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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** DA-96-859 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) TELEMEDIA INTERNATIONAL USA, INC. ) ) Application for authority to ) File No. I-T-C-95-587 provide resale of switched ) services, and to resell ) non-interconnected private ) lines between the United ) States and overseas points and ) interconnected private lines ) between the United States and ) the United Kingdom and Canada. ) ORDER, AUTHORIZATION AND CERTIFICATE Adopted: May 28, 1996 Released: June 5, 1996 By the Chief, Telecommunications Division: 1. On October 25, 1995, TeleMedia International USA, Inc. (TeleMedia) filed the above-captioned application, requesting authority, pursuant to Section 214 of the Communications Act of 1934, as amended, to resell the international switched voice services of underlying carriers, to provide resold non-interconnected private lines to various overseas points, and to provide resold private lines interconnected with the public switched network between the United States, on the one hand, and the United Kingdom and Canada, on the other hand. The application was placed on public notice on November 14, 1995. No comments were received. 2. TeleMedia certifies that it is affiliated with several foreign carriers pursuant to Section 63.01(r)(i) of the Commission's Rules. The sole shareholder of TeleMedia is TeleMedia International, Ltd. (TeleMedia UK), a corporation organized under the laws of the United Kingdom which provides enhanced communications services in the United Kingdom and between the United Kingdom and various overseas points. TeleMedia UK is a wholly-owned subsidiary of Telecom Italia, an Italian corporation which provides communications services in Italy and between Italy and overseas points. TeleMedia International Hong Kong (TeleMedia HK), a Hong Kong corporation which provides enhanced communications services, is also a wholly-owned subsidiary of TeleMedia UK. TeleMedia is also affiliated with Telecom Italia Mobile, S.p.A. and Telespazio, S.p.A., providers of communications services in Italy. TeleMedia is not requesting authority to provide any service to or from Italy. None of the other companies with which it is affiliated owns any facilities nor do they have any market power. 3. Since TeleMedia is affiliated with foreign carriers under the Commission's rules, the Commission must determine whether or not to conduct an effective competitive opportunities analysis of the United Kingdom and Hong Kong international services market. The Commission stated in the Foreign Carrier Entry Order that it would apply this analysis only to applications from foreign carriers that have market power, or to U.S. carriers that are affiliated with such carriers, in the destination markets they seek to serve. If the affiliation is with a non-dominant foreign carrier, the Commission would not apply an effective competitive opportunities analysis to the application. TeleMedia-UK and TeleMedia-HK are non-dominant carriers and therefore we do not need to conduct an analysis of the United Kingdom or Hong Kong market. TeleMedia has an affiliation with Telecom Italia, a company that has market power through its control of bottleneck facilities in Italy. However, TeleMedia does not seek to provide service to Italy. We will specifically exclude service to Italy in TeleMedia's authorization, thus we do not need to conduct an effective competitive opportunities test of the Italian market. TeleMedia has no affiliation with any of the other countries it seeks to serve. 4. Upon consideration of the application and in view of the foregoing, we conclude that TeleMedia's entry into the market will increase competition in the United States and foreign 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 application. 5. Accordingly, IT IS ORDERED that application File No. I-T-C-95-587 IS GRANTED, and TeleMedia is authorized to: a. provide international switched services by the resale of the international switched voice services set forth in AT&T's Tariffs FCC Nos. 1, 2 and 12, and MCI's Tariff FCC No. 1, between the United States and the overseas points listed in those tariffs, except that service shall not be provided between the United States and Italy; b. lease from U.S. international carriers private line circuits between the United States and the following points, for the provision of private line services, not interconnected with the public switched network: Country No. of E-1 circuits Argentina 2 Australia 2 Canada 1 Chile 1 Hong Kong 4 Mexico 4 New Zealand 1 United Kingdom 2 c. lease from U.S. international carriers one E-1 circuit between the United States and Canada, and two E-1 circuits between the United States and the United Kingdom, for the provision of private line services interconnected with the public switched networks. 6. IT IS FURTHER ORDERED that our authorization of TeleMedia to provide private lines as part of its authorized services is limited to the provision of such private lines only between the United States and the authorized countries -- that is, private lines which originate in the United States and terminate in one of the authorized countries, or which originate in one of the authorized countries and terminate in the United States. In addition, TeleMedia may not -- and TeleMedia's 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. 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 destination country affords resale opportunities equivalent to those available under U.S. law, in accordance with Foreign Carrier Entry Order, 11 FCC Rcd 3873 (1995). The limitations in this paragraph are subject to the exceptions contained in Sections 63.01(k)(6)(i) and 63.17 of the Commission's Rules, 47 C.F.R. 63.01(k)(6)(i) and 63.17. See also Cable & Wireless, et al., 11 FCC Rcd 1766 (1996), para. 36. 7. 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. 8. 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. 9. 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. Section 43.61. 10. IT IS FURTHER ORDERED that the applicant shall file annual circuit reports in accordance with the requirements set forth in Rules for Filing of International Circuit Status Reports, CC Docket No. 93-157, Report and Order, 10 FCC Rcd 8605 (1995). 11. 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)). FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau