time. We further find and conclude that Comsat could reasonably rely on the findings in our 1966 and 1967 decisions of traffic estimates, and on the A.T. & T. and ITT undertaking to take sufficient circuits to make the earth station viable, and that the failure of Comsat to receive such benefits is directly attributable to A.T. & T.'s and ITT's erroneous estimate of circuit requirements and A.T. & T. and AAC&R not taking satellite circuits based on such estimates. 23. We further find and conclude that Comsat is entitled to relief which will accord it sufficient revenues from satellite voice circuits leased by A.T. & T. and ITT through AAC&R to make the Cayey earth station economically viable in accordance with our 1966 and 1967 decisions with respect to the second Florida-Virgin Islands cable. 24. We further find and conclude that, on the basis of Comsat's present rates for satellite voice circuits between the mainland and Puerto Rico and the representations made to us with respect to the revenues needed to make the Cayey earth station economically viable, the acquisition and operation by A.T. & T. and AAC&R of 83 satellite voice circuits will produce sufficient revenues to make the Cayey earth station economically viable. 25. We further find and conclude that Comsat did not file a tariff in accordance with its estimates; that traffic to the Puerto Rico-Virgin Islands area is growing quickly, and that Comsat should not benefit from the filing of tariff rates substantially in excess of those on which we relied. 26. We further find and conclude that A.T. & T. and AAC&R shall, as soon as Comsat can make such circuits available, lease 13 additional satellite voice circuits between the mainland and Puerto Rico provided that Comsat, in accepting this memorandum opinion and order as herein conditioned, undertakes to file, effective the date when A.T. & T. and AAC&R shall be leasing at least 100 circuits for telephone service between the mainland, Puerto Rico, and the Virgin Islands, a tariff setting forth a monthly charge which shall not result in a per-circuit rate of more than $30,000 annually for whole circuits between any earth station on the east coast of the United States and the Cayey earth station in Puerto Rico. The foregoing is without prejudice to the right of Comsat to file, after the effective date of the $30,000 per annum whole circuit rate, a tariff on statutory notice, setting forth rates different from the $30,000 per circuit annual rate. 27. In view of our conclusions, there is no need to consider any other relief sought by Comsat in its petition considered herein. ORDER It is ordered, That A.T. & T. and its correspondents in Puerto Rico and the Virgin Islands shall, as soon as Comsat has filed its acceptance of the conditions set forth in paragraph 26 supra with respect to reduction of charges per whole circuit to a rate of $30,000 per annum (special permission to make such charge effective on not less than 1 day's notice is hereby granted), and as soon thereafter as Comsat can make available to them 13 additional satellite voice circuits between the mainland and Puerto Rico, cease the use of 13 voice circuits in the second Florida-Virgin Islands cable to be replaced by 13 satellite voice circuits between the mainland and Puerto Rico to be leased by A.T. & T. and such correspondents for providing service between the mainland and Puerto Rico-Virgin Islands; It is further ordered, That the petition of the Communications Satellite Corp., filed on January 19, 1969, Is granted to the extent set forth above. FEDERAL COMMUNICATIONS COMMISSION, BEFORE THE F.C.C. 69-710 FEDERAL COMMUNICATIONS COMMISSION In the Matter of WASHINGTON, D.C. 20554 AMERICAN TELEPHONE & TELEGRAPH Co. CABLE & WIRELESS/WESTERN UNION INTERNA- ITT WORLD COMMUNICATIONS INC. RCA GLOBAL COMMUNICATIONS, Inc. WESTERN UNION INTERNATIONAL, INC. Applications For Authorizations, Pursuant to Section 214 of the Communications Act of 1934, To Lease and Operate Satellite Television Channels and Voice Circuits Between the U.S. Mainland and Puerto Rico and Various Countries Served via Satellite Over the Atlantic Ocean. Files Nos. P-C-6019, Files Nos. T-C-1892, MEMORANDUM OPINION, ORDER AND AUTHORIZATION BY THE COMMISSION: COMMISSIONERS BARTLEY AND WADSWORTH (a) Applications filed by American Telephone & Telegraph Co. (A.T. & T.), ITT World Communications Inc. (ITT Worldcom), RCA Global Communications, Inc. (RCA), and Western Union International, Inc. (WUI) for authority to acquire by lease from Communications Satellite Corp. (Comsat) and to operate satellite television channels and voice circuits between the U.S. mainland and a satellite or satellites over the Atlantic Ocean for providing communications services, including television, between the mainland United States and Puerto Rico and between the mainland and various countries in Central and South America and amendments to certain of the foregoing applications to request broad authority to lease television channels between the United States and a satellite or satellites over the Atlantic Ocean for providing television transmission and reception services between the U.S. mainland and all countries reached through such satellite or satellites, as well as necessary landline connecting facilities in the United States or Canada; (b) Applications filed by Cable & Wireless/Western Union International, Inc. (C&W/WUI), ITT Worldcom and RCA for authority to lease from Comsat and operate satellite television channels between Puerto Rico and a satellite or satellites over the Atlantic Ocean for providing television transmission and reception services between Puerto Rico and the United States, and between Puerto Rico and countries reached through such satellite or satellites, as well as necessary landline facilities in Puerto Rico; (c) Applications filed by A.T. & T. (file No. P-C-6019), ITT Worldcom (file No. T-C-1892), RCA (file No. T-C-1890), and WUI (file No. T-C-1896), granted in part by the Commission's memorandum opinion, order, and certificate adopted June 22, 1965 (38 F.C.C. 1315), which authorized the four carriers to acquire satellite voice circuits from the Communications Satellite Corp. (Comsat), but which deferred action upon the remaining portion of those applications which portion included requests for authority to acquire television capacity and provide television services with Europe; (d) The Commission's memorandum opinion, order, and authorization of July 15, 1965 (1 F.C.C. 2d 82), as amended by memorandum opinion, order, and authorization of July 28, 1965 (1 F.C.C. 2d 415), by which the Commission, acting upon a joint petition for reconsideration of the authorization described in the preceding subparagraph, granted A.T. & T., ITT Worldcom, RCA, and WUI temporary authority to lease and to operate facilities to provide television services between the U.S. mainland and Europe on a rotation basis, and to acquire and operate requisite landline facilities, and to this extent acted on the applications listed in the preceding subparagraph; (e) Temporary authorizations granted to the applicants herein to provide television services as indicated below: A.T. & T., ITT Worldcom, RCA, WUI.. United States with Chile. Do.... Do... Do... Do.. United States with Puerto Rico. 2. In the case of applications files Nos. T-C-1892-1, T-C-1892-4, T-C-1890-5, T-C-1896-3, and T-C-1896-7, which request authority to acquire satellite voice circuits as well as television channels, orders, and authorizations have been issued granting the voice circuits requested and deferring action on those parts of the applications requesting television facilities being considered herein. 3. All of the applications in the heading hereof were listed on the Commission's public notices of applications accepted for filing soon after each was received, and copies of the applications together with notices extending the opportunity to file comments were mailed to interested parties. Except for the applications listed in subparagraph (c) of paragraph 1 above, the only comments received opposing a grant of the requests for television facilities being considered herein were from RCA and these comments were subsequently withdrawn. With respect to the applications listed in subparagraph (c) of paragraph 1 above, comments were received, and pleadings filed, as described in our decisions referred to above. With respect to WUI's application file No. T-C-1896-4, comments directed to acquisition of voice circuits to Panama requested therein were received and no action on that part of the application is recommended. 4. Four of the seven temporary authorizations listed in subparagraph (e) of the first paragraph above were granted to A.T. & T., ITT Worldcom, RCA, and WUI on a country-by-country basis, to provide, in rotation, television services between the U.S. mainland and Chile, Brazil, Panama, and Puerto Rico, subject to their filing a joint tariff. Similarly, the other two temporary authorizations listed above were granted to C&W/WUI, ITT Worldcom, and RCA, the carriers operating in Puerto Rico, to provide in rotation television services between Puerto Rico and Brazil, Chile, Europe, Panama, and the U.S. mainland. 5. The present authority by which A.T. & T., ITT Worldcom, RCA, and WUI provide in rotation television services between the U.S. mainland and Europe, described in paragraph 1, subparagraph (d) above, is not limited to specific countries within Europe. This authority has been outstanding for nearly 4 years without problems arising because of its scope. We think that, in view of the nature of television service, we can safely continue the scope of such authority and, indeed, broaden it to cover the area served by Atlantic satellites. This would serve our administrative convenience by making unnecessary filings by the carriers to serve additional points in the Atlantic basin as satellite service is extended to them. We think that adequate regulatory controls over the television service to be rendered by the applicants will be provided through our licensing of the Communications Satellite Corp., to offer service to new points and through the tariffs it must file to offer such channels to applicants so that they may render television services. to the public. However, we think that our broad grant of authority should, as to any particular applicant herein, be conditioned on its having an appropriate operating agreement with the country it desires to serve over facilities authorized herein. Each such carrier, as a matter of practical necessity, must complete an operating agreement with an overseas correspondent in a particular country prior to establishing the necessary facilities to provide television service to or from such country or point, and, when a given carrier has concluded such an operating agreement, the broad authorization to serve an area should become effective to that point. Moreover, we are authorizing the service herein only on a term basis, with ample opportunity to amend our authorizations as necessary, including any changes that may be consequent on a further review of our present policy of authorizing carriers serving the public directly to provide television service jointly on a rotation basis. 6. Television service with Mexico and Canada is presently provided via landlines, a situation which does not exist with respect to overseas points. In view of this, it appears that the principal use of satellites will be in conjunction with simultaneous transmission or reception with a point or points not in North America. Accordingly, we will at this time authorize service with Canada and Mexico on a multipoint basis. This, of course, is without prejudice to the filing of applications to serve either or both countries directly on a point-to-point |