Supporting Statement OMB 3060-0944 November 2019

OMB Control No. 3060-0944

Cable Landing License Act

47 CFR 1.767; 1.768

Executive Order 10530

January 2020

SUPPORTING STATEMENT

A. Justification

1. The Federal Communications Commission (“Commission”) is requesting that the Office

of Management and Budget (OMB) approve an extension of OMB Control No. 3060-0944 titled, “Cable Landing License Act – 47 CFR 1.767; 1.768; Executive Order 10530.”

Cable Landing License Application Forms Approved and Pending Development by the Commission

We request continued OMB approval of the Submarine Cable Landing License Application form approved under this collection.

The Commission plans to develop six new cable landing license application forms that impact this information collection. We do not know the specific time frame for the development of each application form. However, we estimate that the new projected completion date for all cable landing license application forms is December 2021. The development of the application forms is contingent upon the availability of budget funds, human resources and other factors.

In March 2006, the Commission received blanket approval of all six applications listed below with the following terms of clearance: OMB approves this information collection. However, as applications contained within the supporting statement are developed, a change worksheet should be submitted to OMB. The change worksheet should include the information elements that are to be collected, as well as a copy of the proposed form. This should be submitted before the application goes “live” and OMB reserves the right to make modifications to the forms and information collected as necessary.

Currently, applicants can file letters electronically with the Commission for amendments, modifications and other filings for which there is no existing application form. These information collections are approved under OMB Control No. 3060-0944. On September 30, 2008, the Commission’s International Bureau (IB) launched an e-filing module in the International Bureau Filing System (IBFS) to provide the option of electronic filing for certain filings in lieu of filing through the Commission’s Office of the Secretary. Interested parties have the option to file their applications, pleadings and other filings through the IBFS module or submit their filings to the Office of the Secretary. (Please reference Public Notice DA 08-2173 for additional information).

A complete list of cable landing license applications pending development is as follows:

Name of Form	Brief Description	Rule Section
1. Submarine Cable Landing License Amendment	Amendment of an application to correct information required for the processing of the original application.	§1.767(m)(1)
2. Submarine Cable Landing License Assignment	Application to assign a license, or a portion of it, from one entity to another. Following an assignment, the license will usually be held by an entity other than the one to which it was originally granted.	§1.767(a)(11)
3. Submarine Cable Landing License Landing Point Notification	Notification of specific description of the landing stations in the U.S. and the foreign countries where the cable will land.	§1.767(a)(5) §1.767(g)(8)
4. Submarine Cable Landing License Modification	Modification application requesting authority to modify the terms or conditions of a license, such as adding a new licensee or relinquishing an interest in a license; also may be used to update information required to maintain accuracy of the certifications made in the original application.	§1.767(m)(1)
5. Submarine Cable Landing License Special Temporary Authority	Application requesting immediate authority for temporary service or for emergency service (Special Temporary Authority).	§1.767(a)
6. Submarine Cable Landing License Transfer of Control of License	Application to transfer control of a license. Following the transfer of control, the license remains held by the same entity or entities, but there is a change in the entity or entities that control a license holder.	§1.767(a)(11)

The Commission removed the Submarine Cable Landing License Other Filings and Submarine Cable Landing Notification of Operation Forms from this information collection because the applicants/respondents notify the Commission of miscellaneous items such as name changes, etc., by letter filed electronically in IBFS. Therefore, the Commission is no longer planning on developing these two forms.

This information collection does not affect individuals or households; thus, there are no impacts under the Privacy Act.

The statutory authority for this information collection is contained in the Submarine Cable Landing License Act of 1921, 47 U.S.C. 34-39, Executive Order 10530, section 5(a), and the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i)-(j), 155, 303(r), 309, and 403.

2. The information will be used by the Commission staff in carrying out its duties under the Cable Landing License Act. The information collections pertaining to Part 1 of the rules are necessary to determine whether and under what conditions the Commission should grant a license for proposed submarine cables landing in the United States. Pursuant to Executive Order No. 10530, the Commission has been delegated the President's authority under the Cable Landing License Act to grant cable landing licenses, provided that the Commission must obtain the approval of the State Department and seek advice from other government agencies as appropriate.

3. On May 11, 2005, in Report and Order, IB Docket No. 04-226, FCC 05-91, the Commission made electronic filing mandatory for international telecommunications services and other international filings, including submarine cable landing license applications, subject to the availability of electronic forms. As noted above, on September 30, 2008, the Commission’s International Bureau (IB) launched an e-filing module in the International Bureau Filing System (IBFS) to provide applicants and other interested parties the option of electronic filing for certain filings for which forms are not available in lieu of filing through the Commission’s Office of the Secretary. A total of 100 percent of forms are filed electronically in the IBFS.

4. An applicant for a common carrier (but not a non-common carrier) submarine cable landing license must file two electronic applications: (1) a cable landing license application and (2) an international Section 214 application for overseas cable construction. While the applicant may be able to use some of the same information in both applications, the applicant must file two separate applications.

5. In developing this collection, the Commission considered the impact of our information collection requirements on small businesses and other small entities. While we cannot project exactly how many foreign carriers, or affiliates of foreign carriers from non-WTO Member countries may in the future seek entry into the U.S. telecommunications market, there is nothing in the record to suggest that there will be significantly more such carriers than there have been in the past. Therefore, the Commission certifies that the requirements of this Report and Order will not have a significant economic impact on a substantial number of small entities.

6. The frequency of filing applications and notifications under Sections 1.767 and 1.768 of the rules will be determined largely by the applicants that seek authority to construct and operate a submarine cable, by licensees that seek authority to assign or transfer control of an interest in an existing cable, or by licensees acquiring an affiliation with a foreign carrier in a destination country of the cable. The exception to this general rule is the requirement in 1.767(l) that certain licensees file quarterly reports. If the collection is not conducted or is conducted less frequently, applicants will not obtain the authorizations necessary to provide telecommunications services and facilities, and the Commission will be unable to carry out its mandate under the Cable Landing License Act and Executive Order 10530. In addition, without the collection, the United States would jeopardize its ability to fulfill the U.S. obligations as negotiated under the World Trade Organization (WTO) Basic Telecom Agreement because certain of these information collection requirements are imperative to detecting and deterring anticompetitive conduct. They are also necessary to preserve the Executive Branch agencies’ and the Commission's ability to review foreign investments for national security, law enforcement, foreign policy, and trade concerns.

7. There are no special circumstances associated with this collection of information.

8. On November 26, 2019, the Commission published a 60-day notice in the Federal Register (84 FR 64891) seeking comments on the information collection requirements contained in this collection. No comments were received from the public.

9. Respondents will not receive any payments or gifts.

10. The Commission has not granted assurances of confidentiality to those parties submitting the information. In those cases where a respondent believes information requires confidentiality, the respondent can request confidential treatment under Section 0.459 of the Commission’s rules, 47 C.F.R. § 0.459. The Commission has determined, however, that maps showing the exact location of submarine cables should not be routinely available for public inspection. 47 C.F.R. § 0.457(c)(1)(i).

11. The collection of information does not include any questions of a sensitive nature.

12. The information collection requirements are summarized in the chart below. The total number of respondents, on an annualized basis, for this information collection is approximately 38. The respondents consist of: Applicants filing for an initial cable landing license (1 respondent); Applicants filing for consent to transfer control of, or to assign, an interest in a cable landing license (13 respondents, consisting of 8 requesting prior consent to transfer control of, or to assign, an interest in a cable landing license, and 5 filing post-notification of a pro forma transfer or assignment); Licensees subject to reporting requirements (7 respondents); Applicants requesting special temporary authority (6 respondents); Licensees relinquishing interest in a license (1 respondent); Licensees filing an application to modify an existing cable system (2 respondents); Licensee notification that cable is operational (1 respondent); Licensees filing prior notification of proposed affiliation with certain foreign carriers (1 respondent); Licensees filing post-transaction notification of affiliation with certain foreign carriers (6 respondents).

Chart of Respondents, Responses and Annual Burden Hours

Rule Section and Explanation of Burden Estimate1	Number of Responses	Time Per Response (in hours)
			Total
			Annual Hour Burden2
47 CFR 1.767 CABLE LANDING LICENSES Applications for cable landing licenses under 47 USC 34-39 and Executive Order No. 10530 should contain:  47 CFR 1.767(a)(1)-(a)(3):  Applicant contact information and corporate organization; 47 CFR 1.767(a)(4): Description of submarine cable, including type and capacity; 47 CFR 1.767(a)(5): Landing Point Notification: Map providing a specific description of the cable landing stations on the shore of the U.S. and in foreign countries where the cable will land. Applicant must specify the coordinates of any beach joint where those coordinates differ from the coordinates of the cable station. This information must be filed with the Commission at least 90 days prior to construction. 47 CFR 1.767(a)(6):  Statement as to whether the cable will be operated on a common carrier or non-common carrier basis; 47 CFR 1.767(a)(7):  List of proposed owners of the cable system, including each U.S. cable landing station, and their voting and ownership interests in each U.S. cable landing station and each segment of the cable; 47 CFR 1.767(a)(8)(i)-(iii):3 For each applicant, provide (i) citizenship and ownership information; (ii) certify whether the applicant has an affiliation with a foreign carrier in any country; and (iii) for each country where the cable would land, certify and identify any foreign carrier affiliations of the type described in paragraph (iii), including the country(ies) in which the foreign carrier is authorized to operate. 47 CFR 1.767(a)(9):  Certification that applicant agrees to abide by routine conditions specified in 1.767(g); and 47 CFR 1.767(a)(10):  Any additional information necessary for the   Commission to act on the application.	1	17 Hrs. (2 Hrs.) (2 Hrs.) (4 Hrs.) (0.5 Hr.) (4 Hrs.) (3 Hrs.) (0.5 Hr.) (1 Hr.)	17 Hrs.
47 CFR 1.767(a)(8)(iv) For any country that the applicant has listed in response to paragraph (a)(8)(iii) of this section that is not a member of the World Trade Organization, provide a demonstration as to whether the foreign carrier lacks market power with reference to the criteria in section 63.10(a).	1	2 Hrs. (if no comments are filed) 8 Hrs. (if comments are filed). This burden includes a possible, additional information request by Commission staff in the event concerns are raised.	8
47 CFR 1.767(a)(11)(i)-(iii) ASSIGNMENTS AND TRANSFERS OF CONTROL If applying for authority to assign or transfer control of an interest in a cable system, the applicant shall provide the information required in this paragraph, including a narrative of the means by which the transaction will take place; the percentage of voting and ownership interests being transferred or assigned in the cable; and, for the assignee/transferee, the information specified in 1.767(a)(8)-(9).4 If the transaction also requires the filing of a 1.768 notification, a cross-reference to the notification and filing date. The assignee or transferee must notify the Commission no later than 30 days after either consummation of the assignment or transfer or a decision not to consummate the assignment or transfer.	8	9 Hrs.	72 Hrs.
47 CFR 1.767(f)	1	3 Hrs.	3 Hrs.
THIRD PARTY DISCLOSURE
Applicants shall disclose to any interested
member of the public, upon written request,
accurate information concerning the location
and timing for the construction of a submarine
cable system authorized under this section.
The disclosure shall be made within
30 days of receipt of the request.
47 CFR 1.767(g)(7) PRO FORMA ASSIGNMENTS/TRANSFERS	5	3 Hrs. 0 Hrs.	15 Hrs. 0 Hrs.
A pro forma assignee or person or company
that is the subject of a pro forma transfer
of control must notify the Commission
no later than 30 days after the assignment
or transfer of control is consummated.
The notification must certify that the assign-
ment or transfer of control was pro forma, as
defined in Section 63.24 of this chapter,
and together with all previous pro forma
transactions, does not result in a change of
the licensee's ultimate control. The licensee
may file a single notification for an assignment
or transfer of control of multiple licenses
issued in the name of the licensee if each
license is identified by the file number under which it was granted.
47 CFR 1.767(g)(8) CABLE LANDING CONSTRUCTION Unless the licensee has notified the Commission of the precise locations of the cable landing points, as required by paragraph 1.767(a)(5), the licensee shall notify the Commission no later than 90 days prior to commencing construction at that landing location.	(See 1.767(a)(5)5
47 CFR 1.767(g)(9) ENVIRONMENTAL ASSESSMENT The Commission may require that the licensee file an environmental assessment should it determine that the landing of the cable at the specific locations and construction of necessary cable landing stations may significantly affect the environment within the meaning of Section 1.1307 implementing the National Environmental Policy Act of 1969.	1	10 hours	10 hours
47 CFR 1.767(g)(14)	1	1 Hr.	1 Hr.
SUBMARINE CABLE LANDING LICENSE
NOTIFICATION OF OPERATION
The licensee must notify the Commission
within 30 days of the date the cable is placed
into service. The cable landing license shall
expire 25 years from the in-service date,
unless renewed or extended upon proper
application. Upon expiration, all rights
granted under the license shall be terminated.
47 CFR 1.767(j), (k)(1)-(3) REQUEST AND ELIGIBILITY FOR STREAMLINED PROCESSING An applicant that seeks streamlined processing must make a request in its application and must provide a copy of the application to the Department of State to initiate approval of the application by the Department of State. The applicant also must demonstrate eligibility in accordance with the provisions of paragraphs (k)(1)-(3). 47 CFR 1.767(k)(4) Applications for an initial license and applications to modify an existing license shall also include a certification that the applicant is not required to submit a consistency certification with any state pursuant to the Coastal Zone Management Act.	11 This number consists of requests that may be included in initial applications (1), transfer of control and assignment applications (8), and applications to modify an existing license (2). 3	6 Hrs. 1 Hr.	66 Hrs. 3 Hrs.
47 CFR 1.767(l)	286	4 Hrs./Report	112 Hrs.
REPORTING REQUIREMENTS APPLICABLE
TO LICENSEES AFFILIATED WITH A CARRIER WITH MARKET POWER IN A
CABLE'S WTO DESTINATION MARKET
THAT REQUEST STREAMLINED
PROCESSING
Licenses must file, within 90 days from the end of each calendar quarter, (1) reports summarizing
the provisioning
and maintenance of all network facilities
and services procured from the licensee’s
affiliate in that destination market; and (2) listing its active and idle circuits on the U.S.-destination route by type of transmission facility.
47 CFR 1.767(m)(1)	2	2 Hrs.	4 Hrs.
SUBMARINE CABLE LANDING LICENSE
AMENDMENTS AND MODIFICATIONS
47 CFR 1.767(m)(2) RELINQUISH INTEREST	1	2 Hrs.	2 Hrs.
Any licensee that seeks to relinquish its interest
in a cable landing license shall file an application
to modify the license. Such application must
include a demonstration that the applicant is not
required to be a licensee under paragraph (h)
of this section and that the remaining licensee(s)
will retain collectively de jure and de facto
control of the U.S. portion of the cable system
sufficient to comply with the requirements of the
Commission's rules and any specific conditions
of the license, and must be served on each other
licensee of the cable system.
47 CFR.1.767(a) SUBMARINE CABLE LANDING LICENSE SPECIAL TEMPORARY AUTHORITY Application requesting immediate authority for temporary service or for emergency service.	6	2 Hrs.	12 Hrs.
47 CFR 1.767; 47 CFR 63.18 INTERNATIONAL SECTION 214 APPLICATION FOR OVERSEAS CABLE CONSTRUCTION (FCC FORM 214)	0	9 Hrs.	0 Hrs.
47 CFR 1.768(a), (e) NOTIFICATION BY AND PRIOR APPROVAL FOR SUBMARINE CABLE LANDING LICENSEES THAT ARE OR PROPOSE TO BECOME AFFILIATED WITH A FOREIGN CARRIER Affiliations Requiring Prior Notification: A cable licensee must notify the Commission 45 days before consummating a transaction that results in the licensee, or certain of its affiliates as described in the rule, acquiring a controlling interest in a foreign carrier that is authorized to operate in a non-WTO market where the cable lands, or that results in the acquisition of greater than 25% of the capital stock, or a controlling interest, in the licensee by a foreign carrier authorized to operate in a non-WTO market where the cable lands, unless the licensee is able to make one of the showings in paragraph (b) of this section. The licensee must provide in its prior notification the information specified in paragraph (e) of this section.	1	9 Hrs.	9 Hrs.
47 CFR 1.768(b)-(c), (e) POST-CONSUMMATION NOTIFICATIONS BY SUBMARINE CABLE LANDING LICENSEES THAT HAVE ACQUIRED AN AFFILIATION WITH A FOREIGN CARRIER Any licensee that becomes affiliated with a foreign carrier and has not previously notified the Commission pursuant to this section shall notify the Commission within 30 days after consummation. The licensee must provide in its post-notification the information specified in paragraph (e) of this section.	6	9	54
47 CFR 1.768(d) If the transaction requiring the notification involves a transfer of control or assignment application under 1.767(a)(11), the notification shall reference the transfer/assignment application and the filing date.	4	0.5	2
47 CFR 1.768(f) If the licensee seeks to be excepted from the reporting requirements in 1.787(l) for a newly affiliated route, the notification must include a showing that the licensee is eligible as a non-dominant provider on the route pursuant to the criteria described in 63.10.	5	2	10
47 CFR 1.768(g)(2) In the case of a prior notification filed under 1.768(a), the notification must include a showing that it continues to serve the public interest for the licensee to retain its interest in the license for that segment of the cable that lands in the non-WTO destination market. Such a showing shall include a demonstration as to whether the foreign carrier lacks market power in the non-WTO destination market with reference to the criteria in §63.10(a). In addition, upon request of the Commission, the licensee shall provide the information specified in 1.767(a)(8).	1	2 Hrs (if no comments are filed) 8 Hrs (if comments are filed). This burden includes a possible, additional information request by Commission staff in the event concerns are raised.	8
47 CFR 1.768(h) Accuracy of contents of notification. Licensees are responsible for continuing accuracy of information in the notification for a period of 45 days after filing. During this period, if information is no longer accurate, the licensee shall file, as promptly as possible and in any event within 10 days, unless good cause is shown, a corrected notification referencing the FCC File No. of the original notification.	7	1	7
47 CFR 1.768(i) A licensee filing a prior notification under 1.768(a) may request confidential treatment under 47 CFR 0.459 for 20 days after filing.	1	6	6
Totals:	94 Number of Responses	0.5 – 17 Hours	421 Total Annual Burden Hours

In-House Costs – We estimate that in-house staff is paid at an estimated rate of $40 per hour.

421 hours X $40 per hour = $16,840 Total In-House Costs to Respondents

13. Annual Burden Cost:

(a) Capital and Start-up Costs: 0

(b) Operation and Maintenance Costs

Outside Legal/Engineering Assistance: We estimate that the respondent will require outside legal and engineering assistance for 50% of the responses (47).⁷ The cost of outside legal and engineering assistance is estimated at $300 per hour. The figure is based on a small survey of local firms in the D.C. area and is considered a conservative estimate.

47 responses x 4 hours per response x $300 = $56,400 Total Outside Legal/Engineering Costs

Application Filing Fees:

As shown on the chart below, the total of application filing fees is $56,440.

Cable Landing License Application	Number	Application	Total
Filing Fees	of Applicants	Fees	Costs
Cable Landing License (Non-common Carrier)	1	$19,855	$19,855
Cable Landing License (Common Carrier)	0	$2,005	$0
Overseas Cable Construction (Common Carrier)	0	$17,850	$0
Special Temporary Authority	6	$1,195	7,170
Prior Consent to Assignments and Transfers of Control	8	$1,195	9,560
Totals:	15		$36,585

(c). Total Annual Cost Burden

Description of Estimated Costs to Respondents	Total Costs
Outside Legal/Engineering Assistance	$56,400
Application Filing Fees	$36,585
Total Cost to Respondents	$92,985

14. Estimates of Annualized Cost to the Federal Government:

The estimates of annualized cost to the Federal government are summarized in the chart below. As shown in the chart, the annualized costs to the Federal government are $56,286.75

			Annual
Federal Government	Number	Salary	Burden	Annualized
Staff	of Staff	Per Hour	Hours	Costs
GS-15/Step 5 Attorney	1	$77.49	250	$19,372.50
GS-14/Step 5 Attorney	1	$65.88	250	$16,470.00
GS-15/Step 5 Engineers	1	$77.49	125	$9,686.25
GS-11/Step 5 Administrative Assistant	1	$39.12	275	$10,758.00
	4			$56,286.75

15. The Commission does not have any program changes to this collection. However, there is an adjustment/increase of $4,480 to the annual cost. This adjustment is due to increases to the application filing fees from $88,505 to $92,985.

16. The Commission does not plan to publish the information for statistical use.

17. A waiver of the OMB expiration date is necessary.

18. There are no exceptions to the certification statement.

Part B. Collections of Information Employing Statistical Methods:

This collection of information does not anticipate the use of statistical methods.

1 For all applications, records must be maintained by respondents and the time for maintaining these records are included in the estimated time per response.

2 All of the information collection requirements contained in this chart including waivers have true burden impacts.

3 The Report and Order reorganizes Section 1.767(a)(8) into four subparagraphs, 1.767(a)(8)(i)-(iv). The information collection associated with 1.767(a)(8)(iv) appears in the next row of this chart.

4 The Commission estimates that no more than one application annually will require the applicant to respond to the information request in 1.767(a)(8)(iv). The application may be for an initial cable landing license or for consent to assign or transfer an interest in a cable landing license. We have included the one response and the associated 2 hour burden in this chart only once, under 47 CFR 1.767(a)(8)(iv), in order to eliminate double counting the annual hour burden associated with the 1.767(a)(8)(iv) information requirement that is cross-referenced in 1.767(a)(11)(i).

5 The burden is accounted for in the requirement under Section 1.767(a)(5).

6 The Commission arrived at the annual number of responses of 28 based on the following calculation: 7 respondents x 4 responses (1 response per quarter x 4 quarters).

7 The rules and requirements in this collection will not require respondents to maintain any special equipment.

10