$//O&A, PanAmSat, Intl. Ext. of Lines, DA 94-1640//$ $/63.01 Contents of Applications/$ $/300.214 Extension of Lines/$ ///newjob/// $///DA 94-1640,1/20/95///$ DA 94-1640 Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) PANAMSAT CARRIER SERVICES, INC. ) ) Application for Authority Pursuant to ) Section 214 of the Communications Act, ) File No. I-T-C-93-236 as Amended, to Establish and Operate Channels ) of Communication Between the United States ) and the PAS-1 Satellite for the Provision of ) International Private Line and Public ) Switched Services To and From Overseas Points ) ORDER, AUTHORIZATION AND CERTIFICATE Adopted: December 23, 1994 Released: January 25, 1995 By the Chief, International Bureau: I. INTRODUCTION 1. The above-captioned application requests the Commission to authorize PanAmSat Carrier Services, Inc. ("PCSI") under Section 214 of the Communications Act of 1934, as amended, and Section 63.01 of the Commission's Rules, to establish and operate channels of communication between satellite earth stations in the United States and the PAS-1 satellite. PCSI requests authority to establish and operate up to one 512 kbps circuit to each international point listed in the Appendix for the provision of international private line services and public switched (voice and non-voice) services between these points and the United States. PCSI also requests authority to acquire and operate any necessary domestic connecting facilities. Based on our review of the application and the pleadings, we grant PCSI's request. II. BACKGROUND 2. PCSI is a wholly-owned subsidiary of PanAmSat L.P. ("PAS"), which owns and operates a U.S. private international satellite system. PAS's PAS-1 satellite serves the Atlantic Ocean Region. The Commission has authorized PAS to construct, launch and operate additional satellites that will comprise a global network. PAS provides its services on a private, non-common carrier basis. 3. PCSI's application was filed on June 23, 1993, and was placed on public notice on June 30, 1993. In response to the notice, Comsat filed a Petition to Deny. PCSI filed an Opposition to the Petition to Deny, to which Comsat replied. PCSI subsequently filed a Response to Comsat's Reply. 4. In its petition, Comsat states that PCSI's application is incomplete and insufficient because it does not adequately describe the proposed service and fails to identify the real parties-in-interest. Comsat argues that the application presents serious questions regarding PCSI's compliance with the alien ownership limitations in Section 310(b)(4) of the Communications Act. Comsat urges the Commission to request further information regarding the nature of PCSI's proposed service and the real parties-in-interest. In the absence of such facts, Comsat argues, the Commission should conclude that the foreign ownership in PCSI's parent company exceeds the limits of Section 310(b)(4) and the application should be denied. 5. In its opposition, PCSI states that Comsat's Petition to Deny should be dismissed summarily because it is based on the erroneous assumption that the foreign ownership restrictions contained in Section 310(b)(4) apply to Section 214 common carrier authorizations. PCSI notes that Section 310(b)(4) applies only to an award of a radio "license" and not to Section 214 "authorizations," as Comsat implies. In addition, PCSI states that the Commission's rules regarding Section 214 authorizations address foreign- carrier affiliation, not foreign ownership per se. PCSI certifies pursuant to Section 63.01 of the Commission's rules that is not affiliated with any foreign carriers. In addition, PCSI states that even if it were affiliated with a foreign carrier, it would not be precluded from holding a Section 214 authorization, but would only be subject to dominant carrier regulation. PCSI states that there are a number of foreign-held entities that have or have held Section 214 authorizations. 6. In response, Comsat states that PCSI misconstrues its arguments. Comsat states that an application for Section 214 authority implicates the Section 310(b)(4) foreign- ownership restrictions where the Title II services will be provided using the radio licenses of a foreign-controlled Section 214 applicant. Comsat appears to be concerned that PCSI intends to use its own common carrier earth stations. Comsat notes that PCSI has not specified who will own the earth stations necessary to provide this service. Comsat argues that if PCSI, a common carrier, plans to use its own earth station facilities to provide service, Section 310(b)(4) will be implicated as a result of the foreign ownership interests in its parent, PAS. Comsat also repeats its request for further information about how PCSI will provide service. 7. Responding to Comsat's concerns that PCSI will own its own earth stations, PCSI states that, consistent with Section 310(b)(4), it will not operate its own earth stations or otherwise hold or use any radio license to provide its common carrier services. Rather, it will obtain the necessary transmission facilities from third parties. PCSI states that Comsat's argument concerning the possible applicability of Section 310(b)(4) to services provided by common carriers holding radio station licenses is irrelevant. PCSI also notes that it could not become the licensee of a common carrier radio station without completing an FCC application for a common carrier radio license in which it would have to ask whether PCSI complies with Section 310(b)(4). III. DISCUSSION 8. As an initial matter, we find that PCSI has provided the information necessary to grant its Section 214 application. We disagree with Comsat's assertion that any additional information is necessary for the Commission to make its public interest finding pursuant to Section 214. PCSI has sufficiently described the services it seeks to provide. It has represented that it will use authorized common carrier earth stations, and will not itself own or operate any such earth stations. PCSI also has adequately identified itself as the real party-in-interest. Our Rules do not require any further information from the applicant or inquiry by the Commission. 9. We further find that there is no basis for concluding that Section 310(b)(4) is applicable to PCSI's application. Section 310(b) applies to common carrier radio licenses. PCSI's original application did request authority to provide services using any existing or future earth stations that are owned or leased by PCSI or its affiliates. As Comsat notes, if PCSI plans to use its own earth station facilities, Section 310(b)(4) will be implicated because of the foreign ownership of PCSI's parent. In its response of September 24, 1993, however, PCSI states that it will not operate its own earth stations or otherwise hold or use any radio license to provide its common carrier services. Rather, it will obtain the necessary transmission facilities from third parties. In any event, as PCSI correctly argues, the Commission's Rules require PCSI to seek specific Commission authorization to become a common carrier radio licensee. Given that PCSI has not sought a common carrier radio license, we find that Section 310(b)(4) is not applicable to PCSI's application. Comsat has therefore failed to demonstrate, as required by Section 63.52(c) of our rules, that a grant of PCSI's application would be prima facie inconsistent with the public interest, convenience and necessity. Accordingly, we deny Comsat's Petition. 10. Finally, we note that PCSI will be obtaining circuits directly from its parent, PAS. We emphasize, however, that any proposed circuit additions by PCSI on any non- common carrier satellite, including PAS-1, must be authorized by the Commission through the Section 214 application process. The Commission also retains sufficient authority to request any additional information from PCSI, including the cost and contractual terms and conditions governing the lease and operation of PAS-1 capacity for PCSI's common carrier services. 11. Upon consideration of the application and the pleadings filed in response thereto, we find that the grant of PCSI's application is in the public interest. Therefore, IT IS HEREBY CERTIFIED, pursuant to 47 U.S.C.  214, that the present and future public convenience and necessity require the provision of private line and public switched service by PCSI between the United States and the points listed in the Appendix via the PAS-1 satellite. 12. Accordingly, IT IS ORDERED that application File No. I-T-C-93-236 IS GRANTED and PanAmSat Carrier Services, Inc. (PCSI) is authorized to: a. establish and operate the satellite capacity specified in the Appendix between appropriately licensed U.S. earth stations and the PAS-1 satellite, connecting with similar circuits furnished by its correspondents between the satellite and the earth stations in countries listed in the Appendix; b. lease capacity in U.S. earth stations authorized to communicate with the PAS-1 satellite; c. lease and operate necessary connecting facilities in the United States; and d. use the facilities authorized herein for the provision of private line and public switched (voice and non-voice) services between the United States and the points specified in the Appendix, subject to any restrictions set forth in this order or any other Commission order. 13. IT IS FURTHER ORDERED that the applicant shall file with the Commission copies of any operating agreements entered into with its foreign correspondents within 30 days of their execution, and shall otherwise comply with the filing requirements contained in Section 43.51 of the Commission's Rules, 47 C.F.R.  43.51. 14. IT IS FURTHER ORDERED that the applicant shall file a tariff pursuant to Section 203 of the Communications Act, 47 U.S.C.  203 and Part 61 of the Commission's Rules, 47 C.F.R. Part 61, for the services authorized in this Order. 15. IT IS FURTHER ORDERED that the applicant shall file the annual reports of overseas telecommunications traffic required by Section 43.61 of the Commission's Rules, 47 C.F.R.  43.61. 16. IT IS FURTHER ORDERED that the number of circuits authorized herein for the provision of services via separate satellite systems is subject to limitations on the number of circuits specified under the separate systems policy and applicable consultations under Article XIV(d) of the INTELSAT Agreement. 17. IT IS FURTHER ORDERED that PCSI is authorized to provide to the countries listed in the Appendix only those services for which the Article XIV(d) consultation with INTELSAT has been completed. 18. IT IS FURTHER ORDERED that neither PCSI nor any persons or companies directly or indirectly controlling or controlled by PCSI, or under direct or indirect common control with it, shall acquire or enjoy any right, for the purposes of handling or interchanging traffic to or from the United States, its territories or possessions, which is denied to any other United States carrier by reason of any concession, contract, understanding, or working arrangement to which PCSI or any persons or companies controlling or controlled by PCSI are parties. 19. IT IS FURTHER ORDERED that our authorization of PCSI to provide private lines as part of its authorized services is limited to the provision of such private lines only between the United States and the countries listed in the Appendix -- that is, private lines which originate in the United States and terminate in one of the countries listed in the Appendix or which originate in one of the countries listed in the Appendix and terminate in the United States. In addition, PCSI may not -- and PCSI's tariff must state that its customers may not -- interconnect private lines provided over these facilities to the public switched network at either the U.S. or foreign end, or both, for the provision of international switched basic services, unless authorized to do so by the Commission upon a finding that the destination country affords resale opportunities equivalent to those available under U.S. law, in accordance with Regulation of International Accounting Rates, Phase II, First Report and Order, 7 FCC Rcd 559 (1991), Order on Reconsideration and Third Further Notice of Proposed Rulemaking, 7 FCC Rcd 7927 (1992), Petition for Reconsideration pending. 20. IT IS FURTHER ORDERED that the applicant shall file a separate Section 214 application for any circuits in addition to those herein authorized that it seeks to operate via PAS-1 or any other non-common carrier satellite or cable facility. 21. IT IS FURTHER ORDERED that the applicant is authorized to provide international services specified above using earth stations in the United States authorized to communicate with the above-mentioned satellite. Should the applicant wish to construct its own earth station facilities to provide these services, an appropriate application under Title III of the Communications Act will be required. 22. 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 Scott Blake Harris Chief, International Bureau APPENDIX PCSI is authorized to establish and operate on the PAS-1 satellite system up to one 512 kbps circuit for the provision of service between the United States and the countries listed below. Albania Jamaica Anguilla Kazakhstan Antigua Kyrgyzstan Argentina Latvia Armenia Lithuania ArubaLuxembourg Austria Mexico Azerbaijan Moldova Bahamas Monaco Barbados Montserrat Barbuda Netherlands Belarus Netherlands Antilles Belgium Nicaragua Belize Panama Bermuda Paraguay Bolivia Peru Brazil Poland British Virgin Islands Portugal Bulgaria Portugal-Canada Canada Romania Cayman Islands Russian Federation ChileSpain Colombia St. Christopher (St. Kitts) & Nevis Costa Rica St. Lucia Czechoslovakia St. Vincent & the Grenadines Denmark Suriname Dominica Sweden Dominican Republic Switzerland Ecuador Tajikistan Estonia Trinidad & Tobago France Turkmenistan Georgia Turks & Caicos Is. Germany Ukraine Greece United Kingdom Grenada Uruguay Guatemala Uzbekistan Guyana Venezuela HaitiYugoslavia Honduras Hungary Ireland Italy