Attachment SAm-1 SCL Mod App fo

This document pretains to SCL-MOD-20190826-00028 for Modification on a Submarine Cable Landing filing.

IBFS_SCLMOD2019082600028_1869618

                                    Before the
                       FEDERAL COMMUNICATIONS COMMISSION
                                  Washington, D.C.




In the Matter of

TELXIUS CABLE USA, INC.,                                File No. SCL-MOD-2019-___________
TELXIUS CABLE PUERTO RICO, INC., AND
TELXIUS CABLE AMÉRICA, S.A.

Application for Authority to Operate Segments
Connecting Ecuador and Peru, and Modify the
Cable Landing License, for

THE SOUTH AMERICA-1 (“SAM-1”) SYSTEM




              APPLICATION TO MODIFY CABLE LANDING LICENSE—
                    STREAMLINED PROCESSING REQUESTED


       Telxius Cable USA, Inc. (“Telxius USA,” FRN 0006650618), Telxius Cable Puerto Rico,

Inc. (“Telxius Puerto Rico,” FRN 0022340921), and Telxius Cable América, S.A. (“Telxius

América,” FRN 0022340871) (together with Telxius USA and Telxius Puerto Rico,

“Applicants”) hereby apply to modify the cable landing license for the South America-1 (“SAm-

1”) submarine cable system to authorize segments connecting Punta Carnero, Ecuador, and

Mancora, Peru. The Applicants request streamlined processing for this application pursuant to

47 C.F.R. § 1.767(k)(2), as none of the Applicants are affiliated with any foreign carrier with

market power in Ecuador or Peru.

       SAm-1 is a non-common carrier system connecting Florida; Puerto Rico; Argentina;

Brazil; Chile; Colombia; Ecuador; Guatemala; and Peru. The Commission granted a cable


landing license for SAm-1 on August 10, 2000,1 and SAm-1 entered commercial service on

March 26, 2001. The Commission subsequently modified that cable landing license to authorize

the extension of SAm-1 to Colombia,2 and the Colombia spur entered commercial service in

2008. The Applicants have also applied to modify the SAm-1 Cable Landing License to add a

landing in the Dominican Republic.3

        Upon further review of the licensing history for the SAm-1 system, the Applicants and

their current counsel discovered that no request had ever been filed with the FCC seeking

modification of the SAm-1 Cable Landing License to add the segments connecting Punta

Carnero, Ecuador, and Mancora, Peru, to the scope of the license, although those facilities have

been referenced in other filings made with the Commission.4 This omission was inadvertent, and

the Applicants seek to remedy it in filing this license modification request and associated request

for special temporary authority.

        In part I of this application, the Applicants provide the information required by 47 C.F.R.

§ 1.767. In part II, the Applicants request streamlined processing for this application.


I.      COMPLIANCE WITH 47 C.F.R. § 1.767

        In accordance with 47 C.F.R. § 1.767 and Executive Order No. 10,530, the Applicants

submit the following information:




1
     Telefónica SAM USA, Inc. and Telefónica SAM de Puerto Rico, Inc., Cable Landing License,
     15 FCC Rcd. 14,915 (Int’l Bur. 2000) (“SAm-1 Cable Landing License”).
2
     Actions Taken Under Cable Landing License Act, Public Notice, 22 FCC Rcd. 6630 (Int’l
     Bur. 2007).
3
     Application to Modify the SAm-1 Cable Landing License, FCC File No. SCL-MOD-
     20180905-00032 (filed Sept. 5, 2019) (“SAm-1 DR Mod App”).
4
     See, e.g., id. at 2 and Appendix A.


                                                 2


               (1)    Applicants' Names, Addresses and Telephone Numbers5

       The names, addresses, and telephone numbers of the Applicants are:

       Telxius Cable USA, Inc.
       1111 Brickell Avenue, Suite 1800
       Miami, Florida 33131-3122
       +1 305 925 5256

       Telxius Cable Puerto Rico, Inc.
       1111 Brickell Avenue, Suite 1800
       Miami, Florida 33131-3122
       +1 305 925 5256

       Telxius Cable América, S.A.
       Avenida Luis Alberto de Herrera 1248, piso 4
       11300 Montevideo
       Uruguay
       +598 2 628 00 20

       Telxius América is not currently a licensee for the SAm-1 Cable Landing License, as the

Commission’s then-extant rules did not require Telxius América to be a joint licensee.

Consistent with 47 C.F.R. § 1.767(h)(2) and their pending request to modify the SAm-1 Cable

Landing License to authorize a landing in the Dominican Republic,6 the Applicants request that

the Commission add Telxius América as a joint licensee, as it owns a 5-percent-or-greater

interest in the system (as described in part I(7) below) and uses the U.S. end points of SAm-1.

               (2)    Applicants’ Places of Incorporation7

       Telxius USA is a Florida corporation. Telxius Puerto Rico is a Puerto Rico corporation.

Telxius América is a Uruguayan corporation.


5
    See 47 C.F.R. § 1.767(a)(1).
6
    SAm-1 DR Mod App at 3; Letter from Kent D. Bressie, Harris, Wiltshire & Grannis LLP, as
    Counsel for the Applicants, to FCC Secretary Marlene H. Dortch, FCC File No. SCL-MOD-
    20180905-00032 (filed Nov. 16, 2018) (including certifications with respect to the existing
    components of the SAm-1 system pre-dating the proposed Dominican Republic spur).
7
    See 47 C.F.R. § 1.767(a)(2).


                                                3


               (3)       Contact Information for All Applicants8

       The Commission should address correspondence regarding this application to:

       Miguel Garrido de las Heras
       General Counsel
       Telxius Telecom S.A.U.
       Ronda de la Comunicación s/n, Edificio Norte 2 -- Plata 1
       28050 Madrid, Spain
       +34 91 483 17 35
       miguel.garrido@telxius.com

       with copies to:

       Andrés J. Fígoli Pacheco
       Secretaría General
       Telxius Cable América, S.A.
       Telxius Telecom S.A.U.
       Ronda de la Comunicación s/n, Edificio Norte 2 -- Plata 1
       28050 Madrid, Spain
       +34 91 483 1732
       andres.figoli@telxius.com

       and

       Kent Bressie
       Harris, Wiltshire & Grannis LLP
       1919 M Street, N.W., Suite 800
       Washington, D.C. 20036-3537
       +1 202 730 1337
       kbressie@hwglaw.com

       Counsel for the Applicants

               (4)       System Description9

       The facilities connecting the SAm-1 system to Punta Carnero, Ecuador, and Mancora,

Peru, were constructed in 2006 and 2007 and entered into commercial service on October 31,

2007. They consist of three segments. Segment M1 connects Branching Unit 3 on the original



8
    See id. § 1.767(a)(3).
9
    See id. § 1.767(a)(4).


                                                4


SAm-1 system to Branching Unit 3A, off the coast of Ecuador. It has a length of 680 kilometers

and has two fiber pairs. Segment M2 connects Branching Unit 3A to a new landing at Punta

Carnero, Ecuador (with the cable landing station located inland at Salinas). It has a length of 112

kilometers and has two fiber pairs. Segment M3 connects Branching Unit 3A to a new landing at

Mancora, Peru. It has a length of 226 kilometers and has two fiber pairs. The current design

capacity of all fiber pairs of Segments M1, M2, and M3 is 4.8 Tbps. The other segments of

SAm-1 remain unchanged. In Appendix A, the Applicants provide a route map of the existing

SAm-1 system. In Appendix B, they provide a route map for Segments M1, M2, and M3.

                (5)     Landing Points10

        In Appendix C, the Applicants provide specific location information for the beach

manhole at Punta Carnero Ecuador, and the cable landing station at Salinas, Ecuador. In

Appendix D, the Applicants provide specific landing point information for the beach manhole

and cable landing station at Mancora, Peru.

                (6)     Regulatory Status11

        With the addition of Segments M1, M2, and M3, SAm-1 has continued to operate on a

non-common-carrier basis. The underlying facts supporting SAm-1’s non-common-carrier status

have not changed since the Commission first licensed SAm-1 in 2000.12

                (7)     Cable Ownership Information13

        Telxius América owns Segment M1 and those portions of Segments M2 and M3 beyond

the territorial seas of Ecuador and Peru. Telxius Cable Ecuador, S.A. (“Telxius Ecuador”) owns


10
     See id. § 1.767(a)(5).
11
     See id. § 1.767(a)(6).
12
     SAm-1 Cable Landing License, 15 FCC Rcd. at 14,919-14,924 ¶¶ 9-19.
13
     See 47 C.F.R. § 1.767(a)(7).


                                                5


that portion of Segment M2 in the Ecuadorian territorial sea extending seaward from Punta

Carnero, as well as the cable landing station at Salinas, Ecuador, which was constructed in 2007.

Telxius Cable Perú, S.A.C. (“Telxius Perú”) owns that portion of Segment M3 in the Peruvian

territorial sea extending from Mancora, Peru. Telefónica del Perú, S.A.C. (“Telefónica Perú”),

owns and operates the cable landing station at Mancora, Peru. Ownership of SAm-1’s other

segments remains unchanged.

                (8)        Corporate Control and Affiliate Information14

        The Applicants submit the following information specified in 47 C.F.R. § 63.18(h)

through (k) and 63.18(o):

                           (i)   Certification Regarding Ownership, Citizenship, Principal
                                 Businesses, and Interlocking Directorates15

        Each of the Applicants is a direct or indirect subsidiary of Telefónica S.A. (“Telefónica

Parent”). Telxius USA and Telxius Puerto Rico certify that they have the following 10-percent-

or-greater direct or indirect interest holders:

        Telxius Cable América, S.A. (“Telxius América”)
        Address: Avenida Luis Alberto de Herrera 1248, piso 4, 11300 Montevideo, Uruguay
        Place of Organization: Uruguay
        Principal Business: telecommunications
        Relationship: Telxius América holds a 100-percent voting-and-equity interest in each of
           Telxius USA and Telxius Puerto Rico.

        Telxius Telecom, S.A.U. (“Telxius Parent”)
        Address: Distrito C, Calle Ronda de la Comunicación s/n, Edificio Central, 28050
           Madrid, Spain
        Place of Organization: Spain
        Principal Business: telecommunications
        Relationship: Telxius Parent holds a 100-percent voting-and-equity interest in Telxius
            América.



14
     See id. § 1.767(a)(8).
15
     See id. § 63.18(h).


                                                  6


        Pontel Participaciones, S.L. (“Pontel”)
        Address: Distrito C, Calle Ronda de la Comunicación s/n, Edificio Central, 28050
        Madrid, Spain
        Place of Organization: Spain
        Principal Business: holding company
        Relationship: Pontel holds a 60-percent voting-and-equity interest in Telxius Parent.

        Telefónica S.A. (“Telefónica Parent”)
        Address: Distrito C, Calle Ronda de la Comunicación s/n, Edificio Central, 28050
           Madrid, Spain
        Place of Organization: Spain
        Principal Business: telecommunications
        Relationship: Telefónica Parent holds a 83.5percent voting-and-equity interest in Pontel.

        Taurus Bidco S.à r.l. (“KKR Bidco”)
        Address: 61, rue de Rollingergrund, L-2440 Luxembourg
        Place of Organization: Luxembourg
        Principal Business: investments
        Relationship: KKR Bidco holds a 40.0-percent voting-and-equity interest in Telxius
           Parent and certain negative control rights summarized in the Commission’s public
           notice granting consent for the KKR Bidco investment in Telxius Parent.16

        Taurus Midco S.à r.l. (“KKR Midco”)
        Address: 61, rue de Rollingergrund, L-2440 Luxembourg
        Place of Organization: Luxembourg
        Principal Business: investments
        Relationship: KKR Midco holds a 100-percent voting-and-equity interest in KKR Bidco.

        Taurus Topco S.à r.l. (“KKR Topco”)
        Address: 61, rue de Rollingergrund, L-2440 Luxembourg
        Place of Organization: Luxembourg
        Principal Business: investments
        Relationship: KKR Topco holds a 100-percent voting-and-equity interest in KKR Midco.

        KKR Taurus Aggregator L.P.
        Address: 1155 Boulevard René-Lévesque Oeust, Montréal, Québec H3B3V2, Canada
        Place of Organization: Quebec, Canada
        Principal Business: investments
        Relationship: KKR Taurus Aggregator L.P. holds a 100-percent voting-and-equity
           interest in KKR Topco.




16
     See Actions Taken Under Cable Landing License Act, Public Notice, 32 FCC Rcd. 7514
     (Int’l Bur. 2017).


                                                7


The principal direct and indirect voting interests in KKR Taurus Aggregator L.P. are held by or

through the following entities:

       KKR Taurus Aggregator GP Limited
       Address: c/o Maples Corporate Services Limited, PO Box 309, Ugland House, Grand
          Cayman, KY1-1104, Cayman Islands
       Place of Organization: Cayman Islands
       Principal Business: investments
       Relationship: KKR Taurus Aggregator GP Limited is the general partner of KKR Taurus
          Aggregator L.P. and holds a 100-percent voting and a less-than-1-percent economic
          interest in KKR Taurus Aggregator L.P.

       KKR Global Infrastructure Investors II L.P.
       Address: c/o Kohlberg Kravis Roberts & Co. L.P., 9 West 57th Street, New York, New
          York 10019
       Place of Organization: Cayman Islands
       Principal Business: investments
       Relationship: KKR Global Infrastructure Investors II L.P. is the sole shareholder of KKR
          Taurus Aggregator GP Limited and holds a 100-percent voting-and-economic interest
          in KKR Taurus Aggregator GP Limited. KKR Global Infrastructure Investors II L.P.
          is also a limited partner of KKR Taurus Aggregator L.P., with no direct voting
          interest and a 26.41-percent economic interest in KKR Taurus Aggregator L.P.

       KKR Taurus Co-Invest L.P.
       Address: c/o Kohlberg Kravis Roberts & Co. L.P., 9 West 57th Street, New York, New
          York 10019
       Place of Organization: Quebec, Canada
       Principal Business: investments
       Relationship: KKR Taurus Co-Invest L.P. is a limited partner of KKR Taurus
          Aggregator L.P., with no voting interest and a 44.97-percent economic interest in
          KKR Taurus Aggregator L.P.

       KKR Associates Infrastructure II L.P.
       Address: c/o Kohlberg Kravis Roberts & Co. L.P., 9 West 57th Street, New York, New
          York 10019
       Place of Organization: Cayman Islands
       Principal Business: investments
       Relationship: KKR Associates Infrastructure II L.P. is the general partner of KKR
          Global Infrastructure Investors II L.P and holds a 100-percent voting and a 5-percent
          economic interest in KKR Global Infrastructure Investors II L.P.




                                               8


KKR Infrastructure II Limited
Address: c/o Kohlberg Kravis Roberts & Co. L.P., 9 West 57th Street, New York, New
   York 10019
Place of Organization: Cayman Islands
Principal Business: investments
Relationship: KKR Infrastructure II Limited is the general partner of KKR Associates
   Infrastructure II L.P. and holds a 100-percent voting and a 99-percent economic
   interest in KKR Associates Infrastructure II L.P.

KKR Financial Holdings LLC
Address: 9 West 57th Street, New York, New York 10019
Place of Organization: Delaware
Principal Business: holding company
Relationship: KKR Financial Holdings LLC holds a 50-percent voting interest in KKR
   Infrastructure II Limited. KKR Financial Holdings LLC’s economic interest in KKR
   Infrastructure II Limited is not a fixed percentage but is based on the investment
   returns allocable to KKR Associates Infrastructure II L.P. as the general partner of
   KKR Global Infrastructure Investors II L.P.

KKR Fund Holdings L.P.
Address: 9 West 57th Street, New York, New York 10019
Place of Organization: Cayman Islands
Principal Business: holding company
Relationship: KKR Fund Holdings L.P. holds a 50-percent voting interest in KKR
   Infrastructure II Limited. KKR Fund Holdings L.P.’s economic interest in KKR
   Infrastructure II Limited is not a fixed percentage but is based on the investment
   returns allocable to KKR Associates Infrastructure II L.P. as the general partner of
   KKR Global Infrastructure Investors II L.P. KKR Fund Holdings L.P. also holds a
   100-percent voting-and-economic interest in KKR Financial Holdings LLC.

KKR Fund Holdings GP Limited
Address: 9 West 57th Street, New York, New York 10019
Place of Organization: Cayman Islands
Principal Business: general partner
Relationship: KKR Fund Holdings GP Limited is a general partner of KKR Fund
   Holdings L.P. and holds a 100-percent voting interest and no economic interest in
   KKR Fund Holdings L.P.




                                        9


        KKR Group Holdings Corp.
        Address: 9 West 57th Street, New York, New York 10019
        Place of Organization: Cayman Islands
        Principal Business: holding company
        Relationship: KKR Group Holdings Corp. is the sole shareholder of KKR Fund Holdings
           GP Limited and therefore holds a 100-percent voting-and-economic interest in KKR
           Fund Holdings GP Limited. KKR Group Holdings Corp. is also a general partner and
           a limited partner of KKR Fund Holdings L.P., in which it holds an approximate 63.3-
           percent economic interest as of July 31, 2019.

        KKR & Co. Inc.
        Address: 9 West 57th Street, New York, New York 10019
        Place of Organization: Delaware
        Principal Business: holding company
        Relationship: KKR & Co. Inc. holds a 100-percent voting-and-economic interest in KKR
           Group Holdings Corp.

        KKR Management LLC (“KKR Management”)
        Address: 9 West 57th Street, New York, New York 10019
        Place of Organization: Delaware
        Principal Business: holding company
        Relationship: KKR Management holds a 100-percent voting interest and no economic
           interest in KKR & Co. Inc.

No entity holds a 10-percent-or-greater direct or indirect economic interest in the Applicants

through either KKR Global Infrastructure Investors II L.P. or KKR Taurus Co-Invest L.P. The

economic interests in the Applicants that are held through KKR Bidco are held predominantly by

investment funds, all of which are limited partnerships organized under the laws of Canada, the

Cayman Islands, and England and Wales, all of which are member countries of the World Trade

Organization (“WTO”).17



17
     See Members and Observers, World Trade Organization (July 29, 2016),
     https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm. England and Wales are
     constituent countries of the United Kingdom, which is a WTO member country. The U.S.
     Government treats all British overseas territories, including the Cayman Islands, as subject to
     U.K. WTO commitments. See Cable & Wireless USA, Inc., Order, Authorization &
     Certificate, 15 FCC Rcd. 3050, 3052 n.14 (Int’l Bur. 2000) (finding that Bermuda is subject
     to U.K. WTO commitments) (citing Letter from Robert E. Dalton, Assistant Legal Adviser
     for Treaty Affairs, U.S. Department of State, to Rebecca Arbogast, Chief,
     Telecommunications Division, FCC International Bureau, File No. ITC-214-19990709-


                                                 10


        Telefónica Parent’s shares trade publicly on the Spanish electronic trading system

(“Continuous Market”), where they form part of the “Ibex 35” Index, on the four Spanish Stock

Exchanges (Madrid, Barcelona, Valencia and Bilbao) and on the London and Buenos Aires

Stock Exchanges, and on the New York and Lima Stock Exchanges, through American

Depositary Shares. As there is an active market in Telefónica Parent’s shares, Telefónica

Parent’s share ownership is always fluid. Moreover, Telefónica Parent can ascertain its

significant shareholders only on the basis of its records and may not know of possibly related or

affiliated shareholders that are not disclosed to it. Recognizing these limitations, as of the most

recent measurable date, July 31, 2019, no Telefónica Parent shareholder holds an interest

sufficient to give it a 10-percent-or-greater direct or indirect interest in any of the Applicants. In

Appendices C and D, the Applicants provide diagrams illustrating these ownership interests.

        Telxius USA, Telxius Puerto Rico, and Telxius América each certify that they have no

interlocking directorates with foreign carriers.

                        (ii)   Certification Regarding Foreign Carrier Status and Foreign
                               Affiliation18

        Each Applicant certifies that it:

        (A) is not a foreign carrier in any foreign country;

        (B) does not own or control a cable landing station in any foreign country; and

        (C) is affiliated with foreign carriers, including foreign carriers that control cable landing

stations in foreign countries, as summarized in Table 1 below.


     00412, at 1 (Feb. 16, 2000) (stating that “it remains the Department’s position that, consistent
     with the Vienna Convention on the Law of Treaties and actions taken by the United
     Kingdom in accepting the WTO Agreement, the WTO Agreement applies to all British
     territories, including Bermuda and Gibraltar. The Office of the U.S. Trade Representative
     concurs in this view.”)).
18
     See 47 C.F.R. §§ 1.767(a)(8), 63.18(i).


                                                   11


            TABLE 1: FOREIGN AFFILIATIONS OF THE APPLICANTS

                                                                      Owns/Controls
 Country                               Entity                         Cable Landing
                                                                       Station? Y/N
Argentina    TIWS Argentina II S.A.                                          N
             Telxius Cable Argentina S.A.                                    Y
             Telefónica Móviles Argentina, S.A.                              N
             Telefónica de Argentina, S.A.                                   Y
Austria      Telefónica International Wholesale Services II, S.L.U.
                                                                           N
             (Austria branch)
Belgium      Telefónica International Wholesale Services II, S.L.U.
                                                                           N
             (Belgium branch)
Bosnia and
            Telemach d.o.o.                                                N
Herzegovina
Brazil      Media Networks Soluções Digitais Ltda.                         N
            Telefónica Brasil, S.A.                                        N
            Telxius Cable Brasil Limitada                                  Y
Bulgaria    Telefónica International Wholesale Services II, S.L.
                                                                           N
            (Bulgaria branch)
            Telefónica Chile, S.A.                                         Y
            Telxius Cable Chile S.A.                                       Y
Chile
            Telefónica Móviles Chile, S.A.                                 N
            TIWS Chile II, S.p.A.                                          N
            Colombia Telecomunicaciones, S.A. ESP                          Y
Colombia    TIWS Colombia II S.A.S.                                        N
            Telxius Cable Colombia S.A.                                    N
Costa Rica  Telefónica de Costa Rica TC, S.A.                              N
            Telefónica International Wholesale Services II, S.L.U.
Cyprus                                                                     N
            (Cyprus branch)
            Telefónica International Wholesale Services II, S.L.U.
Denmark                                                                    N
            (Denmark branch)
Dominican
            Telxius Cable Republica Dominicana, S.A.S.                     Y
Republic
            Otecel, S.A.                                                   N
Ecuador     Telxius Cable Ecuador S.A.                                     Y
            TIWS Ecuador II, S.A.                                          N
El Salvador Telefónica Móviles El Salvador, S.A. de C.V.                   N
            Telefónica International Wholesale Services II, S.L.
Estonia                                                                    N
            Unipersonal Eesti filial
            Telefónica International Wholesale Services II, S.L.
Finland                                                                    N
            Unipersonal Suomen sivuliike
            Telefonica Global Solutions France                             N
France
            Telefónica International Wholesale Services France SAS         N
Germany     E-Plus Mobilfunk GmbH                                          N


                                           12


                                                                         Owns/Controls
 Country                               Entity                            Cable Landing
                                                                          Station? Y/N
            Telefónica Germany GmbH & Co. OHG                                   N
            TIWS Greece Telecommunications Services Company
Greece                                                                        N
            Limited Liability
            Telxius Cable Guatemala, S.A.                                     Y
Guatemala
            Telefónica Móviles Guatemala, S.A.                                N
Hong Kong Telefónica International Wholesale Services , S.L.                  N
            Telefónica International Wholesale Services Hungary
Hungary                                                                       N
            Korlátolt Felelôsségü Társaság
            Telefónica International Wholesale Services II, S.L.U.
Italy                                                                         N
            (Italy branch)
            Telefónica International Wholesale Services, Latvia
Latvia                                                                        N
            Sabiedriba ar ierobezotu atbildibu
            TIWS Luxembourg Branch, Succursale de la société mère
Luxembourg Telefónica International Wholesale Services II, S.L.               N
            Unipersonal
            TIWS México, S.A. de C.V.                                         N
Malta       Telefónica International Wholesale Services II, S.L.U
                                                                              N
            (Malta branch)
Mexico      Pegaso PCS, S.A. de C.V.                                          N
Montenegro Telemach A.D. Podgorica                                            N
            Telefónica International Wholesale Services II, S.L., TIWS
Netherlands                                                                   N
            Netherlands
Nicaragua   Telefónica Celular de Nicaragua, S.A.                             N
            Telefónica International Wholesale Services II, S.L.U.
Norway                                                                        N
            (Norway branch)
            Telxius Cable Panamá S.A.                                         Y
Panama
            Telefónica Móviles Panamá, S.A                                    N
            Telefónica del Perú, S.A.C.                                       Y
Peru        Telxius Cable Perú, S.A.C.                                        Y
            Telefónica Servicios TIWS SAC                                     N
            Telefónica International Wholesale Services II, S.L.
Poland      Unipersonal,(Spółka z ograniczoną odpowiedzialnością)             N
            Oddział w Polsce
            Telefónica International Wholesale Services II, S.L.U.
Portugal                                                                      N
            (Portugal branch)
            Telefónica International Wholesale Services II, Sociedad
Romania                                                                       N
            Limitada Unipersonal, Madrid – Sucursala Bucaresti
Serbia      Serbia Broadband – Srpske kablovske mreže d.o.o.                  N
            Telefónica International Wholesale Services II, S.L.
Slovakia                                                                      N
            Unipersonal organizačná zložka
            Telefónica International Wholesale Services II, S.L.
Slovenia                                                                      N
            Unipersonal, telekomunikacije, podružnica v Sloveniji


                                           13


                                                                                  Owns/Controls
     Country                                 Entity                               Cable Landing
                                                                                   Station? Y/N
                  Telemach d.o.o.                                                        N
                  Tušmobil d.o.o.                                                        N
 Singapore        Telefónica Global Solutions, Singapore Pte. Ltd                        N
                  Telefónica de España S.A.U.                                            Y
                  Telefónica International Wholesale Services II, S.L.U.                 N
 Spain
                  Telefónica Móviles España S.A.U.                                       N
                  Telxius Cable España S.L.U.                                            N
 Sweden           Telefónica International Wholesale Services Sweden AB                  N
                  Telefónica International Wholesale Services II, S.L.U.,
 Switzerland                                                                              N
                  (Switzerland branch)
 United
                  Telefónica UK, Ltd.                                                     N
 Kingdom
 Uruguay          Telefónica Móviles del Uruguay, S.A.                                    N
 Venezuela        Telefónica Venezolana, C.A.                                             N

                        (iii)   Certifications Regarding Destination Markets19

         Each of Telxius USA and Telxius Puerto Rico certifies to the following:

         (A) it is not a foreign carrier in Ecuador or Peru, the two foreign destination markets in

which the Segments M2 and M3 land;

         (B) it does not control a foreign carrier in Ecuador or Peru;

         (C) an entity owning and controlling it (Telefónica Parent) controls foreign carriers in

Ecuador and Peru (Otecel, S.A., Telxius Ecuador, TIWS Ecuador II, S.A. Telefónica Perú,

Telxius Perú, and Telefónica Servicios TIWS SAC); and

         (D) no grouping of two or more foreign carriers in Ecuador or Peru (or parties that

control foreign carriers in Ecuador or Peru) own, in aggregate, more than 25 percent of it and are

parties to, or beneficiaries of, a contractual relation affecting the provision or marketing of




19
     See id. §§ 1.767(a)(8), 63.18(j).


                                                  14


arrangements for the terms of acquisition, sale, lease, transfer, and use of capacity on the SAm-1

cable system in the United States.

        Telxius América certifies to the following:

        (A) it is not a foreign carrier in Ecuador or Peru, the two foreign destination markets in

which Segments M2 and M3 land;

        (B) it controls foreign carriers in Ecuador and Peru (Telxius Ecuador and Telxius Peru);

        (C) an entity owning and controlling it (Telefónica Parent) controls foreign carriers in

Ecuador and Peru (Otecel, S.A., Telxius Ecuador, TIWS Ecuador II, S.A. Telefónica del Perú,

S.A.C., Telxius Peru, and Telefónica Servicios TIWS SAC); and

        (D) no grouping of two or more foreign carriers in Ecuador or Peru (or parties that

control foreign carriers in Ecuador or Peru) own, in aggregate, more than 25 percent of it and are

parties to, or beneficiaries of, a contractual relation affecting the provision or marketing of

arrangements for the terms of acquisition, sale, lease, transfer, and use of capacity on the SAm-1

cable system in the United States.

                        (iv)   Certification Regarding WTO Status, Market Power, and the
                               Effective Competitive Opportunities Test20

        No response is required, as the Applicants did not identify any non-WTO markets in

response to 47 C.F.R. § 1.767(a)(8)(iii).

                        (v)    Certifications Regarding the Anti-Drug Abuse Act of 198821

        Each Applicant certifies that no party to this application is subject to a denial of federal

benefits that includes Commission benefits pursuant to Section 5301 of the Anti-Drug Abuse Act

of 1988.


20
     See id. §§ 1.767(a)(8), 63.18(k).
21
     See id. §§ 1.767(a)(8), 63.18(o).


                                                  15


                  (9)       Certifications Regarding Routine Conditions22

          Each Applicant certifies that it accepts and will abide by the routine conditions specified

in 47 C.F.R. § 1.767(g).

                  (10)      Certification Regarding Service to Executive Branch Agencies23

          The Applicants have sent a complete copy of this application to the U.S. Departments of

State, Commerce, and Defense. The Applicants’ counsel has certified such service in the

certificate of service attached to this application.


II.       REQUEST FOR STREAMLINED PROCESSING

          The Applicants request streamlined processing pursuant to 47 C.F.R. § 1.767(k)(2) and

(k)(3). As identified in Table 1 above, the Applicants have certified that they are affiliated with

foreign carriers in Ecuador (Otecel, S.A., Telxius Ecuador, and TIWS Ecuador II, S.A.) and Peru

(Telefónica Perú, Telxius Perú, and Telefónica Servicios TIWS SAC). Other than Telefónica

Perú, each of these affiliated foreign carriers lacks market power in its respective geographic

market. Each has less than 50-percent market share in either the international transport market or

local access market of its respective geographic market. None (other than Telefónica Perú)

appears on the Commission’s list of foreign telecommunications carriers presumed to possess

market power in foreign telecommunications markets.24 These foreign carriers therefore qualify

for presumptions of non-dominance pursuant to 47 C.F.R. § 63.10(a)(3) and exemptions from the

dominant carrier safeguards in 47 C.F.R. §§ 63.10(c) through (e).


22
      See id. § 1.767(a)(9), (g).
23
      See id. § 1.767(j).
24
      See The International Bureau Revises and Reissues the Commission’s List of Foreign
      Telecommunications Carriers that Are Presumed to Possess Market Power in Foreign
      Telecommunications Markets, Public Notice, 22 FCC Rcd. 945 (Int’l Bur. 2007).


                                                   16


           Telefónica Perú is presumed to have market power in Peru.25 The Applicants therefore

agree to accept and abide by the reporting requirements in 47 C.F.R. § 1.767(l).

           Each of the Applicants certifies that it is not required to submit a consistency certification

to any state or territory pursuant to Section 1456(c)(3)(A) of the Coastal Zone Management Act,

16 U.S.C. § 1456. Neither Florida nor Puerto Rico, the sole U.S. jurisdictions in which SAm-1

lands, lists or has ever proposed to list, a cable landing license as a federal activity requiring a

consistency certification.26 Moreover, the extension of SAm-1 to Punta Carnero, Ecuador, and

Mancora, Peru, will not involve any new construction within or affecting the U.S., Florida, or

Puerto Rico territorial seas.




25
     Id.
26
     See Florida’s Listed Federal Actions, National Oceanic and Atmospheric Administration,
     The National Coastal Zone Management Program,
     https://coast.noaa.gov/czm/consistency/media/fl.pdf; Puerto Rico’s Listed Federal Actions,
     National Oceanic and Atmospheric Administration, The National Coastal Zone Management
     Program, https://coast.noaa.gov/czm/consistency/media/pr.pdf.


                                                    17


                                       CONCLUSION

       For the foregoing reasons, the Commission should expeditiously grant this application

pursuant to streamlined processing.

                                            Respectfully submitted,




Kent Bressie                                 Guillermo Cafiete
Colleen Sechrest                             President, Telxius Cable USA, Inc.
HARRIS, WILTSHIRE & GRANNIS LLP              President, Telxius Cable Puerto Rico, Inc.
1919 M Street, N.W., Suite 800               1111 Brickell Avenue, Suite 1800
Washington, D.C. 20036-3537                  Miami,Florida 33131-3122
+1 202 730 1337                              +1 305 925 5256
kbressie@hwglaw.com                          guillermo.canete@telxius.com

Counsel for the Applicants




                                             Rafael Arranz Ruiz
                                             Attorney at Law
                                             Telxius Cable America. S.A.
                                             1111 Brickell Avenue, Suite 1800
                                             Miami,Florida 33131-3122
                                             +1 305 925 5256
                                             rafael.arranz@telxius.com



August 26, 2019




Attachments




                                              18


                                LIST OF APPENDICES


Appendix A: SAm-1 Route Map

Appendix B: Map of Segments M1, M2, and M3

Appendix C: Punta Carnero and Salinas, Ecuador, Landing Point Information

Appendix D: Mancora, Peru, Landing Point Information

Appendix E: Ownership of the Applicants

Appendix F: KKR Interests in Telxius Telecom S.A.U.


APPENDIX A: ROUTE MAP FOR SAM-1 SYSTEM
              (shown in pink)


APPENDIX B: ROUTE MAP FOR ECUADOR AND MANCORA SPURS


APPENDIX C: PUNTA, CARNERO AND SALINAS, ECUADOR, LANDING POINT INFORMATION




  Beach manhole geographic coordinates:   2° 16.2912' S, 80° 55.4591' W
  Cable station geographic coordinates:   2° 14.92480' S, 80° 55.21979' W
  Cable landing station street address:   none



                                               22


           APPENDIX D: MANCORA, PERU, LANDING POINT INFORMATION




Beach manhole geographic coordinates:   4° 6.232' S, 81° 3.290' W
Cable station geographic coordinates:   4° 6.423' S, 81° 3.088' W
Cable landing station street address:   none


                 APPENDIX E: OWNERSHIP STRUCTURE OF APPLICANTS




 Other minority investors, none
                                                    Telefónica, S.A.
with a 10% -or-greater voting or                                                               See Appendix F—
                                                    (“Telefónica”)
    economic interest in any                                                                     KKR Interests
                                                         (Spain)
          Applicant


                     16.5%                    83.5%


                     Pontel Participaciones, S.L.                           Taurus Bidco S.à.r.l
                             (“Pontel”)                                       (“KKR Bidco”)
                               (Spain)                                         (Luxembourg)



                                    60%                                      40%


                                               Telxius Telecom S.A.U.
                                                 (“Telxius Parent”)
                                                       (Spain)


                                                              100%


                                              Telxius Cable América, S.A.
                                                  (“Telxius América”)
                                                       (Uruguay)


                                       100%                                 100%


                    Telxius Cable USA, Inc.                            Telxius Cable Puerto Rico, Inc.
                       (“Telxius USA”)                                    (“Telxius Puerto Rico”)
                            (Florida)                                           (Puerto Rico)




                   Denotes Applicant

          Note: percentages represent both voting and economic interests


             APPENDIX F: KKR INTERESTS IN TELXIUS TELECOM S.A.U.




                                                    Appendix C




*   Includes both direct and indirect ownership interests.
** The economic interests of KKR Fund Holdings L.P. and KKR Financial Holdings LLC in KKR
   Infrastructure II Limited may vary based on the investment returns allocable to KKR Associates
   Infrastructure II L.P., as the general partner of KKR Global Infrastructure Investors II L.P.


                                CERTIFICATE OF SERVICE

       I, Kent D. Bressie, hereby certify that consistent with 47 C.F.R. § 1.767(j), I have served

copies of the foregoing application to modify the SAm-1 Cable Landing License by hand

delivery or electronic mail on this 26th day of August 2019, to the following:



                   Robert L. Strayer
                   Deputy Assistant Secretary of State for Cyber and
                      International Communications and Information Policy
                   Bureau of Economic and Business Affairs
                   U.S. DEPARTMENT OF STATE
                   EB/CIP : Room 4634
                   2201 C Street, N.W.
                   Washington, D.C. 20520-4634

                   Kathy Smith
                   Chief Counsel
                   U.S. DEPARTMENT OF COMMERCE/NTIA
                   14th Street and Constitution Avenue, N.W.
                   Room 4713
                   Washington, D.C. 20230

                   William E. Brazis II
                   General Counsel
                   DEFENSE INFORMATION SYSTEMS AGENCY
                   6910 Cooper Avenue
                   Fort Meade, Maryland 20755




                                             Kent D. Bressie



Document Created: 2019-09-08 02:13:02
Document Modified: 2019-09-08 02:13:02

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