# Before the

# Federal Communications Commission

# Washington, D.C. 20554

)

In the Matter of )

)

Sprint Communications Company L.P. )

) File No. ITC-214-20000302-00127

Application for Authority to Lease )

And Operate Additional Satellite )

Facilities for Service Between the )

United States and Cuba )

)

# ORDER AND AUTHORIZATION

**Adopted: May 25, 2000 Released: May 26, 2000**

By the Chief, Telecommunications Division:

### Introduction

1.  In this Order, we grant Sprint Communications Company, L.P.
    ("Sprint"), authority, pursuant to Section 214 of the Communications
    Act of 1934, as amended,[^1] and Section 63.18 of the Commission's
    rules,[^2] to upgrade an existing private line circuit between an
    authorized international earth station in Franklin, New Jersey and
    an INTELSAT Atlantic Ocean Region ("AOR") satellite, together with
    necessary connecting facilities, from 256 Kilobits per second (Kbps)
    to 2 Megabits per second (Mbps). The facilities are used to
    supplement Sprint's existing facilities to provide authorized
    international private line services on the U.S.-Cuba route.

### Background

2.  Sprint is a limited partnership organized under the laws of Delaware
    and is a common carrier subject to the Communications Act of 1934,
    as amended. Sprint is currently authorized by the Commission to
    provide service directly to Cuba.[^3] On March 2, 2000, Sprint filed
    this Application seeking authority to lease and operate additional
    satellite facilities for service between the United States and
    Cuba.[^4] On March 15, 2000, we placed the application on public
    notice.[^5] We received no comments or petitions to deny.

## III. Discussion

####### Policy Guidelines for Applications to Serve Cuba

3.  In a letter dated July 22, 1993,[^6] 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."[^7]
    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 and
    Cuba must cover half the costs of construction, maintenance and/or
    lease of transmission facilities; 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; [^8] 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. Furthermore, applicants must provide a narrative
    description of their proposed agreement as well as a sworn statement
    that the foreign correspondent agrees to activate the proposed
    circuits on the Cuban end.[^9]

4.  Sprint states that the proposed facilities will be operational
    within a year and that the facilities requested are necessary for,
    and limited to, the delivery of a signal to an international
    telecommunications gateway in Cuba. Because the proposed facilities
    are private line circuits, there are no settlement payments. Sprint
    states that it and its foreign correspondent, Empresa de
    Telecomunicaciones de Cuba S.A. ("ETECSA") will each provide and
    bear the cost of matching half circuits and connecting facilities.

5.  The proposed service will use a mode of communication, specifically
    an INTELSAT satellite, already in place between the United States
    and Cuba. Specifically, Sprint states that it will provide
    international private line services by interconnecting with an
    authorized earth station in Franklin, New Jersey (FRN-03A), that
    will communicate with the INTELSAT AOR satellite at 335.5° E.L.

6.  Sprint states that it shall continue to report circuit usage to the
    Commission on June 30 and December 31 of each year and on the
    one-year anniversary of its authorization, as it is required to do
    under its previous authorizations. A copy of Sprint's operating
    agreement with ETECSA is already on file with the Commission under
    Sprint's prior authorization.[^10] Sprint submitted a sworn
    affidavit that the Cuban telecommunications entity agrees to
    activate the proposed circuits and facilities.[^11] Finally, Sprint
    states that it has already secured the necessary licenses from the
    U.S. Department of the Treasury and the U.S. Department of Commerce
    in connection with its prior authorization.

7.  Based upon the above information, we find that the Application is
    consistent with the Executive Branch guidelines set forth in the
    Department of State letter for implementation of the Cuban Democracy
    Act of 1992.

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

8.  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.[^12] Sprint is not a foreign carrier in Cuba and does
    not control and is not affiliated with ETECSA, the only authorized
    telecommunications carrier in Cuba.[^13] Sprint, therefore, will not
    be subject to dominant carrier safeguards on the U.S.-Cuba route at
    this time.

###### IV. Other Considerations {#iv.-other-considerations .unnumbered}

9.  The Commission also considers other public interest factors that may
    weigh in favor of, or against, granting an international Section 214
    application, including national security, law enforcement, foreign
    policy and trade concerns.[^14] Accordingly, we informed the U.S.
    Department of State of the Application.[^15] The U.S. Department of
    State advised us that it approves the grant of this
    Application.[^16]

10. This authorization will result in increased availability of private
    line facilities on the U.S.-Cuba route to better fulfill consumer
    demand. Therefore, we find that granting the Application will
    further the goals of the Cuban Democracy Act of 1992, which calls
    for the authorization of facilities "in such quantity and of such
    quality as may be necessary to provide efficient and adequate
    telecommunications services between the United States and
    Cuba."[^17]

###### V. Conclusion {#v.-conclusion .unnumbered}

11. Upon consideration of the Application and in view of the foregoing,
    we find that the present and future public convenience and necessity
    require a grant of the application, subject to the specific
    conditions set forth below.

## VI. Ordering Clauses

12. Accordingly, IT IS ORDERED that application File No.
    ITC-214-20000302-00127 IS GRANTED, and Sprint is authorized,
    pursuant to Section 63.18 of the Commission's rules, 47 C.F.R. §
    63.18, to lease and operate additional satellite facilities for
    service between the United States and Cuba and specifically to
    upgrade an existing private line circuit between an authorized
    international earth station in Franklin, New Jersey and an INTELSAT
    Atlantic Ocean Region satellite at 335.5° E.L., together with
    necessary connecting facilities, from 256 Kilobits per second (Kbps)
    to 2 Megabits per second (Mbps) to supplement Sprint's existing
    facilities providing authorized international private line services
    on the U.S.-Cuba route.

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

14. IT IS FURTHER ORDERED that Sprint shall submit reports on or before
    June 30 and December 31 of each year, and on the one-year
    anniversary of the notification in the Federal Register of the grant
    of its original authorization to provide service to Cuba, indicating
    the number of circuits activated by facility.

14\. IT IS FURTHER ORDERED that this Order is subject to revocation
without a hearing in the event 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.

15\. IT IS FURTHER ORDERED that Sprint shall file a Section 214
application for any additional circuits it proposes to establish between
the United States and Cuba.

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

17\. 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 1.13).

FEDERAL COMMUNICATIONS COMMISSION

Rebecca Arbogast

Chief

Telecommunications Division

International Bureau

[^1]: 47 U.S.C. § 214.

[^2]: 47 C.F.R. § 63.18.

[^3]: *See* *Wiltel International, Inc.*, 9 FCC Rcd 5806 (1994)
    (authorizing Sprint to lease and operate one E-1 circuit (30 64-Kbps
    circuits) and to provide all authorized services between the United
    States and Cuba); *Sprint Communications L.P.*, 9 FCC Rcd 2827
    (1994) (authorizing Sprint to lease and operate one 2-Mbps digital
    satellite circuit for direct packet data service between the United
    States and Cuba); *Sprint Communications L.P.*, File No.
    ITC-214-19981021-00739, DA 99-227 (rel. January 26, 1999)
    (authorizing Sprint to upgrade its existing U.S.-Cuba satellite
    circuit from 64 Kbps to 256 Kbps); *Sprint Communications L.P.*,
    File No. ITC-214-19990316-00141, DA 99-903 (rel. May 17, 1999);
    (authorizing Sprint to lease and operate one additional 2 Mbps (E-1)
    digital satellite circuit between the United States and Cuba).

[^4]: See *Sprint Communications L.P.*, Application for Authority to
    Lease and Operate Additional Satellite Facilities for Service
    Between the United States and Cuba, File No. ITC-214-20000302-00127
    (filed March 2, 2000) ("Application").

[^5]: *See* *Non-Streamlined International Applications Accepted for
    Filing*, Report No. TEL-00193NS (rel. March 15, 2000).

[^6]: *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").

[^7]: *See* 22 U.S.C. § 6004(e)(1).

[^8]: 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.

[^9]: *See* Department of State letter at 3.

[^10]: *See Sprint Communications L.P.*, File No. 94-247.

[^11]: *See* Affidavit of Mr. Jorge M. Perez Ponce, International
    Regional Manager, Sprint Communications Company, L.P., Attachment to
    Application, File No. ITC-214-20000302-00127 (stating that Sprint's
    foreign correspondent, ETECSA, has agreed to activate the proposed
    circuit on the Cuban end).

[^12]: The Commission's international dominant carrier safeguards are
    set forth in Section 63.10(c)-(d) of the Commission's rules (as
    amended in *International Settlement Rates*, IB Docket No. 96-261,
    Report and Order on Reconsideration and Order Lifting Stay, FCC
    Docket No. 99-124 (rel. June 11, 1999)).

[^13]: ETECSA is a joint venture operated by the Ministry of
    Communications of the Republic of Cuba, with a 29% interest held by
    Stet International (based in Brussels, Belgium), a subsidiary of
    Telecom Italia (based in Rome, Italy). *See* U.S.-Cuba Trade and
    Economic Council, *Economic Eye on Cuba* (8 May 2000 to 14 May 2000)
    at 2.

[^14]: *See* *See* *Rules and Policies on Foreign Participation in the
    U.S. Telecommunications Market*, IB Docket Nos. 97-142 and 95-22,
    Report and Order and Order on Reconsideration, 12 FCC Rcd 23891,
    23919 ¶¶ 61-66 (1997) (*Foreign Participation Order*), *recon.
    pending*.

[^15]: *See* Letter from Rebecca Arbogast, Chief, Telecommunications
    Division, International Bureau, Federal Communications Commission to
    Richard Beaird, Acting United States Coordinator, Office of
    International Communications and Information Policy, U.S. Department
    of State (March 16, 2000).

[^16]: *See* Letter from Richard Beaird, Acting United States
    Coordinator, Office of International Communications and Information
    Policy, U.S. Department of State to Rebecca Arbogast, Chief,
    Telecommunications Division, International Bureau, Federal
    Communications Commission to (April 25, 2000).

[^17]: Section 1705(e)(2) of the Cuban Democracy Act of 1992, 22 U.S.C.
    § 6004(e)(2).