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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) AT&T CORP. ) AT&T ALASCOM ) AT&T PUERTO RICO ) AT&T VIRGIN ISLANDS ) ) Applications for authority, pursuant to Section 214 of ) File Nos. ITC-98-137 the Communications Act of 1934, as amended, to ) ITC-98-138 provide switched services using international private ) ITC-98-139 lines interconnected with the public switched network ) ITC-98-140 at one or both ends between the United States, on the ) ITC-98-141 one hand, and Luxembourg, Norway, Denmark, ) ITC-98-195 France, Germany and Belgium, on the other hand ) ORDER AND AUTHORIZATION Adopted: April 21, 1998 Released: April 30, 1998 By the Chief, Telecommunications Division: I. INTRODUCTION 1. With this order, we add Luxembourg, Norway, Denmark, France, Germany, and Belgium to the list of countries for which U.S. carriers may provide switched, basic telecommunications services over their authorized international private lines ("ISR"). We find that U.S. carriers' settlement rates for each of these countries are at or below the Commission's benchmark settlement rate. We therefore conclude that the public interest in cost-based telecommunications services would be served by permitting the above-referenced applicants, and other authorized private line carriers, to interconnect their private lines between the United States and these World Trade Organization Member countries for the provision of switched, basic services. Our action today will permit U.S. carriers to route traffic between the United States and these countries outside the traditional settlements system, enabling them to offer U.S. international service at reduced rates. We expect that such activity will, in turn, exert increased pressure to lower settlement rates further and reduce consumer prices. II. BACKGROUND 2. AT&T Corp., AT&T Alascom, AT&T Puerto Rico, and AT&T Virgin Islands (collectively, "AT&T") filed six joint applications requesting Section 214 authority to provide switched, basic telecommunications services using their authorized international private lines between the United States, on the one hand, and Luxembourg, Norway, Denmark, France, Germany, and Belgium, on the other hand. We placed AT&T's applications on public notice, and no party opposed them or submitted comments. III. DISCUSSION 3. AT&T is an authorized facilities-based private line carrier on all routes covered by its applications. AT&T certifies that it is not affiliated with any foreign carrier in Luxembourg, Norway, Denmark, France, Germany, or Belgium, each of which is a Member of the World Trade Organization ("WTO"). In these circumstances, Section 63.18(e)(4) of the rules permits AT&T to use its authorized private lines for the provision of switched services between the United States and each of these WTO Member countries subject to the condition that settlement rates for at least 50 percent of the settled U.S.-billed traffic between the United States and each country are at or below the benchmark settlement rate adopted in the Benchmarks Order. AT&T submitted information in its applications to demonstrate that Luxembourg, Norway, Denmark, France, Germany, and Belgium satisfy the benchmark condition for ISR. 4. The Commission's benchmark settlement rate for these six countries is 15 cents. Currently, U.S. carriers' settlement rates for these countries are as follows: Luxembourg-0.1 SDR (13.5 cents); Norway-0.08 SDR (11 cents); Denmark-0.08 SDR (11 cents); France-0.075 SDR (10 cents); Germany-0.075 SDR (10 cents); Belgium-0.11 SDR (15 cents). Thus, we find that the settlement rates for all six countries are at or below the relevant benchmark settlement rate and that all six countries satisfy the benchmark condition for ISR. Accordingly, we grant AT&T's applications and authorize it to provide switched services using its international private lines between the United States and these countries. We will also add these six countries to the list of countries for which U.S. carriers may provide switched services over their authorized facilities-based or resold private lines. IV. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED that the applications of AT&T Corp., AT&T Alascom, AT&T Puerto Rico, and AT&T Virgin Islands, File Nos. ITC-98-137, ITC-98-138, ITC-98- 139, ITC-98-140, ITC-98-141 and ITC-98-195 ARE GRANTED, and AT&T Corp., AT&T Alascom, AT&T Puerto Rico, and AT&T Virgin Islands are authorized to provide switched, basic telecommunications services using their authorized international private lines interconnected to the public switched network at one or both ends between the United States, on the one hand, and Luxembourg, Norway, Denmark, France, Germany and Belgium, on the other hand. 6. IT IS FURTHER ORDERED that the authority granted herein to provide switched, basic telecommunications services using international private lines between the United States and Luxembourg, Norway, Denmark, France, Germany, and Belgium for the provision of switched services is limited to the provision of such services between the United States and the countries authorized herein. This restriction is subject to the following exceptions: (a) the applicants may engage in "switched hubbing" through the countries for which they are authorized herein consistent with Section 63.17 of the Commission's Rules, 47 C.F.R.  63.17; and (b) the applicants may provide U.S. inbound or outbound switched, basic services over their authorized private lines extending between the United States and the countries for which they are authorized herein, as well as the United Kingdom, Sweden, New Zealand, Australia and the Netherlands, provided the applicants are authorized to provide switched services over private lines between the United States and those countries. 7. IT IS FURTHER ORDERED that applicants shall comply with Section 63.21 of the Commission's Rules, 47 C.F.R. 63.21. 8. 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 Diane J. Cornell Chief, Telecommunications Division International Bureau