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As an agency independent of Ministry control, we find that OPTA is sufficiently separate from the carriers it regulates, including PTT Telecom." >,l(l(,,"Ԍ S-ԙ25.` ` We are not persuaded by Esprit's argument that OPTA's powers are insufficient and find that Dutch regulatory policies are fair and transparent. OPTA has the power to order  S-interconnection and must do so within 20 weeks of a request.L?Є {O-ԍKPN Opposition at 10.L The proposed legislation which Esprit refers to codifies existing regulatory practice and adds minimal powers, such as the ability to publish  S4-interconnection agreements.@4ZЄ {O.-ԍId. at 12. Passage of the legislation is expected in February or March 1998. KPN Letter at 1. In addition to OPTA actions and powers, EU and Dutch competition  S-law constrains the ability of PTT Telecom to act anticompetitively.cAЄ {O -ԍ KPN Facilities Application at 1617.c Under EU law and, as of  S-January 1, 1998, Dutch law, PTT Telecom may not abuse a dominant position.CB~Є {O -ԍ Id. at 17.C We conclude that the powers of OPTA and general EU and Dutch competition law, taken together, are sufficient to create an effective regulatory environment to develop, implement and enforce legal requirements, interconnection agreements and other competitive safeguards.  S- ` ` 5. Other Issues Raised by Petitioners  Si -26.` ` Petitions to deny KPN's applications have cited other difficulties in the Netherlands' market that petitioners claim prevent U.S. carriers from enjoying effective competitive opportunities. Esprit argues that PTT Telecom is using its control over submarine cables to inhibit competition from  S -new entrants.lC Є {O-ԍEsprit Reply at 34; Esprit Further Reply at 8.l Viatel states that, while it can obtain capacity on a cable that lands in the Netherlands,  S -PTT Telecom is charging exorbitant rates for it.QD Є {O-ԍViatel Reply at 6., n. 11.Q Esprit and Viatel also argue that PTT Telecom discriminates in its provision of backhaul facilities, charging higher rates to new entrants and failing to  S7-provide needed capacity.~E74 Є {O -ԍId. at 7; Esprit Reply at 89; Esprit Further Reply at 45.~ Esprit states that U.S. carriers are disadvantaged because they do not have  S-equal access to subscribers in the Netherlands.JF Є {Oj-ԍEsprit Reply at 10.J Finally, Sprint argues that PTT Telecom's applications should be denied until PTT Telecom credits Sprint for its proportionate share of return  S-traffic for the third and fourth quarters of 1996.kGX Є {O -ԍSprint Reply at 3; Sprint Further Reply at 2. k  S8-27.` ` We are concerned that issues raised by petitioners evidence the advantages of incumbency and the difficulty of entering new markets. We do not believe, however, that they prevent us from concluding that effective competitive opportunities exist in the Netherlands for U.S. carriers. Given the presence of facilitiesbased competitors to PTT Telecom, there are alternative ways" G,l(l(,,B"  S-for U.S. carriers to obtain backhaul facilities.H"Є yOh-ԍXSee Merger of MCI Communications Corporation and British Telecommunications plc, GN Docket No.  {O0-96245, FCC 97302,  171(rel. Sept. 24, 1997) (BTMCI Order II) (concluding that ease of entry into the United Kingdom facilitiesbased international services market precluded BT/MCI from using its provision of U.K. backhaul to discriminate against rivals to the detriment of U.S. consumers).(# We also note that Esprit has informed the Commission that PTT Telecom and Esprit have reached a tentative arrangement to provide additional  S-submarine cable capcity.MIЄ {O-ԍXEsprit Letter.(#M Nonetheless, we will closely monitor PTT Telecom's practices in providing backhaul facilities. We continue to believe that swift implementation of equal access is necessary to eliminate the unfair competitive advantage of a former monopoly. The Commission, however, has previously concluded that the lack of equal access does not preclude a finding of ECO or  S-equivalency.JDЄ {O -ԍXBTMCI Order II at  293, citing ACC Global Corp. and Alanna, Inc., 9 FCC Rcd 6240, 6263 (1994)  {O| -and fONOROLA, 7 FCC Rcd 7312, 7315, n. 32 (1992). (# Finally, we understand that PTT Telecom and Sprint have resolved their accounting  S-rate dispute.OKЄ {O-ԍXKPN Letter at 1.(#O In sum, we find that the Netherlands offers U.S.based carriers effective competitive opportunities at this time for the types of services at issue in the pending applications.  S- B.` ` ADDITIONAL PUBLIC INTEREST FACTORS  S -28.` ` The additional public interest factors that we consider in assessing these applications include costbased accounting rates, the general significance of the proposed entry to the promotion of competition in the U.S. communications market, and any national security, law enforcement, foreign  S -policy and trade concerns raised by the Executive Branch.  S -29.` ` AT&T opposes KPN's entrance in the U.S. service market through any arrangement  Sj-unless KPN is subject to the safeguards adopted in the Foreign Participation Order and PTT Telecom  S8-provides U.S. carriers with costbased accounting rates.GL82 Є {O -ԍAT&T Reply at 8.G   S-30.` ` We agree with AT&T that KPN, like any other carrier, will be subject to the rules and  S-policies established in the Foreign Participation Order and Benchmarks Order.M Є {O-ԍXInternational Settlement Rates, Report and Order, IB Docket No. 96261, FCC 97280 (rel. Aug. 18,  {O-1997) (Benchmarks Order).(# In our discussion of  Sm-the regulatory treatment of KPN, we note that the conditions adopted in the Foreign Participation  S;-Order for dominant carriers will apply to KPN when they are effective.RN; Є {O"-ԍSee infra at Section III.C.R We do not agree, however,  S -that PTT Telecom must adopt settlement rates below those required in the Benchmarks Order as a  S-condition of grant of its applications. In that Order, we concluded that AT&T's proposals to require costbased interconnection as a condition to the provision of facilitiesbased service or ISR would be an overreaction to the potential for anticompetitive activity and that our authority to take enforcement"r N,l(l(,,"  S-action would provide a strong deterrent to such activity.kOЄ {Oh-ԍXBenchmarks Order at  222, 248.(#k  S-31.` ` In the Benchmarks Order, the Commission established benchmarks that will govern the  Sh-international settlement rates PhZЄ yOb-ԍXThe settlement rate refers to each carrier's portion of the accounting rate. In almost all cases, the settlement rate is equal to onehalf of the negotiated accounting rate. At settlement, each carrier nets the minutes of service it billed against the minutes the other carrier billed. The carrier that billed more minutes of service pays the other carrier a net settlement payment calculated by multiplying the settlement rate by the number of imbalanced minutes.(#  between U.S. carriers and foreign carriers. The Commission also adopted conditions that apply to authorizations to provide facilitiesbased services and ISR. With respect to the provision of facilitiesbased switched or private line services, the settlement rate of the applicant's foreign affiliate must be at or below the relevant benchmark on the affiliated route at the  S-time service is commenced.Q Є {OF-ԍXBenchmarks Order at  231. The Commission reaffirmed this condition in the Foreign Participation  {O-Order at  211.(# In order to provide ISR, the Benchmarks Order requires that settlement rates for 50 percent of the settled U.S.billed traffic between the United States and that country are at  S7-or below the benchmark.R7f Є {O=-ԍXBenchmarks Order at  25859. We note that carriers providing service to an equivalent country are not required to comply with this condition.(# The Benchmarks Order set a settlement rate of U.S. $0.15 per minute with  S-the Netherlands.TS Є {Oe-ԍBenchmarks Order at  120.T PTT Telecom's settlement rate is U.S. $0.13 per minute as of January 1, 1998 and  S-will drop to U.S. $0.115 per minute on July 1, 1998.MTR Є {O-ԍKPN Opposition  at 18.M Thus, both the condition for facilitiesbased service to an affiliate and the benchmark target for ISR have been met.  Sl -  S9 - 32.` ` Finally, the Executive Branch has not raised any national security, law enforcement, foreign policy, or trade concerns with these applications. We find that this authorization will benefit U.S. consumers calling the Netherlands by adding an additional carrier, and thus increasing competition on that route. Accordingly, we find no additional public interest factors that warrant denial of these applications.  S- C.` ` OTHER MATTERS (#`  S-` ` 1. Competitive Safeguards (#`  S;- 33.` ` KPN has agreed to be regulated as a dominant carrier.U;Є {O#-ԍXKPN Facilities Application at 5; KPN IPL Application at 5. KPN, however, in its Opposition to Petitions to Deny, states that it seeks nondominant regulatory treatment for its provision of resold  {OQ%-switched services, citing 47 C.F.R. 63.10(a)(4). KPN Opposition Ġat 1516. Section 63.10(a)(4) is applicable when a carrier is seeking to provide service "solely through the resale of an unaffiliated U.S. facilitiesbased carrier's international switched services." That is not the case for KPN, which seeks to"&T,l(l('" provide facilitiesbased, as well as resale services. As a result, Section 63.10(a)(4) does not apply. (# Petitioners argue that the"; XU,l(l(,,r" Commission should impose on KPN and PTT Telecom, in addition to the conditions imposed on dominant carriers, a number of other conditions. These include requiring PTT Telecom to provide reasonable, nondiscriminatory, costoriented interconnection arrangements promptly to competitors and publish its actual interconnection rates, terms and conditions with other carriers. Petitioners also request that the Commission: 1) require KPN to file regular reports regarding Dutch progress in implementing telecommunications reform, specifically reports on the status of all interconnection agreements between PTT Telecom and its competitors; 2) prohibit KPN from purchasing capacity of any cable serving the Netherlands unless similar amounts of capacity are also made available to competing unaffiliated carriers; 3) prohibit KPN from terminating NetherlandsU.S. traffic from PTT Telecom that is not in compliance with the European Union equal access requirements; and 4) require KPN to file quarterly records on provisioning and maintenance of facilities and services received from  S-PTT Telecom and Unisource.dVXЄ {O -ԍViatel Reply at 8; Esprit Reply at 34.d Esprit argues that its proposed conditions are derived from conditions placed on the initial authorization of British Telecommunications plc to acquire an ownership interest  Si -in MCI and on the authorization of France Telecom and Deutsche Telekom's investment in Sprint.yW^i Є {O-ЍXEsprit Reply at 10 (citing MCI Communications Corp. and British Telecommunications plc, Declaratory  {O-Ruling and Order, 9 FCC Rcd 3960, 396768 (1994) (BT/MCI I) and Sprint Corp., 11 FCC Rcd 1850,  {O-187071 (1996) (Sprint Order)).(#y Sprint asks the Commission to impose a number of conditions on PTT Telecom relating to settlement  S -of traffic terminating in the Netherlands.IX Є {O-ԍSprint Reply at 5.I  S -!34.` ` As a dominant carrier on the U.S.Netherlands route, KPN will be required to comply  Sj-with Section 63.10 of our rules.SYjЄ {O-ԍXSee 47 C.F.R. 63.10.(#S Section 63.10 requires carriers regulated as dominant on a particular route due to a foreign carrier affiliation to: 1) file tariffs on no less than 14days notice; 2) maintain complete records of the provisioning and maintenance of basic network facilities and services procured  S-from the foreign carrier affiliate;uZZ4 Є yO-ԍXThe recordkeeping requirement for basic network facilities and services includes those facilities and services that the dominant carrier procures on behalf of customers of joint ventures for the provision of  {O5-U.S. basic or enhanced services. Foreign Carrier Entry Order, 11 FCC Rcd at 3975.(#u 3) obtain Commission approval pursuant to  63.18 before adding or discontinuing circuits; and 4) file quarterly reports of revenue, number of messages, and number of  Sk-minutes of both originating and terminating traffic.S[kV Є yOa!-ԍX47 C.F.R.  63.10(c). (#S We note, however, that upon the effective date  S8-of the Foreign Participation Order, dominant carriers will be subject to revised rules. At that time, KPN will be required to: 1) file tariffs one day in advance of effectiveness; 2) maintain a limited form of structural separation between it and PTT Telecom; 3) file quarterly reports of revenue, number of messages, and number of minutes of both originating and terminating traffic; 4) file quarterly reports on provisioning and maintenance services provided by PTT Telecom; and 5) file quarterly"m[,l(l(,,"  S-circuit status reports._\Є {Oh-ԍForeign Participation Order at  222._ In addition, as a carrier affiliated with a foreign carrier that possesses market power in the foreign market, KPN will have to comply with certain reporting requirements regarding  S-provision of switched resale services in the United States when the rule becomes effective.G]ZЄ {O-ԍId. at  197.G  S4-"35.` ` We imposed conditions relating to interconnection on Telecom New Zealand because  S-we had certain concerns with New Zealand's regulatory regime.5^ZЄ {O -ԍXSee TNZL Order at  18, 20, and 21 (New Zealand does not have standard rates for toll interconnection or a pricing methodology for interconnection rates; government does not play very direct role in overseeing interconnection arrangments).(#5 In BT/MCI I, we found that "unique  S-aspects of the transaction" required additional reporting requirements._Є {O} -ԍXBT/MCI I, 9 FCC Rcd at 3967, 3968 (Transaction unique because of parties involved and the their intention to form a joint venture).(# In the Sprint Order, we found  S-that effective competitive opportunities did not yet exist in France or Germany and therefore the  Sj-Commission required additional conditions.i`jh Є {Or-ԍXSprint Order, 11 FCC Rcd at 1857. (#i None of these specific concerns apply here. KPN is a  S7-new entrant in the U.S. market, and we have determined that effective competitive opportunities currently exist in the Netherlands. Accordingly, we find that our current rules are sufficient to address the concerns of Esprit and Viatel. Because Sprint and PTT Telecom have resolved their  S -accounting rate dispute,Oa Є {O8-ԍXKPN Letter at 1.(#O the conditions requested by Sprint are not necessary.  S8 -X` ` 2. No Special Concessions (#  S -#36.` ` Esprit argues that the Commission should also impose a requirement that KPN accept  S -no special concessions from PTT Telecom.yb Є {O-ԍXEsprit Reply at 3; Esprit Further Reply at 10.(#y We currently prohibit all U.S. carriers, regardless of their regulatory status or whether they have a foreign affiliate, from agreeing to accept special  S9-concessions from any foreign carrier or administration.c"9Є {O-ԍXSee 47 C.F.R.  63.14. The Commission's rules define "special concessions" as "any arrangement that affects traffic or revenue flows to or from the United States that is offered exclusively by a foreign carrier or administration to a particular U.S. international carrier and not also to similarly situated U.S. international carriers authorized to serve a particular route." 47 C.F.R.  63.18(i)(1).(# We also note that in the Foreign  S-Participation Order, the Commission gives greater specificity to the "No Special Concessions" rule by  S-delineating the types of prohibited conduct.kdЄ {O}$-ԍForeign Participation Order at  165 .k KPN will be subject to our current "No Special Concessions" rule, as well as any modification to that rule once it becomes effective.  S<-0 IV. CONCLUSION"<d,l(l(,,"Ԍ S-ԙ $37.` ` Because we find that the Netherlands offers equivalent private line resale opportunities to U.S.based carriers for the provision of switched services, as well as effective competitive opportunities to provide facilitiesbased service and other resale services, we grant the applications before us in this proceeding. We conclude that the availability of additional services between the United States and the Netherlands will promote competition and the introduction of new international telecommunications services.  S-  S-V. ORDERING CLAUSES ă  S5-%38.` ` In view of the foregoing, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require grant of these applications.  S -&39.` ` Accordingly, IT IS HEREBY ORDERED that File Nos. ITC97382 and ITC97383 ARE GRANTED and KPN US, Inc. is authorized to: Xa) acquire and operate 3 STM1s for the provision of switched, private line and other authorized services between the United States and the Netherlands;(# Xb) resell international private lines interconnected to the public switched network for the provision of switched services, including voice, date and facsimile; (# Xc) resell international private lines not interconnected to the public switched network for the provision of international private line services between the United States and the Netherlands; and (# Xd) provide international switched resale services between the United States and the Netherlands.(#  Sl-'40.` ` IT IS FURTHER ORDERED that the authority granted herein to resell international private lines between the United States and the Netherlands for the provision of switched services is limited to the provision of such services between the United States and the Netherlands only that is, private lines which carry traffic that originates in the United States and terminates in the Netherlands, or traffic that originates in the Netherlands and terminates in the United States. This restriction is subject to the following exceptions: (a) KPN may engage in "switched hubbing" through the  S:-Netherlands consistent with Section 63.17 of the Commissions rules, 47 C.F.R.  63.17; and (b) KPN may provide U.S. inbound or outbound switched basic service over its authorized private lines extending between the United States and the United Kingdom, Sweden, New Zealand, and Australia provided that KPN also is authorized to provide switched basic service using resold private lines  Sn-between the United States and those countries.  S - (41.55` ` 87DOMIT IS FURTHER ORDERED that KPN will be regulated as a dominant carrier on the U.S.Netherlands route, pursuant to Section 214 of the Act, 47 U.S.C.  214, and Section 63.10 of the Commission's rules, 47 C.F.R.  63.10, and will comply with the requirements of paragraph (c) of that section. The quarterly traffic reports filed pursuant to Section 63.10(c) must include the information required by Section 43.61 of the Commission's rules, 47 C.F.R.  43.61, for "facilities resale" on the U.S.Netherlands route.  S%-)42.` ` IT IS FURTHER ORDERED that KPN will comply with Sections 63.21 of the Commission's rules, 47 C.F.R.  63.21 and shall also file the information required by Section 43.61 for "facilities resale" on the U.S.Netherlands route on a semiannual basis not later than September 30"='d,l(l(,,+" for the prior January through June period and March 31 for the second sixmonth calendar period, for the first three calendar years after this equivalency finding.  Sg-*43.` ` IT IS FURTHER ORDERED that grant of these authorizations are conditioned upon the Netherlands' continuing to afford resale opportunities to U.S.based carriers equivalent to those afforded under U.S. law.  S- +44.` ` This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R.  0.261 (1996), and is effective upon adoption. Petitions for reconsideration under Section 1.106 of the Commission's rules, 47 C.F.R.  1.106 (1996), or applications for review under Section 1.115 of the Commission's rules, 47 C.F.R.  1.115 (1996), may be filed within 30 days of the date of public notice of this Order, Authorization and Certificate (see 47 C.F.R.  1.4(b)(2)).  Si - ` `  hh,FEDERAL COMMUNICATIONS COMMISSION  S - ` `  hh,Regina M. Keeney ` `  hh,Chief, International Bureau