Before the
                Federal Communications Commission
                      Washington, D.C. 20554


In the Matter of
                                   )
IMPSAT USA, INC.                   )
                                   )
Petition for Modification of Authorization and    )    File No. ISP-PDR-19980715-00010
Certificate to Remove Settlement Rate        )
Condition for Provision of Facilities-based Services   )
between the United States and Italy               )


                             ORDER


   Adopted:   March 1, 1999                       Released:  March 3, 1999


By the Chief, Telecommunications Division:

          1.   The above-captioned petition filed by IMPSAT USA, Inc. (IMPSAT) requests
that the Commission remove the settlement rate condition from its authorization, pursuant to Section 214
of the Communications Act of 1934, to provide facilities-based services between the United States and
Italy.  This petition was placed on public notice on November 4, 1998.  No comments were received.

          2.    At the time of the International Bureau's order granting IMPSAT's
authorization, Societa Finanziaria Telefonica PA (STET), Italy's incumbent provider of
telecommunications, held a 25 percent ownership interest in IMPSAT.  The Bureau's order required that
IMPSAT maintain with STET a settlement rate that is within the Commission's current and future
benchmark settlement rates for the U.S.-Italy route.  The Bureau imposed the condition because of the
concern that STET could use the subsidy embedded in Italy's above-cost settlement rate to subsidize the
operations of IMPSAT on the U.S.-Italy route.  In its petition to modify its Section 214 authorization,
IMPSAT states that STET no longer holds any interest in IMPSAT.  Therefore, IMPSAT requests that
the settlement rate condition be removed.   We agree that, because STET no longer has an ownership
interest in IMPSAT, the predicate for the condition no longer exists and IMPSAT should be permitted to
provide service on the U.S.-Italy route on the same basis as other carriers.  We also note that STET's
settlement rate with U.S. carriers is below the current relevant benchmark rate adopted in the
Commission's Benchmarks Order.     
               
          3.   Upon consideration of the petition and in view of the foregoing, we conclude
that removal of the condition requested by IMPSAT will  serve the public interest, convenience and
necessity.

          4.   Accordingly, IT IS ORDERED that the petition, File No. ISP-PDR-19980715-
00010 IS GRANTED, and the settlement rate condition in paragraph 24 of the Bureau's Order cited
above is hereby removed.

          5.   IT IS FURTHER ORDERED that all other terms and conditions of the Bureau's
Order remain the same.

          7.    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 public notice
of this Order (see Section 1.4(b)(2)).


               FEDERAL COMMUNICATIONS COMMISSION



               Rebecca Arbogast
               Chief, Telecommunications Division
               International Bureau