Sec.  64.1002   International settlements policy.

   (a) Except as provided in paragraph (b) of this section, a common carrier
   that  is  authorized  pursuant  to  part 63 of this chapter to provide
   facilities-based  switched voice, telex, telegraph, or packet-switched
   service on a U.S. international route, and that enters into an operating or
   other agreement to provide any such service in correspondence with a foreign
   carrier that does not qualify for the presumption that it lacks market power
   on  the  foreign  end  of  the  route,  must comply with the following
   requirements:

   (1) The terms and conditions of the carrier's 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,  are 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 the same foreign point.

   (2) The carrier shall not bargain for or agree to accept more than its
   proportionate share of return traffic.

   (3) The division of tolls shall be evenly-divided between the U.S. carrier
   and foreign carrier.

   (4) The carrier must also duly comply with the requirements in  Sec. 43.51 and
    Sec. 64.1001 of this chapter.

   Note to Paragraph (a): Carriers shall rely on the Commission's list of
   foreign carriers that do not qualify for the presumption that they lack
   market power in particular foreign points for purposes of determining which
   of  their  foreign carrier correspondent agreements are subject to the
   requirements of this paragraph. This list is available on the International
   Bureau's World Wide Web site at http://www.fcc.gov/ib.

   (b)  A carrier that enters into an operating or other agreement with a
   foreign  carrier  for  the provision of a common carrier service on an
   international route is not subject to the requirements of paragraph (a) of
   this section if the route appears on the Commission's list of international
   routes that the Commission has exempted from the international settlements
   policy. This list is available on the International Bureau's World Wide Web
   site at http://www.fcc.gov/ib.

   (c) A carrier that seeks to add a U.S. international route to the list of
   routes that are exempt from the international settlements policy must make
   its request to the International Bureau, accompanied by a showing that a
   U.S.  carrier  has  entered into a benchmark-compliant settlement rate
   agreement with a foreign carrier that possesses market power in the country
   at the foreign end of the U.S. international route that is the subject of
   the request. The required showing shall consist of an effective accounting
   rate modification, filed pursuant to  Sec. 64.1001, that includes a settlement
   rate that is at or below the Commission's benchmark settlement rate adopted
   for that country in IB Docket No. 96–261, Report and Order, 12 FCC Rcd
   19,806,  62 FR 45758 , Aug. 29, 1997, available on the International Bureau's
   World Wide Web site at http://www.fcc.gov/ib.

   (d) A carrier or other party may request Commission intervention on a route
   that the Commission has exempted from the international settlements policy
   by  filing  with the International Bureau a petition, pursuant to this
   section, demonstrating anticompetitive behavior that is harmful to U.S.
   customers. 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. 64.1002: For purposes of this section, foreign carrier is defined
   in  Sec. 63.09 of this chapter.

   Note 2 to  Sec. 64.1002: 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 Bureau's World Wide Web site at http://www.fcc.gov/ib.

   (e) Subject to the availability of electronic forms, all filings described
   in this section must be filed electronically through the International
   Bureau  Filing  System  (IBFS). A list of forms that are available for
   electronic filing can be found on the IBFS homepage. For information on
   electronic filing requirements, see part 1,  Sec.  Sec. 1.1000 through 1.10018 of this
   chapter and the IBFS homepage at http://www.fcc.gov/ibfs. See also  Sec.  Sec. 63.20
   and 63.53.

   [ 69 FR 23155 , Apr. 28, 2004, as amended at  70 FR 38800 , July 6, 2005]

   Effective Date Note:   At  70 FR 38800 , July 6, 2005,  Sec. 64.1002 was amended by
   revising  paragraph  (c)  and adding paragraph (e). This text contains
   information collection and recordkeeping requirements and will not become
   effective until approval has been given by the Office of Management and
   Budget.

Subpart K—Changes in Preferred Telecommunications Service Providers