PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
445 12th STREET S.W.
WASHINGTON  D.C.  20554
News media information 202-418-0500
Fax-On-Demand 202-418-2830; Internet: http://www.fcc.gov (or ftp.fcc.gov)
TTY (202) 418-2555
DA No. 08-2082
Thursday  September 11, 2008SCL-00075    Report No.
Section 1.767(a) Cable Landing Licenses, Modifications, and Assignments or Transfers of Control of Interests in
Cable Landing Licenses (47 C.F.R. § 1.767(a))
ACTIONS TAKEN UNDER CABLE LANDING LICENSE ACT
By the Chief, Policy Division, International Bureau:
Pursuant to An Act Relating to the Landing and Operation of Submarine Cables in the United States, 47 U.S.C. §§
34-39 (Cable Landing License Act), Executive Order No. 10530, Exec. Ord. No. 10530 reprinted as amended in 3
U.S.C. § 301, and section 1.767 of the Commission's rules, 47 C.F.R. § 1.767, the following applications ARE
GRANTED.  These grants of authority are taken under section 0.261 of the Commission's rules, 47 C.F.R. § 0.261.
Petitions for reconsideration under section 1.106 or applications for review under section 1.115 of the Commission's
rules, 47 C.F.R. §§ 1.106, 1.115, may be filed within 30 days of the date of this public notice.
This public notice serves as each cable landing licensee's Cable Landing License, or modification thereto, pursuant to
the Cable Landing License Act and sections 1.767 and 1.768 of the Commission's rules.  Cable landing licensees should
review carefully the terms and conditions of their licenses.   Failure to comply with these terms and conditions or
relevant Commission rules and policies could result in fines or forfeitures.
The Commission most recently amended its rules applicable to submarine cable landing licenses in Review of
Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106, FCC 01-332,
16 FCC Rcd 22167 (2001), 67 Fed. Reg. 1615 (Jan. 14, 2002).  An updated version of sections 1.767 and 1.768 of the
rules is available at http://www.fcc.gov/ib/pd/pf/telecomrules.html.  See also
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-598A1.pdf for a March 13, 2002 Public Notice;
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-01-332A1.pdf for the December 14, 2001 Report and Order.
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SCL-LIC-20080213-00001 E
Date of Action: 09/10/2008
Acceptability for Filing Public Notice: The Application was placed on Public Notice on June 2, 2008. See PPC 1 Limited and PPC 1 (US) Inc.,
Application for a license to land and operate a non-common carrier fiber-optic submarine cable system, the PPC 1 System, connecting Sydney,
Australia, Piti, Guam and Mandag, Papua New Guinea, File No. SCL-LIC-20080213-00001, Public Notice, Non-Streamlined Submarine Cable
Landing License Applications Accepted for Filing, Report No. SCL-00064NS (Int'l Bur., June 2, 2008). No oppositions or other comments were
filed in response to the Public Notice. The Application has been coordinated with the Department of State and other relevant Executive Branch
agencies pursuant to section 1.767(b) of the Commission's rules, 47 C.F.R. §1.767(b), and consistent with procedures established with the
Department of State. See Review of Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106,
Report and Order, 16 FCC Rcd 22167, 22192-93, 51-52 (2001) (Submarine Cable Landing License Report and Order); Streamlined Procedures
for Executive Branch Review of Submarine Cable Landing License Requests, State Department Media Note (Revised) (rel. Dec. 20, 2001)
available at http://www.state.gov/r/pa/prs/ps/2001/6951.htm. The Department of Homeland Security and the Department of Justice filed a Petition
to Adopt Conditions to Authorizations and Licenses on September 8, 2008.
Actions Taken: (1) Grant of Cable Landing License to PPC 1 Limited and PPC 1 (US) Inc. for the purpose of landing and operating a
non-common carrier fiber-optic submarine cable system, the PPC 1 System, connecting Australia, Guam and Papua New Guinea, and (2) waiver
of section 1.767(h)(1) of the Commission's rules, 47 C.F.R. § 1.767(h)(1), in connection with the License.
Licensee Information: PPC 1 (US), Inc. will construct, own, and operate the shore-end and wet-link portions in the United States, including in
U.S. territorial waters, of the segment connecting Sydney, Australia with Piti, Guam ("Australia-Guam Trunk"). PIPE International (Australia)
Pty. Ltd. will construct, own, and operate the wet-link and shore-end portions of the Australia-Guam Trunk in Australia, including in Australian
territorial waters, and will own the cable station at Cromer, New South Wales. PPC 1 Limited will construct, own, and operate the wet-link
portions of the Australia-Guam Trunk outside the territorial waters of the United States and Australia, and will construct, own, and operate the
wet-link and shore-end portions of the segment connecting Madang, Papua New Guinea with a branching unit located on the Australia-Guam
Trunk (“PNG Spur”), including in Papua New Guinea territorial waters. Telkom PNG Limited will own the cable station in Madang, Papua New
Guinea.
PPC 1 (US) Inc. is a corporation organized under the laws of the State of Delaware and is a direct, wholly-owned subsidiary of PPC 1 Limited.
PPC 1 Limited is a limited-liability company organized under the laws of Bermuda and is a direct, wholly-owned subsidiary of PIPE International
Pty Ltd. ("PIPE International"), an Australian company. PIPE International is a direct, wholly-owned subsidiary of PIPE Networks Limited
("PIPE Networks"), a widely-held, publicly traded Australian company. Stephen Ross Baxter and Bevan Slattery, both Australian citizens, hold
18% and 14 % of the ordinary shares of PIPE Networks, respectively. There are no other ten percent or greater direct or indirect owners of PIPE
Networks, PPC 1 Limited or PPC 1 (US) Inc.
Cable Design and Capacity: The proposed PPC 1 System will be a non-common carrier fiber-optic submarine cable system, connecting Australia,
Guam and Papua New Guinea. The PPC 1 System consists of two segments of digital fiber-optic cable: (1) the Australia-Guam Trunk, connecting
Sydney, Australia with Piti, Guam; and (2) the PNG Spur, connecting Madang, Papua New Guinea with a branching unit located on the
Australia-Guam Trunk. There will be an additional branching unit allowing for a future connection to Popondetta, Papua New Guinea.
The Australia-Guam Trunk will consist of two optical fiber pairs, with a design capacity of 96 wavelengths (10 Gbps) on each fiber pair, for a
total design capacity of 1.92 Tbps. The initial configuration of the Australia-Guam Trunk will provide a total of 140 Gbps of capacity. The initial
configuration of the PNG Spur will provide a total of 20 Gbps of capacity, 10 Gbps on the Papua New Guinea-Guam route and 10 Gbps on the
Papua New Guinea-Australia route.
Cable Landing Point Arrangements: The PPC 1 System will use the existing cable station at Piti, Guam, which is owned by VSNL International
(Guam) Inc. ("VSNL Guam"). PPC 1 (US) Inc. will enter into an agreement with VSNL Guam giving PPC 1 (US) Inc. a long-term lease in VSNL
Guam's ducts and conduits connecting the PPC 1 system's Guam beach landing with the Piti cable station and a long-term lease in the collocation
space in the Piti cable station building. PPC 1 (US) Inc. will have exclusive control over and access to PPC 1 System terminal equipment.
Equipment for the PPC 1 System will be separately caged and controlled exclusively by the Applicants from their network operations center in the
Cromer cable station in Sydney, Australia. See Letter from Kent D. Bressie, Counsel for PPC 1 Limited and PPC 1 (US), Inc., to Marlene H.
Dortch, Secretary, FCC, dated May 9, 2008, at 1.
Section 1.767(h) requires that "any entity that owns or controls a cable landing station in the United States" shall be "applicants for, and licensees
on, a cable landing license." The purpose of this requirement is to ensure that entities having a significant ability to affect the operation of the
cable system become licensees so that they are subject to the conditions and responsibilities associated with the license. See Submarine Cable
Landing License Report and Order, 16 FCC Rcd at 22194-95, paras. 53-54.  VSNL Guam owns the existing cable station at Piti, Guam, but will
not be able to affect significantly the operation of the PPC 1 System. The Applicants will retain operational authority over PPC 1 System facilities
and provide direction to VSNL Guam in all matters relating to the PPC 1 System. Pursuant to a collocation agreement between the Applicants and
VSNL Guam, VSNL might, but only at the Applicants' request, perform certain limited "remote hands" maintenance services on the Applicants'
equipment. Id. at 2-3. See 47 C.F.R. § 1.767(h)(1).  Accordingly, we grant Applicants a waiver of section 1.767(h)(1) and do not require VSNL
Guam to be on this Cable Landing License.
Regulatory Status of Cable: The Applicants will operate the PPC 1 Cable system on a non-common carrier basis. Applicants state they will make
capacity on the PPC 1 system available to other carriers, Internet service providers, and large end users on an indefeasible right-of-use (IRU) or
leased-capacity basis. The capacity will not be sold indifferently to the user public, but will be assigned pursuant to individualized decisions and
tailored arrangements based on the needs of the individual capacity purchaser. Applicants also contend that there is sufficient existing or planned
facilities on the routes or on alternative routes to prevent it from exercising market power in offering services. See Application at 5-8.
Applicants have provided information and demonstrated that the proposed operation of the cable on a non-common carrier basis satisfies the
requirements set forth in National Association of Regulatory Utility Commissioners v. FCC, 525 F.2d 630, 642 (D.C. Cir 1976) (NARUC I), cert.
denied, 425 U.S. 992 (1976). See also Submarine Cable Landing License Report and Order, 16 FCC Rcd at 22202-22203, paras. 69-70; Review
of Commission Consideration of Applications under the Cable Landing License Act IB Docket No 00-106 Notice of Proposed Rulemaking 15
Grant of Authority
Submarine Cable Landing License
PPC 1 Limited
Page 2 of 3
of Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00 106, Notice of Proposed Rulemaking, 15
FCC Rcd 20789, 20815-20818, paras. 62-67.
Conditions and Requirements: Applicants shall comply with the routine conditions set out in section 1.767(g)(1)-(14) of the Commission's rules,
47 C.F.R. § 1.767(g)(1)-(14), and with the requirements of section 1.768 of the Commission's rules, 47 C.F.R. § 1.768 (notifications and prior
approval for submarine cable landing licensees that are or propose to become affiliated with a foreign carrier).
Applicants "shall at all times comply with any requirements of United States government authorities regarding the location and concealment of the
cable facilities, buildings, and apparatus for the purpose of protecting and safeguarding the cables from injury or destruction by enemies of the
United States of America." 47 C.F.R. § 1.767(g)(3). The International Bureau will inform the licensees of specific requirements in connection
with this condition.
We grant the Petition to Adopt Conditions to Authorizations and Licenses (Petition) filed in this proceeding on September 8, 2008 by the
Department of Homeland Security and the Department of Justice (collectively, the "Executive Branch Agencies"). Accordingly, we condition
grant of this application on PPC 1 Limited and PPC 1 (US) Inc., abiding by the commitments and undertakings contained in their September 4,
2008, Agreement with the Executive Branch Agencies. A copy of the Petition and the September 4, 2008 Agreement are publicly available and
may be viewed on the FCC website through the International Bureau Filing System (IBFS) by searching for SCL-LIC-20080213-00001 and
accessing "Other filings related to this application" from the Document Viewing area.
Applicants agree to accept and abide by the routine conditions specified in section 1.767(g) of the Commission's rules, 47 C.F.R. § 1.767(g).
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