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 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT:  October  8,  2003  David  Fiske,  202-  418-  0513 
 GLOBAL  CROSSING  TRANSACTION  APPROVED 
 Washington,  D.  C.--  Consistent  with  established  Commission  precedent,  today,  Global  Crossing  received  approval  to  transfer  control  of  its  FCC  authorizations  and  licenses  to  GC  Acquisition  Limited  (New  GX). 
 In  a  joint  decision,  the  International  Bureau,  Wireless  Telecommunications  Bureau  and  Wireline  Competition  Bureau  (Bureaus)  found  that  grant  of  the  applications  would  be  in  the  public  interest,  subject 
 to  certain  conditions. 
 Global  Crossing  subsidiaries  hold  FCC  domestic  and  international  Section  214  authorizations,  interests  in  submarine  cable  landing  licenses  and  certain  radio  licenses.  Through  its  subsidiaries,  Global  Crossing, 
 which  is  organized  under  the  laws  of  Bermuda  with  principal  offices  in  New  Jersey,  owns  and  operates  a  global  fiber  optic  network  that  provides  integrated  telecommunications  services,  including  data,  voice  and 
 Internet  services  to  various  users.  The  Bureaus  found  that  the  continued  operation  of  the  Global  Crossing  subsidiaries  will  benefit  competition  by  preventing  discontinuance  of  service  and  providing  customers 
 choices  among  providers  of  telecommunications. 
 As  proposed,  under  the  transaction,  Global  Crossing  will  transfer  substantially  all  of  its  assets  and  operations,  including  its  ownership  interests  in  subsidiaries  holding  FCC  licenses,  to  New  GX.  New  GX 
 was  formed  under  the  laws  of  Bermuda  for  the  purposes  of  carrying  out  the  reorganization  of  Global  Crossing  under  Chapter  11  of  the  U.  S.  Bankruptcy  Code  and  Bermuda  insolvency  law.  Singapore 
 Technologies  Telemedia  Pte  Ltd  (ST  Telemedia)  will  obtain  common  and  preferred  stock  equal  to  a  controlling  interest  of  61.5  percent  of  New  GX’s  equity  and  voting  interests.  Certain  pre-  petition 
 creditors  of  Global  Crossing  (Creditor  Shareholders)  will  receive  38.  5  percent  of  New  GX  common  stock. 
 The  U.  S.  Bankruptcy  Court  for  the  Southern  District  of  New  York  has  approved  Global  Crossing’s  plan  of  reorganization,  which,  among  other  things,  includes  the  transaction  involving  ST  Telemedia  and  the 
 Creditor  Shareholders  that  is  the  subject  of  the  FCC  applications  granted  today.  (Originally,  the  plan  included  Hutchison  Telecommunications  Ltd.  as  a  joint  investor  with  ST  Telemedia,  but  that  party 
 subsequently  withdrew.) 
 Competition  Factors.  The  Bureaus’  Order  and  Authorization  (Order)  concludes  that  no  anticompetitive  effects  will  result  from  the  transaction.  The  operating  subsidiaries  of  ST  Telemedia  do  not  provide  U.  S. 
 interstate  services,  and  thus  the  transaction  will  not  result  in  any  increase  in  concentration  of  market  power  in  the  U.  S.  domestic  interstate  markets.  The  Order  finds  that  the  activities  of  Global  Crossing  and 
 those  of  the  subsidiaries  of  ST  Telemedia  and  its  affiliates  largely  do  not  overlap  in  the  U.  S.  international  market.  ST  Telemedia’s  subsidiaries  and  affiliates  either  do  not  control  bottleneck  facilities  and 
 otherwise  do  not  have  the  ability  to  affect  competition  in  the  U.  S.  telecommunications  services  market,  or,  in  the  case  of  the  U.  S.-  Singapore  and  U.  S.-  Indonesia  routes,  their  market  power  will  be  constrained  by 
 the  imposition  of  dominant  carrier  safeguards  on  the  FCC-  licensed  subsidiaries  that  provide  international  telecommunications  services  on  these  routes.  (ST  Telemedia’s  affiliate  Singapore  Telecommunications 
 Ltd.  (SingTel)  has  market  power  in  Singapore  and  its  subsidiary  PT  Indonesian  Satellite  Corporation 
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