DA 02-1251

May 24, 2002

Petition for Waiver of the International Settlements Policy for a Change
in Accounting Rate for International Message Telephone Services with
TeleFonos de Mexico S.A. de C.V.; Commission extends pleading cycle for
File no.

isp-wav-20020322-00012

**Pleading Cycle Established**

**ISP--WAV-20020419-00014**

**Comments/Petitions Due: June 25, 2002**

**Responses/Oppositions Due: July 9, 2002**

AT&T ("AT&T") has filed a petition to waive the Commission's
International Settlements Policy ("ISP") to lower the accounting rate
for International Message Telephone Services ("IMTS") between AT&T and
its correspondent in Mexico, Telefonos de Mexico S.A. de C.V.
("Telmex").[^1] AT&T requests a waiver of the ISP in order to implement
a proposed settlement rate reduction between AT&T and Telmex for traffic
exchanged between the United States and Mexico. WorldCom, Inc.
("WorldCom") filed a similar petition, file no. ISP-WAV-20020322-00012
that was placed on public notice on May 6, 2002. Because these petitions
raise similar issues, we extend the pleading cycle of WorldCom's
petition to run concurrently with this petition.

The average settlement rate currently in effect with Telmex is US \$0.19
per minute. AT&T states that this proposed agreement would reduce
settlement rates with Telmex as follows: For the period January 1, 2001
through December 31, 2001 the average settlement rate of \$0.155 will be
paid by each party. For the period January 1, 2002 through February 28,
2002, the average settlement rate of \$0.135 will be paid by each
party.[^2] For the period March 1, 2002 through December 31, 2003, the
proposed rates to be paid by AT&T for southbound minutes would be
divided into three different rates for different locations in
Mexico.[^3] Under the agreement, all traffic sent by Telmex for
northbound minutes would be settled at \$0.055 per minute. The proposed
settlement rate reductions of AT&T are detailed in the Supplementary
Data Statement of AT&T's petition (see Attachment below).

AT&T argues that the Commission may find good cause to waive the ISP to
allow implementation of the proposed rates.[^4] AT&T states that the
rates proposed are lower that the existing \$0.19 settlement rate, and
are lower than the rates proposed last year to other U.S. carriers.[^5]
AT&T notes that WorldCom filed a petition with the Commission to
implement similar rates with Telmex and that Telmex has offered similar
rates to other U.S. carriers.[^6] AT&T supports the efforts of the U.S.
Trade Representative in seeking removal of the current international
rules that prevent negotiation of competitive market-based international
termination rates in Mexico.

Pursuant to Sections 1.415 and 1.419 of the Commission\'s rules, 47
C.F.R. §§ 1.415, 1.419, interested parties may file comments on or
before **June 25, 2002**, and reply comments on or before **July 9,
2002**. Any filings should reference the file number of the proceeding.
This public notice also extends the pleading cycle for WorldCom's
petition, file no. ISP-WAV-20020322-00012.

**An original and four copies** of all pleadings must be filed in
accordance with Section 1.51(c) of the Commission's rules, 47 C.F.R. §
1.51(c).

**If filed by hand delivery,** the Commission\'s contractor, Vistronix,
Inc., will receive hand-delivered or messenger-delivered paper filings
for the Commission\'s Secretary at 236 Massachusetts Avenue, N.E., Suite
110, Washington, D.C. 20002. The filing hours at this location are 8:00
a.m. to 7:00 p.m. All hand deliveries must be held together with rubber
bands or fasteners. Any envelopes must be disposed of before entering
the building.

**If filed by mail, the following procedures should be followed:
Commercial Overnight Mail** (other than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol
Heights, MD 20743. **U.S. Postal Service first-class mail, Express Mail,
and Priority Mail** should be addressed to 445 12th Street, SW,
Washington, D.C. 20554. All filings must be addressed to the
Commission's Secretary, Office of the Secretary, Federal Communications
Commission.

**In addition, one copy of each pleading must be sent to each of the
following:**

The Commission's duplicating contractor, Qualex International, 445
12^th^ Street, S.W., Room CY-B402, Washington, D.C. 20554; e-mail:
qualexint@aol.com; facsimile: (202) 863-2898; phone: 202 863-2893.

(1) George Li, Policy Division, International Bureau, 445 12^th^ Street,
    S.W., Room 6-A761, Washington, D.C. 20554; e-mail: gli@fcc.gov;

(2) Claudia Fox, Policy Division, International Bureau, 445 12^th^
    Street, S.W., Room 6-A848, Washington, D.C. 20554; e-mail:
    cfox@fcc.gov;

(3) Susan O'Connell, Policy Division, International Bureau, 445 12^th^
    Street, S.W., Room 6-A847, Washington, D.C. 20554; e-mail:
    soconnel@fcc.gov;

(4) Gardner Foster, Policy Division, International Bureau, 445 12^th^
    Street, S.W., Room 3-A625, Washington, D.C. 20554; e-mail:
    gfoster@fcc.gov.

Copies of the application and any subsequently-filed documents in this
matter may be obtained from Qualex International, in person at 445
12^th^ Street, S.W., Room CY-B402, Washington, D.C. 20554, via telephone
at (202) 863-2893, via facsimile at (202) 863-2898, or via e-mail at
qualexint@aol.com. The applications and any associated documents are
also available for public inspection and copying during normal reference
room hours at the following Commission office: FCC Reference Information
Center, 445 12^th^ Street, S.W., Room CY-A257, Washington, D.C. 20554.

For further information, contact Gardner Foster, International Bureau,
at (202) 418-1460.

Attachment

Supplementary Data Statement

Settlement Rates between AT&T and Telmex

Settlement Rate per Minute

+----------+-----------------------+-----------------+----------------+
|          | Current               | Effective       | Effective      |
|          |                       |                 |                |
|          |                       | 1/1/01 --       | 1/1/02 --      |
|          |                       | 12/31/01\*      | 2/28/02        |
+----------+-----------------------+-----------------+----------------+
| Telmex   | Effective rate \$0.19 | \$0.155\*       | \$0.135\*      |
|          |                       |                 |                |
| AT&T     |                       |                 |                |
+----------+-----------------------+-----------------+----------------+

+---------------------+-----------------------+-----------------------+
|                     |                       | Effective             |
|                     |                       |                       |
|                     |                       | 3/1/02 -- 12/31/03    |
+---------------------+-----------------------+-----------------------+
| Telmex              | All U.S. locations    | \$0.055               |
|                     |                       |                       |
| AT&T                | HCD, I800, Received   | \$0.095               |
|                     | Collect               |                       |
|                     |                       | \$0.055               |
|                     | Largest Cities        |                       |
|                     |                       | \$0.085               |
|                     | Medium Cities         |                       |
|                     |                       | \$0.1175              |
|                     | Rest of Mexico        |                       |
|                     |                       | \$0.095               |
|                     | HCD, I800, Received   |                       |
|                     | Collect               |                       |
+---------------------+-----------------------+-----------------------+

Notes:

\*AT&T agreed in a Release and Settlement agreement with Telmex to
true-up the interim payment of \$0.04 made by AT&T based on \$.135 and
\$.155 for these applicable periods.

A separate call set up surcharge of 30 seconds per message shall apply
to Home Country Direct calls.

A \$2.00 surcharge applies per Received Collect message that uses one or
more of the following services (Person-to-Person Collect,
Station-to-Station Collect) when the ticketing is performed at the
originating location.

A 3 minute minimum charge (at the Dial Day rate where applicable) shall
apply to Operator Station, Person Collect and Person-to-Person.

Settlement Rates between Telmex and AT&T

for the Period March 1, 2002 through December 31, 2003

**1. Associated Mexican Numbering Plan Area Codes (MNPAs) for
Termination in Mexico City, Guadalajara and Monterrey at \$0.055:**

  -----------------------------------------------------------------------
  55

  33

  81
  -----------------------------------------------------------------------

**2. Associated MNPA's for Termination in Medium-Sized Cities at
\$0.085:**

  -------------- -------------- -------------- -------------- --------------
  222            438            632            757            958

  228            442            633            758            961

  229            443            639            762            965

  231            444            641            771            967

  232            449            642            773            968

  238            451            645            775            971

  246            452            646            777            981

  271            453            653            779            983

  272            461            656            782            986

  284            462            661            783            987

  287            463            662            786            993

  311            464            664            791            998

  312            466            665            823            999

  314            469            667            828            

  317            472            668            829            

  322            473            669            831            

  324            474            676            833            

  325            475            686            834            

  341            477            713            841            

  351            481            714            842            

  352            492            715            844            

  353            493            721            861            

  354            494            722            867            

  356            591            726            868            

  374            595            727            871            

  378            597            728            877            

  381            612            732            878            

  384            614            733            891            

  389            618            735            892            

  392            622            736            899            

  393            623            744            916            

  415            624            747            917            

  427            626            754            921            

  435            627            755            922            

  436            631            756            938            
  -------------- -------------- -------------- -------------- --------------

**3. Associated MNPA's for Rest of Mexico Termination at \$0.1175:**

  -------------- -------------- -------------- -------------- --------------
  223            357            467            694            826

  224            358            468            695            827

  225            359            471            696            832

  226            371            476            697            835

  227            372            478            698            836

  233            373            482            711            845

  235            375            483            712            846

  236            376            485            716            862

  237            377            486            717            864

  241            379            487            718            866

  243            382            488            719            869

  244            383            489            723            872

  245            385            495            724            873

  247            386            496            725            894

  248            387            498            729            897

  249            388            499            731            913

  273            391            588            734            914

  274            394            592            737            918

  275            395            593            738            919

  276            411            594            739            923

  278            412            596            741            924

  279            413            599            742            932

  281            414            613            743            933

  282            417            615            745            934

  283            418            616            746            936

  285            419            621            748            937

  288            421            625            749            951

  294            422            628            751            953

  296            423            629            753            954

  297            424            634            759            962

  313            425            635            761            963

  315            426            636            763            964

  316            428            637            764            966

  318            429            638            765            969

  319            431            643            766            972

  321            432            644            767            982

  323            433            647            768            984

  326            434            648            769            985

  327            437            649            772            988

  328            441            651            774            991

  329            445            652            776            992

  342            447            658            778            994

  343            448            659            781            995

  344            454            671            784            996

  345            455            672            785            997

  346            456            673            789            

  347            457            674            797            

  348            458            675            821            

  349            459            677            824            

  355            465            687            825            
  -------------- -------------- -------------- -------------- --------------

[^1]: *Petition for Waiver of the International Settlement Policy for a
    Change in Accounting Rate for International Message Telephone
    Services with Telefonos de Mexico S.A. de C.V.* (filed Apr. 19,
    2002) (*AT&T Petition*).

[^2]: According to AT&T, they had been settling with Telmex at an
    interim rate of \$.04 per minute for these periods (January 1, 2001
    to December 31, 2001 and January 1, 2002 to February 28, 2002). AT&T
    states that they reached an agreement with Telmex to true up that
    interim payment in a Release and Settlement.

[^3]: AT&T states that the proposed agreement calls for: (1) a
    settlement rate of \$0.055 per minute for IMTS traffic terminating
    in the three largest cities in Mexico (i.e., Mexico City,
    Guadalajara and Monterrey); (2) a settlement rate of \$0.085 for
    IMTS traffic terminating in approximately 200 large and medium sized
    cities in Mexico; and (3) a settlement rate of \$0.1175 for IMTS
    traffic terminating in all other locations in Mexico. AT&T also
    states that there is a \$0.095 settlement rate for Home Country
    Direct ("HCD"), Inbound 800 (International Freephone) and Received
    Collect traffic for both the northbound and southbound routes.

[^4]: *See Petition for Waiver of the International Settlement Policy
    for a Change in Accounting Rate for International Message Telephone
    Services with Telefonos de Mexico S.A. de C.V., Supplementary
    Filing* (filed May 2 , 2002) (*AT&T Supplementary Filing*) (*citing
    1998 Biennial Regulatory Review, Reform of the International
    Settlement Policy and Associated Filing Requirements*, 14 FCC Rcd
    7963, 7993, ¶ 80 (1999)).

[^5]: *AT&T Petition* at 2 citing *WorldCom International Settlements
    Policy Modification Request*, file no. ARC-MOD-20010530-00123 (filed
    May 30, 2001).

[^6]: *See Petition for Waiver of the International Settlement Policy
    for a Change in Accounting Rate for International Message Telephone
    Services with Telefonos de Mexico S.A. de C.V.,* file no.
    ISP--WAV-20020322-00012 (filed Mar. 21, 2002) (*WorldCom Petition*).