# Before the

# Federal Communications Commission

# Washington, D.C. 20554

)

In the Matter of )

)

CODETEL International Communications )

Incorporated )

) File No. ITC-214-20030312-00130

Application for Authority to Provide )

International Message Telephone Service )

Between the United States and Cuba in )

Accordance the Provisions of Section )

63.18(e)(3) of the Rules )

)

# ORDER, AUTHORIZATION AND CERTIFICATE

**Adopted: June 2, 2003 Released: June 3, 2003**

By the Chief, Policy Division, International Bureau:

###### Introduction

1.  In this Order, we grant CODETEL International Communications
    Incorporated ("CIC") authority, pursuant to section 214 of the
    Communications Act of 1934, as amended (the "Act"),[^1] and section
    63.18(e)(3) of the Commission's rules,[^2] to provide international
    facilities-based service between all points in the United States and
    Cuba via indirect switched transit through the Dominican Republic.

###### Background

2.  CIC is a Delaware corporation that is indirectly, wholly owned by
    Verizon Communications Inc. ("Verizon") (formerly, Bell Atlantic
    Corporation).[^3] CIC holds several authorizations to provide U.S.
    international facilities-based and resale service pursuant to
    section 214 of the Act and section 63.18 of the rules.[^4] CIC is
    classified as a dominant international carrier, pursuant to section
    63.10 of the rules, on the U.S.-Dominican Republic, U.S.-Venezuela,
    and U.S.-Gibraltar routes, where CIC has affiliations with foreign
    carriers that possess market power on the foreign end of those
    routes.[^5] On March 12, 2003, CIC filed the instant Application
    ("Application") seeking Section 214 authority to provide
    international facilities-based service pursuant to section
    63.18(e)(3) of the rules between all points in the United States and
    Cuba via indirect switched transit through the Dominican Republic.
    Specifically, CIC requests authority to provide international
    message telephone service ("IMTS") between all of Verizon's
    in-region and out-of-region states, and Cuba.[^6] CIC plans to offer
    service to Cuba through the facilities of Compañia Dominicana de
    Teléfonos (CODETEL), an authorized carrier in the Dominican Republic
    with which CIC is affiliated within the meaning of Section 63.09(e)
    of the Commission's rules.[^7] On March 21, 2003, we placed the
    Application on public notice.[^8] We received no comments or
    petitions to deny.

###### Discussion

#######  A. Policy Guidelines for Applications to Serve Cuba {#a.-policy-guidelines-for-applications-to-serve-cuba .unnumbered}

3.  In a letter dated July 22, 1993,[^9] the U.S. Department of State
    informed the Commission of the Executive Branch's policy guidelines
    for implementation of the telecommunications provisions of the Cuban
    Democracy Act of 1992, which provides that "telecommunications
    services between the United States and Cuba shall be
    permitted."[^10] Among the policy guidelines are the following
    requirements: 1) the proposals must have the potential to be
    operational within a year; 2) settlements must not be more favorable
    to Cuba than the current 50/50 split of the \$1.20 per minute
    accounting rate; 3) proposals must be limited to equipment and
    services necessary to deliver a signal to Cuba; 4) proposals must
    utilize modes of communications already in place between the U.S.
    and Cuba[^11]; and 5) carriers shall report the number of circuits
    activated by facility on June 30 and December 31 of each year and on
    the one-year anniversary of the FCC authorization.

4.  Upon consideration of the Application, we find that a grant of the
    Application will serve the public interest subject to the conditions
    set forth below. The Application is consistent with the Executive
    Branch guidelines set forth in the Department of State letter. CIC
    states that it would be able to begin carrying traffic within one
    year because the circuitry is already in place. We find, on this
    basis, that the proposal has the potential to be operational within
    a year.

5.  CIC states that the settlement rate for traffic to Cuba shall be
    \$0.60 per minute delivered, which is the current settlement rate
    paid by CODETEL for its traffic to Cuba, and is the same as the
    current U.S.-Cuba settlement rate. Settlement with Cuba will be made
    by CODETEL. We find that the proposed settlement rate is no more
    favorable to Cuba than the current 50/50 split of the \$1.20 per
    minute accounting rate for U.S.-Cuba traffic.

6.  CIC states that the authority requested is limited to the equipment
    and services necessary to deliver traffic to Cuba. CIC plans to
    deliver traffic to Cuba by transiting the Dominican Republic. In a
    letter dated March 10, 1995, the U.S. Department of State indicated
    that it has no objection to transiting arrangements such as that
    proposed here by CIC.[^12] We find that CIC's request for authority
    is limited to the equipment and services necessary to deliver
    traffic to Cuba.

7.  CIC states that its proposed arrangement uses modes of communication
    already in place between the United States and Cuba. Specifically,
    CIC will hand off its Cuba-bound traffic originating in the
    continental United States to CODETEL in Miami at the NAP of the
    Americas. From there, CODETEL will carry the calls to the Dominican
    Republic on its existing circuits on the ARCOS-1 cable, which are
    already used to transport calls to the Dominican Republic and other
    international points, and will use satellite circuits already in use
    for CODETEL's traffic with Cuba to complete CIC's Cuba-bound calls.
    CIC will hand off its Cuba-bound traffic originating in Puerto Rico
    to CODETEL at the Puerto Rico landing station of the Antillas I
    submarine cable. From there, CODETEL will carry the calls to the
    Dominican Republic on its existing circuits on the Antillas I cable,
    which are already used to transport calls to the Dominican Republic
    and other international points, and will use satellite circuits
    already in use for CODETEL's traffic with Cuba to complete CIC's
    Cuba-bound calls. We find that that this routing arrangement uses
    modes of communication that are already in place.

8.  This authorization is subject to CIC's obtaining all necessary
    licenses and authorizations from the Departments of Treasury[^13]
    and Commerce for the proposed business activity, as described in the
    Department of State letter.[^14]

########  B. Dominant Carrier Safeguards

9.  For each international section 214 application we must examine
    whether it is necessary to impose the Commission\'s international
    dominant carrier safeguards on an applicant in its provision of
    service on the route or routes for which the applicant seeks
    authorization.[^15] CIC is not presently affiliated with any foreign
    carrier in Cuba and therefore will not be subject to dominant
    carrier safeguards on the U.S.-Cuba route at this time.

###### Conclusion

10. We find that a grant of CIC's application will serve the public
    interest under Section 214 of the Act, by increasing competition on
    the U.S.-Cuba international services route and providing more
    choices to U.S. consumers.

###### Ordering Clauses

11. Accordingly, IT IS HEREBY CERTIFIED that the present and future
    public convenience and necessity require a grant of the
    above-captioned application to the extent specified in this Order.
    Therefore, IT IS ORDERED that Application File No.
    ITC-214-20030312-00130 is GRANTED, and CODETEL International
    Communications Incorporated ("CIC") is authorized pursuant to
    Section 63.18(e)(3) of the Commission's rules, 47 C.F.R. §
    63.18(e)(3), to provide facilities-based international message
    telephone service between all points in the United States and Cuba
    via indirect switched transit through the Dominican Republic,
    subject to all current and future Commission regulations, including
    those specifically listed below.

12\. IT IS FURTHER ORDERED that CIC shall comply with the requirements
specified in Sections 63.11, 63.14, 63.17, 63.19, 63.21, 63.22, and
63.24 of the Commission's rules. 47 C.F.R. §§ 63.11, 63.14, 63.17,
63.19, 63.21, 63.22, and 63.24.

13\. IT IS FURTHER ORDERED that the service authorized herein must be
implemented within one year from the date of release of this order.

14\. IT IS FURTHER ORDERED that this authorization is subject to the
applicant's obtaining all necessary licenses and authorizations from the
Departments of Treasury and Commerce.

15\. IT IS FURTHER ORDERED that this authorization is subject to
revocation without a hearing in the event that the Department of State
or the Federal Communications Commission determines that the
continuation of communications between the United States and Cuba is no
longer in the national interest.

16\. IT IS FURTHER ORDERED that CODETEL International Communications,
Inc. shall file a Section 214 application for any additional circuits it
proposes to establish between the United States and Cuba.

17\. IT IS FURTHER ORDERED that acceptance of this Authorization shall
be deemed acceptance of the conditions set forth herein.

18\. IT IS FURTHER ORDERED that this authorization, issued pursuant to
Section 0.261 of the Commission's Rules, is effective upon release.
Petitions for reconsideration under Section 1.106 or applications for
review under Section 1.115 of the Commission's Rules may be filed within
30 days of public notice of this order (see Section 1.4(b)(2)).

FEDERAL COMMUNICATIONS COMMISSION

James L. Ball

Chief, Policy Division

International Bureau

[^1]: 47 U.S.C. § 214.

[^2]: 47 C.F.R § 63.18(e)(3).

[^3]: Because CIC is an "affiliate" of the Verizon Bell operating
    companies, as that term is defined in section 3(1) of the Act, 47
    U.S.C. § 153(1), it is subject to the limitations on Bell operating
    company provision of interLATA services, including international
    interexchange services, as set forth in section 271 of the Act,
    *id*. § 271.

[^4]: *See* Application, File No. ITC-214-20030312-00130
    ("Application"), at 4-6. CIC currently is authorized to provide,
    *inter alia*, facilities-based international message telephone
    service ("IMTS") between Verizon's out-of-region states and one of
    its in-region states, New York, and Cuba via indirect switched
    transit through the Dominican Republic. This authorization
    originally covered service between all points in the United States
    and Cuba. *See* *CODETEL International Communications Incorporated,
    Application for Authority to Provide International Message Telephone
    Service Between the United States and Cuba in Accordance with the
    Provisions of Section 63.18(e)(4) of the Rules,* Order,
    Authorization and Certificate, 15 FCC Rcd 6337 (2000) ("*CIC Cuba
    Order*"). When CIC's parent, GTE Corp., merged with Bell Atlantic
    Corporation, CIC's international section 214 authorizations were
    modified to exclude the provision of international service
    originating in Bell Atlantic's in-region states other than New York
    (the only state for which Bell Atlantic had acquired Section 271
    authority at that time). *See* *Application of GTE CORPORATION,
    Transferor, and BELL ATLANTIC CORPORATION, Transferee, For Consent
    to Transfer Control of Domestic and International Section 214 and
    310 Authorizations and Application to Transfer Control of a
    Submarine Cable Landing License**, ***15 FCC Rcd 14032, 14234**,**
    para. 401 (2000) (***"Merger Order"***).

[^5]: *See* Application at 4-6.

[^6]: Through this application, CIC seeks to consolidate and update its
    existing facilities-based authority for Cuba to include authority to
    provide IMTS between Cuba and Massachusetts, Connecticut,
    Pennsylvania, Rhode Island, Vermont, Maine, New Jersey, Delaware,
    New Hampshire, Virginia, Maryland, West Virginia and the District of
    Columbia. Application at 6. *See also supra* note 4. Verizon has now
    acquired authority to provide interLATA services originating in all
    of its in-region states pursuant to section 271 of the Act. *See,
    e.g., Verizon Application to Provide InterLATA Services in Maryland,
    Washington, D.C., and West Virginia*, FCC 03-57 (rel. March 19,
    2003).

[^7]: CIC is classified as a dominant international carrier on the
    U.S.-Dominican Republic route due to its affiliation with CODETEL.
    *See supra* para. 2.

[^8]: *See* *Non Streamlined International Applications Accepted for
    Filing*, Public Notice, Report No. TEL-00650NS (rel. March 21, 2003)
    (accepting the application for filing).

[^9]: *See* Letter from Richard C. Beaird, Acting U.S. Coordinator and
    Director, Bureau of International Communications and Information
    Policy, U.S. Department of State to James H. Quello, Chairman,
    Federal Communications Commission (July 22, 1993) ("Department of
    State letter").

[^10]: *See* 22 U.S.C. § 6004(e)(1).

[^11]: Proposals utilizing new modes of communications will be reviewed
    by the appropriate agencies on a case-by-case basis, as stated in
    the Department of State letter. *See* Department of State letter at
    2.

[^12]: *See* Letter from Ambassador Vonya B. McCann, U.S. Coordinator,
    Bureau of International Communications and Information Policy, U.S.
    Department of State to Reed Hundt, Chairman, Federal Communications
    Commission (March 10, 1995).

[^13]: The Application states that a Treasury license was received on
    June 7, 2000, in connection with the *CIC Cuba Order*.

[^14]: *See* Department of State letter at 3-4.

[^15]: The Commission's international dominant carrier safeguards are
    set forth in Section 63.10(c), (e) of the Commission's rules, 47
    C.F.R. § 63.10(c), (e).