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 Federal  Communications  Commission  DA  00-  1184 
 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: 
 I.  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  Commissions  rules,  2  to  upgrade  an  existing  private  line  circuit  between  an  authorized 
 internat  ional  earth  station  in  Franklin,  New  Jersey  and  an  INTELSAT  At  lant  ic  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  Sprints  existing 
 facilities  to  provide  authorized  international  private  line  services  on  the  U.  S.-  Cuba  route. 

 II.  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 

 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). 
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 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 
 A.  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  Branchs  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 

 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. 
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 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  Sprints  operating  agreement  with 
 ETECSA  is  already  on  file  with  the  Commission  under  Sprints  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  wit  h  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. 

 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  Sprints  foreign  correspondent,  ETECSA,  has  agreed  to  activate  the  proposed  circuit  on  the  Cuban  end). 

 12  The  Commissions  international  dominant  carrier  safeguards  are  set  forth  in  Section  63.  10(  c)-(  d)  of  the 
 Commissions  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. 
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 IV.  Other  Considerations 
 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 
 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  Commissions  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 
 internat  ional  earth  station  in  Franklin,  New  Jersey  and  an  INTELSAT  At  lant  ic  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  Sprints  existing  facilities 
 providing  authorized  international  private  line  services  on  the  U.  S.-  Cuba  route. 

 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). 
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 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  Commissions  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  Commissions  rules,  is  effective  upon  release.  Petitions  for  reconsideration  under  Section 
 1.106  or  applications  for  review  under  Section  1.115  of  the  Commissions  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 
5