[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR63.09]

[Page 228-229]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
Sec.  63.09  Definitions applicable to international Section 214 authorizations.

    The following definitions shall apply to Sec. Sec.  63.09-63.24 of 
this part, unless the context indicates otherwise:

[[Page 229]]

    (a) Facilities-based carrier means a carrier that holds an 
ownership, indefeasible-right-of-user, or leasehold interest in bare 
capacity in the U.S. end of an international facility, regardless of 
whether the underlying facility is a common carrier or non-common 
carrier submarine cable or a satellite system.
    (b) Control includes actual working control in whatever manner 
exercised and is not limited to majority stock ownership. Control also 
includes direct or indirect control, such as through intervening 
subsidiaries.
    (c) Special concession is defined as in Sec.  63.14(b) of this part.
    (d) Foreign carrier is defined as any entity that is authorized 
within a foreign country to engage in the provision of international 
telecommunications services offered to the public in that country within 
the meaning of the International Telecommunication Regulations, see 
Final Acts of the World Administrative Telegraph and Telephone 
Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities 
authorized to engage in the provision of domestic telecommunications 
services if such carriers have the ability to originate or terminate 
telecommunications services to or from points outside their country.
    (e) Two entities are affiliated with each other if one of them, or 
an entity that controls one of them, directly or indirectly owns more 
than 25 percent of the capital stock of, or controls, the other one.
    Also, a U.S. carrier is affiliated with two or more foreign carriers 
if the foreign carriers, or entities that control them, together 
directly or indirectly own more than 25 percent of the capital stock of, 
or control, the U.S. carrier and those foreign carriers are parties to, 
or the beneficiaries of, a contractual relation (e.g., a joint venture 
or market alliance) affecting the provision or marketing of 
international basic telecommunications services in the United States.
    (f) Market power means sufficient market power to affect competition 
adversely in the U.S. market.
    (g) As used in this part, the term:
    (1) Interlocking directorates shall mean persons or entities who 
perform the duties of ``officer or director'' in an authorized U.S. 
international carrier or an applicant for international Section 214 
authorization who also performs such duties for any foreign carrier.
    (2) Officer or director shall include the duties, or any of the 
duties, ordinarily performed by a director, president, vice president, 
secretary, treasurer, or other officer of a carrier.

    Note 1: The assessment of ``capital stock'' ownership will be made 
under the standards developed in Commission case law for determining 
such ownership. See, e.g., Fox Television Stations, Inc., 10 FCC Rcd 
8452 (1995). ``Capital stock'' includes all forms of equity ownership, 
including partnership interests.
    Note 2: Ownership and other interests in U.S. and foreign carriers 
will be attributed to their holders and deemed cognizable pursuant to 
the following criteria: Attribution of ownership interests in a carrier 
that are held indirectly by any party through one or more intervening 
corporations will be determined by successive multiplication of the 
ownership percentages for each link in the vertical ownership chain and 
application of the relevant attribution benchmark to the resulting 
product, except that wherever the ownership percentage for any link in 
the chain that is equal to or exceeds 50 percent or represents actual 
control, it shall be treated as if it were a 100 percent interest. For 
example, if A owns 30 percent of company X, which owns 60 percent of 
company Y, which owns 26 percent of ``carrier,''' then X's interest in 
``carrier''' would be 26 percent (the same as Y's interest because X's 
interest in Y exceeds 50 percent), and A's interest in ``carrier''' 
would be 7.8 percent (0.30x0.26 because A's interest in X is less than 
50 percent). Under the 25 percent attribution benchmark, X's interest in 
``carrier''' would be cognizable, while A's interest would not be 
cognizable.

[64 FR 19062, Apr. 19, 1999, as amended at 65 FR 60116, Oct. 10, 2000; 
67 FR 45390, July 9, 2002]