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Jan. 16, 1996)#&a\  P6G;s7&P#. Applications for equivalency determinations for Australia, Denmark, Finland, and New Zealand currently are pending. (# " 0*(("Ԍ X-ԙx8.` ` In the #Xh*f9 xr G; `XX#Foreign Carrier Entry# Xh*f9 xr G; `XX# Order# Xj\  P6G;XXP#, the Commission amended its rules in Section 63.01 to restate its equivalency criteria in the same manner as its effective competitive  X-opportunities criteria, which govern entry by foreign carriers that control foreign bottleneck  X-facilities.A S -ԍXx#&_*f9 xr G;\w&X#See #&_*f9 xr G;\w&X#Foreign Carrier Entry Order#&a\  P6G;s7&P# at  133138.(# The Commission's rules thus require that applicants seeking to provide switched service over resold private lines demonstrate that the foreign country at the other end of the private line provides U.S. carriers with: (1) the legal right to resell international private lines, interconnected at both ends, for the provision of switched services; (2) nondiscriminatory charges, terms and conditions for interconnection of foreign domestic carrier facilities for termination and origination of international services, with adequate means of enforcement; (3) competitive safeguards to protect against anticompetitive and discriminatory practices affecting private line resale; and (4) fair and transparent regulatory procedures, including separation between the regulator and the operator of international facilitiesbased services.  X -x9.` ` The Commission also noted that while the effective competitive opportunities test requires that these four principles be satisfied in the near future, its equivalency standard requires that the four principles be satisfied at the time an equivalency determination is made.  X-This distinction was retained to serve the underlying purpose of the equivalency requirement:  X{-to prevent undue increase in the U.S. settlements deficit.{JA Sv-ԍXx#&_*f9 xr G;\w&X#Id#&a\  P6G;s7&P#. at  138.(#Ɨ  XM-x ACC's Applications ă  W< #Xh*f9 xr G; `XX#A.xU.S.Germany Private Line Resale Application # Xj\  P6G;XXP#  X-x 10.` ` ACC's applications require that we determine whether there are equivalent private line resale opportunities for U.S.based carriers in Germany and France. ACC does not contend that Germany currently meets the Commission's equivalency requirement. Rather, ACC claims that there are positive signs that Germany may offer such opportunities in the future based on ACC's belief that the German Federal Ministry of Posts and Telecommunications is "intrigued" by the concept of domestic and international resale. ACC believes that this application facilitates its domestic and international resale applications currently pending in Germany by presenting a complete proposal for endtoend service. ACC asserts that Germany has taken significant steps in recent years, including permitting the  X"-use of private lines to resell data and valueadded services, to open its telecommunications"" 0*((k" market. According to ACC, the application before us will help encourage further German  X-liberalization.A Sb-ԍXx#&_*f9 xr G;\w&X#See#&a\  P6G;s7&P# ACC Germany Application at 912.(#ƫ  X-x 11.` ` AT&T urges us to deny ACC's application. It asserts that Germany fails to meet the Commission's minimum requirement under Section 63.01(k)(5) of our rules for existing, not potential, equivalency. AT&T states that Germany prohibits essential conditions necessary for such a finding of equivalency: the resale of public switched voice services and the ability to interconnect private lines to the public switched network at both ends for the provision of public switched voice services. AT&T also asserts that the German market lacks the protections including tariffed or standard, nondiscriminatory carrier interconnect arrangements at standard prices necessary to ensure the existence of a viable international resale market in a country that is dominated by Deutsche Telekom, the monopoly provider of public switched voice telephony services and facilities. Moreover, AT&T disagrees with ACC  X -that the application promotes German private line resale liberalization. Specifically, AT&T states that continued consideration of the application would be counterproductive by  X -suggesting that something less than true equivalency would be sufficient. jA S-ԍXx#&_*f9 xr G;\w&X#See#&a\  P6G;s7&P# AT&T Germany Petition at 1017.(#ƪ  Wy< #Xh*f9 xr G; `XX#B.xU.S.France Private Line Resale Application # Xj\  P6G;XXP#  Xb-  XK-x 12.` ` ACC also does not contend that there are equivalent resale opportunities in France. ACC recognizes that France does not permit the resale of public switched voice services or the interconnection of private lines to the public switched network at both ends, the minimum criteria for an equivalency finding. France Telecom is the monopoly provider of public switched voice telephony services and facilities, ACC concedes. Instead, ACC submits that the French regulatory environment is becoming favorably disposed towards competition. ACC states that, based on its contacts with French regulators, it believes that the French Government is interested in the concept of international private line resale. ACC  X-further believes that the pendency of its application before us will serve to accelerate the  X|-process of securing authority to provide private line resale in France.| A S9-ԍXx#&_*f9 xr G;\w&X#See#&a\  P6G;s7&P# ACC France Application at 812.(#ƪ xx  XN-x 13.` ` AT&T urges us to deny ACC's application. AT&T states that ACC makes no claim that equivalent resale opportunities currently exist in France, and only asserts that, at  X -most, these opportunities might exist in the future. AT&T states that France does not meet the Commission's minimum requirements for equivalency. AT&T also contends that France lacks essential protections for resellers, including a tariffed or standard, nondiscriminatory carrier interconnect arrangement at standard prices. AT&T concludes that the application is"0*((,"  X-facially deficient and should be summarily dismissed.A Sy-ԍXx#&_*f9 xr G;\w&X#See#&a\  P6G;s7&P# AT&T France Petition at 314.(#ƨ  X- ,0Discussion ă  X-x 14.` ` ACC and AT&T do not disagree about the key factual issues in this proceeding: German and French private line resale policies. AT&T emphasizes, and ACC  Xv-concedes, that Germany and France do not meet the minimum criteria outlined in our #Xh*f9 xr G; `XX#Foreign  Xa-Carrier Entry Order# Xj\  P6G;XXP# because they currently prohibit the resale of private lines for the provision of public switched services and the interconnection of private lines to the public switched network at both ends for the provision of public switched services. The only issue in dispute is whether the pendency of ACC's applications would serve some other public interest purpose, such as encouraging liberalization in Germany or France.  X -x15.` ` There is no question that the current German and French regulatory regimes do  X -not meet the minimum criteria of the #Xh*f9 xr G; `XX#Foreign Carrier Entry Order# Xj\  P6G;XXP#. France and Germany currently allow only resale for the provision of oneend interconnected private line services. The provision of international resale of private line services interconnected at both ends to the public switched network is only permitted to "closed user groups" in both Germany and  Xh-France.hjA S-ԍXxThe precise definition of "closed user groups" differs from country to country within the European Union. The term typically is used to mean a stable and identifiable groups of users, and not the general public. The European Union has defined closed user groups to include members of an integrated business community encompassing a corporation, partiallyowned subsidiaries, employees working outside company premises, major suppliers and customers or dealers.(# In sum, there is no evidence of #Xh*f9 xr G; `XX#existing# Xj\  P6G;XXP# private line resale opportunities equivalent  XS-to those afforded in the United States, as the Commission required in its equivalency  X<-proceedings regarding Canada, Sweden and the United Kingdom.<BA S/-ԍXx#&_*f9 xr G;\w&X#See fONOROLA/EMI Order#&a\  P6G;s7&P#, 7 FCC Rcd at 7312; #&_*f9 xr G;\w&X#ACC Global/Alanna Order#&a\  P6G;s7&P#, 9 FCC Rcd at  S -6241; #&_*f9 xr G;\w&X#Cable & Wireless Order#&a\  P6G;s7&P# at  20.(#ư We disagree with ACC that the indefinite pendency of the applications, until further private line resale liberalization  X-in Germany and France occurs, would serve any useful purpose.8 A S} -ԍXxWe address these applications before earlierfiled applications for other countries because, unlike other pending applications, resale and the interconnection of private lines to the public switched network is prohibited as a matter of law in Germany and France, and there is no indication that the French or German Governments seek to change the status quo in advance of January 1, 1998. (#ƾ  X-x16.` ` We recognize that both Germany and France appear to be making progress in developing a new regulatory structure to implement competition for the provision of public  X-switched voice services and facilities by January 1, 1998, as mandated by the E.U. Council of"0*((R"  X-Ministers and directed by the European Commission.bA Sy-ԍXx#&_*f9 xr G;\w&X#See#&a\  P6G;s7&P# European Council Resolution of July 22, 1993 on the review of the situation in the telecommunications sector and the need for further development in the market, 93/C 213/01, OJ C213; Commission Directive amending Commission Directive 90/388/EEC, regarding the implementation of full competition in telecommunications markets (Mar. 6, 1996).(# For example, the Federal Ministry of Posts and Telecommunications has issued a draft Telecommunications Act, which proposes  X-wideranging liberalization of the German telecommunications regulatory regime.A Su-ԍXxGerman Federal Ministry of Posts and Telecommunications, "Draft Telecommunications Act,"  SM -(Jul. 27, 1995).#&_*f9 xr G;\w&X#(# In allowing competitive provision of telecommunications facilities and public switched services, such liberalization presumably would include the resale of international private lines for the  X-provision of switched services covered by this application.jA S -ԍXxIn addition, as the Commission emphasized in the #&_*f9 xr G;\w&X#Sprint Corporation Declaratory Ruling and  S-Order#&a\  P6G;s7&P#, we are encouraged that both Governments have indicated that the provision of switchless resale, also known as "rebilling," is permissible notwithstanding the legal  S4-monopolies of DT and FT. #&_*f9 xr G;\w&X#See Sprint Corporation Declaratory Ruling and Order#&a\  P6G;s7&P#, FCC 95498, at  112113. We have no evidence, however, that DT or FT have yet allowed switchless resale.(# Until such competition emerges, however, DT still is operating as a classic monopolist, controlling access to the German public switched network, and refusing to permit its network to be used to provide international resale of private line services interconnected at both ends.  X -x17.` ` Similarly, the French Government has issued a "public consultation document" entitled "New Ground Rules for Telecommunications in France," which outlines key features  X -of the French Government's planned liberalization of its telecommunications regulatory  X -regime. H A S-ԍXxFrench Ministry of Information Technology and Postal Services, "New Ground Rules for Telecommunications in France" (Oct. 1995).(#ƾ This document expresses the French Government's commitment to the implementation of full competition for public switched voice telephony services and facilities by January 1, 1998. However, France Telecom now does not allow its network to be used to provide international resale of private line services interconnected at both ends to the public switched network.  XK-x18.` ` Although there is no indication that German and French regulatory policies on private line resale will change in the near term, we look forward to the implementation of liberalization measures in Germany and France. We ask ACC to keep us apprised of the status of its discussions with German and French officials regarding ACC's international private line resale applications pending in those countries. In the event that private line resale liberalization is forthcoming sooner than the 1998 deadline in either or both countries, we would welcome further applications for equivalency findings for these countries. In the interim, we agree with AT&T that ACC's applications must be denied. We therefore deny"0*((R" ACC's applications without prejudice to refiling at a later date.  X- Ordering Clauses ă  X-x19.` ` Accordingly, IT IS HEREBY ORDERED that the applications File Nos. ITC95056 and 059 of ACC Global Corporation for authorization to resell international private lines for the provision of switched services between the United States and Germany and the United States and France ARE DENIED WITHOUT PREJUDICE.  X1-x20.` ` This Order is issued under Section 0.261 of the Commission's Rules. 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 public notice of this Order (see Section 1.4(b)(2)). x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhScott Blake Harris x` `  hhChief, International Bureau