Attachment 20161227150041-070.p

20161227150041-070.p

SUPPLEMENT

Supplement

1999-12-13

This document pretains to ITC-214-19991213-00779 for International Global Resale Authority on a International Telecommunications filing.

IBFS_ITC2141999121300779_1387358

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 C           FACILITIES—BASED SERVICE
 ()       AL FACILITIES—BASED/RESALE SERVICE
 (®                —       ERVICE
 C     PRIVATE
5      MOBILE
 (@    SPECIAL
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             BEFORE THE FEDERAL COMMUNICATIONS COMMISSION

                                  WASHINGTON, D.C. 20554

                                                                                  ue 1 3 1998
In the matter of Soft—Tronik Corporation.

Application for authority pursuant to Section 214of the
Communications Act of 1934;, as amended, for global          File No.
authority to operate as an international facilities—based               e
and resale carrier.




                                         APPLICATION



               USA Soft—Tronik Corporation ("Applicant") hereby requests authority, pursuant

to Section 214of the Communications Act of 1934, as amended, 47 U.S.C. § 214 (1982), and

Section 63.18 of the Federal Communications Commiussion ("FCC") Rules, 47 C.F.R. § 63.18 et

seq., to provide global international facilities—based and resale services between the United States

and international points, including specific aufho»rity pursuant to 47 C.F.R. § 63.18 (e)(4) to

provide such services to Ukraine, wfiere Applicant‘s affiliate operates as a non—dominant carrier.

Applicant further requests that this Application be granted according to the streamlined

processing procedures set forth in 47 C.F.R. § 63.12.

               Applicant is a U.S. corporation organized to conduct any lawful business

including the provision of telecommunication services. As noted above Applicant is affiliated

with a foreign carrier operating in Ukraine. However, as shown below, Applicant‘s affiliate

qualifies for a finding of non—dominance under Section 63.10(a)

               By granting this Application, the Commission will ser\;e the public interest,

convenience and necessity by promoting competition in the international services market.


Competition will benefit U.S. consumers by increasing service options and lowering prices.

Thus, the public interest will be served by the grant of Section 214 authority to Applicant.

               Applicant submits the following information in support of its request for

authorization pursuant to 47 C.F.R. §63.18:

               (a)     USA Soft—Tronik Corporation
                       One Sansome Street, 20 Floor
                       San Francisco, California 94104
                       Tel; 415—951—4611

               (b)     Applicant is organized as a corporation under the laws of the State of

California.

               (c)     Correspondence concerning this Application should be sent to:

                       John L. Clark
                       GOODIN, MACBRIDE, SQUERI, SCHLOTZ & RITCHIE, LLP
                       505 Sansome Street, 9th Floor
                       San Francisco, California 94111
                       Telephone: (415) 765—8443
                       Fax: (415)—765—8443


               (d)     Applicant has not previously sought or received authority under Section

214 of the Communications Act.

               (e)     Applicant requests global facilities—based and resale authority pursuant to

47 C.F.R. §§ 63.18(e) (1) and 63.18(e)(2).

               In addition, Applicant requests specific authority pursuant to 47 C.F.R. §

63.18(e)(4) to provide facilities based, resold switched service, and switched or private line

service over resold private lines to Ukraine, where Applicant‘s affiliate operates as a non—

dominant carrier.

               Applicant certifies that it will comply with 47 C.F.R. §§ 63.21, 63.22, and 63.23.

               (g)     The authorizations requested under 47. C.F.R. § 63.18(e)(4) are


categorically excluded pursuant to 47. C.F.R. § 1.1306 from environmental assessment

requirements.

                (b)    The following persons or entities own a ten percent or more equity interest

in Applicant:


         Name and Address              Citizenship              Business                 Percent
                                                                                        Ownership

 Grigori Dzekon                                               Businessman
 601 Van Ness Avenue, Apt. 1029          Ukraine         (Applicant‘s President)              51%
 San Francisco, California 94102

 Eugene Zimin                                                 Businessman
 402 8 Avenue, Apt. 402                  Ukraine           (Applicant‘s Chief                 25%
 San Francisco, California 94118                          Executive Technical
                                                                 Officer)

 Yuri Lissetskii                                             Businessman
 7 Revodskogo Street, Apt. 11            Ukraine      (Applicant‘s Chief Financial            19%
 Kiev 252091, Ukraine                                           Officer)


                Each personidentified above is also an officer and director of Applicant‘s

affiliate, Kiev onLine Ltd., which is wholly—owned by Applicant. Kiev onLine Ltd. operates as a

non—dominant carrier in Ukraine. In addition, the following person is also an officer and a

director of both Applicant and Kiev onLine Ltd.:


        Name and Address               Citizenship              Business                 Percent
                                                                                        Ownership

 Val Shidlovsky                                              Businessman
 402 8" Avenue, Apt. 402                  USA           (Applicant‘s Secretary)               5%
 San Francisco, California


                (i)    Applicant certifies that it is affiliated with one foreign carrier, Kiev onLine

Ltd., which is wholly—owned by Applicant and operates as a non—dominant carrier in Ukraine.

                (7)    Applicant certifies that it seeks authority to provide international


telecommunications services to Ukraine, where Applicant‘s \-Jvholly-owned subsidiary, Kiev

onLine Ltd. operates as a non—dominant carrier.

                (k)     Ukraine has applied for membership in the World Trade Organization, but

is not yet a member. Applicant‘s wholly—owned subsidiary, Kiev onLine Ltd., owns a

competitive fiber optic network in Kiev, Ukraine. This network, which Kiev onLine Ltd. began

constructing in1997, now consists of a number of rings totaling approximately 85 km in length

and is one ofseveral competing fiber optic networks in Kiev. Kiev onLine Ltd. does not own or

operate any international transport facilities.

                Telecommunications services in Ukraine are dominated by two state—controlled

carriers. Ukrtelecom, a state—owned company, administers the national wireline infrastructure

and hasa local switched services monopoly in Kiev, which is operated under the name

Kievelectrosvyaz. UTEL, which is owned in part by private foreign companies but is controlled

by Ukrtelecom through a 51% ownership share, dominates the long—distance and international

markets.

               Applicant does not have access to infc»rfiation that would enable it to establish the

precise local access market share enjoyed by Kiev onLine, Ltd.; however, Applicant estimates

that its share of the local access market is less than 0.1%. Moreover, Kiev onLine, Ltd. neither

owns nor controls any bottleneck or monopoly facilities. Quite clearly, Kiev onLine, Ltd. has no

ability to exercise market power in any aspect of its operations.

               (1)     Applicant‘s foreign carrier subsidiary, Kiev onLine Ltd., does not hold

market power in any aspect ofits operations as is demonstrated by its holding substantially less

than a 50% market share in the local access and international transport markets in Kiev.

Therefore, Kiev onLine Ltd. satisfies the showing for non—dominant status required under 47


C.F.R. § 63.10(a)(3).

               (m)      As shownabove, Applicant‘s foreign carrier subsidiary, Kiev onLine Ltd.,

is presumptively non—dominant pursuant to the provisions of 47 C.F.R. § 63.10(a)(3).

               (n)      Applicant certifies that it has not agréed and will not agree to accept

special concessions directly or indirectly from any foreign carrier with respect to any U.S.

international route where the foreign carrier péssesses market power on the foreign endof the

route.

               (0)      Applicantcertifies that no party to the application is subject to a denial of

Federal benefits pursuant to Section 5301 of the Anti—Drug Abuse Actof 1998.

               (p)      This application qualifies for streamlined processing under 47 C.F.R. §

63.12 because it seeks authorizations only under 47 C.F.R. § 63.18 and none of the exceptions to

streamlined processing set forth in 47 C.F.R. § 63.12(c) apply.



                                          CONCLUSION

               As demonstrated in this application, USA Soft—Tronik Corporationis qualified to

provide the services for which it requests authority. For the reasons stated above, USA Soft—

Tronik Corporation submits that the public interest, convenience and necessity would be

furthered by a grant of application. The requested authorization should therefore be issued to

USA Soft—Tronic Corporation to provide global international facilities—based and resale services

between the United States and international points, including specific authority pursuant to 47

C.E.R. § 63.18 (e)(4) to provide such services to Ukraine.


              Respectfully submitted this 8th day of December 1999 at San Francisco,

California.


                                                  GOODIN, MACBRIDE, SQUERLI,
                                                  RITCHIE & DAY, LLP
                                                  John L. Clark        :
                                                  505 Sansome Street, Suite 900
                                                  San Francisco, California 94111
                                                  Telephone:     (415) 392—7900
                                                  Facsimile:     (415) 398—4321



                                                  By ,l-m
                                                          Joth IL_Ctark
                                                  Attorneys for Applicant USA Soft—Tronik
                                                  Corporation


                                           CERTIFICATION OF APPLICANT




                    I hereby certify that the statements in the foregoing Application for Section 214

authority are true, complete, and correct to the best of my knowledge and are made in good faith.



                    USA SOFT—TRONIK CORPORATION




                    Name:          Val Shidlovsky

                    Title:         Secretary

                    Date:          December 8, 1999


2808/001/X07121—1



Document Created: 2019-04-24 21:28:38
Document Modified: 2019-04-24 21:28:38

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