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POSSIBLE FCC REORGANIZATION ‘CONCERNS’ SATELLITE INDUSTRY

Satellite industry would be “very concerned by any changes” at FCC affecting satellite regulation, Satellite Industry Assn. (SIA) and Satellite Bcstg. & Communications Assn. said in July 30 letter sent to FCC before it became public knowledge that Commission was seeking to consolidate Mass Media and Cable bureaus and to add some satellite functions from International Bureau (IB)(CD Aug 29 p1). SIA and SBCA had been quiet about proposed changes until they released letter Fri. following Communications Daily request for response. Under current structure, satellite concerns are handled primarily by International Bureau, which is headed by Don Abelson. Letter was signed by SIA Exec. Dir. Richard DalBello and former SBCA Senior Vp Andrew Paul. Commission officials were closemouthed on proposed changes and future of Abelson, who is “very popular among satellite operators,” industry source told us: “He really understands our issues.” Satellite industry “worked hard” with Commission to create IB, letter said.

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Letter said IB was valuable and “offers the satellite industry an important edge that it needs to maintain its global market position.” SIA and SBCA also requested meeting, but there was no word on when that might happen. SIA and SBCA said FCC should be “wary of placing technologies that compete with each other in the marketplace and for the same spectrum,” such as cable and satellite, in same bureau. Reorganization would be “oversimplification that would not reflect how competing technologies engage each other in the marketplace,” it said: “Our experience indicates that such a decision would likely exacerbate market tensions, encourage policy gridlock at the staff levels and place greater demands on the time of commissioners for the resolution of even relatively minor issues.”

Reorganization efforts should ensure retention of expert Commission staffs “well-versed in the unique operating and regulatory needs” of satellite industry, letter said: “We cannot imagine any other equally effective organizational structure.” Current regulatory regime has contributed directly to success of satellite industry, SIA and SBCA said. Creation of IB in 1994 reorganization was “important development for satellite industry because for first time all satellite-related regulatory functions were housed under the same roof, giving the industry representation by a single knowledgeable voice” at FCC and providing “big picture understanding” of domestic and international issues faced by industry.