Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | SCL-LIC-20000204-00003       |
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| Telefónica SAM USA, Inc.         | ) |                              |
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| And                              | * |                              |
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| Telefónica SAM de Puerto Rico,   | * |                              |
| Inc.                             | * |                              |
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| Application for a License to     | * |                              |
| Land and Operate in the United   | * |                              |
| States a Private Submarine Fiber |   |                              |
| Optic Cable Network Extending    | * |                              |
| Between Florida, Puerto Rico,    | * |                              |
| Brazil, Argentina, Chile, Peru,  | ) |                              |
| and Guatemala                    | * |                              |
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+----------------------------------+---+------------------------------+

**CABLE LANDING LICENSE**

**Adopted: August 9, 2000 Released: August 10, 2000**

Before the: Chief, Telecommunications Division, International Bureau

# Introduction

1.  In this Order, we grant the application, subject to certain
    conditions, of Telefónica SAM USA, Inc. (Telefónica SAM USA) and
    Telefónica SAM de Puerto Rico, Inc. (Telefónica SAM de Puerto Rico),
    (collectively "Applicants" or "Telefónica SAM,") under the Cable
    Landing License Act[^1] and Executive Order No. 10530,[^2] for
    authority to land and operate a private fiber optic submarine cable
    system to be called the South America-1 Cable Network (SAm-1 or
    "cable system"), extending between: Boca Raton, Florida; Isla Verde,
    Puerto Rico; Fortaleza, Brazil; Salvador, Brazil; Rio de Janeiro,
    Brazil; Santos, Brazil; Las Toninas, Argentina; Valparaiso, Chile;
    Arica, Chile; Lurin, Peru; Puerto San José, Guatemala; and Puerto
    Barrios, Guatemala.[^3] A map of the SAm-1 cable system is attached
    as Exhibit A. Applicants propose to operate the cable system on a
    non-common carrier basis. We find that Applicants have provided
    sufficient information under our rules to comply with the Cable
    Landing License Act and that it would serve the public interest to
    grant the cable landing license subject to the conditions discussed
    below.

**II. Application**

2.  According to the Application, as updated by Applicants' August 8,
    2000 letter,[^4] Telefónica SAM USA, a Florida corporation, and
    Telefónica SAM de Puerto Rico, a Puerto Rico corporation, through a
    series of intermediate holding companies, are indirect, wholly-owned
    subsidiaries of Telefónica, S.A. (Telefónica), a Spanish
    corporation. Telefónica SAM USA and Telefónica SAM Puerto Rico are
    wholly-owned by Telefónica SAM Uruguay, S.A. (Telefónica SAM
    Uruguay), a corporation organized under the laws of Uruguay.
    Telefónica SAM Uruguay is wholly-owned by Emergia Holding N.V.
    (Emergia), a Netherlands entity. Emergia, in turn, is wholly-owned
    by Telefónica, the dominant provider of domestic and international
    communications in Spain. Telefónica, through a series of
    100-percent-owned subsidiaries, will indirectly own the cable and
    each of the cable landing stations.[^5]

3.  As stated in the Application, Telefónica Internacional, S.A.
    (TISA)[^6] entered into a joint venture with Tyco International
    Ltd., a Bermuda corporation (Tyco), which provides for the transfer
    of 15 percent of the shares of Telefónica SAM Uruguay to Tyco Gamma
    Ltd. (Tyco Gamma), a Bermuda corporation and a wholly-owned
    subsidiary of Tyco, a diversified manufacturing company that is
    publicly traded on the New York Stock Exchange.[^7] In its letter of
    August 8, 2000, Telefónica SAM confirms that this transaction,
    through which Tyco Gamma purchased 15 percent of the outstanding
    shares of Telefónica SAM Uruguay, has closed into escrow pending
    European Union approval.[^8] Telefónica SAM states that, moreover,
    subject to future change, Tyco is expected to exchange its 15
    percent interest in Telefónica SAM Uruguay for six percent of the
    shares of Emergia, and notes also that Emergia expects to go public
    on NASDAQ with an initial public offering in the near future.[^9]
    Applicants indicate that they will notify the Commission once this
    transaction is completed.[^10]

4.  According to the Application, SAm-1 will be a 25,000 km long system
    (22,000 km of submarine cable and 3,000 km of terrestrial links
    across Argentina, Chile and Guatemala) in a self-healing ring
    architecture comprised of four fiber pairs ultimately capable of
    carrying 48 channels at 10 Gbps each. Initial capacity on the SAm-1
    system will be 40 Gbps. Multiple upgrades will be possible using
    dense wave division multiplexing (DWDM) up to 1.92 Tbps. Applicants
    anticipate having the system in service by November 30, 2000.[^11]
    SAm-1's undersea cable segments and their capacity are summarized in
    Exhibit B attached to this Order.

# Comments

5.  We placed the Application on public notice on February 18,
    2000.[^12] Tyco Submarine Systems Ltd. (Tyco Submarine) filed
    comments in support of the application on March 17, 2000.[^13]
    Pursuant to Section 1.767(b) of the Commission's rules,[^14] the
    Cable Landing License Act, and Executive Order No. 10530, we
    informed the Department of State of the Application.[^15] The
    Department of State, after coordinating with the National
    Telecommunications and Information Administration and the Department
    of Defense, stated that it has no objection to the issuance of the
    cable landing license.[^16]

**IV. Discussion**

6.  Section 35 of the Cable Landing License Act provides that licenses
    may be granted upon "such terms as shall be necessary to assure just
    and reasonable rates and service in the operation and use of cables
    so licensed."[^17] In the *Foreign Participation Order*,[^18] the
    Commission adopted a presumption in favor of granting applications
    by applicants that are affiliated with carriers in destination
    markets that are World Trade Organization (WTO) members. The
    Commission observed that if a particular application presents
    unusual risks to competition, the Commission can address most
    potential problems by imposing conditions on the license.[^19] Each
    of the five countries in which the proposed cable would land where
    Applicants have foreign carrier affiliations as described below is a
    WTO member.

7.  Applicants list the following foreign carriers with whom they are
    affiliated in the countries where they propose to operate the SAm-1
    cable. Applicants have certified that they are controlled by
    Telefónica, which controls foreign carriers in Argentina, Brazil,
    Chile, Guatemala, and Peru, all destination countries for
    SAm-1.[^20] In three of these countries, Argentina, Chile, and Peru,
    the foreign carriers possess market power as more fully-described
    below:

    \(a\) [Argentina]{.underline}: Telefónica indirectly owns 71.5
    percent of Telefónica de Argentina, S.A. (TASA), which provides
    telephone service throughout Argentina. TASA also owns 99.9 percent
    of Telefónica Larga Distancia de Argentina, which provides
    international services in Argentina. TISA manages TASA pursuant to a
    management agreement.[^21]

    \(b\) [Brazil]{.underline}: TISA holds a controlling interest in the
    following three local wireless carriers:

    \(1\) Telerj Celular S.A. (Rio de Janeiro); (2) Telest Celular S.A.
    (Spirito Santo); and (3) Celular CRT S.A. (previously a part of the
    local wireline carrier, Companhia Riograndense de Telecomunicações
    S.A.). Telefónica indirectly owns 85.6 percent of Telesp S.A., which
    provides local and domestic long distance services, and 86 percent
    of Tele Sudeste Celular.[^22]

    \(c\) [Chile]{.underline}: Telefónica International Holding (TI
    Holding) owns approximately 43.64 percent of Compañia Teléfonos de
    Chile (CTC). This approximately 43.64 percent ownership of CTC
    results from TI Holding's 100 percent ownership of Telefónica Chile
    Holding B.V., which in turn owns 100 percent of CTC's immediate
    parent, Telefónica Internacional de Chile, S.A., which owns 43.64
    percent of CTC. CTC provides local exchange, long distance and
    international services.[^23]

    \(d\) [Guatemala]{.underline}: TISA holds a controlling 51 percent
    interest, through TCG Holdings S.A., in (1) Tele Escucha S.A., which
    provides paging services in Guatemala; and (2) Telefónica
    CentroAmerica Guatemala S.A., which provides long distance and
    wireless services in Guatemala.[^24]

> \(e\) [Peru]{.underline}: Telefónica indirectly owns 93.2 percent of
> Telefónica del Peru, S.A. (TDP), a provider of local, long distance
> and international services in Peru. Telefónica Peru Holding, S.A.
> controls a majority of the TDP Board and TISA has a management
> contract to operate TDP.[^25]

8.  Because the proposed cable's foreign carrier affiliates are in
    countries that are WTO members, there is a presumption in favor of
    granting Telefonica SAM's application to land and operate the SAm-1
    cable in the United States.[^26] We find no reason, based on the
    record before us, to rebut this presumption. However, as discussed
    below, where these affiliations are with dominant carriers, we
    imposed certain conditions designed to address possible harms to
    competition.

9.  The Commission allows submarine cables to be operated on either a
    common carrier or non-common carrier basis,[^27] and requires a
    cable landing license applicant to indicate under which of these two
    regulatory categories it seeks to operate.[^28] Applicants seek
    authorization to operate SAm-1 on a non-common carrier basis.[^29]
    As a non-common carrier cable, SAm-1 would not be required to make
    its capacity available indifferently to the user public.

10. The Commission's private submarine cable policy is intended to
    promote competition in the provision of international transmission
    facilities.[^30] In determining whether a cable system qualifies to
    be operated on a non-common carrier basis, the Commission uses the
    two-part test set forth by the United States Court of Appeals for
    the District of Columbia Circuit in *NARUC I.*[^31] Pursuant to this
    policy, the Commission has authorized non-common carrier cables
    where: 1) there is no legal compulsion to serve the public
    indifferently; and 2) there are no reasons implicit in the nature of
    the operations of the submarine cable system to expect an
    indifferent holding-out to the eligible user public.[^32]

11. In applying the first prong of *NARUC I* to submarine cable
    authorizations, the Commission has stated that there will be no
    legal compulsion to serve the public indifferently where there is no
    public interest reason to require the facilities to be offered on a
    common carrier basis.[^33] This public interest analysis has focused
    on the availability of alternative facilities,[^34] although the
    Commission has stated it is not limited to that reasoning.[^35]
    Where there are sufficient alternatives, the Commission has found
    that the public interest does not require the licensee to offer
    capacity on the proposed cable on a common carrier basis, but
    rather, in those circumstances, the public interest would be served
    by allowing a submarine cable to be operated on a non-common carrier
    basis.[^36]

12. If the Commission finds that there is no public interest reason to
    require the submarine cable facilities to be offered on a common
    carrier basis, then, under the second prong of the *NARUC I* test,
    the Commission considers whether there is reason to expect an
    indifferent holding-out by the applicant to the eligible user
    public. If the Commission finds that an applicant has shown that it
    will make individualized decisions whether and on what terms to
    provide service and will not undertake to serve all customers
    indifferently, the Commission has held that the second prong of the
    test has been met.[^37]

13. Notwithstanding a Commission decision not to require a submarine
    cable system to be operated on a common carrier basis, the
    Commission retains the authority to impose common carrier or
    common-carrier-like obligations on the operations of that cable
    system, if the public interest so requires.[^38] Furthermore, the
    Commission has always maintained the authority subsequently to
    classify facilities as common carrier facilities subject to Title II
    of the Communications Act if the public interest requires that the
    facilities be offered to the public indifferently.[^39]

14. In this case, with respect to the second prong of the test,
    Applicants propose to operate the SAm-1 network on a non-common
    carrier basis and will not hold themselves out to serve the public
    indifferently, but will make individualized decisions in particular
    cases whether and on what terms to deal with prospective
    customers.[^40] Based on these representations, we conclude that
    there is no reason to expect an indifferent holding-out to the
    eligible user public.

15. With respect to the first prong of the test, Applicants assert that
    there are sufficient existing and planned facilities on the route to
    prevent them from exercising market power in offering services to
    the public.[^41] Applicants assert that there are a number of
    planned common carrier and private cable systems in the region,[^42]
    including the following cables extending to one or more of the
    countries other than the United States in which SAm-1 would
    land: (1) Americas-I (authorized on a common carrier basis to serve
    the U.S. Mainland, the U.S. Virgin Islands, Brazil, Trinidad, and
    Venezuela);[^43] (2) Americas-II (authorized on a common carrier
    basis to serve Florida, Puerto Rico, the U.S. Virgin Islands,
    Martinique, Curacao, Trinidad, Venezuela, French Guiana, and
    Brazil);[^44] (3) ARCOS-1 (authorized on a non-common carrier basis
    to serve the U.S. Mainland, Puerto Rico, the Bahamas, the Dominican
    Republic, the Turks and Caicos Islands, Mexico, Belize, Guatemala,
    Honduras, Nicaragua, Costa Rica, Panama, Colombia, Venezuela and
    Curacao);[^45] (4) Atlantica-I (authorized on a non-common carrier
    basis to serve the U.S., Venezuela, Brazil and Bermuda);[^46] (5)
    Pan American (authorized on a common carrier basis to serve the U.S.
    Virgin Islands, Aruba, Venezuela, Colombia, Panama, Ecuador, Peru,
    and Chile); [^47] (6) Project Oxygen (authorized on a non-common
    carrier basis to serve, among other landing points, Puerto Rico,
    Colombia, Venezuela, Brazil, Uruguay, Argentina, Chile, and
    Peru);[^48] and (7) South American Crossing or SAC (authorized on a
    non-common carrier basis to serve the U.S. Virgin Islands, Brazil,
    Argentina, Chile, Peru, Colombia, and Panama).[^49]

16. We find that the public interest would be served by the provision of
    additional capacity on the routes proposed to be served by SAm-1,
    particularly on the U.S.-Argentina, U.S.-Chile, and U.S.-Peru
    routes. Currently, only one U.S. cable, Pan American, directly
    serves Chile and Peru, and no U.S. cable directly serves Argentina.
    As noted above, we recently authorized SAC Landing Corp. to land and
    operate in the United States the South American Crossing Cable, a
    digital submarine cable system that will extend between the United
    States and Argentina, Brazil, Chile, Colombia, Panama, and
    Peru.[^50]

17. In its recent Notice of Proposed Rulemaking addressing competition
    in the submarine cable market, the Commission noted the importance
    of promoting the expansion of capacity and facilities-based
    competition, which will result in innovation and lower prices for
    U.S. consumers of international communications services.[^51] At the
    same time, there is risk of competitive harm to U.S. consumers and
    to competitive providers, including telecommunications service
    providers and information service providers, on the U.S.-Argentina,
    U.S.-Chile, and U.S.-Peru routes due to Telefónica SAM's affiliation
    with dominant foreign carriers and foreign cable landing stations in
    those foreign destinations.

18. Telefónica SAM's U.S. affiliate, TLD, has been found to be subject
    to the Commission's dominant carrier regulations on the U.S.-Chile
    and U.S.-Peru routes because of these same foreign
    affiliations.[^52] The Telefónica SAM Applicants, like their U.S.
    affiliate TLD, are entities under the control of Telefónica, the
    dominant telecommunications provider in Spain that also owns and
    controls foreign carriers and the foreign cable landing stations in
    Argentina, Chile, and Peru. If Telefónica SAM had applied to land
    and operate SAm-1 on a common carrier basis, under the Commission's
    existing rules and precedent, we would apply the Commission's
    dominant carrier regulations to Telefónica SAM for three of the five
    destination markets: Argentina, Chile, and Peru. On these routes, we
    would impose dominant carrier regulation designed to detect and
    deter anticompetitive behavior due to Telefónica SAM's affiliation
    with the foreign carriers that have market power in the relevant
    markets, including anticompetitive behavior with respect to access
    to cable landing stations and backhaul facilities, in each of these
    three countries. We are concerned about terms for provisioning
    facilities, repairs, and interconnection that might be detrimental
    to unaffiliated entities, including telecommunications service
    providers and information service providers, and U.S. consumers.
    Specifically, we are concerned that: (1) the dominant foreign
    carriers and foreign cable landing station owners might favor
    Telefónica SAM, TLD, or other affiliates such as Telefónica's
    information service provider; and (2) Telefónica SAM might favor its
    affiliates. We conclude, however, that we can address these concerns
    through a limited set of conditions.[^53]

19. In the Telefónica SAM August 8, 2000 Letter, in which Applicants
    provided additional information as described above, Applicants also
    indicated that they would not oppose certain conditions for
    operation of the SAm-1 cable on the U.S.-Argentina, U.S.-Chile, and
    U.S.-Peru routes, in response to concerns of the International
    Bureau due to Applicants' affiliation with dominant carriers and
    foreign landing stations in these three destination countries.[^54]

20. *Reporting Conditions.* Section 63.10(c) of the Commission's rules
    imposes requirements on common carriers classified as dominant for
    the provision of particular services on particular routes. Among
    other things, Section 63.10(c) requires a dominant carrier to file
    quarterly reports summarizing: (1) the provisioning and maintenance
    of all telecommunications network facilities and services procured
    from its foreign carrier affiliate or from an allied foreign
    affiliate;[^55] and (2) the status of circuit activation, in the
    format set out by the Section 43.82 annual circuit status
    manual.[^56] Section 63.21(h) of the Commission's rules requires
    carriers regulated as dominant to provide the Commission with
    certain information within 30 days after conveyance of transmission
    capacity on submarine cables.[^57] These conditions are designed to
    detect and deter anticompetitive behavior in the U.S. market by
    foreign carriers and their affiliated U.S. carriers by requiring
    these U.S. carriers to file reports that allow the Commission and
    others to determine whether they receive favorable treatment at the
    expense of unaffiliated U.S. carriers and U.S. consumers.[^58]

21. Applicants have agreed to a condition under which they would provide
    the Commission with the following three reports:[^59]

> \(1\) Quarterly circuit status reports (within 90 days from the end of
> each calendar quarter) in the format set out by the Section 43.82
> annual circuit status manual;
>
> \(2\) Quarterly reports (within 90 days from the end of each calendar
> quarter) summarizing the provisioning and maintenance of all network
> facilities and services procured from Applicants' dominant affiliates
> and foreign cable landing stations in Argentina, Chile, and Peru,
> including, but not limited to those services procured on behalf of
> customers or any joint venture in which Applicants and any dominant
> affiliates participate. This report will contain the information
> required in Section 63.10(c)(4) of the Commission's Rules, 47 C.F.R. §
> 63.10(c)(4); and

\(3\) Reports (within 30 days after conveyance of transmission capacity
on the SAm-1 cable system) identifying the party to whom capacity was
conveyed, and the amount and price of the capacity conveyed. [^60]

22. These reports are designed to help detect and deter possible
    anticompetitive behavior in the provisioning, maintenance,
    activation, and conveyance of transmission capacity on the routes
    between the United States and Argentina, Chile, and Peru.

23. *No Special Concessions Condition.* Section 63.14 of the
    Commission's rules, prohibits any U.S. carrier authorized to provide
    international service from agreeing to accept special concessions
    from any foreign carrier with respect to any U.S. international
    route where the foreign carrier possesses sufficient market power at
    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.[^61] This rule is designed to prevent the leveraging of
    foreign market power into the U.S. international services
    market.[^62]

24. Applicants state that they are willing to commit not to either
    directly or indirectly accept from nor offer to an affiliated
    dominant carrier or foreign landing station in Argentina, Chile, or
    Peru a "special concession," as that term is defined in Section
    63.14(b) of the Commission's rules, 47 C.F.R. § 63.14(b).[^63]

25. This condition is designed to address the ability and incentive of
    affiliated service providers and cable station operators at both the
    U.S. and foreign ends of SAm-1 to engage jointly in anticompetitive
    conduct to the detriment of U.S. consumers.

26. *Availability of Capacity and Access to Backhaul Conditions*. In its
    Section 214 authorizations for common carrier cables, the Commission
    routinely orders the licensees to make available half-interests in
    capacity to such present and future U.S. carriers as may be
    authorized by the Commission to acquire such capacity.[^64]

27. Applicants state that they will make capacity on the SAm-1 cable
    available, on a nondiscriminatory basis, to all potential customers,
    including all information service providers, licensed carriers, and
    others.[^65] Applicants also state that their standard cable
    capacity lease agreement allows for unrestricted resale or transfer
    of cable capacity.[^66] We adopt as conditions to the cable landing
    license: a requirement that Applicants make capacity on the SAm-1
    cable available, on a nondiscriminatory basis, to all customers,
    including all information service providers, licensed carriers, and
    others; and a requirement that Applicants' standard cable capacity
    lease agreement allow for unrestricted resale or transfer of cable
    capacity.

28. Applicants also state that Telefónica SAm will provide backhaul
    itself in Argentina, Chile, and Peru.[^67] Applicants state further
    that this backhaul capacity has been acquired from their affiliates
    on an arms-length basis, and that Applicants are negotiating with
    third parties to acquire backhaul facilities.[^68] Applicants also
    state that they are committed to allowing unaffiliated parties to
    provide backhaul capacity and that the terms and conditions that
    will govern the lease of cable capacity will permit, on a
    nondiscriminatory basis, collocation space in the cable landing
    stations as well as access to cable capacity and backhaul.[^69]
    Applicants also agree to provide the Commission with their standard
    cable capacity lease agreement.[^70] We adopt as conditions to the
    cable landing license: a requirement that Applicants allow
    unaffiliated parties to provide backhaul capacity and permit, on a
    nondiscriminatory basis, collocation space in the cable landing
    stations as well as access to cable capacity and backhaul; and a
    requirement that Applicants provide the Commission with their
    standard cable capacity lease agreement.

29. These safeguards regarding capacity and backhaul should help ensure
    that Applicants make capacity on SAm-1 available to unaffiliated
    entities on a nondiscriminatory basis.

30. The conditions agreed to by Applicants, along with the conditions
    regularly attached to the grant of non-common carrier cables, should
    serve to address our concerns that Telefónica SAM's foreign
    affiliates with market power in Argentina, Chile, and Peru might
    favor SAm-1 or affiliated telecommunications and information service
    providers on these routes, or that Telefónica SAM might favor its
    affiliates to the detriment of unaffiliated U.S. service providers.
    We note that Applicants may propose the lifting of one or more of
    the conditions specific to the SAm-1 cable system (in ordering
    clauses 13 through 18) based on a showing that the predicates for
    the conditions have changed materially.

31. We conclude that Applicants will not offer capacity in SAm-1 to the
    public on a common carrier basis and that the public interest does
    not require that they do so. Accordingly, we conclude that it is
    appropriate to license SAm-1 on a non-common carrier basis, but with
    certain common-carrier-like conditions designed to detect and deter
    anticompetitive activity detrimental to U.S. consumers. If the
    public interest should require, we retain the authority to modify
    these conditions and to classify these facilities as common carrier
    facilities subject to Title II of the Communications Act. We also
    find that Applicants will not provide a telecommunications service
    for a fee to such class of users as to be "effectively available
    directly to the public" and thus will not be "telecommunications
    carriers" under the 1996 Act.[^71]

## V. Ownership and Landing Points {#v.-ownership-and-landing-points .unnumbered}

32. Applicants have provided the ownership information required by
    Sections 1.767(a)(6) and 63.18 of the Commission's rules.[^72]
    According to the Application, as updated by Applicants' August 8,
    2000 letter, Telefónica SAM USA and Telefónica SAM de Puerto Rico,
    through a series of intermediate holding companies, are indirect,
    wholly-owned subsidiaries of Telefónica. Telefónica SAM USA and
    Telefónica SAM Puerto Rico are wholly-owned by Telefónica SAM
    Uruguay. Telefónica SAM Uruguay is wholly-owned by Emergia. Emergia,
    in turn, is wholly-owned by Telefónica, the dominant provider of
    domestic and international communications in Spain. Telefónica,
    through a series of 100-percent-owned subsidiaries, will indirectly
    own the cable and each of the cable landing stations.[^73]

33. Applicants have stated that the SAm-1 cable will land at Boca Raton,
    Florida; Isla Verde, Puerto Rico; Fortaleza, Brazil; Salvador,
    Brazil; Rio de Janeiro, Brazil; Santos, Brazil; Las Toninas,
    Argentina; Valparaiso, Chile; Arica, Chile; Lurin, Peru; Puerto San
    José, Guatemala; and Puerto Barrios, Guatemala. We find Applicants'
    description of the likely landing points satisfies Section 1.767 of
    the Commission's rules.[^74] Section 1.767(a) of the Commission's
    rules permits applicants in an initial application to provide a
    general description of the landing points.[^75] Applicants must file
    a specific description of any landing point, including a map, no
    later than 90 days prior to construction at that landing point. The
    Commission will give public notice of the filing of the specific
    description, and grant of the license will be considered final with
    respect to that landing point unless the Commission notifies
    Applicants to the contrary no later than 60 days after receipt of
    the specific description of the landing point.

**VI. Environmental Impact**

34. The Commission has found that the construction of new submarine
    cable systems, individually and cumulatively, will not have a
    significant effect on the environment and therefore should be
    expressly excluded from our procedures implementing the National
    Environmental Policy Act of 1969.[^76] Therefore, Applicants are not
    required to submit an environmental assessment, and this application
    is categorically excluded from environmental processing.

# Conclusion

35. We grant Telefónica SAM USA and Telefónica SAM Puerto Rico's
    Application for authority to land and operate a non-common carrier
    fiber optic submarine cable extending between Boca Raton, Florida;
    Isla Verde, Puerto Rico; Fortaleza, Brazil; Salvador, Brazil; Rio de
    Janeiro, Brazil; Santos, Brazil; Las Toninas, Argentina; Valparaiso,
    Chile; Arica, Chile; Lurin, Peru; Puerto San José, Guatemala; and
    Puerto Barrios, Guatemala, subject to the conditions listed below.

# Ordering Clauses

36. Consistent with the foregoing and pursuant to the Cable Landing
    License Act and Executive Order 10530, we hereby GRANT AND ISSUE
    Applicants a license to land and operate the SAm-1 Cable Network
    optical fiber submarine cable system (consisting of four fiber pairs
    initially operating at 40 Gbps in a self-healing ring configuration,
    expandable to 48 channels at 10 Gbps each, for a total design
    capacity of 480 Gbps, and with multiple upgrade capability using
    dense wave division multiplexing up to 1.92 terabits per second)
    extending between landing points at cable stations in Boca Raton,
    Florida; Isla Verde, Puerto Rico; Santos, Brazil; Rio de Janeiro,
    Brazil; Salvador, Brazil; Fortaleza, Brazil; Las Toninas, Argentina;
    Arica, Chile; Lurin, Peru; Puerto San José, Guatemala; and Puerto
    Barrios, Guatemala. This grant is subject to all rules and
    regulations of the Federal Communications Commission; any treaties
    or conventions relating to communications to which the United States
    is or may hereafter become a party; any action by the Commission or
    the Congress of the United States rescinding, changing, modifying or
    amending any rights accruing to any person hereunder; and the
    following conditions:

\(1\) The location of the cable system within the territorial waters of
the United States, its territories and possessions, and upon its shore
shall be in conformity with plans approved by the Secretary of the Army,
and the cable shall be moved or shifted by the Licensees at their
expense upon the 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 or improvement of harbors for
navigational purposes;

\(2\) The Licensees shall at all times comply with any requirements of
U.S. government authorities regarding the location and concealment of
the cable facilities, buildings, and apparatus for the purpose of
protecting and safeguarding the cable from injury or destruction by
enemies of the United States;

\(3\) The Licensees or any persons or companies controlling them,
controlled by them, or under direct or indirect common control with them
do not enjoy and shall not acquire any right to handle traffic on a
common carrier basis to or from the United States, its territories, or
its possessions unless such service be authorized by the Commission
pursuant to Section 214 of the Communications Act, as amended;

\(4\) The Licensees or any persons or companies controlling them,
controlled by them, or under direct or indirect common control with them
shall not acquire or enjoy any right for the purpose of handling or
interchanging traffic to or from the United States, its territories, or
its possessions to land, connect, or operate cables or land lines, to
construct or operate radio stations, or to interchange traffic, that is
denied to any other United States company by reason of any concession,
contract, understanding, or working arrangement to which the Licensees
or any persons controlling them, controlled by them, or under direct or
indirect common control with them are parties;

> \(5\) Neither this license nor the rights granted herein shall be
> transferred, assigned, or in any manner either voluntarily or
> involuntarily disposed of or disposed of indirectly by transfer of
> control of the Licensees to any persons, unless the Commission shall
> give prior consent in writing;

\(6\) The Licensees shall notify the Commission in writing of the
precise locations at which the cable will land in Boca Raton, Florida;
Isla Verde, Puerto Rico; Fortaleza, Brazil; Salvador, Brazil; Rio de
Janeiro, Brazil; Santos, Brazil; Las Toninas, Argentina; Valparaiso,
Chile; Arica, Chile; Lurin, Peru; Puerto San José, Guatemala; and Puerto
Barrios, Guatemala. Such notification with respect to any given landing
location shall occur no later than 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 this license will
be considered final with respect to that landing location unless the
Commission issues a notice to the contrary no later than 60 days after
receipt of the specific description;

\(7\) The Commission reserves the right to require the Licensees to file
an environmental assessment or environmental impact statement should it
determine that the landing of the cable at those locations and
construction of necessary cable landing stations would significantly
affect the environment within the meaning of Section 1.1307 of the
Commission\'s procedures implementing the National Environmental Policy
Act of 1969; this license is subject to modification by the Commission
upon its review of any environmental assessment or environmental impact
statement that it may require pursuant to its rules;

\(8\) 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, the Commission
reserves the right to impose common carrier or common-carrier-like
regulation on the operations of the cable system if it finds that the
public interest so requires;

\(9\) The Licensees 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 this license;

\(10\) This 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 authorizations;

\(11\) The Licensees shall notify the Commission in writing of the date
on which the cable is placed in service, and this license shall expire
25 years from such date, unless renewed or extended upon proper
application, and, upon expiration of this license, all rights granted
under it shall be terminated;

\(12\) The terms and conditions upon which this license is given shall
be accepted by the Licensees by filing a letter with the Secretary,
Federal Communications Commission, Washington, D.C. 20554, within 30
days of the release of the cable landing license;

\(13\) The Licensees shall make capacity on the SAm-1 cable available,
on a nondiscriminatory basis, to all customers, including all
information service providers, licensed carriers, and others. The
Licensees' standard cable capacity lease agreement shall allow for
unrestricted resale or transfer of cable capacity;

\(14\) The Licensees shall allow unaffiliated parties to provide
backhaul capacity and shall permit, on a nondiscriminatory basis,
collocation space in the cable landing stations as well as access to
cable capacity and backhaul. The Licensees shall also provide the
Commission with their standard cable capacity lease agreement;

\(15\) The Licensees shall not either directly or indirectly accept from
nor offer to an affiliated dominant carrier or foreign landing station
in Argentina, Chile, or Peru a "special concession," as that term is
defined in Section 63.14(b) of the Commission's rules, 47 C.F.R. §
63.14(b); and

\(16\) The Licensees shall provide the Commission with the following
three reports:

\(a\) Quarterly circuit status reports (within 90 days from the end of
each calendar quarter) in the format set out by the Section 43.82 annual
circuit status manual;

\(b\) Quarterly reports (within 90 days from the end of each calendar
quarter) summarizing the provisioning and maintenance of all network
facilities and services procured from the Licensees' dominant affiliates
and foreign cable landing stations in Argentina, Chile, and Peru,
including, but not limited to those services procured on behalf of
customers or any joint venture in which the Licensees and any dominant
affiliates participate; this report will contain the information
required in Section 63.10(c)(4) of the Commission's Rules, 47 C.F.R. §
63.10(c)(4); and

\(c\) Reports (within 30 days after conveyance of transmission capacity
on the SAm-1 cable system) identifying the party to whom capacity was
conveyed, and the amount and price of the capacity conveyed.

37. This order is issued under Section 0.261 of the Commission's rules,
    47 C.F.R. § 0.261, and is effective upon adoption. 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

Rebecca Arbogast

Chief, Telecommunications Division

> International Bureau

**Exhibit A**

![](media/image1.png){width="6.499305555555556in"
height="8.404166666666667in"}

30. **Exhibit B**

    **SAm-1 Undersea Cable Segments and their Capacity**

+-------------------------------------+---------------+---------------+
| Undersea Line Segment               | Fiber Pairs   | Capacity per  |
|                                     |               |               |
|                                     |               | Fiber Pair    |
|                                     |               |               |
|                                     |               | (Gbps)        |
+-------------------------------------+---------------+---------------+
| Santos, Brazil to Las Toninas,      | 4             | 480           |
| Argentina                           |               |               |
+-------------------------------------+---------------+---------------+
| Rio de Janeiro, Brazil to Santos,   | 2             | 480           |
| Brazil                              |               |               |
+-------------------------------------+---------------+---------------+
| Salvador, Brazil to Rio De Janeiro, | 2             | 480           |
| Brazil                              |               |               |
+-------------------------------------+---------------+---------------+
| Fortaleza, Brazil to Salvador,      | 2             | 480           |
| Brazil                              |               |               |
+-------------------------------------+---------------+---------------+
| Fortaleza, Brazil to Santos, Brazil | 2             | 480           |
+-------------------------------------+---------------+---------------+
| Isla Verde, Puerto Rico to          | 4             | 480           |
| Fortaleza, Brazil                   |               |               |
+-------------------------------------+---------------+---------------+
| Boca Raton, Florida to Isla Verde,  | 4             | 480           |
| Puerto Rico                         |               |               |
+-------------------------------------+---------------+---------------+
| Puerto Barrios, Guatemala to Boca   | 4             | 480           |
| Raton, Florida                      |               |               |
+-------------------------------------+---------------+---------------+
| Lurin, Peru to Puerto San José,     | 4             | 480           |
| Guatemala                           |               |               |
+-------------------------------------+---------------+---------------+
| Arica, Chile to Lurin, Peru         | 4             | 480           |
+-------------------------------------+---------------+---------------+
| Valparaiso, Chile to Arica, Chile   | 4             | 480           |
+-------------------------------------+---------------+---------------+

[^1]: An Act Relating to the Landing and Operation of Submarine Cables
    in the United States, 47 U.S.C. §§ 34-39 (Cable Landing License
    Act).

[^2]: Exec. Ord. No. 10530 *reprinted as amended in* 3 U.S.C. § 301.

[^3]: *See* Telefónica SAM USA, Inc. and Telefónica SAM de Puerto Rico,
    Inc., Application to Land and Operate in the United States a Private
    Fiber Optic Cable Network, filed Feb. 4, 2000 (Application).
    Applicants state that they may wish to add Colombia as a landing
    point in the future, and will seek authority to do so at that time.
    *See* Application at 2 n.2.

[^4]: Letter from Alfred M. Mamlet and Colleen A. Sechrest, Attorneys
    for Applicants, to Rebecca Arbogast, International Bureau, Federal
    Communications Commission (Aug. 8, 2000) (Telefónica SAM August 8,
    2000 Letter), updating information regarding Applicants' ownership
    structure and the ownership structure of their foreign affiliates.

[^5]: *See* Application at 8-9; Telefónica SAM August 8, 2000 Letter at
    4.

[^6]: TISA is a wholly-owned subsidiary of Telefónica that was, until
    July 24, 2000, the parent of Telefónica SAM Uruguay. On July 24,
    2000, TISA transferred its interest in Telefónica SAM Uruguay to
    Telefónica, which in turn contributed TISA's shares of Telefónica
    SAM Uruguay to Emergia. *See* Telefónica SAM August 8, 2000 Letter
    at 4.

[^7]: *See* Application at 9-10.

[^8]: *See* Telefónica SAM August 8, 2000 Letter at 4.

[^9]: *See* *id.*

[^10]: *See* Application at 9.

[^11]: *See* *id.* at 2, 4.

[^12]: *See Non Streamlined International Applications Accepted for
    Filing*, Public Notice, Report No. TEL-00189NS (rel. Feb. 18, 2000).

[^13]: Comments of Tyco Submarine Systems Ltd., File No.
    SCL-LIC-20000204-00003, filed March 17, 2000.

[^14]: 47 C.F.R. § 1.767(b).

[^15]: Letter from Rebecca Arbogast, Chief, Telecommunications Division,
    International Bureau, Federal Communications Commission, to Steven
    Lett, Deputy U.S. Coordinator, Office of International
    Communications and Information Policy, U.S. Department of State
    (Feb. 25, 2000).

[^16]: Letter from Malcolm R. Lee, United States Coordinator,
    International Communications and Information Policy, U.S. Department
    of State, to Donald Abelson, Chief, International Bureau, Federal
    Communications Commission (Aug. 3, 2000).

[^17]: 47 U.S.C. §35.

[^18]: *Rules and Policies on Foreign Participation in the U.S.
    Telecommunications Market,* IB Docket No. 97-142, *Market Entry and
    Regulation of Foreign Affiliated Entities*, IB Docket No. 95-22,
    Report and Order and Order on Reconsideration, 12 FCC Rcd 23891
    (1997), *recon. pending* (*Foreign Participation Order).*

[^19]: *Id.*, 12 FCC Rcd at 23934, para. 94.

[^20]: *See* Application at 13.

[^21]: *See id*. at 11; Telefónica SAM August 8, 2000 Letter at 4.

[^22]: *See* Application at 11, n.13, 12; Telefónica SAM August 8, 2000
    Letter at 4.

[^23]: *See* Application at 12.

[^24]: *See* *id*.

[^25]: *See id*. at 11, n.13, 13; Telefónica SAM August 8, 2000 Letter
    at 4.

[^26]: *See* Foreign Participation Order, 12 FCC Rcd at 23932-35, paras.
    87-96 (concluding that, where an applicant for a submarine cable
    landing license is a foreign carrier, or affiliated with a foreign
    carrier, that has market power in a WTO member where the cable
    lands, the application is evaluated under a strong presumption that
    it should be granted).

[^27]: *See, e.g., Tel-Optik Limited,* Memorandum Opinion and Order, 100
    FCC 2d 1033 (1985)(*Tel-Optik Order)*(espousing the Commission's
    private submarine cable policy). As a common carrier, a cable
    landing licensee is subject to the requirements of Title II of the
    Communications Act, 47 U.S.C. § 201 *et seq.* The obligations of a
    common carrier include, among other things, offering facilities and
    services at reasonable rates on a nondiscriminatory basis, 47 U.S.C.
    §§ 201, 202. Common carriers also are subject to the complaints
    process set forth in Section 208 of the Communications Act, 47
    U.S.C. § 208.

[^28]: 47 C.F.R. § 1.767(a)(6).

[^29]: *See* Application at 2, 6-8.

[^30]: *See Tel-Optik Order*, 100 FCC 2d at 1040-42, paras. 18-20,
    1046-48, paras. 27-31.

[^31]: *National Association of Regulatory Utility Commissioners v.
    FCC*, 525 F.2d 630, 642 (D.C. Cir. 1976)(*NARUC I*), *cert. denied,*
    425 U.S. 992 (1976). The D.C. Circuit recently affirmed the
    continuing use of the *NARUC I* test in the context of reviewing an
    undersea cable license in light of the addition of the terms
    "telecommunications carrier" and "telecommunications service" in the
    Communications Act as part of the Telecommunications Act of 1996.
    *See Virgin Islands Telephone Corporation v. FCC,* 198 F. 3d 921
    (D.C. Cir. 1999).

[^32]: *See* *NARUC I,* 525 F.2d at 642. *See also AT&T Corp. et. al.,
    Joint Application for a License to Land and Operate a Submarine
    Cable Network Between the United States and Japan*, File No.
    SCL-LIC-19981117-00025, Cable Landing License, 14 FCC Rcd 13066,
    13080, para. 38 (1999) (*Japan-U.S. Order)*; *Cable & Wireless PLC,
    Application for a License to Land and Operate in the United States a
    Private Submarine Fiber Optic Cable Extending Between the United
    States and the United Kingdom*, File No. SCL-96-005, Cable Landing
    License, 12 FCC Rcd 8516, 8520-23 paras. 11-17 (1997) (*Cable &
    Wireless UK Cable Order*).

[^33]: *See, e.g.*, *Japan-U.S. Order,* 14 FCC Rcd at 13080, para. 39;
    *Cable & Wireless UK Cable Order*, 12 FCC Rcd at 8522, paras. 14-15.

[^34]: *See, e.g., Cable & Wireless UK Cable Order*, 12 FCC Rcd at
    8522-23, paras. 15-16; *Tel-Optik Order*, 100 FCC 2d at 1047, para.
    29*.*

[^35]: *Japan-U.S. Order*, 14 FCC Rcd at 13080, para. 39; *Review of
    Commission Consideration of Applications Under the Cable Landing
    License Act,* IB Docket No. 00-106, Notice of Proposed Rulemaking,
    FCC 00-210 at para. 65 (rel. June 22, 2000)(*Cable Landing License
    NPRM)*.

[^36]: *Cable Landing License NPRM* at para. 65*.* *See also Cable &
    Wireless UK Cable Order*, 12 FCC Rcd at 8522-23, paras. 15-17.

[^37]: *See, e.g., Cable Landing License NPRM* at para. 66.

[^38]: *See, e.g., id.* at para. 67; *Japan-U.S. Order*, 14 FCC Rcd at
    13080-81, para. 40; *ARCOS-1 USA, INC., Application for a License to
    Land and Operate in the United States a Private Fiber Optic
    Submarine Cable System Extending between the United States Mainland,
    the Bahamas, the Turks and Caicos Islands, the Dominican Republic,
    Puerto Rico, Curacao, Venezuela, Colombia, Panama, Costa Rica,
    Nicaragua, Honduras, Guatemala, Belize and Mexico*, File No.
    SCL-LIC-19981222-00032, Cable Landing License, 14 FCC Rcd 10597 at
    para. 7 (TD/IB 1999) (*ARCOS-1 Order*); *MAC LANDING CORP.,
    Application for a License to Land and Operate in the United States a
    Private Fiber Optic Submarine Cable System Extending Between the
    United States Mainland and the U.S. Virgin Islands*, File Nos.
    SCL-LIC-19981030-00023, SCL-LPN-19981106-00027, Cable Landing
    License, 14 FCC Rcd 3981 at para. 8 (TD/IB, 1999); *PAC Landing
    Corp., Application for a License to Land and Operate in the United
    States a Private Fiber Optic Submarine Cable System Extending Among
    the United States Mainland, Mexico, Panama, Venezuela and the U.S.
    Virgin Islands*, File Nos. SCL-LIC-19981103-00022,
    SCL-LPN-19990129-00001, Cable Landing License, 14 FCC Rcd 3989,
    para. 8 (TD/IB 1999) (*PAC Cable Order*).

[^39]: *See, e.g., Cable Landing License NPRM* at para. 67; *Foreign
    Participation Order*, 12 FCC Rcd at 23934, para. 95; *Cable &
    Wireless UK Cable Order*, 12 FCC Rcd at 8530, para. 39.

[^40]: *See* Application at 8.

[^41]: *See* *id.* at 6-7, 16-17.

[^42]: *See* *id.* at 6-7.

[^43]: *See* *American Telephone and Telegraph Company et. al., Joint
    Application for Authorization Under Section 214 of The
    Communications Act Of 1934, as Amended, to Construct, Acquire
    Capacity in and Operate a High Capacity Digital Submarine Cable
    System Between and Among the United States Mainland, U.S. Virgin
    Islands, Brazil, Trinidad and Venezuela*, ITC-93-030, Memorandum
    Opinion, Order and Authorization, 8 FCC Rcd 5287 (CCB 1993)
    (*Americas-I Section 214 Order); American Telephone and Telegraph
    Company, et al., Joint Application for a License to Land and Operate
    a High Capacity Digital Submarine Cable System Between and Among the
    United States Mainland, U.S. Virgin Islands, Brazil, Trinidad and
    Venezuela*, File No. SCL-93-002, Cable Landing License, 8 FCC Rcd
    5041 (CCB 1993) (*Americas-I Cable Order*); *See* *Telefónica Larga
    Distancia de Puerto Rico, Inc., Application for Authority to Acquire
    and Operate Facilities for Direct Service Between Puerto Rico, the
    U.S. Virgin Islands, and the Bahamas*, File No. ITC-92-242,
    *Application for Authority to Acquire and Operate Facilities for
    Direct Service between Puerto Rico, the U.S. Virgin Islands, and the
    Netherlands*, File No. I-T-C-93-033, *Joint Section 214 Applications
    and Applications for Submarine Cable Landing Licenses For COLUMBUS
    II and AMERICAS-I Cable Systems*, Memorandum Opinion, Order,
    Authorization and Certificate, File Nos. I-T-C-93-029, I-T-C-93-030,
    S-C-L-93-001, S-C-L-93-002, 9 FCC Rcd 4041 (1994). The Americas-I
    cable is currently in service.

[^44]: *See* *AT&T Corp. et al, Joint Application for Authorization
    Pursuant to Section 214 of the Communications Act of 1934, as
    Amended, to Construct, Acquire, and Operate Capacity in a Digital
    Submarine Cable System, the AMERICAS-II Cable System*, File Nos.
    ITC-98-342, ITC-98-342A, Memorandum Opinion, Order and
    Authorization, 13 FCC Rcd 22534 (TD/IB 1998); *AT&T Corp. et al*.,
    *Joint Application for a License to Land and Operate a Digital
    Submarine Cable System among Florida, Puerto Rico, the U.S. Virgin
    Islands, Martinique, Curacao, Trinidad, Venezuela, French Guiana and
    Brazil, the AMERICAS-II Cable System*, File Nos. SCL-98-003,
    SCL-98-003A, Cable Landing License, 13 FCC Rcd 22540 (TD/IB 1998).
    We are not aware the Americas-II cable is currently in service.

[^45]: *See* *ARCOS-1 Order* at para. 1. The licensee recently notified
    the Commission of the coordinates for the cable landing points prior
    to commencing construction. *See* *ARCOS-1 USA, Inc*., Landing Point
    Notification, SCL-LPN-20000714-00027 (July 14, 2000).

[^46]: *See* *ATLANTICA USA LLC, Application for a License to Land and
    Operate in the United States a Private, Fiber Optic Submarine Cable
    System Extending Between The United States, Venezuela, Brazil and
    Bermuda (the Atlantica-1 Network)*, File No. SCL-LIC-19990602-00010,
    Cable Landing License, 14 FCC Rcd 20787 (TD/IB 1999). We are not
    aware that the Atlantica-I cable is currently in service.

[^47]: *See Americatel Corp. et al., Joint Application for a License to
    Land and Operate a Digital Submarine Cable System between the U.S.
    Virgin Islands, Chile, Peru, Ecuador, Panama, Colombia, Venezuela,
    and Aruba, the Pan American Cable System,* File No. SCL-97-001,
    Cable Landing License, 13 FCC Rcd 850 (TD/IB 1998) (*Pan American
    Cable Order*); *Americatel Corp. et al., Joint Application for
    Authorization Pursuant to Section 214 of the Communications Act of
    1934, as Amended, to Construct, Acquire, and Operate Capacity in a
    Digital Submarine Cable System, the Pan American Cable System*,
    ITC-97-221, Memorandum Opinion, Order and Authorization, 13 FCC Rcd
    857 (TD/IB 1998) (*Pan American Section 214 Order*). We modified the
    cable landing license and related Section 214 authorization to
    include TLD on the cable landing license. *See* *Telefónica Larga
    Distancia de Puerto Rico, Inc, Application Pursuant to Section 214
    of the Communications Act of 1934, as Amended, to Construct,
    Acquire, and Operate Capacity in a Digital Submarine Cable System,
    the Pan American Cable System,* File No. ITC-97-653, Memorandum
    Opinion, Order and Authorization, 13 FCC Rcd 9483 (TD/IB 1998) (*TLD
    Pan American 214 Order*); *Telefónica Larga Distancia de Puerto
    Rico, Inc, Application for a License to Land and Operate a Digital
    Submarine Cable System between the U.S. Virgin Islands, Chile, Peru,
    Ecuador, Panama, Colombia, Venezuela, and Aruba, the Pan American
    Cable System,* File No. SCL-97-001(M), SCL-97-006 , Cable Landing
    License, 13 FCC Rcd 9553 (TD/IB 1998) (*TLD Pan American Cable
    Order*). The Pan American cable is currently in service.

[^48]: *See* *Project Oxygen (USA) LLC, Application for a License to
    Land and Operate in the United States a Private Fiber Optic
    Submarine Cable System Extending between the United States and
    Various Overseas Points*, File No. SCL-LIC-19981014-00020, Cable
    Landing License, 14 FCC Rcd 3924 (TD/IB 1999) (*Project Oxygen Cable
    Order*). We note, however, that Project Oxygen is reported to be in
    the process of ceasing development efforts because of lack of
    financing. *See Communications Week International Online, Oxygen
    Collapse Prompts New Pacific Network Plan,* July 17, 2000.

[^49]: *See SAC Landing Corp, Application for a License to Land and
    Operate in the United States a Digital Submarine Cable System
    between the U.S. Virgin Islands, Brazil, Argentina, Chile, Peru,
    Colombia and Panama*, File No. SCL-LIC-19990823-00015, Cable Landing
    License, 15 FCC Rcd 3039 (TD/IB 2000) (*South American Crossing
    Cable Order*). The licensee recently notified the Commission of the
    coordinates for some of the cable landing points prior to commencing
    construction. *SAC Landing Corp.,* Landing Point Notification, File
    No. SCL-LPN-20000218-00009 (Feb. 18, 2000).

[^50]: *See South American Crossing Cable Order*. The South American
    Crossing system is anticipated to begin operation during the third
    quarter 2000. *Id.* at para. 3. SAC Landing Corp. has certified that
    it is not affiliated with any foreign carrier with market power in
    any of the markets where South American Crossing lands. *Id.* at
    para. 8. As noted above, we granted an application of Project Oxygen
    for authority to land and operate a fiber optic submarine cable
    system extending to several overseas points including Argentina,
    Chile and Peru. *See Project Oxygen Cable Order*. However, also as
    noted above, that system is in the process of ceasing development
    efforts because of lack of financing.

[^51]: *See Cable Landing License NPRM*, at para. 95.

[^52]: *See TLD Pan American Section 214* Order at para. 10; *see also*
    Telefónica Larga Distancia de Puerto Rico, Inc., Application for
    Section 214 Authority, File No. ITC-97-653 (filed Oct. 21, 1997).

[^53]: We note that the Commission, in its *Cable Landing License NPRM*,
    at paras. 61-71, is seeking comment on whether and what types of
    nondiscrimination conditions might be warranted in some situations,
    such as thin routes, and on the types of situations in which it
    might be appropriate for the Commission to require a cable to be
    operated on a common carrier basis.

[^54]: *See* Telefónica SAM August 8, 2000 Letter at 2-4.

[^55]: 47 C.F.R. § 63.10(c)(4).

[^56]: 47 C.F.R. § 63.10(c)(5).

[^57]: *See also Streamlining the International Section 214
    Authorization Process and Tariff Requirements*, IB Docket No.
    95-118, Report and Order, 11 FCC Rcd 12884 at paras. 40-45, 61-63
    (1996).

[^58]: *See Foreign Participation Order*, 12 FCC Rcd at 23991, 23993-94,
    24016-17, 24019-20, paras. 221, 226, 277-79, 284-86.

[^59]: We note that, in the *Foreign Participation Order*, the
    Commission allowed carriers subject to the quarterly provisioning
    and maintenance and circuit status reporting requirements to seek
    confidential treatment of that information subject to a protective
    order, which essentially requires parties to whom confidential
    information is made available to limit the persons who will have
    access to the information and the purposes for which the information
    will be use. *See* *id.*, 12 FCC Rcd at 24017-18, 24020, paras.
    279-280, 286.

[^60]: *See* Telefónica SAM August 8, 2000 Letter at 3-4.

[^61]: 47 C.F.R. § 63.14.

[^62]: *See, e.g., Foreign Participation Order* at para. 157: "If a
    foreign carrier with market power were to enter into an exclusive
    arrangement, competing carriers on the foreign end, if any exist,
    might not have sufficient capacity to accommodate rival U.S.
    carriers' needs. Such an arrangement, therefore, could limit rival
    U.S. carriers' ability to provide international services, raise
    these carriers' costs of termination, or degrade the quality of
    their service offerings, to the ultimate harm of U.S. consumers."

[^63]: *See* Telefónica SAM August 8, 2000 Letter at 3.

[^64]: *See, e.g., AT&T Corp. et al, Joint Application for Authorization
    Pursuant to Section 214 of the Communications Act of 1934, as
    Amended, to Construct, Acquire, and Operate Capacity in a Digital
    Submarine Cable Network, the MAYA-1 Cable Network,* File No.
    ITC-214-19990325-00153, Memorandum Opinion, Order and Authorization,
    14 FCC Rcd 19449 at para. 11(TD/IB 1999).

[^65]: *See* Telefónica SAM August 8, 2000 Letter at 3.

[^66]: *See id*.

[^67]: *See id*. at 2.

[^68]: *See id*.

[^69]: *See id*. at 2-3.

[^70]: *See id.* at 3.

[^71]: *See* 47 U.S.C. § 153(44) (defining "telecommunications
    carrier"); *Cable & Wireless UK Cable Order*, 12 FCC Rcd at 8523,
    para. 17.

[^72]: *See* Application at 8-10; Telefónica SAM August 8, 2000 Letter
    at 4.

[^73]: *See* Application at 9-10.

[^74]: *See* 47 C.F.R. § 1.767.

[^75]: *See* 47 C.F.R. § 1.767 (a).

[^76]: *See* 47 C.F.R. § 1.1306 Note 1 (as amended 1999); *1998 Biennial
    Regulatory Review --- Review of*

    *International Common Carrier Regulations*, IB Docket No. 98-118,
    Report and Order, 14 FCC Rcd 4909 at paras. 67-69 (1999).