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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) MCI TELECOMMUNICATIONS CORPORATION ) ) Application for authority, pursuant to Section 214 of ) File No. ITC-214-19990322-00171 the Communications Act of 1934, as amended, to ) provide switched services using international private ) lines interconnected with the public switched network ) at one or both ends between the United States and ) Spain ) ORDER AND AUTHORIZATION Adopted: May 13, 1999 Released: May 17, 1999 By the Chief, Telecommunications Division: I. INTRODUCTION 1. With this order, we add Spain to the list of countries for which U.S. carriers may provide switched, basic telecommunications services over their authorized international private lines ("ISR"). We find that U.S. carriers' settlement rate for Spain is at or below the Commission's benchmark settlement rate. We therefore conclude that the public interest in cost-based telecommunications services would be served by permitting the above-referenced applicant, and other authorized private line carriers, to interconnect their private lines between the United States and Spain, a World Trade Organization Member country, for the provision of switched, basic services. Our action today will permit U.S. carriers to route traffic between the United States and Spain outside the traditional settlements system, enabling them to offer U.S. international service at reduced rates. We expect that such activity will, in turn, exert increased pressure to lower settlement rates further and reduce consumer prices. II. BACKGROUND 2. MCI Telecommunications Incorporation (MCI) filed an application requesting Section 214 authority to provide switched, basic telecommunications services using their authorized international private lines between the United States and Spain. We placed MCI's application on public notice, and no party opposed it or submitted comments. III. DISCUSSION 3. MCI is an authorized facilities-based private line carrier on the route covered by its application. MCI certifies that it is not affiliated with any other foreign carrier in Spain. Spain is a Member of the World Trade Organization ("WTO"). In these circumstances, Section 63.18(e)(4) of the Commission's rules permits MCI to use its authorized private lines for the provision of switched services between the United States and Spain subject to the condition that the settlement rate for at least 50 percent of the settled U.S.-billed traffic between the United States and Spain is at or below the benchmark settlement rate adopted in the Benchmarks Order. MCI submitted information in its application to demonstrate that Spain satisfies the benchmark condition for ISR. 4. The Commission's benchmark settlement rate for Spain is 15 cents. Currently, U.S. carriers' settlement rate for Spain is approximately 13.6 cents or 0.10 SDR. Thus, we find that the settlement rate for Spain is at or below the relevant benchmark settlement rate and that Spain satisfies the benchmark condition for ISR. Accordingly, we grant MCI's application and authorize it to provide switched services using its international private lines between the United States and Spain. We will also add Spain to the list of countries for which U.S. carriers may provide switched services over their authorized facilities-based or resold private lines. IV. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED that the application of MCI , File No. ITC-214- 19990322-00171 IS GRANTED, and MCI is authorized to provide switched, basic telecommunications services using their authorized international private lines interconnected to the public switched network at one or both ends between the United States and Spain. 6. IT IS FURTHER ORDERED that the authority granted herein to provide switched, basic telecommunications services using international private lines between the United States and Spain for the provision of switched services is limited to the provision of such services between the United States and Spain. This restriction is subject to the following exceptions: (a) the applicants may engage in "switched hubbing" through the countries for which they are authorized herein consistent with Section 63.17 of the Commission's Rules, 47 C.F.R.  63.17; and (b) the applicants may provide U.S. inbound or outbound switched, basic services over their authorized private lines extending between the United States and Spain, as well as the United Kingdom, Sweden, New Zealand, Australia, the Netherlands, Luxembourg, Norway, Denmark, France, Germany, Belgium, Austria, Switzerland, Japan, Italy, Ireland. Hong Kong and Iceland, provided the applicants are authorized to provide switched services over private lines between the United States and those countries. 7. IT IS FURTHER ORDERED that applicant shall comply with Section 63.21 of the Commission's Rules, 47 C.F.R. 63.21. 8. 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