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. 09-408
Friday  February 20, 2009SCL-00081    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.
Page 1 of 3
SCL-LIC-20080603-00011 E
Date of Action: 02/13/2009
Acceptability for Filing Public Notice:  The Application was placed on Public Notice on July 18, 2008.  See MFS CableCo US, Inc. and Cedar
Cable Ltd. Application for Authority to Operate a Non-Common Carrier Fiber-Optic Submarine Cable System extending between the United
States and Bermuda, the CB-1 System, File No. SCL-LIC-20080603-00011, Non-Streamlined Submarine Cable Landing License Applications
Accepted for Filing Public Notice, Report No. SCL-00070NS (Int'l Bur., July 18, 2008).  No comments or oppositions to the application were
filed in response to the Public Notice.
The Application has been coordinated with the Department of State and other 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, 22192-193,
paras. 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.html  The Department of Homeland Security and the Department of Justice filed a Petition to Adopt
Conditions to Authorizations and Licenses on February 13, 2009.
Actions Taken:  Grant of Cable Landing License to MFS CableCo US, Inc. ("Verizon") and Cedar Cable Ltd. ("Cedar", collectively with Verizon,
the "Applicants") for the purpose of operating a non-common carrier fiber-optic submarine cable system extending between the United States and
Bermuda, the CB-1 System.
Licensee Information:  MFS CableCo US, Inc. is an indirect, wholly-owned subsidiary of Verizon Communications.  Verizon Communications is
a publicly traded company in which no person or entity holds a 10 percent or greater direct or indirect equity or voting interest.
Cedar is a company organized under the laws of Bermuda. Cedar is 67% owned by Chancery Holdings Limited, a wholly-owned subsidiary of
KeyTech Limited ("KeyTech"), and 33% owned by Connect Ltd. ("Connect"), all of which are organized in Bermuda. KeyTech is publicly traded
on the Bermuda Stock Exchange and owns The Bermuda Telephone Company Limited, Bermuda's incumbent local telecommunications provider.
Utilico Investment Trust PLC, a UK investment company publicly traded on the London Stock Exchange, holds a 12.1% voting and equity
interest in KeyTech. Utilico Investment Trust PLC is in turn 50.1% owned by General Provincial Life Pension Fund (L) Limited ("GPLPF"), a
Malaysian holding company whose trustees control the entire issued share capital of GPLPF and whose sole beneficiary is Carmelita Naomi
Roamer, a British citizen residing in South Africa.
Connect Ltd., a Bermuda Internet Service Provider, is wholly owned by North Rock Communications Ltd., a Bermuda holding company, which in
turn is 78.2% owned by North Rock Ventures Ltd., also a Bermuda holding company. North Rock Ventures Ltd. is wholly owned by Halney
Limited, a Bermuda holding company acting as a nominee company for two Bermudian citizens.
Cable Design and Capacity:  The CB-1 System will utilize the northern portion of the Gemini System, which was retired and deactivated on
December 29, 2004. The Gemini System was comprised of two submarine segments, a northern segment between Rhode Island and the United
Kingdom ("Gemini North") and a southern segment between New Jersey and the United Kingdom ("Gemini South"). The northern segment will
be recovered and redeployed to a landing station in Paget, Bermuda. This redeployment will not disturb the existing buried submarine cable from
the U.S. landing point in Charlestown, Rhode Island to a divert point in 2200 meter water depth. A short section of the cable will be recovered
from the divert point out to the 200 nautical mile exclusive economic zone of the United States ("200 nautical mile economic zone").
The initial capacity of the CB-1 cable system will be 20 Gbps, one active fiber pair carrying 4 x 10 Gbps traffic streams as two "collapsed loops"
creating 2 x 10 Gbps traffic streams. Another fiber pair will initially be inactive to be used as standby. The use of new technology over the
existing wet plant could extend the CB-1 System's design capacity to 160 Gbps per fiber pair.
Ownership of the Cable System and Landing Points:  Verizon will own: (1) the physical part of the submarine cable up to the 200 nautical mile
economic zone; (2) the Charlestown, Rhode Island cable station building; (3) the terrestrial cable located in the United States between the beach
manhole and the Charlestown, Rhode Island cable station; (4) the U.S. terminal equipment; and (5) the U.S backhaul. Cedar will own all of the
CB-1 System capacity within the 200 nautical mile economic zone. Verizon will grant Cedar an IRU for (1) use of the submarine cable and
repeaters from the Charlestown, Rhode Island beach manhole to the 200 nautical mile economic zone; (2) use of the terrestrial cable from the
beach manhole to the Charlestown, Rhode Island cable station; and (3) use of the terminal equipment in the Charlestown, Rhode Island cable
station. Cedar will own the multiplexing equipment to be located at 60 Hudson Street, New York, New York.
Cable Co., a Bermuda company under the same ownership structure as Cedar, will own both the physical part and all the capacity of the CB-1
System from Bermuda to the 200 nautical mile economic zone. In Bermuda, The Bermuda Telephone Company Limited ("BTC"), the incumbent
local telecommunications provider in Bermuda and an affiliate of Cedar and Cable Co., will own the Paget cable station, the backhaul, and the
Hamilton Exchange, where end users will have fiber access to connect to the cable system. Cable Co. will own the equipment in both the
Hamilton Exchange and the Paget cable station, and receive from BTC an end-to-end cable support service which will include the route from
Devonshire Bay (where the beach manhole will be located) to the Paget cable station and on to the Hamilton Exchange. Cable Co. will be
responsible for the maintenance of the wet plant of the CB-1 System, jointly cooperating with Verizon for the maintenance of the CB-1 System
cable and repeaters located within U.S. territorial waters.
Regulatory Status of Cable: The Applicants will operate the CB-1 System on a non-common carrier basis.  They state that there are sufficient
existing or planned facilities on the route or on alternative routes to prevent them from exercising market power. They also state that capacity will
not be sold indifferently to the user public, but will be used by the Applicants and offered to other carriers on terms tailored to their particular
needs.  Application at 7-9.
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
Cedar Cable Ltd.
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, at 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.
See 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.
Cedar is affiliated with a carrier in Bermuda, a World Trade Organization Member country, and agrees to accept and abide by the reporting
requirements in section 1.767(l) of the Commission's rules, 47 C.F.R. § 1.767(l), for the U.S. - Bermuda route.
We grant the Petition to Adopt Conditions to Authorizations and Licenses (Petition) filed in this proceeding on February 13, 2009, by the
Department of Homeland Security and the Department of Justice.  Accordingly, we condition grant of this application on Verizon Business
Global, LLC and its affiliates abiding by the commitments and undertakings contained in their February 11, 2009, Agreement with the
Department of Homeland Security. A copy of the Petition and the February 11, 2009, Agreement are publicly available and may be viewed on the
FCC website through the International Bureau Filing System (IBFS) by searching for SCL-LIC-20080603-00011 and accessing "Other filings
related to this application" from the Document Viewing area.
Page 3 of 3