Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | SCL-MOD-20000511-00018       |
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| Level 3 Landing Station, Inc.    | ) |                              |
| and                              | * |                              |
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| GT Landing II Corp.              |   |                              |
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| Application for Modification of  | * |                              |
| License to                       | ) |                              |
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| Land and Operate in the United   | * |                              |
| States a Private Fiber Optic     |   |                              |
| Submarine Cable System Extending | * |                              |
| Between the United States and    | * |                              |
| the United Kingdom               | ) |                              |
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**MODIFICATION OF CABLE LANDING LICENSE**

**Adopted:** November 8, 2000 **Released:** November 9, 2000

By the Chief, Telecommunications Division, International Bureau:

# Introduction

### In this Order, we modify the cable landing license held by Level 3 Landing Station, Inc. (Level 3 Landing) to add GT Landing II Corp. (GT Landing II) (collectively the Joint Applicants) as an additional party to the cable landing license.[^1] The original license authorized Level 3 International, Inc. (Level 3), pursuant to the Cable Landing License Act,[^2] and Executive Order No. 10530,[^3] to land and operate a fiber optic submarine cable system, called the U.S.-U.K. Cable, extending between the United States and the United Kingdom. The Commission subsequently granted the application of Level 3 for a *pro forma* assignment of the license to Level 3's wholly-owned subsidiary, Level 3 Landing.[^4]

2.  The Application requests authority to add GT Landing II as an
    additional party to the license.[^5] GT Landing II, together with
    its Global Crossing affiliates, Atlantic Crossing II Ltd. and GT
    U.K. Ltd. (a subsidiary of Atlantic Crossing Ltd., the owner of
    AC-1), will separately own and operate two of the four fiber pairs
    on the U.S.-U.K. cable. GT Landing II's two fiber pairs will be
    called Atlantic Crossing 2 or AC-2, and will be fully integrated
    into the Global Crossing Network. Level 3 Landing\'s two fiber pairs
    will be called Project Yellow, Yellow Cable System, or Yellow
    System.[^6]

3.  Level 3 Landing and GT Landing II will each separately own and
    operate two of the four fibers pairs on the U.S.-U.K. cable
    extending from the U.S. landing site up to and including the
    territorial limits of the United States, and will separately own the
    U.S. cable station terminal equipment associated with each party's
    respective fiber pair.[^7] According to the Application, Level 3
    Landing will own the U.S. cable station and cable station ancillary
    equipment, such as cable station electrical equipment, HVAC, fire
    protection, and security. Level 3 Landing will maintain space in the
    cable station and GT Landing II will lease space in the cable
    station for the installation and operation of their respective
    terminal equipment.[^8] The Joint Applicants will each own an
    undivided one-half interest in the remaining portions of the system
    (*i.e.*, the cable, repeaters, and other system fixtures and
    equipment other than the fibers, terminal equipment and cable
    station), extending from the U.S. cable station to the territorial
    limits of the United States.[^9] A U.K. affiliate of Level 3 Landing
    and a U.K. affiliate of GT Landing II will hold corresponding
    interests on the U.K. segment of the cable. Level 3 (Bermuda) Ltd.
    and Atlantic Crossing II Ltd. will each separately own two of the
    four fiber pairs in international waters, and an undivided one-half
    interest in the remaining portions of the cable in international
    waters.[^10]

4.  The system, including the two fiber pairs operated by GT Landing II,
    will continue to be operated on a non-common carrier basis. The
    system description, as well as the operational characteristics of
    the cable and the landing points, will remain unchanged.[^11]

5.  GT Landing II is a Delaware corporation and a wholly-owned
    subsidiary of Global Crossing North America, Inc. (formerly Frontier
    Corporation), a New York corporation, which, in turn, is a
    wholly-owned subsidiary of Global Crossing, Ltd., a Bermuda
    company.[^12] The only shareholder holding 10 percent or more in
    Global Crossing Ltd. is Pacific Capital Group, Inc., which is 100
    percent owned by Gary Winnick, a U.S. citizen, as owner and
    trustee.[^13]

6.  In the U.K., GT Landing II is affiliated with the landing party for
    the Atlantic Crossing cable system, which is an indirect
    wholly-owned subsidiary of Global Crossing, as well as the former
    Racal Telecom, which has been acquired by Global Crossing.[^14] The
    Commission has previously found that the AC-1 U.K. landing party is
    a start-up entity without market power.[^15] According to the
    Application, the former Racal Telecom, now known as Global Crossing
    (U.K.) Telecommunications Networks, operates a high-speed intercity
    fiber optic backbone in the U.K., has less than 50 percent market
    share in international transport, intercity facilities and services,
    and local access.[^16] According to the Applicants, under Section
    63.10 of the Commission\'s rules,[^17] Global Crossing U.K. is
    therefore considered non-dominant under the Commission's rules.

# Comments

7.  We placed the Application on public notice on May 19, 2000.[^18] No
    comments were received. Pursuant to Section 1.767(b) of the
    Commission's rules,[^19] the Cable Landing License Act, and
    Executive Order No. 10530, we informed the Department of State of
    the Modification request.[^20] The Department of State, after
    coordinating with the National Telecommunications and Information
    Administration and the Department of Defense, stated that it has no
    objection to approving the Joint Applicants' request to add GT
    Landing II as an additional licensee to the cable landing
    license.[^21]

# Discussion

8.  We grant the Joint Applicants' request to modify the cable landing
    license to add GT Landing II as a licensee. We conclude that adding
    GT Landing II to the U.S.-U.K. cable raises no competitive concerns,
    and does not provide a basis for altering the non-common carrier
    status of the cable. Specifically, we conclude that Global
    Crossing's ownership of two additional fiber pairs on the U.S.-U.K.
    route will not cause competitive concerns. A large number of cables
    have served the U.S.-U.K. route for some time, and more are coming
    on line.[^22] In addition, GT Landing II's affiliates in the United
    Kingdom lack market power. According to the Application, the Joint
    Applicants and their affiliates will separately own and operate
    their own fibers, will not jointly market capacity on the cable, and
    will not have any restrictions on how capacity will be offered.[^23]
    Joint Applicants assert that the cable's proposed structure will
    provide an efficient way for two non-dominant companies to share
    risk and deploy new and competitive facilities. Accordingly, we find
    that grant of the Application is in the public interest.

# Ordering Clauses

9.  Consistent with the foregoing and pursuant to the Cable Landing
    License Act and Executive Order 10530, IT IS ORDERED that the
    Application, File No. SCL-MOD-20000511-00018, IS GRANTED and the
    U.S.-U.K. cable landing license is MODIFIED to add GT Landing II
    Corp. as an additional licensee on the cable landing license.

10. This Modification of Cable Landing License does not modify any other
    terms or conditions imposed in the license.

11. This Order is issued under Section 0.261 of the Commission's rules,
    47 C.F.R. § 0.261, and is effective upon adoption. Petitions for
    reconsideration under Section 1.106 or applications for review under
    Section 1.115 of the Commission's rules, 47 C.F.R. §§ 1.106, 1.115,
    may be filed within 30 days of the date of public notice of this
    Order (see 47 C.F.R. § 1.4(b)(2)).

    FEDERAL COMMUNICATIONS COMMISSION

    Rebecca Arbogast

    Chief, Telecommunications Division

    International Bureau

[^1]: *See Level 3 International, Inc.* (File No.
    SCL-LIC-19990913-00019), DA 00-108 (IB/TD rel. Jan. 21, 2000).

[^2]: An Act Relating to the Landing and Operation of Submarine Cables
    in the United States, 47 U.S.C. §§ 34-39 (Cable Landing License
    Act).

[^3]: Exec. Ord. No. 10530 *reprinted as amended in* 3 U.S.C. § 301.

[^4]: On March 22, 2000, the Commission granted Level 3 and Level 3
    Landing's request for *pro forma* assignment of the cable landing
    license. *See* *Level 3 International, Inc.*, File No.
    SCL-ASG-20000310-00008.

[^5]: *See* Level 3 Landing Station, Inc. and GT Landing II Corp.,
    Application for Modification of License to Land and Operate in the
    United States a Private Fiber Optic Submarine Cable System Extending
    Between the United States and the United Kingdom, filed May 11, 2000
    (Application).

[^6]: *See* Application at 2.

[^7]: *Id*. at 4-5.

[^8]: *Id*. at 5.

[^9]: *Id.*

[^10]: *Id.*

[^11]: *Id.* at 3.

[^12]: *See* Application at 2.

[^13]: The holdings of Pacific Capital Group, Inc., (PCG) includes the
    holdings of GKW Unified Holdings, LLC, a company formed for the
    benefit of Gary Winnick and members of his family. PCG's percentage
    held also includes its interest in common stock issuable upon the
    exercise of certain warrants. *See* Application at Exhibit A.

[^14]: *Id.* at 5.

[^15]: *See Matter of SSI Atlantic Crossing LLC and GT Landing Corp.,*
    14 FCC Rcd 10492, para. 3 (IB/TD 1999).

[^16]: *See* Application at 6.

[^17]: 47 C.F.R. § 63.10.

[^18]: *See Non Streamlined International Applications Accepted for
    Filing*, Public Notice, Report No. TEL-00234NS (rel. May 19, 2000).

[^19]: 47 C.F.R. § 1.767(b).

[^20]: Letter from George Li, Deputy Chief, Telecommunications Division,
    International Bureau, Federal Communications Commission, to Steven
    Lett, Deputy U.S. Coordinator, Office of International
    Communications and Information Policy, U.S. Department of State (May
    19, 2000).

[^21]: Letter from Geoffrey W. Chapman, Acting United States
    Coordinator, International Communications and Information Policy,
    U.S. Department of State, to Donald Abelson, Chief, International
    Bureau, Federal Communications Commission (Sept. 22, 2000).

[^22]: The following cables currently serve the route: TAT-8, PTAT,
    TAT-9, TAT-11, TAT-12/13, Atlantic Crossing (AC-1), and Gemini. The
    following cables plan to serve the route: TAT-14, FLAG Atlantic-1,
    360atlantic, and Tycom Atlantic.

[^23]: *See* Application at 7.