 445 12th Street, SW., Washington, DC 20554. The document is
also available for download over the Internet at http://www.fcc.gov/
bureaus/international/Orders/2001/fcc01332/txt.The complete text of
this document also may be purchased from the Commission's copy
contractor, Qualex International, Portals II, 445 12th Street, SW.,
Room CY-B402, Washington, DC, 20554, Telephone: 202-863-2893. Fax: 202-
863-2898, e-mail qualexint@aol.com.
Summary of Report and Order
1. On June 8, 2000, the Commission adopted a Notice of Proposed
Rulemaking (NPRM) in which it proposed streamlining procedures for
applications seeking submarine cable landing licenses (65 FR 41613,
July 6, 2000). This proceeding was one of a series of such efforts the
Commission has undertaken to benefit U.S. consumers by expediting
regulatory processing and enhancing the competitiveness of service
providers in the global communications marketplace.
2. On November 8, 2001, the Commission adopted a Report and Order
(Order) in this proceeding that focused on the objectives set out in
the NPRM: (1) To institute an expedited licensing process to speed the
deployment of cable capacity to the market; (2) to ensure careful
Commission review of certain applications to guard against anti-
competitive behavior, and (3) to adopt a pro-competitive model that
could be used around the world.
3. The NPRM contained streamlining options that commenters found to
be too complex and burdensome. In response to the comments, the
Commission adopted a streamlining approach that tracks the streamlining
procedures currently used for section 214 authorizations of
international telecommunications services.
4. The Commission developed an approach under which most
applications should be streamlined. An application will qualify for
streamlined processing if the applicants have no affiliation with a
carrier that possesses market power in the cable's destination markets.
If an applicant has an affiliation with a carrier with market power in
any of the cable's World Trade Organization (WTO) Member destination
markets, the application will be eligible for streamlined processing if
each applicant with such foreign carrier affiliation certifies that it
will accept standard competitive safeguards. An application that
includes an applicant that is, or is affiliated with, a carrier that
has market power in a cable's non-WTO Member destination market will
not be eligible for streamlining. To determine affiliation, the Order
applies the twenty-five percent (25%) ownership affiliation standard
that is currently applied to international section 214 and cable
landing license applications.
5. The standard competitive safeguards are designed to detect and
deter harm to competition in the United States that may result from a
foreign carrier's market power. The safeguards include a requirement to
file quarterly provisioning and maintenance reports and quarterly
circuit status reports. Licensees concerned about public disclosure of
the reports will be able to request a standard protective order for
confidential treatment of the information.
6. The Order's competitive safeguards also include a ``no special
concessions'' rule that prohibits all licensees from directly or
indirectly agreeing to accept a ``special concession'' from a foreign
carrier with market power in one or more of the cable's destination
markets. The Order defines a special concession as an exclusive
arrangement involving services, facilities, or functions on the foreign
end of a U.S. international route that are necessary to land, connect,
or operate submarine cables, where the arrangement is not offered to
similarly situated U.S. submarine cable owners, indefeasible-right-of-
user holders, or lessors, and includes arrangements for the terms for
acquisition, resale, lease, transfer and use of capacity on the cable;
access to collocation space; the opportunity to provide or obtain
backhaul capacity; access to technical network information; and
[[Page 1616]]
interconnection to the public switched telecommunications network. The
rule will apply to all licenses issued after the effective date of the
Order. In addition, existing licensees may seek to modify their
licenses to substitute this targeted safeguard for the current
prohibition against any exclusive arrangements.
7. The Order also adopted a requirement that all cable landing
licensees, like international section 214 carriers, must notify the
Commission of any foreign carrier affiliations acquired after the
issuance of a license where the affiliation is with a carrier in a
market at the foreign end of the cable. This rule will be applied to
all licensees of all submarine cables, whether authorized by the
Commission prior to or after the effective date of the rules adopted
herein. The Commission concluded that this rule would provide
additional protection against possible anti-competitive conduct.
8. Streamlined processing is optional, and thus applicants may
elect to file under the traditional procedures. Moreover, although the
Order did not mandate electronic filing of applications, applicants are
encouraged to file electronically. Applications that meet the criteria
for streamlined processing will be acted upon in a period of forty-five
(45) days following the public notice announcing the application as
acceptable for filing and eligible for streamlining. Applications
acceptable for filing but ineligible for streamlining will be acted
upon within ninety (90) days unless the Commission notifies the
applicant that the application presents issues that require additional
scrutiny, in which case the Commission will extend the review for
another ninety (90) days. The Commission delegated to the International
Bureau the authority to identify particular applications that, although
otherwise eligible for streamlining, may warrant additional public
comment and require consideration on a case-by-case basis.
9. The Commission declined to adopt a specific timeframe by which
it will issue public notices of applications accepted for filing.
Rather, it will continue its practice of issuing public notices of
applications accepted for filing in an expeditious manner. The
Commission adopted the procedure used for section 214 applications of
not routinely removing applications from streamlining based on the
filing of comments on competitive or other issues that a party might
seek to raise. In addition, the Commission adopted its proposal to
grant applications by public notice unless a formal written order is
deemed necessary.
10. The Commission adopted a new rule that will require fewer
entities to become applicants/licensees. Only the following entities
will be required to be applicants for a cable landing license: an
entity that (1) owns or controls a landing station in the United
States; or (2) owns or controls a five percent (5%) or greater interest
in the cable system and will use the U.S. points of the cable system.
In addition, the Commission established a process for an existing
licensee that is not a U.S. landing party and owns or controls less
than five percent (5%) of the cable system to seek removal from a
submarine cable landing license. The Commission also clarified its rule
that once an entity is a licensee, it is subject to the Commission's
rules for modifications, assignments and transfers of control of
interests in cable landing licenses, even where these interests are
less than five percent (5%). The Commission will continue to require
applicants for a cable landing license to identify all original owners,
including those with less than five percent (5%) interest.
11. The Commission reminded applicants seeking common carrier
landing licenses that, in addition to the cable landing license
application, they must file an application for section 214 authority
for the construction of new lines under Sec. 63.18(e)(4) of the
Commission's rules.
12. The Commission adopted a new process designed to replace prior
review of pro forma transactions with a post-transaction notification
procedure, thereby allowing entities to proceed with their pro forma
transactions without delay. In addition, the Commission provided that
an existing licensee may file an application to modify its license to
take advantage of this post-transaction notification procedure.
13. To provide clear and publicly available conditions for
licenses, the Commission codified routine conditions that traditionally
have been attached to all cable landing licenses. In addition, the
Commission codified the new streamlining procedures, the no special
concessions rule for all licensees, the reporting requirements, the pro
forma procedures, and the applicant-licensee rule.
14. The Order also addressed other issues raised in the NPRM or by
commenters. The Commission declined to eliminate the distinction
between cables operated on a common carrier and private carrier basis.
The Commission suggested that parties seeking modifications to existing
fee structures pursue these requests through the annual rulemaking
process specifically designated for this purpose. The Commission
declined to adopt suggestions to reduce the ownership information
required in cable landing license and section 214 applications,
deferring this issue to its 2002 biennial review of all of its rules.
The Commission clarified its rule regarding the type of information an
applicant must provide in its specific description of cable landing
stations.
Procedural Matters
15. Paperwork Reduction Act. The Order contained modified
information collections. The Commission, as part of its continuing
effort to reduce paperwork burdens, invites the general public and the
Office of Management and Budget (OMB) to comment on the information
collections contained in the NPRM, as required by the Paperwork
Reduction Act of 1995, Public Law 104-13. Public and agency comments
are due February 13, 2002. OMB notification of action is due March 15,
2002. Comments should address the following: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
burden estimate; (c) ways to enhance the quality, utility, and clarity
of the information collected; and (d) ways to minimize the burden of
the collection of information on the respondents, including the use of
automated collection techniques or other forms of information
technology.
OMB Control Number: 3060-0944.
Title: Applications under the Cable Landing License Act.
Form Number: N/A.
Type of Review: Revised collection.
Respondents: Business and other for-profit entities.
Number of Respondents: 25.
Number of Responses: 271.
Estimated Time Per Response: An average of 4 hours per response.
Frequency of Response: On Occasion. Third party disclosure.
Total Annual Burden: 995 hours.
Total Annual Costs: $352,425.
Needs and Uses: The information will be used by the Commission to
determine the qualifications of applicants to construct and operate
submarine cables, including applicants that are affiliated with foreign
carriers, and to determine whether and under what conditions the
authorizations are in the public interest, convenience, and necessity.
The information collections are necessary for the Commission to
maintain effective oversight of U.S. carriers that are affiliated with,
or
[[Page 1617]]
involved in similar arrangements with, foreign carriers that have
sufficient market power to affect competition adversely in the U.S.
market. In addition, the Commission must maintain records that
accurately reflect a party or parties that control a carrier's
operations, particularly for purposes of enforcing the Commission's
rules and policies.
16. Final Regulatory Flexibility Act Analysis. As required by the
Regulatory Flexibility Act (RFA), an Initial Regulatory Flexibility
Analysis (IRFA) was incorporated in the Review of Commission
Consideration of Applications under the Cable Landing License Act,
Notice of Proposed Rulemaking (NPRM). The Commission sought written
public comment on the proposals of the NPRM, including comment on the
IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the
RFA. (5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has been amended
by the Contract With America Advancement Act of 1996, Public Law No.
104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
A. Need for, and Objectives of, the Report and Order
17. In recent years, there has been growth in the number and
capacity of submarine cables triggered in large part by increased
Internet and data traffic. Because of this increased demand for
capacity, the rapid pace of technological development, and the
emergence of non-traditional ownership and financing structures in the
submarine cable marketplace, the International Bureau reviewed its
policies for licensing submarine cables. As a result of the review, the
Commission initiated this proceeding.
18. The Order adopts streamlining procedures for processing
applications for submarine cable landing licenses. The streamlining
procedures are designed to promote the expansion of capacity and
facilities-based competition in the submarine cable market, which
should increase innovation and lower prices for U.S. consumers of
international communications services. The measures also are designed
to enable international carriers to respond to the demands of the
market with minimal regulatory oversight and delay, saving time and
resources for both the industry and the government, while preserving
the Commission's ability to guard against anti-competitive behavior.
19. The measures adopted in the Order are part of the Commission's
continuing streamlining efforts. We recognize the importance of
reducing regulatory costs, providing regulatory certainty, and
facilitating the planning of financial transactions. The procedures
contained in the Order should allow participants in the submarine cable
market to make business decisions more readily.
B. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
20. There were no comments in response to the IRFA. In general,
commenters were very supportive of the agency's proposal to streamline
the submarine cable landing license process. However, some commenters
were concerned that the options proposed in the NPRM could be
burdensome and time-consuming for both applicants and Commission staff,
and, instead of expediting the licensing process, could slow the
licensing process. Thus, commenters proposed alternatives that more
closely resembled the streamlining process currently used by the agency
for processing international section 214 authorizations. The Order
adopts an approach to streamlining that reflects the concerns raised by
commenters.
21. Commenters in this proceeding presented a number of approaches
and/or criteria for determining whether an application would be
eligible for streamlined processing. The Order adopts an eligibility
test for cables to World Trade Organization (WTO) Member countries that
focuses on whether the applicants are, or are affiliated with, carriers
with market power in the cable's destination market. Cables without
such affiliations will be eligible for streamlining. Cables with such
affiliations will be eligible if the applicants/licensees with such
affiliations comply with reporting requirements that are similar to
existing dominant carrier reporting requirements applicable to section
214 carriers that have affiliations with market power carriers in
foreign markets. (See 47 CFR 63.10). In addition, all licensees will be
subject to the prohibition against entering into special arrangements
with foreign market-power carriers. The Commission believes that the
rules and regulations adopted herein both will respond to the
commenters' proposals and preserve the Commission's ability to guard
against anti-competitive behavior that could result in harm to
consumers in the U.S. market.
C. Description and Estimate of the Number of Small Entities to Which
Rules Will Apply
22. The RFA directs agencies to provide a description of, and,
where feasible, estimate of, the number of small entities that may be
affected by the proposals, if adopted. The Regulatory Flexibility Act
defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' In addition, the term ``small business''
has the same meaning as the term ``small business concern'' under
Section 3 of the Small Business Act. A small business concern is one
that: (1) Is independently owned and operated; (2) is not dominant in
its field of operation; and (3) satisfies any additional criteria
established by the SBA.
23. The SBA has developed a definition of small entities for
telephone communications companies other than radiotelephone (wireless)
companies. Some of these telephone communications companies may have
ownership interests in submarine cables or use such cables to provide
international service. The Census Bureau reports that there were 2,321
such companies that had been operating for at least one year at the end
of 1992. According to the SBA's definition, a wireline telephone
company is a small business if it employs no more than 1,500 persons.
All but 26 of the 2,321 wireline companies listed by the Census Bureau
were reported to have fewer than 1,000 employees. Thus, even if all 26
of those companies had more than 1,500 employees, there would still be
2,295 wireline companies that might qualify as small entities or small
incumbent LECs. Although it seems certain that some of these carriers
are not independently owned and operated, we are unable at this time to
estimate with greater precision the number of wireline carriers and
service providers that would qualify as small business concerns under
the SBA's definition. Consequently, we estimate that 2,295 or fewer of
these wireline companies are small entities that might be affected by
these proposals.
24. The streamlining measures contained in the Order are available
to entities applying for a license to land or operate submarine cables
under the Cable Landing License Act (or entities applying to assign or
transfer control of interests in existing submarine cable landing
licenses). The measures, however, may indirectly affect other entities
as well, including users of submarine cable service such as Internet
[[Page 1618]]
service providers (ISPs) that lease capacity or purchase indefeasible
rights of use (IRUs) on cable systems. The policies and rules adopted
in the Order will reduce the burden on all applicants regardless of
size, by permitting applicants to seek to have their applications
granted in a more expeditious manner. We do not have precise numbers
for the small entities that will be affected by the policies and rules.
Agency data indicates there have been approximately 50 cable landing
applications filed with the Commission since 1992, but the total number
of licensees at any particular time is difficult to determine, because
many licenses are jointly held by several licensees and assignments and
transfers of control of interests occur on a regular basis. Based on
this information, we would estimate that, over the next five years, the
streamlining procedures may benefit as many as 50 applicants meeting
the SBA definition of a small entity.
25. In addition to expediting the processing of applications, the
Order will require fewer entities to become applicants/licensees. This
change will further reduce the number of small entities subject to the
rules and regulations. Only the following entities will be required to
be applicants for a cable landing license: an entity that (1) owns or
controls a U.S. landing station; or (2) owns or controls a five percent
(5%) or greater interest in the cable system and will use the U.S.
points of the cable system. In order to afford existing cable landing
licensees this same opportunity, small entities that meet the criteria
may request to be removed from the cable landing license.
26. We note that it is difficult to determine with precision the
number of small entities that will be affected by this Order. For
example, some small entities with less than five percent (5%) ownership
may elect to become licensees. We will be able to compile more specific
data only after small entities file applications seeking removal from
existing cable landing licenses. However, the following example of
cable ownership interests will provide a good illustration of the
potential number of small entities that could be exempt from the
requirements of the Order. According to agency data at the time of
application, the percentage of ownership interests for an existing
submarine cable system, the TAT-14 cable, were as follows: four U.S.
carriers owned five percent (5%) or greater (these four carriers owned
a total of 32.57 percent); fifteen U.S. carriers owned less than five
percent (5%) (these fifteen carriers owned a total of 16.93 percent);
and thirty-two foreign carriers owned the remaining 50.50 percent.
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
27. Any reporting or recordkeeping requirements imposed on small
entities will be insignificant. Generally, applicants seeking a cable
landing license will submit the same information that is currently
required by the rules. Applicants may continue to file for a license
under the existing procedures, and some applicants will not meet the
eligibility criteria for streamlined processing. Applicants may file
electronic or paper applications.
28. We believe that many small entities below the five percent (5%)
ownership criteria may decide not to be cable landing license
applicants, and therefore, such entities will not be subject to the
reporting, recordkeeping, or compliance requirements applicable to
licensees. Small entities that are currently licensees, and meet these
criteria, may file an application requesting that they be removed from
the license. The application would demonstrate that the entity: (1)
Does not own or control a U.S. cable landing station; and (2) holds
less than five percent (5%) interest in the cable system. The
application would be filed with the Commission and copies would be
served on each other licensee of the cable system. This burden should
be minimal because the information would be readily available from the
information that the entity provided at the time of becoming an initial
applicant or from other business records showing an increase or
decrease of ownership interest. As an existing licensee of a cable
landing license, the entity would have ready access to the names and
addresses of other licensees. Thus, the service burden also would be
minimal.
29. The Order also adopts standard competitive safeguards that will
impose additional reporting burdens on certain entities. We believe,
however, that very few small entities will be burdened with this
requirement. Reporting requirements will be imposed only on those
applicants that have an affiliation with a carrier with market power in
any of the cable's destination markets. These applicants will be
required to provide provisioning and maintenance reports that include:
(a) Identification of each facility or service provisioned and/or
maintained; (b) for provisioned facilities and services, the volume or
quantity provisioned and the order-to-delivery intervals; and (c) for
each facility and service, the number of outages and intervals to
restoration. Also, applicants will be required to provide quarterly
circuit status reports, on a facility-specific basis, in the format set
out by the Commission's annual circuit status manual. If applicants
have a concern over the public disclosure of their reports, they may
seek confidential treatment of the information and request a standard
protective order.
30. The Order also adopts a rule that requires licensees to notify
the Commission of new affiliations that they acquire with foreign
carriers in a cable's destination market. If the Commission deems it
necessary, it will impose on the newly affiliated licensee the
reporting requirements discussed above. This rule is similar to the
notification rule that applies in the context of international section
214 carriers, see 47 CFR 63.11. We believe this reporting requirement
will have minimal applicability to small entities because it will apply
only to licensees, and it is likely, under our rules, that few small
entities (that is, those independently owned and operated companies
with no more than 1500 employees) will be required to become licensees.
31. The Order also adopts a new process designed to remove prior
Commission review of pro forma assignments or transfers of control of
interests in submarine cable landing licenses. Again, this process will
have minimal applicability to small entities to the extent they are not
cable licensees. Pro forma transactions do not result in a change in
the ultimate control of the interest in the cable landing license or in
changes to the cable system itself as previously evaluated at the time
of the initial license application. Under the Order, a pro forma
assignee or a person or company that is the subject of a pro forma
transfer of control of an interest in a cable landing license will no
longer be required to seek prior approval, but if electing post-
transaction notification, must: (1) Notify the Commission no later than
thirty (30) days after the pro forma transaction is consummated; (2)
certify that the assignment or transfer of control is pro forma, and
together with all previous pro forma transactions, does not result in a
change of the licensee's ultimate control; and (3) provide an update to
any ownership information required by our rules. Under this new rule,
the burden of seeking prior approval would be eliminated for most
entities, thus allowing them to proceed with their pro forma
transaction without delay. Entities would file the same information
after the transaction instead of prior to the transaction. The Order
provides that
[[Page 1619]]
existing licenses could be modified, at a licensee's request, to be
subject to this post-transaction process. The licensee would be
required to file an application with the Commission seeking a
modification of its license to incorporate this limited exception to
the prior approval requirement currently set forth in the applicable
license condition. This new process will impose a slight burden on
applicants that have been granted a cable landing license and wish to
take advantage of this new process. Presumably licensees will only
subject themselves to this burden if they believe the benefit of
expedited post-transaction processing of pro forma assignments or
transfers of control will offset any burden. Similarly, the Order
states that licensees of previously authorized cables may file
applications to modify their licenses to substitute the new, more
narrowly tailored ``no special concessions'' rule for the ``no
exclusive arrangements'' condition contained in existing licenses.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
32. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives (among others): (1)
The establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage or the rule, or any part thereof, for small
entities.
33. In the NPRM, we requested comment on whether small entities
would be adversely affected by the proposals and whether the proposals
would enable small entities to respond to the demands of the market
with minimum regulatory oversight, delays, and expenses. Commenters did
not specifically address the impact on small entities. Rather,
commenters expressed concerns that the NPRM proposals could be
burdensome and time-consuming on all entities. Commenters proposed
alternative measures more aligned with the existing section 214
streamlining procedures. As a result, the Order adopts measures that
are closely modeled on the streamlining process for international
section 214 authorizations which has been successful and not
burdensome.
34. The procedures adopted in the Order are designed to provide
more certainty and flexibility for applicants, encourage investment and
infrastructure development by multiple providers, expand available
submarine cable capacity, and decrease application processing time.
This decision extends the benefits of streamlined processing to as many
applicants as possible, including small entities. It reduces the
regulatory and procedural burdens while preserving the Commission's
ability to guard against anti-competitive behavior. This streamlined
processing may benefit small entities especially because the procedures
should facilitate entry by such entities into the submarine cable
market and expand international services available to such entities. In
addition, we have developed a definition of ``licensee'' that should
permit a large number of small entities to be exempt from the
requirements contained in the Order.
35. Finally, the reporting requirements and other measures adopted
in the Order will minimize any economic impact on small entities. The
reporting requirements, which apply only to certain licensees, will
allow the Commission to monitor and detect anti-competitive behavior
without imposing unnecessarily burdensome regulations on a U.S.
licensee due to its affiliation with a foreign carrier.
36. To simplify compliance with the rules and requirements, the
Order codifies the submarine cable landing license conditions. This
step will provide clear and publicly available standard conditions for
all entities. Also, applicants will no longer be required to submit a
letter affirmatively accepting the terms and conditions of the cable
landing license.
Report to Congress: The Commission will send a copy of the Order,
including this FRFA, in a report to be sent to Congress pursuant to the
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A). In addition, the
Commission will send a copy of the Order, including FRFA, to the Chief
Counsel for Advocacy of the Small Business Administration. A copy of
the Order and FRFA (or summaries thereof) will also be published in the
Federal Register. See 5 U.S.C. 604(b).
Ordering Clauses
37. Accordingly, it is ordered that, pursuant to sections 1, 4(i)
and (j), 201-255 303(r) of the Communications Act as amended, 47 U.S.C.
151, 154(i), 154(j), 201-255, 303(r), and the Cable Landing License
Act, 47 U.S.C. 34-39 and Executive Order No. 10530, Sec. 5(a),
reprinted as amended in 3 U.S.C. 301, this Report and Order is hereby
adopted and the Commission's rules, 47 CFR part 1, are amended as set
forth in the Rule Changes.
38. It is further ordered that the policies, rules and requirements
established in this decision shall take effect March 15, 2002, except
for Secs. 1.767(a)(7) through (a)(9), (a)(11), (g)(1) through (g)(14),
(j), (k), (l)(1) and (l)(2), and (m)(1) through (m)(2); and
Secs. 1.768(a) through (i) which contain information collection
requirements that have not been approved by the Office of Management
and Budget (OMB). The FCC will publish a document in the Federal
Register announcing the effective date for those sections.
39. It is further ordered that the Commission's Consumer
Information Bureau, Reference Information Center, shall send a copy of
this Report and Order, including the Final Regulatory Flexibility Act
Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration.
List of Subjects in 47 CFR Part 1
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications miscellaneous rules relating to common
carriers.
Federal Communications Commission.
William F. Caton,
Deputy Secretary.
Rule Changes
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309
and 325(e).
2. Section 1.767 is amended by revising paragraphs (a)(5), (a)(7),
and (a)(8); redesignating paragraph (a)(9) as (a)(10); adding new
paragraphs (a)(9), (a)(11), (g) through (m) to read as follows:
Sec. 1.767 Cable landing licenses.
(a) * * *
(5) A specific description of the cable landing stations on the
shore of the United States and in foreign countries where the cable
will land. The description shall include a map showing specific
geographic coordinates, and may also include street addresses, of each
landing station. The map must also specify the coordinates of any beach
joint where those
[[Page 1620]]
coordinates differ from the coordinates of the cable station. The
applicant initially may file a general geographic description of the
landing points; however, grant of the application will be conditioned
on the Commission's final approval of a more specific description of
the landing points, including all information required by this
paragraph, to be filed by the applicant no later than ninety (90) days
prior to construction. The Commission will give public notice of the
filing of this description, and grant of the license will be considered
final if the Commission does not notify the applicant otherwise in
writing no later than sixty (60) days after receipt of the specific
description of the landing points, unless the Commission designates a
different time period;
* * * * *
(7) A list of the proposed owners of the cable system, including
each U.S. cable landing station, their respective voting and ownership
interests in each U.S. cable landing station, their respective voting
interests in the wet link portion of the cable system, and their
respective ownership interests by segment in the cable;
(8) For each applicant of the cable system, a certification as to
whether the applicant is, or is affiliated with, a foreign carrier,
including an entity that owns or controls a foreign cable landing
station in any of the cable's destination markets. Include the
citizenship of each applicant and information and certifications
required in Sec. 63.18(h) through (k), and in Sec. 63.18(o), of this
chapter;
(9) A certification that the applicant accepts and will abide by
the routine conditions specified in paragraph (g) of this section; and
* * * * *
(11) (i) If applying for authority to assign or transfer control of
an interest in a cable system, the applicant shall complete paragraphs
(a)(1) through (a)(3) of this section for both the transferor/assignor
and the transferee/assignee. Only the transferee/assignee needs to
complete paragraphs (a)(8) through (a)(9) of this section. At the
beginning of the application, the applicant should also include a
narrative of the means by which the transfer or assignment will take
place. The application shall also specify, on a segment specific basis,
the percentage of voting and ownership interests being transferred or
assigned in the cable system, including in a U.S. cable landing
station. The Commission reserves the right to request additional
information as to the particulars of the transaction to aid it in
making its public interest determination.
(ii) In the event the transaction requiring an assignment or
transfer of control application also requires the filing of a foreign
carrier affiliation notification pursuant to Sec. 1.768, the applicant
shall reference in the application the foreign carrier affiliation
notification and the date of its filing. See Sec. 1.768. See also
paragraph (g)(7) of this section (providing for post-transaction
notification of pro forma assignments and transfers of control).
(iii) An assignee or transferee shall notify the Commission no
later than thirty (30) days after either consummation of the assignment
or transfer or a decision not to consummate the assignment or transfer.
The notification may be by letter and shall identify the file numbers
under which the initial license and the authorization of the assignment
or transfer were granted.
* * * * *
(g) Routine conditions. Except as otherwise ordered by the
Commission, the following rules apply to each licensee of a cable
landing license granted on or after March 15, 2002:
(1) Grant of the cable landing license is subject to:
(i) All rules and regulations of the Federal Communications
Commission;
(ii) Any treaties or conventions relating to communications to
which the United States is or may hereafter become a party; and
(iii) Any action by the Commission or the Congress of the United
States rescinding, changing, modifying or amending any rights accruing
to any person by grant of the license;
(2) The location of the cable system within the territorial waters
of the United States of America, its territories and possessions, and
upon its shores shall be in conformity with plans approved by the
Secretary of the Army. The cable shall be moved or shifted by the
licensee at its expense upon request of the Secretary of the Army,
whenever he or she considers such course necessary in the public
interest, for reasons of national defense, or for the maintenance and
improvement of harbors for navigational purposes;
(3) The licensee shall at all times comply with any requirements of
United States government authorities regarding the location and
concealment of the cable facilities, buildings, and apparatus for the
purpose of protecting and safeguarding the cables from injury or
destruction by enemies of the United States of America;
(4) The licensee, or any person or company controlling it,
controlled by it, or under direct or indirect common control with it,
does not enjoy and shall not acquire any right to handle traffic to or
from the United States, its territories or its possessions unless such
service is authorized by the Commission pursuant to section 214 of the
Communications Act, as amended;
(5)(i) The licensee shall be prohibited from agreeing to accept
special concessions directly or indirectly from any foreign carrier,
including any entity that owns or controls a foreign cable landing
station, where the foreign carrier possesses sufficient market power on
the foreign end of the route to affect competition adversely in the
U.S. market, and from agreeing to accept special concessions in the
future.
(ii) For purposes of this section, a special concession is defined
as an exclusive arrangement involving services, facilities, or
functions on the foreign end of a U.S. international route that are
necessary to land, connect, or operate submarine cables, where the
arrangement is not offered to similarly situated U.S. submarine cable
owners, indefeasible-right-of-user holders, or lessors, and includes
arrangements for the terms for acquisition, resale, lease, transfer and
use of capacity on the cable; access to collocation space; the
opportunity to provide or obtain backhaul capacity; access to technical
network information; and interconnection to the public switched
telecommunications network.
Note to paragraph (g)(5): Licensees may rely on the Commission's
list of foreign carriers that do not qualify for the presumption
that they lack market power in particular foreign points for
purposes of determining which foreign carriers are the subject of
the requirements of this section. The Commission's list of foreign
carriers that do not qualify for the presumption that they lack
market power is available from the International Bureau's World Wide
Web site at http://www.fcc.gov/ib.
(6) Except as provided in paragraph (g)(7) of this section, the
cable landing license and rights granted in the license shall not be
transferred, assigned, or disposed of, or disposed of indirectly by
transfer of control of the licensee, unless the Federal Communications
Commission gives prior consent in writing;
(7) A pro forma assignee or a person or company that is the subject
of a pro forma transfer of control of a cable landing license is not
required to seek prior approval for the pro forma transaction. A pro
forma assignee or person or company that is the subject of a pro forma
transfer of control must notify the Secretary, Federal Communications
Commission,
[[Page 1621]]
Washington, DC 20554, with a copy to the Chief, International Bureau,
Federal Communications Commission, no later than thirty (30) days after
the assignment or transfer of control is consummated. The notification
may be in the form of a letter (in duplicate to the Secretary), and it
must contain a certification that the assignment or transfer of control
was pro forma, as defined in Sec. 63.24(a) of this chapter, and,
together with all previous pro forma transactions, does not result in a
change of the licensee's ultimate control. A single letter may be filed
for an assignment or transfer of control of more than one license
issued in the name of a licensee if each license is identified by the
file number under which it was granted;
(8) Unless the licensee has notified the Commission in the
application of the precise locations at which the cable will land, as
required by paragraph (a)(5) of this section, the licensee shall notify
the Commission no later than ninety (90) days prior to commencing
construction at that landing location. The Commission will give public
notice of the filing of each description, and grant of the cable
landing license will be considered final with respect to that landing
location unless the Commission issues a notice to the contrary no later
than sixty (60) days after receipt of the specific description. See
paragraph (a)(5) of this section;
(9) The Commission reserves the right to require the licensee to
file an environmental assessment should it determine that the landing
of the cable at the specific locations and construction of necessary
cable landing stations may significantly affect the environment within
the meaning of Sec. 1.1307 implementing the National Environmental
Policy Act of 1969. See Sec. 1.1307(a) and (b). The cable landing
license is subject to modification by the Commission under its review
of any environmental assessment or environmental impact statement that
it may require pursuant to its rules. See also Sec. 1.1306 note 1 and
Sec. 1.1307(c) and (d);
(10) The Commission reserves the right, pursuant to section 2 of
the Cable Landing License Act, 47 U.S.C. 35, Executive Order No. 10530
as amended, and section 214 of the Communications Act of 1934, as
amended, 47 U.S.C. 214, to impose common carrier regulation or other
regulation consistent with the Cable Landing License Act on the
operations of the cable system if it finds that the public interest so
requires;
(11) The licensee, or in the case of multiple licensees, the
licensees collectively, shall maintain de jure and de facto control of
the U.S. portion of the cable system, including the cable landing
stations in the United States, sufficient to comply with the
requirements of the Commission's rules and any specific conditions of
the license;
(12) The licensee shall comply with the requirements of Sec. 1.768;
(13) The cable landing license is revocable by the Commission after
due notice and opportunity for hearing pursuant to section 2 of the
Cable Landing License Act, 47 U.S.C. 35, or for failure to comply with
the terms of the license or with the Commission's rules; and
(14) The licensee shall notify the Secretary, Federal Commissions
Commission, Washington, DC 20554, in writing, within thirty (30) days
of the date the cable is placed into service, of the date the cable was
placed into service. The cable landing license shall expire twenty-five
(25) years from the in-service date, unless renewed or extended upon
proper application. Upon expiration, all rights granted under the
license shall be terminated.
(h) Applicants/Licensees. Except as otherwise required by the
Commission, the following entities, at a minimum, shall be applicants
for, and licensees on, a cable landing license:
(1) Any entity that owns or controls a cable landing station in the
United States; 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.
(i) Processing of cable landing license applications. The
Commission will take action upon an application eligible for
streamlined processing, as specified in paragraph (k) of this section,
within forty-five (45) days after release of the public notice
announcing the application as acceptable for filing and eligible for
streamlined processing. If the Commission deems an application seeking
streamlined processing acceptable for filing but ineligible for
streamlined processing, or if an applicant does not seek streamlined
processing, the Commission will issue public notice indicating that the
application is ineligible for streamlined processing. Within ninety
(90) days of the public notice, the Commission will take action upon
the application or provide public notice that, because the application
raises questions of extraordinary complexity, an additional 90-day
period for review is needed. Each successive 90-day period may be so
extended.
(j) Applications for streamlining. Each applicant seeking to use
the streamlined grant procedure specified in paragraph (i) of this
section shall caption its application and any cover letter with
``Application for Cable Landing License--Streamlined Processing
Requested.'' Applications for streamlined processing shall include the
information and certifications required by paragraph (k) of this
section. On the date of filing with the Commission, the applicant shall
also send a complete copy of the application, or any major amendments
or other material filings regarding the application, to: U.S.
Coordinator, EB/CIP, U.S. Department of State, 2201 C Street, NW,
Washington, DC 20520-5818; Office of Chief Counsel/NTIA, U.S.
Department of Commerce, 14th St. and Constitution Ave., NW, Washington,
DC 20230; and Defense Information Systems Agency, Code RGC, 701 S.
Courthouse Road, Arlington, Va. 22204, and shall certify such service
on a service list attached to the application or other filing.
(k) Eligibility for streamlining. Each applicant must demonstrate
eligibility for streamlining by:
(1) Certifying that it is not a foreign carrier and it is not
affiliated with a foreign carrier in any of the cable's destination
markets;
(2) Demonstrating pursuant to Sec. 63.12(c)(l)(i) through (iii) of
this chapter that any such foreign carrier or affiliated foreign
carrier lacks market power; or
(3) Certifying that the destination market where the applicant is,
or has an affiliation with, a foreign carrier is a World Trade
Organization (WTO) Member and the applicant agrees to accept and abide
by the reporting requirements set out in paragraph (l) of this section.
An application that includes an applicant that is, or is affiliated
with, a carrier with market power in a cable's non-WTO Member
destination country is not eligible for streamlining.
(l) Reporting Requirements Applicable to Licensees Affiliated with
a Carrier with Market Power in a Cable's WTO Destination Market. Any
licensee that is, or is affiliated with, a carrier with market power in
any of the cable's WTO Member destination countries, and that requests
streamlined processing of an application under paragraphs (j) and (k)
of this section, must comply with the following requirements:
(1) File quarterly reports summarizing the provisioning and
maintenance of all network facilities and services procured from the
licensee's affiliate in that destination market, within ninety (90)
days from the end of each calendar quarter. These reports shall contain
the following:
[[Page 1622]]
(i) The types of facilities and services provided (for example, a
lease of wet link capacity in the cable, collocation of licensee's
equipment in the cable station with the ability to provide backhaul, or
cable station and backhaul services provided to the licensee);
(ii) For provisioned facilities and services, the volume or
quantity provisioned, and the time interval between order and delivery;
and
(iii) The number of outages and intervals between fault report and
facility or service restoration; and
(2) File quarterly circuit status reports, within ninety (90) days
from the end of each calendar quarter and in the format set out by the
Sec. 43.82 of this chapter annual circuit status manual with the
exception that activated or idle circuits must be reported on a
facility-by-facility basis and derived circuits need not be specified.
See Sec. 63.10(c)(5) of this chapter.
(m) (1) Except as specified in paragraph (m)(2) of this section,
amendments to pending applications, and applications to modify a
license, including amendments or applications to add a new applicant or
licensee, shall be signed by each initial applicant or licensee,
respectively. Joint applicants or licensees may appoint one party to
act as proxy for purposes of complying with this requirement.
(2) Any licensee that seeks to relinquish its interest in a cable
landing license shall file an application to modify the license. Such
application must include a demonstration that the applicant is not
required to be a licensee under paragraph (h) of this section and that
the remaining licensee(s) will retain collectively de jure and de facto
control of the U.S. portion of the cable system sufficient to comply
with the requirements of the Commission's rules and any specific
conditions of the license, and must be served on each other licensee of
the cable system.
Note to Sec. 1.767: The terms ``affiliated'' and ``foreign
carrier,'' as used in this section, are defined as in Sec. 63.09 of
this chapter except that the term ``foreign carrier'' also shall
include any entity that owns or controls a cable landing station in
a foreign market.
3. Add Sec. 1.768 to read as follows:
Sec. 1.768 Notification by and prior approval for submarine cable
landing licensees that are or propose to become affiliated with a
foreign carrier.
Any entity that is licensed by the Commission (``licensee'') to
land or operate a submarine cable landing in a particular foreign
destination market that becomes, or seeks to become, affiliated with a
foreign carrier that is authorized to operate in that market, including
an entity that owns or controls a cable landing station in that market,
shall notify the Commission of that affiliation.
(a) Affiliations requiring prior notification: Except as provided
in paragraph (b) of this section, the licensee must notify the
Commission, pursuant to this section, forty-five (45) days before
consummation of either of the following types of transactions:
(1) Acquisition by the licensee, or by any entity that controls the
licensee, or by any entity that directly or indirectly owns more than
twenty-five percent (25%) of the capital stock of the licensee, of a
controlling interest in a foreign carrier that is authorized to operate
in a market where the cable lands; or
(2) Acquisition of a direct or indirect interest greater than
twenty-five percent (25%), or of a controlling interest, in the capital
stock of the licensee by a foreign carrier that is authorized to
operate in a market where the cable lands, or by an entity that
controls such a foreign carrier.
(b) Exceptions: (1) Notwithstanding paragraph (a) of this section,
the notification required by this section need not be filed before
consummation, and may instead by filed pursuant to paragraph (c) of
this section, if either of the following is true with respect to the
named foreign carrier, regardless of whether the destination market
where the cable lands is a World Trade Organization (WTO) or non-WTO
Member:
(i) The Commission has previously determined in an adjudication
that the foreign carrier lacks market power in that destination market
(for example, in an international section 214 application or a
declaratory ruling proceeding); or
(ii) The foreign carrier owns no facilities in that destination
market. For this purpose, a carrier is said to own facilities if it
holds an ownership, indefeasible-right-of-user, or leasehold interest
in a cable landing station or in bare capacity in international or
domestic telecommunications facilities (excluding switches).
(2) In the event paragraph (b)(1) of this section cannot be
satisfied, notwithstanding paragraph (a) of this section, the
notification required by this section need not be filed before
consummation, and may instead be filed pursuant to paragraph (c) of
this section, if the licensee certifies that the destination market
where the cable lands is a WTO Member and provides certification to
satisfy either of the following:
(i) The licensee demonstrates that its foreign carrier affiliate
lacks market power in the cable's destination market pursuant to
Sec. 63.10(a)(3) of this chapter (see Sec. 63.10(a)(3) of this
chapter); or
(ii) The licensee agrees to comply with the reporting requirements
contained in Sec. 1.767(l) effective upon the acquisition of the
affiliation. See Sec. 1.767(l).
(c) Notification after consummation: Any licensee that becomes
affiliated with a foreign carrier and has not previously notified the
Commission pursuant to the requirements of this section shall notify
the Commission within thirty (30) days after consummation of the
acquisition.
Example 1 to paragraph (c). Acquisition by a licensee (or by
any entity that directly or indirectly controls, is controlled by,
or is under direct or indirect common control with the licensee) of
a direct or indirect interest in a foreign carrier that is greater
than twenty-five percent (25%) but not controlling is subject to
paragraph (c) of this section but not to paragraph (a) of this
section.
Example 2 to paragraph (c). Notification of an acquisition by a
licensee of a hundred percent (100%) interest in a foreign carrier
may be made after consummation, pursuant to paragraph (c) of this
section, if the foreign carrier operates only as a resale carrier.
Example 3 to paragraph (c). Notification of an acquisition by a
foreign carrier from a WTO Member of a greater than twenty-five
percent (25%) interest in the capital stock of the licensee may be
made after consummation, pursuant to paragraph (c) of this section,
if the licensee demonstrates in the post-notification that the
foreign carrier lacks market power in the cable's destination market
or the licensee agrees to comply with the reporting requirements
contained in Sec. 1.767(l) effective upon the acquisition of the
affiliation.
(d) Cross-reference: In the event a transaction requiring a foreign
carrier notification pursuant to this section also requires a transfer
of control or assignment application pursuant to the requirements of
the license granted under Sec. 1.767 or Sec. 1.767(g), the foreign
carrier notification shall reference in the notification the transfer
of control or assignment application and the date of its filing. See
Sec. 1.767(g).
(e) Contents of notification: The notification shall certify the
following information:
(1) The name of the newly affiliated foreign carrier and the
country or countries at the foreign end of the cable in which it is
authorized to provide telecommunications services to the public or
where it owns or controls a cable landing station;
(2) Which, if any, of those countries is a Member of the World
Trade Organization;
(3) The name of the cable system that is the subject of the
notification, and the
[[Page 1623]]
FCC file number(s) under which the license was granted;
(4) The name, address, citizenship, and principal business of any
person or entity that directly or indirectly owns at least ten percent
(10%) of the equity of the licensee, and the percentage of equity owned
by each of those entities (to the nearest one percent (1%));
(5) Interlocking directorates. The name of any interlocking
directorates, as defined in Sec. 63.09(g) of this chapter, with each
foreign carrier named in the notification. See Sec. 63.09(g) of this
chapter.
(6) With respect to each foreign carrier named in the notification,
a statement as to whether the notification is subject to paragraph (a)
or (c) of this section. In the case of a notification subject to
paragraph (a) of this section, the licensee shall include the projected
date of closing. In the case of a notification subject to paragraph (c)
of this section, the licensee shall include the actual date of closing.
(7) If a licensee relies on an exception in paragraph (b) of this
section, then a certification as to which exception the foreign carrier
satisfies and a citation to any adjudication upon which the licensee is
relying. Licensees relying upon the exceptions in paragraph (b)(2) of
this section must make the required certified demonstration in
paragraph (b)(2)(i) of this section or the certified commitment to
comply with the reporting requirements in paragraph (b)(2)(ii) of this
section in the notification required by paragraph (c) of this section.
(f) If the licensee seeks to be excepted from the reporting
requirements contained in Sec. 1.767(l), the licensee should
demonstrate that each foreign carrier affiliate named in the
notification lacks market power pursuant to Sec. 63.10(a)(3) of this
chapter. See Sec. 63.10(a)(3) of this chapter.
(g) Procedure. After the Commission issues a public notice of the
submissions made under this section, interested parties may file
comments within fourteen (14) days of the public notice.
(1) If the Commission deems it necessary at any time before or
after the deadline for submission of public comments, the Commission
may impose reporting requirements on the licensee based on the
provisions of Sec. 1.767(l). See Sec. 1.767(l).
(2) In the case of a prior notification filed pursuant to paragraph
(a) of this section in which the foreign carrier is authorized to
operate in, or own a cable landing station in, a non-WTO Member, the
licensee must demonstrate that it continues to serve the public
interest for it to retain its interest in the cable landing license for
that segment of the cable that lands in the non-WTO destination market
by demonstrating either that the foreign carrier lacks market power in
that destination market pursuant to Sec. 63.10(a)(3) of this chapter or
the market offers effective opportunities for U.S. companies to land
and operate a submarine cable in that country. If the licensee is
unable to make either required showing or is notified that the
affiliation may otherwise harm the public interest pursuant to the
Commission's policies and rules under 47 U.S.C. 34 through 39 and
Executive Order No. 10530, dated May 10, 1954, then the Commission may
impose conditions necessary to address any public interest harms or may
proceed to an immediate authorization revocation hearing.
Note to paragraph (g)(2): The assessment of whether a
destination market offers effective opportunities for U.S. companies
to land and operate a submarine cable will be made under the
standard established in Rules and Policies on Foreign Participation
in the U.S. Telecommunications Market, Market Entry and Regulation
of Foreign-Affiliated Entities, IB Docket Nos. 97-142 and 95-22,
Report and Order and Order on Reconsideration, 12 FCC Rcd 23891,
23946 at paragraph 130, 62 FR 64741, December 9, 1997.
(h) All licensees are responsible for the continuing accuracy of
information provided pursuant to this section for a period of forty-
five (45) days after filing. During this period if the information
furnished is no longer accurate, the licensee shall as promptly as
possible, and in any event within ten (10) days, unless good cause is
shown, file with the Secretary in duplicate a corrected notification
referencing the FCC file numbers under which the original notification
was provided.
(i) A licensee that files a prior notification pursuant to
paragraph (a) of this section may request confidential treatment of its
filing, pursuant to Sec. 0.459 of this chapter, for the first twenty
(20) days after filing. Such a request must be made prominently in a
cover letter accompanying the filing.
Note to Sec. 1.768: The terms ``affiliated'' and ``foreign
carrier,'' as used in this section, are defined as in Sec. 63.09 of
this chapter except that the term ``foreign carrier'' also shall
include an entity that owns or controls a cable landing station in a
foreign market.
[FR Doc. 02-789 Filed 1-11-02; 8:45 am]
BILLING CODE 6712-10-P
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