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 Thursday July 2, 2009SCL-00089NS Report No. ACCEPTED FOR FILING NON-STREAMLINED SUBMARINE CABLE LANDING LICENSE APPLICATIONS Unless otherwise specified, the following procedures apply to the applications listed below: The applications listed below have been found, upon initial review, to be acceptable for filing. These applications are not subject to the streamlined processing procedures set forth in Section 1.767 of the Commission’s rules, 47 C.F.R. § 1.767. Unless otherwise specified, interested parties may file comments with respect to these applications within 28 days of the date of this public notice. We request that such comments refer to the application file number shown below. Unless otherwise specified, ex parte communications between outside parties and Commission staff concerning these applications are permitted subject to the Commission’s rules for “permit-but-disclose proceedings.” See 47 C.F.R. § 1.1206. Copies of all applications listed here are available for public inspection in the FCC Reference and Information Center, located in room CY-A257 at the Portals 2 building, 445 12th Street SW, Washington DC 20554. The center can be contacted at (202) 418-0270. People with Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty). All applications listed are subject to further consideration and review, and may be returned and/or dismissed if not found to be in accordance with the Commission’s rules, regulations, and other requirements. Page 1 of 2 REMINDER: Applicants must certify that neither the applicant nor any party to the application is subject to a denial of federal benefits by federal and/or state courts under authority granted in 21 U.S.C. § 862. See 47 C.F.R. §§ 1.2001–.2003. An updated version of Section 1.767 of the rules, and other related sections, is available at http://www.fcc.gov/ib/pd/pf/telecomrules.html SCL-LIC-20081008-00017 E Application filed by Office des postes et télécommunications de Polynésie française ("OPT") for authority to land and operate a common carrier fiber-optic submarine cable system directly linking the United States and French Polynesia, the Tahiti-Hawaii Cable System ("Honotua System"). This will be the first fiber-optic submarine cable connecting French Polynesia to the United States. The Application states that the Honotua System will span 4,650 kilometers (2,890 miles), linking a new cable station in Papenoo, French Polynesia, which is owned by OPT, to the Spencer Beach cable landing station in Kawaihae, Hawaii, which is owned and operated by Pacific LightNet, Inc. ("PLNI"). The Honotua System will provide transmission capacity of up to 1.28 terabits per second between French Polynesia and Hawaii. From Hawaii, the Honotua System will interconnect with other cable systems providing direct access to the United States mainland. The Application states that OPT will own the entire proposed cable system, including each of its segments, wet links and landing stations. The landing point in Papenoo, French Polynesia, is an existing telecommunications center, but a new cable station. The Honotua System will utilize the existing beach manhole and the existing conduit between the beach manhole and the cable station. The Honotua System will be installed in a new underground conduit between the cable station and the beach manhole. For the U.S. landing point, OPT has entered into an agreement with PLNI to use the Spencer Beach cable landing station in Kawaihae, Hawaii, which is owned by PLNI. The Honotua System will utilize the existing beach manhole and the existing conduit between the beach manhole and the cable station. The Honotua System will be installed in the existing conduit between the cable station and the beach manhole. Applicant requests a waiver of section 1.767(h)(1) which requires that "any entity that controls a cable landing station in the United States" shall be "applicants for, and licensees on, a cable landing license." 47 C.F.R. § 1.767(h)(1). Amended Application at 2. According to the Applicant, PLNI will not be able to affect significantly the operation of the Honotua System, and it is not necessary for PLNI to be a licensee to ensure compliance with the Cable Landing License Act, the Commission's rules or the terms of the cable landing license. Id. at 12. The Applicant states that OPT has entered into a landing party agreement ("LPA") with PLNI pursuant to which OPT will have exclusive control over and access to Honotua System terminal equipment, which OPT will collocate at the Kawaihae cable station building. Equipment for the Honotua System will be separately caged and controlled exclusively by the Applicant from its network operations center in French Polynesia. The Applicant will retain operational authority over Honotua System facilities and provide direction to PLNI in all matters relating to the Honotua System. Pursuant to the LPA, PLNI will perform certain limited "remote hands" monitoring, testing, and maintenance services on OPT's equipment, which will be performed in accordance with OPT's directions. Id. at 12. OPT is an établissement public (in English, "public establishment") headquartered in Tahiti and existing under the laws of French Polynesia. French Polynesia is an overseas territory of France. OPT is wholly owned by the Government of French Polynesia, but financially autonomous from the national government. As such, OPT is subject to regulation and oversight by the Chambre territoriale des comptes de la Polynésie française ("CTC") and ultimate government control. OPT is administered by a Board of eight members, all of whom are citizens of French Polynesia. Applicant agrees to be classified as a dominant carrier to French Polynesia under Section 63.10 of the Commission's rules, without prejudice to its right to petition for reclassification at a later date. See ITC-214-20081008-00453 (companion section 214 application to construct, acquire, and operate capacity in the Honotua System). Applicant requests, however, a waiver of section 63.10(c) which requires "any carrier classified as dominant for the provision of particular services on particular routes" to provide service along such route "as an entity that is separate from its foreign carrier affiliate…." 47 C.F.R. § 63.10(c)(1). Amended Application at 2. According to Applicant, OPT cannot create a separate subsidiary without exposing itself to unacceptable legal and financial risk. Applicant states that the creation of new subsidiaries by OPT is unlawful under Article 30 of la loi organique (French Polynesia's constitution). Id. at 4. See also id., n.4 (stating that the French Polynesian Government may establish an OPT subsidiary in circumstances where there is a joint venture with a private-sector entity, which is not the case with the government-owned Honotua System). With respect to financial risk, Applicant states that OPT has secured three outside sources of funding with the understanding that OPT will control and operate the Honotua System in its entirety. Id. at 6-7. Applicant argues that a transfer of ownership or operation would likely require renegotiation which in today's deteriorating credit market could result in the withdrawal of funding altogether. It also states that OPT has already drawn funds from a French Polynesian government grant and a commercial loan. Applicant additionally argues that section 63.10(c)'s separate subsidiary requirement does not specifically apply to submarine cables or submarine operators. Id. at 7. Finally, Applicant states that OPT will voluntarily commit to comply with additional competitive safeguards as a condition to the grant of its waiver request. Id. at 9-11. Applicant agrees 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). Submarine Cable Landing License Office des postes et Telecommunications de Polynesie francaise Page 2 of 2