Attachment DA 98-1339.pdf

DA 98-1339.pdf

ORDER & AUTHORIZATION submitted by FCC

DA 98-1339

1998-07-02

This document pretains to ITC-214-19970804-00454 for International Global Resale Authority on a International Telecommunications filing.

IBFS_ITC2141997080400454_821282

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                                              DA 98-1339
                   Before the
            Federal Communications Commission
               Washington, D.C. 20554


In the Matter of                         )
                     )
U S WEST Communications, Inc.           )
                     )
Application for Authorization Pursuant to   )                            ITC-97-448
Section 214 of the Communications Act of       )
1934, as Amended, to Resell Switched      )
International Communications Services to      )
Lithuania and Russia                )


           ORDER, AUTHORIZATION AND CERTIFICATE

Adopted: June 30, 1998                                                    Released: July 2, 1998

By the Chief, Telecommunications Division

                   I. Introduction

   1. U S WEST Communications, Inc. (USWC or Applicant) requests authority
pursuant to Section 214 of the Communications Act of 1934, as amended (Act), to resell
international switched telecommunications services originating from the Applicant's broadband
PCS Basic Trading Area (BTA) markets and terminating in Russia and Lithuania. The Applicant
seeks classification as a non-dominant reseller of international switched services on the requested
routes. No party opposed the Applicant's Section 214 application.

   2. We find that a grant of this application will serve the public interest under Section
214 of the Act. We also find that the Applicant's provision of resold switched services on the
U.S.-Lithuania and U.S.-Russia routes as part of its broadband PCS BTA market services should
be subject to non-dominant carrier regulation.

                   II. Background

   3. USWC, a Colorado corporation, is a Bell Operating Company (BOC). USWC
also holds broadband PCS licenses in 53 BTA markets and one Major Trading Area (MTA)
market. As a BOC, USWC is subject to certain restrictions regarding its provision of interLATA
services. Consistent with the Act, the International Bureau previously granted USWC Section

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214 authority to provide resold switched services to all international points except Lithuania and
Russia as part of its broadband PCS BTA market services.

   4. The present application was not subject to streamlined processing at the time it
was filed because USWC was seeking to provide service to Lithuania and Russia, markets in
which the Applicant was affiliated with foreign carriers, and the Commission had not yet made a
determination as to whether USWC's foreign affiliates possessed market power in the destination
markets. On June 12, 1998, however, USWC's former parent corporation, U S WEST, Inc.,
consummated a transfer of control which resulted in the creation of two wholly independent
corporations, USW-C, Inc. and MediaOne Group, Inc. (MediaOne). As a result of the transfer
of control, USWC became a wholly-owned subsidiary of USW-C, Inc., and no longer holds any
foreign carrier affiliations within the meaning of Section 63.18(h)(1) of the Commission's rules.
MediaOne currently holds all of the ownership interests in the foreign carriers formerly held by
USWC's parent corporation.

                   III. Discussion

   5. The Applicant maintains that a grant of the present application will allow its
subscribers to use their wireless telephones to complete calls to Lithuania and Russia, thereby
"increas[ing] competition on these routes and benefit[ing] consumers by reducing prices,
increasing the availability of a wider variety of service options, and promoting the more efficient
use of existing international facilities." Because the Applicant is a BOC, we initially determine
whether service restrictions imposed on BOCs prevent the Applicant from providing the
requested service. Next, we consider whether the Applicant should be subject to non-dominant
carrier regulation in the provision of resold switched services along the U.S.-Lithuania and
U.S.-Russia routes.

   A. Provision of Incidental InterLATA Services under Section 271(b)(3)

   6. The Act permits a BOC to "provide incidental interLATA [i.e., local access and
transport area] services . . . originating in any State[.]" The Act defines "incidental interLATA
services" to include "the interLATA provision by a Bell operating company or its affiliate . . . of
commercial mobile services in accordance with section 332(c) of th[e] Act[.]"

    7. The Applicant states that, "[a]s a broadband PCS licensee, . . . [it] provides
commercial mobile services in accordance with Section 332(c) of the [Act.]" The Applicant
certifies, therefore, that the "authority it seeks in the instant application is associated solely with
its provision of incidental interLATA services, as that term is defined in Section 271(g) of the
Act." We find that the resale of international switched services on the U.S.-Lithuania and U.S.-
Russia routes by the Applicant as part of its broadband PCS BTA market services is permitted
under Section 271(b)(3) of the Act. We also find that a grant of the instant application will serve
the public interest under Section 214 of the Act by facilitating the efficient and rapid provision of
international services.

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   B. Regulatory Classification

   8. At the time of its initial application, USWC certified that it was affiliated with
foreign carriers in the destination countries under Section 63.18(h)(1) of the Commission's rules.
Subsequently, the Applicant filed two amendments certifying that it no longer is affiliated with any
foreign carriers.

    9. The Commission regulates U.S. international carriers as dominant on routes where
an affiliated foreign carrier has sufficient market power on the foreign end to affect competition
adversely in the U.S. market. Under this framework, a U.S. international carrier that has no
affiliation with a foreign carrier, and itself is not a foreign carrier in a destination country, "shall
presumptively be considered non-dominant for that route." No party filed an opposition to the
Applicant's Section 214 application or requests that the Applicant be classified as a dominant
carrier. We find no basis at this time to overcome the presumption in favor of non-dominant
treatment. We therefore classify USWC as a non-dominant international reseller on the U.S.-
Lithuania and U.S.-Russia routes as part of its broadband PCS BTA market services.

    10. As a non-dominant reseller of international switched services, the Applicant will be
allowed to file tariffs on no less than one days' notice, without economic or cost support, and the
tariffs will be presumed lawful. It also will be subject to the Section 214 requirements of non-
dominant U.S. international carriers.

    11. As a non-dominant carrier, the Applicant will be subject to regulation under Title
II of the Act. Specifically, Title II requires carriers to offer international services under rates,
terms, and conditions that are just, reasonable, and not unduly discriminatory (Sections 201 and
202), and Title II carriers are subject to the Commission's complaint process (Sections 206-209).
Title II carriers also are required to file tariffs pursuant to our streamlined tariffing procedures
(Sections 203 and 205). Non-dominant U.S. international switched resellers also are subject to
the requirements of Sections 43.51, 43.61, 63.14 and 63.19 of the Commission's rules.

                 III. Ordering Clauses

   12. Upon consideration of the application and in view of the foregoing, IT IS
HEREBY CERTIFIED that the present and future public convenience and necessity require the
resale of international switched services on the U.S.-Lithuania and U.S.-Russia routes by U S
WEST Communications, Inc. (USWC) as part of its broadband PCS BTA market services.

    13. Accordingly, IT IS HEREBY ORDERED that application File No. ITC-97-448
filed by USWC IS GRANTED and USWC is authorized to resell on a non-dominant carrier basis
international switched services of unaffiliated U.S. international carriers for the provision of
international switched services between USWC's broadband PCS BTA markets and Lithuania and
Russia.

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   14. IT IS FURTHER ORDERED that USWC shall comply with the requirements
specified in Section 63.21 of the Commission's rules, 47 C.F.R. 63.21.

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


                         FEDERAL COMMUNICATIONS COMMISSION



                         Diane J. Cornell
                         Chief, Telecommunications Division
                         International Bureau




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