Public Notice TEL00884

International Telecommunications

Action Taken Public Notice

2005-02-24

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PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 445 12th STREET S.W. WASHINGTON D.C. 20554 News media information 202-418-0500 Fax-On-Demand 202-418-2830; Internet: http://www.fcc.gov (or ftp.fcc.gov) TTY (202) 418-2555 DA No. 05-479 Report No. TEL-00884 Thursday February 24, 2005 INTERNATIONAL AUTHORIZATIONS GRANTED Section 214 Applications (47 C.F.R. § 63.18); Cable Landing License Applications (47 C.F.R. § 1.767); Requests to Authorize Switched Services over Private Lines (47 C.F.R. § 63.16); Section 310(b)(4) Requests The following applications have been granted pursuant to the Commission’s streamlined processing procedures set forth in Section 63.12 of the Commission’s rules, 47 C.F.R. § 63.12, other provisions of the Commission’s rules, or procedures set forth in an earlier public notice listing applications accepted for filing. Unless otherwise noted, these grants authorize the applicants (1) to become a facilities-based international common carrier subject to 47 C.F.R. § 63.22; and/or (2) to become a resale-based international common carrier subject to 47 C.F.R. § 63.23; or (3) to exceed the 25 percent foreign ownership benchmark applicable to common carrier radio licensees under 47 U.S.C. § 310(b)(4). Grants under Section 63.16 and certain grants under Section 63.18 also authorize carriers generally to use their authorized private lines to provide switched services (ISR) between the United States and particular international points pursuant to 47 C.F.R. § 63.16. See also 47 C.F.R. §§ 63.22(e), 63.23(d). This public notice serves as each newly authorized carrier’s Section 214 certificate. It contains general and specific conditions, which are set forth below. Newly authorized carriers should carefully review the terms and conditions of their authorizations. These are set forth in detail below and in Sections 63.21, 63.22, and 63.23 of the Commission’s rules, 47 C.F.R. §§ 63.21-.23. Failure to comply with general or specific conditions of an authorization, or with other relevant Commission rules and policies, could result in fines and forfeitures. The Commission most recently amended its rules applicable to international telecommunications common carriers in 2000 Biennial Regulatory Review, Policy and Rules Concerning the International, Interexchange Marketplace, FCC 01-93, released, March 20, 2001, 66 Fed. Reg. 16874 (Mar. 28, 2001). See also IB Docket No. 97-142, Rules and Policies on Foreign Participation in the U.S. Telecommunications Market, Order on Reconsideration, 15 FCC Rcd 18158 (2000); IB Docket No. 98-118, Review of International Common Carrier Regulations, FCC 99-51, released March 23, 1999, 64 Fed. Reg. 19,057 (Apr. 19, 1999) and in IB Docket Nos. 98-148, 95-22, CC Docket No. 90-337 (Phase II), 1998 Biennial Regulatory Review - Reform of the International Settlements Policy and Associated Filing Requirements, FCC 99-73, released May 6, 1999, 64 Fed. Reg. 34, 734 (June 29, 1999). An updated version of Sections 63.09–.24 of the rules, and other related sections, is available at http://www.fcc.gov/ib/td/pf/telecomrules.html. Page 1 of 6

ISP-PDR-20050203-00004 P Intelsat, Ltd. Petition for Declaratory Ruling Grant of Authority Date of Action: 02/23/2005 The foreign ownership ruling issued in Intelsat, Ltd., Transferor, and Zeus Holdings Limited, Transferee, Consolidated Application for Consent to Transfers of Control of Holders of Title II and Title III Authorizations and Petition for Declaratory Ruling under Section 310 of the Communications Act of 1934, as Amended, IB Docket No. 04-366, Order and Authorization, DA 04-4034 (IB/WTB/OET, rel. Dec. 22, 2004) ("Intelsat-Zeus Order"), at paragraph 27, is modified as set forth below. The modification request was filed in connection with applications for consent to the pro forma transfer of control of Intelsat LLC, Intelsat North America LLC and Intelsat MTC LLC (collectively, the "Intelsat Licensees"), the holders of certain space station, earth station, private land mobile and experimental licenses and authorizations. See, e.g., SES-T/C-20050203-00140. As specified below, and upon grant of the companion pro forma transfer of control applications, the modified ruling allows for the following two-step transaction: (1) a newly created, wholly-owned subsidiary of Intelsat (Bermuda), Ltd., Intelsat Subsidiary Holding Company Ltd., a Bermuda company, will be interposed as a 100 percent owned holding company between Intelsat (Bermuda), Ltd. and the Intelsat Title III Licensees; and (2) a newly created, wholly-owned subsidiary of Intelsat, Ltd., Zeus Special Subsidiary Limited, a Bermuda company, will be amalgamated with Intelsat (Bermuda), Ltd., with the resulting amalgamated company continuing to be named Intelsat (Bermuda), Ltd. We find that the proposed pro forma transaction raises no new foreign ownership issues. Accordingly, pursuant to section 310(b)(4) of the Communications Act of 1934, as amended, we modify the foreign ownership ruling issued in the Intelsat-Zeus Order to read as follows: Specifically, this ruling permits Intelsat LLC, Intelsat North America LLC, and Intelsat MTC LLC to be owned indirectly by: (1) Zeus (through Intelsat, Intelsat (Bermuda), Ltd. (after giving effect to the amalgamation of Zeus Special Subsidiary Limited with Intelsat (Bermuda), Ltd.), and Intelsat Subsidiary Holding Company Ltd. and, for Intelsat MTC LLC, also through Intelsat Global Sales & Marketing Ltd.) (up to and including 100 percent of the equity and voting interests); (2) eighteen Investing Funds (either organized under foreign laws or having their principal places of business in a foreign country) (up to and including 95.58 percent of the equity interests and 100 percent of the voting interests); (3) foreign limited partners with direct or indirect equity and voting interests in the Investing Funds (up to and including an aggregate 35.15 percent equity and voting interest); and (iv) foreign citizens or entities with a direct or indirect controlling interest in the Investing Funds (up to and including an aggregate 98.2 percent voting interest for the election of the Zeus board of directors and a 95 percent voting interest on all other matters). Intelsat LLC, Intelsat North America LLC, and Intelsat MTC LLC may accept up to and including an additional aggregate 25 percent indirect equity and/or voting interest from Zeus's current foreign investors and from other foreign investors, without seeking prior Commission approval under section 310(b)(4), subject to the condition that Intelsat LLC, Intelsat North America LLC, and Intelsat MTC LLC shall obtain prior approval before any foreign individual or entity other than Zeus (through Intelsat, Intelsat (Bermuda), Ltd., Intelsat Subsidiary Holding Company Ltd., and Intelsat Global Sales & Marketing Ltd.) acquires individually a greater-than-25-percent indirect equity and/or voting interest in Intelsat LLC, Intelsat North America LLC, or Intelsat MTC LLC. For purposes of calculating the aggregate 25 percent amount, Intelsat LLC, Intelsat North America LLC, and Intelsat MTC LLC shall include any additional equity or voting interests acquired by Zeus's current direct and indirect foreign investors, as well as any additional equity or voting interests acquired by new investors. We will permit, however, the addition or substitution of directors for RBC Trustees, provided the new directors are U.K. citizens. Consistent with the initial ruling in the Intelsat-Zeus Order, new voting interests held by non-U.K. directors of RBC Trustees will count against the additional aggregate 25 percent voting interest permitted by this declaratory ruling. We emphasize that, as Commission licensees, Intelsat LLC, Intelsat North America LLC, and Intelsat MTC LLC have an affirmative duty to continue to monitor their foreign equity and voting interests and to calculate these interests consistent with the attribution principles enunciated by the Commission. This ruling is without prejudice to Commission action on the related pending applications. ITC-214-20050119-00023 E Times Telecom (USA) Inc. International Telecommunications Certificate Service(s): Global or Limited Global Facilities-Based Service, Global or Limited Global Resale Service Grant of Authority Date of Action: 02/23/2005 Application for authority to provide facilities-based service in accordance with Section 63.18(e)(1) of the rules, and also to provide service in accordance with Section 63.18(e)(2) of the rules. ITC-214-20050124-00019 E TC Marketing Corporation International Telecommunications Certificate Service(s): Global or Limited Global Resale Service Grant of Authority Date of Action: 02/18/2005 Application for authority to provide service in accordance with Section 63.18(e)(2) of the rules. Page 2 of 6

ITC-T/C-20050125-00016 E American Long Lines, Inc. Transfer of Control Grant of Authority Date of Action: 02/18/2005 Current Licensee: American Long Lines, Inc. FROM: American Long Lines, Inc. TO: PAETEC Corp. Application for consent to transfer control of the international section 214 authorization, File No. ITC-214-19960823-00397, held by American Long Lines, Inc. ("Long Lines"), from the sole shareholder of Long Lines to PAETEC Corp. ("PAETEC"). Under the proposed transaction, PAETEC will acquire all of the issued and outstanding equity securities of Long Lines, which will become a wholly-owned subsidiary of PAETEC. This authorization is without prejudice to the Commission's action on any other related pending application(s). SURRENDER ITC-214-19960801-00362 VERESTAR, INC. (Debtor-in-Possession) By letter dated February 17, 2005, Verestar, Inc. (Debtor-in-Possession) surrendered the international Section 214 authorization: ITC-214-19960801-00362. ITC-214-19961230-00657 Verestar Networks, Inc. (Debtor-in-Possession) By letter dated February 17, 2005, Verestar Networks, Inc. (Debtor-in-Possession) surrendered the international Section 214 authorization: ITC-214-19961230-00657. ITC-214-19971209-00769 VERESTAR, INC. (Debtor-in-Possession) By letter dated February 17, 2005, Verestar, Inc. (Debtor-in-Possession) surrendered the international Section 214 authorization: ITC-214-19971209-00769. ITC-T/C-19980528-00353 AMERICAN TOWER SYSTEMS CORPORATION (Debtor-in-Possession) By letter dated February 17, 2005, Verestar, Inc. (Debtor-in-Possession) and Verestar Networks, Inc. (Debtor-in-Possession) surrendered the international Section 214 authorization: ITC-T/C-19980528-00353. Page 3 of 6

CONDITIONS APPLICABLE TO INTERNATIONAL SECTION 214 AUTHORIZATIONS (1) These authorizations are subject to the Exclusion List for International Section 214 Authorizations, which identifies restrictions on providing service to particular countries or using particular facilities. The most recent Exclusion List is attached to this Public Notice. The list applies to all U.S. international carriers, including those that have previously received global or limited global Section 214 authority, whether by streamlined grant or specific written order. Carriers are advised that the attached Exclusion List is subject to amendment at any time pursuant to the procedures set forth in Streamlining the International Section 214 Authorization Process and Tariff Requirements, IB Docket No. 95-118, 11 FCC Rcd 12884 (1996), para. 18. A copy of the current Exclusion List will be maintained in the FCC Reference and Information Center and will be available at http://www.fcc.gov/ib/td/pf/exclusionlist.html. It also will be attached to each Public Notice that grants international Section 214 authority. (2) The export of telecommunications services and related payments to countries that are subject to economic sanctions may be restricted. For information concerning current restrictions, call the Office of Foreign Assets Control, U.S. Department of the Treasury, (202) 622-2520. (3) Carriers shall comply with the requirements of Section 63.11 of the Commission's rules, which requires notification by, and in certain circumstances prior notification by, U.S. carriers acquiring an affiliation with foreign carriers. A carrier that acquires an affiliation with a foreign carrier will be subject to possible reclassification as a dominant carrier on an affiliated route pursuant to the provisions of Section 63.10 of the rules. The Commission recently amended Section 63.11 of the rules in its Order on Reconsideration in IB Docket No. 97-142, 15 FCC Rcd 18158 (2000). (4) Carriers shall comply with the Commission's International Settlements Policy and associated filing requirements contained in Sections 43.51 and 64.1001 of the Commission's Rules, 47 C.F.R. §§ 43.51, 64.1001. The Commission modified these requirements most recently in 2000 Biennial Regulatory Review, Policy and Rules Concerning the International, Interexchange Marketplace, FCC 01-93, released, March 20, 2001, 66 Fed. Reg. 16874 (Mar. 28, 2001). See also 1998 Biennial Regulatory Review - Reform of the International Settlements Policy and Associated Filing Requirements, IB Docket Nos. 98-148, 95-22, CC Docket No. 90-337 (Phase II), FCC 99-73 (rel. May 6, 1999). In addition, any carrier interconnecting private lines to the U.S. public switched network at its switch, including any switch in which the carrier obtains capacity either through lease or otherwise, shall file annually with the Chief, International Bureau, a certified statement containing, on a country-specific basis, the number and type (e.g., 64 kbps circuits) of private lines interconnected in such manner. The Commission will treat the country of origin information as confidential. Carriers need not file their contracts for interconnection unless the Commission specifically requests. Carriers shall file their annual report on February 1 (covering international private lines interconnected during the preceding January 1 to December 31 period) of each year. International private lines to countries for which the Commission has authorized the provision of switched basic services over private lines at any time during a particular reporting period are exempt from this requirement. See 47 C.F.R. § 43.51(d). (5) Carriers authorized to provide private line service either on a facilities or resale basis are limited to the provision of such private line service only between the United States and those foreign points covered by their referenced applications for Section 214 authority. In addition, the carriers may not -- and their tariffs must state that their customers may not -- connect their private lines to the public switched network at either the U.S. or foreign end, or both, for the provision of international switched basic services, unless the Commission has authorized the provision of switched services over private lines to the particular country at the foreign end of the private line or the carrier is exchanging switched traffic with a foreign carrier that the Commission has determined lacks market power in the country at the foreign end of the private line. See 47 C.F.R. §§ 63.16, 63.22(e), 63.23(d). A foreign carrier lacks market power for purposes of this rule if it does not appear on the Commission list of foreign carriers that do not qualify for the presumption that they lack market power in particular foreign points. This list is available at http://www.fcc.gov/Bureaus/International/Public_Notices/1999/da990809.txt. See generally 1998 Biennial Regulatory Review - Reform of the International Settlements Policy and Associated Filing Requirements, IB Docket Nos. 98-148, 95-22, CC Docket No. 90-337 (Phase II), FCC 99-73 (rel. May 6, 1999), paras. 12-15, 102-109. (6) The Commission has authorized the provision of switched basic services via facilities-based or resold private lines between the United States and the following foreign points: Sweden, Canada, New Zealand, the United Kingdom, Australia, The Netherlands, Luxembourg, Norway, Denmark, France, Germany, Belgium, Austria, Switzerland, Japan, Italy, Ireland, Hong Kong, Iceland, Spain, Finland, Israel, Singapore, Netherlands Antilles, Poland, Argentina, United Arab Emirates, Macau, Hungary, Philippines, Greece, Uruguay, Brunei, Trinidad & Tobago, Czech Republic, the Dominican Republic, Brazil, Botswana, Costa Rica, South Africa, Saint Lucia, Saint Kitts & Nevis, Saint Vincent, Antigua, Malaysia, Thailand, Belize, Panama, Guatemala, Venezuela, Bahrain, South Korea, Portugal, Cyprus, Slovak Republic, Slovenia, Dominica, Grenada, Jamaica, Kuwait, Jordan, Paraguay, Croatia, Egypt, Zambia, Ecuador, Barbados, Colombia, Chile, El Salvador, Taiwan, Nicaragua, Turkey, Peru, Morocco, Ghana, Bolivia, Guyana, Mongolia, Zimbabwe, Gambia, Nigeria, Page 4 of 6

Salvador, Taiwan, Nicaragua, Turkey, Peru, Morocco, Ghana, Bolivia, Guyana, Mongolia, Zimbabwe, Gambia, Nigeria, Bangladesh, Indonesia, Tunisia, Qatar, Oman, Mauritius, New Caledonia, Guniea, Suriname, and Fiji Islands. (7) Carriers may engage in "switched hubbing" to countries for which the Commission has not authorized the provision of switched basic services over private lines consistent with Section 63.17(b) of the rules. (8) Carriers may provide U.S. inbound or outbound switched basic service via their authorized private lines extending between or among the United States, Sweden, New Zealand, the United Kingdom, Australia, The Netherlands, Luxembourg, Norway, Denmark, France, Germany, Belgium, Austria, Switzerland, Japan, Italy, Ireland, Hong Kong, Iceland, Spain, Finland, Israel, Singapore, Netherlands Antilles, Poland, Argentina, United Arab Emirates, Macau, Hungary, Philippines, Greece, Uruguay, Brunei, Trinidad & Tobago, Czech Republic, the Dominican Republic, Brazil, Botswana, Costa Rica, South Africa, Saint Lucia, Saint Kitts & Nevis, Saint Vincent, Antigua, Malaysia, Thailand, Belize, Panama, Guatemala, Venezuela, Bahrain, South Korea, Portugal, Cyprus, Slovak Republic, Slovenia, Dominica, Grenada, Jamaica, Kuwait, Jordan, Paraguay, Croatia, Egypt, Zambia, Ecuador, Barbados, Colombia, Chile, El Salvador, Taiwan, Nicaragua, Turkey, Peru, Morocco, Ghana, Bolivia, Guyana, Mongolia, Zimbabwe, Gambia, Nigeria, Bangladesh, Indonesia, Tunisia, Qatar, Oman, Mauritius, and New Caledonia, Guniea, Suriname, and Fiji Islands. (9) Carriers shall comply with the "No Special Concessions" rule, Section 63.14, 47 C.F.R. § 63.14. (10) Carriers regulated as dominant for the provision of a particular communications service on a particular route for any reason other than a foreign carrier affiliation under Section 63.10 of the rules shall file tariffs pursuant to Section 203 of the Communications Act, as amended, 47 U.S.C. § 203, and Part 61 of the Commission’s Rules, 47 C.F.R. Part 61. Except as specified in Section 20.15 with respect to commercial mobile radio service providers, carriers regulated as non-dominant, as defined in Section 61.3, and providing detariffed international services pursuant to Section 61.19 must comply with all applicable public disclosure and maintenance of information requirements in Sections 42.10 and 42.11. These non-dominant carriers may continue filing new or revised international tariffs for mass market services until January 28, 2002, when all tariffs, with limited exceptions, must be cancelled. Carriers may not file any new or revised contract tariffs or tariffs for other long-term international service arrangements. See 2000 Biennial Regulatory Review, Policy and Rules Concerning the International, Interexchange Marketplace, FCC 01-93, released March 20, 2001, 66 Fed. Reg. 16874 (Mar. 28, 2001). (11) Carriers shall file the annual reports of overseas telecommunications traffic required by Section 43.61(a). Carriers shall also file the quarterly reports required by Section 43.61 in the circumstances specified in paragraphs (b) and (c) of that Section. (12) Carriers shall file annual reports of circuit status and/or circuit additions in accordance with the requirements set forth in Rules for Filing of International Circuit Status Reports, CC Docket No. 93-157, Report and Order, 10 FCC Rcd 8605 (1995). See 47 C.F.R. §§ 43.82, 63.23(e). These requirements apply to facilities-based carriers and private line resellers, respectively. See also: http:www.fcc.gov/ib/pd/pf/csmanual.html (13) Carriers should consult Section 63.19 of the rules when contemplating a discontinuance, reduction or impairment of service. Further, the grant of these applications shall not be construed to include authorization for the transmission of money in connection with the services the applicants have been given authority to provide. The transmission of money is not considered to be a common carrier service. (14) If any carrier is reselling service obtained pursuant to a contract with another carrier, the services obtained by contract shall be made generally available by the underlying carrier to similarly situated customers at the same terms, conditions and rates. 47 U.S.C. § 203. (15) To the extent the applicant is, or is affiliated with, an incumbent independent local exchange carrier, as those terms are defined in Section 64.1902 of the rules, it shall provide the authorized services in compliance with the requirements of Section 64.1903. See Regulatory Treatment of LEC Provision of Interexchange Services Originating in the LEC's Local Exchange Area and Policy and Rules Concerning the Interstate, Interexchange Marketplace, Second Report and Order in CC Docket No. 96-149 and Third Report and Order in CC Docket No. 96-61, 12 FCC Rcd 15756, recon., 12 FCC Rcd 8730 (1997), Order, 13 FCC Rcd 6427 (Com. Car. Bur. 1998), further recon., FCC 99-103 (rel. June 30, 1999). (16) Except as otherwise ordered by the Commission, a carrier authorized here to provide facilities-based service that (i) is classified as dominant under Section 63.10 of the rules for the provision of such service on a particular route and (ii) is affiliated with a carrier that collects settlement payments for terminating U.S. international switched traffic at the foreign end of that route may not provide facilities-based service on that route unless the current rates the affiliate charges U.S. international carrier to terminate traffic are at or below the Commission's relevant benchmark adopted in International Settlement Rates, IB Docket No. 96-261, Report and Order, Page12 5FCC ofRcd 6 19806 (1997). See also Report and Order on

Settlement Rates, IB Docket No. 96-261, Report and Order, 12 FCC Rcd 19806 (1997). See also Report and Order on Reconsideration and Order Lifting Stay in IB Docket No. 96-261, FCC 99-124 (rel. June 11, 1999). For the purposes of this rule, "affiliation" and "foreign carrier" are defined in Section 63.09. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission's rules in regard to the grant of any of these applications may be filed within thirty days of this public notice (see Section 1.4(b)(2)). For additional information, please contact the FCC Reference and Information Center, Room CY-A257, 445 12th Street SW, Washington, D.C. 20554, (202) 418-0270. Exclusion List for International Section 214 Authorizations -- Last Modified December 22, 1999 -- The following is a list of countries and facilities not covered by grant of global Section 214 authority under Section 63.18(e)(1) of the Commission's Rules, 47 C.F.R. § 63.18(e)(1). In addition, the facilities listed shall not be used by U.S. carriers authorized under Section 63.18 of the Commission's Rules unless the carrier's Section 214 authorization specifically lists the facility. Carriers desiring to serve countries or use facilities listed as excluded hereon shall file a separate Section 214 application pursuant to Section 63.18(e)(4) of the Commission's Rules. See generally 47 C.F.R. § 63.22. Countries: Cuba (Applications for service to Cuba shall comply with the separate filing requirements of the Commission's Public Notice Report No. I-6831, dated July 27, 1993, "FCC to Accept Applications for Service to Cuba.") Facilities: All non-U.S.-licensed satellite systems that are not on the Permitted Space Station List, maintained at http://www.fcc.gov/ib/sd/se/permitted.html. See International Bureau Public Notice, DA 99-2844 (rel. Dec. 17, 1999). This list is subject to change by the Commission when the public interest requires. Before amending the list, the Commission will first issue a public notice giving affected parties the opportunity for comment and hearing on the proposed changes. The Commission may then release an order amending the exclusion list. This list also is subject to change upon issuance of an Executive Order. See Streamlining the Section 214 Authorization Process and Tariff Requirements, IB Docket No. 95-118, FCC 96-79, 11 FCC Rcd 12,884, released March 13, 1996 (61 Fed. Reg. 15,724, April 9, 1996). A current version of this list is maintained at http://www.fcc.gov/ib/td/pf/telecomrules.html#exclusionlist. For additional information, contact the International Bureau's Policy Division, (202) 418-1460. Page 6 of 6


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