§ 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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