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


In the Matter of                )
                                )
Hong Kong Telecommunications    )       File No. ITC-98-196
(Pacific) Limited               )
                                )
Application for authority pursuant to)
Section 214 of the Communications Act)
of 1934, as amended to resell   )
international private lines for the  )
provision of non-telephonic services )
between the U.S. and Hong Kong  )
                                 

                    ORDER ON RECONSIDERATION


        Adopted:  July 27, 1999         Released:  July 28, 1999  

By the Chief, International Bureau:

     1.   On October 14, 1998, the International Bureau (Bureau), acting on delegated authority,
and pursuant to Section 214 of the Communications Act of 1934, as amended (Act), and Section
63.18(e)(3) of the Commission's rules, granted Hong Kong Telecommunications (Pacific) Ltd. (HKTP)
authority to resell international private lines interconnected to the public switched network for the provision
of switched data and fax services between the United States and Hong Kong.  On November 13, 1998,
AT&T Corp. (AT&T) filed a Petition for Reconsideration of that order.  HKTP filed an opposition to
AT&T's petition, and AT&T responded.  AT&T argues in its petition that the Bureau should reconsider
its decision to grant HKTP authority to resell international private lines interconnected to the public
switched network for the provision of switched data and fax services between the United States and Hong
Kong because Hong Kong does not offer resale opportunities equivalent to those available under U.S.
law.Because we find it is now moot, we deny AT&T's petition.

     2.   The Commission will grant authority to resell international private lines for the provision
of switched services (also known as international simple resale, or ISR) between the United States and a
World Trade Organization (WTO) Member market when it finds either (a) that settlement rates for at least
50 percent of the settled U.S.-billed traffic on the route are at or below the benchmark settlement rate, or
(b) that the foreign market affords resale opportunities equivalent to those available under U.S. law (also
known as the equivalency test).  Hong Kong is a member of the WTO.

     3.   In the October Order, the Commission granted HKTP's application to provide ISR for
switched data and fax service only, based on its finding that Hong Kong offers equivalent opportunities to
resell private lines for the provision of those services only.  

     4.   On December 31, 1998, the International Bureau's Telecommunications Division, acting
on delegated authority, granted HKTP and AT&T authority to resell international private lines
interconnected to the public switched network for the provision of all switched services between the United
States and Hong Kong.  In the December Order, the Commission granted HKTP and AT&T authority to
provide ISR for all switched services (including switched data and fax services) based on its finding that
settlement rates for at least 50 percent of the settled U.S.-billed traffic on the U.S.-Hong Kong route are at
or below the benchmark settlement rate.  

     5.   AT&T does not dispute our finding in the December Order that Hong Kong meets the
settlement rate criteria for authorizing ISR.  Indeed, AT&T supports authorization of ISR on the U.S.-
Hong Kong route.  Rather, AT&T objects to our finding in the October Order that the equivalency test is
met by Hong Kong for data and fax services.  We find, however, that the issue of whether Hong Kong
satisfies the equivalency test is now moot in light of our approval of the applications of AT&T and HKTP
for full ISR in the December Order based on Hong Kong's membership in the WTO and the fact that
settlement rates for more than 50 percent of the U.S.-billed traffic on the U.S.-Hong Kong route are at or
below the benchmark settlement rate.

     6.   Accordingly, IT IS HEREBY ORDERED, pursuant to section 1.106(a) of the
Commission's rules, 47 C.F.R.  1.106(a), that the November 13, 1998 Petition for Reconsideration, filed
by AT&T Corp. IS DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION



                              Donald Abelson
                              Chief, International Bureau