[Federal Register: September 25, 2007 (Volume 72, Number 185)]
[Rules and Regulations]
[Page 54363-54367]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se07-16]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1 and 63
[IB Docket No. 04-47; FCC 07-118]
Modification of the Rules and Procedures Governing the Provision
of International Telecommunications Service
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this Report and Order, the Federal Communications
Commission amends its rules governing the provision of international
telecommunications service. The Commission amends the rule regarding
the discontinuance of international services to reduce the notice
period to 30 days. The Commission also clarifies its rules governing
the provision of international roaming service by U.S. Commercial
Mobile Radio Service (CMRS) carriers, changes in de jure control of an
international section 214 authorization holder, and the treatment of
asset acquisitions. The Commission declines, however, to modify its
rule governing the provision of services by a subsidiary of an
international section 214 authorization holder. The Commission also
declines to adopt changes to its rules governing a CMRS carrier's 214
authorization process. However, the Commission does amend its cable
landing license application rules and application procedures to require
applicants to certify their compliance with the Coastal Zone Management
Act (CZMA).
DATES: Effective October 25, 2007, except for the amendments to
Sec. Sec. 1.767(k)(4), 63.19(a)(1) and (a)(2), and 63.24(c) which
contain information collection requirements that have not been approved
by the Office of Management and Budget (OMB). The Commission will
publish a document in the Federal Register announcing the effective
date of these rules. Written comment by the public on the modified
information collection requirements are due November 26, 2007.
FOR FURTHER INFORMATION CONTACT: David Krech, Policy Division,
International Bureau at (202) 418-7443 or Cara Grayer, Policy Division,
International Bureau at (202) 418-2960. For additional information
concerning the information collection(s) contained in this document,
contact Judith B. Herman at 202-418-0214, or via the Internet at
Judith-B.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order in IB Docket No. 04-47, FCC 07-118, adopted June 20, 2007 and
released on June 22, 2007. The full text of the Report and Order is
available for public inspection and copying during regular business
hours at the Commission's Reference Information Center, Portals II, 445
12th Street, SW., Room CY-A257, Washington, DC 20554. The document also
may be purchased from the Commission's duplicating contractor, Best
Copy and Printing, Inc., Portals II, 445 12th Street, SW., Room CY-
B402, Washington, DC 20554, telephone 202-488-5300, facsimile 202-488-
5563, or via e-mail FCC@BCPIWEB.com.
Summary of Report and Order
1. On March 4, 2004, the Commission released a Notice of Proposed
Rulemaking (NPRM) (Amendment of Parts 1 and 63 of the Commission's
Rules, IB Docket No. 04-47, 69 FR 13276, March 22, 2004) seeking
comment on several potential changes to its international section 214
authorization process and to the rules relating to the provision of
U.S.-international telecommunications services. The Commission sought
comment on whether to: (1) Amend the procedures for discontinuance of
an international service; (2) amend the rules to clarify that U.S.-
authorized resale carriers can resell the U.S.-inbound international
services of either U.S. carriers or foreign carriers; (3) amend the
rules to allow commonly controlled subsidiaries to provide
international service under their parent's section 214 authorization;
(4) revise the international section 214 requirements placed on
Commercial Mobile Radio Service (CMRS) carriers; (5) permit a 30-day
notification period for CMRS carriers to provide international resale
service; (6) amend Sec. 1.767 of the Commission's rules governing
procedures for consideration of applications for cable landing licenses
in order to assure compliance with the Coastal Zone Management Act of
1972 (CZMA); and (7) amend the
[[Page 54364]]
ownership and other rules to clarify their intent. Ten parties filed
comments in response to the Commission's NPRM. Based on review of the
record in this proceeding and for the reasons set forth in the Report
and Order, the Commission modified its rules governing the provision of
international telecommunications service.
2. Discontinuance Issues: The procedures for discontinuing an
international service are contained in Sec. 63.19 of the Commission's
rules. This rule sets forth different procedures for discontinuing
international service, depending on whether a carrier is classified as
a non-dominant, dominant, or a CMRS carrier. Prior to this Order, the
notice period for the discontinuance of international service by non-
dominant carriers differed from the notice period governing the
discontinuance of a domestic service provided by such carriers. In this
Order, the Commission amends its rules to reduce the notification
period for a non-dominant carrier's discontinuance of international
service from 60 days to 30 days, to be more consistent with the minimum
period generally allowed before a non-dominant carrier can receive
authority to discontinue domestic service. In addition, the Commission
modifies its rules to require international carriers to file a copy of
the notification with the Commission at the same time they provide
notification to their affected customers.
3. International Roaming Issues: International roaming allows the
customers of U.S.-licensed CMRS carriers to use the networks of
foreign-licensed wireless carriers to make calls while traveling in
foreign countries. Roaming agreements between U.S and foreign carriers
may permit U.S. carriers' customers that are roaming in other countries
to call the United States or other countries. U.S.-CMRS carriers bill
their customers for international roaming service, and their
international roaming rates and plans are available on the carriers'
Web sites.
As an initial matter, the Commission finds that international
roaming involves call termination in the United States that comes
within the Commission's jurisdiction. The Commission amends Sec. Sec.
63.18(e)(2) and 63.23(c) of its rules to permit explicitly all U.S.-
authorized resale carriers to provide international service by
reselling the international services of any other authorized U.S.
common carrier or foreign carrier, or by entering into a roaming or
other arrangement with a foreign carrier. The Commission clarifies that
a U.S. carrier's resale authority includes authority to provide U.S.
inbound or outbound service via resale or other arrangement between the
carrier and any other authorized U.S. carrier or foreign carrier. This
rule change eliminates uncertainty about the ability of U.S.-authorized
resale carriers to provide U.S.-inbound service to customers under a
roaming or other arrangement that a U.S. carrier has with a foreign
carrier, including arrangements that allow for customer use of a
calling card issued by a U.S. carrier.
4. Commonly-Controlled Subsidiary Issues: Under the Commission's
rules, a commonly-controlled subsidiary must obtain its own
international section 214 authorization, while a wholly-owned
subsidiary may provide service pursuant to its parent company's
authorization. In this Order, the Commission finds that it would not be
in the public interest to amend its rules to allow commonly-controlled
subsidiaries to provide international service pursuant to their
parent's international section 214 authorization. The Commission
reiterated that the differences in ownership between a parent and a
subsidiary that it controls but does not wholly own may raise issues
that require separate review.
5. International 214 Authorizations for CMRS Carriers: The
Commission sought comment on whether it should exempt CMRS carriers
from the requirement to file an application for international section
214 authority prior to providing service. The Commission decided not to
make any changes to the procedures for granting international section
214 authorizations at this time. The Commission intends to develop a
fuller record on possible changes further streamlining the application
process that would apply to all carriers providing international
service, including, but not limited to, CMRS carriers as a part of a
larger review. The Commission intends to address CMRS carrier issues as
a part of that proceeding, and the docket will be kept open until that
time.
6. Transfer of Control: The Commission amends Sec. 63.24 to
clarify that a diminution of an entity's ownership interest in a
carrier from more than 50 percent to 50 percent or less constitutes a
transfer of control that must be reported to the Commission.
7. Asset Acquisition: The Commission adds a note to Sec. 63.24 to
clarify that an asset acquisition that will not result in a loss of
service for its customers should be treated as an assignment rather
than a discontinuance of service. Specifically, the Commission
clarifies that when a carrier sells its customer base, or a portion of
its customer base, to another carrier, the sale of assets will be
treated as an assignment, which requires prior Commission approval
under Sec. 63.24 of the rules.
8. Modification of Cable Landing License Rules: The Coastal Zone
Management Act (CZMA) was enacted to encourage the participation of and
cooperation among state, local, regional, and federal government
agencies that have programs that affect the coastlines. The statute
authorizes states to develop coastal management programs, subject to
federal approval by NOAA. A coastal management program defines
permissible land and water use within the state coastal zone. Under 16
U.S.C. 1456(c)(3)(A), states with federally-approved management
programs are entitled to review such uses for consistency with those
programs any ``required federal license or permit to conduct an
activity, in or outside of the coastal zone, affecting any land or
water use or natural resource of the coastal zone of that state.'' In
the NPRM, the Commission sought comment on whether to amend its rules
to require applicants for a cable landing license to comply with the
CZMA.
9. NOAA has regulatory responsibility over the state certification
process and requirements for all applicants for federal licenses for
activities in or outside of coastal zones under CZMA, 16 U.S.C.
1456(c)(3)(A). NOAA's regulations, 15 CFR part 930, subpart D, provide
a process to determine when federal license or permit activities are
subject to consistency review. If review is required, the applicant
must certify that the proposed activity complies with the enforceable
policies of a state management program, and all relevant states must
concur in the applicant's certification before the Federal agency
grants the license.
10. The Commission amends its cable landing license rules to
comport with CZMA requirements to apply to applications for a license
to construct and operate a submarine cable system or to modify the
construction of a previously approved submarine cable system. The
Commission will not consider the requirements of the CZMA to apply to
applications for changes of ownership of the submarine cable system or
landing stations (transfers or control or assignments) or other
modifications of the cable landing license that do not effect the
construction of the submarine cable system. The Commission therefore
adds a note to Sec. 1.767(a) of its rules clarifying that, in
accordance with the express requirement that a federal license
applicant ``shall provide [the certification] in the application to the
[[Page 54365]]
licensing or permitting agency,'' all consistency certifications
required by section 1456(c)(3)(A) must be included in the application
filed with the Commission for a license to construct and operate a
submarine cable system or to modify the construction of a previously
approved submarine cable system.
11. In accordance with the requirement that state concurrence is to
precede the grant of the cable landing license and to prevent the
construction of any submarine cable system or cable landing station
while a coastal state is reviewing the applicant's consistency
certification, the Commission will not streamline the application or
take any action on a cable landing license application pending
notification, or documentation from the applicant, that all required
state concurrences have been received or may be presumed. In sum, the
Commission revises Sec. 1.767 to clarify that any consistency
certifications required by section 1456(c)(3)(A) must be included in
cable landing license applications filed with the Commission to
construct and operate or modify construction of a previously approved
submarine cable system, and that construction or modification may not
commence until all coastal states have concurred or may be presumed to
have concurred with any required certifications included in the cable
landing application. Further, Sec. 1.767(k)(4) clarifies that the
submarine cable system will not be located in any states where the
cable landing licenses may be subject to the consistency certification
requirements of the CZMA.
Paperwork Reduction Act
12. This Report and Order contains either new or modified
information collections subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. It will be submitted to the Office of
Management and Budget (OMB) for review under section 3507(d) of the
PRA. OMB, the general public, and other Federal agencies are invited to
comment on the modified information collection requirements contained
in this proceeding. In addition, we note that pursuant to the Small
Business Paperwork Relief Act of 2002, Public Law No. 107-198, (see 44
U.S.C. 3506 (c)(4)), the Commission previously sought specific comment
on how the Commission might ``further reduce the information collection
burden for small business concerns with fewer than 25 employees.''
13. All comments regarding the requests for approval of the
information collection should be submitted to Judith B. Herman, Federal
Communications Commission, Room 1-C804, 445 12th Street, SW.,
Washington, DC 20554, or via the Internet to Judith-B.Herman@fcc.gov;
phone 202-418-0214.
Final Regulatory Flexibility Analysis
14. The Regulatory Flexibility Act of 1980, as amended (RFA)
requires that a Regulatory Flexibility Act analysis be prepared for
notice-and-comment rule making proceedings, unless the agency certifies
that ``the rule will not, if promulgated, have a significant economic
impact on a substantial number of small entities.'' The RFA generally
defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental jurisdiction.'' In addition, the term ``small business''
has the same meaning as the term ``small business concern'' under the
Small Business Act. A ``small business concern'' is one which: (1) Is
independently owned and operated; (2) is not dominant in its field of
operation; and (3) satisfies any additional criteria established by the
Small Business Administration (SBA).
15. As stated in the Report and Order, this proceeding was
initiated as part of the Commission's 2002 biennial regulatory review
process. Through this review, the Commission has sought to: facilitate
the introduction of new services; provide customers with more choices,
innovative services, and competitive prices; improve the processing of
authorization applications and regulation of international services;
and lessen the regulatory burdens placed on carriers. In this
proceeding, the Commission examined the rules regarding the
authorization of international services under section 214 of the Act.
16. In the NPRM, the Commission certified that the rules proposed
in this proceeding would not have a significant economic impact on a
substantial number of small entities. The Commission stated that the
proposals would be in the public interest and would lessen the burdens
on all carriers, both small and large, providing international common
carrier service pursuant to section 214 of the Act. In the Order, the
Commission adopts many of the rule changes proposed in the NPRM. Thus,
we certify that rule changes adopted in this Order will have no
significant economic impact on a substantial number of small entities.
17. In the Order, the Commission amends its rules regarding the
discontinuance of international service by aligning the international
rules with those rules for domestic service. The Order will amend the
submarine cable landing rules to require applicants to include
information regarding an applicant's compliance with the Coastal Zone
Management Act of 1972. The Order clarifies the rules to eliminate
confusion as to whether a CMRS carrier requires authority to resell
U.S. inbound service of a foreign carrier for the U.S.-CMRS carrier's
customers that are roaming in a foreign country. The Order requires a
carrier to notify the Commission when there is a change in ownership to
50 percent or less. Also, a diminution of an entity's ownership
interest in a carrier to 50 percent or less constitutes a transfer of
control that must be reported to the Commission. The Order amends its
rules to clarify that an asset acquisition that will not result in a
loss of service for its customers should be treated as an assignment
rather than a discontinuance of service. In addition, the Report and
Order amends the rules so that when a carrier sells its customers or a
portion of its customers to another carrier, the sale of assets will be
treated as an assignment.
18. The rule changes adopted in this Report and Order will benefit
all entities, both small and large. The rules for discontinuing
international service will be consistent with the rules for
discontinuing domestic service, thereby eliminating the disparities
between domestic and international service rules. The Commission finds
that it will be in the public interest to eliminate the requirement
that CMRS carriers seek authority for the resale of inbound traffic.
Rather, this authority will be included in the carrier's global resale
authority. This rule change will reduce the filing requirements on CMRS
carriers, many of which are small entities. Although the majority of
submarine cable landing license applicants is not considered small
entities, the rule changes affecting these applicants are nominal and
will ensure that our rules are consistent with the Coastal Zone
Management Act of 1972.
19. The rules adopted in the Report and Order are administrative
and will streamline and clarify our processes. Therefore, we find that
the rules adopted in this Order will not have a significant economic
impact on a substantial number of small entities.
Ordering Clauses
20. Accordingly, it is ordered that, pursuant to the authority
contained in sections 1, 4(i), 4(j) 11, 201-205, 211, 214, 219, 220,
303(r), 309, and 403 of the Communications Act of 1934, as amended, 47
U.S.C. 151, 154(i), 154(j), 161, 201-205, 211, 214, 219, 220, 303(r),
[[Page 54366]]
309 and 403, and sections 34-39 of the Cable Landing License Act, 47
U.S.C. 34-39, this report and order is hereby adopted.
21. It is ordered that the Commission's Consumer and Governmental
Affairs Bureau, Reference Information Center, shall send a copy of this
report and order, including the Final Regulatory Flexibility Act
Certification, to the Chief Counsel for Advocacy of the Small Business
Administration in accordance with section 603(a) of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq.
22. It is further ordered that the Regulatory Flexibility
Certification, as required by section 604 of the Regulatory Flexibility
Act and as set forth above is adopted.
List of Subjects in 47 CFR Parts 1 and 63
Cable, Telecommunications.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
0
For the reasons discussed in the preamble, the Federal Communications
Commission amends 47 CFR parts 1 and 63 to read as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 continues to read as follows:
Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i) , 154
(j), 155, 157, 225, 303(r) and 309.
0
2. Section 1.767 is amended by adding a note to paragraph (a)(10) and
by adding new paragraph (k)(4) to read as follows:
Sec. 1.767 Cable landing licenses.
(a) * * *
(10) * * *
Note to paragraph (a)(10): Applicants for cable landing licenses
may be subject to the consistency certification requirements of the
Coastal Zone Management Act, 16 U.S.C. 1456, if they propose to
conduct activities, in or outside of a coastal zone of a state with
a federally-approved management plan, affecting any land or water
use or natural resource of that state's coastal zone. Before filing
their applications for a license to construct and operate a
submarine cable system or to modify the construction of a previously
approved submarine cable system, applicants must determine whether
they are required to certify that their proposed activities will
comply with the enforceable policies of a coastal state's approved
management program. In order to make this determination, applicants
should consult National Oceanic Atmospheric Administration (NOAA)
regulations, 15 CFR part 930, subpart D, and review the approved
management programs of coastal states in the vicinity of the
proposed landing station to verify that this type of application is
not a listed federal license activity requiring review and that no
state has sought or received NOAA approval to review the application
as an unlisted activity. If it is determined that any certification
is required, applicants shall consult the affected coastal state(s)
(or designated state agency(ies)) in determining the contents of any
required consistency certification(s). Applicants may also consult
the Office of Ocean and Coastal Management (OCRM) within NOAA for
guidance. The cable landing license application filed with the
Commission shall include any consistency certification required by
section 1456(c)(3)(A) for any affected coastal state(s). Upon
documentation from the applicant, or notification from each affected
coastal state, that the state has either concurred, or by its
inaction, is conclusively presumed to have concurred with the
applicant's consistency certification, the Commission may take
action on the application.
* * * * *
(k) * * *
(4) Certifying that for applications for a license to construct and
operate a submarine cable system or to modify the construction of a
previously approved submarine cable system, the submarine cable system
will not be located in any states where the cable landing licenses may
be subject to the consistency certification requirements of the Coastal
Zone Management Act, 16 U.S.C. 1456.
* * * * *
PART 63--EXTENSION OF LINES, NEW LINES AND DISCONTINUANCE,
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS
0
3. The authority citation for part 63 continues to read as follows:
Authority: Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218,
403 and 651 of the Communications Act of 1934, as amended, 47 U.S.C.
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless
otherwise noted.
0
4. Section 63.18 is amended by revising paragraph (e)(2) introductory
text to read as follows:
Sec. 63.18 Contents of applications for international common
carriers.
* * * * *
(e) * * *
(2) Global Resale Authority. If applying for authority to resell
the international services of authorized common carriers subject to
Sec. 63.23, the applicant shall:
* * * * *
0
5. Section 63.19 is amended by revising paragraphs (a)(1) and (a)(2) to
read as follows:
Sec. 63.19 Special procedures for discontinuances of international
services.
(a) * * *
(1) The carrier shall notify all affected customers of the planned
discontinuance, reduction or impairment at least 30 days prior to its
planned action. Notice shall be in writing to each affected customer
unless the Commission authorizes in advance, for good cause shown,
another form of notice.
(2) The carrier shall file with this Commission a copy of the
notification on the date on which notice has been given to all affected
customers. The filing may be made by letter (sending an original and
five copies to the Office of the Secretary, and a copy to the Chief,
International Bureau) and shall identify the geographic areas of the
planned discontinuance, reduction or impairment and the
authorization(s) pursuant to which the carrier provides service.
* * * * *
0
6. Section 63.23 is amended by revising paragraph (c) to read as
follows:
Sec. 63.23 Resale-based international common carriers.
* * * * *
(c) Subject to the limitations specified in paragraph (b) of this
section and in Sec. 63.17(b), the carrier may provide service by
reselling the international services of any other authorized U.S.
common carrier or foreign carrier, or by entering into a roaming or
other arrangement with a foreign carrier, for the provision of
international basic switched, private line, data, television and
business services to all international points.
Note to paragraph (c): For purposes of this paragraph, a roaming
arrangement with a foreign carrier is defined as an arrangement
under which the subscribers of a U.S. commercial mobile radio
service provider use the facilities of a foreign carrier with which
the subscriber has no direct pre-existing service or financial
relationship to place a call from the foreign country to the United
States.
* * * * *
0
7. Section 63.24 is amended by adding a note to paragraph (b) and by
revising paragraph (c) to read as follows:
Sec. 63.24 Assignments and transfers of control.
* * * * *
(b) * * *
Note to paragraph (b): The sale of a customer base, or a portion
of a customer
[[Page 54367]]
base, by a carrier to another carrier, is a sale of assets and shall
be treated as an assignment, which requires prior Commission
approval under this section.
(c) Transfers of control. For purposes of this section, a transfer
of control is a transaction in which the authorization remains held by
the same entity, but there is a change in the entity or entities that
control the authorization holder. A change from less than 50 percent
ownership to 50 percent or more ownership shall always be considered a
transfer of control. A change from 50 percent or more ownership to less
than 50 percent ownership shall always be considered a transfer of
control. In all other situations, whether the interest being
transferred is controlling must be determined on a case-by-case basis
with reference to the factors listed in Note to paragraph (c).
* * * * *
[FR Doc. E7-18777 Filed 9-24-07; 8:45 am]
BILLING CODE 6712-01-P