Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules 39793

inspection during normal business

hours at the following locations:

Environmental Protection Agency,

Region 10, Office of Air Quality, 1200

6th Avenue, Seattle, Washington, and

Oregon Department of Environmental

Quality, 811 S.W. Sixth Avenue,

Portland, Oregon 97204. The interested

persons wanting to examine these

documents should make an

appointment with the appropriate office

at least 24 hours before the visiting day.

FOR FURTHER INFORMATION CONTACT:

Rindy Ramos, Office of Air Quality

(OAQ–107), EPA, 1200 6th Avenue,

Seattle, WA 98101, (206) 553–6510.

SUPPLEMENTARY INFORMATION: See the

information provided in the Direct Final

action which is located in the Rules

Section of this Federal Register.

Dated: July 9, 1998.

Chuck Clarke,

Regional Administrator, Region 10.

[FR Doc. 98–19835 Filed 7–23–98; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Parts 52 and 81

[CA–189–0078(b); FRL–6127–2]

Proposed Approval and Promulgation

of State Implementation Plans and

Redesignation of the South Coast Air

Basin in California to Attainment for

Nitrogen Dioxide

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: EPA is proposing to approve

an attainment and maintenance plan

and grant a request submitted by the

California Air Resources Board (CARB)

to redesignate the South Coast Air Basin

(South Coast) from nonattainment to

attainment for the National Ambient Air

Quality Standards (NAAQS) for

Nitrogen Dioxide (NO2). Under the

Clean Air Act (CAA), designations can

be revised if sufficient data are available

to warrant such revisions. In this action,

EPA is proposing to approve the

attainment and maintenance plans as

revisions to the California State

Implementation Plan (SIP), and EPA is

also proposing to grant the State’s

request to redesignate the South Coast to

attainment because the plans and

request meet the requirements set forth

in the CAA.

DATES: Written comments must be

received by August 24, 1998.

ADDRESSES: Comments should be

addressed to the EPA contact below.

The rulemaking docket for this notice

may be inspected and copied at the

following location during normal

business hours. A reasonable fee may be

charged for copying parts of the docket.

Environmental Protection Agency,

Region 9, Air Division, Air Planning

Office (AIR–2), 75 Hawthorne Street,

San Francisco, CA 94105–3901.

Copies of the SIP materials are also

available for inspection at the addresses

listed below:

California Air Resources Board, 2020 L

Street, Sacramento, CA 92123–1095

South Coast Air Quality Management

District, 21865 E. Copley Drive,

Diamond Bar, CA 91765–4182.

FOR FURTHER INFORMATION CONTACT:

Dave Jesson, Air Planning Office (AIR–

2), Air Division, U.S. EPA, Region 9, 75

Hawthorne Street, San Francisco, CA

94105–3901. Telephone: (415) 744–1288

SUPPLEMENTARY INFORMATION: In this

action, EPA is proposing to approve the

South Coast NO2 attainment and

maintenance plans and grant

California’s request to redesignate the

South Coast to attainment for NO2,

because the plans and redesignation

request meet the requirements set forth

in the CAA.

In the Final Rules Section of this

Federal Register, EPA is approving the

State’s SIP revision and granting the

redesignation request as a direct final

rule without prior proposal because the

Agency views this as a noncontroversial

amendment and anticipates no relevant

adverse comments. A detailed rationale

for this approval is set forth in the direct

final rule. If no relevant adverse

comments are received in response to

this action, no further activity is

contemplated in relation to this

proposed rule. However, if EPA receives

relevant adverse comments, then EPA

will publish a document that withdraws

the rule and informs the public that the

rule will not take effect. EPA will then

address those comments in a final

action based upon this proposed rule.

EPA will not institute a second

comment period. Any parties interested

in commenting on this action should do

so at this time.

List of Subjects in 40 CFR Part 52

Environmental protection, Air

pollution control, Nitrogen dioxide,

Intergovernmental relations, Oxides of

nitrogen, Reporting and recordkeeping

requirements.

Dated: July 8, 1998.

Felicia Marcus,

Regional Administrator, Region IX.

[FR Doc. 98–19839 Filed 7–23–98; 8:45 am]

BILLING CODE 6560–50–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 1, 43, and 63

[IB Docket No. 98–118, FCC 98–149]

Biennial Review of International

Common Carrier Regulations

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: On July 9, 1998, the Federal

Communications Commission adopted a

Notice of Proposed Rulemaking (NPRM)

to further streamline the rules governing

international common carriers. The

Commission proposes to eliminate

review of many international

applications, reduce the scope of

information that must be provided in

applications, and clarify its rules so that

carriers can more easily understand

their obligations. The proposals will

benefit U.S. consumers because they

will eliminate unnecessary regulatory

delay and will facilitate entrance into

the international telecommunications

market. The Commission believes that

the proposed rules will lessen the

regulatory burdens on applicants,

authorized carriers, and the Commission

by allowing carriers to operate more

efficiently.

DATES: Comments are due on or before

August 10, 1998; and reply comments

are due on or before August 25. Written

comments by the public on the

proposed information collections are

due September 22, 1998.

ADDRESSES: Federal Communications

Commission, 1919 M Street, NW, Room

222, Washington, DC 20554. A copy of

any comments on the information

collections contained herein should be

submitted to Judy Boley, Federal

Communications Commission, Room

234, 1919 M Street, NW, Washington,

DC 20554, or via the Internet to

jboley@fcc.gov.

FOR FURTHER INFORMATION CONTACT:

Douglas Klein, Attorney-Advisor, Policy

and Facilities Branch,

Telecommunications Division,

International Bureau, (202) 418–1470.

For additional information concerning

the information collections contained in

this NPRM contact Judy Boley at 202–

418–0214, or via the Internet at

jboley@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Notice of

Proposed Rulemaking, FCC 98–149,

adopted on July 9, 1998. The full text of

this NPRM is available for inspection

and copying during normal business

hours in the FCC Reference Center
39794 Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules

(Room 239) of the Federal

Communications Commission, 1919 M

Street, NW, Washington, DC 20554. The

complete text of this NPRM also may be

purchased from the Commission’s copy

contractor, International Transcription

Service, Inc., 1231 20th Street, NW,

Washington, DC 20036, (202) 857–3800.

The Commission initiated this

proceeding in response to the

Telecommunications Act of 1996, which

requires the Commission to review all

regulations that apply to operations or

activities of any provider of

telecommunications service and to

repeal or modify any regulation it

determines to be no longer necessary in

the public interest.

This NPRM contains proposed or

modified information collections subject

to the Paperwork Reduction Act of 1995

(PRA), 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

proposed or modified information

collections contained in this

proceeding.

Summary of Notice

1. The Commission adopted a Notice

of Proposed Rulemaking (FCC 98–149)

to further streamline the international

Section 214 authorization process and

tariff requirements. This proceeding was

initiated pursuant to the

Telecommunications Act of 1996, which

directs the FCC to undertake, on every

even-numbered year, a review of all

regulations that apply to operations or

activities of any provider of

telecommunications service and to

repeal or modify any regulation it

determines to be no longer necessary in

the public interest. Accordingly, the

Commission has begun a comprehensive

1998 biennial review of

telecommunications and other

regulations that are overly burdensome

or no longer serve the public interest.

We seek comment on the proposals

contained in this Notice.

2. In this proceeding, the Commission

proposes to streamline and, where

appropriate, eliminate many of the rules

for seeking authorization pursuant to

Section 214. The Commission proposes

a blanket Section 214 authorization for

international service to unaffiliated

points. The blanket authorization would

certify that it would serve the pubic

interest, convenience, and necessity to

allow any entity that would be a nondominant carrier to provide facilitiesbased service, or to resell the

international services of other carriers,

to any international points except a

market in which an affiliated carrier

operates. Carriers providing service

pursuant to this blanket authorization

would continue to be subject to all of

the Commission’s rules and regulations

governing international service.

Furthermore, the authorization of any

particular carrier could be revoked or

conditioned as necessary.

3. We seek comment on the scope of

the proposed blanket Section 214

authorization. In particular, we seek

comment on whether there is a smaller

or larger class of carriers or services for

which a blanket authorization would be

appropriate. For example, should the

blanket authorization be limited to the

resale of other carriers’ services instead

of also authorizing the provision of

facilities-based services? Comments

should address whether there remain

any public interest considerations that

might warrant denying an authorization

to provide facilities-based service to a

foreign market where the applicant has

no affiliate. Furthermore, we seek

comment on ways to identify affiliations

that are equally unlikely to raise public

interest concerns that therefore should

not require prior Commission review.

Commenters should address whether

there is a way to include within the

blanket authorization a carrier’s

provision of facilities-based or resold

service on routes where it has an

affiliation with a carrier that, for

example: we have previously found (in

some other context) to lack market

power in the foreign destination market;

has no telecommunications facilities in

that market; and/or has only mobile

wireless facilities in that market. We

tentatively conclude that we must

maintain a requirement that carriers

notify the Commission that they are

providing international service pursuant

to the blanket authorization, and that we

must be able to condition or revoke an

authorization if necessary to prevent

anticompetitive effects. We seek

comment on the applicability of our

tentative conclusions to commercial

mobile radio services (CMRS) licenses.

4. We propose to add a new rule

section to define pro forma and to allow

carriers to undertake pro forma

assignments and transfers of control of

international Section 214 authorizations

without Commission approval. We

tentatively conclude that given the

mechanisms in place, many pro forma

transfers and assignments meet the

forbearance standard as defined by

Section 10 of the Communications Act.

So that the Commission can maintain

accurate records of the entities holding

Section 214 authorization, we propose

to require that authorized carriers that

undertake a pro forma assignment notify

the Commission by letter within 30 days

after consummation of the transaction.

We tentatively conclude that we need

not require that carriers notify us of pro

forma transfers of control. The proposed

rule would apply to all authorized

international carriers.

5. We seek comment on a proposal to

amend § 63.21 of the rules to provide

that an international Section 214

authorization effectively authorizes the

carrier to provide services through its

wholly owned subsidiaries. Although

this proposal promotes flexibility, it

must not be used by carriers to

circumvent any structural-separation

provision in the Commission’s rules. We

seek comment on whether the proposed

rule would defeat any of the

Commission’s structural-separation

requirements.

6. The Commission’s rules currently

provide that a carrier with a global

facilities-based authorization may not

use non-U.S-licensed facilities unless

and until it has received specific prior

approval or the Commission generally

approves their use and so indicates on

an exclusion list maintained by the

International Bureau. We propose to

amend the rules and the exclusion list

to allow any carrier with a global

facilities-based authorization to use any

non-U.S.-licensed submarine cable

system without prior Commission

approval of each cable system. The

exclusion list would then provide that

carriers with global Section 214

authorizations to provide facilitiesbased service would be authorized to

serve any unaffiliated market except

Cuba and would be permitted to use any

facilities except non-U.S.-licensed

satellite systems that are not specifically

identified. This proposed rule change

would not affect the rules for use of

non-U.S.-licensed satellite systems,

which continues to be governed by the

policies adopted in the Commission’s

DISCO II Order (62 FR 64167, December

4, 1997).

7. We also seek comment on our

proposal to eliminate the need to apply

for separate Section 214 authority to

build a new common carrier cable

system by including the authorization to

construct new lines in the global

facilities-based Section 214

authorization. We tentatively conclude

that we must limit this provision by

stating that it does not authorize the

construction or extension of lines that

may have a significant effect on the

environment as defined in our rules. We

propose to eliminate the requirement

currently in the rules that requires the

applicant to include a statement

whether an authorization of the

facilities is categorically excluded from

environmental processing. We
Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules 39795

tentatively conclude that the

construction of new submarine cable

systems will not have a significant effect

on the human environment and

therefore should be categorically

excluded from our environmental

processing requirements. This proposal

is subject to a change in the application

fees for cable landing licenses and

Section 214 authorizations, which are

set by statute.

8. We also propose to reorganize and

simplify some of our existing rules. We

tentatively conclude that we should

reorganize § 63.18, which describes the

contents of international Section 214

applications, and list the obligations of

each category of carrier in a separate

rule section. We propose to include in

the rules a provision codifying the

benchmark settlement rate condition

that we adopted in the Benchmarks

Order (62 FR 45758, August 29, 1997).

We also propose to create new sections

for definitions and for our policy on the

provision of switched services over

international private lines.

9. We also propose to modify our

rules so that applicants will be required

to list only the direct and indirect

shareholders with interests greater than

25 percent.

Currently, applicants must report

every 10-percent-or-greater direct and

indirect shareholder. We seek comment

on whether it remains necessary to

scrutinize direct and indirect

investments in applicants at a greater

level of detail than we require after the

carrier is authorized.

10. In the Foreign Participation Order,

62 FR 64741. December 9, 1997, we

removed the prior-approval requirement

for dominant carriers but neglected to

amend the rules to provide that

dominant resellers of international

private lines are nevertheless subject to

the annual reporting requirement. We

propose to strike the word nondominant from that provision and move

that provision to the new rule section

containing obligations generally

applicable to resellers.

11. We propose to require that carriers

authorized to undertake an assignment

notify the Commission by letter within

30 days after either consummation of

the assignment or a decision not to go

forward with the assignment. We also

propose to clarify that a carrier that

changes its name need only notify the

Commission by letter within 30 days

after the name change.

12. We propose to create a new

Section 63.16 containing the

Commission’s policy on the provision of

switched services over international

private lines interconnected to the

public switched network. This section

would provide that carriers could seek

a Commission finding authorizing such

service by filing a petition for

declaratory ruling, rather than a Section

214 application. This change would not

modify the requirement that carriers

have the necessary underlying Section

214 authority to provide facilities-based

or resold service between the United

States and the country at the foreign end

of the private line.

13. No substantive changes are

intended other than those discussed in

the NPRM. We seek comment on

whether any inadvertent substantive

changes would result from the proposed

reorganization of our rules.

Initial Regulatory Flexibility Analysis

14. The Regulatory Flexibility Act of

1990, 5 U.S.C. 601–612, (RFA) as

amended by the Contract with America

Advancement Act of 1996, Pub. L. 104–

121, 110 Stat. 847, requires an initial

regulatory flexibility analysis in noticeand-comment rulemaking proceedings,

unless we certify that ‘‘the rule will not,

if promulgated, have a significant

economic impact on a substantial

number of small entities.’’ The purposes

of this proceeding are to eliminate some

regulatory requirements and to simplify

and clarify other existing rules. The

proposals do not impose any additional

compliance burden on small entities

dealing with the Commission. In fact,

we anticipate that the rule changes we

propose will reduce regulatory and

procedural burdens on small entities.

Accordingly, we certify, pursuant to

Section 605(b) of the RFA, that the

rules, if promulgated, would not have a

significant economic impact on a

substantial number of small business

entities, as defined by the RFA. The

Office of Public Affairs, Reference

Operations Division, will send a copy of

this NPRM to the Chief Counsel for

Advocacy of the Small Business

Administration in accordance with

Section 603(a) of the Regulatory

Flexibility Act. We will analyze the

information submitted during the

comment period, and if it is determined

at the final rule stage that the rule

changes will have a significant

economic impact on a substantial

number of small entities, a final

regulatory flexibility analysis will be

prepared.

Initial Paperwork Reduction Act of

1995 Analysis

15. This Notice of Proposed

Rulemaking contains both proposed and

modified information collections. As

part of our continuing effort to reduce

paperwork burdens, we invite the

general public and the Office of

Management and Budget (OMB) to

comment on the information collections

contained in this NPRM, as required by

the Paperwork Reduction Act of 1995,

Pub. L. 104–13. Public and agency

comments are due September 22, 1998.

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 estimates; (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 Approval Number: 3060–0686.

Title: Streamlining the International

214 Process and Tariff Requirements.

Form No.: N/A.

Type of Review: Revision of existing

collection.

Respondents: Business or other ForProfit.

Number of Respondents: 105.

Estimated Time Per Response: 1 hour.

Total Annual Burden: 105.

Estimated costs per respondent:

$150.00.

Frequency of Response: Annually;

Semi-Annually; Quarterly: and On

occasion reporting requirements.

Needs and Uses: The information

collections are necessary largely to

determine the qualifications of

applicants to provide common carrier

international telecommunications

services, or to construct and operate

submarine cables, including applicants

that are affiliated with foreign carriers,

and to determine whether and under

what conditions the authorizations are

in the public interest, convenience, and

necessity. The information collections

are necessary for the Commission to

maintain effective oversight of U.S.

carriers that are affiliated with, or

involved in certain co-marketing or

similar arrangements with, foreign

carriers that have sufficient market

power to affect competition adversely in

the U.S. market. The information

collected is necessary for the

Commission to ensure that rates, terms

and conditions for international service

are just and reasonable, as required by

the Communications Act of 1934.

Comment Filing Procedures

16. Comments and reply comments

should be captioned in IB Docket No.

98–118. Pursuant to applicable

procedures set forth in §§ 1.415 and

1.419 of the Commission’s rules, 47 CFR
39796 Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules

1.415, 1.419, interested parties may file

comments on or before August 10, 1998,

and reply comments on or before

August 25, 1998. To file formally in this

proceeding, you must file an original

and four copies of all comments, reply

comments, and supporting comments. If

you want each Commissioner to receive

a personal copy of your comments, you

must file an original and nine copies.

Comments and reply comments should

be sent to Office of the Secretary,

Federal Communications Commission,

1919 M Street, NW., Room 222,

Washington, DC 20554, with a copy to

Douglas Klein of the International

Bureau, 2000 M Street, NW., Suite 800,

Washington, DC 20554. Parties should

also file one copy of any documents

filed in this docket with the

Commission’s copy contractor,

International Transcription Services,

Inc., 1231 20th Street, NW.,

Washington, DC 20036. Comments and

reply comments will be available for

public inspection during regular

business hours in the FCC Reference

Center, 1919 M Street, NW., Room 239,

Washington, DC. Parties are also

encouraged to file a copy of all

pleadings on a 3.5-inch diskette in

WordPerfect 5.1 format.

17. For purposes of this proceeding,

we hereby waive those provisions of our

rules that require formal comments to be

filed on paper, and we encourage parties

to file comments electronically.

Electronically filed comments that

conform to the following guidelines will

be considered part of the record in this

proceeding and accorded the same

treatment as comments filed on paper

pursuant to our rules. To file electronic

comments in this proceeding, you must

use the electronic filing interface

available on the FCC’s World Wide Web

site at http://dettifoss.fcc.gov:8080/cgibin/ws.exe/beta/ecfs/upload.hts.

Further information on the process of

submitting comments electronically is

available at that location and at http://

www.fcc.gov/e-file/.

18. Written comments by the public

on the proposed information collections

are due on or before September 22,

1998. In addition to filing comments

with the Secretary, a copy of any

comments on the information

collections contained herein should be

submitted to Judy Boley, Federal

Communications Commission, Room

234, 1919 M Street, NW., Washington,

DC 20554, or via the Internet to

jboley@fcc.gov.

Ordering Clauses

19. Accordingly, it is ordered that,

pursuant to Sections 1, 4(i), 10, 11,

201(b), 214, 303(r), 307, 309(a), and 310

of the Communications Act of 1934, as

amended, 47 U.S.C. 151, 154(i), 160,

161, 201(b), 214, 303(r), 307, 309(a),

310, this notice of proposed rulemaking

is hereby adopted.

20. It is further ordered that the Office

of Public Affairs, Reference Operations

Division, shall send a copy of this notice

of proposed rulemaking, including the

regulatory flexibility certification, to the

Chief Counsel for Advocacy of the Small

Business Administration, in accordance

with paragraph 603(a) of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq.

21. It is further ordered that the Office

of Public Affairs, Reference Operations

Division, shall send a copy of this notice

of proposed rulemaking to the Council

on Environmental Quality.

List of Subjects in 47 CFR Parts 1, 43,

and 63

Communications common carriers,

Reporting and recordkeeping

requirements.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

Parts 1, 43, and 63 of title 47 of the

Code of Federal Regulations are

amended as follows:

Part 1—Practice and Procedure

1. The authority citation for part 1

continues to read as follows:

Authority: 15 U.S.C. 79 et seq.; 47 U.S.C.

151, 154(i), 154(j), 155, 225, and 303(r).

2. Section 1.767 is amended by

revising paragraphs (a)(6) and (a)(7) and

adding new paragraphs (a)(8) and (a)(9)

to read as follows:

§ 1.767 Cable landing licenses.

(a) * * *

(6) A statement as to whether the

cable will be operated on a common

carrier or non-common carrier basis;

(7) A list of the proposed owners of

the cable system, their voting interests,

and their ownership interests by

segment in the cable;

(8) For each proposed owner of the

cable system, a certification as to

whether the proposed owner is, or has

an affiliation with, a foreign carrier.

Include the information and

certifications required in § 63.18(h)(1)

and (2) of this chapter; and

(9) Any other information that may be

necessary to enable the Commission to

act on the application.

* * * * *

3. Section 1.1306 is amended by

adding the following sentence to the

end of Note 1:

§ 1.1306 Actions which are categorically

excluded from environmental processing.

* * * * *

Note 1: * * * The provisions of § 1.1307(a)

and (b) of this part do not encompass the

construction of new submarine cable

systems.

Part 43—Reports of Communication

Common Carriers and Certain

Affiliates

4. The authority citation for part 43

continues to read as follows:

Authority: 47 U.S.C. 154.

5. Section 43.61 is amended by

revising the last sentence of paragraph

(c) to read as follows:

§ 43.61 Reports of international

telecommunications traffic.

* * * * *

(c) * * * For purposes of this

paragraph, affiliation and foreign carrier

are defined in § 63.09 of this chapter

PART 63—EXTENSION OF LINES AND

DISCONTINUANCE, REDUCTION,

OUTAGE AND IMPAIRMENT OF

SERVICE BY COMMON CARRIERS;

AND GRANTS OF RECOGNIZED

PRIVATE OPERATING AGENCY

STATUS

6. The authority citation for part 63 is

revised to read as follows:

Authority: 47 U.S.C. 151, 154(i), 154(j),

201–205, 218, 403, 533 unless otherwise

noted.

7. New § 63.09 is added to read as

follows:

§ 63.09 Definitions applicable to

international Section 214 authorizations.

The following definitions shall apply

to §§ 63.09–63.24 of this part, unless the

context indicates otherwise:

(a) Facilities-based carrier means a

carrier that holds an ownership,

indefeasible-right-of-user, or leasehold

interest in bare capacity in the U.S. end

of an international facility, regardless of

whether the underlying facility is a

common carrier or non-common carrier

submarine cable or an INTELSAT or

separate satellite system.

(b) Control includes actual working

control in whatever manner exercised

and is not limited to majority stock

ownership.

(c) Special concession is defined as in

§ 63.14(b).

(d) Foreign carrier is defined as any

entity that is authorized within a foreign

country to engage in the provision of

international telecommunications

services offered to the public in that

country within the meaning of the

International Telecommunication

Regulations, see Final Acts of the World
Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules 39797

Administrative Telegraph and

Telephone Conference, Melbourne, 1988

(WATTC–88), Art. 1, which includes

entities authorized to engage in the

provision of domestic

telecommunications services if such

carriers have the ability to originate or

terminate telecommunications services

to or from points outside their country.

(e) An affiliation with a foreign carrier

includes the following:

(1) A greater than 25 percent

ownership of capital stock, or

controlling interest at any level, by the

carrier, or by any entity that directly or

indirectly controls or is controlled by it,

or that is under direct or indirect

common control with it, in a foreign

carrier or in any entity that directly or

indirectly controls a foreign carrier; or

(2) A greater than 25 percent

ownership of capital stock, or

controlling interest at any level, in the

carrier by a foreign carrier, or by any

entity that directly or indirectly controls

or is controlled by a foreign carrier, or

that is under direct or indirect common

control with a foreign carrier; or by two

or more foreign carriers investing in the

carrier in the same manner in

circumstances where the foreign carriers

are parties to, or the beneficiaries of, a

contractual relation (e.g., a joint venture

or market alliance) affecting the

provision or marketing of basic

international telecommunications

services in the United States. A U.S.

carrier also will be considered to be

affiliated with a foreign carrier where

the foreign carrier controls, is controlled

by, or is under common control with a

second foreign carrier that is affiliated

with that U.S. carrier under this section.

(f) An affiliation with a U.S. facilitiesbased international carrier is defined as

in paragraph (e), except that the phrase

‘‘U.S. facilities-based international

carrier’’ shall be substituted for the

phrase ‘‘foreign carrier.’’

Note 1: The assessment of ‘‘capital stock’’

ownership will be made under the standards

developed in Commission case law for

determining such ownership. See, e.g., Fox

Television Stations, Inc., 10 FCC Rcd 8452

(1995). ‘‘Capital stock’’ includes all forms of

equity ownership, including partnership

interests.

Note 2: Ownership and other interests in

U.S. and foreign carriers will be attributed to

their holders and deemed cognizable

pursuant to the following criteria: Attribution

of ownership interests in a carrier that are

held indirectly by any party through one or

more intervening corporations will be

determined by successive multiplication of

the ownership percentages for each link in

the vertical ownership chain and application

of the relevant attribution benchmark to the

resulting product, except that wherever the

ownership percentage for any link in the

chain exceeds 50 percent, it shall not be

included for purposes of this multiplication.

For example, if A owns 30 percent of

company X, which owns 60 percent of

company Y, which owns 26 percent of

‘‘carrier,’’ then X’s interest in ‘‘carrier’’ would

be 26 percent (the same as Y’s interest

because X’s interest in Y exceeds 50 percent),

and A’s interest in ‘‘carrier’’ would be 7.8

percent (0.30 × 0.26). Under the 25 percent

attribution benchmark, X’s interest in

‘‘carrier’’ would be cognizable, while A’s

interest would not be cognizable.

8. Section 63.10 is amended by

removing the third sentence of

paragraph (a) introductory text, the last

sentence of paragraph (a)(4), and the last

sentence of paragraph (c)(5).

9. Section 63.11 is amended by

revising paragraphs (a)(1) and (a)(2) and

by removing the last sentence of

paragraph (c)(1) to read as follows:

§ 63.11 Notification by and prior approval

for U.S. international carriers that have or

propose to acquire an affiliation with a

foreign carrier.

(a) * * *

(1) acquisition of a direct or indirect

controlling interest in a foreign carrier

by the authorized carrier, or by any

entity that directly or indirectly controls

the authorized carrier, or that directly or

indirectly owns more than 25 percent of

the capital stock of the authorized

carrier; or

(2) acquisition of a direct or indirect

interest in the capital stock of the

authorized carrier by a foreign carrier or

by an entity that directly or indirectly

controls a foreign carrier where the

interest would create an affiliation

within the meaning of § 63.09(e)(2).

* * * * *

10. Section 63.14 is amended by

removing the last sentence of paragraph

(a).

11. Section 63.15 is removed.

§ 63.15 [Removed]

12. New § 63.16 is added to read as

follows:

§ 63.16 Switched services over private

lines.

(a) Except as provided in § 63.22(g)(2),

a carrier may provide switched basic

services over its authorized private lines

if and only if the country at the foreign

end of the private line appears on a

Commission list of countries to which

the Commission has authorized the

provision of switched services over

private lines.

(b) An authorized carrier seeking to

add a foreign market to the list of

markets to which carriers may provide

switched services over private lines

must make the following showing in a

Section 214 application filed pursuant

to § 63.18 or in a petition for declaratory

ruling:

(i) If seeking a Commission ruling to

permit the provision of international

switched basic services over private

lines between the United States and a

WTO Member country, the applicant

shall demonstrate either that settlement

rates for at least 50 percent of the settled

U.S.-billed traffic between the United

States and the country at the foreign end

of the private line are at or below the

benchmark settlement rate adopted for

that country in IB Docket No. 96–261 or

that the country affords resale

opportunities equivalent to those

available under U.S. law.

(ii) If seeking a Commission ruling to

permit the provision of international

switched basic services over private

lines between the United States and a

non-WTO Member country, the

applicant shall demonstrate that

settlement rates for at least 50 percent

of the settled U.S.-billed traffic between

the United States and the country at the

foreign end of the private line are at or

below the benchmark settlement rate

adopted for that country in IB Docket

No. 96–261 and that the country affords

resale opportunities equivalent to those

available under U.S. law.

(c) With regard to showing under

paragraph (b) of this section that a

destination country affords resale

opportunities equivalent to those

available under U.S. law, an applicant

shall include evidence demonstrating

that equivalent resale opportunities

exist between the United States and the

subject country, including any relevant

bilateral or multilateral agreements

between the administrations involved.

The applicant must demonstrate that the

foreign country at the other end of the

private line provides U.S.-based carriers

with:

(i) The legal right to resell

international private lines,

interconnected at both ends, for the

provision of switched services;

(ii) Reasonable and nondiscriminatory

charges, terms and conditions for

interconnection to foreign domestic

carrier facilities for termination and

origination of international services,

with adequate means of enforcement;

(iii) Competitive safeguards to protect

against anticompetitive and

discriminatory practices affecting

private line resale; and

(iv) Fair and transparent regulatory

procedures, including separation

between the regulator and operator of

international facilities-based services.

Note 1 to § 63.16: The Commission’s

benchmark settlement rates are available in

International Settlement Rates, Report and
39798 Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules

Order, 12 FCC Rcd 19,806, 62 FR 45758

(August 29, 1997).

13. Section 63.17 is amended by

changing ‘‘(e)(6)’’ to ‘‘(e)(4)’’ at the end

of paragraph (b)(4).

14. Section 63.18 is amended by

revising paragraphs (e), (g), (h), and (i)

to read as follows:

§ 63.18 Contents of applications for

international common carriers.

* * * * *

(e) One or more of the following

statements, as pertinent:

(1) Global Facilities-Based Authority.

If applying for authority to become a

facilities-based international common

carrier subject to § 63.22, the applicant

shall:

(i) State that it is requesting Section

214 authority to operate as a facilitiesbased carrier pursuant to § 63.18(e)(1) of

the Commission’s rules

(ii) List any countries for which the

applicant does not request authorization

under this paragraph (see § 63.22(a));

and

(iii) Certify that it will comply with

the terms and conditions contained in

§§ 63.21 and 63.22.

(2) Global Resale Authority. If

applying for authority to resell the

international services of authorized U.S.

common carriers subject to § 63.23, the

applicant shall:

(i) State that it is requesting Section

214 authority to operate as a resale

carrier pursuant to § 63.18(e)(2) of the

Commission’s rules;

(ii) List any countries for which the

applicant does not request authorization

under this paragraph (see § 63.23(a));

and

(iii) Certify that it will comply with

the terms and conditions contained in

§§ 63.21 and 63.23.

(3) Transfer of Control or Assignment.

If applying for authority to acquire

facilities through the transfer of control

of a common carrier holding

international Section 214 authorization,

or through the assignment of another

carrier’s existing authorization, the

applicant shall complete paragraphs (a)

through (d) of this section for both the

transferor/assignor and the transferee/

assignee. Only the transferee/assignee

needs to complete paragraphs (h)

through (k) of this section. At the

beginning of the application, the

applicant should also include a

narrative of the means by which the

transfer or assignment will take place.

The Commission reserves the right to

request additional information as to the

particulars of the transaction to aid it in

making its public interest

determination. An assignee shall notify

the Commission no later than 30 days

after either consummation of the

assignment or a decision not to

consummate the assignment. The

notification may be by letter and shall

identify the file numbers under which

the initial authorization and the

authorization of the assignment were

granted. See also § 63.24 (pro forma

assignments and transfers of control).

(4) Other Authorizations. If applying

for authority to acquire facilities or to

provide services not covered by

paragraphs (e)(1) through (e)(3), the

applicant shall provide a description of

the facilities and services for which it

seeks authorization. The applicant shall

certify that it will comply with the

terms and conditions contained in

§ 63.21 and § 63.22 and/or § 63.23, as

appropriate. Such description also shall

include any additional information the

Commission shall have specified

previously in an order, public notice or

other official action as necessary for

authorization.

* * * * *

(g) Where the applicant is seeking

facilities-based authority under

paragraph (e)(4) of this section, a

statement whether an authorization of

the facilities is categorically excluded as

defined by § 1.1306 of this chapter. If

answered affirmatively, an

environmental assessment as described

in § 1.311 of this chapter need not be

filed with the application.

(h) A certification as to whether or not

the applicant is, or has an affiliation

with, a foreign carrier, supported by the

following information:

(1) In support of the required

certification, each applicant shall also

provide the name, address, citizenship

and principal businesses of its greaterthan-25-percent direct and indirect

shareholders or other equity holders and

identify any interlocking directorates.

(2) The certification shall state with

specificity each foreign country in

which the applicant is, or has an

affiliation with, a foreign carrier.

(3) Any applicant that seeks to

provide international

telecommunications services to a

particular country and that is a foreign

carrier in that country, or directly or

indirectly controls a foreign carrier in

that country, or has an affiliation within

the meaning of paragraph § 63.09(e)(2)

of this section with a foreign carrier in

that country shall make one of the

following showings:

(i) The named foreign country (i.e.,

the destination foreign country) is a

Member of the World Trade

Organization; or

(ii) The applicant’s affiliated foreign

carrier lacks sufficient market power in

the named foreign country to affect

competition adversely in the U.S.

market; or

(iii) The named foreign country

provides effective competitive

opportunities to U.S. carriers to compete

in that country’s market for the service

that the applicant seeks to provide

(facilities-based, resold switched, or

resold non-interconnected private line

services). An effective competitive

opportunities demonstration should

address the following factors:

(A) If the applicant seeks to provide

facilities-based international services,

the legal ability of U.S. carriers to enter

the foreign market and provide

facilities-based international services, in

particular international message

telephone service (IMTS);

(B) If the applicant seeks to provide

resold services, the legal ability of U.S.

carriers to enter the foreign market and

provide resold international switched

services (for switched resale

applications) or non-interconnected

private line services (for noninterconnected private line resale

applications);

(C) Whether there exist reasonable

and nondiscriminatory charges, terms

and conditions for interconnection to a

foreign carrier’s domestic facilities for

termination and origination of

international services or the provision of

the relevant resale service;

(D) Whether competitive safeguards

exist in the foreign country to protect

against anticompetitive practices,

including safeguards such as:

(1) Existence of cost-allocation rules

in the foreign country to prevent crosssubsidization;

(2) Timely and nondiscriminatory

disclosure of technical information

needed to use, or interconnect with,

carriers’ facilities; and

(3) Protection of carrier and customer

proprietary information;

(E) Whether there is an effective

regulatory framework in the foreign

country to develop, implement and

enforce legal requirements,

interconnection arrangements and other

safeguards; and

(F) Any other factors the applicant

deems relevant to its demonstration.

(4) Any applicant that proposes to

resell the international switched

services of an unaffiliated U.S. carrier

for the purpose of providing

international telecommunications

services to the named foreign country

and that is a foreign carrier in that

country or has an affiliation with a

foreign carrier in that country shall

either provide in its application a

showing that would satisfy § 63.10(a)(3)

or state that it will file the quarterly
Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules 39799

traffic reports required by § 43.61(c) of

this chapter.

(5) With respect to regulatory

classification under § 63.10, any

applicant that certifies that it is or has

an affiliation with a foreign carrier in a

named foreign country and that desires

to be regulated as non-dominant for the

provision of particular international

telecommunications services to that

country should provide information in

its application to demonstrate that it

qualifies for non-dominant classification

pursuant to § 63.10.

(i) Each applicant shall certify that the

applicant has not agreed to accept

special concessions directly or

indirectly from any foreign carrier with

respect to any U.S. international route

where the foreign carrier possesses

sufficient market power on the foreign

end of the route to affect competition

adversely in the U.S. market and will

not enter into such agreements in the

future.

* * * * *

15. Section 63.21 is amended by

revising the section heading and

paragraph (a), and adding new

paragraphs (i) and (j) to read as follows:

§ 63.21 Conditions applicable to all

international Section 214 authorizations.

* * * * *

(a) Each carrier is responsible for the

continuing accuracy of the certifications

made in its application. Whenever the

substance of any such certification is no

longer accurate, the carrier shall as

promptly as possible and in any event

within thirty days file with the

Secretary in duplicate a corrected

certification referencing the FCC File

No. under which the original

certification was provided. The

information may be used by the

Commission to determine whether a

change in regulatory status may be

warranted under § 63.10. See also

§ 63.11.

* * * * *

(i) Subject to the requirement of

§ 63.10 that a carrier regulated as

dominant along a route must provide

service as an entity that is separate from

its foreign carrier affiliate, and subject to

any other structural-separation

requirement in Commission regulations,

an authorized carrier may provide

service through any wholly owned

subsidiaries without seeking additional

Commission authorization, provided

that this provision shall not be

construed to authorize the provision of

service by any entity barred by statute

or regulation from itself holding an

authorization or providing service.

(j) An authorized carrier that changes

its name shall notify the Commission by

letter filed with the Secretary in

duplicate within 30 days of the name

change. Such letter shall reference the

FCC File No. under which the carrier’s

authorizations were granted.

* * * * *

16. Sections 63.22 through 63.25 are

added to read as follows:

§ 63.22 Facilities-based international

common carriers.

The following conditions apply to

authorized international facilities-based

carriers:

(a) A carrier authorized under

§ 63.18(e)(1) may provide international

facilities-based services to international

points for which it qualifies for nondominant regulation as set forth in

§ 63.10, except in the following

circumstance: If the carrier is or is

affiliated with a foreign carrier in a

destination market and the Commission

has not determined that the foreign

carrier lacks sufficient market power in

the destination market to affect

competition adversely in the U.S.

market (see § 63.10(a)), the carrier shall

not provide service on that route unless

it has received specific authority to do

so under § 63.18(e)(4).

(b) The carrier may provide service

using half-circuits on any appropriately

licensed U.S. common carrier and noncommon carrier facilities (under either

Title III of the Communications Act of

1934, as amended, or the Submarine

Cable Landing License Act, 47 U.S.C.

§§ 34–39) that do not appear on an

exclusion list published by the

Commission. Carriers may also use any

necessary non-U.S.-licensed facilities,

including any submarine cable systems,

that do not appear on the exclusion list.

Carriers may not use U.S. earth stations

to access non-U.S.-licensed satellite

systems unless the Commission has

specifically approved the use of those

satellites and so indicates on the

exclusion list, and then only for service

to the countries indicated thereon. The

exclusion list is maintained on the

Commission’s World Wide Web site at

http://www.fcc.gov/ib/td/pf/exclusion

list.html.

(c) The carrier may not provide

service to any country listed on an

exclusion list published by the

Commission unless it has received

specific authority under § 63.18(e)(4).

(d) The carrier may provide

international basic switched, private

line, data, television and business

services.

(e) Subject to the requirements of the

Submarine Cable Landing License Act,

47 U.S.C. 34–39, the carrier is

authorized to construct, acquire, or

operate lines in any new major common

carrier facility project between the

United States and all international

points that it is authorized to serve on

a facilities basis. This paragraph shall

not authorize the carrier to engage in

any construction or extension of lines

that may have a significant effect on the

environment as defined in § 1.1307 of

this chapter. See § 1.1312 of this

chapter. The carrier must seek specific

Section 214 authority and comply with

the Commission’s environmental rules

before any such construction or

extension.

(f) Except as otherwise ordered by the

Commission, the carrier may provide

facilities-based service to a market

served by an affiliate that terminates

U.S. international switched traffic only

if that affiliate has in effect a settlement

rate with U.S. international carriers that

is at or below the Commission’s relevant

benchmark adopted in IB Docket No.

96–261. See FCC 97–280 (rel. Aug. 18,

1997) (available at the FCC’s Reference

Operations Division, Washington, DC

20554, and on the FCC’s World Wide

Web Site at http://www.fcc.gov).

(g)(1) Except as provided in paragraph

(g)(2) of this section, the carrier may

provide switched basic services over its

authorized facilities-based private lines

if and only if the country at the foreign

end of the private line appears on a

Commission list of countries to which

the Commission has authorized the

provision of switched services over

private lines. See § 63.16. If at any time

the Commission finds that the country

no longer provides equivalent resale

opportunities or that market distortion

has occurred in the routing of traffic

between the United States and that

country, the carrier shall comply with

enforcement actions taken by the

Commission.

(2) The carrier may use its authorized

private line facilities to provide

switched basic services in

circumstances where the private line

facility is interconnected to the public

switched network on only one end—

either the U.S. end or the foreign end—

and where the carrier is not operating

the facility in correspondence with a

carrier that directly or indirectly owns

the private line facility in the foreign

country at the other end of the private

line.

(h) The carrier shall file annual

international circuit status reports as

required by § 43.82 of this chapter.

(i) The authority granted under this

part is subject to all Commission rules

and regulations and any conditions or

limitations stated in the Commission’s

public notice or order that serves as the

carrier’s Section 214 certificate. See

§ 63.12.
39800 Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 / Proposed Rules

§ 63.23 Resale-based international

common carriers.

The following conditions apply to

carriers authorized to resell the

international services of other

authorized carriers:

(a) A carrier authorized under

§ 63.18(e)(2) may provide resold

international services to international

points for which the applicant qualifies

for non-dominant regulation as set forth

in § 63.10, except that the carrier may

not provide either of the following

services unless it has received specific

authority to do so under § 63.18(e)(4):

(i) Switched resold services to a nonWTO Member country where the

applicant is or is affiliated with a

foreign carrier; and

(ii) Switched or private line services

over resold private lines to a destination

market where the applicant is or is

affiliated with a foreign carrier and the

Commission has not determined that the

foreign carrier lacks sufficient market

power in the destination market to affect

competition adversely in the U.S.

market (see § 63.10(a)).

(b) The carrier may not resell the

international services of an affiliated

carrier regulated as dominant on the

route to be served unless it has received

specific authority to do so under

§ 63.18(e)(4).

(c) Except as provided in paragraph

(b) of this section, the carrier may resell

the international services of any

authorized common carrier, pursuant to

that carrier’s tariff or contract duly filed

with the Commission, for the provision

of international basic switched, private

line, data, television and business

services to all international points.

(d) The carrier may provide switched

basic services over its authorized resold

private lines if and only if the country

at the foreign end of the private line

appears on a Commission list of

countries to which the Commission has

authorized the provision of switched

services over private lines. See § 63.16.

If at any time the Commission finds that

the country no longer provides

equivalent resale opportunities or that

market distortion has occurred in the

routing of traffic between the United

States and that country, the carrier shall

comply with enforcement actions taken

by the Commission.

(e) Any party certified to provide

international resold private lines to a

particular geographic market shall

report its circuit additions on an annual

basis. Circuit additions should indicate

the specific services provided (e.g.,

IMTS or private line) and the country

served. This report shall be filed on a

consolidated basis not later than March

31 for the preceding calendar year.

(f) The authority granted under this

part is subject to all Commission rules

and regulations and any conditions or

limitations stated in the Commission’s

public notice or order that serves as the

carrier’s Section 214 certificate. See

§§ 63.12, 63.21.

§ 63.24 Pro forma assignments and

transfers of control.

(a) Definition. An assignment of an

authorization granted under this part or

a transfer of control of a carrier

authorized under this part to provide an

international telecommunications

service is a pro forma assignment or

transfer of control if it falls into one of

the following categories and, together

with all previous pro forma

transactions, does not result in a change

in the carrier’s ultimate control:

(1) Assignment from an individual or

individuals (including partnerships) to a

corporation owned and controlled by

such individuals or partnerships

without any substantial change in their

relative interests;

(2) Assignment from a corporation to

its individual stockholders without

effecting any substantial change in the

disposition of their interests;

(3) Assignment or transfer by which

certain stockholders retire and the

interest transferred is not a controlling

one;

(4) Corporate reorganization that

involves no substantial change in the

beneficial ownership of the corporation;

(5) Assignment or transfer from a

corporation to a wholly owned

subsidiary thereof or vice versa, or

where there is an assignment from a

corporation to a corporation owned or

controlled by the assignor stockholders

without substantial change in their

interests; or

(6) Assignment of less than a

controlling interest in a partnership.

(b) A pro forma assignment or transfer

of control of an authorization to provide

international telecommunications

service is not subject to the

requirements of § 63.18. A pro forma

assignee or a carrier that is the subject

of a pro forma transfer of control is not

required to seek prior Commission

approval for the transaction. A pro

forma assignee must notify the

Commission no later than 30 days after

the assignment is consummated. The

notification may be in the form of a

letter, and it must contain a certification

that the assignment was pro forma as

defined in paragraph (a) of this section

and, together with all previous pro

forma transactions, does not result in a

change of the carrier’s ultimate control.

A single letter may be filed for an

assignment of more than one

authorization if each authorization is

identified by the file number under

which it was granted.

§ 63.25 Special procedures for nondominant international common carriers.

(a) Any party that would be a nondominant international communications

common carrier is authorized to provide

facilities-based international services,

subject to § 63.22, between the United

States and all international points,

except that this paragraph shall not

authorize the party to provide service

between the United States and any

country where an affiliated foreign

carrier operates.

(b) Any party that would be a nondominant international communications

common carrier is authorized to provide

resold international services, subject to

§ 63.23, between the United States and

all international points, except that this

paragraph shall not authorize the party

to provide service between the United

States and any country where an

affiliated foreign carrier operates.

(c) Within 30 days of commencing

service pursuant to paragraph (a) or (b),

the party shall notify the Commission

by letter addressed to the Chief,

International Bureau, that it has

commenced providing service pursuant

to § 63.25 of the Commission’s rules.

Such letter shall include the applicable

information and certifications described

in § 63.18.

(d) Notwithstanding paragraphs (a)

and (b), the Commission reserves the

right to condition or revoke the

authorization of any entity for a

violation of the Commission’s rules or

policies, and such condition or

revocation shall be effective against all

successors, transferees, or assigns, as

ordered by the Commission.

[FR Doc. 98–19638 Filed 7–23–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 3

[IB Docket No. 98–96, FCC 98–123]

1998 Biennial Regulatory Review of

Accounts Settlements in the Maritime

and Maritime Mobile-Satellite Radio

Services and Withdrawal of the

Commission as an Accounting

Authority

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: The Federal Communication

Commission adopted a Notice of