WPC * 2BEJ Courier r5-#d6X@`7@#Times Roman4 PostScript_230_1HPLA4POS.PRSx  @hhhhWpTX@206 ZF%3|d HP LaserJet 4 PostScript_230_1HPLA4POS.PRS]\  PChhhhWpTPxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""d<d<$YYdCCddooCYLL!"S^2CTddCCCd2C28ddddddddddCCdzzzzCYozzdozzooN8NTdCddYdY8dd88Y8ddddNN8dYYYNP7PlC2CC!CCCCCCCCCCd8zdzdzdzdzdYzYzYzYzYC8C8C8C8dddddddddoYzddddoYdzdzdzdYYYYdzYzYzYzYdddddddCdCdCCCdYCYo8oCoCoCo8dddddzNzNzNdNdNdNdNoCoCoCddddoYoNoNNF2idNdddddd7>d<d<+oodCCddddCo -ԍXxForeign Carrier Entry Order,  116.(#e We found that applications from foreign carriers that hold market power raise the greatest potential of anticompetitive conduct, particularly if U.S. carriers are not allowed to compete effectively in those markets. If the affiliation is with a nondominant foreign carrier, we would not apply an effective competitive opportunities analysis to the application.  X -x9.` ` ABSCBN is clearly affiliated with a foreign carrier under our new rules. As a result, we need to determine whether or not to conduct an effective competitive opportunities analysis of the Philippine market. According to ABSCBN, the two Philippine carriers with which ABSCBN is affiliated, RCPI and ICC, do not have market power as defined in the  XM-Foreign Carrier Entry Order, that is, control over bottleneck facilities. RCPI is primarily a  X8-local exchange carrier offering limited international service via a coastal radio station.q8A {O-ԍXxSee, ABSCBN Opposition to Petition to Deny, p. 4.(#q ICC has a very limited number of local exchange lines, and upon its fulfilling an obligation to construct 300,000 local telephone lines, expects to serve approximately five percent of the  X-total number of local exchange lines in the Philippines.[~A {O"-ԍXxId. at 7, footnote 12.(#[ As a result, neither RCPI nor ICC have the ability to terminate more than a very small number of U.S. international calls which  X-might have been originated by ABSCBN or otherwise.HA {O-ԍXxId. at 7.(#H Finally, because of the limited domestic network of these affiliates, ABSCBN will almost be wholly dependent upon interconnection for distribution of incoming international traffic on the Philippine Long Distance Telephone Company (PLDT), which controls approximately ninety percent of the  Xi-Philippines's local exchange lines.HiA {O$-ԍXxId. at 4.(#H Based on this record, we conclude that RCPI and ICC do not have market power in the Philippines. Accordingly, we do not need to examine whether effective competitive opportunities exist in the Philippines. "$4 0*(("Ԍ X-x 10.` ` As for AT&T's concern about "selfcorrespondency" between ABSCBN and its affiliates, this is relevant only if the carrier or carriers on the foreign end are dominant carriers with the ability to act anticompetitively through the control of bottleneck facilities. Here, ICC and RCPI have a very small number of local exchange lines, and there is little risk of anticompetitive activity between these carriers. While the potential exists for "selfcorrespondency" between ABSCBN and its affiliates, ABSCBN is still required to file any operating agreement with either of its affiliates, and our International Settlements Policy bars any discriminatory arrangements regarding traffic and revenue. It is at that point that we can determine whether or not any arrangements between carriers are anticompetitive.  X -x 11.` ` We next examine whether there are any countervailing public interest factors that would require denial of ABSCBN's application. The Executive Branch has not raised any concerns with grant of this application. AT&T's concern regarding abovecost accounting rates is a valid one. According to AT&T, the accounting rate of $1.20 per minute  X -set by ABSCBN's affiliate with MCI is well above cost.U A yO7-ԍXxAT&T Petition to Deny, p. 5.(#U We declined in the Foreign  X -Carrier Entry Order, however, to make costbased accounting rates a precondition to entry. Instead, we determined that it would be part of our additional public interest factors that may  X}-way in favor of, or against, grant of an application.d}XA {O-ԍXxForeign Carrier Entry Order,  71.(#d Accordingly, we view the abovecost accounting rates in the Philippines as a negative factor in our overall public interest analysis of this application. Despite this negative factor, we find that grant of ABSCBN's application would be appropriate because the $1.20 accounting rate ABSCBN's affiliate has established  X!-with other U.S. carriers is within our established benchmark for the Philippines. Z!A {O-ԍXxThe benchmark for this region is $0.78 $1.20. See Regulation of International Accounting Rates, Second Report and Order and Second Further Notice of Proposed Rulemaking (Phase II), 7 FCC Rcd 8040 (1992).(#  We will condition ABSCBN's authorization, however, on ABSCBN's affiliate maintaining an accounting rate within or below our benchmarks.  X-x 12.` ` Upon consideration of the application, filed pursuant to Section 214 of the Communications Act of 1934, as amended, we believe that ABSCBN's entry will increase competition in the United States and Philippine markets and thus benefit U.S. consumers. Therefore, IT IS HEREBY CERTIFIED, that the present and future public convenience and necessity require a grant of the present application, conditioned upon ABSCBN maintaining an accounting rate with U.S. carriers at or below our benchmarks. "; 0*(("  X- Ordering Clauses ă  X-x 13.` ` Accordingly, IT IS ORDERED, that application File No. ITC95522 IS GRANTED, and ABSCBN is authorized to:  Xv-xa.` ` acquire on an Indefeasible Right of Use or lease basis and operate up to two E1 circuits (or up to sixty four (64) kilobit per second circuits equivalents) on the following facilities: PanAmSat (PAS)2; the North Pacific Cable (NPC); the Trans Pacific Cable (TPC5); and the Asia Pacific Cable Network (APCN), for interconnecting circuits with TPC5 on the JapanPhilippines segment only, connecting with similar facilities between these cables and Japan and the Philippines furnished by its correspondents;(#`  X -xb.` ` lease and operate any necessary domestic connecting facilities and overseas connecting facilities, and;(#`  Xy-xc.` ` use the facilities set forth in the foregoing subparagraphs to provide regularly authorized international switched and private line services between the United States and the Philippines, and private line service to Japan.(#`  X-x 14.` ` IT IS FURTHER ORDERED that our authorization of ABSCBN to provide private lines as a part of its authorized services is limited to the provision of such private lines only between the United States and Japan and the Philippines that is, private lines which originate in the United States and terminate in Japan or the Philippines or which originate in Japan or the Philippines and terminate in the United States. In addition, ABSCBN may not and ABSCBN's tariff must state that ABSCBN's customers may not connect private lines provided over these facilities to the public switched network at either the U.S. or foreign end, or both, for the provision of international switched basic services, unless authorized to do so by the Commission upon a finding that the Philippines affords resale  XN-opportunities equivalent to those available under U.S. law, in accordance with Foreign  X9-Carrier Entry Report and Order, FCC No. 95475, released November 30, 1995. The limitations in this paragraph are subject to the exception contained in Section 63.01(k)(6)(i) of  X -the Commission's Rules, 47 C.F.R.  63.01(k)(6)(i).  X-x15.` ` IT IS FURTHER ORDERED that the applicant shall file copies of any operating agreements entered into with its foreign correspondents with the Commission 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 C.F.R. 43.51.  Xl$- F x16.` ` IT IS FURTHER ORDERED that  F grant of ABSCBN's application is conditioned on ABSCBN's affiliate maintaining an accounting rate with U.S. carriers within or below our benchmarks. "''0*((%"Ԍ X-x17.` ` IT IS FURTHER ORDERED that the applicant shall file a tariff 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.  X-x18.` ` IT IS FURTHER ORDERED that the applicant 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.  XH-x19.` ` IT IS FURTHER ORDERED, the ABSCBN shall file annual circuit status  X1-reports in accordance with the requirements set forth in Rules for Filing of International  X -Circuit Status Reports, CC Docket No. 93157, Report and Order, 10 FCC Rcd 8605 (1995).  X -x20.` ` This Order is issued under Section 0.261 of the Commission's Rules and is effective upon adoption. 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 the date of the public notice of this Order (see Section 1.4(b)(2)). x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhScott Blake Harris x` `  hhChief, International Bureau