[Federal Register Volume 59, Number 199 (Monday, October 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25543]
[[Page Unknown]]
[Federal Register: October 17, 1994]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
[DA 94-1093]
Cuban Democracy Act
AGENCY: Federal Communications Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission has authorized IDB WorldCom Services, Inc. to
provide direct packet switched data service between the United States
and Cuba in accordance with the provisions of the Cuban Democracy Act.
This authorization will allow IDB to help meet the large demand for
direct telecommunications services between the United States and Cuba.
Under the guidelines established by the Department of State, IDB is
required to submit reports indicating the numbers of circuits activated
by facility, on or before June 30 and December 31 of each year, and on
the one-year anniversary of this notification in the Federal Register.
EFFECTIVE DATE: October 17, 1994.
FOR FURTHER INFORMATION CONTACT:
Kerry E. Murray, Attorney, Common Carrier Bureau, (202) 418-1494.
SUPPLEMENTARY INFORMATION:
In the Matter of: IDB WORLDCOM SERVICES, INC.--Application for
authority to lease and operate facilities for the provision of
direct packet switched data service between the United States and
Cuba.
[File No. I-T-C-94-440]
Order and Authorization
Adopted: September 29, 1994.
By the Chief, International Facilities Division: 1. The Commission
has under consideration the above-captioned application filed by IDB
WorldCom Service, Inc. (``IDB'') requesting authority pursuant to
Section 214 of the Communications Act of 1934, as amended, to establish
channels of communication between the United States and Cuba for the
provision of direct packet switched data service. The application was
placed on the Commission's public notice and no comments were received.
2. IDB proposes to provide international packet switched data
service between the United States and Cuba via the INTELSAT satellite
located at 325 deg. E.L., using appropriately licensed existing earth
station facilities. Specifically, IDB requests authority to lease from
Comsat and operate one 4 kHz analog SCPC circuit between an authorized
earth station located in the United States and the theoretical midpoint
of the INTELSAT AOR satellite connecting with matching facilities
provided by INTERTEL S.A. (``INTERTEL'') of Cuba. IDB proposes to
acquire and operate facilities to connect its operating center in New
York, New York, to the U.S. earth station. IDB states that it has
already entered into an operating agreement with INTERTEL for the
establishment of direct packet data service between the United States
and Cuba. Under the terms of its agreement, INTERTEL and IDB have
agreed to a 50/50 split of a $5.50 per kilosegment and $5.50 per hour
accounting rate for packet data traffic. IDB states this rate is
consistent with U.S. policy guidelines.\1\ IDB states that it will
initiate service within one year.
---------------------------------------------------------------------------
\1\In Sprint Communications, L.P., I-T-C-94-238, DA94-636, 9 FCC
Rcd 2827 (1994), it was noted that packet data traffic is measured
based on a unit known as a ``kilosegment.'' On a typical dial packet
data transmission, two kilosegments are transferred per hour.
Likewise, on a typical dedicated packet data transmission, four
kilosegments are transferred per hour. Therefore, for a typical dial
packet data transmission, the total accounting rate would be
approximately $16.50 per hour (27.5 cents per minute), including
$5.50 for the hour of time and $11.00 for the two kilosegments of
transmitted packet data. For a typical dedicated packet data
transmission, the total accounting rate would be approximately
$27.50 per hour (46 cents per minute), including $5.50 for the hour
of time and $22.00 for the four kilosegments of transmitted packet
data.
---------------------------------------------------------------------------
3. IDB states that the public interest would be served by a grant
of its application because it will result in an expanded choice of
carriers offering telecommunications service between the United States
and Cuba. IDB states such competition will spur innovation and
efficiency, lead to lower-priced, higher-quality service, and stimulate
customer demand and usage. Further, IDB states that the grant of its
application will result in the expansion of direct telecommunications
service between the United States and Cuba.
4. In a letter dated July 22, 1993, the U.S. Department of State
informed the Commission of the Executive Branch's general policy
guidelines for implementation of the telecommunications provisions of
the Cuban Democracy Act, which provides that ``telecommunication
services between the United States and Cuba shall be permitted.''\2\
Among the policy guidelines are the following requirements: (1) the
proposals must have the potential to be operational within a year; (2)
settlements must not be more favorable to Cuba than the current 50/50
split of the $1.20 per minute accounting rate; (3) proposals must be
limited to equipment and services necessary to deliver a signal to
Cuba; (4) proposals must utilize modes of communications already in
place between the U.S. and Cuba; and (5) carriers shall report the
number of circuits activated by facility on June 30 and December 31 of
each year and on the one-year anniversary of the notification by the
FCC in the Federal Register.
---------------------------------------------------------------------------
\2\Letter dated July 22, 1993, from Richard C. Beaird, Acting
U.S. Coordinator and Director, Bureau of International
Communications and Information Policy, U.S. Department of State to
Acting FCC Chairman James H. Quello.
---------------------------------------------------------------------------
5. The Commission recently granted the application of Sprint
Communications Company, L.P. to provide packet data services between
the United States and Cuba pursuant to the same accounting rate as
proposed by IDB.\3\ In particular, the Commission found that Sprint's
application was consistent with the Executive Branch's general
guidelines set forth in the Department of State's letter dated July 22,
1993.
---------------------------------------------------------------------------
\3\See Sprint Communications Company, L.P., 9 FCC Rcd 2827
(1994).
---------------------------------------------------------------------------
6. Upon consideration of IDB's application, we find that a grant of
its application will serve the public interest subject to the
conditions set forth below. IDB's application is consistent with the
Executive Branch's general guidelines set forth in the Department of
State's letter. IDB states that it will initiate service within one
year, and expects to initiate service shortly after all requisite
regulatory approvals have been obtained. IDB's proposed use of INTELSAT
facilities and appropriately licensed existing earth station facilities
satisfies the requirements that facilities already be in existence and
be limited to equipment and services necessary to deliver a signal to
Cuba.
7. With respect to IDB's proposed 50/50 split of a $5.50 per
kilosegment and $5.50 per hour accounting rate for packet data traffic
between the United States and Cuba, the Department of State indicated
in a follow-up letter dated May 23, 1994 that it has no objection to
our approval so long as the proposed rate does not exceed the 50/50
split of the $1.20 accounting rate required under the guidelines.\4\ We
find that the proposed accounting rate is within the Department of
State's guidelines because both the approximately 27.5 cents per minute
accounting rate for a typical dial packet data transmission, and the
approximately 46 cents per minute accounting rate for a typical
dedicated packet data transmission\5\ is well below the $1.20 per
minute accounting rate approved for voice services.
---------------------------------------------------------------------------
\4\Letter dated May 23, 1994, from Richard C. Beaird, Acting
U.S. Coordinator and Director, Bureau of International
Communications and Information Policy, U.S. Department of State to
Acting FCC Chairman James H. Quello.
\5\See supra note 1.
---------------------------------------------------------------------------
8. Accordingly, It is Ordered that application File No. I-T-C-94-
440 Is Granted and IDB WorldCom Services, Inc. is authorized to:
a. lease from Comsat and operate one 4 kHz analog SCPS circuit
between an appropriately licensed existing international earth station
located in the United States and the INTELSAT AOR satellite located at
325 deg. E.L. connecting with matching facilities furnished by IDB's
correspondent in Cuba, INTERTEL S.A. (the international division of
EMTELCUBA);
b. acquire and operate necessary earth segment facilities located
in the United States;
c. acquire and operate necessary connecting facilities between its
operating center in New York and a U.S. earth station; and
d. use the above facilities for the provision of direct packet
switched data service between the United States and Cuba subject to the
conditions set forth herein.
9. It is further ordered That the service authorized herein must be
implemented within one year from the date of release of this order.
10. It is further ordered That IDB and INTERTEL shall split 50/50
the $5.50 per hour and $5.50 per kilosegment accounting rate for this
service.
11. It is further ordered That the applicant shall submit reports
on or before June 30, and December 31 of each year, and on the one-year
anniversary of the notification of the grant of this application in the
Federal Register indicating the numbers of circuits activated by
facility.
12. It is further ordered That this authorization is subject to the
applicant's obtaining all necessary licenses and authorizations from
the Departments of Treasury and Commerce.
13. It is further ordered That this order is subject to revocation
without a hearing in the event the Department of State or the Federal
Communications Commission determines that the continuation of
communications between the United States and Cuba is no longer in the
national interest.
14. It is further ordered That, pursuant to Section 203 of the
Communications Act, 47 U.S.C. 203, and Part 61 of the Commission's
Rules, 47 CFR Part 61, IDB shall file and have in effect a tariff for
the service authorized in this order before offering services to the
public.
15. It is further ordered That IDB shall file copies of any
operating agreements entered into by itself or its parent/affiliates
with its correspondents within 30 days of their execution, and shall
otherwise comply with the filing requirements contained in Section
43.51 of the Commission's Rules, 47 CFR 43.51.
16. It is further ordered That IDB shall file annual reports of
overseas telecommunications traffic required by Section 43.61 of the
Commission's Rules, 47 CFR 43.61.
17. It is further ordered That IDB shall file a Section 214
application for any additional circuits it proposes to establish
between the United States and Cuba.
18. Acceptance of this authorization shall be deemed acceptance of
the conditions set forth herein.
19. This authorization is issued pursuant to Section 0.291 of the
Commission's Rules and is effective upon release. Petitions for
reconsideration under Section 1.106 or applications for review under
Section 1.115 of the Commission's Rules may be filed within 30 days of
public notice of this order (see Section 1.4(b)(2)).
Federal Communications Commission.
George S. Li,
Chief, International Facilities Division, Common Carrier Bureau.
[FR Doc. 94-25543 Filed 10-14-94; 8:45 am]
BILLING CODE 6712-01-M
