Application Form [pdf]

This document pretains to SCL-T/C-20051213-00030 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2005121300030_477605

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


In the Matter of




                                                    Ne Nes! Neue! Nevae! Nevme! Nume! Neme! Nuwe! Nee Nume! Neue! Newr! Nun! Ssd Nun!
Teleglobe America Inc.
       Licensee,

Teleglobe International Holdings Ltd
       Transferor,

       and                                                                                                                              File No. SCL—T/C—2005

VSNL Telecommunications (Bermuda) Ltd.
       Transferee

Application for Transfer of Control of
Cable Landing Licenses


            APPLICATION FOR TRANSFER OF CONTROL OF
   CABLE LANDING LICENSES — STREAMLINED PROCESSING REQUESTED

       Teleglobe America Inc. ("TAI"), its ultimate parent company, Teleglobe International

Holdings Ltd ("TIHL"), and VSNL Telecommunications (Bermuda) Ltd. ("VSNL Bermuda

Telco") (collectively, the "Applicants"), through their undersigned counsel and pursuant to an

Act Relating to the Landing and Operation of Submarine Cables in the United States, 47

U.S.C. §§ 34—39 (1994), Executive Order No. 10530, Exec. Ord. No. 10530 reprinted as

amended in 3 U.S.C. § 301, and Section 1.767 of the Rules of the Federal Communications

Commission ("Commission"), 47 C.F.R. § 1.767, hereby request approval for the transfer of

control of TAI as the holder of cable landing licenses from TIHL to VSNL Bermuda Telco.

The Applicants are concurrently filing applications with the Commission for authority to

transfer control of TAI as the holder of a blanket domestic Section 214 authorization and

international Section 214 authorizations from TIHL to VSNL Bermuda Telco. As provided in

the attached amended national security agreement, the Department of Defense, the


Department of Homeland Security, the Department of Justice, and the Federal Bureau of

Investigation have no objection to the Commission granting its approval of this Application,

provided that the Commission conditions its grant of approval on compliance with the

amended national security agreement negotiated among the parties.

       As described below, under the proposed transaction (the "Transaction"), VSNL

Bermuda Telco and TAI‘s ultimate parent company, TIHL, will be amalgamated (%.e.,

combined) under Bermuda law. As a result of the amalgamation, TIHL will be merged into

VSNL Bermuda Telco, the separate corporate existence of TIHL will cease, and the combined

company, VSNL Bermuda Telco, will continue to be a direct wholly—owned subsidiary of

Videsh Sanchar Nigam Limited ("VSNL"). As a result of the Transaction, VSNL Bermuda

Telco will control TAI. Although control of TAI will change, TAI will continue to provide

services in the United States to its existing customers under existing service arrangements

pursuant to its submarine cable landing licenses and other authorizations granted by the

Commussion. The Transaction, therefore, will be seamless to TAl‘s customers. Attached

hereto as Exhibit A are organization charts that illustrate, with respect to control of TAI, the

current corporate structure of the parties and the structure that will exist immediately

following consummation of the proposed transfer of control.

        Applicants respectfully request streamlined, expedited treatment of this Application

pursuant to Section 1.767(j) and (k)(2) of the Commission‘s Rules.‘ As described in more

detail below, this Application qualifies for streamlined treatment because following

consummation of the Transaction, neither VSNL Bermuda Telco nor TAI, nor any of their

affiliates, is a foreign carrier with market power in any of the destination markets served by

the cables that are the subject of this Application.



‘       47 C.F.R. § 1.767(j) and (k)(2).


       Applicants provide the following information in support of this Application:

I.     THE APPLICANTS

       A.      Teleglobe America Inc. ("TAI") (Licensee)

       TAI is a Delaware corporation headquartered in Reston, Virginia, providing both

facilities—based and resold telecommunications services to wholesale customers in the United

States. TAl is an indirect wholly owned subsidiary of TIHL. TAI holds interests in the

China—U.S., AMERICAS—II, Japan—U.S., Columbus III, TAT—14, and CANUS—1 cable

systems, as listed on Exhibit B. Information about the regulatory status and landing points of

each cable is contained therein.

       B.      Teleglobe International Holdings LTD ("TIHL®") (Transferor)

       TIHL is a Bermuda company headquartered in Hamilton, Bermuda. TIHL is a

publicly traded holding company whose shares trade on the NASDAQ stock exchange.

TIHL‘s subsidiaries provide a variety of international telecommunications services around the

world. The current indirect majority owners of TIHL are four investment funds that are

affiliated with Cerberus Capital Management, LP, a Delaware limited partnership

("Cerberus"). Cerberus is a private equity fund based in New York that manages over $16

billion in assets, including investments in the technology and telecommunications sectors.


C.     VSNL Telecommunications (Bermuda) Ltd. ("VSNL Bermuda Telco")

       (Transferee)


       VSNL Bermuda Telco is a newly—formed Bermuda company that was formed to

amailgamate with TIHL. As a result of the amalgamation, VSNL Bermuda Telco will have an

indirect controlling interest in TAlI. Upon closing of the amalgamation, VSNL Bermuda

Telco will be a direct wholly—owned subsidiary of VSNL.


                                             o3 _


       VSNL, the parent company of VSNL Bermuda Telco, is a limited company organized

under the laws of India, and its shares are publicly traded on the Bombay Stock Exchange and

India‘s National Stock Exchange. VSNL‘s American Depositary Receipts ("ADRs") trade on

the New York Stock Exchange. By virtue of its aggregate 44.72 percent ownership interest in

VSNL,2 the Tata Group, an Indian commercial conglomerate, exercises a controlling

ownership and managerial interest in VSNL for purposes of Commission rules and

regulations. Nevertheless, because the Tata Group does not exercise a greater than 50 percent

ownership interest in VSNL, under Indian law, VSNL is not considered to be a subsidiary of

or controlled by the Tata Group. The Government of India holds an approximate 26 percent

ownership interest in VSNL. The Bank of New York, a U.S. financial institution, holds 5.59

percent of VSNL as depository to VSNL‘s ADR issue." No other person or entity holds,

directly or indirectly, a 10 percent or greater ownership interest in VSNL.

       VSNL is the principal provider of public international telecommunications services

and a major provider of Internet, wireless and other telecommunications services in India.

VSNL provides international telephone, telex and telegraph services through a combination of

satellite, terrestrial and undersea cable links. Over the years, VSNL has been transformed

from an overseas—switched—voice company to an internationally recognized

telecommunications company utilizing and offering a full range of state—of—the—art digital

technology. Through its subsidiaries, VSNL operates undersea cable facilities in India, North

America, Europe and southeast Asia.

       Through its VSNL Telecommunications (US) Inc. subsidiary ("VSNL US"), VSNL

recently completed the acquisition of the TGN network and holds cable landing licenses for




       As of September 30, 2005.
       As of September 30, 2005.


the TGN Atlantic and the TGN Pacific submarine cable systems.* The Commission has

granted VSNL‘s subsidiary, VSNL America, Inc. ("VAI"), international Section 214 authority

to provide international communications services between the United States and authorized

international points." The Commission conditioned its grant of international Section 214

authority to VAI as well as its approval of the TGN transaction upon compliance with a

security agreement between the relevant VSNL entities and various Executive Branch

agencies.

H.     THE PROPOSED TRANSACTION

       Pursuant to the Agreement and Plan of Amailgamation, dated July 25, 2005, by and

among TIHL, VSNL and VSNL Bermuda Telco (the "Amalgamation Agreement"), VSNL

Bermuda Telco will amalgamate with TIHL, and each issued and outstanding common share

in the share capital of TIHL will be converted into the right to receive a cash payment (other

than any shares owned directly or indirectly by VSNL or VSNL Bermuda Telco or indirectly

owned by TIHL, and any dissenting shares). Following the amalgamation of VSNL Bermuda

Telco with TIHL, TIHL will cease to exist as a publicly held company, and the combined

company, VSNL Bermuda Telco, will be a direct wholly—owned subsidiary of VSNL. As a

result of the amalgamation, VSNL Bermuda Telco will have an indirect controlling interest in

TAL. Consummation of the Transaction is contingent upon receipt of necessary regulatory

approvals from U.S. and foreign regulatory authorities, among other things.© For the



*        iSee Actions Taken Under Cable Landing License Act, Public Notice, DA 05—1268 at
6, 7 (released Apr. 29, 2005) (file nos. SCL—ASG—20050304—00003, SCL—MOD—20050304—
00004, SCL—T/C—20050304—00005).
5        See VSNL America, Inc., Order, Authorization and Certificate, 19 FCC Red. 16555
(Int‘l Bur. 2004) ("VA4Z Section 214 Order"‘) (granting international Section 214 authority to
provide international global facilities—based and global resale services between the United
States and all international points).
°        On November 21, 2005, the U.S. Federal Trade Commission granted Applicants early
termination of the applicable waiting periods under the Hart—Scott—Rodino Antitrust
Improvements Act of 1976, 15 U.S.C. § 18a, and 16 C.F.R. Parts 801—03.
                                              — 5.


Commission‘s convenience, pre— and post—transaction organizational charts are provided as

Exhibit A attached hereto.

III.   PUBLIC INTEREST CONSIDERATIONS

       Consummation of the Transaction described herein will serve the public interest

because it will lead to the emergence of a stronger and better—financed competitor in the

market for telecommunications services in and between the United States and international

points. Under VSNL Bermuda Telco‘s ownership, TAI will be able to operate in a more

efficient and economical manner and will have better access to capital needed to maintain and

grow TAI‘s competitive telecommunications business.

       Moreover, the change in ownership of TAI will not have any adverse impact on

existing customers. TAl, backed by its parent company VSNL Bermuda Telco, will continue

to possess the managerial and technical qualifications to provide international

telecommunications services. Because the Transaction will be completed at the holding

company level and will not change the rates, terms or conditions of TAI‘s services, the

Transaction will not result in a change of carrier for TAI‘s customers and will otherwise be

transparent to customers of TAI receiving services in the United States. Immediately

following consummation of the Transaction, TAI will continue to provide high—quality

communications services to its customers without interruption and without immediate change

in rates, terms or conditions. Indeed, VSNL Bermuda Telco anticipates that this Transaction

will result in the provision of more advanced telecommunications services to a broader

customer base throughout the United States.

       At the same time, a grant of the Application would not result in any anticompetitive

effects. Neither VSNL, TAI, nor any of their affiliates is a foreign carrier with market power

in any of the destination markets served by the cables that are the subject of this Application.


                                              —6—


While both VSNL and TAI hold direct or indirect ownership interests in undersea cables that

serve the U.S.—Japan and U.S.—U.K. markets, neither VSNL Bermuda Telco, TAI, nor any of

their affiliates will have market power in Japan or the U.K. Thus, the transactions

contemplated in the Amalgamation Agreement will not eliminate any competitors on these

routes or in these destination markets, which are today well—served by competing submarine

cable systems and price competition. On the contrary, the only impact of this amalgamation

on U.S. market conditions is that TAI will obtain the financial and technical backing

necessary to became an even more effective competitor in the U.S. international

telecommunications market to the benefit of U.S. consumers.

       Finally, the proposed change in the ownership of TAI presents no foreign ownership

concerns. The Commussion has already reviewed and approved the qualifications of VSNL to

enter the U.S. market in granting international Section 214 authority to VAI and in approving

the TGN transaction. VSNL Bermuda Telco, VSNL, VSNL US and VAI have reached an

agreement with the Executive Branch agencies to address any national security, law

enforcement, and public safety concerns that the agencies believe are presented by the

Transaction. These negotiations have resulted in an amendment to the network secunity

agreement dated as of December 12, 2005.

       As provided in the attached amended national security agreement, the Department of

Defense, the Department of Homeland Security, the Department of Justice, and the Federal

Bureau of Investigation have no objections to the Commission granting its approval of this

Application, provided that the Commission conditions its grant of approval on compliance

with the April 7, 2005 national security agreement among the parties, as revised by an

Amendment dated December 12, 2005. The Applicants do not object to this condition.


        For these reasons, Applicants respectfully submit that this Transaction is in the public

interest.

IV.     REQUEST FOR EXPEDITED CONSIDERATION

        As noted above, the transfer of control of TAI will allow TAI to continue as a strong

competitor in the domestic and international telecommunications markets. For various

business reasons, the Transaction must be closed as quickly as possible, and it is therefore in

the interest of all affected persons — TAI, TIHL, VSNL Bermuda Telco, and their respective

customers, employees, shareholders and creditors — that the Commission issue its approval as

promptly as practicable. Applicants emphasize that the transfer of control will be seamless

and completely transparent to TAl‘s customers, and in no event will it result in the

discontinuance, reduction, loss, or impairment of service to TAl‘s customers. Accordingly,

Applicants request that the Commussion commence its examination of the Transaction as soon

as possible and complete its review promptly thereafter. The public interest would therefore

support commencement of the review process at this time.

v.      INFORMATION REQUIRED_BY SECTION 1.767 OF THE COMMISSION‘S
        RULES

        In support of this Application, Applicants submit the following information in

accordance with Section 1.767 of the Commussion‘s Rules, 47 C.F.R. § 1.767:

        (1)    Name, address and telephone number of Applicants:

               Licensee:       Teleglobe America Inc.                        FRN: 0009480302
                               One Discovery Square, 4th Floor
                               12010 Sunset Hills Road
                               Reston, Virginia 20190—58§56
                               (703) 766—3061

               Transferor:     Teleglobe International Holdings Ltd          FRN: 0013828132
                               P.O. Box HM 1154
                               10 Queen Street
                               Hamilton, HM EX, Bermuda
                               (441) 296—2248
                                              —g—


      Transferee:   VSNL Telecommunications (Bermuda) Ltd. FRN: 0013921184
                        c/o VSNL International
                        2100 Reston Parkway
                        Suite 320
                        Reston, Virginia 20191
                        (703) 547—5900

(2)   Place of Formation:

      Licensee/Transferor: TAI is a corporation organized under the laws of
      Delaware. TIHL is a Bermuda company.

      Transferee: VSNL Bermuda Telco is a Bermuda company.

(3)   Correspondence concerning this Application should be sent to:

      For TAI and TIHL:

      Michael Wu, Esq.
      Rogena Harris, Esq.
      Teleglobe America Inc.
      One Discovery Square, 4th Floor
      12010 Sunset Hills Road
      Reston, Virginia 20190—5856
      (703) 766—3047

      with a copy to:

      Jean L. Kiddoo
      Paul 0. Gagnier
      Ulises R. Pin
      Swidler Berlin LLP
      3000 K Street, NW., Suite 300
      Washington, DC 20007
      (202) 424—7500

      For VSNL Bermuda Telco:
      Satish Ranade, Esq.
      President
      VSNL Telecommunications (Bermuda) Ltd.
      c/o VSNL International
      2100 Reston Parkway
      Suite 320
      Reston, Virginia 20191
      (703) 547—5900


       with a copy to:

       Robert J. Aamoth
       Joan M. Griffin
       Randall W. Sifers
       Kelley Drye & Warren LLP
       1200 19"" Street, NW, Suite 500
       Washington, DC 20036
       (202) 955—9600

(4)—(7) Not Applicable.


(8)    Certification and Ownership Information Required by Sections 63.18(h)—
       (k) and (0) of the Commission‘s Rules, 47 C.F.R. §§ 63.18(h)—(k), (0):

       Post—close, the ownership structure of TAI will be as follows. The following
       entity will hold a 10% or greater direct ownership interest in TAI:

       ITXC Corp.
        750 College Road East
       Princeton, New Jersey 08540
       Delaware Corporation
       Principal Business: Holding Company

       The following entity will hold a one hundred percent (100%) ownership
       interest in ITXC Corp.:

       TLGB Netherlands Holdings B.V.
       Amalialaan 41C le verd
       3743 KE Baarn
       The Netherlands
       Netherlands Limited Liability Company
       Principal Business: Holding Company

       The following entity will hold a one hundred percent (100%) ownership
       interest in TLGB Netherlands Holdings B.V.:

       TLGB Luxembourg Holdings S.ar.l.
       8—10, rue Mathias Hardt
       L—1717 Luxembourg
       Luxembourg Limited Liability Company
       Principal Business: Holding Company

       The following entity will hold a one hundred percent (100%) ownership
       interest in TLGB Luxembourg Holdings S.ar.l.




                                    — 10 —


       VSNL Telecommunications (Bermuda) Ltd.
       c/o VSNL International
       2100 Reston Parkway
       Suite 320
       Reston, Virginia 20191

       Principal Business: Holding Company

       The following entity will hold a one hundred percent (100%) ownership
       interest in VSNL Telecommunications (Bermuda) Ltd.:

       Videsh Sanchar Nigam Limited ("VSNL")
       Lokmanya Videsh Sanchar Bhaavan, Opp. Kirti College
       K.D. Marg, Praabhedevi
       Mumbai, India 400 028
        India Limited Company

       Principal Business:    International telecommunications, domestic India long
       distance, and other value added services

       The largest accumulation of interests in VSNL is held by various entities
       within The Tata Group, an Indian commercial conglomerate consisting of
       approximately 80 companies operating in seven different market sectors
       including chemicals, engineering, energy, automotive, communications, and
       consumer goods. By virtue of its aggregate 44.72 percent ownership interest
       in VSNL,‘ the Tata Group exercises de facto control over VSNL for purposes
       of Commission rules and regulations. Nevertheless, because the Tata Group
       does not exercise a greater than 50% ownership in VSNL, under Indian law,
       VSNL is not considered to be a subsidiary of or controlled by the Tata Group.

        Panatone Finvest Ltd., an investment entity within The Tata Group, located at
        Bombay House, 24 Homi Modi Street, Mumbai, India, 400 001, holds a
        43.14% interest in VSNL.

        The Tata Power Company Limited, an Indian power provider located at 24
       Homi Modi Street, Mumbai, India, 400 001, though its interests in Panatone
        Finvest, Ltd., holds a 17.25% indirect interest in VSNL.

        Tata Sons Limited, the primary investment holding company for the Tata
        Group, also located at 24 Homi Street, Mumbai, India, 400 001, through its
       interests in Panatone Finvest Ltd., holds a 43.14% indirect interest in VSNL.
       Tata Sons Limited holds a 1.58% direct interest in VSNL.

       The Government of India holds a 26.12% interest in VSNL. The address for
       the department that administers the Government of India‘s interest is as



As of August 28, 2005.
                                    —11 —


                follows: Secretary, Department of Telecommunications, Sanchar Bhawan, 20
                Ashoka Road, New Delhi, India, 110 001.

                The Bank of New York, a U.S. financial institution, holds 5.59 % of VSNL as
                depository to VSNL‘s ADR issue. The address for the Bank of New York is
                101 Barclays Street, 22nd Floor West, New York, N.Y. 10286.

                There are no other shareholders of VSNL Bermuda Telco who directly or
                indirectly own 10 percent or more of VSNL‘s equity and thus will own 10%
                or more of TAI‘s equity post—close.

               Section 63.18(h) Interlocking Directorates



                VSNL Bermuda Telco: The following individuals are officers or directors of
                VSNL Bermuda Telco and officers and directors of foreign carmers:

                Satish Ranade, President and Director of VSNL Bermuda Telco is also
                Company Secretary/Treasurer of Videsh Sanchar Nigam Limited; Director of
                VSNL Lanka Limited (Sri Lanka); Director of VSNL Singapore Pte. Limited,;
                Director of VSNL Japan K.K.; Director of VSNL Hong Kong Limited;
                Director of VSNL Netherlands B.V.; Director of VSNL UK Limited; Director
                of VSNL Telecommunications (UK) Limited; Director of VSNL (Portugal),
                Unipessoal, Ltda.; Director of Videsh Sanchar Nigam Spain SRL; Director of
                VSNL Belgium BVBA; Director of VSNL (Germany) GmbH; and Director of
                TVC India Limited (India)


               Section 63.18(i) — Certification Regarding Foreign Carrier Status and
               Foreign Affiliation:

               By its signature to this Application, VSNL Bermuda Telco certifies that it is
               not a foreign carrier within the meaning of 63.09(d) of the Commission‘s
               Rules. VSNL Bermuda Telco certifies that it currently is affiliated with
               foreign carriers in Belgium, Bermuda, France, Germany, Hong Kong, India,
               Japan, Nepal, the Netherlands, Portugal, Singapore, South Africa," Spain, Sn
               Lanka, and the United Kingdom. Upon consummation of the Transaction,
               VSNL Bermuda Telco will become affiliated with foreign carriers in Australia,
               Canada, Italy and Norway.

               TAI is currently affiliated with non—dominant carriers in Australia, Belgium,
               Canada, France, Germany, Hong Kong, Italy, Japan, the Netherlands, Norway,
               Singapore, Spain and the United Kingdom. Upon consummation of the



8      VSNL was recently notified by the Ministry of Communications of South Africa that
it has been allotted a 26 percent equity stake in the yet—to—be—licensed South African Second
National Operator.
                                             — 12 —


Transaction TAl will become affiliated with carriers in Bermuda, India, Nepal,
Portugal, South Africa and Sri Lanka.


Se;rtion 63.18(j) — Certification Regarding Destination Markets:

By its signature to this Application, VSNL Bermuda Telco certifies that
through the acquisition of control of TAI, it seeks to provide international
telecommunications services to the destination countries of Australia, Belgium,
Bermuda, Canada, France, Germany, Hong Kong, India, Italy, Japan, Nepal,
the Netherlands, Norway, Portugal, Singapore, South Africa, Spain, Sm Lanka
and the United Kingdom.

With respect to India, VSNL Bermuda Telco‘s parent, VSNL, is a foreign
carrier deemed by the FCC to hold market power in India.

VSNL Bermuda Telco will retain its affiliations with non—dominant carriers in
Belgium (VSNL Belgium BVBA), France (VSNL France SAS), Germany
(VSNL (Germany) GmbH), Hong Kong (VSNL Hong Kong Limited), Japan
(VSNL Japan K.K.), Nepal (United Telecom Limited), Netherlands (VSNL
Netherlands B.V.), Portugal ( VSNL (Portugal) Unipessoal Ltda), Singapore
(VSNL Singapore Pte. Ltd), Spain (Videsh Sanchar Nigam Spain SRL), Sti
Lanka (VSNL Lanka Limited), and the United Kingdom (VSNL UK Limited,
VSNL Telecommunications (UK) Limited).

In addition, TAI will retain its affiliations with non—dominant carriers in
Australia (Teleglobe International Australia Pty Limited), Belgium (Teleglobe
International Belgium S.P.R.L.), Canada (Teleglobe Canada ULC), France
(Teleglobe France International S.A.S.), Germany (TLGB International
Germany GmbH), Hong Kong (Teleglobe International Hong Kong Limited),
Italy (Teleglobe Italy S.r.L.), Japan (ITXC Global Japan YK), Netherlands
(Teleglobe Netherlands B.V.), Norway (Teleglobe Nordics AS), Singapore
(Teleglobe Asia Data Transport Pte Ltd. and Teleglobe Asia Pte Ltd.), Spain
(Teleglobe Spain Communications S.L.), and the United Kingdom (Teleglobe
International Limited). As a result of the Transaction, TAI will become
affiliated with non—dominant carriers in Nepal (United Telecom Limited) and
Sri Lanka (VSNL Lanka Limited).


Section 63.18(k) — Demonstration Regarding WTO Status, Market Power,
and the Effective Competitive Opportunities Test:

The foreign carriers listed above in Section 63.18(j) of this Application are
based in countries that are Members of the World Trade Organization. TAlI
will accept dominant carrier treatment in its provision of service to India and
will file the quarterly traffic reports required by Section 43.61(c) of the
Commission‘s Rules, 47 CFR § 43.61(c).

                               —13 —


      With the exception of VSNL, none of the carriers listed above in Section (J) is
      listed on the Commussion‘s List of Foreign Telecommunications Carriers that
      are Presumed to Possess Market Power in Foreign Telecommunications
      Markets. In addition, these foreign carriers offer services in competition with
      dominant foreign carriers and others. These foreign carriers each hold
      significantly less than a 50% market share in the international transport market
      between the U.S. and their home markets and in the local access markets in the
      countries where they operate. Moreover, these foreign carriers do not have the
      ability to discriminate against unaffiliated U.S. international carriers through
      the control of bottleneck services or facilities to exercise market power in the
      countries where they operate. Accordingly, VSNL‘s foreign carrier affiliates
      lack sufficient market power on the U.S.—international routes on which they
      operate to affect competition adversely in the U.S. market. Therefore, TAI
      should be presumptively classified as a non—dominant carrier on all
      international routes, except India.


      Section 63.18(0) — Certification Regarding the Anti—Drug Abuse Act of 1988:

      By its signature to this Applications, VSNL Bermuda Telco certifies, pursuant
      to Sections 1.2001 through 1.2003 of the Commission‘s Rules, 47 C.F.R. §§
      1.2001—1.2003) (implementing the Anti—Drug Abuse Act of 1988, 21 U.S.C. §
      3301), that it is not subject to a denial of Federal benefits pursuant to Section
      5301 of the Anti—Drug Abuse Act of 1988.


(9) Certification of Compliance:

      By its signature to this Application, VSNL Bermuda Telco certifies that it
      accepts and will abide by the routine conditions set forth in Section 1.767(g) of
      the Commission‘s Rules, 47 C.F.R. § 1.767(g).

(10) Not Applicable.

(11) Information Required of Transfer of Control Applicants.

      A listing of the cable landing licenses held by TAI and the file numbers of
      these licenses is attached hereto as Exhibit B.

      As part of the Transaction, TIHL is transferring to VSNL Bermuda all of its
      voting interests in the cable systems described in Exhibit B. The voting
      interests have not changed materially since the original applications were filed
      with the Commission and are incorporated by reference herein.




                                    — 14 —


VI._   REQUEST FOR STREAMLINED PROCESSING

       Applicants request streamlined processing of this Application pursuant to Section

1.767(j) and (k)(2) of the Commussion‘s Rules, 47 C.F.R. §1.767() and (k)(2).                This

Application qualifies for streamlined processing because neither VSNL Bermuda Telco nor

TAI, nor any of their affiliates, is a foreign carrier with market power in any of the destination

markets served by the cables that are the subject of this Application.




                                              — 15—


 VIII CONCLUSION

        For the foregoing reasons, Applicants respectfully submit that the public interest,

 convenience, and necessity would be furthered by a grant of this Application. Applicants

 respectfully request expedited treatment to permit the parties to consummate the Transaction

 as soon as possible.

                                                Respectfully submitted,

                                                Teleglobe America Inc.
                                                Teleglobe International Holdings Ltd



                                          By:    \-/.-4_/(   C   \-,‘     /\</"       *



                                                Jean L. Kiddoo
                                                Paul O. Gagnier
                                                Ulises R. Pin
                                                Swidler Berlin LLP
                                                3000 K Street, N.W., Suite 300
                                                Washington, DC 20007

                                                Counsel to Teleglobe America Inc.
                                                and Teleglobe International Holdings Ltd


                                             VSNL Telecommunications (Bermuda) Ltd.


                                          By: Me’w/
Robert J. Aamoth                             Srinivasa Addepalli
Randall W. Sifers                            Director
Joan M. Griffin                              VSNL Telecommunications (Bermuda) Ltd.
Kelley Drye & Warren LLP                    clo VSNL International
1200 19th Street, NW                        2100 Reston Parkway
Suite 500                                   Suite 320
Washington, DC 20036                        Reston, Virginia 20191
(202) 955—9600

Counsel to
VSNL Telecommunications (Bermuda) Ltd.

Date: December ;_5 2005


            EXHIBIT A


ILLUSTRATIVE CHART OF TRANSACTION


  TELEGLOBE CURRENT CORPORATE STRUCTURE
REGARDING CONTROL OF TELEGLOBE AMERICA INC.

           Teleglobe International Holdings Ltd
                        (Bermuda)
                   (NASDAQ — Public)



                        TLGB
                     Luxembourg
                    Holdings S.ar.L




                        TLGB
                     Netherlands
                    Holdings B.V.




                       ITXC Corp.
                       (Delaware)




                       Teleglobe
                      America Inc.
                       (Delaware)


                                     VSNL CURRENT CORPORATE STRUCTURE



                                                       Videsh Sanchar
                                                       Nigam Limited
                                                          (India)




                                                            VSNL
                                                      Telecommunications
                                                        (Bermuda) Ltd.
                                                          (Bermuda)                         Other VSNL Operating
                                                                                                 Subsidiaries‘




‘VSNL‘s other operating subsidiaries include VSNL America, Inc. and VSNL Telecommunications (US) Inc.


           PRE—CLOSING STRUCTURE REGARDING OWNERSHIP OF TELEGLOBE AMERICA INC.

                    Teleglobe International Holdings Ltd                   Videsh Sanchar Nigam Limited
                                 (Bermuda)                                            (India)




                                                                                                          Other VSNL Operating
                                 TLGB                                                                         Subsidiaries‘
                              Luxembourg                                                VSNL
                             Holdings S.ar.L                                      Telecommunications
                                                                                    (Bermuda) Ltd.
                                                                                      (Bermuda)


                                  TLGB
                                Netherlands
                               Holdings B.V.




                                ITXC Corp.
                                (Delaware)




                                 Teleglobe
                               America Inc.
                                (Delaware)




‘VSNL‘s other operating subsidiaries include VSNL America, Inc. and VSNL Telecommunications (US) Inc.


                POST—CLOSING STRUCTURE REGARDING CONTROL OF TELEGLOBE AMERICA INC.

                                                         Videsh Sanchar Nigam Limited
                                                                    (India)



                                                                   VSNL
                                                            Telecommunications                          Other VSNL Operating
                                                               (Bermuda) Ltd.                               Subsidiaries‘
                                                                 (Bermuda)


                                                            TLGB Luxembourg
                                                               Holdings
                                                                 S.ar.l.



                                                                   TLGB
                                                                Netherlands
                                                               Holdings B.V.



                                                                ITXC Corp.
                                                                (Delaware)


                                                                  Teleglobe
                                                                America Inc.
                                                                 (Delaware)



‘VSNL‘s other operating subsidiaries include VSNL America, Inc. and VSNL Telecommunications (US) Inc.

       9238 566v3


                              EXHIBIT B
               SUBMARINE CABLE LANDING LICENSES HELD BY
                       TELEGLOBE AMERICA INC.

Cable System          ECC File No.         Regulatory         Landing Points
                                             Status
 China—US        SCL—LIC—19980309—00005   Non—common         Bandon, Oregon
                                                        San Luis Obispo, California
                                                              Chikura, Japan
                                                            Pusan, South Korea
                                                            Chongming, China
                                                            Fangshan, Taiwan
                                                               Shantou, China
                                                               Okinawa, Japan
                                                          Tanguisson Point, Guam
Americas—II        SCL—AMD—19980430—       Common            Hollywood, Florida
                         00006                          St. Croix, US Virgin Islands
                                                            Miramar, Puerto Rico
                                                          Le Lamentin, Martinique
                                                            Willemstad, Curacao
                                                            Camuri, Venezuela
                                                          Port of Spain, Trinidad
                                                         Cayenne, French Guiana
                                                             Fortaleza, Brazil
 Japan—US        SCL—LIC—19981117—00025   Non—common      Manchester, California
                                                            Kitaibaraki, Japan
                                                            Maruyama, Japan
                                                               Shima, Japan
                                                             Makaha, Hawaii
                                                          Morro Bay, California
Columbus II      SCL—LIC—19980527—00007    Common          Hollywood, Florida
                                                             Lisbon, Portugal
                                                               Conil, Spain
                                                         Mazara Del Vallo, Italy
  TAT—14         SCL—LIC—19990303—00004    Common        Manasquan, New Jersey
                                                            Blaabjerg, Denmark
                                                             Norden, Germany
                                                           Katwijk, Netherlands
                                                            St. Valery, France
                                                         Bude, United Kingdom
                                                          Tuckerton, New Jersey
 CANUS—1         SCL—LIC—19930503—00004   Non—common     Manasquan, New Jersey
                                                        Pennant Point, Nova Scotia


                                        CERTIFICATION

        I, Michael C. Wu, Vice President and General Counsel of Teleglobe America Inc.,
("TAFP‘), hereby certify that the information in the attached Application is true and accurate to
the best of my knowledge and that no party to this Application is subject to a denial of Federal
benefits pursuant to Section 5301 of the Anti—Drug Abuse Act of 1988,‘ as amended.




                                              Michael C. Wu



Date: December i2, 2005




    21 U.$.C. § 853(a).


                              CERTIFICATE OF SERVICE

        I, Ulises R. Pin, hereby certify that on this 13th day of December 2005, a true and
correct copy of the foregoing Application for Transfer of Control of Submarine Cable
Landing Licenses — Streamlined Processing Requested was sent by first class mail upon the
parties listed below:


Ambassador David Gross
U.S. Coordinator
EB/CIP
Department of State
2201 C Street, NW.
Washington, D.C. 20520—5818

Kathy Smith
Chief Counsel/NTIA
U.S. Department of Commerce
14th Street and Constitution Avenue, N.W.
Washington, D.C. 20230

Hillary Morgan
Associate General Counsel, Regulatory
  & International Law
Defense Information Systems Agency
Code RGC
701 S. Courthouse Road
Arlington, VA 22204                             e                   _2




9262472v4



Document Created: 2006-01-24 10:42:38
Document Modified: 2006-01-24 10:42:38

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