******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) SSI Atlantic Crossing LLC ) ) File No. SCL-97-002 Application for a license to land and operate) in the United States a digital submarine cable) system extending between the United States) and the United Kingdom and Germany ) ORDER ON RECONSIDERATION Adopted: October 21, 1997 Released: October 22, 1997 By the Chief, Telecommunications Division: 1. In this Order on Reconsideration, we set aside, on our own motion pursuant to Section 1.108 of the Commission's rules, one restriction that we imposed on a cable landing license recently granted to SSI Atlantic Crossing, LLC ("SSI"). Specifically, we set aside the requirement that SSI seek Commission approval prior to the sale or transfer to a foreign entity of five percent or more in the aggregate of indirect ownership in SSI. 2. In the order granting the cable landing license, we acknowledged that the licensee would be indirectly wholly owned by Tyco International Limited ("Tyco"), which is a publicly traded corporation. SSI would therefore be in violation of its license if foreign entities were to purchase in the aggregate five percent or more of Tyco stock on a stock exchange, an event over which SSI has no control and no ability to seek prior Commission approval. SSI advises us that it therefore cannot accept the terms and conditions upon which the license was granted. 3. We have not routinely imposed this restriction on indirect ownership in the past, nor did we intend the consequences envisioned here. Upon further reflection, we are satisfied that the remaining restrictions in the cable landing license, as herein modified, are sufficient to protect the public interest in this case. For example, there can be no transfer of control of SSI or Tyco without prior Commission consent, and any change in direct ownership of SSI of five percent or more requires prior Commission consent. SSI is obligated to comply with any requirements of United States government authorities regarding the location and concealment of the cable facilities, and the license is revocable for failure to comply with those requirements or any other terms of the license. 4. Accordingly, we remove the words "or indirect" from the eighth condition attached to the cable landing license. That is, we will not require SSI to obtain Commission approval prior to the acquisition of five percent or more of Tyco shares by one or more foreign entities. We will, however, maintain the requirement that SSI obtain Commission approval before the sale or transfer of five percent or more of the direct ownership of SSI. Ordering Clauses 5. Consistent with the foregoing and pursuant to the Cable Landing License Act, Executive Order 10530, and Section 1.108 of the Commission's rules, we hereby set aside, in part, one condition imposed in the license granted to SSI Atlantic Crossing LLC to land and operate a non common carrier cable system, DA 97-2034. We remove the words "or indirect" from the eighth condition attached to that license (as paragraph 15(8)). That condition now provides as follows: (8) The Licensee shall, by application, obtain Commission approval prior to the sale or transfer to a foreign entity of five percent or more in the aggregate of direct ownership in the licensee; 6. This Order on Reconsideration does not modify any other terms or conditions imposed in the license issued on September 23, 1997. 7. This Order is issued under Sections 0.261 and 1.108 of the Commission's rules, 47 C.F.R.  0.261, 1.108, and is effective upon release. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission's rules, 47 C.F.R.  1.106, 1.115, may be filed within 30 days of the date of public notice of this order (see 47 C.F.R.  1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Diane J. Cornell Chief, Telecommunications Division International Bureau