Attachment Proof of Grant SCL

This document pretains to SCL-LIC-19980501-00038 for License on a Submarine Cable Landing filing.

IBFS_SCLLIC1998050100038_975407

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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

In the Matter of                             )
                                         )
AT&T CORP.                                   )
                                             )    File No. SCL-98-003
MCI INTERNATIONAL, INC.                  )          SCL-98-003A
                                         )
PACIFIC GATEWAY EXCHANGE                 )
   (BERMUDA) LIMITED                         )
                                         )
SPRINT COMMUNICATIONS COMPANY     L.P.       )
                                         )
LC COMMUNICATIONS                        )
                                             )
THE ST. THOMAS AND SAN JUAN                  )
  TELEPHONE COMPANY, INC.                    )
                                         )
TELECOMMUNICACIONES ULTRAMARINAS         )
   DE PUERTO RICO                            )
                                         )
TELEFONICA LARGE DISTANCIA DE            )
   PUERTO RICO, INC.                         )
                                         )
TRICOM USA, INC.                             )
                                         )
TELEGLOBE USA INC.                       )
                                         )
IMPSAT USA, INC.                             )
                                         )
GTE COMMUNICATIONS CORPORATION               )
                                         )
IDB WORLDCOM SERVICES, INC.                  )
                                         )
STAR TELECOMMUNICATIONS, INC.            )
                                         )
WORLDxCHANGE COMMUNICATIONS              )
                                         )
LAMBDA OPERATIONS CORP.                  )
                                         )
IDT CORPORATION                              )
                                         )
TELIA NORTH AMERICA, INC.               )
 Joint application for a license to land and operate        )
a digital submarine cable system among Florida,   )
Puerto Rico, the U.S. Virgin islands, Martinique,       )
Curacao, Trinidad, Venezuela, French Guiana and   )
Brazil, the AMERICAS-II Cable System         )

                      CABLE LANDING LICENSE

Adopted: November 3, 1998                              Released: November 10, 1998

By the Chief, Telecommunications Division:

                            I.   Introduction

     1.   In this Order, we grant the joint application of the participating parties (Joint
Applicants), under the Cable Landing License Act for authority to land and operate a digital submarine
cable system to be called the AMERICAS-II Cable System (AMERICAS-II) extending among Florida,
Puerto Rico, the U.S. Virgin Islands (USVI), Martinique, Curacao, Trinidad, Venezuela, French Guiana,
and Brazil. The cable will be operated on a common carrier basis. We find that the Joint Applicants
have provided sufficient information under our rules to comply with the Cable Landing License Act and
therefore grant the cable landing license subject to the conditions listed below.


                         II.     Application

     2.   AT&T is a corporation organized under the laws of New York. MCII, TRICOM,
TELEGLOBE, IMPSAT, GTECC, WORLDCOM, STAR, CENTENNIAL, IDT, and TELIA are
corporations organized under the laws of Delaware.   PGE is a corporation organized and existing under
the laws of Bermuda.   STSJ is a corporation organized under the laws of the USVI. TUPR and TLDI are
corporations organized and existing under the laws of the Commonwealth of Puerto Rico. Sprint is a
limited partnership organized under the laws of Delaware and LCC is a trade name for International
Telecom, Inc., a corporation organized and existing under the laws of Delaware. WORLDxCHANGE is
the doing business name of Communication TeleSystems International, a corporation organized and
existing under the laws of the state of California. Each of the Joint Applicants is a common carrier
subject to the Communications Act of 1934, as amended.

     3.   The Joint Applicants propose to land and operate AMERICAS-II as a common carrier
system owned by the Joint Applicants and by entities authorized to land and operate an international
submarine fiber optic cable system in Martinique, Curacao, Trinidad, Venezuela, French Guiana, and
Brazil. The proposed AMERICAS-II system will extend among landing points at cable stations in
Hollywood, Florida; Miramar, Puerto Rico; St. Croix, USVI; Le Lamentin, Martinique; Willemstad,
Curacao; Camuri, Venezuela; Chaguaramas, Trinidad; Cayenne, French Guiana; and Fortaleza, Brazil
and will be connected with the domestic networks in those countries or territories. The Joint Applicants
expect to activate AMERICAS-II by September 15, 1999.

     4.   AMERICAS-II will include two segments (S and T) and various subsegments and
branching units. Segment S and Subsegments S1-S13 will include the whole of the submarine cable and
associated equipment. Segments T1 through T9 consist of the cable stations and necessary land,
services, and equipment at Fortaleza, Brazil (T1); Cayenne, French Guiana (T2); Chaguaramas, Trinidad
(T3); Camuri, Venezuela (T4); Willemstad, Curacao (T5); Le Lamentin, Martinique (T6); St. Croix,
USVI (T7); Hollywood, Florida (T8); and Miramar, Puerto, Rico (T9).

     5.   AMERICAS-II will consist of three interconnected rings (North, South, and West
Systems), each operating at 2.5 gigabits per second (Gbps) per wavelength, initially in separate collapsed
ring configurations, and a dedicated link between Curacao and Venezuela not operating in a collapsed
ring configuration. As described below, each fiber pair in each of the three Systems will have a capacity
of thirty-two 155 megabits per second (Mbps) Basic System Modules (BSM), with each BSM containing
63 Minimum Investment Units (MIUs) and equipped at the outset for a capacity of 1008 MIUs.
Subsegments S2, S4, S6, S7, S8, and S10 will consist of two optical fiber pairs operating at 2.5 Gbps per
wavelength. Subsegments S1, S3, S5, S9, S11, S12, and S13 will consist of four optical fiber pairs
operating at 2.5 Gbps per wavelength. AMERICAS-II will be connected at all of the landing points with
the domestic networks in those places. In addition, AMERICAS-II will be extended by suitable facilities
to the borders of other countries or to the terminals of other international communications systems,
including other cable terminals and satellite earth stations.

     6.   The North System will contain four fiber pairs in a collapsed ring configuration with ten
wavelengths per fiber pair resulting in a total capacity of 20,160 MIUs for operation and 20,160 MIUs
for protection, the cable station at Hollywood, Florida, an appropriate share of the cable station at St.
Croix, USVI, and the system interfaces. These four fiber pairs will initially be configured as two
independent bi-directional rings, each consisting of two fiber pairs directly interconnecting St. Croix,
USVI and Hollywood, Florida.

     7.   The South System capacity will support the South Ring System and the Southwest
System. The South Ring System will contain four fiber pairs in a collapsed ring configuration with eight
wavelengths per fiber pair resulting in a total capacity of 16,128 MIUs for operation and 16,128 MIUs
for protection, the cable station at Fortaleza, Brazil, an appropriate share of the cable station at St. Croix,
USVI, the Branch cable stations or an appropriate share of those cable stations, and the system
interfaces. These four fiber pairs will be initially configured as two independent bi-directional rings,
each consisting of two fiber pairs.

     8.   The West System will contain four fiber pairs interconnecting St. Croix, USVI and
Puerto Rico, with only two fiber pairs initially equipped with four wavelengths each, in a bi-directional
collapsed ring configuration, resulting in a total capacity of 4,032 MIUs for operation and 4,032 MIUs
for protection (including the cable station at Puerto Rico), an appropriate share of the cable station at St.
Croix, USVI, and the system interfaces. These four fiber pairs will initially be configured as two
independent bi-directional rings, each consisting of two fiber pairs directly interconnecting St. Croix,
USVI and Miramar, Puerto Rico.

                          III.     Comments

     9.   The AMERICAS-II joint application was placed on public notice on May 13, 1998. The
amended joint application was placed on public notice on August 5, 1998. No comments were received.
Pursuant to Section 1.767(b) of the Commission's rules, the Cable Landing License Act, and Executive
Order No. 10530, we informed the Department of State of the application and the amended application.
The Department of State advised the Commission that it has no objection to the issuance of the cable
landing license.

                         IV.     Discussion

     10. The Joint Applicants have all certified that they have not agreed and will not agree to
accept special concessions from any foreign carrier. The Joint Applicants, with the exception of MCII
and GTECC, further certify that any affiliated foreign carriers do not have market power or the ability to
discriminate against unaffiliated carriers through control of bottleneck services and facilities on any of
the routes served by AMERICAS-II. To the extent that MCII and GTECC or any of the Joint
Applicants provide common carrier service over AMERICAS-II between the United States and a market
for which they are regulated as a dominant carrier under Section 63.10 of the Commission's rules, their
use of AMERICAS-II on those routes will be subject to the Commission's dominant carrier safeguards of
Section 63.10. Accordingly, we find that the Joint Applicants' foreign affiliations do not raise concerns
that could persuade us to deny the application under Section 2 of the Cable Landing License Act.

     11. AMERICAS-II will have three landing points in the United States: Hollywood, Florida;
Miramar, Puerto Rico; and St. Croix, USVI. The new Hollywood, Florida cable terminal will be located
at 460 NE 215th Street, Miami, Florida 33179. The beach manhole is planned for Cody Street in


Hollywood, Florida. The other two U.S. landing points are a matter of public record. We find that the
application's descriptions of AMERICAS-II's landing points are sufficient to satisfy the requirement of
Section 1.767(a)(5) of the Commission's rules.

     12. Based on the information provided by the Joint Applicants and pursuant to the
Commission's procedures implementing the National Environmental Policy Act of 1969, we conclude
that the grant of the requested authorization would not significantly affect the environment.
Consequently, the Joint Applicants are not required to submit an environmental assessment, and this
application is categorically excluded from environmental processing.

     13. Accordingly, we conclude that U.S. interests under the Cable License Landing Act will
be served by grant of the license to the Joint Applicants to land and operate AMERICAS-II, as
conditioned below.

                       V.   Ordering Clauses

     14. Consistent with the foregoing, we hereby GRANT AND ISSUE the Joint Applicants a
license to land and operate an optical fiber submarine cable system (consisting of two or four fiber pairs
depending on subsegment, operating at 2.5 Gbps per wavelength) extending among landing points at
cable stations in Hollywood, Florida; St. Croix, U.S. Virgin Islands; Miramar, Puerto Rico; Le
Lamentin, Martinique; Willemstad, Curacao; Camuri, Venezuela; Chaguaramas, Trinidad; Cayenne,
French Guiana; and Fortaleza, Brazil under the provisions of the Cable Landing License Act and
Executive Order 10530. This grant is subject to all rules and regulations of the Federal Communications
Commission; any treaties or conventions relating to communications to which the United States is or
may hereafter become a party; any action by the Commission or the Congress of the United States
rescinding, changing, modifying or amending any rights accruing to any person hereunder; and the
following conditions:

                         (1) The location of the cable system within the territorial waters of the United States
               of America, its territories and possessions, and upon its shore shall be in
               conformity with plans approved by the Secretary of the Army, and the cables
               shall be moved or shifted by the Licensees at their expense upon the request of
               the Secretary of the Army, whenever he or she considers such course necessary
               in the public interest, for reasons of national defense, or for the maintenance or
               improvement of harbors for navigational purposes;

                         (2) The Licensees 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;

                         (3) The Licensees or any persons or companies controlling them, controlled by
               them, or under direct or indirect common control with them do not enjoy and
               shall not acquire any right to handle traffic to or from the United States, its
               territories, or its possessions unless such service be authorized by the
               Commission pursuant to Section 214 of the Communications Act, as amended;

                         (4) The Licensees or any persons or companies controlling them, controlled by
               them, or under direct or indirect common control with them shall not acquire or
               enjoy any right to land, connect, or operate submarine cables that is denied to
               any other United States company by reason of any concession, contract,
               understanding, or working arrangement to which the Licensees or any persons
               controlling them, controlled by them, or under direct or indirect common control
               with them are parties;

                         (5) Neither this license nor the rights granted herein shall be transferred, assigned,
               or in any manner either voluntarily or involuntarily disposed of or disposed of
               indirectly by transfer of control of the Licensees to any persons, unless the
               Federal Communications Commission shall give prior consent in writing;

                         (6) The Commission reserves the right to require the Licensees to file an
               environmental assessment or environmental impact statement should it
               determine that the landing of the cables at those locations and construction of
               necessary cable landing stations would significantly affect the environment
               within the meaning of Section 1.1307 of the Commission's procedures
               implementing the National Environmental Policy Act of 1969; this license is
               subject to modification by the Commission upon its review of any environmental
               assessment or environmental impact statement that it may require pursuant to its
               rules;

                         (7) Pursuant to Section 2 of the Cable Landing License Act, 47 U.S.C. 35;
               Executive Order No. 10530, as amended; and Section 214 of the
               Communications Act of 1934, as amended, 47 U.S.C. 214, the Commission
               reserves the right to impose additional common carrier or common-carrier-like
               regulation on the operations of the cable system if it finds that the public interest
               so requires;

                         (8) The Licensees shall maintain de jure and de facto control of the U.S. portion of
               the cable system, including the cable landing stations in the United States,
               sufficient to comply with the requirements of this license;

                         (9) This license is revocable by the Commission after due notice and opportunity for
               hearing pursuant to section 2 of "An Act Relating to the Landing and Operation
               of Submarine Cables in the United States," 47 U.S.C. 35, or for failure to
               comply with the terms of the authorizations;

                         (10) The Licensees shall notify the Commission in writing of the date on which the
               cable is placed in service, and this license shall expire 25 years from such date,
               unless renewed or extended upon proper application, and, upon expiration of this
               license, all rights granted under it shall be terminated; and


                        (11) The terms and conditions upon which this license is given shall be accepted by
              the Licensees by filing a letter with the Secretary, Federal Communications
              Commission, Washington, D.C. 20554 within 30 days of the release of the cable
              landing license.

     15. This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R. 0.261,
and is effective upon release. Petitions for reconsideration under Section 1.106 or applications for
review under Section 1.115 of the Commission's rules, 47 C.F.R. 1.106, 1.115, may be filed within 30
days of the date of public notice of this order (see 47 C.F.R. 1.4(b)(2)).


                                                           FEDERAL COMMUNICATIONS COMMISSION




                                                           Diane J. Cornell
                                                           Chief, Telecommunications Division
                             International Bureau



Document Created: 2012-11-16 11:49:24
Document Modified: 2012-11-16 11:49:24

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