Transcript FCC requirements for international carriers

FCC requirements for
international carriers
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Cable landing rights application
Classification as dominant or non-dominant
Section 214 application
Reporting requirements
Cable landing rights
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Cable landing license act of 1921
Authority delegated to the FCC in 1954
State department approval required
Issues considered in decision to grant or
deny include security interests of the nation,
issues of reciprocity, pricing
Recent decision to expedite process
• FCC decided to grant streamlined approval
(45 days) if following conditions are met:
– Applicants with no affiliation with carrier with
market power in cable’s destination market
– Applicants with affiliation with a market power
carrier in a WTO market are eligible if agree to
competitive safeguards (file reports and not
enter into discriminatory arrangements
regarding collocation and access to backhaul)
Dominant versus Non-dominant
Status
• Status is route specific
• Dominant carriers file tariffs; maintain separate
books of account from its foreign affiliate; have to
apply for every new circuit with full Section 214
process; file quarterly traffic and revenue reports
• Non-dominant carriers are relieved of much of this
burden; don’t file tariffs, have expedited Section
214 filings, don’t need to file Section 214
applications to add circuits to existing routes
Who is and who isn’t dominant?
• For US carriers
– US carrier with no affiliation with a carrier in a
destination country is non-dominant
– US carrier with affiliation with a monopoly carrier in a
destination country is dominant on that route
– US carrier with affiliation with non-monopoly carrier in
destination country faces burden of proof
• “dominant”—50% market share in international transport and
local access at the foreign end of the route
– If destination country is a WTO member, presumption
of non-dominance
Non-US carriers
• Must specify whether the applicant is a foreign
carrier in the country or whether applicant controls
a foreign carrier in that country (25% ownership)
• Must show whether foreign country is WTO
member; whether foreign carrier lacks market
power in named foreign country; whether foreign
country provides Competitive Opportunities for
US carriers
Section 214 Filing
• Extension of lines or discontinuance of
service; certificate of public convenience
and necessity
• Notification of secretary of defense,
secretary of state, and state governor
Applicant must provide
• Statement showing how grant of authority will
serve the public interest, convenience and
necessity
• Must list
– Name of each applicant; ownership percentages
– Government or state or territory under which
corporation or partnership applicant is organized
– Any affiliations with foreign carriers, by country
– Category for which authority is sought
• Global facilities based
• Global resale
Definition of carrier
• Facilities-based carrier: holds an
ownership, Indefeasible Right of Use (IRU),
or leasehold interest in bare capacity in the
US end of an international facility,
regardless of whether underlying facility is
common carrier or private, cable or satellite
system
• Resale carrier: no ownership interests, etc.
Required reports
• Contracts and concessions
• Traffic and revenue data divided by service
and by whether billed in US or elsewhere
(annual)
• Quarterly traffic data
• International circuit status report
Foreign ownership restrictions
• 47 U.S.C. 310
– License ownership restrictions—no broadcast,
common carrier or aeronautical en route or
aeronautical fixed radio station license-•
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310(a) no holding by foreign government
310(b) no holding by alien or foreign corporation
310© exception for amateur radio licenses
310(d) transfer of control of licenses
Foreign corporation?
– Any corporation of which an officer or director
is an alien or over 20% of capital stock is
owned by aliens or foreign corporation
– Any corporation directly or indirectly
controlled by any other corporation of which
any officer or more than 25% of the directors
are aliens, or of which more than 25% of
capital stock is owned by aliens or foreign
corporations.
FCC discretion
• Individuals and entities from WTO countries
– Rebuttable presumption that do not pose competitive
concern in US market
– If showing of risk, can impose conditions on the
individual or entity or can deny license
• Individuals and entities from non-WTO country
– Apply the effective competitive opportunities (ECO)
test if entity wishes to exceed 25% limitation