PUBLIC NOTICE Federal Communications Commission 445 12th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: http://www.fcc.gov TTY: 1-888-835-5322 DA 07-233 Released: January26, 2007 The International Bureau Revises and Reissues the Commission’s List of Foreign Telecommunications Carriers that Are Presumed to Possess Market Power in Foreign Telecommunications Markets By this Public Notice, the International Bureau revises and reissues the Federal Communications Commission’s “List of Foreign Telecommunications Carriers that Are Presumed to Possess Market Power in Foreign Telecommunications Markets.” The revised list updates changes in the names of dominant carriers on several routes, and also adds St. Maarten to the list of destination markets and SMITCOMS, N.V. as a carrier presumed to possess market power in St. Maarten.1 The Bureau last reissued the list in 2004.2 The Commission first adopted its list of foreign carriers that are presumed to possess market power in the 1999 ISP Reform Order proceeding.3 In that proceeding, the Commission modified its rules to remove its requirement that agreements between U.S. telecommunications carriers and 1 The Commission directed the International Bureau to issue an amended List of Foreign Telecommunications Carriers that are Presumed to Possess Market Power in Foreign Telecommunications Markets to add St. Maarten to the list of destination markets and SMITCOMS, N.V. as a carrier presumed to possess market power in St. Maarten because SMITCOMS failed to demonstrate that its parent, SMITCOMS, N.V., will lack market power in relevant input markets in St. Maarten that are necessary to land, connect and operate the SMPR-1 cable system. See St. Maarten International Communications Services, Inc. Application for Review of Application for a License to Land and Operate a Fiber Optic Submarine Cable System Between San Juan, Puerto Rico, and St. Maarten, Netherlands Antilles, Order on Review, 20 FCC Rcd 18732 (2005). 2 See List of Foreign Carriers that Are Presumed to Possess Market Power in Foreign Telecommunications Markets, Declaratory Ruling, DA 04-1584 19 FCC Rcd 20385 (Int’l Bureau 2004). The Commission has delegated the authority to administer and enforce the policies and rules on international settlements under part 64 of the Commission’s rules. 47 C.F.R. § 0.261(a)(8). See The International Bureau Revises and Reissues the Commission’s List of Foreign Telecommunications Carriers That Are Presumed to Possess Market Power in Foreign Telecommunications Market, Public Notice, DA 03-181218 FCC Rcd 11073 (Int’l Bureau 2003); List of Foreign Telecommunications Carriers that Are Presumed to Possess Market Power in Foreign Telecommunications Markets, Declaratory Ruling, DA 04-970, 19 FCC Rcd 6331 (Int’l Bureau 2004). 3 1998 Biennial Regulatory Review – Reform of the International Settlements Policy and Associated Filing Requirements, IB Docket No. 98-198 and CC Docket No. 90-337, Report and Order and Order on Reconsideration, 14 FCC Rcd 7963 (1999) (1999 ISP Reform Order). 2 foreign carriers that lack market power at the foreign end of the international route conform to the Commission’s International Settlements Policy (ISP).4 The Commission’s rules presume that a foreign carrier does not possess market power on the foreign end of a U.S.-international route if it possesses less than 50 percent market share in each of three relevant foreign product markets: international transport facilities, including cable landing station access and backhaul facilities; intercity facilities and services; and local access facilities and services on the foreign end.5 The Commission created a list of foreign carriers that do not qualify for this presumption as a mechanism to ensure that U.S.-international carriers are precluded from exchanging traffic outside of the ISP with carriers on the list.6 In addition, the Commission’s rules identified below preclude U.S.- authorized carriers from agreeing to accept special concessions from carriers on the list unless otherwise allowed under the Commission's rules. The list, as now revised, continues to apply for purposes of implementing the following Commission rules: Sections 1.767(g)(5) (involving the prohibition on cable landing licensees agreeing to accept special concessions);7 43.51(b) (involving reporting contracts and concessions); 63.14 (involving the prohibition on telecommunications carriers agreeing to accept special concessions); 63.23(d) (involving the provision of switched basic services over authorized resold private lines); and 64.1002 (involving the international settlements policy), which the Commission adopted in the 2004 ISP Reform Order.8 4 The ISP is a Commission policy established to govern how U.S. carriers negotiate with foreign carriers for the exchange of international traffic. The ISP currently applies when U.S. carriers negotiate the exchange of traffic with foreign carriers that have market power on to those international routes that are not “benchmark” compliant. International Settlements Policy Reform, International Settlement Rates, IB Docket Nos. 02-324 and 96-261, First Report and Order, 19 FCC Rcd 5709 (2004) (2004 ISP Reform Order); see also “Routes Still Subject to the International Settlements Policy (ISP)” (http://www.fcc.gov/ib/pd/pf/isp_nom_excempt.html). The ISP is intended to prevent foreign carriers with market power from discriminating or taking other anticompetitive actions against competing U.S. carriers as a strategy to obtain pricing concessions regarding the exchange of international traffic. Specifically, the ISP requires that: (1) all U.S. carriers must be offered the same effective accounting rate and same effective date for the rate (“nondiscrimination”); (2) all U.S. carriers are entitled to a proportionate share of U.S.-inbound, or return traffic based upon their proportion of U.S.-outbound traffic (“proportionate return”); and (3) the accounting rate is divided evenly 50- 50 between U.S. and foreign carriers for U.S.-inbound and outbound traffic so that inbound and outbound settlement rates are identical (“symmetrical settlement rates”). 5 47 C.F.R. 63.10 (a) (3) and 43.51 note 3. See also Policies on Foreign Participation in the U.S. Telecommunications Market, Report and Order and Order on Reconsideration, IB Docket Nos. 97-142 and 95-22, FCC 97-398, 12 FCC Rcd 23891 at 23959, ¶¶ 161 (1997) (Foreign Participation Order). 6 1999 ISP Reform Order, 14 FCC Rcd at 7778-7981, ¶¶ 42-49; see also List of Foreign Telecommunications Carriers that Are Presumed to Possess Market Power in Foreign Telecommunications Markets, Public Notice, 14 FCC Rcd 7038 (1999) (issuing initial list of foreign carriers presumed to possess market power). 7 See Review of Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106, 16 FCC Rcd 22167 (2001) (Submarine Cable Landing License Order). 8 2004 ISP Reform Order 19 FCC Rcd at 5735-5736, ¶¶ 55-62. 3 The revised list is based on publicly available information, compiled from official sources, including the International Telecommunication Union.9 The list of “Foreign Carriers with Market Power” does not specifically identify all incumbent local exchange carriers that may operate in the destination markets listed below. However, all incumbent local exchange carriers that may operate in the markets are incorporated by reference on the list.10 Interested parties may challenge the inclusion or exclusion of any carrier on the list by submitting a petition for declaratory ruling and the appropriate supporting documentation to demonstrate that a carrier included on the list lacks market power or that a carrier not included does not lack market power. This list applies only for purposes of determining those foreign carriers that are subject to our ISP, our rules on providing switched services over private lines, and the No Special Concessions rules for U.S. international common carriers and cable landing licensees. It does not apply for purposes of market power determination under Sections 63.10 (regulatory classification of U.S. international carriers) or 63.18 (contents of applications for international common carriers). The list below will be posted on the International Bureau’s website at http://www.fcc.gov/ib. Destination Market Foreign Carriers with Market Power Afghanistan Ministry of Communications Albania Albtelecom Algeria Algeria Telecom Angola Angola Telecom Anguilla Cable & Wireless (Anguilla) Limited Antigua and Barbuda Cable & Wireless (Antigua) Limited Argentina Telcom Argentina S.A., Telefónica de Argentina S.A. Armenia Armentel Ascension Island Cable & Wireless (Ascension Islands) Australia Telstra Corporation Austria Telekom Austria Azerbaijan Aztelecom Bahamas Bahamas Telecommunications Corporation (BTC) Bahrain Bahrain Telecommunications Company (BATELCO) Bangladesh Bangladesh Telegraph & Telephone Board Barbados Barbados External Telecommunications Ltd. (BET) Belarus Beltelecom Belgium Belgacom Belize Belize Telecommunications Ltd. (BTL) 9 While the Commission’s staff attempts to maintain current information as to the names of carriers on this list, we encourage interested parties to advise the Commission on future name changes that may occur as a result of divestiture of national incumbent operators into regional operators or for other reasons. 10 See infra “Additional carriers included on this list.” 4 Benin Office des postes et télécommunications (OPT) Bermuda Cable & Wireless Bermuda Bhutan Bhutan Telecom Bolivia Empresa Nacional de Telecomunicaciones S.A. Bosnia and Herzegovina BH Telecom Botswana Botswana Telecommunications Corporation (BTC) Brazil Embratel British Virgin Islands Cable & Wireless (West Indies) Limited Brunei Jabatan Telecom Brunei Darussalam (JTB) Bulgaria Bulgarian Telecommunications Company (BTC) Burkino Faso Office National des Télécommunications (ONATEL) Burma Myanmar Posts & Telecommunications Burundi Office National des Télécommunications (ONATEL) Cambodia Directorate of Posts and Telecommunications (DPTK) Cameroon Société des Télécommunications Internationales du Cameroun (INTELCAM) Canada Aliant Inc., Bell Canada, Manitoba Telecom Services, SaskTel, Telus Communications Cape Verde Cabo Verde Telecom S.A. Cayman Islands Cable & Wireless (Cayman Islands) Limited Central African Rep. Société Centrafricaine des Télécommunications (SOCATEL) Chad Société des Télécommunications Internationales du Tchad (TIT) Chile Telefonica Chile China China Telecom, China Netcom Colombia Empresa Nacional de Telecomunicaciones Comoros Société Nationale des Postes et Télécommunications (SNPT) Congo Office National des Postes et des Télécommunications (ONPT) Costa Rica Instituto Costariccense de Electricidad (ICE) Côte d'Ivoire Côte d'Ivoire-TELECOM (CI-TELECOM) Croatia Hrvatsi Telecom (HT) Cuba Empresa Telecomunicaciones de Cuba S.A. (ETECSA) Cyprus Cyprus Telecommunications Authority Czech Rep. Telefónica O2 Czech Republic Dem. Rep. of Congo Office Congolais des Postes et des Télécommunications (OCPT) Denmark Tele Danmark A/S Diego Garcia Cable & Wireless Djibouti Djibouti Telecom Dominica Cable & Wireless (Dominica) Dominican Republic Verizon Dominicana Ecuador Andinatel Pacifictel Egypt Egypt Telecom El Salvador Compañía de Telecomunicaciones de El Salvador 5 Equatorial Guinea La Sociedad Anonima de Telecomunicaciones de la Republica de Guinea (GETESA) Eritrea Telecommunications Services of Eritrea (ERITEL) Estonia Elion Telephone Company Ethiopia Ethiopian Telecommunications Corporation (ETC) Falkland Islands Cable & Wireless Falkland Islands Fiji Cable & Wireless Fiji Finland TeliaSonera France France Telecom Gabon Gabon Telecom Gambia Gambia Telecommunications Company, Ltd. (GAMTEL) Georgia Sakartvelos Telekomi (Telecom Georgia) Germany Deutsche Telekom Ghana Ghana Telecommunications Company Greece Hellenic Telecommunications Organization (OTE) Grenada Cable & Wireless (Grenada) Guatemala Telecomunicaciones de Guatemala (Telgua) Guernsey Cable & Wireless Guernsey Ltd Guinea Société des Télécommunications de Guinée (SOTELGUI) Guinea-Bissau Companhia de Telecomunicaçoes da Guiné-Bissau, sarl (Guiné-Telecom) Guyana Guyana Telephone and Telegraph Ltd. Haiti HaiTel Holy See (Vatican City) Telecom Italia Honduras Empresa Hondureña de Telecomunicaciones (HONDUTEL) Hong Kong Pacific Century CyberWorks HKT Hungary Magyar Telekom Iceland Siminn (Iceland Telecom) India Videsh Sanchar Nigam Limited (VSNL) Indonesia PT Indosat Iran Telecommunications Company of Iran Iraq Ministry of Telecommunications Ireland eircom Israel Bezeq Italy Telecom Italia Jamaica Cable & Wireless Jamaica Japan KDDI Nippon Telegraph & Telephone Corporation (NTT) Jordan Jordan Telecommunications Corporation (JTC) Kazakhstan Kazakhtelecom Kenya Telkom Kenya Limited Kiribati Telecom Services Kiribati Limited Korea (South) Korea Telecom Korea (North) Pycompute Pyongyang 6 Kuwait Ministry of Communications Kyrgyszstan Kyrgyztelecom Laos Lao Telecom Company Latvia Lattelekom Lebanon Ministry of Posts and Telecommunications Lesotho Lesotho Telecommunications Corporation (LTC) Liberia Liberia Telecommunications Corporation Libya General Post and Telecommunications Company (GPTC) Liechtenstein Liechtenstein TeleNet Lithuania Lithuanian Telekom Luxembourg Luxembourg PTT Macau CTM Macedonia Makedonski Telecom (MT) Madagascar Telecom Malagasy (TELMA) Malawi Malawi Telecommunications Limited Malaysia Telecom Malaysia Maldives DHIRAAGU Mali Société des Télécommunications du Mali (SOTELMA) Malta Maltacom Marshall Islands National Telecommunications Authority Mauritania Mauritel Mauritius Mauritius Telecom Limited Mayotte France Telecom Mexico Telefonos de Mexico (TelMex) Micronesia FSM Telecommunications Moldova Moldtelecom Monaco France Telecom Mongolia Mongolia Telecommunications Company Monserrat Cable & Wireless (West Indies) Limited Morocco Maroc Telecom Mozambique Telecomunicaçoes de Moçambique Namibia Telecom Namibia Nauru Nauru Telcom Nepal Nepal Telecommunications Corporation Netherlands KPN Telecom N.V. Netherlands Antilles Antelecom N.V. New Zealand Telecom Corporation of New Zealand Ltd. (TCNZ) Nicaragua Enitel Niger Société nigérinne des télécommunications (SONITEL) Nigeria Nigerian Telecommunications Limited Norway Telenor Oman General Telecommunications Organization (GTO) Pakistan Pakistan Telecommunications Palau Palau National Communications Corporation (PNCC) Palestine Palestine Telecommunications Company P.L.C. (PALTEL) 7 Panama Cable & Wireless Panama Papua New Guinea Post & Telecommunications Corporation Paraguay COPACO Peru Telefónica del Peru Philippines Philippines Long Distance Telephone Company (PLDT) Poland Telekomunikacja Polska S.A. Portugal Portugal Telecom Qatar Qatar Public Telecommunications Corporation Réunion France Telecom Romania Romtelecom Russia Syazinvest Rwanda Rwandatel S.A. (RWANDATEL) St. Helena Cable & Wireless (St. Helena) St. Kitts and Nevis Cable & Wireless St. Lucia Cable & Wireless (St. Lucia) St. Maarten Sint Maarten International Telecommunications Services Limited (SMITCOMS, N.V.) St. Vincent and the Grenadines Cable & Wireless (St. Vincent and the Grenadines) Sakhalin Sakhalin Telecom Limited San Marino Telecom Italia Sao Tomé & Principe Companhia Santomense de Telecomunicações, s.a.r.l. (CST) Saudi Arabia Saudi Telecommunications Company Senegal Société Nationale des Télécommunications du Sénégal (SONATEL) Serbia and Montenegro Serbija Telecom Seychelles Cable & Wireless (Seychelles) Ltd. Sierra Leone Sierra Leone Telecommunications Company (SIERRATEL) Singapore Singapore Telecom Slovakia Slovak Telecom (ST) Slovenia Telekom Slovenije (TS) Solomon Islands Solomon Telekom Company Somalia Ministry of Posts and Telecommunications (Somtel) South Africa Telkom SA Limited Spain Telefónica Sri Lanka Sri Lanka Telecom Sudan Sudan Telecommunications Company Ltd. (Sudatel) Suriname Telesur Swaziland Swaziland Posts and Telecommunications Corporation (SPTC) Sweden TeliaSonera Switzerland Swisscomm Syria Syrian Telecommunications Establishment (STE) Taiwan Chunghwa Telecom Tajikistan Tajiktelecom Tanzania Tanzania Telecommunications Corporation Limited (TTCL) Thailand Communications Authority of Thailand (CAT) 8 Togo Société des Télécommunications du Togo (TOGO TELECOM) Trinidad and Tobago Telecommunications Services of Trinidad and Tobago (TSTT) Tunisia Tunisie Telecom Turks and Caicos Cable & Wireless (Turks and Caicos) Limited Turkey Turk Telekomunikasyon Turkmenistan Turkmentelecom Tuvalu Ministry of Labor, Works and Communications Uganda Uganda Telecommunications Limited (UTL) Ukraine Ukrtelecom United Arab Emirates The Emirates Telecommunications Corp. Ltd. (Etisalat) United Kingdom British Telecom Uruguay Administración Nacional de Telecomunicationes (ANTEL) Uzbekistan Uzbektelecom Vanuatu Vanuatu Telecom Venezuela Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) Vietnam Viet Nam Post and Telecommunications Corporation (VNPT) Western Samoa Postal and Telecommunications Department Yemen Yemen International Telecommunications Company (TELEYEMEN) Zambia Zambia Telecommunications Company Limited (Zamtel) Zimbabwe Posts and Telecommunications Corporation (PTC) Additional carriers included on this list: All incumbent local exchange carriers in the destination markets above. All carriers that control, are controlled by, or are under common control with, a carrier listed above in the particular destination market. For additional information, please contact David Strickland or Mark Uretsky, Policy Division, International Bureau, (202) 418-1460. -FCC-