214 authorization to resell the services of other unaffiliated U.S. international carriers to provide international switched telecommunications services between out-of-region points in the United States and international points. Under the framework adopted in International Services and Section 63.10(a)(4) of the rules, we find that NYNEX LD, ACI, and BACI qualify as non-dominant resellers of international switched services on all routes for which they seek Section 214 authorization, including those routes where they are affiliated with, or have ownership interests in, foreign carriers.

1177

26. MCI contends that ACI "mistakenly claims it is 'presumptively nondominant' under Section 63.10 of the Rules on the U.S-Hungary route [where it is affiliated with MATAV.J"76 MCI asserts that, pursuant to the Commission's recent decision in the Streamlining Order, ACI must be presumed dominant on the U.S.-Hungary route because "the Commission has made no finding concerning MATAV's market power.' MCI avers that MATAV "has no local exchange competition in Hungary, and [that] long distance and international service competition in that country is incipient at best."78 MCI maintains that ACI has submitted no evidence to overcome the heavy burden of presumption that it should be regulated as a dominant carrier on the U.S.-Hungary route."9

27. MCI's assertion that, pursuant to the Commission's recent decision in the Streamlining Order, ACI must be presumed dominant on the U.S.-Hungary route because "the Commission has made no finding concerning MATAV's market power"80 is without merit. In the Streamlining Order, the Commission decided not to streamline process applications for Section 214 resale authority if the applicant has an affiliation with a foreign carrier in a destination country and the Commission had not already determined the carrier's market power in the destination country. That decision, however, did not shift the burden of proof

81

75

International Services at 7335; see also Foreign Carrier Market Entry Order at ¶ 143 (rejecting GTE's proposal that the Commission regulate affiliated switched service resellers as dominant, stating that "[w]e continue to consider it unlikely that a foreign carrier reseller would engage in discriminatory conduct under such circumstances").

United States and international points. The conditions we attach to our grant of the instant Section 214 applications will remain in place pending the outcome of the Commission's Interexchange NPRM. We reserve the right to modify the conditions of the authorizations granted in this order, as necessary, upon the Commission's adoption of final rules for BOC out-of-region, domestic interstate, interexchange services. We defer a decision regarding the regulatory treatment of and the conditions that should apply to NYNEX LD's provision of international switched resale services originating from Bell Atlantic's in-region states and BACI's provision of international switched resale services originating from NYNEX's inregion states to such time as these applicants inform the Commission in writing of their intention to provide such services.

34.

As non-dominant resellers of international switched services, NYNEX LD, ACI, and BACI will be allowed to file tariffs on no less than one days' notice, without economic or cost support, and the tariffs will be presumed lawful. They also will be subject to the Section 214 requirements of non-dominant U.S. international carriers.

35. As non-dominant carriers, NYNEX LD, ACI, and BACI will be subject to regulation under Title II of the Act. Specifically, Title II requires carriers to offer international services under rates, terms and conditions that are just, reasonable and not unduly discriminatory (Sections 201 and 202), and Title II carriers are subject to the Commission's complaint process (Sections 206-209). Title II carriers also are required to file tariffs pursuant to our streamlined tariffing procedures (Sections 203 and 205). Nondominant U.S. international switched resellers also are subject to the requirements of Sections 43.51, 43.61, 63.14 and 63.19 of the Commission's rules.93

36. This Order will be effective upon its adoption.

93

See 47 C.F.R. § 43.51 (requiring common carriers engaged in foreign communications to file with the Commission certain contracts, agreements, concessions, licenses, authorizations, and other arrangements); 47 C.F.R. § 43.61 (requiring common carriers engaged in the provision of international telecommunications service between the U.S. and foreign destinations to file reports containing annual traffic and revenue data); 47 C.F.R. § 63.14 (prohibiting U.S carriers authorized to provide international communications service from agreeing to accept special concessions directly or indirectly from any foreign carrier or administration with respect to traffic or revenue flows between the United States and any foreign country for which the U.S. carrier is authorized to provide service); 47 C.F.R. § 63.19 (requiring non-dominant international carriers to "notify all affected customers of the planned discontinuance, reduction or impairment [of service] at least 60 days prior to. . . [the] planned action[;]" notification of such action must be in writing to each affected customer, unless otherwise authorized in advance by the Commission, and a copy of such notification must be filed with the Commission).

37. Upon consideration of the applications and in view of the foregoing, IT IS HEREBY CERTIFIED that the present and future public convenience and necessity require the provision of resale of international switched services by the applicants subject to the conditions set forth below.

38. Accordingly, IT IS HEREBY ORDERED that application File No. ITC-96-125 filed by NYNEX Long Distance Co. (NYNEX LD) IS GRANTED and NYNEX LD is authorized to resell on a non-dominant carrier basis international switched services of unaffiliated U.S. international carriers for the provision of international switched services originating from U.S. points except the in-region states served by the NYNEX telephone operating companies and terminating at all international points except Gibraltar.

39. IT IS FURTHER ORDERED that application File No. ITC-96-272 filed by Ameritech Communications, Inc. (ACI) IS GRANTED and ACI is authorized to resell on a non-dominant carrier basis international switched services of unaffiliated U.S. international carriers for the provision of international switched services originating from U.S. points except the in-region states served by the Ameritech telephone operating companies and terminating at all international points.

40. IT IS FURTHER ORDERED that application File No. ITC-96-181 filed by Bell Atlantic Communications, Inc. (BACI) IS GRANTED and BACI is authorized to resell on a non-dominant carrier basis international switched services of unaffiliated U.S. international carriers originating from U.S. points except the in-region states served by the Bell Atlantic telephone operating companies and terminating at all international points.

41.

IT IS FURTHER ORDERED that NYNEX LD, ACI, and BACI shall (1) maintain separate books of account from any affiliated local exchange carrier (LEC); (2) not

jointly own transmission or switching facilities with any affiliated LEC; and (3) take any tariffed services from the affiliated LEC pursuant to the terms and conditions of the LEC's generally applicable tariff.

42.

IT IS FURTHER ORDERED that these authorizations are subject to the condition that NYNEX LD, ACI, and BACI be treated as nonregulated affiliates for purposes of Bell Operating Company (BOC) accounting under the Commission's joint cost and affiliate transactions rules as set forth in Parts 32 and 64 of the Commission's rules.

43. IT IS FURTHER ORDERED that the conditions that attach to the grant of NYNEX LD's, ACI's, and BACI's applications as set forth in paragraphs 41 and 42 of this order will remain in place pending the outcome of the Commission's decision in Policy and Rules Concerning the Interstate, Interexchange Marketplace and Implementation of Section 254(g) of the Communications Act of 1934, CC Docket No. 96-61, FCC 96-123 (released Mar. 25, 1996). The International Bureau reserves the right to modify the conditions of the authorizations granted in this order, as necessary, upon the Commission's adoption of final rules for BOC out-of-region, domestic interstate, interexchange services.

44. IT IS FURTHER ORDERED that BACI may not initiate international switched resale service originating in NYNEX Corporation's (NYNEX) in-region territory and that NYNEX LD may not initiate international switched resale service originating in Bell Atlantic Corporation's (Bell Atlantic) in-region territory until BACI and NYNEX LD inform the Commission in writing of their intention to provide such services and an order is issued determining the regulatory treatment of such services.

45. IT IS FURTHER ORDERED that, if Bell Atlantic and NYNEX decide not to consummate their announced merger and they seek to provide out-of-region international switched services originating from each other's territory, they may do so upon the filing of a letter with the Commission stating their decision not to consummate the announced merger and provided BACI and NYNEX LD comply with the conditions set forth in paragraghs 41, 42, and 47 of this order in the provision of such services.

additional conditions on the provision of service by ACI as authorized in this order should ACI reach an agreement with another BOC to merge their operations.

47. IT IS FURTHER ORDERED that the applicants shall comply with the requirements specified in Section 63.21 of the Commission's rules, 47 C.F.R. § 63.21.

48. 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 the public notice of this order (see Section 1.4(b)(2)).