WPCK 2BJ Z Courier3|x2x6X@`7X@HP LaserJet 4_230_1HPLAS4.PRS 4x  @\_)^X@26FZ[ 3|xCourierCourier BoldHP LaserJet 4M (PCL) (Additional)HL4MPCAD.PRSx  @\&2mX@2XFZI<?xxx,2x6X@`7X@?xxx,)x `7X<R&HHH,,H6X@`7h@ 2BVJ Z Courier<?xxx$//TRANSMITTED FOR FCC RECORD ONLY//$ $//O&A, AmericaTel Corp., Intl. Ext. of Lines/$ $/63.01 Contents of Applications/$ $/300.214 Extension of Lines/$ ,Before the 0 FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554  ?@<x` `  hh@hpp   FCC 94355  ?<In the Matter ofhh@h) x` `  hh@h)  ?( <AmericaTel Corporationhh@h)ppFile No. ITC94321 x` `  hh@h)  ? <Application for authorization@h)  ? <pursuant to Section 214 of theh)  ?H <Communications Act of 1934, ash)  ?<amended, to supplement existingh)  ?<facilities between the U.S. andh)  ?<various foreign countries@h)  ?0<Order and Authorizationă  ?<xAdopted: December 28, 1994h Released: February 15, 1995 By the Commission: x1. The Commission has under consideration the abovecaptioned application, filed by AmericaTel Corporation (AmericaTel) pursuant to Section 214 of the Communications Act of 1934, as amended, 47 U.S.C.  214, for authority to supplement its existing authorized facilities between the United States and the countries specified in the Appendix hereto for the provision  ?<of its authorized services, including switched voice, private  ?X<line, facsimile, high speed data, and video teleconferencing.UX ?<ԍ At the time AmericaTel filed the instant application, ENTEL International B.V.I. Corporation (ENTEL) owned 49 percent of AmericaTel and had agreed with AmericaTel to acquire an  ? <additional 31 percent. See File No. ITC93160TC (application to transfer control of AmericaTel from Northland Communications, Inc. to ENTEL). ENTEL is whollyowned by ENTELChile, a Chilean domestic and international long distance carrier. The Commission on June 28, 1994 granted AmericaTel's application to transfer  ?#<control to ENTEL. See AmericaTel Corporation, Memorandum  ?$<Opinion, Order, Authorization and Certificate, 9 FCC Rcd 3993  ?%<(1994) (AmericaTel Order). See also infra para. 4. U AT&T Corporation (AT&T) filed a petition to deny the application," ( 0*0*0*!"  ?<which it subsequently withdrew. ?X< x;<ԍ See Letter from Robert E. Conn, Attorney for AmericaTel, to  x<William F. Caton, Acting Secretary, FCC, dated August 12, 1994  x<(agreement to withdraw petition to deny, signed by Stephen C.  x<Garavito, Attorney for AT&T Corp.). AT&T withdrew its petition to  ?x< xx<deny in light of the Commission's action in the AmericaTel Order,  ?@<supra note 1.   ?<  x2. AmericaTel has previously been granted authority to provide satellitebased services between the United States and  ? <all of the countries listed in the attached Appendix.X @D9 ? <ԍ AmericaTel Corporation,  7 FCC Rcd 6610 (1992) (authorizing use of the INTELSAT, PAS1 and Columbia satellite systems). In the instant application, AmericaTel requests authority to acquire circuits from Pan American Satellite (PAS) in order: (1) to provide service to certain countries for which AmericaTel lacks Section 214 authority to use PAS capacity; and (2) to expand its capacity to serve other specified countries that AmericaTel is currently authorized to serve via PAS. AmericaTel states that, although it has authority to use the INTELSAT system for service to these countries, use of the PAS system is necessary because: 1) some of AmericaTel's foreign correspondents have capacity available on the PAS system which they wish to operate with AmericaTel; and 2) PAS capacity, particularly to certain Latin American countries, is the only available international satellite capacity due to a shortage of INTELSAT capacity.  ?<x3. Specifically, AmericaTel requests authority to acquire up to 2.048 Mbps of PAS capacity to some of the countries listed in the Appendix, and up to 1.554 Mbps of capacity to other specified locations. In addition, AmericaTel requests authority to lease capacity from earth station operators in Florida and terrestrial circuits from those earth stations in order to connect those locations with AmericaTel's operating center in Miami, Florida. The international earth station capacity operating with PAS space segment will be leased from authorized international earth station licensees.  ?p<x4. In a Memorandum Opinion, Order, Authorization and  ?8<Certificate adopted June 28, 1994, we authorized ENTEL International B.V.I. Corporation (ENTEL) to acquire control of AmericaTel. ENTEL is a whollyowned subsidiary of ENTELChile, a  ?<Chilean domestic and international long distance carrier.H` D9 ?%<ԍ See note 1, supra.H The  ?X<primary issue presented in the AmericaTel Order was whether the public interest would be served by approving ENTEL's acquisition  ?<of AmericaTel. Our public interest analysis in the AmericaTel  ?<Order focused mainly on the issue of whether AmericaTel's foreign carrier affiliation made it possible for AmericaTel to obtain an"x 0*0*0*$" unfair competitive advantage that could cause harm to other U.S. carriers. x5. We granted the application because we believed that the balance of public interest considerations, including the application's effect on economic development in the United States and increasing access to foreign telecommunications markets for U.S. companies, supports the grant of this application. We found that Chile's markets for domestic long distance and international services are becoming more competitive and open to U.S. investment and participation. Further, Chile's recent initiatives to liberalize its telecommunication laws and regulations appeared to be designed to promote competition and prevent the abuse of market power. We believed that the nondiscrimination safeguards provided by Chile's regulatory regime and the safeguards we imposed in that order would be sufficient to protect U.S. carriers in their provision of U.S.  ?H <international service to Chile.gH K ?<ԍ AmericaTel Order, supra note 1, at para. 7.g x6. Now that the acquisition of AmericaTel is complete, the crucial question to be addressed in our review of this application for additional facilities is whether the authority requested by AmericaTel poses an additional risk of anticompetitive effects and, if so, whether the safeguards we  ?<have in effect are sufficient to protect against that risk.XXK ?<ԍ See Telefonica Larga Distancia de Puerto Rico, Inc., FCC  ?p<94197, released August 8, 1994, at para. 14 (TLD)(granting TLD additional facilities on unaffiliated routes). Under this standard, we conclude that the public interest would be served by granting the instant application. Authorization of the requested facilities does not pose any new potential opportunities for discrimination or unfair competition by AmericaTel not already addressed by the safeguards imposed in the  ?p<AmericaTel Order. AmericaTel has not requested authority either to provide any new services to, or to serve on a direct facilities basis, any new affiliated countries. Thus, grant of the application is unlikely to serve as a vehicle for market  ?<abuse or anticompetitive conduct. xK ?!<ԍ The instant authorization includes additional facilities on AmericaTel's affiliated route (U.S.Chile). AmericaTel indicates that substantial progress has been achieved in  ?#<addressing concerns raised by the Commission in the AmericaTel  ?$<Order.  According to AmericaTel's "initial progress report," all regions of Chile are now served by the newlyinstituted multicarrier dialing system; and Telefonica de Espana has publicly announced it has sold its shares of ENTELChile stock to Chemical Bank (and Chemical Bank, in turn, has announced that it"'0*(()" has sold these shares to Samsung Corporation (of Korea) and  ?X<Chilquinta, S.A. (of Chile)). See Letter from Raul R. Rodriguez, Counsel to AmericaTel Corporation, to William F. Caton, Acting Secretary, FCC, dated October 31, 1994. All conditions included in"0*(("  ?<the AmericaTel Order have been included in this order. x7. Accordingly, IT IS ORDERED that application File No. ITC94321 IS GRANTED and AmericaTel is authorized to:  ?<x` ` a. lease from PAS and operate the satellite capacity specified in Appendix A between appropriately licensed earth stations in the United States and the PAS1 satellite connecting with similar facilities between the satellite and earth stations in the countries listed in Appendix A furnished by AmericaTel's correspondents in those countries; x` ` b. lease capacity in U.S. earth stations authorized to communicate with the PAS1 satellite; x` ` c. lease necessary domestic connecting facilities; and x` ` d. use the facilities set forth in the foregoing  ?<subparagraphs a., b. and c. to provide its authorized services,  ?<including private line and public switched services, subject to any restrictions set forth in this or any other Commission Order involving separate international satellite systems. x8. IT IS FURTHER ORDERED that our authorization of AmericaTel to provide private lines as part of the services authorized herein is limited to the provision of such private lines only between the United States and the points listed in Appendix A that is, private lines which originate in the United States and terminate in the points listed in Appendix A or which originate in the points listed in Appendix A and terminate in the United States. In addition, AmericaTel may not and its tariff must state that its customers may not connect private lines provided over these facilities to the public switched network at either the U.S. end or the points listed in Appendix  ?<A, or both, for the provision of international switched basic services, unless authorized to do so by the Commission upon a finding that the points listed in Appendix A afford resale opportunities equivalent to those available under U.S. law, in  ?<accordance with Regulation of International Accounting Rates,  ?x<Phase II, First Report and Order, 7 FCC Rcd 559 (1991); Order on  ?@<Reconsideration and Third Further Notice of Proposed Rulemaking,  ? <7 FCC Rcd 7927 (1992), petitions for reconsideration pending. x9. IT IS FURTHER ORDERED that neither AmericaTel nor any persons or companies directly or indirectly controlling or controlled by AmericaTel, or under direct or indirect common"(#0*((0*" control with it, shall acquire or enjoy any right, for the purposes of handling or interchanging traffic to or from the United States, its territories or possessions, which is denied to any other United States carrier by reason of any concession, contract, understanding, or working arrangement to which AmericaTel or any persons or companies controlling or controlled by AmericaTel are parties. x10. IT IS FURTHER ORDERED that the applicant shall file a separate Section 214 application for the use of any additional circuits it wishes to operate via the PAS1 satellite.  ?` <x11. IT IS FURTHER ORDERED that the number of circuits authorized herein for the provision of services via separate satellite systems is subject to the limitations specified under the separate systems policy, applicable consultations under Article XIV(d) of the INTELSAT Agreement and PAS's determination whether such capacity can be offered in light of these limitations. x12. IT IS FURTHER ORDERED that AmericaTel shall not agree to accept special concessions directly or indirectly from any foreign carrier or administration with respect to traffic or revenue flows between the United States and any country. x13. IT IS FURTHER ORDERED that AmericaTel shall not route traffic to or from third countries for which it does not have authorization under Section 214 of the Communications Act, as amended, 47 U.S.C.  214.  ?p<x14. IT IS FURTHER ORDERED that AmericaTel shall not bargain for nor agree to accept more than its proportionate share of return traffic from any country.  ?<x15. IT IS FURTHER ORDERED that AmericaTel shall settle its international accounts in accordance with the nondiscriminatory accounting rates it is required to file with this Commission.  ?<x16. IT IS FURTHER ORDERED that AmericaTel shall comply with any current and future Commission policies and requirements concerning international accounting and settlement rates.  ? <x17. IT IS FURTHER ORDERED that AmericaTel shall file with the Commission within 30 days of their execution copies of any operating agreements which it enters into with its foreign correspondents; and that it shall also file with the Commission within 30 days of their execution copies of any operating agreements entered into by its parent/affiliates that affect traffic or revenue flows between the United States and Chile; and that it shall otherwise comply with the filing requirements contained in Section 43.51 of the Commission's Rules, 47 C.F.R.  43.51."'0*((/"Ԍ ?<ԙx18. IT IS FURTHER ORDERED that AmericaTel shall seek, pursuant to Section 63.01 of the Commission's Rules, 47 C.F.R.  63.01, additional authorization under Section 214 of the Communications Act, 47 U.S.C.  214, before adding or deleting circuits between the United States and Chile or before otherwise using its authorized circuits between the United States and Chile in a manner other than as specified in its Section 214 authorizations.  ?<x19. IT IS FURTHER ORDERED that AmericaTel shall file quarterly reports of revenue, number of messages, and number of minutes of both originating and terminating traffic for all international services between the United States and Chile that AmericaTel is authorized to provide within 90 days from the end of each calendar quarter. x20. IT IS FURTHER ORDERED that AmericaTel shall file tariff provisions pursuant to Section 203 of the Communications Act, 47 U.S.C.  203, and Part 61 of the Commission's rules, 47 C.F.R. Part 61, for the services authorized in this Order. In addition, AmericaTel shall file cost support for its tariff rates between the United States and Chile. x21. IT IS FURTHER ORDERED that AmericaTel shall file the annual reports of overseas telecommunications traffic required by Section 43.61 of the Commission's Rules, 47 C.F.R.  43.61. x22. IT IS FURTHER ORDERED that AmericaTel shall file progress reports no later than October 31 of each year between 1994 and 1998. These reports shall contain the information specified in paragraph 37 of the Commission's Memorandum Opinion, Order, Authorization and Certificate, 9 FCC Rcd 3993 (1994). x23. IT IS FURTHER ORDERED that so long as Telefonica de Espana S.A. (Telefonica) has an ownership interest in ENTEL ?X<Chile, AmericaTel shall notify the Commission within seven days of any appointment of any person by ENTEL to the AmericaTel Board that is a representative of either Telefonica or any person or company directly or indirectly controlling it or controlled by it, or under direct or indirect common control with it.  ?@< x24. IT IS FURTHER ORDERED that the regulatory requirements adopted herein are subject to modification as a result of any action the Commission may take in any relevant future proceeding of general applicability. "(#0*((0*" x25. This order is effective upon adoption. Petitions for reconsideration under Section 1.106 of the Commission's Rules, 47 C.F.R.  1.106, may be filed within 30 days of the public notice  ? <of this order (see Section 1.4(b)(2)). x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hh x` `  hhWilliam F. Caton  ?` <x` `  hhActing Secretary   x` ` "0*((" ,APPENDIX A AmericaTel is authorized to lease and operate on the PAS1 satellite system up to 2.048 Mbps of capacity between the United States and each of the countries marked by a single asterisk (*) and up to 1.544 Mbps of capacity between the United States and  ?<the remaining locations for the provision of service between the  ?<United States and the countries listed below.  ?` <Anguilla` `  hhDenmarkhpp*Neth. Antilles  ?( <*Argentina hh*Dominican Republic*Panama  ? <Aruba` `  hh*Ecuadorhpp*Paraguay  ? <Austria` `  hh*Francehpp*Peru  ? <Azerbaijan hh*GermanyhppPortugal  ?H <*Bahamas` `  hhGreecehppRomania  ?<*Barbados` `  hh*GuatemalappRussian Fed.  ?<*Belgium` `  hh*Haitihpp*Spain  ?<*Bermuda` `  hh*HondurashppSweden  ?h<*Bolivia` `  hhIrelandhppSwitzerland  ?0<*Brazil` `  hh*ItalyhppTurks & Caicos Is.  ?<*British Virgin Is.hh*JamaicahppTrinidad and Tobago  ?<*Cayman IslandshhLuxembourgpp*Uruguay  ?<*Chile` `  hh*Mexicohpp*Venezuela  ?P<*Colombia` `  hhMonacohpp*United Kingdom  ?<*Costa Rica hhMontserratppYugoslavia  ?<Czech Republic hh*Netherlands