FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,223
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U.S. carriers the same effective accounting rate and same effective date for the rate
("nondiscrimination"); (2) all U.S. carriers are entitled to a proportionate share of U.S.-inbound or return
traffic based upon their proportion of U.S.-outbound traffic ("proportionate return"); and (3) the
accounting rate is split evenly between U.S. and foreign carriers for U.S.-inbound and -outbound traffic
so that inbound and outbound settlement rates are identical ("symmetrical settlement rates").39 In
addition, the "No Special Concessions" rule and certain filing requirements serve as safeguards against
non-price discrimination and reinforce the ISP conditions." Although the Commission has exempted
benchmark-compliant routes from the ISP,41 Cuba remains subject to the ISP because U.S. carriers never
achieved benchmark-compliant rates for service to Cuba.
17. AT&T and Verizon filed comments supporting TeleCuba's request to waive the ISP only
to the extent necessary to allow a settlement rate of $0.84 on the U.S.-Cuba route. In contending that any
ISP waiver should be limited, AT&T asserts that TeleCuba offers no basis for, and does not request, any
broader waiver of the ISP, which provides important protections for U.S. carriers against discriminatory
conduct on routes with high settlement rates.4 AT&T emphasizes that the ISP should remain in force on
the U.S.-Cuba route.43 Verizon requests that the Commission should ensure that any waiver of the ISP is
sufficiently narrow so as not to circumvent the protections the ISP provides to U.S. carriers on
international routes where discriminatory conduct may be present.44
(Continued from previous page)
negotiating settlement rates with competitive U.S. telecommunications carriers. See, e.g., AT&T Corp. Emergency
Petition for Settlements Stop Payment Order and Request for Immediate Interim Relief and Petition of WorldCom,
Inc. for Prevention of "Whipsawing" On the U.S.-Philippines Route, IB Docket No. 03-38, Order on Review, 19
FCC Rcd 9993 (2004) (Philippines Order on Review); AT&T Corp. Emergency Petition for Settlements Stop
Payment Order and Request for Immediate Interim Relief and Petition of WorldCom, Inc. for Prevention of
"Whipsawing" On the US.-Philippines Route, IB Docket No. 03-38, Order, 18 FCC Red 3519 (IB 2003) (2003
39 47 C.F.R. 43.51.
40 47 C.F.R. 63.14. The "No Special Concessions" rule prohibits carriers from accepting special concessions from
foreign carriers with market power. Generally, special concessions between U.S. and foreign carriers with market
power pose an unacceptable risk of anticompetitive harm in the U.S.-international services market, whereas special
concessions between U.S. carriers and foreign carriers that lack market power may permit carriers to offer
innovative services that result in lower rates to U.S. customers. Policies on Foreign Participation in the US.
Telecommunications Market, IB Docket Nos. 97-142 and 95-22, Report and Order and Order on Reconsideration,
FCC 97-398, 12 FCC Rcd 23891 at 23957-65, 156-170 (1997) (Foreign Participation Order). The Commission
narrowed the application of the "No Special Concessions" rule in the 1999 ISP Reform Order by partially removing
the rule as it applies to terms and conditions under which traffic is settled, including the allocation of return traffic or
"grooming" arrangements, on a route where the Commission removes the ISP. For example, the "No Special
Concessions" rule still applies to terms and conditions unrelated to the settlement of traffic, such as interconnection
of international facilities, private line provisioning and maintenance, and quality of service on routes where the ISP
is lifted. See 1998 Biennial Regulatory Review -- Reform of the International Settlements Policy and Associated
Filing Requirements, IB Docket 98-148 and 95-22, CC Docket 90-337 (Phase II), Report and Order and Order on
Reconsideration, FCC 99-73, 14 FCC Rcd 7963, 7994-98, 82-94 (1999) (1999 ISP Reform Order). See also
Rules and Policies on Foreign Participation in the US. Telecommunications Market, Order on Reconsideration, IB
Docket No. 97-142, 15 FCC Red 18158 (2000) (Foreign Participation Recon Order).
41 2004 ISP Reform Order, 19 FCC Red at 571 i, 2; 47 C.F.R. 64.1002.
42 AT&T Comments at 1.
44 See Verizon Reply Comments at I.
Federal Communications Commission
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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/m1/395/: accessed April 29, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.