Satellite Industry Assn. (SIA) Exec. Dir. Richard DalBello praised FCC authorizations of 2nd round licenses for Ka-band service (CD Aug 6 p4). He said Commission “action underscores the increasingly critical role that satellite services play in delivering competitive broadband services” to U.S., and would ensure competition in broadband marketplace and “rapid diffusion of advanced communication technologies” to residential and business consumers. DalBello also said SIA was “extremely pleased” House International Relations Committee had voted to return jurisdiction over commercial satellites to Dept. of Commerce from State Dept.
Charles Hewitt is expected to announce his resignation as Satellite Bcstg. & Communications Assn. (SBCA) pres. at 2001 Convention & Trade Show in Nashville next week, industry sources said Wed. Speculation about possible resignation of Hewitt and Senior Vp Andrew Paul was rampant on Internet and throughout industry on Tues., and while SBCA had no comment, it issued news release announcing news conference for Aug. 2 at which Hewitt, Paul and Vp Govt. Affairs-Gen. Counsel Andrew Wright and SBCA Chmn. Stan Kozlowski were expected to discuss “directives initiated during the board meeting.” Some sources said Wright was likely candidate to replace Hewitt. Hewitt, Wright and Paul weren’t available for comment. DirecTV spokesman seemed to confirm resignation with statement Tues.: “Chuck will be missed. He did a tremendous job in leading the organization through a time of tremendous change and growth. We are grateful to Chuck and Andy Paul for their dedication to this industry.” Hewitt is scheduled to deliver one of keynote addresses at convention. His departure would mean top 2 lobbying groups for satellite industry would have new leaders. Two weeks ago, Clayton Mowry resigned as pres. of Satellite Industry Assn. (SIA) to become CEO of Washington operation of Arianespace. Change in leadership comes at time when satellite industry faces several critical issues, including constitutionality of must-carry, consolidation of DBS market, terrestrial use of satellite spectrum.
Some top satellite manufacturers companies may be forced “out of business” in next 2 years unless they merge or form strategic partnerships, or market demand dramatically improves, industry officials said. Analysts predict there will only be 25 satellite manufacturing contracts available in next 2 years, down from 60 this year. “There are 5 or 6 major players competing for 25 satellite manufacturing contracts,” Satellite Industry Assn. (SIA) Pres. Clay Mowry told us: “That’s a lot of manufacturers competing for a relatively small marketplace. The competition is pretty intense.”
Satellite industry has rebounded from slow growth in 1999 and expects strong gains this year, but satellite manufacturing in U.S. isn’t keeping pace with worldwide industry due in part to satellite export controls, Futron Corp. said in 5th annual survey released by Satellite Industry Assn. (SIA) Tues. Survey reported actual numbers from 2000 and projected 2001 totals. SIA Exec. Dir. Clayton Mowry said spectrum battle between satellite and terrestrial services, chances of Berman-Rohrabacher satellite export bill (HR-1707) and priorities of new FCC Comrs. Abernathy and Copps on industry also could have impact on industry.
Newly renamed and re-established House Aerospace Caucus may boost chances for Berman-Rohrabacher bill (HR-1707), which would return satellite export controls to Commerce Dept. from State Dept., said Bruce Mahome, Aerospace Industries Assn. (AIA) Space Policy Dir. Rep. Weldon (R-Fla.) and Rep. Kucinich (D-O.) are chmn. of new caucus, which met Wed. to address concerns of U.S. aerospace market, including satellite industry. “Party affiliation doesn’t really matter” in forming caucus, Weldon spokesman said, because it includes “people hard to the left and people who are hard to the right who feel the same way about a given issue.” HR-1707 has picked up 14 co-sponsors and will be high on caucus’s agenda, Mahome said. “We will be working very seriously with the caucus on the Berman-Rohrabacher bill.” Support from caucus “possibly” would help bill’s chances of passing house, spokesman for Weldon said. “I know that’s a bill of extreme importance to the industry and it’s going to be given its proper review and we'll see what happens,” he told us.
Satellite Industry Assn. (SIA) and Satellite Bcstg. & Communications Assn. (SBCA) objected late Tues. to CTIA’s FCC petition to reallocate mobile satellite services (MSS) spectrum in 2 GHz band. CTIA cited financial problems of industry in filing May 18 asking FCC to “reallocate” MSS spectrum “for more efficient uses” (CD May 21 p5) as reason for rulemaking, citing Iridium bankruptcy. “Despite years of development and massive investment, MSS providers have been unable to make effective use of the extremely valuable spectrum,” CTIA said. SIA Exec. Dir. Clayton Mowry disputed CTIA claim that industry problems were show- stopper: “We think it’s pretty short-sighted to make those claims on a financial basis. You have to understand that globally, mobile telephony took in over $2 billion in revenue.” Giving CTIA MSS spectrum wouldn’t serve public interest because terrestrial cellular service can’t cover entire country, Mowry said. “There’s tens of thousands of miles that aren’t covered by terrestrial networks today, let alone with advanced 3G networks,” he said. “You're basically going to be denying service to millions of Americans that live in rural America,” Mowry said: “It took the cellular industry a long time to develop.” Memorial Day holiday threw off timing for filing petition with FCC, he said, but “we're working on it right now.” Meanwhile, Mobile Satellite Users Assn. (MSUA) Pres. Ahmad Ghais asked FCC to reject or dismiss CTIA petition, arguing that it was “frivolous and an abuse of process” and “must be dismissed as untimely.” FCC “has previously rejected similar requests for allocation and reconsideration” and must follow precedent, letter said. Granting CTIA request “will delay, likely even destroy,” mobile satellite companies and end competition with terrestrial cellular services, letter said.
Getting support of Rep. Rohrabacher (R-Cal.) was important for chances of bill that would return satellite export controls to Commerce Dept. to clear Congress, officials said. Jim Lewis, dir., Center for Strategic and International Studies told us “getting Rohrabacher on is important for helping its chances” because of bipartisan co-sponsors. “I think that I have managed through my tenacity to pull Berman and the aerospace industry over to a policy that’s more responsible than the ones they were backing in the past,” Rohrabacher told us. Bill introduced May 3 by Rep. Berman (D-Cal.) and Rohrabacher would return satellite export controls from State Dept. to Commerce Dept., reversing action Congress approved in 1999 (CD May 7 p3), though State Dept. and Defense Dept. would have right to veto any license approval by Commerce for national security reasons.
Satellite Industry Assn. (SIA) and Space Foundation announced support of bill by Reps. Berman (D-Cal.) and Rohrabacher (R-Cal.) that would return satellite export licensing authority to Commerce Dept. from State Dept (CD May 7 p3). Space Foundation Pres. Elliot Pulham said bill maintained “necessary and appropriate national security safeguards for sensitive technology” while addressing industry concerns over declining market share.
Export controls for satellite companies still are in flux while Commerce and State Depts. attempt to settle on uniform policy for licensing and controlling sensitive technology of satellite components, inspectors gen. (IG) said in March reports. Typical of problems is “political jostling” at State and Commerce over exports, satellite official said. They have agreed on 13 of 16 issues involving satellite components, but have been unable to reach consensus on others, Satellite Industry Assn. (SIA) Pres. Clay Mowry told us. Major regulation of satellite components is in “political limbo” as new officials take control of key govt. positions that provide oversight to industry.
Responding to congressional directive, FAA will call 2-day meeting April 25-26 at its Washington hq to get public comments on insurance requirements for commercial space launch and reentry activities. Meeting will be open to public and will allow agency to “explore the different issues,” including whether govt. should continue to insure launches against failures beyond required insurance, said Esta Rosenberg, FAA attorney. In addition to regular commercial launch insurance, govt. provides umbrella policy to cover “catastrophic failure” of communications or other satellite that causes more than $500 million damage, including to facilities on ground, said Clayton Mowry, exec. dir-Satellite Industry Assn. (SIA). Maximum govt. liability is $1.5 billion.