Attachment 20170126091129-870.p

20170126091129-870.p

SUPPLEMENT

Supplement

1998-11-18

This document pretains to ITC-214-19981118-00807 for International Global Resale Authority on a International Telecommunications filing.

IBFS_ITC2141998111800807_1396601

                                    Federal Communications Commission                          DA 99—594



                                              B fo :e the
                              FEDER. L COMMU! IIC ATIONS COM AISS!IO N
                                        Washi 1g on , D.C. 20554

In the Matter of

SINGAPORE TELJ3COM USA, L[NC .

Application for Authority Pursuant t«              o                 Fle No. NC214—19981118—00807
Section 214 0:‘ the Communications . ic
of 1934, as Ainended, to Provide
Facilities—Based Switched Service be we en
the United States and Singapore

                             ORDER, AU T IORIZ. .T. O N, AND CHR MMW/ITCA‘CE

        . _Adopted:          March 26, 1 )9°              .        Releas »d:      March 26, 1999

By the Chief, Telecommunication: D ivision:

                                               I. I1 troduction

         1. In this Order, we grant Sing ipore Telecoar USA, Inc. (S ngTel US¥ ) authority to provide
switched and private line internation: | t :lecomm in ca ions services im i ficiitics basis between the
United States ind Singapore. We cliss:fy Singlel JS A as a domin: nt ca Tier i1 its provision of
service to Singapore. SingTel US 4A ‘vil. be prolibitec from using its fici itics—lmased authority on the
U.S.—Singapor: route until Singapore T\ lecomm ini:ations Limited‘;s (Sing;Tel) settlement rate with all
U.S. carriers i; at or below the settle ne it rate biunc in ark of $0.15.

                                               II. I ac sg ‘ound

        2. Sir gTel USA is a com nc 1 carrier that ; Ire ady has autho ity uider © ection 214 of the
Communicaticns Act of 1934, as imnced,‘ to pov id: facilities—bas:d sw tcl ed and private line
services betwesn the United States ar d nternaticna. points througho it he worlil, except Singapore."
SingTel USA is a wholly owned subsid ary of S ngTel.

        3. SingTel USA requests authority to acquire interests in facilities previously authorized by
the Commission in order to provide international basic switched, private line, data, television, and
business services to Singapore.® SingTel USA certifies that it has an affiliation with a foreign carrier



    !     47 U.S.C. § 214.

   *     See Public Notice, Report No. TEL—00034 (November 25, 1998).

          Singapore Telecom USA, Inc., Application File No. ITC—214—19981118—00807 (filed November 18,
          1998) (SingTel USA Application).


                                 Federal Communications Commission                               DA 99—594



in Singapore and agrees to be regulated as a dominant carrier under Section 63.10 of the
Commission‘s rules* on the Singapore route. We placed SingTel USA‘s application on public notice"
and received a petition to deny from MCI WorldCom, Inc.°

                                              III. Discussion

         4. The rules and standards adopted in the Commission‘s Foreign Participation Order‘ apply
to this application. In that order, the Commission adopted, as a factor of its public interest analysis, a
rebuttable presumption that applications for Section 214 authority from carriers from WTO Member
countries do not pose concerns that would justify denial of an application on competition grounds.®
The Commission stated that it would grant expeditiously the Section 214 application of any carrier
seeking to serve a WTO Member country except in the exceptional case where a carrier‘s entry
presents a very high risk to competition in the U.S. market that cannot be addressed by the
Commission‘s safeguards or by additional conditions. In addition, the Commission may further review
applications if the Executive Branch raises serious concerns regarding national security, law
enforcement, foreign policy or trade issues."

       5. Singapore is a WTO Member country. SingTel USA is therefore entitled to a
presumption in favor of entry on the Singapore route. The Executive Branch has not raised any
concerns with respect to SingTel USA‘s application. MCI WorldCom, however, has submitted a
petition to deny SingTel USA‘s application. For the reasonsdiscussed below, we deny MCI
WorldCom‘s petition to deny and grant SingTel USA‘s application to provide switched and private
line international telecommunications services on a facilities basis between the United States and
Singapore.

        6. MCI WorldCom argues that we should reject SingTel USA‘s application because the
application is premature. MCI WorldCom states that approval of the application would be
meaninglessat this time because SingTel USA will be unable to provide facilities—based service on the
U.S.—Singapore route until SingTel‘s settlement rates are at or below the Commission‘s settlement rate
benchmark of $0.15.‘° SingTel‘s settlement rates are currently above the benchmark level. In its



   *    u47 K.F.R. § 63.:10.

   *    See Public Notice, Report No. TEL—00051NS (January 6, 1998).

   6    MCI WorldCom Petition to Deny, File No. ITC—214—19981118—00807 (filed December 24, 1998).

        Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, Report and Order
        aund Order on Reconsideration, 12 FCC Red 23,891 (1997), recon. pending (Foreign Participation
        Order).

        See Foreign Participation Order at 4 50.

   *    1d. at § 51, 61—66.

   !°   __MCI WorldCom Petition to Deny at 1—2 (filed December 24, 1998). For a discussion of the
        Commission‘s settlement rate benchmarks policy and the settlement rate benchmark condition, see
        International Settlement Rates, IB Docket No. 96—261, Report and Order, 12 FCC Red 19,806 (1997),

                                                     2


                                 Federal Communications Commission                          DA 99—594



the Commission has authorized the provision of such service. See 47 C.F.R. §§ 63.18(e)(2)(ii)(c),
{ell3)—(4); 63.21(a).

         11. IT IS FURTHER ORDERED that SingTel USA shall be regulated as a dominant carrier
under Section 63.10 of the rules and shall comply with the requirements of paragraph (c) of that
section for services between the United States and Singapore.

        12. IT IS FURTHER ORDERED that SingTel USA shall not agree to accept special
concessions from SingTel for the provision of service between the United States and Singapore.
"Special concessions" is defined in Section 63.14(b) of the Commission‘s rules as amended by the
Commission‘s Foreign Participation Order, FCC 97—398.

        13.    IT IS FURTHER ORDERED that Singtel USA may provide facilities—based service
between the United States and Singapore only if its affiliate in Singapore, SingTel, has in effect a
settlement rate with all U.S. international carriers that is at or below the Commission‘s relevant
benchmark. International Settlement Rates, Report and Order, IB Docket No. 96—261, 12 FCC Red
19806, [ 231.

        14. 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 public notice of this
Order (see Section 1.4(b)(2)).

                                        FEDERAL COMMUNICATIONS COMMISSION




                                        Rebecca Arbogast                t
                                        Chief, Telecommunications Division
                                        International Bureau


                                   Federal Communications Commission                                                          DA 99—594



reply, SingTel USA concedes that it v       ju d be subjec     t to the Jo     nn    is    io    s settlementiat         b    nchmarl:
condition on the U.S.—Singapore route       bi t argues th     t its apg lic   iti   n     si    ot premature. S        ng    Te USA4
states that under the Commission‘s po       cy . its applic:   tion sho iIc     be    g    in    ed subject to t ie     cc    id tion
that SingTel USZA may not commence          facilities—base    | service or     th   : 1   .S    —Singapore ro ite       u    til
SingTel‘s settlem »nt rate is at or belov    tl e Commis:      io ‘s set le    ne    it    ate    benchmark."

          7. We ajree with SingTel US \ : ia unde t ie Somniis io i‘s                      pc ic /, SingTel US \‘
application shoul be granted at this ti 1e s bject to the conditi n he                       S ng Tel USA may n«
comimence facilit ss—base | service on t ie J. ).—Sinjffa) or : rout: unti S               ng Te ‘s settlemeit at              is at or




                                                                                           rea
belo‘w the Comm ssion‘s settlement rai : t :n ‘hmarc. Tle Coran is: io                       n ad : clear in ths.ler          h ne "ks
Order that applic tions t« provide faci tics— ased se vic s to a i iat:d                   ni rkts would be gar               :ec, l ut
that the Section 2 14 auth »rization wor d »e subject1> t ie set le re it                  ate benchmark cconciti             n. 1 iis




                                                                                           on
condition require: that a sarrier provid ng service on an affiliite 1 rou                  : 1ia not commne                   ervic:
until the settleme it rates of its foreign af. iIi te are a or belovs t ie cel             wvi at settlement 1 at
benchmark." W impose this conditic i i i crder to 1 »di ce th:s ail ty                     of U. S.—authorized ar             ies 1 >
engage in a pred: ‘ory price squeeze w er pi pviding ser ice to & 1 ; ffi                   iat :d market." Uin: er           ths




                                                                                           SX
condition, we wil grant lingTel USA 1: ap ication, »r Sing e U $¥                           w I1 3e prohibited ro             n usiig
its facilities—basec author: ty on the U.S —S in; apore rc ute until S ag e                 s set lemenit rate w th           U. 3.
carriers is at or b Jow the settlement rice e ichmark of $0.15

                                            1 . Ordering Clauss

         8. Accor lingly, T IS HEREI        Y CIRTIFIE         ) t iat th« pres      n     ar    d:    uture public i   ite   es,
convenience, and necessi‘y require a g      in o ‘the pre      en applicz io         i.    TH    sre   fore, IT IS O|   :C    3R ED)
that application F le No. TC—214—199{       1118 00807 i         CRANTE),            in     S    ng    Tel USA is a     th    ris ec
pursuant to Secticn 63.1&{(e)(1), 47 C.     .R §} 63.18(        ), to provile        ‘ac   lit   es    based service    be    weer th :
United States and Singap re subject to      al c rrent an      | f ture Co nr         is   io    in    gulations, inc   ud    ng th ast
specifically listed below, as well as the   ccnd tions se       o1 t below

        9. IT IS URTEER ORDERI D h: : SingTeé| L SA shal c m ily w th the require ie ts
specified in Secti ms 43.¢62, 63.14, 63. 5(»)), 63.19, : id 63.21 o ‘th :( onimission‘s Rules 4 C.F R.
§§ 43.82, 63.14, (3.15(b), 63.19, 63.2 .

         10. IT If FURTHER ORDEER I tl at Singl al JSA miy i ot —i ad SingTel USA s ariffs
must state that its customers may not— cc in ‘ct their private lines t t e julllic switched n stv ork it
either the U.S. or foreign end, or both for the provi: ion of inte na ional switched basic serv :es u iless




        affd sub. nom., Cable and Wireless v. FCC, Case No. 97—1612 (D.C. Cir., January 12, 1999)
        (Benchmark Order).

    ‘   Singapore Telecom USA, Inc., Opposition to Petition to Deny, File No. ITC—214—19981118—00807, at 1—
        2 (filed January 11, 1999).

    _   Benchmarks Order at      231.

        Benchmarks Order at « 207—231.



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Document Modified: 2019-04-15 14:03:01

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