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INTRODUCTION & EXECUTIVE SUMMARY ă   X*1. On April 9, 1996, Globe Wireless, Inc. (Globe) filed applications seeking Commission approval for transfer of the licenses for Stations KPH and WCC, Bolinas, California, and South Chatham, Massachusetts, respectively, in the Maritime Radio Services,  X*from their current licensee, Western Union International, Inc. (Western Union), to Globe.oXD yO *#X\  P6G;P#э Globe Applications for Land Radio Station Authorization in the Maritime Services (FCC Form 503) (filed  yO*April 9, 1996) (File Nos. 878286, 878287), and Western Union Application for Assignment of Authorizations (FCC Form 1046) (filed April 9, 1996).o On  X|*May 17, 1996, the public was given notice that these applications were filed.|D yO*#X\  P6G;P#э Public Notice No. 1848, released May 17, 1996. On June 4,  Xe*1996, Teamsters Local Union No. 9 (Teamsters)XZexD yO!*#X\  P6G;P#э Teamsters Local Union No. 9 is affiliated with the International Brotherhood of Teamsters. In the  {OV"*pleadings, Teamsters Local Union No. 9 is sometimes referred to as Teamsters Local 856. See Globe Opposition (filed July 22, 1996), at 1.X filed a Petition to Deny assignment of the subject licenses essentially alleging that transfer of these licenses to Globe would impair  X7*competition in the maritime communications industry.7D yO&*#X\  P6G;P#э Teamsters Petition to Deny (filed June 4, 1996), at 1. Additionally, Further Comments (Teamsters Comments) were filed by the Teamsters on June 24, 1996. In response, Globe and Western"7 0*o(o(qq*"  X*Union filed Oppositions on July 22, 1996.p yOy*#X\  P6G;P#э Opposition filed by Globe (Globe Opposition) on July 22, 1996, and Opposition filed by Western Union (Western Union Opposition) on July 22, 1996. Because the Teamsters failed to serve a copy of the Petition to Deny on Globe, the comment period for responses to the Petition at the request of Kenneth C. Howard, Jr.  {O*(Globe's counsel) was extended to July 22, 1996. See Letter from Robert H. McNamara, Chief, Private Wireless Division, Wireless Telecommunications Bureau, Federal Communications Commission, to Kenneth C. Howard, Jr., Baker & Hostetler (June 26, 1996).  A Reply to Opposition to Petition to Deny  X*(Teamsters Reply) was filed by the Teamsters on August 9, 1996. Bp yO*#X\  P6G;P##X\  P6G;P#э Thereafter, the following documents also were filed: Globe Declaration (filed September 9, 1996) in response to the Teamsters Reply; Teamsters Reply to Declaration (filed October 1, 1996) (Declaration Reply); Mobile Marine Radio, Inc. Comments (filed June 13, 1996) (MMR Comments); HAL Communications Corporation Comments (filed June 18, 1996) (HAL Comments). For the reasons discussed  X*below,Z* p yO *#X\  P6G;P#э All pleadings filed by the parties, even those not contemplated by Section 1.962(h) of the Commission's rules, 47 C.F.R.  1.962(h), will be considered on their merits, in the interests of compiling a full and complete  {O=*record and because no party will be prejudiced as a result. See 47 U.S.C.  154(j). the Teamsters' Petition to Deny is denied. We will grant the applications filed by Globe, and permit transfer of the licenses of Marine Coastal Stations KPH and WCC from Western Union to Globe.  X_*f' II. BACKGROUND ă  X1*2.  Public coast stations have been in existence for approximately 100 years.1L p {O.*#X\  P6G;P#э  See Amendment of the Commission's Rules Concerning Maritime Communications, PR Docket No.  {O*92257, First Report and Order, 10 FCC Rcd 8419, 8430 (1995).  Currently, high seas public coast stations are governed by Subpart J of Part 80 of the  X *Commission's Rules.x  p {O\*#X\  P6G;P#э See 47 C.F.R. Part 80, Subpart J.x These stations provide a variety of voice and data telecommunications services, consisting of radiotelephone, radiotelegraph, narrowband directprinting, and facsimile, and are capable of serving vessels thousands of miles away. High seas public coast station frequencies are allocated internationally and distributed among eleven frequency  X *bands.   :p yO *#X\  P6G;P#э Frequencies in the following bands are available for assignment to public coast stations serving vessels on the high seas: 100160 kHz (LF); 405525 kHz, 2,0003,000 kHz (MF); 4,0005,000 kHz, 6,0007,000 kHz, 8,0009,000 kHz, 12,00013,000 kHz, 16,00017,000 kHz, 18,00020,000 kHz, 22,00023,000 kHz and 25,00028,000 kHz (HF).  These frequencies are assigned for exclusive use based on the type of radio" " 0*&&qqF"  X*communication services the station intends to provide. Under current rules, \p yOy*#X\  P6G;P##X\  P6G;P#э The Commission is considering increased flexibility in the assignment of marine public correspondence  {OA*frequencies. See Amendment of the Commission's Rules Concerning Maritime Communications, PR Docket No.  {O *92257, Further Notice of Proposed Rule Making, 10 FCC Rcd 5725, 5729 (1995).  a high seas public coast station may initially be assigned one channel in each of the applicable frequency  X*bands. p yOo*#X\  P6G;P#э In the case of MF and HF radiotelegraph, HF radiotelephone, and HF narrowband directprinting frequencies, a station only may be assigned additional frequencies in each band if the applicant provides proof of  {O*channel loading. See 47 C.F.R.  80.357(b)(2)(ii)(B), 80.361(a)(2), 80.371(b), and 80.374(a)(2). However, an applicant does not have to provide a showing of channel loading in order to obtain additional MF radiotelephone,  {O *MF and HF radiotelephone (Mississippi River use) frequencies, or MF and HF facsimile frequencies. See 47 C.F.R.  80.371(a) and (d).  Stations KPH and WCC currently are licensed as high seas public coast stations to  X*Western Union and are authorized to use a total of fortysix (46) and fortyfive (45) frequencies, respectively, in the eleven frequency bands allocated for use by public coast  X*stations serving vessels on the high seas.e h p {O*#X\  P6G;P#э Supra note 9. e Station KPH is manned; Station WCC is operated remotely from the KPH location. Together, they employ either 24 or 25 individuals (the  X_*figure is in dispute).yX_ p yO *#X\  P6G;P#э The Teamsters state they represent 25 employees at these stations. Petition to Deny at 1. Western Union states it has 24 employees at these stations. Western Union Opposition at 2. This difference in numbers is not material to a resolution of the issues raised in this case.y The two stations jointly serve 400 customers, and provide  XH*radiotelegraph services to vessels and monitor a distress frequency on 500 kHz.uHp yO*#X\  P6G;P#э Western Union Opposition at 2.u Globe seeks transfer of these licenses from Western Union to itself. Presently, Globe is the licensee  X *of Stations KFS, WNU, and KEJ at Palo Alto, California, Pearl River, Louisiana, and  X *Kahalelani, Hawaii, respectively.g p yO^*#X\  P6G;P#э Globe Opposition at 2.g  X * l ă  X *3. Petition to Deny. The Teamsters, representing employees of Stations KPH and WCC, oppose transfer of these stations from Western Union to Globe, contending that closure  X *of the facilities will result from such a transfer.s :p yO *#X\  P6G;P#э Petition to Deny at 1.s They allege that this, in turn, will force the maritime community to use the allegedly unreliable Global Maritime Distress Safety System  X{*(GMDSS).|{p {O#*#X\  P6G;P#э Id. at 46; Teamsters Reply at 45. | The Teamsters argue that because there are no adequate substitute facilities of"{\0*&&qqv"  X*equal capabilities, closure of the facilities will seriously inconvenience the public.op yOy*#X\  P6G;P#э Petition to Deny at 6. o The Teamsters further argue that this would contravene Section 214(a) of the Communications Act of 1934, as amended (Communications Act), because the present and future public convenience and necessity will be adversely affected by the discontinuance of the subject  X*stations' operations.aXp {O*#X\  P6G;P#э Petition to Deny at 11; Teamsters Comments at 1. See also 47 U.S.C.  214(a). Petitioner asserts that  yOw*the 500 kHz safety coverage would cease to exist with the closure of the subject stations. Petition to Deny at 12.a 4. The Teamsters state that only four of the seven international public coast marine  X_*(IPCM) stations operate 24 hours a day, seven days a week.g_p yO *#X\  P6G;P#э Petition to Deny at 9.g Those four stations are WLO, Mobile, Alabama (licensed to Global Radio Network, Inc.) (GRN); KFS, Palo Alto, California (licensed to Globe); and Stations KPH and WCC, both of which Globe seeks to obtain from  X *Western Union.Z Bp {O *#X\  P6G;P#э Id.Z The Teamsters contend that if Stations KPH and WCC are closed, only two high seas public coast stations that operate 24 hours per day, seven days a week (KFS of  X *Globe and WLO of GRN) would remain. p {Oq*#X\  P6G;P##X\  P6G;P#э Id. The Teamsters further note that Globe is also the licensee of one of the other three IPCM stations that would remain under this scenario  X *(Station WNU).` f p {O*#X\  P6G;P#э Id. at 6.` The Teamsters assert that (1) purchase and/or closure of Stations KPH and WCC would give customers a choice between only Globe and GRN for operation at any time of day or night, (2) those customers would choose Globe for transmitting and receiving messages because it is the dominant carrier, and (3) Globe's market power would be further  Xb*enhanced.`b p {O *#X\  P6G;P#э Id. at 9.` According to the Teamsters, grant of the subject applications will enable Globe  XK*to capture 80% or more of the revenues in the market, thus, creating a monopoly.K p {O*#X\  P6G;P#э Id. at 10. Anticompetitive allegations also have been made by those commenting in response to the  {OP *Petition to Deny and in correspondence to the Commission. See, e.g., Letter from Thomas E. Speers, Jr., General Manager of Marine Operations, Williams, Dimond & Co., to Reed Hundt, Chairman, Federal Communications Commission (June 12, 1996) (asserting that grant of the subject applications would result in a  yO"*loss of competition in the relevant market, thus reducing service and increasing delays in transmission).Ď The Teamsters further contend that denial of these applications would continue existing"4>0*&&qq@" competition that encourages and assures better services and faster handling of message  X*traffic.np yOy*#X\  P6G;P#э Petition to Deny at 14.n Finally, the Teamsters request that before any grant of the subject applications, the Commission establish an independent committee pursuant to Sections 309(e) and 403 of the  X*Communications Act,pop yO*#X\  P6G;P#э 47 U.S.C.  309(e), 403.p to review the communications services provided to the maritime  X*industry.hp yOT*#X\  P6G;P#э Petition to Deny at 15.h It recommends that such committee be comprised of representatives from industry,  X*the Department of Defense, the Department of Justice, unions and common carriers.\p {O *#X\  P6G;P#э Id. \  XH* *III. DISCUSSION ă 5. After a careful review of the record in this proceeding, we conclude that grant of the subject applications is consistent with the public interest, convenience and necessity  X *standard established in Section 309(a) of the Communications Act.f !p yO*#X\  P6G;P#э 47 U.S.C.  309(a).f We find that the allegations made in the Petition to Deny are not substantiated.  X *6. Service Discontinuation. Although the Teamsters assert that the license transfers will result in loss of services currently received by the public, Globe, in the context of this proceeding, has stated its intent to continue to offer all services on the same frequencies and the same hours of operation currently available to existing customers of Stations KPH and  XM*WCC.x ZMp {O*#X\  P6G;P#э See Globe Opposition at 2. Furthermore, as noted by Western Union, the growth and widespread acceptance of INMARSAT's services by the public confirms that the subject license assignments would not deprive the public of adequate telex and telegram services. Western Union Opposition at 4.x The Teamsters, moreover, note that only Stations KPH and WCC have the facilities  X6*within the continental United States to reach all the world's oceans.`!6 p {O*#X\  P6G;P#э Id. at 6.` Furthermore, of the  X*approximately 400 customers notified of the change in ownership,"e p {O5!*#X\  P6G;P#э  Letter from Anthony Cirieco, Vice President of Finance, MCI International, to All Western Union International Marine Customers (May 28, 1996). only one, Williams,""0*&&qq"  X*Dimond & Co., indicated any concern.4#Zp {Oy*#X\  P6G;P#э Western Union Opposition at 23. See also Letter from Thomas E. Speers, Jr., General Manager of Marine Operations, Williams, Dimond & Co., to Reed Hundt, Chairman, Federal Communications Commission (June 12, 1996).4 In addition, assignment of these licenses does not  X*pose any harm to the public safety or national security.$p yO*#X\  P6G;P#э Globe contends that it will not disrupt existing communications. Globe Opposition at 2. Based upon these facts and Globe's representations, we conclude that there is insufficient evidence to indicate that there will be  X*disruption to current service as a direct result of the proposed transfer.%zp yO *#X\  P6G;P#э In its comments, MMR licensee of Public Coast Stations WLO, Mobile, Alabama, KLB, Seattle, Washington, and WSC, Tuckerton, New Jersey stated that it does not object to the acquisition by Globe of the subject stations. However, it questions the intent of Globe to continue operation of these facilities. Furthermore, MMR asserts that Globe has never sought additional spectrum on the basis of a substantial showing of need. MMR Comments at 12.  7. As to the Teamsters' concerns that the closure of these stations will force increased  Xv*reliance on the GMDSS,u&v* p yOQ*#X\  P6G;P#э Western Union Opposition at 6.u which they consider to be unreliable, the U.S. Congress demonstrated its belief in the reliability of the GMDSS by recently eliminating the requirement that large cargo and passenger vessels carry radiotelegraph installations operators  X1*when these vessels are equipped and operated in accordance with GMDSS provisions.'1 p {O*#X\  P6G;P#э See Section 365 of the Communications Act, 47 U.S.C.  365. See also Pub. L. No. 104, 110 Stat. 65  yOf*(1996). In  X *implementing Section 365 of the Telecommunications Act of 1996, the Commission concluded that the GMDSS is at least, if not more, reliable than the outdated radiotelegraph  X *system which is based on manual Morse code technology.<( p {O*#X\  P6G;P#э See Amendment of the Commission's Rules to Conform the Maritime Service Rules to the Provisions of  {O{*the Telecommunications Act of 1996, Order, 11 FCC Rcd 17069, 17071 (1996), recon. pending. < In fact, the GMDSS represents the biggest improvement in marine safety since the first maritime regulations were enacted following the sinking of the Titanic in 1912. It is an automated shiptoshore distress alerting  X *system that relies on satellite and advanced terrestrial systems.u)\ pp {O*#X\  P6G;P#э See Amendment of Parts 13 and 80 of the Commission's Rules to Implement the Global Maritime  {O *Distress Safety System, PR Docket No. 90480, Report and Order, 7 FCC Rcd 951 (1992) (implementing the GMDSS in the Commission's Rules for the Maritime Radio Services).u  Xy* 8. Even if Western Union had discontinued service, or if at anytime in the future Globe does discontinue service, no prior Commission authorization is required. Under "b)0*&&qqH"  X*recently adopted Section 63.19(a) of the Commission's Rules,i*p yOy*#X\  P6G;P#э 47 C.F.R.  63.19(a).i only notification to customers and the Commission (sixty days in advance) is required of nondominant international carriers  X*that seek to discontinue, reduce or impair service.+Xp {O*#X\  P6G;P#э See Streamlining the International Section 214 Authorization Process and Tariff Requirements, IB Docket  {O*No. 95118, Report and Order, 11 FCC Rcd 12884, 12905 (1996). In streamlining the international Section 214 authorization process, the Commission stated that the increase in the number of international carriers and competition in international services means that customers can  X*switch to another international carrier if service is discontinued by their current carrier.Z,p {O *#X\  P6G;P#э Id.Z In view of this, the Commission concluded that impairment of service is unlikely, and customers  X_*will be able to obtain alternative service within the sixty days provided by notice.Z-_Fp {OV*#X\  P6G;P#э Id.Z Moreover, there are channels currently available for use by new license applicants in the eleven frequency bands which are allocated to high seas public coast stations. In view of the above, we conclude that transfer of the subject stations does not contravene Section 214 of the Communications Act or Section 63.19(a) of the Commission's Rules.  X *9. The Market. We believe that competition will not be impaired by the transfer of the subject licenses. The maritime communications market is broader than merely public coast stations. High seas public coast stations face direct competition from satellitebased service providers, such as INMARSAT, and, to a limited extent, from cellularbased service  X{*providers..^{p {O*#X\  P6G;P##X\  P6G;P#э See Amendment of the Commission's Rules Concerning Maritime Communications, PR Docket No.  {O*92257, First Report and Order, 10 FCC Rcd 8419, 8428 (1995). For a more detailed discussion of the services  {O*competitive with public coast stations, see Globe Opposition at 4. Indeed, as maritime service customers increasingly have turned to satellite and  Xd*cellular services,/d p yO*#X\  P6G;P#э Globe Opposition at 5; Western Union Opposition at 13. there has been a considerable contraction in the number of public coast  XM*stations over the past twentyfive years.E0M p {O*#X\  P6G;P#э See, e.g., Mobile Telecommunication Technologies Corp. (Order and Authorization), 9 FCC Rcd 4039  {OV *(1994); Texas Marine Radiotelephone Corp. (Order and Authorization), 7 FCC Rcd 2899 (1992).E Even including the subject stations, Globe estimates that it will be serving only five percent of the American marine communications  X*market.1p yO"*#X\  P6G;P#э Globe estimates that this would be onehalf of one percent of the total worldwide marine communications  {O#*market. Id. at 45. "[10*&&qq"  10. While we concur with the Teamsters that competition encourages better services,  X*faster handling of message traffic,2p yOb*#X\  P6G;P#э Petition to Deny at 13.#X\  P6G;P#я and spurs technological development,3Xp {O*#X\  P6G;P#э Id. at 14.#X\  P6G;P#ш the Teamsters take too narrow a view of the relevant market. In fact, the Commission has already held that  X*public coast stations do not possess market power.24p {OV*#X\  P6G;P#э See, e.g., Amendment of the Commission's Rules Concerning Maritime Communications, PR Docket No.  {O *92257, Notice of Proposed Rule Making and Notice of Inquiry, 7 FCC Rcd 7863, 7870 (1992).2 Further, the Commission recently reclassified international public coast stations as nondominant common carriers to promote  X*competition./5$Fp yO *#X\  P6G;P#э The Commission stated that the advantages of increased competition, coupled with the threat of potential Commission action and the difficulty of concealing anticompetitive practices, are sufficient to deter unfair  {O*competitive practices in the public coast station market. Amendment of the Commission Rules Concerning  {O*Maritime Communications, PR Docket No. 92257, First Report and Order, 10 FCC Rcd 8419, 8431 (1995). / As a nondominant carrier, Globe will not have any ability to control prices or engage successfully in any other anticompetitive conduct following the assignment of the subject licenses. For that matter, Globe and Western Union, as nondominant international carriers, are under no obligation to seek authorization from the Commission to discontinue service. Petitioner's allegation that the transfer is a ruse to circumvent Western Union's obligation, as an international carrier, to file a Section 214 application to cease operations is unpersuasive because Western Union does not have such an obligation. Thus, Petitioner's allegations that the proposed license transfers contravene Section 214 of the Communications  X *Act on this basis are also without merit.6 2 p yO*#X\  P6G;P#э Petition to Deny at 1112; Teamsters Comments at 1; Teamsters Reply at 56.  X * 11. Competition. We concur with Globe that the transfer of the facilities will better serve the public interest by increasing the availability of new and innovative services in the  X{*public coast station context.m7{ p yO*#X\  P6G;P#э Globe Opposition at 1.m In addition to traditional services, Globe intends to offer "Globe EMail," which would permit individuals to communicate with ships, and viceversa,  XM*directly via electronic mail.`8MR p {OP *#X\  P6G;P#э Id. at 2.` In its comments, HAL notes that the Globe Email system forwards typical shiptoshore traffic faster and at a fraction of the cost of satellite  X*communications systems.c9p yO#*#X\  P6G;P#э HAL Comments at 2.c We find merit in Globe's contention that such technical"t90*&&qq"  X*innovations are crucial for the continued survival of public coast stations.m:p yOy*#X\  P6G;P#э Globe Opposition at 5.m Western Union submits that it has upgraded the antennas and equipment at the stations, automated many of the systems, and reduced the staff by nearly a half, but these measures have not made these  X*stations economically successful.u;Xp yO*#X\  P6G;P#э Western Union Opposition at 3.u It appears likely that the economic viability of public coast stations is inextricably intertwined with successful implementation of additional  X*technical improvements, such as Globe's EMail feature.s<p yO& *#X\  P6G;P#э Globe Opposition at 3.s The subject license transfers will  Xv*permit Globe, within the scope of its authorizations under the Commission's Rules,=vxp yO *#X\  P6G;P#э Should Globe desire to offer Email features outside the scope of the Commission's Rules, it will, of course, be required to apply for any necessary waivers of the Rules. to institute an advanced maritime communications system and achieve efficiencies previously unavailable to Western Union, which will undoubtedly enhance Globe's ability to effectively  X1*compete.u>1p yO*#X\  P6G;P#э Western Union Opposition at 4.u This should further increase overall competition in the maritime communications market by enabling Globe's public coast stations to directly compete more effectively with  X *satellite and cellular communications providers.? wp yO+*#X\  P6G;P#э Globe Opposition at 6; Western Union Opposition at 4.  X *  X *|(IV. CONCLUSION ă  X* 12. Contrary to the Teamsters' contention,o@ p yOH*#X\  P6G;P#э Teamsters Comments at 5.o we do not find that the grant of these applications will result in the concentration of control of the maritime communications market. Rather, we conclude, based on the record in this proceeding, that these stations' existing customers will continue to receive their current services, as well as new, innovative communications services such as Globe Email. We also determine that there are no substantial and material questions of fact warranting either designation of these applications  X*for hearing or establishment of an investigatory committee.A$ p {ON!*#X\  P6G;P#э See Sections 309(d)(2) and (e) of the Communications Act, 47 U.S.C. 309(d)(2), (e). See also Citizens  {O"*for Jazz on WRVR v. FCC, 775 F.2d 392, 397 (D.C. Cir. 1985); AntiDefamation League v. FCC, 403 F.2d 169, 171 (1968); Applications of Stockholders of CBS and Westinghouse Electric Corporation, 11 FCC Rcd 3733, 37383739 (1995). We further " A0*&&qq" conclude that the license transfers will comply with the public interest, convenience and  X*necessity standards mandated by the Communications Act.Bp {Ob*#X\  P6G;P#э See Section 310(d) of the Communications Act, 47 U.S.C.  310(d). See also Stone v. FCC, 466 F.2d 316, 322323 (D.C. Cir. 1972).  X* pp  X*5 V. ORDERING CLAUSES ă  Xv* 13. IT IS ORDERED that pursuant to Sections 4(i), 309(d)(2), and 310(d) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 309(d)(2), 310(d), and Sections 1.962 and 1.971 of the Commission's Rules, 47 C.F.R.  1.962, 1.971, the Petition to Deny filed by Teamsters Local Union No. 9 on June 4, 1996, against Globe Wireless, Inc.,  X * IS DENIED.  X * 14. IT IS FURTHER ORDERED that the applications of Globe Wireless, Inc., for approval to transfer the licenses for Stations KPH and WCC, Bolinas, California, and South Chatham, Massachusetts, respectively, in the Maritime Radio Services, from Western Union  X *International, Inc., to Globe Wireless, Inc., ARE GRANTED .  ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhC ` `  hhCDaniel B. Phythyon ` `  hhCActing Chief, Wireless Telecommunications Bureau " "B0*&&qq"  X- j:\prd\ 100globe.w10    X- 42597