Attachment 20170124093812-290.p

20170124093812-290.p

SUPPLEMENT

Supplement

1998-10-20

This document pretains to ITC-214-19981020-00735 for International Global Resale Authority on a International Telecommunications filing.

IBFS_ITC2141998102000735_1396163

                  Categories of
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                ASSIGNMENT OF LICENSE
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                GLOBAL FACILITIES
                GLOBAL FACILITIE
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                GLOBAL RESALE SERVIC
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                INDIVIDUAL FACILI
                INTERCONNECTED PRI
                LIMITED GLOBAL FA
                GLOBAL RESALE S
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      (2        LIMITED GLOBAL RESALE
      C         INMARSAT AND MOBILE SATELLITE SERVICE
      C         SWITCHED RESALE SERVICE
      ©         TRANSFER OF CONTROL
      C         SUBMARINE CABLE LANDING LICENSE
      C         INTERNATIONAL SPECIAL PROJECT




      Description of Application:


                                                                        ;     FCC/MELLON        QC] 201998
                                                                FCC/MELLON       0184298 _

                                            BEFORE THE
                          FEDERAL COMMUNICATIONS COMMISSION
                                   WASHINGTON, D.C.


    In the Matter of




                                                  y
                                                  i x
                                                  x
    Unisource USA, Inc. and




                                                  e
    Unisource Carrier Services AG




                                                  LA
                                                                                      20‘     <.,*




                                                  / $AAA
Joint Application for Expanded Authority                       File No. ITC—214—19981 0-1—4—-@J33
Pursuant to Section 214 of
the Communications Actof 1934,


                                                  %
as Amended, To Acquire and Operate

                                                  x_4 s_4 %L
Facilities and To Resell the Services of
Other Carriers for the Provision of
International Service Between                          $
the United States and International Points             )
                                                      )

                       JOINTAPPLICATIONFORSECTIONAUTHORITY

                  Unisource USA, Inc. ("Unisource USA") and Unisource Carrier Services AG

("UCS") (collectively the "Joint Applicant") hereby request expanded authority on behalf of

each ofthemselves and their respective wholly owned subsidiaries and of the Unisource Group

(as defined below) pursuant to Section 214 of the Communications Act of 1934, as amended,

47 U.S.C. § 214 ("Section 214"), to provide authorized international services betweeg the

United States and international points as follows:

o                 Pursuant to Sections 63.18(e)(1), (2), and (6) of the Commission‘s Rules, the
                  Joint Applicant seeks to expand the existing Section 214 authorization of
                  Unisource USA to encompass the provision of service by (i) UCS and its wholly
                  owned subsidiaries and (ii) all other wholly owned subsidiaries of Unisource
                  N.V. (collectively with Unisource USA, the Unisource Group). As described
                  below, Unisource USA currently has authorization on behalf of itself and _
                  wholly owned U.S. subsidiaries to provide facilities—based and resale service to


               . all international points (except Swwigzeriland), including countries where
                 Unisource USAhas affiliates.~

     o           Pursuant to Sections 63.18(e)(1), (2), and (6) of the Commission‘s Rules,
                 Unisource USA, UCS, and the other members of the Unisource Group seek
                 global facilities—basedand resale authorization to provide services between the
                 United States and Switzerland, the home country of affiliate Swisscom.                e

                 Unisource USA is filing concurrently an applicatibfi for Speci;alr'l“'émporary

  Authority that requests authorization prior to November 1, 1998 for Unisource USA to

  provide service on the U.S.—Switzerland route.

                 Unisource USA is a corporation organized under the laws of the State of

  Delaware with its headquarters in Murray Hill, New Jersey. UCS is a corporation organized

  under the laws of Switzerland with its headquarters in Wallisellen, Switzerlapd. Both entities

  are wholly owned subsidiaries of Unisource N.V. ("Unisource"), a provider of international

  telecommunications services that is .incorporatedl under the laws of the Netherlands. Unisource

  is a joint venture owned by KPN Telecom B.V. ("KPN") (formerly PTT Telecom), a provider

 of telecommunications services incorporated and operating in the Netherlands; Telia AB, a

| provider of services incorporated and operating in Sweden; and Swisscom, a provider of

 services established and operating in Switzerland.*‘ (The Unisource shareholder companies are

 referred to collectively herein as the "Unisource shareholders.") [AUCS NV is a corporation

 established in the Netherlands that is owned 60% by Unisource and 40% by AT&T.] [AUCS

 VOF is a partnership established in the Netherlands that is owned 59.94% indirectly by




 U       Telefonica de Espafia, S.A. ("Telefonica"), a provider of services incorporated and
 operating in Spain, was a shareholder in the Unisource joint venture until the parties entered into
 a termination agreement on December 12, 1997.


    Unisource, 39.96%indirectly by AT&T, and 0.1% by AUCS NV, which is owned 60%

    indirectly by Unisource and 40% indirectly by AT&T.]*

                  Unisource USA has filed a series of Section 214 applications under which it has

 received authorization on behalf of itself and other existing and future U.S. _subs»idia,r'i_ygsfi

 Specifically, Unisource USA has received authorization to provide facilities-based“‘.zmd resale

 services on routes between the United States and(i) countries where Unisource USA does not

 haveaffiliates, (ii) Sweden andthe Netherlands (the home countries of two of the three indirect

 shareholders of Unisource USA), and(iii) countries where Unisource USA has affiliates that lack

 market power. lJni.sQ};rgfne USA understands that subsidiaries of Unisource.other than those

 specifically named in the previous applications may market the services authorized under the

existing Section 214 authorizations. However, there may be circumstances in which such other

entities in the Unisource Group would wish to provide services in a manner that the Commission

might deem to require express Section 214 autho.rizgtion. For that reason, in addition to the

existing right to market services pursuant to current Section 214 authorizations granted to

Unisource USA, this application requests express Section 214 authorization for the entire




¥        Unisource also has a nonequity business relationship with AT&T. Unisource is a
member of WorldPartners, a marketing alliance of which AT&T is also a member. In addition,
Unisource owns 60% and AT&T owns 40% of AT&T—Unisource Communications Services
("AUCS") (formerly Uniworld), a telecommunications service provider established in the
Netherlands and providing service in Europe. However, neither Unisource, Unisource USA, nor
UCS is affiliated with AT&T under the Commission‘s rules because the Commission has found
that nonequity relationships do not constitute "affiliation." Market Entry and Regulation of
Foreign—affiliated Entities, Report and Order, 11 FCC Red 3873, 3908 (1995). As the
Commission has recognized, neither WorldPartners nor AUCS involves cross—equity holdings
between AT&T and Unisource N.V., Motion of AT&T To Be Declared Non—Dominant for
International Service, Order, 11 FCC Red 17963, 17990 (1996), and neither presents a
substantial risk of anticompetitive conduct on any U.S. international route, id. at 17991; Order on
Recon. at JC 20—24 (rel. Oct. 5, 1998).


    Unisource Group.* The members ofthe Unisource Group understand that they will be bound by

    the conditions contained in Unisource USA‘s existing authorizations.

                  Furthermore, Unisource USA does not yet have authorization to provide service

 between the United States and Switzerland, the home country of shareholder Swisscom. This

 application therefore requests authorization pursuant to the rules adopted b}; the Coxfimiss'.ion in

the ForeignParticipationOrder for the Unisource Group to provide service on that route.4 The

rules adoptedin the ForeignParticipationOrder. establish a rebuttable presumptionin favor of

entry for applicants from WTO Member countries, such as Switzerland. The Commission has

addressed the issues raised by this Application when the Commission granted Unisource

Shareholder Swisscom authorization to provide service on the U.S.—Switzerland route. See

SwisscomNorthAmerica,Inc., Memorandum Opinion, Order and Certificate, 13 FCC Red

3132 (1998). The reasoning that led the Commission to find that grant of Swisscom‘s

application would servethe public interest applies equally here. The members of the

Unisource Group are wi].ling to be classified as dominant with respect to that route, reserving

the right to seekreclassification in the future.

                  A grant of the expanded authority sought in this application would serve the

public interest. Entry of additional foreign—affiliated carriers in the U.S. market is one of the



3         Thus, for example, the Joint Applicant intends that grant of this Application would secure
for UCS the same Section 214 authorization rights that UCS would obtain if it applied separately
for Section 214 authorization, including the right to transfer control of its Section 214
authorization subject to Commission approval. If this would not be the result of this Application
as submitted, the Joint Applicant requests the opportunity to amend the Application as may be
required to achieve the intended objective.

2         See Rules and Policies on Foreign Participation in the U.S. Telecommunications Market,
Report and Order and Order on Recon., IB Dockets Nos. 97—142 and 95—22 (rel. Nov. 26, 1997)
("‘Eoreign Participation Order").


       objectives of the WTO Basic Telecom Agreet           As the Commission stated in the Foreign

       Participation
                Order, "entry by foreign telecor            cations carriers and other investors will

       increase competition in the U.S. telecormmuni        is service Ifiarket, providing lower prices

       and increased quality of service."*" To that ei      » Commission has concluded that the

       presumption of open entry for applicants from        ) Member countries such as Switzerland

       serves the public interest, and it has stated its    . to expeditiously grant the vast majority of

    applications filed by foreign telecommunicatic          ‘riers.* In order effectively to provide

   competitive service, the members of the Unisc            Group need the full ability to reach global

   destinations and to utilize flexible corporate st        ‘es, as the expanded authority requested

   herein would permit.

   I.                  INFORMATION REQUIRELI                sECTION 63.18 OF THE
                       COMMISSION®‘S RULES.

                       In further support ofits applicati   e Joint Applicant provides the information

  below as required by Section 63.18 of the Com:            in‘s rules. In view ofthe joint nature of this

  Application, information is provided with respe           :«ach of Unisource USA and UCS, and

 officials of each entity have signed the Applicauon w provide support for the certifications

 provided herein: André Kiser is the Managing Director of Unisource Carrier Services AG and

 Paul Smits is the President and CEO of Unisource USA and of Unisource N.V.

                       (a)    The name, addréss, and telephone number of the applicant are:

                              Unisource USA, Inc.
                              535 Mountain Avenue
                              Murray Hill, N.J. 07974



$0 0         Id, §4.
&            Id., | 29.


       tel: (908) 508—2064

       Unisource Carrier Services AG
       Industriestr. 21
       CH—8304 Wallisellen
       Switzerland
       tel: +41 1 839 32 11


(b)    Unisource USA is incorporated under the laws of the State of Delawars.
       UCS AG is incorporated under the lavrs of Switzerland.

       Ccrrespondence concerning this application should be sent to:

      Frans Lijnkamp
      Uniscurce USA, Inc.
      Unisource N.V.
      Polarisavenue 97
      2132 JH Hoofddorp
      The Netherlands
      tel: +31 23 568 6201
      fax: +31 23 568 6200

      Ennio Marengo
      Unisource Carrier Services
      Industriestr. 21
      CH—8304 Wallisellen
      Switzerland
      tel: +41 1 839 3211
      fax: +41 1 839 3295

      with a copy to:

      William T. Lake
      Wilmer, Cutler & Pickering
      2445 M Street, NW.
      Washington, D.C. 20037
      tel: (202) 663—6000
      fax: (202) 663—6363

(d)   Unisource USA has received authority under Section 214 to provide both
      resold and facilities—based services between the United States and (i) the
      United Kingdom, ITC—97—268; (ii) Sweden, ITC—97—267; (iii) countries in
      which Unisource USA has no affiliates, ITC—97—266 (resale) and ITC—97—
      269 (facilities—based); (iv) the Netherlands, ITC—97—470; and (v) countries
      in which Unisource USA has nonshareholder affiliates, ITC—98—001.


       (e)    By this application, Unisource USA and UCS request authority pursuant
              to Sections 63.18(e)(1), (2), and (6) of the Commission‘s Rules for UCS
              and all other members of the Unisource Group to provide the facilities—
              based and resale services for which Unisource USA has previously
              received authorization and subject to the conditions contained in those
              authorizations. Unisource USA and UCS also request authority pursuant
              to Sections 63.18(e)(1), (2), and(6) of the Commission‘s Rules for all
              members of the Unisource Group to provide facilities—based and resale
              services betweenthe United States and Switzerland. The members of the
              Unisource Group do not seek to be regulated as nondominant for the U.S.—
              Switzerland route.

(g)           The Joint Applicant does not contemplate any new construction that would
              constitute a major action under the Commission‘s rules. Accordingly,
              authorization of the services proposed bythis application is categorically
              excluded as defined by 47 C.F.R. § 1.1306.


(h)   (1)     By its signature to this Application, each of Unisource USA and UCS
              hereby certifies that the members of the Unisource Group arguably are
              affiliated with foreign carriers, as definedin Sections 63.18(h)(1)(i) and
              (ii) of the Commission‘s rules, in the countries identified in Appendix 1.
             However, the Joint Applicant reserves the right to contend that the
             members of the Unisource Group are not affiliated with carriers in some of
             these countries within the meaning of the Commission‘s rules.

      (2)    The name, address, citizenship, and principal business of the Unisource
             Group‘s sole 10% or greater shareholders are as follows:

             Unisource USA and UCS are wholly owned subsidiaries of Unisource
             N.V., which is incorporated under the laws of the Netherlands.
             Unisource N.V.‘s mailing address is Polarisavenue 97, 2132 JH
             Hoofddorp, the Netherlands and its principal business is
             telecommunications.

             The corporate form, principal shareholders, and address of each Unisource
             shareholder are as follows:

             KPN is a private company with limited liability incorporated under the
             laws of the Netherlands. The shares of KPN are owned by Royal PTT
             Nederland N.V. KPN‘s mailing address is Prinses Beatrixlaan 23, 2595
             AK The Hague, The Netherlands.

             Swisscom AG is a stock company established under the laws of
             Switzerland pursuant to a special law as legal successor to the Telecom
             Department of the Swiss PTT, a former enterprise of the federal


                administration of Switzerland. The shares of Swisscom are owned by the
                Government of Switzerland. Swisscom‘s mailing address is
                Viktoriastrasse 21, 3030 Bern, Switzerland.

                Telia AB is a limitedliability company formed under the laws of Sweden.
                The shares of Telia AB are owned by the Government of Sweden. Telia
                AB‘s mailing address is SE 123 86 FARSTA, SWEDENL.

                There are no interlocking directorates between Unisource USA, UCS, and
               U.S. common carriers. As noted above, Paul Smits is the President and
               CEO of both Unisource USA and Unisource N.V.

       (3)     Each of Unisource USA and UCS certifies that the members of the
               Unisource Group do not have any affiliation with any U.S. carrier whose
               facilities—basedservices they propose to resell.

       (5)     The members of the Unisource Group seek to operate as facilities—based
               international carriers to theaffiliated countries covered under Unisource
               USA‘s existing authorizations and to Switzerland, which is a Member of
               the WTO.                             f

      (6)      The members of the Unisource Group seek to provide international
               services by reselling international switched and private line services to the
               affiliated countries covered under Unisource USA‘s existing authorizations
               and to Switzerland, which is a Memberof the WTO.

      h        Each of Unisource USA and UCS states that it and each member of the
             — Unisource Group will file with respect to Switzerland the quarterly traffic
               reports required by Section 43.61(c).

      (8)      Each of Unisource USA and UCS agrees thatit and each member of the
               Unisource Group will be classified as a dominant carrier with respect to
               the U.S.—Switzerland route, without prejudice to its right to petition for
               reclassification at a later date. UCS agrees to be classified with respect to
               other routes in the same manner as the Commission classified Unisource
              USA in previous Section 214 authorizations.

(1)   Each of Unisource USA and UCS certifies that the members of the Unisource
      Group have not agreed to accept any special concessions directly or indirectly
      from any foreign carrier or administration with respect to traffic or revenue flows
      between the United States and Switzerland or any other countries where the
      Unisource Group would be deemed to be affiliated with a carrier with market
      power, and the members of the Unisource Group will not enter into any such
      agreement in the future without Commission approval.


0)    Each of Unisource USA and UCS certifies that no member of the Unisource
      Group and no party to this application, as defined in 47 C.F.R. § 1.2002(b)(2), is
      subject to denial of Federal benefits, as provided in the Anti—Drug Abuse Act of
      1988, 21 U.S.C. § 853a.

(k)   The Joint Applicant does not request streamlined processing pursuant to Section
      63.:12.


                                             CONCLUSION

         For the foregoing reasons, the Applicant requests that the Commission graut the authority

 requested in this application.



                        Respectfully submitted,



                                       .        —        l
                                  André Kiser
                                  Managing Director, Unisource Carrier Services AG
                                  Industriestr. 21
                                  CH—8304 Wallisellen
                                  Swiltzerland
                                  tel: +41 1 8393211


                                           A
                                  Paul Smits
                                  President and CEO, Unisource NV
                                  Managing Director, Unisource Pan—European Services B.V.
                                  Polarisavenue 97
                                  2132 JH Hoofddorp
                                  The Netherlands
                                  tel; +31 23 568 6201



Legal Counsel:

William T. Lake
Jacquelynn Ruf
Wilmer, Cutler & Pickering
2445 M Street, NW.
Washington, D.C. 20037
(202) 663—6000

Date: October 13, 1998


                                     APPENDIX 1

                         UNISOURCE GROUP AFFILIATES


 Austria          AUCS (Osterreich) GmbH is owned 100% by AT&T—Unisource
                  Communications Services NV ("AUCS"). AUCS is owned 60% by
                  Unisource Pan—European Services BV, a wholly owned subsidiary of
                  Unisource, and 40% by AT&T Pan European Services, Inc. Swisscom
                  owns 100% of Swisscom Telekommunikationsgesellschaft m.b.H (Wien),
                  which has been contributed to UTA Telekom AG, a joint venture in which
                  Swisscom owns 50% plus one share, whichis a national provider of voice
                  and data services.

Belgium           AUCS (Belgium) NV is owned 100% by AUCS. Unisource owns 50.4%
                  and KPN owns 49.6% of Unisource Belgium.

Czech Republic   KPNand Swisscom each own 50% of Telsource, which owns 27% of SPT
                  Telecom, the national operator in the Czech Republic.

Denmark          AUCS (Danmark) A/S is owned 100% by AUCS.

                 Telia AB owns 100% of Telia AS, which provides national and
                 international telecommunications services.

Finland          AUCS (Finland) Oyis owned 100% by AUCS.
                 Telia AB owns 100% of Telia Finland Oy, a provider of long distance and
                 international telecommunications services.

France           AUCS (France) SA is owned 100% by AUCS. Unisource owns all but
                 one share of SIRIS SaS. Unisource owns 100% of Unisource Carrier
                 Services France SaS. Swisscom owns 50% of Estel, which will provide
                 voice and data services in the Alsace region.

Germany          AUCS (Germany) GmbH is owned 100% by AUCS. Unisource owns
                 100% of (i) Unisource Carrier Services GmbH and (ii) UBN Deutschland
                 GmbH. Swisscom owns 50% of tesion Communikationsnetze Siidwest
                 GmbH & Co. KG.

Greece           AUCS (Hellas) is owned 100% by AUCS. Unisource Business Networks
                 BV, a wholly owned subsidiary of Unisource, owns 100% of Unisource
                 Hellas Telecommunication Services S.A.

                                        =]I‘=


 Hungary       KPN owns 50% and Swisscom owns 50% of JaszTel Ltd.
               Telecommunikacios, a provider of local telecommunications services.

 Ireland       AUCS (Ireland) Ltd. is owned 100% by AUCS.

               KPN indirectly owns 12% and Telia AB indirectly owns 8% of Telecom
               Eireann. This ownership is through Comsource Un Ltd., which is owned
               60% by KPN and 40% indirectly by Telia AB. Comsource Un Ltd. has
              joint control of Telecom Eireann with the government ofIreland.

Italy         AUCS (Italia) SpA is owned 100% by AUCS. Unisource Business
              Networks BV owns 100% of Unisource Italia SpA. Swisscom owns 100%
              of Swisscom S.p.A., which will provide voice and data services in the
              Lombardy region.              f

Latvia        Telia AB owns 100% of Telia Latvija STA, a provider of paging and other
              telecommunications services.

Lithuania     Telia AB owns 100% of Lietelija UAB, a provider of data transmission
              and value added (Internet access) services.

Luxembourg    AUCS (Luxembourg) S.a.r.l is owned 100% by AUCS. Unisource owns
              50.2% and KPN owns 49.8% of Unisource Business Networks
              Luxembourg S.a.r.l.

Netherlands   AT&T—Unisource Network PBV is owned 100% by AUCS. Unisource
              Business Networks BV owns 100% of Unisource Business Networks
              Nederland BV.

              KPN is a Unisource shareholder.

Norway        AUCS (Norge) AS is owned 100% by AUCS.

              Telia AB owns 100% of Telia Norge AS, which provides national and
              international telecommunications services.

Portugal      NCR Portuguesa — Gestao e Investimentos, Lda, owned 100% by AUCS,
              provides data transmission and other services through its subsidiary,
              AT&T Portugal Comunicacoés SA.

Spain         AUCS (Espafia) is owned 100% by AUCS. Unisource Business Networks
              BV owns 100% of Unisource Iberia SA.


                                    ~{3 .


Sri Lanka     Telia owns 64.99% of Telia Overseas AB, which owns 55% of Suntel
              (Pvt) Ltd., a provider of national and international telecommunications
              services.

Sweden        AUCS (Sverige) AB is owned 100% by AUCS. Unisource owns 100% of
              Unisource Carrier Services Northern Europe AB. Unisource Business
              Networks BV owns 100% of Unisource Business Networks Sverige AB.

              Telia AB is a Unisource shareholder.

Switzerland   Unisource owns 100% of (i) Unisource Business Networks Schweiz AG
              and (ii) Unisource Carrier Services AG.

              Swisscom Ltd. is a Unisource shareholder.

              AUCS (UK) Ltd. is owned 100% by AUCS. Unisource Business
              Networks BV owns 100% of Unisource Carrier Services UK Ltd.

              Telia AB owns 100% of Telia UK Ltd., which holds resale and facilities—
              based licenses and provides international telecommunications services in
              the United Kingdom.




                                    —13 .



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Document Modified: 2019-04-20 15:20:41

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