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 PUBLIC  NOTICE  Federal  Communications  Commission  445  12  th  St.,  S.  W.  Washington,  D.  C.  20554  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 DA  02-  598 
 March  13,  2002 


 New  Submarine  Cable  Landing  License  Rules  Scheduled  to  Take  Effect  March  15 


 Existing  Licensees  Must  File  For  Modification  of  Cable  Landing  Licenses  To  Take  Advantage  of  Certain  Rules 


 On  December  14,  2001,  the  Commission  released  a  Report  and  Order  adopting  streamlined  procedures  for  processing  applications  for  submarine  cable  landing  licenses.  See  Review  of 
 Commission  Consideration  of  Applications  under  the  Cable  Landing  License  Act,  IB  Docket  No.  00-  106,  Report  and  Order,  16  FCC  Rcd  22167  (2001)  (Submarine  Cable  Report  and  Order). 
 The  rules  adopted  in  this  proceeding,  set  out  in  sections  1.767  and  1.768  of  the  Commissions  rules,  become  effective  March  15,  2002.  1  This  public  notice  provides  information  on  the  new 
 rules. 


 Pro  Forma  Rule 
 Existing  cable  landing  licenses  contain  a  condition  that  prohibits  the  assignment  or  transfer  of  an  interest  in  the  cable  landing  license  without  the  express  prior  approval  of  the  Commission.  See, 


 1  All  of  the  rules  adopted  in  this  proceeding  become  effective  on  March  15,  2002.  The  rules  were 
 published  in  the  Federal  Register  on  January  14,  2002.  Those  rules  containing  information  collections  were  subject  to  approval  by  the  Office  of  Management  and  Budge  (OMB).  OMB  approved  the 


 information  collections  on  February  19,  2002  (OMB  3060-  0944).  In  addition,  the  effective  date  of  the  rules  was  conditioned  upon  receipt  of  appropriate  correspondence  from  the  Executive  Branch  (see 
 Submarine  Cable  Report  and  Order  at  para.  80).  On  December  3,  2002,  the  Under  Secretary  of  State  for  Economic,  Business,  and  Agricultural  Affairs  approved  new,  streamlined  procedures  for  the  Department 
 of  States  review  of  submarine  cable  landing  license  applications  submitted  to  the  Commission,  and  authorized  the  Commission  to  grant  or  revoke  all  such  applications,  provided  that  the  Commission  has 
 notified  in  writing  the  United  States  Coordinator  for  International  Communications  and  Information  Policy  of  each  such  license  application  and  that  no  objections  are  raised  by  the  Department  within  30  days 
 after  such  notification.  See  Streamlined  Procedures  for  Executive  Branch  Review  of  Submarine  Cable  Landing  License  Requests,  Media  Note  (Revised)  (rel.  Dec.  20,  2001),  at 
 www.  state.  gov/  r/  pa/  prs/  ps/  2001/  index.  cfm?  docid+  6951. 
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 e.  g.,  Japan-  U.  S.  Cable,  Cable  Landing  License,  15  FCC  Rcd  24056  (2000),  at  para.  28(  5).  In  codifying  the  routine  cable  conditions  into  its  new  rules  at  section  1.767(  g),  the  Commission  has 
 provided  a  limited  exception  to  the  prior  approval  requirement,  permitting  post-  transaction  notification  of  pro  forma  assignments  and  transfers  of  control  of  interests  in  submarine  cable 
 landing  licenses.  See  47  C.  F.  R.  1.767(  g)(  7). 


 1.  Applicability  to  New  Licenses.  The  new  pro  forma  rule  will  apply  to  submarine  cable  systems  licensed  on  or  after  March  15,  2002. 


 2.  Applicability  to  Existing  Licenses.  The  Submarine  Cable  Report  and  Order  provides  that  licensees  of  submarine  cable  systems  licensed  prior  to  March  15,  2002  MAY  NOT  substitute 
 post-  transaction  notification  for  prior  approval  of  pro  forma  transactions  UNTIL  they  have  followed  the  procedures  set  out  in  para.  63  of  the  Commissions  Report  and  Order.  Para.  63 
 permits  a  licensee  to  file  an  application  with  the  Commission  seeking  a  modification  of  an  existing  cable  landing  license  to  incorporate  this  limited  pro  forma  exception  to  the  prior 
 approval  requirement.  For  the  convenience  of  licensees,  para.  63  is  reprinted  below. 


 63.  For  cable  landing  licenses  granted  prior  to  the  effective  date  of  this  Report  and  Order,  a  licensee  may  file  an  application  with  the  Commission  seeking  a  modification  of  its 
 license  to  incorporate  this  limited  exception  to  the  prior  approval  requirements  currently  set  forth  in  the  applicable  license  condition.  The  application  should  identify 
 the  cable  landing  license  by  its  name  and  file  number,  list  all  licensees,  reference  the  new  pro  forma  rule  we  adopt  herein,  and  state  that  each  licensee  accepts  and  will  abide 
 by  the  provisions  of  the  new  pro  forma  rule.  Each  licensee  or  joint  licensee  must  sign  the  application.  The  application  should  be  captioned,  Cable  Landing  License 
 Modification    Request  to  Add  Pro  Forma  Condition,  and  should  be  addressed  to  the  Secretary  of  the  Commission,  with  a  copy  to  the  Chief,  International  Bureau.  The 
 Commission  will  forward  these  applications  to  the  Department  of  State  for  approval  consistent  with  Executive  Order  No.  10530,  following  which  the  Commission  will 
 grant  the  modifications.  Licensees  interested  in  effecting  this  modification  to  their  cable  landing  licenses  at  the  earliest  possible  date  should  file  these  applications  with 
 the  Commission  within  30  days  of  the  effective  date  of  this  Report  and  Order. 


 3.  Para.  63  Procedures.  Licensees  seeking  to  amend  their  cable  landing  licenses  to  incorporate  the  new  pro  forma  rule  should  follow  the  procedures  set  out  in  para.  63  of  the  Report  and 
 Order.  Joint  licensees  should  take  particular  note  that  ALL  joint  licensees  on  a  cable  landing  license  must  sign  the  application  to  modify  the  condition.  As  noted,  the  International  Bureau 
 will  forward  the  applications  to  the  Department  of  State  and,  once  the  Bureau  has  granted  modifications,  will  maintain  a  list  of  those  cables  for  which  pro  forma  assignments  and 
 transfers  do  not  require  prior  approval.  Applications  for  modifications  received  by  April  15  will  receive  priority  processing.  Licensees  that  do  not  file  an  application  for  modification  by 
 April  15  nonetheless  may  file  such  applications  at  a  later  date. 


 4.  Section  1.767(  g)(  7)  Procedures.  Licensees  for  cable  landing  licenses  granted  on  or  after  March  15,  2002,  and  existing  licensees  whose  applications  to  modify  their  existing  licenses 
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 to  include  the  new  pro  forma  rule  are  granted,  should  be  cognizant  of  the  new  rules  procedural  requirements.  New  section  1.767(  g)(  7)  reads  as  follows: 
 A  pro  forma  assignee  or  a  person  or  company  that  is  the  subject  of  a  pro  forma  transfer  of  control  of  a  cable  landing  license  is  not  required  to  seek  prior  approval  for  the  pro  forma 
 transaction.  A  pro  forma  assignee  or  person  or  company  that  is  the  subject  of  a  pro  forma  transfer  of  control  must  notify  the  Secretary,  Federal  Communications  Commission, 
 Washington,  D.  C.  20554,  with  a  copy  to  the  Chief,  International  Bureau,  Federal  Communications  Commission,  no  later  than  thirty  (30)  days  after  the  assignment  or 
 transfer  of  control  is  consummated.  The  notification  may  be  in  the  form  of  a  letter  (in  duplicate  to  the  Secretary),  and  it  must  contain  a  certification  that  the  assignment  or 
 transfer  of  control  was  pro  forma,  as  defined  in    63.24(  a)  of  this  chapter,  and,  together  with  all  previous  pro  forma  transactions,  does  not  result  in  a  change  of  the  licensees 
 ultimate  control.  A  single  letter  may  be  filed  for  an  assignment  or  transfer  of  control  of  more  than  one  license  issued  in  the  name  of  a  licensee  if  each  license  is  identified  by  the 
 file  number  under  which  it  was  granted. 


 The  Commission  will  maintain  copies  of  these  notifications  in  its  reference  room. 
 No  Special  Concessions  Rule 
 The  Report  and  Order  also  adopted  a  no  special  concessions  rule  that  is  narrower  in  scope  than  the  no  exclusive  arrangements  condition  attached  to  existing  cable  landing  licenses.  See 
 Submarine  Cable  Report  and  Order  at  paras.  31-  33;  see  also  47  C.  F.  R.    1.767(  g)(  5). 


 1.  Applicability  to  New  Licenses.  The  new  no  special  concessions  rule  is  applicable  to  submarine  cable  landing  licenses  granted  on  or  after  March  15,  2002. 


 2.  Applicability  to  Existing  Licenses.  For  submarine  cable  systems  licensed  prior  to  March  15,  2002,  licensees  MAY  NOT  substitute  the  new  no  special  concessions  rule  for  the  no 
 exclusive  arrangements  conditions  in  their  licenses  UNTIL  they  have  followed  the  procedures  set  out  in  para.  33  of  the  Commissions  Report  and  Order.  Para.  33  permits  a 
 licensee  to  file  an  application  with  the  Commission  seeking  a  modification  of  an  existing  cable  landing  license  to  substitute  this  more  narrowly  targeted  safeguard  for  the  prohibition 
 against  exclusive  arrangements  currently  set  forth  in  the  license.  For  the  convenience  of  licensees,  para.  33  is  printed  below: 


 33.  For  cable  landing  licenses  granted  prior  to  the  effective  date  of  this  Report  and  Order,  a  licensee  may  file  an  application  with  the  Commission  seeking  a  modification  of  its 
 license  to  substitute  this  more  narrowly  targeted  safeguard  for  the  prohibition  against  exclusive  arrangements  currently  set  forth  in  the  license.  The  application  should 
 identify  the  cable  landing  license  by  its  name  and  file  number,  list  all  licensees,  reference  the  new  no  special  concessions  rule  we  adopt  herein,  and  state  that  each 
 licensee  accepts  and  will  abide  by  the  provisions  of  the  new  rule.  Each  licensee  or  joint  licensee  must  sign  the  application.  The  application  should  be  captioned,  Cable 
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 Landing  License  Modification    Request  to  Modify  No  Exclusive  Arrangements  Condition,  and  should  be  addressed  to  the  Secretary  of  the  Commission,  with  a  copy 
 to  the  Chief,  International  Bureau.  The  Commission  will  place  these  applications  on  public  notice  and  forward  them  to  the  Department  of  State  for  its  consideration 
 consistent  with  Executive  Order  No.  10530,  following  which  the  Commission  will  act  on  the  applications  either  by  public  notice  or  by  formal  written  order  if  it  is  necessary 
 to  address  any  significant  issues  in  writing.  Licensees  interested  in  effecting  this  modification  to  their  cable  landing  licenses  at  the  earliest  possible  date  should  file 
 these  applications  with  the  Commission  within  30  days  of  the  effective  date  of  this  Report  and  Order. 


 3.  Para.  33  Procedures.  Licensees  seeking  to  amend  their  cable  landing  licenses  to  incorporate  the  new  no  special  concessions  rule  should  follow  the  procedures  set  out  in  para.  33  of  the 
 Report  and  Order.  Joint  licensees  should  take  particular  note  that  ALL  joint  licensees  on  a  cable  landing  license  must  sign  the  application  to  modify  the  condition.  As  noted,  the 
 International  Bureau  will  forward  the  applications  to  the  Department  of  State  and,  once  the  Bureau  has  granted  modifications,  will  maintain  a  list  of  those  cables  to  which  the  new  no 
 special  concessions  rule  applies.  Applications  for  modifications  received  by  April  15  will  receive  priority  processing.  Licensees  that  do  not  file  an  application  for  modification  by 
 April  15  nonetheless  may  file  such  applications  at  a  later  date. 


 Required  Applicants  and  Licensees 
 The  Report  and  Order  limits  entities  required  to  become  applicants,  and  thus  licensees,  to  those  entities  that  own  or  control  a  U.  S.  landing  station  or  own  or  control  a  five  percent  or  greater 
 interest  in  a  cable  system  and  use  the  U.  S.  points  of  the  cable  system.  See  Submarine  Cable  Report  and  Order  at  paras.  53-  60.  This  is  a  change  in  Commission  practice,  which  previously 
 required  all  entities  using  the  U.  S.  end  of  the  cable  to  be  applicants. 


 1.  Identification  of  All  Original  Owners.  We  continue  to  require  applicants  for  a  cable  landing  license  to  identify  all  original  owners,  including  those  with  less  than  five  percent  interests. 
 See  Submarine  Cable  Report  and  Order  at  para.  54;  see  also  47  C.  F.  R.    1.767(  a)(  7). 


 2.  Applications  to  Relinquish  Interests  in  a  Cable  Landing  License.  Once  an  applicant  becomes  a  licensee,  it  is  subject  to  the  Commissions  rules  for  modifications,  assignments  and 
 transfers  of  control  of  interests  in  cable  landing  licenses,  even  where  these  interests  are  less  than  five  percent.  The  Commissions  rules  retain  the  routine  condition  of  every  license 
 requiring  the  licensees  to  maintain  de  jure  and  de  facto  control  of  the  U.  S.  portion  of  the  cable  system,  sufficient  to  comply  with  the  requirements  of  the  Commissions  rules  and  any 
 specific  license  conditions.  A  licensee  that  does  not  own  or  control  a  U.  S.  landing  station  and  has  less  than  a  five  percent  interest  in  the  cable  may  file  an  application  to  relinquish  its 
 interests  in  a  license,  but  must  serve  a  copy  of  its  application  on  each  other  joint  licensee  of  the  cable  system.  This  service  requirement  provides  each  other  joint  licensee  with  specific 
 notice  and  opportunity  to  consider  whether  grant  of  the  application  would  affect  the  ability  of  the  joint  licensees  to  comply  with  the  routine  condition  to  maintain  control  of  the  U.  S. 
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 portion  of  the  cable  system.  See  Submarine  Cable  Report  and  Order  at  para.  59;  see  also  47  C.  F.  R.    1.767(  m)(  2). 
 Applications  Requesting  Streamlined  Procedures 
 Applicants  that  request  streamlined  processing  of  their  cable  landing  license  applications  should  follow  the  procedures  and  requirements  set  out  in  47  C.  F.  R.    1.767(  j)-(  l),  in  addition  to  the 
 other  requirements  of  the  rules. 


 Notifications  of  Foreign  Carrier  Affiliations 
 All  cable  landing  licensees,  including  those  licensed  prior  to  March  15,  2002,  are  required  by  new  rule  1.768  to  notify  the  Commission  of  their  affiliations  with  carriers  that  operate  on  the 
 foreign  end(  s)  of  the  U.  S.-  licensed  submarine  cable.  Certain  affiliations  require  prior  approval  by  the  Commission.  Licensees  should  review  new  rule  1.768  carefully  to  ensure  compliance 
 with  its  provisions. 


 International  Bureau  contacts:  Peggy  Reitzel,  Kathleen  Collins  or  David  Krech  at  202-  418-  1460. 
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