FCC Likely Won’t Veer from Spectrum, Part 25 Rules Efforts in Obama’s Second Term

Spectrum efficiency and spectrum use are going to be the priority for Obama’s second term, no matter who the FCC chairman is, said Patricia Cooper, Satellite Industry Association president. “It will be increasingly important for the satellite industry to understand how those priorities affect our existing services, how they affect our ability to continue to innovate and how we can ensure that the policymakers and lawmakers are familiar with the particulars of the satellite industry,” which are different from other terrestrial wireless services, she said. “It’s still a Democratic commission,” a satellite industry attorney said. “I can’t see anything at this point really changing.”

So far, Genachowski has been pretty friendly to the satellite industry, a second satellite industry attorney said. The attorney said the coming order that’s expected to allow Dish Network to use spectrum for a terrestrial buildout is a pretty big deal (CD Nov 9 p13). “The other big issue is what’s going to happen with Globalstar” and its interest in also wanting to lease its spectrum for terrestrial services, the attorney said. (See separate report in this issue below.) The satellite industry expects efforts to change and simplify the licensing applications process under Part 25 rules to remain on the same track, industry lawyers said. The FCC at its Sept. 28 meeting approved a notice of proposed rulemaking that would change more than 100 rule sections pertaining to earth and space stations licensees (CD Oct 1 p10).

"We've been very encouraged to see the NPRM on Part 25,” Cooper said. “It will be a priority for us to continue that drive toward more efficient processes that make it easier to apply for licenses and easier to process them.” From the industry’s perspective, “that will continue to be an important area,” said Maury Mechanick, a satellite attorney at White & Case. “Anything that can be done to simplify or streamline existing regulatory requirements related to the operation and licensing of satellites to the industry will be important."

The proceeding to streamline Part 25 rules is going to move forward, another satellite industry attorney said. “It doesn’t look to be a hugely politically controversial proceeding, so it’s an easy pickup for a new chairman who can do it without really taking a focus off of whatever else they may want to do.” Regulations around satellite export control reform should remain a priority in Congress, but they also could trickle down into the FCC processes, some attorneys said. Cooper said she expects interest to remain a priority in the space policy area and “we'll be watching the commission to see how those priorities translate into any new regulatory initiatives."

For satellite, “it’s probably more important what happens in Congress,” like International Traffic in Arms Regulations (ITAR) reforms, “and whether those are going to change and be more favorable to the U.S. industry,” an industry lawyer said. “In general, the FCC doesn’t really regulate a lot of satellite entities any more, because they've found it easier to go to other countries.” One issue for any new FCC chairman to consider is whether there is something that he or she could do “to try to bring back satellite companies to the U.S., because we've lost a lot of leadership in the satellite industry,” the lawyer said. Such executives are finding that foreign administrations are easier to deal with, the lawyer added.

There’s been “definite effects on the satellite industry from the restrictions because they can be extensive to comply with, they restrict the flexibility of companies in working with partners” and they affect launch opportunities, said a third satellite industry lawyer. “I don’t see any reason why that would slow down in a second term."

Another big part of the satellite agenda “is the extent to which satellites are viewed as an important part of the National Broadband Plan,” Mechanick said. “The quality of satellite delivery of broadband connectivity has really stepped up quite a bit.” When the NBP was being drafted, satellite was recognized as a possible broadband solution for rural areas, he said. There’s still a “lukewarm perception of the quality of service being provided,” he said. “That perception, hopefully, will start to change both in the marketplace and with the regulators.” Satellites “will hopefully not be treated the way they have in the past, almost like second-class technology … in terms of broadband rollout,” added Mechanick.

Obtaining terrestrial flexibility for satellite spectrum and the industry’s role in the public safety network are at the forefront of satellite’s agenda under a second Obama term, said Barbee Ponder, general counsel at Globalstar. He said he expects these issues to remain a bipartisan effort: “Those issues aren’t going to go away just because there may be a change in chairmanship."

Satellite executives said the FCC will maintain its approach and enthusiasm for pushing for more flexible use of spectrum, especially around the Dish proceeding and the possibility of terrestrial services through Globalstar’s spectrum. “We think that the FCC is going to use that proceeding [Dish] as a model for reviewing other MSS [mobile satellite services] bands, including our own,” Ponder said. The “main event” also will be public safety “and the role that satellite plays in whatever is ultimately done in an interoperable public safety network,” he said. The hope is that if Genachowski remains, his own attitude toward satellites will improve and, if he departs, that whoever would replace him would be open to viewing satellites on a more inclusive basis in terms of the NBP rollout, Mechanick said.

Some satellite industry executives said retransmission issues will remain on the radar of policymakers, but it’s uncertain as to how it will play out. One lawyer was encouraged by a June House Communications Subcommittee hearing on a possible rewrite of the Cable Act, which included contention on retrans agreements (CD June 28 p5). The hearings “showed that there is concern about what is going on and there is probably a desire to see if there is a remedy so I think it will still be an issue of importance,” that lawyer said. But it’s uncertain as to when it will get resolved, the satellite lawyer added. “I don’t think anything will happen if Genachowski remains chairman,” another satellite lawyer said. Movement on an FCC retrans proceeding might have a chance under commissioners Mignon Clyburn or Jessica Rosenworcel, should either head the agency, the attorney said: “If Jessica or Mignon is chairman, there’s a possibility that something could move on retrans.”