Before the 
FEDERAL COMMUNICATIONS COMMISSION 
Washington, D.C. 20554 
In the Matter of ) 
) 
AT&T CORP. ) 
) 
MCI INTERNATIONAL, INC. ) 
) 
THE ST. THOMAS AND SAN JUAN ) 
TELEPHONE COMPANY, INC. ) 
) File No. S-<;;-L-96-003 
TELEFONICA LARGA DISTANCIA ) 
DE PUERTO RICO, INC. ) 
) 
Joint Application for a License to Land and ) 
Operate a Digital Submarine Cable System ) 
Between the United States Mainland ) 
and the Bahamas, the BAHAMAS II Cable ) 
System· ) 
CABLE LANDING LICENSE 
DA 96-1233 
Adopted: August 2, 1996 Released: August 6, 1996 
By the Chief, Telecommunications Division: 
I. In this Order, we grant the joint application of AT&T Corp. (AT&T), MCI 
International, Inc. (MCII), The St: Thomas and San Juan Telephone Company, Inc. (STSJ), and 
Telefonica Larga Distancia de Puerto Rico, Inc. (TLD) under the Cable Landing License Act1 for 
authority to land and operate a digital submarine cable (the BAHAMAS II cable system) extending 
between the United States Mainland and the Commonwealth of the Bahamas.2 We find that the Joint 
Applicants have provided sufficient information to comply with the Cable Landing License Act, and 
therefore grant the cable landing license, subject to the conditions below. 
2. On March 29, I 996, the Joint Applicants filed their application. It was placed on 
public notice on April 19, 1996. No comments were received. 
"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). · · 
In a companion order, we grant the Joint Applicants' application for Section 214 authority. (File No. 
l-T-C-96-234, DA 96-1234, adopted August 2, 1996.) 
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3. Each of the Joint Applicants is a corporation. AT&T is organized under the laws of 
the State of New York; MCII is organized under the laws of the State of Delaware; STSJ is organized 
under the laws of the U.S. Virgin Islands; and TLD is organized under the laws of the Commonwealth 
of Puerto Rico.3 Each of the Joint Applicants is a common carrier subject to the Communications A<'t · 
of 1934, as amended. All of the principa,l officers of the Joint Applicants are citizens of the United 
States. 
4. The proposed BAHAMAS II Cable System will extend from a landing point at Yero 
Beach, Florida to Nassau, the Bahamas, with an intermediate point at Eight Mile Rock, the Bahamas, 
for the purpose of lightwave amplification. BAHAMAS II will connect with the domestic networks in 
the continental United States and the B~amas. The proposed cable system will consist of four 
segments: A, B, C and D. Segments A will be locate~ in U.S. territory and will be provided and 
owned by AT&T. 
S. Segment A will consist of a cable station at Vero Beac.h, Florida. Segment B will 
consist of a structure to house amplification equipment at Eight Mile Rock, the Bahamas. Segment C 
will consist of the cable station at Nassau, the Bahamas. Segment D will comprise the whole of the 
submarine cable linking Segments A, Band C, and consist of Subsegments DI, D2 and D3. 
Subsegment DI will consist of five fiber pairs linking the cable station at Vero Beach with the passive 
branch joint, a submerged device composed of a housing and any associated equipment to serve as a 
junction point for the undersea cable. Subsegment D2 will consist of five fiber pairs linking the 
passive branch joint to the structure at Eight Mile Rock, and five fiber pairs linking back to the 
passive branch joint. Subsegment D3 will consist of five fiber pairs linking the passive branch joint to 
the cable station at Nassau. 
6. The Joint Applicants state that BAHAMAS II will consist of five optical fiber pairs. 
Initially, only one fiber pair will be equipped and will operate at 2.5 gigabits per second (Gbps). The 
capacity of each fiber pair will be comprised of sixteen 155 megabits per second (Mbps) Basic System 
Modules (BSMs) with each BSM containing sixty-three Minimum Investment Units (MIUs), for a total 
capacity, on each fiber pair, of 1008 MIUs.4 For vvice telephone requirements, digital circuit 
multiplication equipment can be applied to derive nominally five times the original number of voice 
paths. BAHAMAS 11 will be connected to suitable facilities which will provide access to the domestic 
networks in each country or territory. In addition, BAHAMAS II will be extended by suitable 
facilities to the terminals of other international communications systems, including other cable 
terminals and satellite earth stations. This will enable BAHAMAS II to be used for services between 
Seventy-nine percent of TLD's stock is owned by Telef6nica International Holding, B.V. (TI Holding); 
nineteen percent of TLD's stock is owned by the Puerto Rico Telephone Authority (PRTA); and two 
percent is held in an employee stock ownership plan. TI Holding is a Netherlands corporation which is 
a wholly owned subsidiary of Telef6nica Internacional de Espana, S.A. (Tl), a corporation organized 
under the laws of Spain. TI, in tum, is majority-owned by Telef6nica de Espana, S.A., the monopoly 
provider of domestic and international communications services in Spain. See Attachment C. 
The· Joint Applicants have defined an "MIU" as a unit of ownership of 2.048 Mbps digital stream jointly 
assigned between two parties, or wholly owned by one party. Joint Application at 3. 
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and among the U.S. Mainland, the Bahamas and points beyond.5 
7. Consistent with our decisions regarding TLD's partiCipation in the COLUMBUS II, 
AMERICAS-I and ANTILLAS cable systems, we do not require TLD to make a reciprocity showing 
under the Cable Landing License Act.6 Based on TLD's foreign affiliate certification, TLD does not 
have any affiliates in the Bahamas, and thus we decline to require such a showing in this case. 
8. Pursuant to our obtigations under 47 U.S.C. §§_ 34-39, the Department of State has 
been notified of this application. After having coordinated with the National Telecommunications and 
Infonnation Administration and the Department of Defense, the Department of State stated that they 
have no objection to the issuance of the cable landing license for the BAHAMAS II.' 
9. Based on the infonnation provided by the Joint Applicants, we conclude that the grant 
of the requested authorization will not have a significant effect on the environment as defined in 
Section 1.1307 of the Commission's Rules and Regulations implementing the National Environmental 
Policy Act of 1969, 42 U.S.C. §§ 4321-4335. Consequently, no environmental assessment is required 
to be submitted with these applications under Section 1.13 I I of the Commission's Rules. 
10. We find that the proposed BAHAMAS II cable system is in· the public interest. 
Therefore, we grant to the Joint Applicants a cable landing license for the BAHAMAS II cable 
system. 
ORDERING CLAUSES 
11. Consistent with the foregoing, the Commission hereby GRANTS AND ISSUES, under 
the provisions of the Cable Landing License Act, 47 U.S.C. §§ 34-39, and Executive Order 10530, 3 
C.F.R. §§ 1954-1958, to the Joint Applicants, AT&T, MCII, STSJ and TLD a license to land and 
operate one high capacity digital submarine cable system between and among Vero Beach, Florida and 
Nassau, ·the Bahamas, comprised of five optical fiber pairs, each having a capacity of sixteen 155 
Mbps BSM with each BSM containing sixty-three MIUs for a total capacity, on each fiber pair, of 
I 008 MIUs. This license is subject to all rules and regulations of the Federal Communications 
Commission; any treaties or conventions relating to communications to which the United States is or 
may hereafter become a party; any action by the Commission or the Congress of the United States 
The BAHAMAS II cable system will be owned by the Joint Applicants and foreign telecommunications 
entities in the Bahamas, Barbados, Canada, Dominican Republic, and Trinidad and Tobago. Joint 
Application at 4. 
See, e.g., Telefonica Largo distancia de Puerto Rico, Inc., 9 FCC Red 4041 (1994). 
The Department of State notes the absence of any ownership interest by TLD in the Bahamas. It also 
states that its position on this application is without prejudice to on-going consideration of other pending 
license applications, including those of the applicants herein. Letter from Michael T.N. Fitch, Deputy 
U.S. Coordinator, Office of International Communications and Information Policy to Donald H. Gips. 
Acting Chief, International Bureau, Federal Communications Commission (Aug. 2, 1996). 
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rescinding, changing, modifying or amending any rights accruing to any person hereunder; and the 
following conditions: 
(1) The location of the cable within the territorial waters of the United States of America, its 
territories and possessions, and upon its shore, shall be in conformity with plans approved by 
the Secretary of the Army, and the cable shall be moved or shifted by the Licensees at their 
expense upon the request of the Secretary of the Army whenever he or she considers such 
course necessary in the public interest, for reasons of national defense, or for the maintenance 
or improvement of harbors for navigational purposes; 
(2) The Licensees 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 with a view of protecting and safeguarding the cable from injury or 
destruction by enemies of the United States of America; 
(3) The Licensees or any persons or companies directly or indirectly controiling it or 
controlled by it, or under direct or indirect common control with it, shall not acquire or enjoy 
any right, for the purpose of handling or interchanging traffic to or from the United States, its 
territories or possessions, to land, connect or operate cables or landlines, to construct or 
operate radio stations, or to interchange traffic, which is denied to any other United States 
carrier by reason of any concession, contract, understanding, or working arrangement to which 
the Licensees or any persons controlling it or controlled by it are parties; 
(4) Neither this license nor the rights granted herein, shall be transferred, assigned, or in any 
manner either voluntarily or involuntarily disposed of or disposed of indirectly by transfer of 
control of the Licensees to any persons, unless the Federal Communications Commission shall 
give prior consent in writing; 
(5) The Licensees shall maintain 100 percent ownership in the cable stations in the United 
States and in the U.S. land portion of the cable froin the station to the U.S. beach joint of the 
submersible portion of the proposed cable; 
(6) This license is revocable after due notice and opportunicy for hearing by the Commission 
in the event of breach or nonfulfillment of any requirements specified in Section 2 of "An Act 
Relating to the Landing and Operation of Submarine Cables in the United States," 47 U.S.C. 
Sections 34-39, or for failure to comply with the terms of the authorizations; 
(7) The Licensees shall notify the Commission in writing of the date on which the cable is 
placed in service and this license shall expire 25 years from such date, unless renewed or 
extended upon proper application and, upon expiration of this license, all rights granted under 
them shall be terminated; and 
(8) The terms and conditions upon which this license is given shall be accepted by the 
Licensees by filing a letter with the Secretary, Federal Communications Commission, 
Washington, D.C. 20554, within 30 days of the release of this cable landing license. · 
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12. This Order is issued under Section 0.261 of the Commission's Rules 
and is effective upon release. Petitions for reconsideration under Section I. I 06 or applications for 
review under Section 1.11 S of the Commission's Rules may be filed within 30 days of the date of 
public notice of this order (see 47 C.F.R 1.4(bX2)). 
FEDERAL COMMUNICATIONS COMMISSION 
~~.oi-c;~ /. '2-+:;~ 
Diane J. Cornell 
Telecommunications Division 
International Bureau 
9192