Uncertain Reception Seen for NGSO Domestic Coverage Proposal
The FCC move to ax the domestic geographic coverage requirement for non-geostationary orbit (NGSO) fixed satellite service systems, if it faces any opposition at all, might see resistance from Alaska interests. It's unclear how much sentiment there is among satellite operators for keeping the requirement, industry lawyers said. At least some operators argued in favor of maintaining the rule when another company sought a waiver of that requirement.
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The requirement that an NGSO FSS system provide continuous coverage of all 50 states, Puerto Rico and the U.S. Virgin Islands "could be unnecessary or counterproductive," the agency said in Wednesday's Federal Register, citing Space Norway plans for a constellation serving only the Arctic. That operator earlier this month received a waiver of the domestic coverage requirement (see 1711030063). The notice said the best way to encourage widespread NGSO FSS systems would be to allow general as well as specialized coverage systems. Comments on the Further NPRM are due Jan. 2 in docket 16-408, replies Jan. 29.
Alaska "desperately needs connectivity," and the requirement Space Norway cover the rest of the U.S. put the company "in this odd position," said outside counsel Phillip Spector of Milbank Tweed. Since it already has a waiver, elimination of the coverage requirement would be "belt and suspenders" for Space Norway, he said. The company supports elimination since that would obviate needing another waiver for other systems or changes to its constellation plans, Spector said. He hadn't heard of any strong satellite industry sentiment for keeping the rule, and Space Norway saw no objections to its waiver request.
OneWeb and Intelsat contested SpaceX's pending geographic coverage requirement waiver request. SpaceX sought the waiver as part of its application for authorization to operate its NGSO constellation, and earlier this summer said the waiver would apply only for the interim phase of initial deployment, when 1,600 of its satellites would blanket the whole globe except polar regions that include northernmost Alaska. It said once its constellation is fully deployed, that coverage gap would be filled in. Intelsat earlier this year said the domestic coverage requirement is aimed at ensuring all consumers benefit from satellite offerings, "not just those living in densely populated and affluent areas that are the most cost-effective to serve." SpaceX, and OneWeb didn't comment Wednesday. Intelsat said it's still considering whether to support or oppose the proposal.
The domestic coverage requirement exists only because of past political pressure from Alaska and Hawaii, a lawyer with NGSO experience told us. The lawyer said the two states could oppose such a rules change, though there also could be recognition that customized satellite systems would still provide service.
OneWeb conceivably could support keeping the requirement since it made serving Alaska a selling point (see 1710250025), a lawyer with an NGSO client said. That lawyer also said it's conceivable some Alaska interests could support the status quo, saying the state needs to be covered. The philosophical underpinning of the domestic coverage rule was to ensure that when there were fewer systems, everyone got coverage, the lawyer said. With numerous NGSO systems potentially going up in coming years, dictating their business plans might be a tougher argument to make, the lawyer said, saying the FNPRM falls squarely in line with deregulatory push of FCC Chairman Ajit Pai. New NGSO milestone rules -- that half a constellation must be launched within six years of licensing and the remaining half in the subsequent three years -- add a wrinkle to the domestic coverage requirement since it's not clear now by when a company must be providing total domestic coverage.
The lawyer said the FCC definitely paid attention to Alaska and Hawaii when Sen. Ted Stevens, R-Alaska, and Daniel Inouye, D-Hawaii, were in office, but the states today might have somewhat less clout, making it easier for such a rule change. The offices of Alaska Republican Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young, R-Alaska, didn't comment Wednesday.
Satellite Industry Association President Tom Stroup hadn't heard any objections about the proposal from members. SIA hasn't addressed it in a working group session.