Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Rules and Regulations 60113 

SUMMARY: This document makes 

clarifications and corrections to the 

service rules for the 746–764 and 776– 

794 MHz bands, as published at 65 FR 

3139, January 20, 2000, and at 65 FR 

17594, April 4, 2000. 

DATES: Effective October 10, 2000. 

FOR FURTHER INFORMATION CONTACT: Jane 

Phillips, 202–418–1310. 

SUPPLEMENTARY INFORMATION: The 

Commission, in the final rules of the 

First Report and Order (65 FR 3139, 

January 20, 2000), and the Second 

Report and Order, (65 FR 17594, April 

4, 2000) inadvertently failed to make 

specific reference to the definitional 

criterion for the Gulf of Mexico 

Economic Area presently set forth in 

§ 27.6(a)(2). 

In rule FR Doc. No. 00–8144 

published on April 4, 2000 (65 FR 

17594) make the following correction. 

§ 27.6 [Corrected] 

1. On page 17602, in the third 

column, in § 27.6(b)(1) correct 

‘‘paragraph (a)(1)’’ to read ‘‘paragraphs 

(a)(1) and (a)(2)’’. 

In rule FR Doc. No. 00–1332 

published on January 20, 2000 (65 FR 

3139) make the following correction. 

2. On page 3145, in the third column, 

in § 27.6(b)(2), line 7, after the words 

‘‘See also’’ add the phrase ‘‘paragraphs 

(a)(1) and (a)(2) of this section and’’. 

Federal Communications Commission. 

William F. Caton, 

Deputy Secretary. 

[FR Doc. 00–25808 Filed 10–6–00; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 63 

[IB Docket No. 97–142, FCC 00–339] 

Rules and Policies on Foreign 

Participation in the U.S. 

Telecommunications Market 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rules. 

SUMMARY: This document addresses 

specific issues raised in petitions 

requesting clarification and 

reconsideration of the Commission’s 

decisions in the initial Report and Order 

in this proceeding. This document also 

clarifies and revises certain aspects of 

the Commission’s rules regarding prior 

notifications of foreign affiliations. This 

document also amends the rules to 

define ‘‘interlocking directorates’’ and to 

cross-reference the Commission’s prior 

notification requirements. The final 

rules contain information collections 

subject to the Paperwork Reduction Act 

of 1995 (PRA), Public Law 104–13. It 

has been submitted to the Office of 

Management and Budget (OMB) for 

review under the PRA. OMB, the 

general public and other Federal 

agencies are invited to comment on the 

information collections contained in the 

final rule. 

EFFECTIVE DATE: Effective November 9, 

2000 except for section 63.11 which 

contains modified information 

collections that have not been approved 

by the Office of Management and 

Budget (OMB). The Commission will 

publish a document in the Federal 

Register announcing the effective date 

of that section. Written comments by the 

public on the information collection 

requirements are due October 24, 2000. 

OMB must submit written comments on 

the information collection requirements 

on or before December 11, 2000. 

ADDRESSES: All comments regarding the 

requests for approval of the information 

collection, both regular and emergency, 

should be submitted to Judy Boley, 

Federal Communications Commission, 

Room 1–C804, 445 12th Street, SW, 

Washington, DC 20554, or via the 

Internet to jboley@fcc.gov; phone 202– 

418–0214. In addition, comments on the 

emergency request for approval of the 

information collections should be 

submitted to Edward C. Springer, OMB 

Desk Officer, Room 10236 NEOB, 725 

17th Street, NW, Washington, DC 20503 

or via the Internet to 

edward.springer@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: Lisa 

Choi, Policy and Facilities Branch, 

Telecommunications Division, 

International Bureau, (202) 418–1384. 

For additional information concerning 

the information collections contained in 

this document contact Judy Boley at 

(202) 418–0214, or email at 

jboley@fcc.gov., and Edward C. 

Springer, OMB Desk Officer, Room 

10236 NEOB, 725 17th Street, NW, 

Washington, DC 20503 or via the 

Internet to 

edward.springer@omb.eop.gov. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Order on 

Reconsideration, FCC 00–339, adopted 

on September 12, 2000 and released on 

September 19, 2000. The full text of this 

document is available for inspection 

and copying during normal business 

hours in the FCC Reference Center 

(Room CY–A257) of the Federal 

Communications Commission, 445 12th 

Street, SW, Washington, DC 20554. The 

document is also available for download 

over the Internet at http://www.fcc.gov/ 

Bureaus/International/Notices/2000/ 

fcc00339.doc. The complete text of this 

document also may be purchased from 

the Commission’s copy contractor, 

International Transcription Service, 

Inc., 1231 20th Street, N.W., 

Washington, D.C. 20036, (202) 857– 

3800. 

This document contains modified 

information collections subject to the 

Paperwork Reduction Act of 1995 

(PRA), Public Law 104–13. 

Implementation of any modified 

requirements will be subject to approval 

by the Office of Management and 

Budget (OMB) for review under the 

PRA’s emergency processing provisions. 

OMB, the general public, and other 

Federal agencies are invited to comment 

on the proposed information collections 

contained in this proceeding. 

Summary of Order on Reconsideration 

1. On November 25, 1997, the 

Commission adopted a Report and 

Order and Order on Reconsideration 

(Foreign Participation Order (62 FR 

64741. Dec. 9, 1997). The Foreign 

Participation Order established the 

Commission’s procompetitive rules and 

policies regarding foreign participation 

in the U.S. telecommunications market. 

In light of the Word Trade Organization 

(WTO) basic Telecom Agreement and 

WTO Members’ commitments to open 

markets, the Commission adopted rules 

to open further the U.S. market to 

competition from foreign companies. On 

September 12, 2000, the Commission 

adopted an Order on Reconsideration 

(Order) that addressed the petitions 

seeking clarification and 

reconsideration of the Foreign 

Participation Order. In this Order, the 

Commission found that its competitive 

safeguards and ability to attach 

additional conditions to grants of 

authority, in conjunction with the 

procompetitive commitments of WTO 

Members would reduce the danger of 

anticompetitive conduct resulting from 

entry of carriers from WTO Members 

into the U.S. Market. 

2. Specifically, the Commission 

affirmed its prior conclusion that it is 

under no obligation to impose the same 

entry standard with regard to WTO 

Members’ participation in the U.S. 

telecommunications market to Bell 

Operating Company (BOC) entry into inregion interLATA services markets 

pursuant to section 271. The 

Commission concluded that no new 

information or arguments were 

presented for it to revisit the initial 

conclusion that the public interest 

presumption established in the Foreign 


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60114 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Rules and Regulations 

Participation Order does not apply with 

regard to BOC entry into in-region 

interLATA markets. The Commission 

also noted that it has separately 

addressed the nature of its public 

interest analysis in its evaluations of 

BOC applications filed pursuant to 

section 271. 

3. The Commission affirmed, 

clarified, and revised the requirement 

for prior notification of controlling 

investments by U.S. carriers in foreign 

carriers and of controlling investments 

of greater than twenty-five percent 

capital stock investments by foreign 

carriers in U.S. carriers. Although the 

Commission rejected a request to 

eliminate the prior notification 

requirement for U.S. carrier controlling 

investments in foreign carriers, the 

Commission did clarify and revise 

§ 63.11 to address more precisely the 

underlying purpose for the provision 

and to reduce unnecessary regulatory 

burdens. 

4. Specifically, the Commission will 

continue to require prior notification of 

a U.S. carriers’ controlling investment in 

a foreign carrier or a foreign carrier’s 

controlling or greater than twenty-five 

percent investment in a U.S. carrier 

with the exception that prior 

notification is not required if one of the 

following is true for the foreign carrier: 

(1) the foreign carrier is one that the 

Commission has previously determined 

in an adjudication lacks market power 

in destination markets authorized to be 

served by the U.S. carrier; (2) the foreign 

carrier is a resale carrier in such 

markets; or (3) the destination markets 

in which the foreign carrier is 

authorized to operate are WTO Members 

and the authorized carrier either 

demonstrates that it should retain nondominant classification on the newlyaffiliated routes pursuant to § 63.10 or 

the authorized carrier agrees to comply 

with the Commission’s dominant carrier 

safeguards on those routes. 

5. Authorized carriers that intend to 

rely on one of the exceptions to the 

prior notification rule are required to 

submit a certification with the 

Commission as part of its notification 

indicating upon which exception it is 

rely and certifying as to the factual basis 

for the qualification. In addition, the 

Commission modified the prior 

notification requirement so that such 

prior notifications must be filed fortyfive days rather than sixty days prior to 

the consummation of the acquisition in 

order to respond to carriers’ concerns 

that that sixty days is overly 

burdensome. 

6. In addition, the Commission 

revised the rules to provide U.S. carriers 

with the opportunity to file 

confidentially the information requested 

by the Commission as part of their prior 

notifications of affiliation. Carriers are 

permitted to request in an 

accompanying cover letter that the 

Commission maintain confidential 

treatment of the prior notification 

information for twenty days, after which 

date the carrier agrees to public 

treatment of such information. The 

Commission will then place the 

notification on pubic notice twentyfives days prior to the planned 

consummation of the investment. The 

revised rule will provide ample 

opportunity for public comment while 

alleviating carriers’ concerns about the 

time burden and difficulty of 

maintaining the confidentiality of 

sensitive transactions. 

7. The Commission also amended 

§ 63.11 to permit the Commission to 

classify an authorized carrier as 

dominant by a public notice, rather than 

by written order, in circumstances in 

which the authorized carrier agrees to 

abide by dominant carrier regulation on 

an affiliated route. This amendment will 

reduce further regulatory burdens on 

carriers and administrative burdens on 

the Commission. 

8. The Commission also modified the 

content of notifications of affiliation to 

include a statement by an authorized 

carrier as to whether the notification is 

subject to prior notification (including 

the date of projected closing) or post 

notification (including the actual date of 

closing). In order to facilitate processing 

of notifications and transfer of control or 

assignment applications, authorized 

carriers are required to cross-reference 

their applications and foreign carrier 

affiliation notifications. Similarly, with 

respect to the content of postnotifications of affiliation, carriers may 

not notify the Commission of a 

proposed affiliation with a foreign 

carrier in the context of a transfer of 

control or initial § 63.18 application in 

order to discharge their notification 

obligations under § 63.11. The 

Commission revised the rules to clarify 

that carriers are responsible for the 

continuing accuracy of the contents of 

their prior notifications during the fortyfive day notice period and are 

responsible on an on-going basis for 

complying with the requirement for 

notifying the Commission of their 

affiliations with foreign carriers. 

9. In light of recent rule changes in 

other proceedings, the Commission 

narrowed the definition of ‘‘interlocking 

directorates’’ as those persons having 

any of the duties ordinarily performed 

by a director, president, vice president, 

secretary, treasurer, or other officer of 

the carrier. In addition, authorized 

carriers are required to identify only 

their interlocking directorates with the 

foreign carriers that are the subject of 

the notifications. 

10. The Commission clarified and 

revised the provision in § 63.11(e)(2) 

prohibiting the consummation of an 

investment pending Commission 

approval. Authorized carriers that 

acquire affiliations subject to the revised 

§ 63.11 with carriers in non-WTO 

Members are required to demonstrate 

that the foreign carrier lacks market 

power or is a resale carrier, or to make 

an ECO showing in order to continue to 

operate on the applicable route. 

Otherwise, an authorized carrier risks 

having its authorization revoked. 

11. The Commission found moot a 

request to reconsider its decision 

regarding the ‘‘No Special Concessions’’ 

rule and discontinue its practice of 

placing a special condition on BOC 

affiliate section 214 authorizations with 

respect to ‘‘grooming arrangements’’ 

(arrangements to terminate traffic in 

particular geographic regions). The 

Commission stated that the rule changes 

adopted in the ISP Reform Order (64 FR 

34734, June 29, 1999) addressed this 

issue. 

12. The Commission also denied the 

request to reconsider the language in the 

Foreign Participation Order referring to 

the Commission’s ability to designate 

cable operators as common carriers. The 

Commission found that this proceeding 

was not the appropriate forum to 

address this concern. Rather, the 

Commission noted that the regulatory 

distinction between common carrier and 

non-common carrier submarine cables is 

at issue in the Submarine Cable 

Streamlining proceeding (65 FR 411613, 

June 6, 2000). 

13. The Commission also rejected a 

request to modify its rebuttable 

presumption regarding the market 

power of a foreign carrier from a WTO 

Member. The Commission concluded 

that it had fully considered and rejected 

a similar proposal in the Foreign 

Participation Order. 

14. In addition, the Commission 

addressed issues regarding dominant 

carrier safeguards for foreign-affiliated 

U.S. carriers. First, the Commission 

declined to remove the dominant carrier 

safeguards that apply to each U.S. 

carrier having an affiliation with a 

carrier that possesses market power on 

the route. In the Foreign Participation 

Order, the Commission adopted a 

narrowly-tailored dominant carrier 

framework designed to address specific 

concerns of anticompetitive behavior 

while limiting the regulatory burden 

imposed generally on foreign-affiliated 

U.S. carriers. These policies and 


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Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Rules and Regulations 60115 

safeguards also were consistent with the 

United States’ GATS obligations. The 

Commission found that no new 

arguments were presented for it to 

reconsider this issue. Second, the 

Commission reaffirmed its decision to 

continue to allow dominant foreignaffiliated carriers to file tariffs on oneday’s notice and add or discontinue 

circuits on foreign-affiliated routes 

without prior approval. The 

Commission held that it had fully 

considered and dismissed these 

arguments in the Foreign Participation 

Order. 

15. The Commission also denied a 

request to extend its deregulatory 

approach regarding section 310(b)(4) 

requests to the treatment of broadcast 

licenses. The Commission found that 

this matter was not at issue in the 

Foreign Participation Order, and 

therefore, this proceeding was not the 

proper forum to revisit this issue. 

16. The Commission also rejected a 

request to broaden the application of the 

Benchmarks Order (62 FR 45758, 

August 29, 1997). Specifically, the 

Commission was asked to impose a 

condition on switched resale 

authorizations to serve foreign-affiliated 

markets on the foreign carrier offering 

U.S. authorized carriers a settlement 

rate for the affiliated route that is at or 

below the relevant benchmark rate. The 

Commission found that it had fully 

considered and reject this issue in the 

Foreign Carrier Participation Order. The 

Commission also noted that the 

Benchmarks Reconsideration Order (64 

FR 47699, September 1, 1999) further 

narrowed the section 214 condition on 

facilities-based carriers so that it 

currently applies only to the provision 

of facilities-based switched and private 

line service to foreign-affiliated markets 

where the foreign affiliate possesses 

market power. 

17. Finally, the Commission rejected 

the request that it reconsider that 

aeronautical enroute service is a basic 

telecommunications service. The 

Commission stated that although it has 

treated aeronautical enroute and fixed 

services as private services, they still 

fall within the class of services covered 

by U.S. commitments in the WTO. 

Thus, the Commission reaffirmed its 

conclusion that some aeronautical 

enroute and fixed services are basic 

telecommunications services under the 

WTO Basic Telecom Agreement. 

Procedural Matters 

18. Final Regulatory Flexibility 

Certification. The purposes of this 

proceeding are to adopt a liberalized 

standard for participation by foreign and 

foreign-affiliated entities in the U.S. 

telecommunications market, to 

eliminate some regulatory requirements, 

and to simplify and clarify other 

existing rules. The modifications do not 

impose any additional compliance 

burden on persons dealing with the 

Commission, including small entities. 

Any prospective carrier will continue to 

submit foreign carrier affiliation 

notifications. In most cases, the 

notifications will be filed after the 

consummation of the investment 

resulting in a foreign carrier affiliation. 

We anticipate that the revisions we 

adopt here will expand the ability of 

U.S. carriers to reap economic benefits 

by taking advantage of new 

opportunities in the international 

telecommunications marketplace. 

19. The Regulatory Flexibility Act 

(RFA), 5 U.S.C. 601 et seq., requires that 

an agency prepare a regulatory 

flexibility analysis for notice-andcomment rulemaking proceedings, 

unless the agency certifies that ‘‘the rule 

will not, if promulgated, have a 

significant economic impact on a 

substantial number of small entities.’’ 

The rule changes adopted in this order 

only affect the timing of the submission 

of foreign carrier affiliation 

notifications. These changes do not 

impose additional compliance burdens 

on small entities nor do they alter the 

small entities possibly affected by the 

rules published in the Foreign 

Participation Order. The rules adopted 

in this order would not have a 

detrimental impact on small entities. In 

fact, we anticipate that the rule changes 

we adopt here will reduce regulatory 

and procedural burdens on small 

entities. Therefore, we certify, pursuant 

to section 605(b) of the RFA, that the 

rules adopted herein will not have a 

significant economic impact on a 

substantial number of small entities. 

20. The Commission will send a copy 

of the Order on Reconsideration, 

including a copy of this final 

certification, in a report to congress 

pursuant to SBREFA (5 U.S.C. 

801(a)(1)(A)). In addition, the Order on 

Reconsideration and this certification 

will be sent to the Chief Counsel for 

Advocacy of the Small Business 

Administration, and will be published 

in the Federal Register. 

21. Paperwork Reduction Act 

Analysis. The Commission, as part of its 

continuing effort to reduce paperwork 

burden, invites the general public and 

other Federal agencies to take this 

opportunity to comment on the 

following information collection, as 

required by the Paperwork Reduction 

Act of 1995, Public Law 104–13. An 

agency may not conduct or sponsor a 

collection of information unless it 

displays a currently valid control 

number. No person shall be submit to 

any penalty for failing to comply with 

a collection of information subject to the 

Paperwork Reduction Act that does not 

display a valid control number. 

Comments on emergency request for 

approval of information collections are 

due on or before October 24, 2000. 

Public and agency comments on the 

regular request for approval of the 

information collections are due 

proposed and/or modified information 

collections are due on or before 

December 11, 2000. 

Comments should address the 

following: (a) Whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the Commission, including 

whether the information shall have 

practical utility; (b) the accuracy of the 

Commission’s burden estimate; (c) ways 

to enhance the quality, utility, and 

clarity of the information collected; and 

(d) ways to minimize the burden of the 

collection of information on the 

respondents, including the use of 

automated collection techniques or 

other forms of information technology. 

OMB Control Number: 3060–0686. 

Title: Streamlining the International 

Section 214 Authorization Process and 

Tariff Requirements. 

Form Number: N/A. 

Type of Review: Revisions to existing 

collection. 

Respondents: Business and other forprofit entities. 

Number of Respondents: 60. 

Number of Responses: 1. 

Estimated Time Per Response: 8 

hours. 

Frequency of Response: On Occasion. 

Total Annual Burden: 480 hours (50% 

of burden estimated to be contracted to 

outside assistance). 

Total Annual Costs: $36,000. 

Needs and Uses: The information will 

be used by the Commission to assess the 

potential impact of a U.S. carrier’s 

acquisition or affiliation with a foreign 

carrier. The information will enable the 

Commission to determine what 

safeguards may need to apply or what 

other Commission action may be 

necessary with regard to the authorized 

carrier’s section 214 authorization to 

serve the affiliated route. The 

information collections are necessary for 

the Commission to protect the public 

interest from the harm and competitive 

distortion that could arise in the U.S. 

market from the presence of a new 

controlling foreign affiliation. In 

addition, the Commission must 

maintain records that accurately reflect 

a party or parties that control a carrier’s 

operations, particularly for purposes of 


rmajette on DSK29S0YB1PROD with RULES
60116 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Rules and Regulations 

enforcing the Commission’s rules and 

policies. 

Ordering Clauses 

22. Pursuant to Sections 1, 2, 4(i), 201, 

203, 205, 214, 303(r), 309, and 310 of 

the Communications Act of 1934, as 

amended, 47 U.S.C. 151, 152, 154(i), 

201, 203, 205, 214, 303(r), 309, 310 and 

Parts 43 and 63 of the Commission’s 

rules, 47 CFR 43, 63, that the Order on 

Reconsideration in IB Docket No. 97– 

142 is adopted. 

23. 47 CFR Part 63 is amended as set 

forth in the rule changes, effective 

November 9, 2000 except for section 

63.11 which contains modified 

information collections that have not 

been approved by the Office of 

Management and Budget (OMB). The 

Commission will publish a document in 

the Federal Register announcing the 

effective date of that section. Written 

comments by the public on the 

information collection requirements are 

due October 24, 2000. OMB must 

submit written comments on the 

information collection requirements on 

or before December 11, 2000. 

24. The Petitions for Reconsideration 

filed by ARNIC, BellSouth, KDD, MCI, 

PanAmSat, SBC, and Sidak are denied, 

as described herein. 

25. The Commission’s Consumer 

Information Bureau, Reference 

Information Center, shall send a copy of 

this Order on Reconsideration, 

including the Final Regulatory 

Flexibility Certification, to the Chief 

Counsel for Advocacy of the Small 

Business Administration. 

26. The policies, rules, and 

requirements, established in this 

decision shall take effect thirty days 

after publication in the Federal Register 

except for the rules in section 63.11 

which contains modified information 

collections that have not been approved 

by the Office of Management and 

Budget (OMB). 

List of Subjects in 47 CFR Part 63. 

Communications common carriers, 

reporting and recordkeeping 

requirements, 

Federal Communications Commission. 

William F. Caton, 

Deputy Secretary. 

Rule Changes 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission amends 47 CFR Part 63 as 

follows: 

PART 63—EXTENSION OF LINES, NEW 

LINES, AND DISCONTINUANCE, 

REDUCTION, OUTAGE AND 

IMPAIRMENT OF SERVICE B COMMON 

CARRIERS; AND GRANTS OF 

RECOGNIZED PRIVATE OPERATING 

AGENCY STATUS 

1. The authority citation for part 63 

continues to read as follows: 

Authority: Section 1, 4(I), 4(j), 10, 11, 201– 

205, 214, 218, 403 and 651 of the 

Communications Act of 1934, as amended, 

47 U.S.C. 151, 154(i), 154(j), 160, 201–205, 

214, 218, 403, and 571, unless otherwise 

noted. 

2. Section 63.09 is amended by 

adding paragraph (g) to read as follows: 

§ 63.09 Definitions applicable to 

international Section 214 authorizations. 

* * * * * 

(g) As used in this part, the term: 

(1) Interlocking directorates shall 

mean persons or entities who perform 

the duties of ‘‘officer or director’’ in an 

authorized U.S. international carrier or 

an applicant for international Section 

214 authorization who also performs 

such duties for any foreign carrier. 

(2) Officer or director shall include 

the duties, or any of the duties, 

ordinarily performed by a director, 

president, vice president, secretary, 

treasurer, or other officer of a carrier. 

* * * * * 

3. Section 63.11 is revised to read as 

follows: 

§ 63.11 Notification by and prior approval 

for U.S. international carriers that are or 

propose to become affiliated with a foreign 

carrier. 

If a carrier is authorized by the 

Commission (‘‘authorized carrier’’) to 

provide service between the United 

States and a particular foreign 

destination market and it becomes, or 

seeks to become, affiliated with a 

foreign carrier that is authorized to 

operate in that market, then its 

authorization to provide that 

international service is conditioned 

upon notifying the Commission of that 

affiliation. 

(a) Affiliations requiring prior 

notification: Except as provided in 

paragraph (b) of this section, the 

authorized carrier must notify the 

Commission, pursuant to this section, 

forty-five days before consummation of 

either of the following types of 

transactions: 

(1) Acquisition by the authorized 

carrier, or by any entity that controls the 

authorized carrier, or by any entity that 

directly or indirectly owns more than 

twenty-five percent of the capital stock 

of the authorized carrier, of a controlling 

interest in a foreign carrier that is 

authorized to operate in a market that 

the carrier is authorized to serve; or 

(2) Acquisition of a direct or indirect 

interest greater than twenty-five percent, 

or of a controlling interest, in the capital 

stock of the authorized carrier by a 

foreign carrier that is authorized to 

operate in a market that the authorized 

carrier is authorized to serve, or by an 

entity that controls such a foreign 

carrier. 

(b) Exceptions. 

(1) Notwithstanding paragraph (a) of 

this section, the notification required by 

this section need not be filed before 

consummation, and may instead be filed 

pursuant to paragraph (c) of this section, 

if either of the following is true with 

respect to the named foreign carrier 

regardless of whether that foreign carrier 

is authorized to operate in a World 

Trade Organization (WTO) or non-WTO 

Member: 

(i) The Commission has previously 

determined in an adjudication that the 

foreign carrier lacks market power in 

that destination market (for example, in 

an international section 214 application 

or a declaratory ruling proceeding); or 

(ii) The foreign carrier owns no 

facilities in that destination market. For 

this purpose, a carrier is said to own 

facilities if it holds an ownership, 

indefeasible-right-of-user, or leasehold 

interest in bare capacity in international 

or domestic telecommunications 

facilities (excluding switches). 

(2) In the event paragraph (b)(1) of 

this section cannot be satisfied, 

notwithstanding paragraph (a) of this 

section, the notification required by this 

section need not be filed before 

consummation, and may instead be filed 

pursuant to paragraph (c) of this section, 

if the authorized carrier certifies that the 

named foreign carrier is authorized to 

operate in a WTO Member and provides 

certification to satisfy either of the 

following: 

(i) The authorized carrier 

demonstrates that it is entitled to retain 

non-dominant classification on its 

newly affiliated route pursuant to 

§ 63.10; or 

(ii) The authorized carrier agrees to 

comply with the dominant carrier 

safeguards contained in § 63.10 effective 

upon the acquisition of the affiliation. 

See § 63.10. 

(c) Notification after consummation. 

Any authorized carrier that becomes 

affiliated with a foreign carrier and has 

not previously notified the Commission 

pursuant to this section shall notify the 

Commission within thirty days after 

consummation of the acquisition. 

Example 1 to paragraph (c). Acquisition by 

an authorized carrier (or by any entity that 


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Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Rules and Regulations 60117 

directly or indirectly controls, is controlled 

by, or is under direct or indirect common 

control with the authorized carrier) of a 

direct or indirect interest in a foreign carrier 

that is greater than twenty-five percent but 

not controlling is subject to paragraph (c) but 

not to paragraph (a). 

Example 2 to paragraph (c). Notification of 

an acquisition by an authorized carrier of a 

hundred percent interest in a foreign carrier 

may be made after consummation, pursuant 

to paragraph (c), if the foreign carrier 

operates only as a resale carrier. 

Example 3 to paragraph (c). Notification of 

an acquisition by a foreign carrier from a 

WTO Member of a greater than twenty-five 

percent interest in the capital stock of an 

authorized carrier may be made after 

consummation, pursuant to paragraph (c) of 

this section, if the authorized carrier 

demonstrates in the post-notification that it 

qualifies for non-dominant classification on 

the affiliated route or agrees to comply with 

dominant carrier safeguards on the affiliated 

route effective upon the acquisition of the 

affiliation. 

(d) Cross-Reference. In the event a 

transaction requiring a foreign carrier 

notification pursuant to this section also 

requires a transfer of control or 

assignment application pursuant to 

§ 63.18(e)(3), the foreign carrier 

notification shall reference in the 

notification the transfer of control or 

assignment application and the date of 

its filing. See § 63.18(e)(3). 

(e) Contents of notification. The 

notification shall certify the following 

information: (1) The name of the newly 

affiliated foreign carrier and the country 

or countries in which it is authorized to 

provide telecommunications services to 

the public; 

(2) Which, if any, of those countries 

is a Member of the World Trade 

Organization; 

(3) What services the authorized 

carrier is authorized to provide to each 

named country, and the FCC file 

numbers under which each such 

authorization was granted; 

(4) Which, if any, of those countries 

the authorized carrier serves solely 

through the resale of the international 

switched services of unaffiliated U.S. 

facilities-based carriers; 

(5) The name, address, citizenship, 

and principal business of any person or 

entity that directly or indirectly owns at 

least ten (10) percent of the equity of the 

authorized carrier, and the percentage of 

equity owned by each of those entities 

(to the nearest one percent); 

(6) A certification that the authorized 

carrier has not agreed to and will not in 

the future agree to accept special 

concessions directly or indirectly from 

any foreign carrier with respect to any 

U.S. international route where the 

foreign carrier possesses market power 

on the foreign end of the route; and 

(7) Interlocking directorates. The 

name of any interlocking directorates, as 

defined in § 63.09(g), with each foreign 

carrier named in the notification. See 

§ 63.09(g). 

(8) With respect to each foreign carrier 

named in the notification, a statement as 

to whether the notification is subject to 

paragraph (a) or (c) of this section. In the 

case of a notification subject to 

paragraph (a) of this section, the 

authorized carrier shall include the 

projected date of closing. In the case of 

a notification subject to paragraph (c) of 

this section, the authorized carrier shall 

include the actual date of closing. 

(9) If an authorized carrier relies on an 

exception in paragraph (b) of this 

section, then a certification as to which 

exception the foreign carrier satisfies 

and a citation to any adjudication upon 

which the carrier is relying. Authorized 

carriers relying upon the exceptions in 

paragraph (b)(2) of this section must 

make the required certified 

demonstration in paragraph (b)(2)(i) of 

this section or the certified commitment 

to comply with dominant carrier 

safeguards in paragraph (b)(2)(ii) of this 

section in the notification required by 

paragraph (c) of this section. 

(f) In order to retain non-dominant 

status on each newly affiliated route, the 

authorized carrier should demonstrate 

that it qualifies for non-dominant 

classification pursuant to § 63.10. See 

§ 63.10. 

(g) Procedure. After the Commission 

issues a public notice of the 

submissions made under this section, 

interested parties may file comments 

within fourteen days of the public 

notice. 

(1) If the Commission deems it 

necessary at any time before or after the 

deadline for submission of public 

comments, the Commission may impose 

dominant carrier regulation on the 

authorized carrier for the affiliated 

routes based on the provisions of 

§ 63.10. See § 63.10. 

(2) In the case of a prior notification 

filed pursuant to paragraph (a) of this 

section in which the foreign carrier is 

authorized to operate in a non-WTO 

Member, the authorized carrier must 

demonstrate that it continues to serve 

the public interest for it to operate on 

the route for which it proposes to 

acquire an affiliation with the non-WTO 

foreign carrier by making the required 

showing in §§ 63.18(k)(2) or (3) to the 

Commission. If the authorized carrier is 

unable to make the required showing in 

§§ 63.18(k)(2) or (3) or is notified that 

the affiliation may otherwise harm the 

public interest pursuant to the 

Commission’s policies and rules, then 

the Commission may impose conditions 

necessary to address any public interest 

harms or may proceed to an immediate 

authorization revocation hearing. See 

§§ 63.18(k)(2) and (3). 

(h) All authorized carriers are 

responsible for the continuing accuracy 

of information provided pursuant to this 

section for a period of forty-five days 

after filing. During this period if the 

information furnished is no longer 

accurate, the authorized carrier shall as 

promptly as possible, and in any event 

within ten days, unless good cause is 

shown, file with the Secretary in 

duplicate a corrected notification 

referencing the FCC file numbers under 

which the original certification was 

provided, except that the carrier shall 

immediately inform the Commission if 

at any time, not limited to the forty-five 

days, the representations in the ‘‘special 

concessions’’ certification provided 

under paragraph (e)(6) of this section or 

§ 63.18(n) are no longer true. See 

§ 63.18(n). 

(i) A carrier that files a prior 

notification pursuant to paragraph (a) of 

this section may request confidential 

treatment of its filing, pursuant to 

§ 0.459 of this chapter, for the first 

twenty days after filing. Such a request 

must be made prominently in a cover 

letter accompanying the filing. 

* * * * * 

4. Section 63.18 is amended by 

adding two new sentences immediately 

preceding the last sentence of paragraph 

(e)(3) to read as follows: 

§ 63.18 Contents of applications for 

international common carriers. 

* * * * * 

(e) * * * 

(3) * * * In the event the transaction 

requiring a transfer of control or 

assignment application also requires the 

filing of a foreign carrier affiliation 

notification pursuant to § 63.11, the 

applicant shall reference in the 

application the foreign carrier affiliation 

notification and the date of its filing. 

See § 63.11. * * * 

* * * * * 

[FR Doc. 00–25980 Filed 10–06–00; 8:45 am] 

BILLING CODE 6712–10–P 


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