Attachment Modification

This document pretains to SCL-MOD-20080714-00012 for Modification on a Submarine Cable Landing filing.

IBFS_SCLMOD2008071400012_653973

                                                                                               Stamp and Return



1776 K STREET NW
                                                                                           Colleen King
WASHINGTON, DC 20006      July 14, 2008                                                     202.719.7307
PHONE   —202.719.7000
                                                                                           cking@wileyrein.com
FAX   202.719.7049


7925 JONES BRANCH DRIVE
McLEAN, VA 22102          VIA HAND DELIVERY
PHONE   703.905.2800
FAX   703.905.2820        Marlene H. Dortch                                                  E?LEE};@{J §?§§{§
                          Secretary                                                                JUL 1 4 2008
                          Federal Communications Commission                                Federal Communieations n
www.wileyrein.com
                          445 12th Street, SW                                                   OfficoftheSecrarayy">
                          Washington, D.C. 20554


                          Dear Ms. Dortch:

                          Attached please find an application to modify the Trans—Pacific Express Cable
                          Network. If you have any questions, please contact Nancy J. Victory (202—719—
                          7344 or nvictory@wileyrein.com) or the undersigned.

                          Sincerely,

                          [»bla /5
                          Colleen King


                                    Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                              Washington, D.C. 20554




In the Matter of

Trans—Pacific Express Cable Network
Consortium                                               File No. SCL—MOD—2008—

Application to Modify the Trans—Pacific
Express Cable Network



                       APPLICATION TO MODIFY THE TRANS—PACIFIC
                            EXPRESS CABLE NETWORK

       The Trans—Pacific Express Cable Network ("TPE") Consortium,‘ pursuant to Section

1.767 of the rules of the Federal Communications Commission ("Commission" or "FCC"), 47

C.FR. § 1.767, hereby seeks to modify the authorization to construct, land, and operate the

Trans—Pacific Express Cable Network. Specifically, the TPE Consortium seeks to add NTT

Communications Corporation ("NTT Com") as a licensee on the TPE cable and to extend the

TPE cable to add a landing station in Shinmaruyama, Japan. MCI International, Inc.

("Verizon"), a member of the TPE Consortium, requests that the FCC condition the grant of this

modification application on the continued compliance of Verizon with the commitments and

undertakings contained in its December 20, 2007 Agreement with the Executive Branch

Agencies."




1      The TPE Consortium is composed of the original six parties to the Trans—P acific Express
Cable Network Construction and Maintenance Agreement.

2      See Actions Taken Under Cable Landing License Act, Report No. SCL—00052, DA No.
08—66, File No. SCL—L1IC—20070222—00002 at 3 (granted Jan. 10, 2008) ("TPE Public Notice").


1.     REQUEST FOR MODIFICATION

       On February 20, 2007, the TPE Consortium applied for a license to construct, land, and

operate the TPE cable." This authorization was granted on January 10, 2008.* As explained in

the TPE Application, each of the six original TPE Consortium parties owns a 16.666666%

interest in all international waters segments of the cable network. The individual parties own and

control each landing station and the portion of the cable that connects that landing station to the



responsible for operating the landing terminal equipment for the cable in the respective home

service territories: Verizon — Nedonna Beach/Hillsboro landing station; China Netcom —

Qingdao landing station; China Telecom — Chongming landing station; Chunghwa Telecom —

Tanshui landing station; and, KT — Keoje landing station.©

        On March 21, 2008, the TPE Consortium filed an application to add AT&T Corp.

("ATTC") as a licensee on the TPE cable.‘ Under this modification, and with the FCC‘s

approval, ATTC will join the TPE Consortium and acquire a 9.43% interest in the international

3       Trans—Pacific Express Cable Network Consortium, Application for a License to
Construct, Land and Operate an Undersea Optical Cable System Linking Mainland China, South
Korea, Taiwan and the United States, File No. SCL—LIC—20070222—00002 (filed Feb. 20, 2007)
("TPE Application").

4       TPE Public Notice.

5      See TPE Application at 11—12. WCI Cable Inc. ("WCIC") owns and operates the cable
landing station at Nedonna Beach and will provide certain services to Verizon in support of the
TPE Network operations. The FCC granted Verizon a waiver of section 1.767(h)(1) and did not
require WCIC to be on this Cable Landing License because WCIC will not have the ability to
affect the operation of the TPE Network. See TPE Public Notice at 3.

 6      TPE Public Notice at 2.
 7      See Trans—Pacific Express Cable Network Consortium, Application to Modify the Trans—
 Pacific Express Cable Network, File No. SCL—MOD—20080321—00003 (filed Mar. 21, 2008).
 This modification application was placed on public notice on April 11, 2008. See Public Notice,
 Streamlined Submarine Cable Landing License Applications Accepted for Filing, Report No.
 SCL—000608, File No. SCL—MOD—20080321—00003 (Apr. 11, 2008).


waters segments of the TPE cable. The ownership of all other parties in the international waters

segments will be reduced from 16.66% to 15.09%.

           This application seeks FCC approval to add NTT Com as an additional licensee of the

TPE cable and to extend the cable to add a landing station in Shinmaruyama, Japan. On March

14, 2008, the TPE Consortium entered into an agreement with NTT Com. Under this agreement,

and with the Commission‘s approval, NTT Com will join the TPE Consortium and acquire a

13.11% interest in the international waters segments of the TPE cable. With the addition of NTT

Com, all parties except for ATTC will hold a 13.11% interest in the international waters

segments, and ATTC will hold a 8.20% interest in the international waters segment of the cable.

The addition of NTT Com as a licensee/owner will not affect ownership in any of the existing

landing stations.

           This application also seeks to add a landing station for the TPE cable in Shinmaruyama,

Japan. As described in the TPE Application, currently operational cable landing stations in

Qingdao, China; Chongming, China; Tanshui, Taiwan; and Keoje, South Korea are connected

via branching units ("BU") to form an intra—Asian ring." The Shinmaruyama landing station,

which will be operated by NTT Com, will be added to this intra—Asian ring via an additional BU.

Other than the addition of NTT Com as a licensee and the addition of the cable landing station in

Shinmaruyama, Japan, this application does not seek to modify any portion of the TPE cable

license.

           Grant of this application to modify the license for the TPE cable to add NTT Com as a

licensee and to add a landing station in Japan will serve the public interest. Grant of the

application will enable NTT Com to become a part of the TPE Consortium and to bring


8          See TPE Application at 2.


additional experience, expertise and financial resources that will further ensure the successful

construction and operation of the cable. Moreover, the addition of a landing station in

Shinmaruyama, Japan to the TPE cable‘s configuration will enable the TPE cable to provide an

alternate cable route to Japan and will expand the ability of consumers to reach an additional

point of communication. Finally, the proposed modification will not consolidate any market

served by the TPE cable nor distort competition in any U.S. market.


IL.    INFORMATION REQUIRED BY 47 C.F.R. § 1.767

       The information requested by Sections 1.767(a)(1)—(3) and (8)—(9) of the Commission‘s

rules, 47 CF.R. § 1.767(a)(1)—(3) and (8)—(9), for NTT Com can be found in the attached

Appendix A.

       The information requested by Section 1.767(a)(5) of the Commission‘s rules, 47 C.F.R. §

1.767(a)(5), regarding the cable landing station in Shinmaruyama, Japan can be found in the

attached Appendix B.


III.   REQUEST FOR STREAMLINED PROCESSING

       This application is eligible for streamlined processing under Section 1.767(k) of the

Commission‘s rules. 47 C.F.R. § 1.767(k). The demonstration that this application meets the

eligibility requirements for streamlining is included in the attached Appendix A.


IV.    CONCLUSION

       The TPE Consortium respectfully requests that the Commission grant this modification

application.


                                                     Respectfully submitted,

                                                     MCJ International, Inc. ("Verizon"), on
                                                     behalf of the TPE Consortium"

                                                     By:eelcr _/ A‘nmahlir,
                                                        Leslie V. Owsley
                                                        VERIZON
                                                         1515 North Court House Road
                                                        Suite 500
                                                        Arlington, VA 22201—2909
                                                        Tel: (703) 351—3158
                                                        Fax: (703) 351—3662

July /4, 2008




°      Section 1.767(m)(1) of the Commission‘s rules permits joint applicants or licensees to
appoint one party to act as proxy to sign applications to modify a license. 47 C.F.R. §
1.767(m)(1).


                                              APPENDIX A

       NTT Communications Corporation ("NTT Com") is a telecommunications and
information service provider in Japan. NTT Com provides diverse high—quality IP, Web—based,
and managed network solutions combining network management, security, Web portals/engines,
and global services. The Commission previously approved the transfer of control of NTT
America, Inc. to NTT Com.‘

INFORMATION REQUIRED BY 47 C.E.R. § 1.767(a)

        (1)      Name, Address and Telephone Number of the Applicant

        NTT Communications Corporation
         1—1—6 Uchisaiwai—cho, Chiyoda—ku
        Tokyo 100—8019, Japan
        Tel: 81—3—3500—8111
        (2)      Place of Formation

        NTT Com is incorporated under the laws of Japan.

        (3)      Correspondence concerning the application should be sent to the following:

        Yoshio Sato
        Senior Manager, Global Network Solution
        Network Business Division
        NTT Hibiya Building 6F
        1—1—6 Uchisaiwai—cho Chiyoda—ku
        Tokyo 100—8019, Japan
        Tel: +81—3—6700—7550
        Fax: +81—3—5157—0658
        Email: yoshi.sato@ntt.com


        (4)      Certification and Ownership Information Requested by Sections 63.18(h)—(k)
                and (0) of the Commission‘s Rules

Information requested by Section 63.18(h);

       NTT Com is a direct, wholly—owned subsidiary of Nippon Telegraph and Telephone
Corporation ("NTT"). NTT‘s address is 3—1, Otemachi 2—chome, Chiyoda—ku, Tokyo 100—8116,
Japan and it is incorporated under the laws of Japan. NTT is a holding company that owns
operating subsidiaries that provide a range of communications services, and is the research and
development body for the entire NTT group. As of September 30, 2007, the Japanese Minister
of Finance held 33.72% of issued shares in NTT. The address for the Japanese Minister of

‘      See Public Notice, International Authorizations Granted, Report No. TEL—01034, DA 06—1235, File No.
ITC—T/C—20060320—00163 (June 8, 2006).




                                                Page 1 of 4


Finance is 3—1—1 Kasumigaseki Chiyoda—ku, Tokyo 100—8940 Japan. No other shareholder holds
10 percent or more of the equity of NTT.

     Mr. Osamu Inoue and Mr. Jun Sawada are members of the Board of Directors of both
NTT Com and NTT America, Inc.


Information requested by Section 63.18(i):

        NTT Com is a foreign carrier in Japan and has affiliations with the following foreign
carriers:

       Name of the Affiliated Carrier         Locations in which carrier is
                                              authorized to provide
                                              telecommunications services to the
                                              public:

NTT Com Asia Ltd.                             China
NTT Com Asia Network Systems                  China
(Guangzhou) Company Limited
HKNet Company Ltd.                            China
HKNet Wireless Co. Ltd.                       China
NTT Taiwan Ltd.                               Taiwan
NTT Korea Co., Ltd.                           Korea

Information requested by Section 63.18(§):

         NTT Com seeks to provide service in Japan, where the company is a foreign carrier and
is affiliated with foreign carriers. NTT Com also seeks to provide service in mainland China,
Korea and Taiwan, where NTT Com is affiliated with the following foreign carriers:

Name of Affiliated Carrier                               Location   Ownership by
 |                                                                  NTT Com
NTT Com Asia Ltd.                                        China      Wholly owned
NTT Com Asia Network Systems (Guangzhou)                 China      Wholly owned
Company Limited                                                     (indirect)
HKNet Company Ltd.                                       China      Wholly owned
HKNet Wireless Co. Ltd.                                  China      Wholly owned
                                                                    (indirect)
NTT Taiwan Ltd.                                          Taiwan     Wholly owned
NTT Korea Co., Ltd.                                      Korea      Wholly owned




                                           Page 2 of 4


Information requested by Section 63.18(k):

       Mainland China, Japan, Korea and Taiwan are all members of the WTO.

Information requested by Section 63.18(0):

         NTT Com certifies pursuant to sections 1.2001 through 1.2003 of the Commission‘s rules
that it is not subject to a denial of Federal benefits pursuant to Section 5301 of the Anti—Drug
Abuse Act of 1988.

       (5)     Routine Conditions Specified in Section 1.767(g) of the Commission‘s Rules,
               47 C.F.R. § 1.767(g).                                              ‘

       NTT Com certifies that it accepts and willabide by the routine conditions specified in
Section 1.767(g) of the Commission‘s rules, 47 C.F.R. § 1.767(g).

ELJIGIBILITY FOR STREAMLINED PROCESSING — 47 C.E.R. § 1.767(k)

     NTT Com hereby certifies that it is a foreign carrier in Japan, which is a member of the
WTO, and that it agrees to accept and abide by the reporting requirements contained in Section
1.767(1) of the Commission‘s rules, 47 C.F.R. § 1.767(1).




                                          Page 3 of 4


                                           Certification

I am authorized to enter this certification on behalf of NTT Com.

All of the information contained in this application is true and correct to the best of my
knowledge and belief.




                                                      Yoshimasa Tokui
                                                      Senior Executive Manager and Member of
                                                      the Board
                                                      Network Business Division
                                                      1—1—6 Uchisaiwai—cho Chiyoda—ku,
                                                      Tokyo 100—8019 Japan
                                                      Tel: 81—3—6700—7000
                                                      For and on behalf of NTT
                                                      Communications Corporation


                                                      Dated: July /;, 2008




                                            Page 4 of 4


                                     APPENDIX B

The Shinmaruyama, Japan landing station will be operated by NTT Com.

Location of the Shinmaruyama landing station:

2698 Shirako aza Kawauchi,
Minamibousou—shi, Chiba Pref. 299—2521

35° 00.200‘ N
139° 58.320‘E

Beach Manholes:

Beach Manhole South
35° 00.324‘ N
139° 58.494‘E

Beach Manhole North
35° 00.768‘ N
139° 58.780° E


                                                                                                                                          A
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                                                                        35.00.200‘N
                                                                        139.58.320°E
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                                                                                                4

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                                CERTIFICATE OF SERVICE

I, Pam Conley, do hereby certify that on July 14, 2008, I served a copy of the Application to
Modify the Trans—Pacific Express Cable Network upon the following parties by U.S. first—class
mail, postage pre—paid:




Ambassador David Gross                        Kathy Smith
U.S. Coordinator                              Office of Chief Counsel/NTIA
EB/CIP                                        U.S. Department of Commerce
U.S. Department of State                      14"" Street and Constitution Ave., N.W.
2201 C Street, N.W.                           Washington, D.C. 20230
Washington, D.C. 20520—5818

Hillary Morgan
Defense Information Systems Agency
Code RGC
701 S. Courthouse Road
Arlington, VA 22204




                                                                   Pam Conley%



Document Created: 2008-07-15 10:06:29
Document Modified: 2008-07-15 10:06:29

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