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SIA MAKES FINAL APPEAL TO FCC ON SATELLITE LICENSING ISSUE

Satellite Industry Assn. (SIA) supports FCC efforts to improve licensing system, but is concerned some proposed changes could affect satellite operators adversely, group told Commission in presentation Aug. 14, ex parte filing said. After 30 years, advances in technology and influx of new applicants that has slowed process dramatically, Commission is studying new rules for licensing regime in pending rulemaking. SIA is particularly concerned about changes in time when more stringent export controls, overcapacity and telecom slump have been blamed for hurting U.S. satellite market. SIA sought meeting with FCC officials to discuss way new rules would be implemented. “We are still a long way off from a final decision,” Coudert Bros. satellite analyst Timothy Logue told us: “This is a very important issue.” He said satellite licensing would be major topic at International Satellite & Communications Conference and Expo in Long Beach, Cal. Tues.-Thurs.

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System definitely “needs to be fixed before it breaks down,” Logue said, and Commission must be careful in way it implements changes. SIA opposes FCC plans to license companies on “first-come, first-served” basis. Logue said satellite operators also were skeptical about another proposal that would shorten length of time for processing rounds: “The system as proposed by the FCC won’t work the way the FCC thinks it’s going to work.”

Commission can make significant improvements by minimizing sources of delay that are within its control, ex parte filing said. Some improvements, such as putting applications on notice within 10 days of receipt, already have been adopted. SIA said expedited approach was used earlier this month for 2 GHz Mobile Satellite Service (MSS) modification and transfer applications. In contrast, applications for V-band systems filed in Sept. 1997 before new policy still haven’t gone on public notice, SIA said. New policy rounds should be created, it suggested. It said cutoff notice should be issued within 30 days of filing of new application and once deadline had passed, all applications should be placed on public notice together using 10-day deadline. Agency also should use uniform service rules for different satellite services, it said.

Worst delays usually occur during lengthy settlement negotiations among applicants, filing said. Commission could issue public notice immediately after passage of application cutoff date that would: (1) Establish 30-day deadline for filing of comments and petitions. (2) Establish concurrent 60-90 day deadline for filing proposals that some or all of applicants could negotiate for resolving mutual exclusivity. (3) Limit ex parte presentations to 30 days once pleading and negotiation periods were complete. Afterward, Commission would issue order within 90 days following close of ex parte filing period that would include decision on distribution of spectrum and orbital assets among applications.

Commission also should expedite inquiries on milestone compliance, SIA said. About 4 years pass between license issuance and license revocation and more than half of delay involves lag between milestone deadline and release of revocation order, it said. If FCC adopted completion milestone, licensees should select their own deadlines since that wouldn’t delay start of service. SIA said FCC should require satellite applicants to file electronically, streamline technical disclosure rules for applicants, require submission of ITU materials as part of application.

Regulatory process can be streamlined so resources can best be used to address licensing issues, Assn. said. It urged that satellite operators using multiple orbital positions be permitted to move licensed satellites between authorized orbital positions subject to limited restrictions and reporting requirements. Commission should simplify process for processing Special Temporary Authority (STA) requests by incorporating its existing processing procedures into its rules, SIA said, and agency should renew existing satellite authorizations automatically for additional 5 years (matching 15-year period for new studies).

Despite problems, current system isn’t all bad, SIA said. Use of processing round has aided licensing process, it said, by: (1) Providing reliability and certainty. (2) Establishing fixed applicant pool to enable adoption of equitable solutions to licensing of competing applications. (3) Using fixed applicant pool to create new satellite services by offering incentive to assist in ITU spectrum allocation process. (4) Helping FCC to promote use of new technologies to maximize efficient spectrum use. (5) Maximizing number of spectrum users because Commission almost always issues licenses to all applicants.