Goto Section: 63.09 | 63.11 | Table of Contents
Revised as of October 28, 2020
Goto Year:2020 |
§ 63.10 Regulatory classification of U.S. international carriers.
(a) Unless otherwise determined by the Commission, any party authorized
to provide an international communications service under this part
shall be classified as either dominant or non-dominant for the
provision of particular international communications services on
particular routes as set forth in this section. The rules set forth in
this section shall also apply to determinations of regulatory status
pursuant to § § 63.11 and 63.13. For purposes of paragraphs (a)(2) and
(a)(3) of this section, the relevant markets on the foreign end of a
U.S. international route include: international transport facilities or
services, including cable landing station access and backhaul
facilities; inter-city facilities or services; and local access
facilities or services on the foreign end of a particular route.
(1) A U.S. carrier that has no affiliation with, and that itself is
not, a foreign carrier in a particular country to which it provides
service (i.e., a destination country) shall presumptively be considered
non-dominant for the provision of international communications services
on that route;
(2) Except as provided in paragraph (a)(4) of this section, a U.S.
carrier that is, or that has or acquires an affiliation with a foreign
carrier that is a monopoly provider of communications services in a
relevant market in a destination country shall presumptively be
classified as dominant for the provision of international
communications services on that route; and
(3) A U.S. carrier that is, or that has or acquires an affiliation with
a foreign carrier that is not a monopoly provider of communications
services in a relevant market in a destination country and that seeks
to be regulated as non-dominant on that route bears the burden of
submitting information to the Commission sufficient to demonstrate that
its foreign affiliate lacks sufficient market power on the foreign end
of the route to affect competition adversely in the U.S. market. If the
U.S. carrier demonstrates that the foreign affiliate lacks 50 percent
market share in the international transport and the local access
markets on the foreign end of the route, the U.S. carrier shall
presumptively be classified as non-dominant.
(4) A carrier that is authorized under this part to provide to a
particular destination an international switched service, and that
provides such service solely through the resale of an unaffiliated U.S.
facilities-based carrier's international switched services (either
directly or indirectly through the resale of another U.S. resale
carrier's international switched services), shall presumptively be
classified as non-dominant for the provision of the authorized service.
A carrier regulated as non-dominant pursuant to this subparagraph shall
notify the Commission at any time that it begins to provide such
service through the resale of an affiliated U.S. facilities-based
carrier's international switched services. The carrier will be deemed a
dominant carrier on the route absent a Commission finding that the
carrier otherwise qualifies for non-dominant regulation pursuant to
(b) Any party that seeks to defeat the presumptions in paragraph (a) of
this section shall bear the burden of proof upon any issue it raises as
to the proper classification of the U.S. carrier.
(c) Any carrier classified as dominant for the provision of particular
services on particular routes under this section shall comply with the
following requirements in its provision of such services on each such
(1) Provide services as an entity that is separate from its foreign
carrier affiliate, in compliance with the following requirements:
(i) The authorized carrier shall maintain separate books of account
from its affiliated foreign carrier. These separate books of account do
not need to comply with part 32 of this chapter; and
(ii) The authorized carrier shall not jointly own transmission or
switching facilities with its affiliated foreign carrier. Nothing in
this section prohibits the U.S. carrier from sharing personnel or other
resources or assets with its foreign affiliate;
(2) File quarterly reports on traffic and revenue within 90 days from
the end of each calendar quarter. Such reports shall include the
minutes completed on foreign networks; settlement payouts for call
completion on foreign networks; foreign-billed minutes; and
foreign-billed settlement receipts.
(3) File quarterly reports summarizing the provisioning and maintenance
of all basic network facilities and services procured from its foreign
carrier affiliate or from an allied foreign carrier, including, but not
limited to, those it procures on behalf of customers of any joint
venture for the provision of U.S. basic or enhanced services in which
the authorized carrier and the foreign carrier participate, within 90
days from the end of each calendar quarter. These reports should
contain the following: the types of circuits and services provided; the
average time intervals between order and delivery; the number of
outages and intervals between fault report and service restoration; and
for circuits used to provide international switched service, the
percentage of “peak hour” calls that failed to complete;
(4) In the case of an authorized facilities-based carrier, file
quarterly, within 90 days from the end of each calendar quarter, a
report of its active and idle 64 kbps or equivalent circuits by
facility (terrestrial, satellite and submarine cable).
(5) If authorized to provide facilities-based service, comply with
paragraph (e) of this section.
(d) A carrier classified as dominant under this section shall file an
original and two copies of each report required by paragraphs (c)(3),
(c)(4), and (c)(5) of this section with the Chief, International
Bureau. The carrier shall also file one copy of these reports with the
Commission's copy contractor. The transmittal letter accompanying each
report shall clearly identify the report as responsive to the
appropriate paragraph of § 63.10(c).
(e) Except as otherwise ordered by the Commission, a carrier that is
classified as dominant under this section for the provision of
facilities-based services on a particular route and that is affiliated
with a carrier that collects settlement payments for terminating U.S.
international switched traffic at the foreign end of that route may not
provide switched facilities-based service on that route unless the
current rates the affiliate charges U.S. international carriers to
terminate traffic are at or below the Commission's relevant benchmark
adopted in IB Docket No. 96-261. See FCC 97-280 (rel. Aug. 18, 1997)
(available at the FCC's Reference Operations Division, Washington, D.C.
20554, and on the FCC's World Wide Web Site at http://www.fcc.gov).
[ 62 FR 64752 , Dec. 9, 1997, as amended at 64 FR 19062 , Apr. 19, 1999;
64 FR 46593 , Aug. 26, 1999; 64 FR 47702 , Sept. 1, 1999; 66 FR 16881 ,
Mar. 28, 2001; 67 FR 45390 , July 9, 2002; 78 FR 15623 , Mar. 12, 2013;
82 FR 55331 , Nov. 21, 2017]
Goto Section: 63.09 | 63.11
Goto Year: 2020 |
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