# Before the

# Federal Communications Commission

# Washington, D.C. 20554

)

In the Matter of )

)

CODETEL International Communications )

Incorporated )

) File No. ITC-214-19991220-00781

Application for Authority to Provide )

International Message Telephone Service )

Between the United States and Cuba in )

Accordance the Provisions of Section )

63.18(e)(4) of the Rules )

)

# ORDER, AUTHORIZATION AND CERTIFICATE

**Adopted: April 13, 2000 Released: April 14, 2000**

By the Chief, Telecommunications Division:

###### 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,[^1] and 47 C.F.R. §
    63.18(e)(4), to provide international message telephone service
    between the United States and Cuba by transiting the Dominican
    Republic.

###### Background

2.  CIC is a Delaware corporation holding global facilities-based
    authority, and is regulated as dominant on the U.S.-Dominican
    Republic and U.S.-Venezuela routes.[^2] On December 20, 1999, CIC
    filed the instant Application ("Application") seeking Section 214
    authority to provide international message telephone service between
    the United States and Cuba by transiting the Dominican Republic. 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.[^3] On January 14,
    2000, we placed the Application on public notice.[^4] We received no
    comments or petitions to deny.

###### Discussion

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

3.  In a letter dated July 22, 1993,[^5] 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."[^6]
    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[^7];
    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 30
    days after authorization because the circuitry is already in place.
    We therefore find that the proposal has the potential to be
    operational within a year.

5.  CIC states that the settlement rate for the traffic to Cuba shall be
    \$0.60 per minute delivered, the current U.S.-Cuba settlement rate,
    which is also the same as the rate paid by CODETEL for its Dominican
    Republic-Cuba traffic. We find that the proposed settlement 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 has
    informed the Commission that it has no objection to the proposed
    transiting arrangement.[^8] We find that CIC's request for authority
    is limited to the equipment and services necessary to deliver
    traffic to Cuba.

7.  CIC's states that its proposed arrangement uses methods of
    communication already in place between the U.S. and Cuba.
    Specifically, CIC will lease half circuits to the midpoint in a
    submarine cable owned by CODETEL to carry traffic between the U.S.
    and the Dominican Republic. Traffic is handed off by CIC to CODETEL
    at the midpoint. For the Dominican Republic-Cuba portion, the
    traffic will use satellite circuits already in use for CODETEL's
    traffic with Cuba. We find that that this routing arrangement uses
    modes of communication that are already in place.

8.  CIC agrees to report circuit usage to the Commission on June 30 and
    December 31 of each year and on the one-year anniversary of this
    authorization.

9.  This authorization is subject to CIC's obtaining all necessary
    licenses and authorizations from the Departments of Treasury and
    Commerce for the proposed business activity, as described in the
    Department of State letter.[^9]

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

10. 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.[^10] 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

11. 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.[^11] The Executive Branch has not raised
    any such concerns with this application and we know of no other
    countervailing public interest considerations.

12. 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

13\. 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-19991220-00781 is GRANTED, and
CODETEL International Communications Incorporated ("CIC") is authorized
pursuant to Section 63.18(e)(4) of the Commission's rules, 47 C.F.R. §
63.18(e)(4), to provide international message telephone service between
the United States and Cuba transiting the Dominican Republic, subject to
all current and future Commission regulations, including those
specifically listed below.

14\. IT IS FURTHER ORDERED that CIC 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.

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

16\. 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.

17\. 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.

18\. 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 U.S. and Cuba.

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

20\. 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]: *See* File No. ITC-214-19990303-00103.

[^3]: CIC is regulated as dominant on the U.S.-Dominican Republic route.
    *See* *International Authorizations Granted*, Report No. TEL-00140
    (rel. October 1, 1999) (Public Notice granting CIC global
    authorization to provide facilities-based and resale service,
    subject to dominant carrier regulation on the U.S.-Dominican
    Republic and U.S.-Venezuela routes).

[^4]: *See* *Non Streamlined International Applications Accepted for
    Filing*, Report No. TEL-00180NS (rel. January 14, 2000) (Public
    Notice accepting the application for filing).

[^5]: *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").

[^6]: *See* 22 U.S.C. § 6004(e)(1).

[^7]: 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* U.S. Department of State
    letter at 2.

[^8]: *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).

[^9]: See Beaird letter at 3-4.

[^10]: 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
    99-124 (rel. June 11, 1999)).

[^11]: *See* *Foreign Participation Order*, 12 FCC Rcd at 23919-21, ¶¶
    61-66.