§ 63.09   Definitions applicable to international Section 214 authorizations.

   The following definitions shall apply to § § 63.09-63.24 of this part,
   unless the context indicates otherwise:

   (a) Facilities-based carrier means a carrier that holds an ownership,
   indefeasible-right-of-user, or leasehold interest in bare capacity in
   the U.S. end of an international facility, regardless of whether the
   underlying facility is a common carrier or non-common carrier submarine
   cable or a satellite system.

   (b) Control includes actual working control in whatever manner
   exercised and is not limited to majority stock ownership. Control also
   includes direct or indirect control, such as through intervening
   subsidiaries.

   (c) Special concession is defined as in § 63.14(b) of this part.

   (d) Foreign carrier is defined as any entity that is authorized within
   a foreign country to engage in the provision of international
   telecommunications services offered to the public in that country
   within the meaning of the International Telecommunication Regulations,
   see Final Acts of the World Administrative Telegraph and Telephone
   Conference, Melbourne, 1988 (WATTC-88), Art. 1, which includes entities
   authorized to engage in the provision of domestic telecommunications
   services if such carriers have the ability to originate or terminate
   telecommunications services to or from points outside their country.

   (e) Two entities are affiliated with each other if one of them, or an
   entity that controls one of them, directly or indirectly owns more than
   25 percent of the capital stock of, or controls, the other one.

   Also, a U.S. carrier is affiliated with two or more foreign carriers if
   the foreign carriers, or entities that control them, together directly
   or indirectly own more than 25 percent of the capital stock of, or
   control, the U.S. carrier and those foreign carriers are parties to, or
   the beneficiaries of, a contractual relation (e.g., a joint venture or
   market alliance) affecting the provision or marketing of international
   basic telecommunications services in the United States.

   (f) Market power means sufficient market power to affect competition
   adversely in the U.S. market.

   (g) As used in this part, the term:

   (1) Interlocking directorates shall mean persons or entities who
   perform the duties of “officer or director” in an authorized U.S.
   international carrier or an applicant for international Section 214
   authorization who also performs such duties for any foreign carrier.

   (2) Officer or director shall include the duties, or any of the duties,
   ordinarily performed by a director, president, vice president,
   secretary, treasurer, or other officer of a carrier.

   Note 1: The assessment of “capital stock” ownership will be made under
   the standards developed in Commission case law for determining such
   ownership. See, e.g., Fox Television Stations, Inc., 10 FCC Rcd 8452
   (1995). “Capital stock” includes all forms of equity ownership,
   including partnership interests.

   Note 2: Ownership and other interests in U.S. and foreign carriers will
   be attributed to their holders and deemed cognizable pursuant to the
   following criteria: Attribution of ownership interests in a carrier
   that are held indirectly by any party through one or more intervening
   corporations will be determined by successive multiplication of the
   ownership percentages for each link in the vertical ownership chain and
   application of the relevant attribution benchmark to the resulting
   product, except that wherever the ownership percentage for any link in
   the chain that is equal to or exceeds 50 percent or represents actual
   control, it shall be treated as if it were a 100 percent interest. For
   example, if A owns 30 percent of company X, which owns 60 percent of
   company Y, which owns 26 percent of “carrier,”' then X's interest in
   “carrier”' would be 26 percent (the same as Y's interest because X's
   interest in Y exceeds 50 percent), and A's interest in “carrier”' would
   be 7.8 percent (0.30 × 0.26 because A's interest in X is less than 50
   percent). Under the 25 percent attribution benchmark, X's interest in
   “carrier”' would be cognizable, while A's interest would not be
   cognizable.

   [ 64 FR 19062 , Apr. 19, 1999, as amended at  65 FR 60116 , Oct. 10, 2000;
    67 FR 45390 , July 9, 2002]

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