Public Notice SCL00061

Action Taken Public Notice

Submarine Cable Landing

2008-05-07

FCC.report > IB > Public Notices > SCL00061

Filings Included

File Number	Service
SCL-LIC-20070621-00009	Submarine Cable Landing

IBFS_PN_636513

SCL-LIC-20070621-00009 E Telstra Incorporated
Submarine Cable Landing License
Grant of Authority Date of Action: 05/06/2008

Acceptability for Filing Public Notice: The Application was placed on Public Notice on July 25, 2007. See Telstra Incorporated. Application for
a License to Land and Operate a Fiber-Optic Submarine Cable System extending between Sydney, Australia and Keawaula, Oahu, Hawaii, for the
Sydney-Hawaii Cable System, File No. SCL-LIC-20070621-00009, Public Notice, Non-Streamlined Submarine Cable Landing License
Applications Accepted for Filing, Report No. SCL-00036NS (Int'l Bur., July 25, 2007). No oppositions or other comments were filed in response
to the Public Notice.

The Application has been coordinated with the Department of State and other relevant Executive Branch agencies pursuant to section 1.767(b) of
the Commission's rules, 47 C.F.R. §1.767(b), and consistent with procedures established with the Department of State. See Review of
Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106, Report and Order, 16 FCC Rcd 22167,
22192-193, paras. 51-52 (2001) (Submarine Cable Landing License Report and Order); Streamlined Procedures for Executive Branch Review of
Submarine Cable Landing License Requests, State Department Media Note (Revised) (rel. Dec. 20, 2001) available at
http://www.state.gov/r/pa/prs/ps/2001/6951.htmll. The Department of Homeland Security and the Department of Justice (collectively, the
"Executive Branch agencies") filed a Petition to Adopt Conditions to Authorizations and Licenses on April 17, 2008.

Actions Taken: Grant of Cable Landing License to Telstra Incorporated ("Telstra USA") and AT&T Corp (ATTC, jointly as the "Applicants") for
the purpose of landing and operating a non-common carrier fiber-optic submarine cable system between Sydney, Australia and Keawaula, Oahu,
Hawaii ("the Sydney-Hawaii Cable System").

Licensee Information: Telstra USA is a wholly-owned subsidiary of Telstra Holdings PTY Limited, an Australian holding company. Telstra
Holdings PTY Limited in turn is a wholly-owned subsidiary of Telstra Corporation, a corporation organized under the laws of Australia engaged
in the business of telecommunications. Telstra Corporation is a publicly traded company. The Future Fund Board of Guardians, an Australian
Commonwealth Government investment fund, holds approximately 17% of Telstra Corporation's shares. No other person or entity holds a ten
percent or greater ownership interest in Telstra Corporation.

ATTC is a direct, wholly-owned subsidiary of AT&T Inc. AT&T Inc. is a publicly traded corporation whose stock is widely held with no person
or entity holding a ten percent or greater ownership interest.

Cable System Description: The Sydney-Hawaii Cable System will be a fiber-optic submarine cable system between Sydney, Australia and
Keawaula, Oahu, Hawaii. Telstra USA will own and control the portion of the cable system located in territory subject to the jurisdiction of the
United States, including U.S. territorial waters. Telstra Corporation Limited (Telstra Corporation), the indirect parent of Telstra USA, will own
and control the cable from the landing point in Sydney to the point where Telstra USA's ownership begins in U.S. territorial waters, and owns the
cable landing station in Sydney. ATTC owns and operates the cable landing station in Keawaula, Hawaii, but does not have any voting or
ownership interest in any other part of the cable system. The Applicants state that Telstra USA and ATTC will maintain de jure and de facto
control over the entire U.S. portion of the Sydney-Hawaii Cable System, and will maintain such control over matters that will affect the U.S.
portion of the system, including over matters such as operations, maintenance, upgrades and decommissioning of the cable system.

Cable Design and Capacity: The Sydney-Hawaii Cable System will span 5,600 miles (9,000 kilometers), linking an existing cable station in
Sydney to an existing cable station in Keawaula. The system will be a high capacity digital fiber optic system with a design capacity of 640
Gigabits/sec per fiber pair on two fiber pairs (a total of 1280 Gbps). The system will provide an initial capacity of 80 Gigabits/sec.

Regulatory Status of Cable: The Applicants will operate the Sydney-Hawaii Cable System on a non-common carrier basis. Teslstra USA states
that there is sufficient existing or planned facilities on the route or on alternative routes to prevent it from exercising market power in offering
services. It also states that capacity will not be sold indifferently to the user public, but will be assigned pursuant to individualized decisions and
tailored arrangements based on the needs of the individual capacity purchaser. Application at 5-8.

Applicants have provided information and demonstrated that the proposed operation of the cable on a non-common carrier basis satisfies the
requirements set forth in National Association of Regulatory Utility Commissioners v. FCC, 525 F.2d 630, 642 (D.C. Cir 1976) (NARUC I), cert.
denied, 425 U.S. 992 (1976). See also, Submarine Cable Landing License Report and Order, 16 FCC Rcd at 22202-22203, paras. 69-70; Review
of Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106, Notice of Proposed Rulemaking 15
FCC Rcd 20789, at 20815-20818, paras. 62-67.

Conditions and Requirements: Applicants shall comply with the routine conditions set out in section 1.767(g)(1)-(14) of the Commission's rules.
See 47 C.F.R. § 1.767(g)(1)-(14), and with the requirements of section 1.768 of the Commission's rules, 47 C.F.R. § 1.768 (notifications and prior
approval for submarine cable landing licensees that are or propose to become affiliated with a foreign carrier).

Telstra Incorporated and AT&T Corp. "shall at all times comply with any requirements of United States government authorities regarding the
location and concealment of the cable facilities, buildings, and apparatus for the purpose of protecting and safeguarding the cables from injury or
destruction by enemies of the United States of America." 47 C.F.R. § 1.767(g)(3). The International Bureau will inform the licensees of specific
requirements in connection with this condition.

Telstra Corporation is classified as a dominant carrier on the U.S.-Australia route pursuant to section 63.10 of the Commission's rules, 47 C.F.R.
§63.10. Accordingly, Telstra USA agrees to accept and abide by the reporting requirements in section 1.767(l) of the Commission's rules, 47
C.F.R. §1.767(l).

We grant the Petition to Adopt Conditions to Authorizations and Licenses (Petition) filed in this proceeding on April 17, 2008 by the Department
of Homeland Security and Department of Justice. Accordingly, we condition grant of this application on Telstra Incorporated abiding by the
commitments and undertakings contained in the Agreement between Telstra Incorporated and the Department of Homeland Security dated April
16, 2008. A copy of the Petition and the Agreement are publicly available and may be viewed on the FCC web-site through the International
Bureau Filing System (IBFS) by searching for SCL-LIC-20070621-00009 and accessing "Other filings related to this application" from the
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Document Created: 2008-05-06 16:16:08
Document Modified: 2008-05-06 16:16:08

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