[Federal Register Volume 62, Number 116 (Tuesday, June 17, 1997)]
[Rules and Regulations]
[Pages 32964-32965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15700]
[[Page 32963]]
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Part III
Federal Communications Commission
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47 CFR Part 63
Rules and Policies on Foreign Participation in the U.S.
Telecommunications Market: Final and Proposed Rules and International
Settlement Rates, Proposed Rule
Federal Register / Vol. 62, No. 116 / Tuesday, June 17, 1997 / Rules
and Regulations
[[Page 32964]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 63
[IB Docket No. 97-142, FCC 97-195]
Rules and Policies on Foreign Participation in the U.S.
Telecommunications Market
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: On June 4, 1997, the Federal Communications Commission
(``Commission'') adopted a decision making technical corrections to the
rules governing the entry of foreign-affiliated carriers into the U.S.
market for basic telecommunications services. The rules it corrected
were adopted in the Foreign Carrier Entry proceeding (60 FR 67332,
December 29, 1996). The Commission took this action at the same time
that it adopted a Notice of Proposed Rulemaking that proposes changes
to the effective competitive opportunities test and related rules
adopted in the Foreign Carrier Entry proceeding (See Rules and Policies
on Foreign Participation in the U.S. Telecommunications Market (FCC 97-
195, IB Docket No. 97-142), published elsewhere in this issue).
EFFECTIVE DATE: July 17, 1997.
ADDRESSES: Federal Communications Commission, 1919 M Street, N.W., Room
222, Washington, D.C. 20554.
FOR FURTHER INFORMATION CONTACT: Susan O'Connell, Attorney-Advisor,
Policy and Facilities Branch, Telecommunications Division,
International Bureau, (202) 418-1470.
SUPPLEMENTARY INFORMATION:
1. On February 15, 1997, the United States and 68 other countries
concluded an agreement to open markets for basic telecommunications
services. This agreement, negotiated under the auspices of the World
Trade Organization (WTO), covers 95 percent of the global market for
basic telecommunications services. In light of the WTO Agreement, on
June 4, 1997, the Federal Communications Commission initiated a
proceeding to review its rules governing the entry of foreign
affiliated entities into the U.S. market for basic telecommunications
services. The Commission also amended Part 63 of its rules to reflect
several technical corrections. (Review of Market Entry and Regulation
of Foreign-Affiliated Entities, FCC 97-195, Order and Notice of
Proposed Rulemaking, IB Docket No. 97-142.)
2. The Commission revised Sec. 63.18(e)(3) of the rules that sets
forth the equivalency test currently applied in authorizing the use of
private lines between the U.S. and all countries for the provision of
switched services. The equivalency test, as set forth in
Sec. 63.18(e)(3), was adopted in the Foreign Carrier Entry proceeding
(60 FR 67332, December 29, 1995). In drafting the rule, the word
``reasonable'' was inadvertently omitted. As corrected, this paragraph
will provide in relevant part that the ``charges, terms and conditions
for interconnection to foreign domestic carrier facilities'' be both
``reasonable and nondiscriminatory.''
3. Section 63.11(b) was amended to clarify the Commission's
notification requirement for U.S. international carriers. In the
Foreign Carrier Entry Order, the Commission required that any U.S.
international carrier that knows of a planned investment by a foreign
carrier of a ten percent or greater interest, whether direct or
indirect, in the capital stock of the authorized carrier shall notify
the Commission within sixty days prior to the acquisition of such
interest. The Commission has found that carriers have interpreted this
rule to include only investments by foreign carriers and not
investments by their parent holding companies. The Commission intended
that the prior notification requirement provide it with an opportunity
to determine whether a particular planned investment in a U.S. carrier
raises concerns that a foreign carrier with market power may, as a
result of the investment, obtain a financial incentive to discriminate
in favor of the U.S. carrier. Such an incentive can exist whether the
foreign carrier itself makes the investment in the U.S. carrier or
whether the investment is made by an entity that directly or indirectly
controls the foreign carrier, is controlled by the foreign carrier, or
is under direct or indirect common control with the foreign carrier.
The Commission amended Sec. 63.11 to cover all such ownership
interests. The Commission also deleted the word ``within'' from the
first sentence of Sec. 63.11(b) to make clear that carriers must notify
the Commission of these planned investments at least 60 days before
they are consummated.
4. The Commission also amended Sec. 63.11(b) to make clear the
current obligation of U.S. carriers that have notified the Commission
of a 10 percent or greater planned investment by a foreign carrier or
affiliated company to maintain the accuracy of the initial report by
notifying the Commission of additional investment interests by the
foreign carrier or an affiliated company.
5. The Commission's decision also included an NPRM that solicits
comments on a number of proposals governing foreign participation in
the U.S. market for basic telecommunications services. (See Rules and
Policies on Foreign Participation in the U.S. Telecommunications Market
and the public notice soliciting supplemental comments in the
International Settlement Rates proceeding, IB Docket No. 96-261 [61 FR
68702, December 30, 1996] published elsewhere in this issue.)
Ordering Clause
It is further ordered that the minor changes to part 63 of the
Commission's rules, as set forth in the attachment, are hereby adopted
effective July 17, 1997.
List of Subjects in 47 CFR Part 63
Communications common carriers, Reporting and recordkeeping
requirements.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rule Changes
Part 63 of Title 47 of the Code of Federal Regulations is amended
as follows:
PART 63--EXTENSION OF LINES AND DISCONTINUANCE, REDUCTION, OUTAGE
AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS AND GRANTS OF
RECOGNIZED PRIVATE OPERATING AGENCY STATUS
1. The authority citation for Part 63 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 201-205, 218, 403 and
533, unless otherwise noted.
2. Section 63.11 is amended by revising paragraph (b) to read as
follows:
Sec. 63.11 Notification by and prior approval for U.S. international
carriers that have or propose to acquire ten percent investments by,
and/or an affiliation with, a foreign carrier.
* * * * *
(b) Any carrier authorized to provide international communications
service under this part that knows of a planned investment by a foreign
carrier of a ten percent or greater interest, whether direct or
indirect, in the capital stock of the authorized carrier shall notify
the Commission sixty days prior to the acquisition of such interest.
Any such authorized carrier shall report a ten percent or greater
planned investment
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in the capital stock of the carrier by a foreign carrier, or by any
entity that directly or indirectly controls or is controlled by a
foreign carrier, or that is under direct or indirect common control
with a foreign carrier. The notification shall certify to the
information specified in paragraph (c) of this section. Carriers that
have filed a notification pursuant to this paragraph are required to
maintain the accuracy of the initial filing by notifying the Commission
of additional investment interests by the foreign carrier or an
affiliated company.
* * * * *
3. Section 63.18 is amended by revising paragraph (e)(3)(i)(B) to
read as follows:
Sec. 63.18 Contents of applications for international common carriers.
* * * * *
(e) * * *
(3) * * *
(i) * * *
(B) Reasonable and nondiscriminatory charges, terms and conditions
for interconnection to foreign domestic carrier facilities for
termination and origination of international services, with adequate
means of enforcement;
* * * * *
[FR Doc. 97-15700 Filed 6-16-97; 8:45 am]
BILLING CODE 6712-01-P
