FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,051
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The ECO Test was originally adopted by the Commission in the Foreign Carrier Entry Order."'
In the Foreign Participation Order, the Commission found that it was no longer necessary to apply the
ECO Test to WTO Member countries, but retained the test for entry by carriers that possess market power
in non-WTO member countries.16
Independent Samoa is not a WTO Member country. The Cable Landing Licensees and ASLI are
proposing to become affiliated with SamoaTel, which has market power in the market for fixed local
termination on the U.S.-lndependent Samoa route." For purposes of the ECO Test, a U.S. international
carrier or cable landing licensee is affiliated with a foreign carrier if, inter alia, the carrier/licensee, or a
controlling entity, directly or indirectly holds a controlling interest in the foreign carrier.'" Upon
consummation of the proposed acquisition, Blue Sky, which is one of the Cable Landing Licensees and
which controls ASLI, an authorized U.S. international carrier, will indirectly own 75 percent of
SamoaTel's shares outstanding.
The Cable Landing Licensees and ASLI state that the Independent Samoan market offers
effective opportunities for U.S. investors and carriers to land and operate undersea cables and provide
facilities-based and resale telecommunications services in Independent Samoa, and thus the notifications
should be granted.
First, the Cable Landing Licensees and ASLI maintain that U.S. carriers have the legal ability to
enter the Independent Samoan market to provide land and operate undersea cables in Independent Samoa
and provide facilities-based and resale international services, including IMTS.'9 The
(ii) If the applicant seeks to provide resold services, the legal ability of U.S. carriers to enter the foreign
market and provide resold international switched services (for switched resale applications) or non-
interconnected private line services (for non-interconnected private line resale applications);
(iii) Whether there exist reasonable and nondiscriminatory charges, terms and conditions for
interconnection to a foreign carrier's domestic facilities for termination and origination of international
services or the provision of the relevant resale service:
(iv) Whether competitive safeguards exist in the foreign country to protect against anticompetitive
practices, including safeguards such as:
(A) Existence of cost-allocation rules in the foreign country to prevent cross-subsidization;
(B) Timely and nondiscriminatory disclosure of technical information needed to use, or interconnect
with, carriers' facilities; and
(C) Protection of carrier and customer proprietary information;
(v) Whether there is an effective regulatory framework in the foreign country to develop, implement and
enforce legal requirements, interconnection arrangements and other safeguards; and
(vi) Any other factors the applicant deems relevant to its demonstration.
47 C.F.R 63.18(kX3). See also 47 C.F.R 1.767(a)(8).
S Market Entry and Regulation of Foreign-Affiliated Entities, IB Docket No. 95-22, Report and Order, 11 FCC Rcd
3873, 3881-3099, i 19-72 (1995) (Foreign Carrier Entry Order).
'6 Foreign Participation Order 12 FCC at 23094-50, 130.
17 Blue Sky Notification at 1 I1; ASLI Notification at 9.
" 47 C.F.R. 63.09(e). See also 47 C.F.R. 63.18(j)(3); id. 1.767(aX8).
" Blue Sky Notification at 17; ASLI Notification at 14.
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United States. Federal Communications Commission. FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011, book, April 2011; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc52169/m1/223/: accessed May 29, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.