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  Before the
              Federal Communications Commission
                    Washington, D.C. 20554
 
 
 
 In the Matter of                     )  File No. FCN-NEW-20000114-00001    
 Telmex International, Inc.:         )
 Notification of Foreign Affiliation          )
 Pursuant to 47 C.F.R. Section 63.11(a)       )
                                      
 
                                    ORDER
 
 Adopted: February 28, 2000              Released: February 29, 2000
 
 
 By the Chief, International Bureau:
 
 
                       I.  INTRODUCTION
 
 1.     In this Order, we reclassify Telmex International, Inc. (Telmex USA) as a dominant carrier
 on the U.S.-Guatemala route because of its affiliation with Telecomunicaciones de Guatemala, S.A.
 (Telgua).  Telmex USA will be subject to the Commission's international dominant carrier regulations
 for service on the U.S.-Guatemala route, as set forth in Section 63.10 of the Commission's rules.
 
 2.     Telmex USA is a wholly-owned subsidiary of T‚lefonos de M‚xico, S.A. de C.V.
 (Telmex), the dominant foreign carrier in Mexico.  Telmex USA is authorized to provide global resale
 services pursuant to section 63.18(e)(2) of the Commission's rules.  On January 14, 2000, Telmex
 USA informed the Commission, pursuant to section 63.11(a) of the Commission's rules, of Telmex's
 proposed controlling investment in Telgua.  Telgua is presumed to possess market power in Guatemala,
 a WTO Member.  In the notification, Telmex USA stated that it would provide service on the U.S.-
 Guatemala route solely through the resale of an unaffiliated U.S. facilities-based carrier's international
 switched services.  Therefore Telmex USA, in its notification, requested that it continue to be regulated
 as non-dominant on the U.S.-Guatemala route, as permitted under section 63.10(a)(4) of the
 Commission's rules.  In response to the oppositions filed by other parties however, Telmex USA
 represented that it would willingly accept dominant carrier regulation on the U.S.-Guatemala route in
 order to assuage concerns raised in the pleadings.
 
 
                       II.  DISCUSSION
 
 3.     Under the rules adopted in the Foreign Participation Order, we regulate U.S. international
 carriers as "dominant" on routes where an affiliated foreign carrier has sufficient market power to affect
 competition adversely in the U.S. market.  A U.S. carrier is presumptively classified as non-dominant
 on an affiliated route if the authorized carrier demonstrates that its foreign affiliate lacks market
 power, or that the authorized carrier solely provides service through the resale of an unaffiliated U.S.
 facilities-based carrier's international switched services on the affiliated route.
 
 4.     Telmex USA does not assert that Telgua lacks market power in Guatemala; therefore, a
 lack of market power would not be the basis for retaining non-dominant classification on the U.S.-
 Guatemala route.  Although the provision of services on the U.S.-Guatemala route through the resale of
 unaffiliated U.S.-authorized carriers would in most circumstances be sufficient to apply a presumption
 of non-dominant carrier classification on the U.S.-Guatemala route, we find that there are concerns
 unique to this situation that overcome the presumption.  We have considered the arguments raised by
 other U.S. carriers of alleged anticompetitive practices occurring on the U.S.-Guatemala route along
 with the representation of Telmex USA in response to these allegations that it would not object to being
 classified as dominant on the U.S.-Guatemala route.  We find that it is more likely than not that
 imposing dominant carrier regulation on Telmex USA for this route may assist the Commission in
 monitoring and detecting potential violations on the U.S.-Guatemala route that may harm the U.S.
 international telecommunications market and U.S. consumers.  Therefore, we impose dominant carrier
 regulation pursuant to sections 63.11(e)(1) and 63.10 of the Commission's rules on Telmex USA for its
 provision of service on the U.S.-Guatemala route. 
 
 
                  III.ORDERING CLAUSES
                               
 4.     Accordingly, IT IS ORDERED, pursuant to Section 214 of the Act, 47 U.S.C. 214, and
 Sections 63.10 and 63.11(e)(1) of the Commission's rules, 47 C.F.R. 63.10 and 63.11(e)(1), that
 Telmex USA shall be regulated as a dominant carrier on the U.S.-Guatemala route and shall comply
 with the requirements of paragraph (c) of that section.
 
 5.     This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R. 0.261, and
 is effective upon release.  Petitions for reconsideration under Section 1.106 or applications for review
 under Section 1.115 of the Commission's rules, 47 C.F.R. 1.106, 1.115, may be filed within 30 days
 of the date of public notice of this order (see 47 C.F.R. 1.4(b)(2)).
 
 
 
 
                               FEDERAL COMMUNICATIONS COMMISSION
 
                               
                               
                               Donald Abelson
                               Chief, International Bureau