PUBLIC NOTICEReport IN 98-6                  INTERNATIONAL ACTIONFebruary 9, 1998

                USE OF INTERNATIONAL PRIVATE LINES AUTHORIZED
                 FOR THE PROVISION OF SWITCHED BASIC SERVICE
                   BETWEEN THE UNITED STATES AND AUSTRALIA

     Effective today, U.S. carriers with global resale authority pursuant to Section 63.18(e)(2), may
use their authorized facilities-based or resold international private lines for the provision of switched
basic service between the United States and Australia.  Under the Commission's Foreign Participation
Order, new rules are now in effect for carriers that want to provide switched basic service over
international private lines interconnected to the public switched network.  The new rules provide that
duly authorized carriers may use interconnected international private lines for the provision of switched
basic service between the United States and a World Trade Organization (WTO) Member country if the
Commission determines either that: (1) the country at the foreign end of the private line provides
equivalent resale opportunities; or (2) settlement rates for at least 50 percent of the settled U.S.-billed
traffic between the United States and that country are at or below the benchmark settlement rate adopted
for that country in the Commission's Benchmarks Order.  Thus, in circumstances where the country at
the foreign end of the private line is a WTO Member, the new rules eliminate the requirement that
carriers must demonstrate both that: (1) the country provides equivalent resale opportunities; and (2)
settlement rates for at least 50 percent of the settled U.S.-billed traffic between the United States and
that country are at or below the benchmark settlement rate adopted for that country in the Commission's
Benchmarks Order.


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     On December 17, 1997, the International Bureau found, among other things, that equivalent
resale opportunities exist in Australia for U.S.-based carriers.   No party demonstrated, however, that at
least 50 percent of the settled U.S.-billed traffic between the United States and Australia is at or below
the benchmark settlement rate of $0.15.  Thus, under the Commission's rules at the time of the
authorization, carriers could not provide switched basic service over interconnected international private
lines.  Under the new rules, however, U.S. carriers are authorized to provide switched services over
interconnected private lines between the United States and Australia.  To date, the Commission has also
allowed U.S. carriers with global resale authority to use their interconnected international private lines to
provide switched basic service between the United States and the United Kingdom, Canada, Sweden,
New Zealand, and The Netherlands.       
    
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     News Media contact:  Rosemary Kimball at (202) 418-0500.
     International Bureau contact:  Joanna Lowry at (202) 418-1465.