International Settlements Policy Reform, 11109-11113 [2013-03073]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 78, Number 32 (Friday, February 15, 2013)]
[Rules and Regulations]
[Pages 11109-11113]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03073]



[[Page 11109]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0, 1, 43, 63 and 64

[IB Docket No. 11-80; FCC 12-145]


International Settlements Policy Reform

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission eliminates the International Settlements Policy 
(ISP) and applies a modified version to Cuba. The Commission amends its 
rules and procedures to enhance its ability to respond to foreign 
carriers' anticompetitive behavior in and timely and effective manner. 
Eliminating the ISP will enable more market-based arrangements between 
U.S. and foreign carriers on all U.S.-international routes giving U.S. 
consumers competitive pricing when they make international calls. The 
Commission also adopts certain limited measures to improve the 
Commission's ability to protect U.S. consumers from the effects of 
anticompetitive conduct by foreign carriers.

DATES: Effective March 18, 2013, except for the amendment to Sec.  
43.51(d) which contains information collection requirements that have 
not been approved by the Office of Management and Budget (OMB). The 
Commission will publish a document in the Federal Register announcing 
the effective date of that rule change.

ADDRESSES: Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554. The Commission will seek comments from the Office 
of Management and Budget (OMB), other Federal agencies and the general 
public on the Paperwork Reduction Act information collection 
requirements contained herein in a separate notice to be published in 
Federal Register.

FOR FURTHER INFORMATION CONTACT: James Ball or Kimberly Cook, Policy 
Division, International Bureau, 202-418-1460. For additional 
information concerning the Paperwork Reduction Act information 
collection requirements contained in this document, send an email to 
PRA@fcc.gov or contact Cathy Williams on (202) 418-2918.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in IB Docket No. 11-80, RM-11322, IB Docket No. 05-254, IB 
Docket No. 09-10, FCC 12-145, which was adopted on November 29, 2012. 
The full text of this Commission decision is available for inspection 
and copying during normal business hours in the FCC Reference Center 
(Room CY-A257), 445 12th Street SW., Washington, DC 20554. The document 
may also be downloaded from the Commission's Web site at https://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-145A1.doc. The 
complete text may also be purchased from the Commission's copy 
contractor, Best Copy and Printing, Inc., in person at 445 12th Street 
SW., Room CY-B402, Washington, DC 20554, via telephone at (202) 488-
5300, via facsimile at (202) 488-5563, or via email at FCC@BCPIWEB.COM.

Summary of the Report and Order

    1. The Commission finds that the record supports removing the 
International Settlements Policy (ISP) from the 38 international routes 
to which it continues to apply, with the exception of Cuba. The market 
has seen significant competitive growth since the Commission last 
reviewed the ISP. Further, in today's competitive market, maintaining 
the ISP has the opposite effect for which it was intended because it 
now hurts U.S. carriers' ability to negotiate competitive rates with 
their foreign correspondents. Foreign carriers on ISP routes no longer 
have the incentive to agree to pay symmetrical rates to U.S. carriers 
for their U.S.-bound traffic, as required by the ISP, because they can 
send that traffic to the United States at significantly lower market 
rates through traffic re-origination arrangements offered by third 
country foreign carriers on ISP-exempt routes between the United States 
and those third countries. The Commission believes that removing the 
ISP from the remaining U.S.-international routes will provide U.S. 
carriers greater flexibility to negotiate lower settlement rates on 
those routes. Thus, it removes the ISP from the remaining international 
routes with the exception of Cuba, to which we continue to apply a 
limited form of the ISP as well as the benchmarks policy subject to 
waivers.
    2. The Commission believes it is appropriate to continue to apply 
only part of the ISP to the U.S.-Cuba route. The Commission finds that 
continuing to apply the proportionate return and symmetric rate prongs 
of the ISP to the U.S.-Cuba route would likely complicate the 
resumption of direct telecommunications services on the route because 
Cuban carriers are able to continue indirect routing of U.S. traffic. 
Accordingly, the Commission will remove these requirements from this 
route. The Commission, believes, however, that the nondiscrimination 
prong of the ISP is essential to assuring that one U.S. carrier is not 
favored over another once direct service on the U.S.-Cuba route 
resumes. Therefore, consistent with the guidance from the U.S. 
Department of State, the Commission will continue to apply the 
nondiscrimination prong of the ISP to the U.S.-Cuba route. The 
Commission will also continue to apply its benchmarks policy to direct 
U.S.-Cuba traffic subject to waiver.
    3. Because the Commission will continue to apply the 
nondiscrimination prong to U.S.-Cuba traffic, it will provide in its 
rules that the terms and conditions of any operating or other agreement 
relating to the exchange of services, interchange or routing of traffic 
and matters concerning rates, accounting rates, division of tolls, the 
allocation of return traffic, or the basis of settlement of traffic 
balances, entered into by U.S. common carriers authorized pursuant to 
Part 63 of the Commission's rules to provide facilities-based switched 
voice service on the U.S.-Cuba route in correspondence with a Cuban 
carrier that does not qualify for the presumption that it lacks market 
power in Cuba, shall be identical to the equivalent terms and 
conditions in the operating agreement of another carrier providing the 
same or similar service between the United States and Cuba. No 
operating or other agreement inconsistent with this requirement may 
become effective unless and until the U.S. carrier obtains a waiver 
from the Commission. This condition would also be imposed on all 
section 214 authorizations for direct service to Cuba.
    4. Carriers that seek waiver of the nondiscrimination requirement 
on the U.S.-Cuba route must submit a request to the Commission with a 
persuasive showing as to the public interest benefits of permitting it 
to enter into an agreement with a Cuban carrier with market power that 
contains accounting rates and related arrangements not offered by that 
Cuban carrier to all other U.S. carriers. Any such request for waiver 
shall include identification of the Cuban carrier party to the proposed 
agreement; a copy of the proposed agreement; the present accounting 
rate (if any); the new accounting rate (including any surcharges); the 
proposed effective date of the new agreement; a notarized statement by 
the carrier requesting the waiver that it has informed the Cuban 
administration that U.S. policy requires that competing U.S. carriers 
have access to accounting rates negotiated by the filing carrier with a 
Cuban carrier with market power on a nondiscriminating basis; and a 
statement as to the public interest

[[Page 11110]]

reasons the Commission nevertheless should permit the proposed 
discriminatory accounting rate or related arrangement to go into 
effect. The filing carrier shall serve a copy of the waiver request on 
all other U.S. carriers providing switched voice services to Cuba. Any 
waiver request will be placed on public notice and coordinated with the 
U.S. Department of State.
    5. Because the Commission has removed the ISP from all U.S.-
international routes except for the U.S.-Cuba route as described above, 
it eliminates 47 CFR 64.1001 and 64.1002 (a)-(c) and (e). The 
Commission adds a provision in 47 CFR 63.22 to implement its continuing 
policy goal of preventing discriminatory treatment of U.S. carriers on 
the Cuba route. The Commission also requires any agreement reached on 
the U.S.-Cuba route to be consistent with this condition and filed with 
the Commission. The Commission will consider such an agreement 
routinely available for public inspection. The Commission amends and 
retains the requirements of 47 CFR 64.1002(d), relocating it to part 
63. This section sets forth procedures for Commission consideration of 
allegations of anticompetitive conduct on international routes.
    6. The Commission will require all U.S. carriers to provide 
information about any above-benchmark settlement rates on an as-needed 
basis in connection with an investigation of competition problems on 
selected routes or review of high consumer rates on either multiple or 
selected routes. The Commission will require U.S. carriers to provide 
information on request and give confidential treatment to the 
information pursuant to its rules. On an as-needed basis, the 
Commission may require U.S. carriers to file all agreements, amendments 
and rates with the Commission. The Commission might exercise that 
authority on our own motion or where the Commission receives a 
complaint from a carrier or from a consumer with respect to a specific 
international route. The Commission finds that this approach 
appropriately balances the Commission's need to have notice of above-
benchmark rates to prevent and protect against potential 
anticompetitive behavior while minimizing the burden on U.S. carriers. 
Finally, the Commission continues to reserve the right to require the 
filing of particular contracts when presented with evidence of a 
violation of the ``No Special Concessions'' rule or of other 
anticompetitive behavior related to these matters on a particular 
route.
    7. The Commission also adopts certain limited measures to improve 
the Commission's ability to protect U.S. consumers from the effects of 
anticompetitive conduct by foreign carriers. The Commission adopts the 
presumption that partial circuit blockages and threats of circuit 
blockages, like circuit blockages, constitute anticompetitive behavior. 
The Commission also adopts additional potential remedies to respond to 
anticompetitive action following consultation with other U.S. 
government agencies as appropriate. The Commission determines that the 
prohibition of increased payments should be remedy used as one of 
several potential enforcement tools that may be applied based on the 
facts of each situation. The Commission declines to implement 
increasing U.S.-inbound rates as a potential remedy and also declines 
to implement re-imposing the ISP as a potential remedy. The Commission 
maintains its authority to revoke or place limitations on section 214 
authorizations in instances where the carrier or its foreign affiliate 
is engaging in anticompetitive behavior. The Commission includes the 
prohibition to carry or terminate traffic as a potential remedy to be 
used as appropriate in circumstances where it could prevent or minimize 
anticompetitive behavior on a U.S.-international route. It also 
maintained full stop payment orders are an appropriate remedy.
    8. Paperwork Reduction Act of 1995 Analyses. This document contains 
modified information collection requirements. The Commission, as part 
of its continuing effort to reduce paperwork burdens, will invite the 
general public, other Federal agencies and the Office of Management and 
Budget (OMB) to comment on the information collection requirements 
contained in this document, as required by the Paperwork Reduction Act 
of 1995, Public Law 104-13 in a separate notice that will be published 
in the Federal Register. In addition, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), we previously sought specific comment on how we might 
further reduce the information collection burden for small business 
concerns with fewer than 25 employees.

Final Regulatory Flexibility Analysis

    9. As required by the Regulatory Flexibility Act (RFA),\1\ an 
Initial Regulatory Flexibility Analysis (IRFA) was incorporated in the 
Notice of Proposed Rulemaking (NPRM).\2\ The Commission sought written 
public comment on the proposals in the NPRM, including comment on the 
IRFA.\3\ This Final Regulatory Flexibility Analysis (FRFA) conforms to 
the RFA.
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has 
been amended by the Contract With America Advancement Act of 1996, 
Public Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the 
CWAAA is the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA).
    \2\ International Settlements Policy Reform, Notice of Proposed 
Rulemaking, IB Docket Nos. 11-80, 05-254, 09-10, RM 11322, 26 FCC 
Rcd 7233 (2011) (NPRM).
    \3\ Id.
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A. Need for, and Objectives of, the Report and Order

    10. In recent years there has been increased participation and 
competition in the U.S. international marketplace, decreased settlement 
and end-user rates, and growing liberalization and privatization in 
foreign markets. Because of this increase, the Commission believes that 
it is an appropriate time to adopt changes to its International 
Settlements Policy (ISP) and accounting rate policies.

B. Description and Estimate of the Number of Small Entities To Which 
Rules Will Apply

    11. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of entities that will be affected 
by the rules.\4\ The RFA defines ``small entity'' as having the same 
meaning as the term ``small business,'' ``small organization,'' and 
``small governmental jurisdiction.'' \5\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act, unless the Commission has developed one 
or more definitions that are appropriate to its activities.\6\ Under 
the Small Business Act, a ``small business concern'' is one that: (1) 
Is independently owned and operated; (2) is not dominant in its field 
of operation; and (3) meets any additional criteria established by the 
Small Business Administration (SBA).\7\
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    \4\ 5 U.S.C. 603(b)(3), 604(a)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to 5 U.S.C 
601(3), the statutory definition of a small business applies 
``unless an agency after consultation with the Office of Advocacy of 
the Small Business Administration and after opportunity for public 
comment, established one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition in the Federal Register.''
    \7\ 15 U.S.C. 632.
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    12. This Order may directly affect up to approximately 31 
facilities-based U.S. international carriers providing IMTS

[[Page 11111]]

traffic. In the 2010 annual traffic and revenue report, 31 facilities-
based and facilities-resale carriers reported approximately $4.0 
billion in revenues from international message telephone service 
(IMTS). Of these, three reported IMTS revenues of more than $1 billion, 
six reported IMTS revenues of more than $100 million, nine reported 
IMTS revenues of more than $50 million, 19 reported IMTS revenues of 
more than $10 million, 23 reported IMTS revenues of more than $5 
million, and 26 reported IMTS revenues of more than $1 million. Based 
solely on their IMTS revenues the majority of these carriers would be 
considered non-small entities under the SBA definition.\8\ Neither the 
Commission nor the SBA has developed a definition of ``small entity'' 
specifically applicable to these international carriers. The closest 
applicable definition provides that a small entity is one with 1,500 or 
fewer employees.\9\ We do not have data specifying the number of these 
carriers that are not independently owned and operated and have fewer 
than 1,500 employees. Furthermore, because not all agreements between 
the U.S. and foreign carriers are required to be filed at the 
Commission, it is difficult to determine how many of these 31 carriers 
might have agreements with foreign carriers. The Order adopts a wide 
variety of proposals intended to promote market-based policies and 
reduce unnecessary regulatory burdens on all facilities-based U.S. 
international carriers regardless of size.
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    \8\ See 13 CFR 121.201, NAICS Code at Subsector 517--
Telecommunications.
    \9\ 13 CFR 121.201, NAICS codes 513310 and 513322.
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C. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    13. The Order largely reduces projected reporting, recordkeeping, 
and other compliance requirements. These changes affect small and large 
companies equally. In developing the Commission's ISP, benchmarks and 
international settlement rates policies, the Commission implemented 
various reporting requirements to monitor possible anticompetitive 
behavior and protect the public interest. The Order reserves the right 
to require the filing of particular contracts when presented with 
evidence of a violation of the ``No Special Concessions'' rule or of 
other anticompetitive behavior related to these matters on a particular 
route.

D. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered

    14. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): (1) 
The establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.\10\
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    \10\ 5 U.S.C. 603(c).
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    15. The changes adopted in this Order are designed to provide the 
Commission with information to determine whether its existing 
regulatory regime may inhibit the benefits of lower calling process and 
greater service innovations to consumers. Because the Order is broad 
and changes would likely affect only 31 facilities-based carriers, it 
would be difficult to adopt specific alternatives for the small 
facilities-based entities. The changes adopted in the Order would 
benefit all entities, including small entities.
    16. The Order does take action that would minimize the economic 
impact on all entities, including small entities. For example, the 
Order removes the ISP from certain remaining routes. This action 
eliminates the burden of seeking prior Commission approval before a 
carrier could enter into arrangements with foreign carriers. Any 
changes to our existing policies and rules will expand the ability of 
all entities, including small entities, to reap the economic benefits 
of competition. Thus, the Order does not include any exemption for 
small entities.

E. Report to Congress

    17. The Commission will send a copy of the Order, including this 
FRFA, in a report to be sent to Congress pursuant to the SBREFA.\11\ In 
addition, the Commission will send a copy of the Order, including the 
FRFA, to the Chief Counsel for Advocacy of the SBA. A copy of the Order 
and the FRFA (or summaries thereof) will also be published in the 
Federal Register.\12\
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    \11\ See 5 U.S.C. 801(a)(1)(A).
    \12\ See 5 U.S.C. 604(b).
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Congressional Review Act

    The Commission will send a copy of this Report & Order to Congress 
and the Government Accountability Office pursuant to the Congressional 
Review Act, see 5 U.S.C. 801(a)(1)(A).

Ordering Clauses

    18. It is ordered that, pursuant to the authority contained in 47 
U.S.C. 151, 152, 154(i), 154(j), 201-205, 208, 211, 214, 303(r), 309 
and 403 this Report and Order is adopted and the policies, rules, and 
requirements discussed herein are adopted and parts 0, 43 and 64 of the 
Commission's rules are amended.
    19. Is ordered that the Commission's Consumer and Governmental 
Affairs Bureau, Reference Information Center, shall send a copy of this 
Report and Order, including the Final Regulatory Flexibility 
Certification, to the Chief Counsel for Advocacy of Small Business 
Administration, in accordance with section 603(a) of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq.
    20. Is further ordered that the policies, rules, and requirements 
established in this decision shall take effect thirty days after 
publication in the Federal Register except for Sec.  43.51(d) which 
contains new information collection requirements that require approval 
by the Office of Management and Budget (OMB) under the PRA. The Federal 
Communications Commission will publish a document in the Federal 
Register announcing such approval and the relevant effective date.

List of Subjects in 47 CFR Parts 0, 1, 43, 63 and 64

    Freedom of information, Administrative practice and procedure, 
Communications common carriers, Reporting and recordkeeping 
requirements, Telephone.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR Parts 0, 1, 43, 63 and 64 as 
follows:

PART 0--COMMISSION ORGANIZATION

0
1. The authority citation for part 0 continues to read as follows:

    Authority:  Sec. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155, 
225, unless otherwise noted.

0
2. Amend Sec.  0.457 by revising paragraph (d)(1)(v) to read as 
follows:


Sec.  0.457  Records not routinely available for public inspection.

* * * * *
    (d) * * *

[[Page 11112]]

    (1) * * *
    (v) The rates, terms and conditions in any agreement between a U.S. 
carrier and a foreign carrier that govern the settlement of U.S.-
international traffic, including the method for allocating return 
traffic, except as otherwise specified by the Commission by order or by 
the International Bureau under delegated authority. See, e.g., 
International Settlements Policy Reform, IB Docket Nos. 11-80, 05-254, 
09-10, RM-11322, Report and Order, FCC 12-145 (rel. Nov. 29, 2012).
* * * * *

PART 1--PRACTICE AND PROCEDURE

0
3. The authority citation for part 1 continues to read as follows:

    Authority:  15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, 227, 303(r), and 309, and the Middle Class Tax Relief 
and Job Creation Act of 2012, Pub. L. 112-96.


0
4. Amend Sec.  1.1206 by removing and reserving paragraph (a)(12).


Sec.  1.1206  Permit-but-disclose proceedings.

    (a) * * *
    (12) [Reserved]
* * * * *

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

0
5. The authority citation for part 43 continues to read as follows:

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub. 
L. 104-104, secs. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted, 47 U.S.C. 211, 219, 220 as amended.


0
6. Amend Sec.  43.51 by:
0
a. Revising paragraph (a)(1) introductory text and paragraph (d).
0
b. Removing the comma at the end of paragraph (b)(1) and adding ``; 
or'' in its place.
0
c. Removing ``, or'' at the end of paragraph (b)(2) and adding a period 
in its place.
0
d. Removing paragraphs (b)(3), (e), and (f).
0
e. Removing note 3 and note 4 to Sec.  43.51.
    The revisions read as follows:


Sec.  43.51  Contracts and concessions.

    (a)(1) Any communication common carrier described in paragraph (b) 
of this section must file with the Commission, within thirty (30) days 
of execution, a copy of each contract, agreement, concession, license, 
authorization, operating agreement or other arrangement to which it is 
a party and amendments thereto (collectively hereinafter referred to as 
``agreement'' for purposes of this rule) with respect to the following:
* * * * *
    (d) Any U.S. carrier, other than a provider of commercial mobile 
radio services, that is engaged in foreign communications, and enters 
into an agreement with a foreign carrier, is subject to the 
Commission's authority to require the U.S. carrier providing service on 
any U.S.-international routes to file, on an as-needed basis, a copy of 
each agreement to which it is a party.
* * * * *

PART 63--EXTENSION OF LINES, NEW LINES, AND DISCONTINUANCE, 
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND 
GRANTS OF RECOGNIZED PROVATE OPERATING AGENCY STATUS

0
7. The authority citation for part 63 continues to read as follows:

    Authority:  Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 
403 and 651 of the Commissions Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless 
otherwise noted.

0
8. Amend Sec.  63.14 by revising paragraph (c) to read as set forth 
below, and removing note to paragraph (c):


Sec.  63.14  Prohibition on agreeing to accept special concessions.

* * * * *
    (c) This section shall not apply to the rates, terms and conditions 
in an agreement between a U.S. carrier and a foreign carrier that 
govern the settlement of U.S. international traffic, including the 
method for allocating return traffic.
0
9. Amend Sec.  63.17 by revising paragraph (b) introductory text to 
read as follows:


Sec.  63.17  Special provisions for U.S. international common carriers.

* * * * *
    (b) Except as provided in paragraph (b)(4) of this section, a U.S. 
common carrier, whether a reseller or facilities-based carrier, may 
engage in ``switched hubbing'' to countries provided the carrier 
complies with the following conditions:
* * * * *

0
10. Amend Sec.  63.22 by redesignating paragraph (f) as paragraph (h) 
and adding new paragraphs (f) and (g) and notes 1 and 2 to Sec.  63.22 
as follows:


Sec.  63.22  Facilities-based international common carriers.

* * * * *
    (f) The terms and conditions of any operating or other agreement 
relating to the exchange of services, interchange or routing of traffic 
and matters concerning rates, accounting rates, division of tolls, the 
allocation of return traffic, or the basis of settlement of traffic 
balances, entered into by U.S. common carriers authorized pursuant to 
this part to provide facilities-based switched voice service on the 
U.S.-Cuba route in correspondence with a Cuban carrier that does not 
qualify for the presumption that it lacks market power in Cuba, shall 
be identical to the equivalent terms and conditions in the operating 
agreement of another carrier providing the same or similar service 
between the United States and Cuba. Carriers may seek waiver of this 
requirement. See International Settlements Policy Reform, Report and 
Order, IB Docket Nos. 11-80, 05-254, 09-10, RM 11322, FCC 12-145 (rel. 
November 29, 2012).
    (g) A carrier or other party may request Commission intervention on 
any U.S. international route for which competitive problems are alleged 
by filing with the International Bureau a petition, pursuant to this 
section, demonstrating anticompetitive behavior by foreign carriers 
that is harmful to U.S. customers. The Commission may also act on its 
own motion. Carriers and other parties filing complaints must support 
their petitions with evidence, including an affidavit and relevant 
commercial agreements. The International Bureau will review complaints 
on a case-by-case basis and take appropriate action on delegated 
authority pursuant to Sec.  0.261 of this chapter. Interested parties 
will have 10 days from the date of issuance of a public notice of the 
petition to file comments or oppositions to such petitions and 
subsequently 7 days for replies. In the event significant, immediate 
harm to the public interest is likely to occur that cannot be addressed 
through post facto remedies, the International Bureau may impose 
temporary requirements on carriers authorized pursuant to Sec.  63.18 
of this chapter without prejudice to its findings on such petitions.
* * * * *

    Note 1 to Sec.  63.22: For purposes of this section, foreign 
carrier is defined in Sec.  63.09 of this chapter.


    Note 2 to Sec.  63.22: For purposes of this section, a foreign 
carrier shall be considered to possess market power if it appears on 
the Commission's list of foreign carriers that do not qualify for 
the presumption that they lack market power in particular foreign 
points. This list is available on the International

[[Page 11113]]

Bureau's World Wide Web site at https://www.fcc.gov/ib. The 
Commission will include on the list of foreign carriers that do not 
qualify for the presumption that they lack market power in 
particular foreign points any foreign carrier that has 50 percent or 
more market share in the international transport or local access 
markets of a foreign point. A party that seeks to remove such a 
carrier from the Commission's list bears the burden of submitting 
information to the Commission sufficient to demonstrate that the 
foreign carrier lacks 50 percent market share in the international 
transport and local access markets on the foreign end of the route 
or that it nevertheless lacks sufficient market power on the foreign 
end of the route to affect competition adversely in the U.S. market. 
A party that seeks to add a carrier to the Commission's list bears 
the burden of submitting information to the Commission sufficient to 
demonstrate that the foreign carrier has 50 percent or more market 
share in the international transport or local access markets on the 
foreign end of the route or that it nevertheless has sufficient 
market power to affect competition adversely in the U.S. market.

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

0
11. The authority citation for part 64 continues to read as follows:

    Authority: 47 U.S.C. 154, 254(k); 403(b)(2)(B), (c), Pub. L. 
104-104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 222, 
225, 226, 227, 228, 254(k), 616, 620, and the Middle Class Tax 
Relief and Job Creation Act of 2012, Pub. L. 112-96, unless 
otherwise noted.

[Subpart J--Removed and Reserved]

0
12. Remove and reserve subpart J, consisting of Sec. Sec.  64.1001 and 
64.1002.
[FR Doc. 2013-03073 Filed 2-14-13; 8:45 am]
BILLING CODE 6712-01-P