28:45 AM
-C W N. A.
INC.
MEMORANDUM
TO:
cc:
J.H. Crouch
Mike G. Gale Terry Miller John M. Zrno
FROM:
K.E. Bernard
DATE:
2 June 1988
REF.:
FCC Meeting
CABLE & WIRELESS NORTH AMERICA, Inc.
As you know, yesterday I was contacted by Gerry Brock, Chief of the Common Carrier Bureau. Gerry asked if I could come in to meet with him yesterday afternoon which, in itself, is unusual. I had our outside counsel, Phil VerVeer, accompany me.
Gerry began the meeting by discussing the particulars of our 214 application to resell FTCC service to the U.K. The discussion, as led by Brock, rapidly moved to a rambling, philosophical discussion of reciprocity and he expressed particular concern on this matter "when a firm makes the rules." He then began to recount the recent discussions held between the FCC and C&W executives in Hong Kong.
Following is a synopsis of the principal points raised by Brock:
o
The focus of his discussion was not upon telcos but rather CWHK.
He characterized CWHK as a "unregulated monopoly".
This was seen as being significant due to the fact that Hong Kong was rapidly becoming a "hub" in the region due to traffic growth and "could become the largest point in the Pacific Ocean region." Hong Kong was further important because of the role played by C&W. He then returned to the topic of reciprocity and said there was a "basic question of fairness" at issue noting that CWNA operated on an unregulated basis domestically and was permitted to operate international service and further that the FCC had been quite accommodating with respect to PTAT and the NPC.