**PUBLIC NOTICE**![](media/image1.png){width="0.8229166666666666in"
height="0.8354166666666667in"}

**FEDERAL COMMUNICATIONS COMMISSION**

**445 TWELFTH STREET, S.W.**

**WASHINGTON, D.C. 20554**

News Media Information: (202) 418-0500

Fax-On-Demand: (202) 418-2830

Internet: http://www.fcc.gov

ftp.fcc.gov

**Released: July 6, 2004** **DA 04-2027**

COMPLIANCE WITH

REGULATORY FEE REQUIREMENTS BY

CABLE LANDING LICENSEES

OPERATING ON A NON-COMMON CARRIER BASIS

To sell capacity on U.S. international routes, the operator of a
non-common (i.e., private) carrier submarine cable landing in the United
States must obtain a cable landing license from the Commission prior to
landing and operating such a submarine cable.[^1] As a provider of
active capacity on U.S.-international routes and as an operator
regulated by the Commission, such a non-common carrier submarine cable
operator is subject to the statutory regulatory fee requirements
administered by the Commission. Since 1995, the Commission has stated in
its fee guidance that all cable landing licensees operating on a
non-common carrier basis must pay regulatory fees for all international
bearer circuits sold on an indefeasible right of use ("IRU") basis or
leased to any customer, including themselves or their affiliates, other
than an international common carrier authorized by the Commission to
provide U.S. international common carrier services.[^2]

**[Regulatory Fee Requirements]{.underline}**

The Commission's most recent fact sheet specifies who must pay
regulatory fees for international bearer circuits: [^3]

> *Who Must Pay*: Facilities-based common carriers with active
> international bearer circuits as of *December 31, 2002* in any
> transmission facility for the provision of service to an end user or
> resale carrier . . . . \[Non-common carrier\] submarine cable
> operators are also to pay fees for any and all international bearer
> circuits sold on an indefeasible right of use (IRU) basis or leased to
> any customer, including themselves or their affiliates, other than an
> international common carrier authorized by the Commission to provide
> U.S. international common carrier services.

The Commission adopted the exemption for capacity sales to carriers
holding international section 214 authorizations in order to avoid
double-charging carriers (once for the capacity sale from the submarine
cable operator to the U.S. international carrier, and once for the
capacity sale from the U.S. international carrier to its customers).[^4]
Nevertheless, the Commission's longstanding guidance on the subject of
regulatory fees for international bearer circuits makes clear that
regulatory fees will be paid once for all active international bearer
circuits connecting the United States with foreign points.

By holding a cable landing license from the Commission, a submarine
cable operator is subject to the Commission's jurisdiction and is
obligated to pay regulatory fees. In particular:

-   The obligation of a non-common carrier submarine cable operator to
    pay regulatory fees for active capacity on U.S. international routes
    applies regardless of the country of incorporation or organization
    of either the entity holding a cable landing license issued by the
    Commission, or of that licensee entity's ultimate corporate parent.

-   The obligation of a non-common carrier submarine cable operator to
    pay regulatory fees for active capacity on U.S. international routes
    applies regardless of whether the carrier or operator sells capacity
    through the entity holding the cable landing license, or through an
    affiliated sales or marketing subsidiary. Moreover, this obligation
    applies even if the operator sells such capacity through a sales or
    marketing subsidiary organized under the laws of a foreign country,
    and regardless of whether or not that sales or marketing subsidiary
    has any commercial presence in the United States.

-   The obligation of a non-common carrier submarine cable operator to
    pay regulatory fees for active capacity on U.S. international routes
    applies notwithstanding the Commission's regulation of that system
    as a non-common carrier system. The Commission's fee guidance
    explicitly requires such an operator to pay regulatory fees, except
    for capacity sold to customers holding international Section 214
    authorizations granted by the Commission

-   The obligation of a non-common carrier submarine cable operator to
    pay regulatory fees for active capacity on U.S. international routes
    applies regardless of whether the operator sells the capacity on a
    lease or IRU basis.

-   The obligation of a non-common carrier submarine cable operator to
    pay regulatory fees for active capacity on U.S. international routes
    applies regardless of the nature of the services its customers
    provide using such capacity.

    For further information about the payment of regulatory fees, please
    contact the Office of Managing Director, Roland Helvajian at (202)
    418-0444 or Rob Fream at (202) 418-0408.

[^1]: The Commission's authority to grant cable landing licenses derives
    from the Cable Landing License Act of 1921, Public Law No. 8, 67^th^
    Congress, 42 Stat. 8 (1921), 47 U.S.C. §§ 34-39, and Executive Order
    No. 10530, Executive Order No. 10530 § 5(a) (May 10, 1954),
    reprinted as amended in 3 U.S.C. § 301.

[^2]: See Implementation of Section 9 of the Communications Act;
    Assessment and Collection of Regulatory Fees for the 1994 Fiscal
    Year, MD Docket 94-19, Memorandum Opinion and Order, 10 FCC Rcd.
    12759, 12761 para. 11 (1995).

[^3]: Regulatory Fees Fact Sheet: What You Owe---International and
    Satellite Services Licensees (July 2003).

[^4]: See id. paras 10-11.