SCL-LIC-20120330-00002
E
Latam Telecommunications, L.L.C.
Submarine Cable Landing License
Application filed by Latam Telecommunications, LLC (Latam), Puerto Rico Telephone Company, Inc. (PRTC), and Claro Chile, S.A. (Claro Chile) (together, the "Applicants") for a license to construct, land, and operate a non-common carrier fiber-optic submarine cable system linking
the continental United States, the Dominican Republic, Puerto Rico, Brazil, Columbia, Guatemala, and Mexico - the America Movil Submarine
Cable System (AMX1 System).
The AMX1 System will be a high capacity digital fiber-optic system initially deployed with 40 Gigabits per second wavelengths and a design to support a 100 Gigabits per second wavelengths solution.
It is based on repeatered technology using Wavelength Division Multiplexing.
The system will extend more than 17,500 kilometers.
Construction of the AMX1 System began on February 23, 2011, with a target completion date of
August 7, 2013.
The Applicants state that the AMX1 System will provide increased capacity from the United States to landing points in the Dominican Republic, Puerto Rico, Brazil, Colombia, Guatemala, and Mexico to help meet the dramatic growth in Internet, data and voice traffic in those countries.
The cable landing stations will be located in Jacksonville and Miami, Florida, and San Juan, Puerto Rico in the United States; Puerto Barrios in Guatemala; Barranquilla and Cartagena in Colombia; Fortaleza, Salvador de Bahia, and Rio de Janeiro in Brazil; Puerto Plata in the Dominican Republic; and Cancun in Mexico.
The Applicants propose to operate the cable system on a non-common carrier basis. They state that there are a variety of alternative facilities
serving the region including several other submarine cables, and thus Applicants will not be able to exercise market power. The Applicants
further state that they will not offer capacity to the public indifferently, but rather the available capacity will be used by the Applicants and offered
to other carriers on terms tailored to their particular needs.
The AMX1 System will be owned by eight subsidiaries of America Movil, S.A.B. de C.V. (America Movil). Of these eight subsidiaries, only Latam, PRTC, and Claro Chile will either own or control a landing station in the United States, or own or control a five percent or greater interest in the cable system and use U.S. points of the cable system.
(1) Latam will own and operate the cable landing station in Jacksonville, Florida and
operate the station in Miami, Florida. It will have 100% ownership in the U.S. and U.S. waters and 4.251% overall ownership of the AMX1
System.
(2) PRTC will own and operate the landing station in San Juan, Puerto Rico. It will have 100% ownership in Puerto Rico and in Puerto Rican waters and 2.253% overall ownership.
(3) Radiomovil Dipsa, S.A. de C.V. will own and operate the landing station in Cancun, Mexico. It
will have 100% ownership in Mexico and in Mexican waters and 1.085% overall ownership.
(4) Telecomunicaciones de Guatemala, S.A. will
own and operate the landing station in Puerto Barrios, Guatemala. It will have 100% ownership in Guatelmala and Guatemalan waters and
1.059% overall ownership.
(5) Comunciacion Celular, S.A. will own and operate the landing station in Barranquilla and Cartagena in Columbia. It will have 100% ownership in Colombia and in Colombian waters and 2.850% overall ownership.
(6) Compania Dominicana de Telefonos, S.A. will own and operate the landing station in Puerto Plata in the Dominican Republic. It will have 100% ownership in the Dominican Republic and
in Dominican Republic waters and 2.309% overall ownership.
(7) Claro S.A. will own and operate the landing station in Fortaleza, Rio de Janeiro
and Salvador de Bahia, Brazil. It will have 100% ownership in Brazil and in Brazilian waters and 3.776% overall ownership.
(8) Claro Chile will have 100% ownership of the cable in international waters and 82.417% overall ownership of the AMX1 System.
Applicants request a waiver of section 1.767(h)(l) of the Commission's rules, which requires that "any entity that owns or controls a cable landing station in the United States" shall be applicants for, and licensees on, a cable landing license." 47 C.F.R. § 1.767(h)(1).
According to the Applicants, AT&T Inc. owns the landing station in Miami, Florida and that Latam will own and have control of the U.S. end of the cable and all landing station equipment and functions relating to the AMX1 System at the Miami, Florida landing station.
According to applicants, AT&T will thus have no control over the cable and that "requiring AT&T to be a licensee would not accomplish the Commission's intent" to ensure that
entities that have the ability to affect the operation of a cable system are applicants. , See Application at 6, n.5 (citing Review of Commission Consideration of Applications under the Cable Landing License Act, IB Docket No. 00-106, Report and Order, 16 FCC Rcd 22167, 22194, 53 (2001).