Licensing Policies and Procedures, Domestic Common Carrier Satellite Service

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 25 and 94

[CC Docket No. 92-166; FCC No. 94-11]

Licensing Policies and Procedures, Domestic Common Carrier

Satellite Service

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: On January 19, 1994, the Commission adopted a Notice of

Proposed Rulemaking seeking comments on its proposed rules to govern

the licensing and regulation of mobile satellite systems operating in

the 1610-1626.5/2483.5-2500 MHz frequency bands (1.6/2.4 GHz MSS). The

proposed qualification requirements and technical rules are intended to

facilitate the provision of new domestic and international satellite

services.

DATES: Comment date: May 5, 1994; Reply comment date: June 6, 1994.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW.,

Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:

Fern Jarmulnek, Common Carrier Bureau, (202) 634-1682; Kathleen

Campbell, Common Carrier Bureau, (202) 634-1952.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice

of Proposed Rulemaking adopted January 19, 1994, and released February

18, 1994. The full text of this Commission decision is available for

inspection and copying during normal business hours in the FCC

Reference Center (room 239), 1919 M Street, NW., Washington, DC 20554.

A complete text of this decision also may be purchased from the

Commission's copy contractor, International Transcription Service,

Inc., (202) 857-3800, 2100 M Street, NW., suite 140, Washington, DC

20037.

The following collection of information contained in this proposed

rule has been submitted to the Office of Management and Budget for

review under section 3504(h) of the Paperwork Reduction Act (44 U.S.C.

3504(h)). Copies of the submission may be purchased from the

Commission's copy contractor, International Transcription Service,

Inc., (202) 857-3800, 2100 M Street, NW., suite 140, Washington, DC

20037. Persons wishing to comment on this collection of information

should direct their comments to Timothy Fain, (202) 395-3561, Office of

Management and Budget, room 3235 NEOB, Washington, DC 20503. A copy of

any comments filed with the Office of Management and Budget should also

be sent to the following address at the Commission: Federal

Communications Commission, Records Management Division, room 234,

Paperwork Reduction Project, Washington, DC 20554. For further

information contact Judy Boley, (202) 632-7513.

Title: Amendment of the Commission's Rules to Establish Rules and

Policies Pertaining to a Mobile Satellite Service in the 1610-1626.5/

2483.5-2500 MHz Frequency Bands, CC Docket No. 92-166.

OMB Number: None.

Action: Proposed new and revised collection.

Respondents: Businesses or other for profit, including small

businesses.

Frequency of Response: On occasion, annually.

----------------------------------------------------------------------------------------------------------------

No. of Hours per

Reporting requirements responses response Total

----------------------------------------------------------------------------------------------------------------

Proposed Sections 25.143(b), 25.213, 25.203 (j), (k)............ 6 900 5400

Proposed Section 25.143(e)(1)................................... 5 15 65

Proposed Section 25.143(e)(2)................................... 5 3 15

Proposed Section 25.143 (c), (d)................................ 5 2 10

Proposed Sections 25.115, 25.130, 25.213........................ 10 320 3200

Proposed Section 25.133(b)...................................... 10 2 20

-----------------------------------------------

Total....................................................... 41 .............. 8710

----------------------------------------------------------------------------------------------------------------

Note: These requirements will not all be triggered in the same

year.

Needs and Uses: The Notice of Proposed Rulemaking solicits public

comment on the Commission's proposals for rules and policies to govern

the licensing and provision of service by voice and data mobile

satellite service (MSS) systems in the 1610-1626.5/2483.5-2500 MHz band

(1.6/2.4 GHz MSS).

As required by section 603 of the Regulatory Flexibility Act, the

Commission has prepared an Initial Regulatory Flexibility Analysis

(IRFA) of the expected impact on small entities of the proposals

suggested in this document.

Summary of Notice of Proposed Rulemaking

This Notice of Proposed Rulemaking represents the next step in the

process of licensing the world's first commercial low-earth orbit

satellites offering both voice and data mobile satellite services

(MSS). These satellites are to operate in the 1610-1626.5/2483.5-2500

MHz frequency bands (1.6/2.4 GHz bands). The proposed systems are to

provide a wide range of services, including cellular-like mobile

services to users anywhere, telephone service to remote areas that are

not linked to a communications network, position location services,

search and rescue communications, disaster management communications,

environmental monitoring, paging services, facsimile transmission

services, cargo tracking, educational communications, and industrial

monitoring. In addition to offering these services to users in the

United States, the proposed low-earth orbit systems have the capability

to extend these offerings throughout the world. This can potentially

expand markets for U.S.-developed goods and services and to make a

major contribution to U.S. global competitiveness. It also offers the

potential for significant economic and social advances in developing

countries by providing an ``instant'' telecommunications infrastructure

at minimum cost.

Six applications to construct satellite systems in these frequency

bands were filed by the cut-off date. Five proposed low-Earth orbit

(LEO) systems. These were filed by Ellipsat Corporation, Motorola

Satellite Communications Inc., Constellation Communications, Loral/

Qualcomm Corporation, and TRW, Inc. The other application was filed by

American Mobile Satellite Corporation. AMSC proposed to add the

additional MSS frequencies to its geostationary satellite orbit (GSO)

MSS system that was authorized in 1989. An international allocation for

MSS in these frequency bands was made in February 1992; a domestic

allocation was adopted in December 1993.

A negotiated rulemaking was undertaken from January through April

1993 to assist the Commission in establishing technical and operational

rules to govern this new service (hereinafter 1.6/2.4 GHz MSS) and in

developing an arrangement by which all six pending system proposals

could be accommodated. Neither the Commission nor the applicants were

able to fashion a spectrum sharing compromise that was acceptable to

all. The Committee did, however, reach consensus regarding other major

technical issues. After the Negotiated Rulemaking was concluded, the

LEO applicants, in two new ``partial settlement'' groups, submitted two

new sharing proposals they assert would permit all LEO applications to

be granted. Both proposals are premised on excluding GSO systems from

consideration for licensing in these frequency bands.

Licensing Procedure

If the applicants can develop or agree to an engineering solution

or sharing scheme by which all proposed systems can be accommodated,

the Commission generally adopts this approach if it is otherwise in the

public interest. In situations where all applicants' proposed systems

cannot be accommodated, the Commission must devise a method consistent

with the public interest for choosing among them. In such cases, the

Commission has, as an initial matter, imposed rigorous financial and

technical requirements as a means of ensuring that those granted

licenses are capable of expeditiously implementing state-of-the-art

systems that will serve the public interest. If it is not possible to

accommodate all qualified applicants, a further processing mechanism

must be selected.

Qualification Requirements

As a means of encouraging new technology and of realizing the

unique benefits that a global system can provide, the Commission

proposes a LEO design requirement (proposed rule Sec. 25.143(b)(2)(i)).

It solicits comment on this proposal from both applicants and potential

users, requesting that commenters address the potential for 1.6/2.4 GHz

MSS systems to generate social, economic, and technical benefits, both

domestically and globally, and the extent to which these benefits are

realizable with LEO and GSO satellites. The Commission further proposes

that systems be capable of serving all areas of the world, except for

the polar regions, for at least 75% of each day. Specifically, the

Commission proposes that satellite systems be designed so that at least

one satellite is visible above the horizon at an elevation angle of at

least 5 deg. for at least 18 hours each day at latitudes less than

80 deg. (proposed rule Sec. 25.143(b)(2)(11)). To provide efficient and

ubiquitous service to users throughout the United States, the

Commission also proposes to require systems to be capable of providing

continuous voice services to all areas of the United States (proposed

rule Sec. 25.143(b)(2)(iii)). That is, satellite systems must be

designed so that at least one satellite is visible above the horizon at

elevation angles of at least 5 deg. at any given time in all areas of

the United States.

Further, the Commission proposes strict financial qualification

requirements identical to those in the domestic fixed-satellite

service, where applications to implement space stations regularly

exceed the number that can be accommodated (proposed

Sec. 25.143(b)(3)). Specifically, the Commission proposes that MSS

applicants be required to provide evidence of current assets or

irrevocably committed debt or equity financing sufficient to meet the

estimated costs of constructing and launching all planned satellites

and operating the system for one year. These requirements stem from the

Commission's repeated experience that licensees without sufficient

resources spend a significant amount of time attempting to raise the

capital needed to finance a satellite system (here, $97 million to $2

billion), that these attempts often end unsuccessfully, and that

qualified fully-financed applicants may be blocked from entry during

this several-year period.

All applicants will be given the opportunity to amend their

applications to bring them into compliance with any final rules.

Processing Alternatives

While a sharing solution could not be developed during the

Negotiated Rulemaking, the Commission believes that the recent LEO

sharing proposals may form the basis for allowing it to proceed

expeditiously with licensing. Both of the LEO applicants' proposals

appear to allow up to five LEO systems to be accommodated in the 16.5

MHz of spectrum allocated to MSS in each transmission direction. This

may be sufficient to allow all qualified applicants to be licensed.

The Commission proposes to assign licensees implementing code-

division multiple access (CDMA) systems to 11.35 MHz of shared

bandwidth at 1610-1621.35 MHz. It further proposes to assign a

frequency division multiple access (FDMA)/time division access (TDMA)

system to 5.15 MHz of dedicated bandwidth at 1621.35-1626.5 MHz. When a

system is launched and read to begin operating, it will be permitted to

operate over the entire assigned bandwidth for that technology. Any in-

orbit CDMA system will be required to operate compatibly with any newly

launched CDMA system. If only one CDMA system is implemented, the plan

proposes to adjust the assignments for the system to 8.25 MHz at 1610-

1618.25 MHz, leaving the freed spectrum available for possible

reassignment to the FDMA licensee or for new entry. The Commission

believes that 8.25 MHz should be ample to support a first-generation

system and should provide some flexibility in coordinating the system

internationally.

The plan includes the 1.6 GHz band only. While CDMA systems will

use the 2.4 GHz band for downlink transmissions, an FDMA/TDMA system

will use the 1.6 GHz band for both uplink and downlink transmissions.

This may free some spectrum in the 2.4 GHz band and provide some

flexibility in assigning specific downlink spectrum segments to CDMA

licensees. For example, the Commission may decide to avoid licensing in

those portions of the 2.4 GHz band that are especially susceptible to

inter-service interference. Thus, while the Commission proposes to

license CDMA operators to share the same amount of 2.4 GHz downlink

spectrum as 1.6 GHz uplink spectrum, it does not propose specific

frequencies for downlink operations at this time.

The commission requests comment on all aspects of its sharing

proposal.

Other Alternatives if Mutual Exclusivity is Not Resolved

If the Commission's spectrum sharing plan, or some variation of it,

does not permit the applications of all qualified applicants to be

granted, the Commission must devise a procedure for choosing among

those applicants. Possibilities include a comparable hearing, an

auction, or a lottery. These alternatives are briefly discussed and, to

expedite licensing if mutual exclusivity is not resolved, the

Commission proposes structures for both an auction and a lottery.

The Commission's experience with comparative hearings has shown

they usually are prolonged. Here, they would not only delay the

provision of needed service to the United States public, but the delay

could disadvantage the United States in coordinating a licensed system

internationally. For these reasons, it may not be advisable to hold a

comparative hearing.

The 1993 Budget Act gives the Commission the authority to employ

competitive bidding procedures to select licensees from among two or

more mutually exclusive applicants provided that certain criteria are

met. The Commission believes it mutual exclusivity among the applicants

cannot be resolved, an auction may be considered. Specifically, MSS

licensees will be providing a commercial subscription-based service

that will enable subscribers to transmit or receive MSS transmissions

in the frequencies on which the MSS space stations will be licensed to

operate. A competitive bidding system should permit a new service to be

more rapidly introduced than would a comparative hearing. It should

also allow the public to recover the value of the public spectrum

resource being made available for commercial use. Further, it should

encourage efficient use of the electromagnetic spectrum by encouraging

applicants to bid on only the minimum amount of spectrum needed. The

Commission recognizes that the statute also directs it to promote

economic opportunity by disseminating licenses to a wide variety of

licensees, including small and minority businesses. It requests comment

on the manner in which this statutory obligation can be taken into

account. The Commission also recognizes that an auction may have

unintended consequences internationally by encouraging other countries

to impose licensing costs on MSS systems. The Commission will carefully

consider these concerns.

The Commission envisions that if an auction is employed, it will be

conducted pursuant to the general framework adopted in its Competitive

Bidding Implementation Proceeding (PP Docket No. 93-253). The

Commission also proposes service-specific criteria. To maximize

multiple entry and to encourage applicants to bid only for the minimum

amount of spectrum they require, the Commission proposes to auction the

16.5 MHz of bandwidth in each transmission direction in eight paired

2.0625 MHz uplink and downlink segments. Based on the applicants'

proposals, it appears that some MSS systems could be implemented with

as little as 2 to 4 MHz of spectrum in each transmission direction. To

afford licensees some flexibility, however, the Commission proposes to

allow applicants to big successfully on up to four segments, for a

total of 8.25 MHz of bandwidth in each transmission direction. Given

the CDMA applicants' proposals to share spectrum, the Commission also

questions whether it should permit successful bidders to agree to pool

their spectrum and implement co-frequency systems.

Section 309(i) of the Budget Act also authorizes the use of a

lottery to select from among one or more mutually exclusive applicants

if the applications are accepted for filing before July 26, 1993. The

Commission tentatively concludes that if mutual exclusivity cannot be

resolved, the statutory requirements for a system of random selection

are met. The Commission proposes to implement a lottery in a manner

similar to its proposed auction framework. Specifically, eight 2.0625

MHz paired segments would be offered, and each selectee would be

limited to four segments. The Commission questions whether it may be

advisable to permit applicants to agree among themselves that they will

implement co-frequency systems if one of them is chosen as the

tentative selectee, allowing the Commission to grant licenses to all

qualified applicants in the pool.

The Commission requests comment on all aspects of these alternative

processing mechanisms.

Interservice Sharing

The radioastronomy service (RAS), the aeronautical radionavigation

service (ARS), the instructional television fixed-service (ITFS), a

variety of terrestrial services, and industrial, scientific and medical

(ISM) equipment all operate in portions of the bands allocated to MSS

or in adjacent bands. The Committee studied the potential for

interference between MSS and these services.

The Committee, which included an RAS representative, reached a

consensus regarding MSS-RAS sharing. These recommendations, which form

the basis for the Commission's proposed rules (Sec. 25.213(a)),

establish fixed radius protection zones around the sixteen radio

astronomy sites in the United States and set technical requirements for

MSS downlink transmissions.

GLONASS, the Russian Global Navigation Satellite System, is

operating in the 1610-1616 MHz band pursuant to International Radio

Regulation RR 732. MSS stations may not cause harmful interference to

or claim protection from stations operating under RR 732. During the

Negotiated Rulemaking, the FAA indicated that it sought to use GLONASS

in conjunction with the U.S. Global Positioning System (GPS) to provide

aircraft ground approach and terminal communications. The Committee

determined that MSS can coexist with GLONASS now, but if GLONASS were

used as proposed by the FAA, the GLONASS/MSS interference problems at

1610-1616 MHz would be unresolvable. The Committee proposed that

GLONASS be moved below the 1610 MHz band or, in the alternative, that

U.S. reliance on GLONASS be lessened or eliminated. Both inter-agency

and international negotiations have been initiated on this issue. We

are encouraged that even if GLONASS is used for aircraft approach

communications, it will be moved to frequencies below 1610 MHz. The

Committee's proposed rules regarding e.i.r.p. limits pursuant to RR

731F and limitations on the use of MSS terminals on aircraft fall

within accepted international standards and are set forth for comment

(proposed Sec. 25.213(c)).

The Committee also suggested a variety of solutions to the likely

interference problems between MSS and other services, ranging from

relocating existing licensees (e.g., ``grandfathered'' terrestrial

stations operating in the 2483.5-2500 MHz band) to imposing stricter

suppression requirements on transmissions in adjacent frequency bands

(e.g., ITFS stations operating above 2500 MHz). However, these

interests were not represented on the Committee, nor were the interests

of ISM operators in the 2483.5-2500 MHz band. In these cases, the

Commission does not believe that it can propose sharing rules without

developing the record more fully. It therefore requests comment on the

interference environment and possible solutions from affected

operators.

Feeder Links

Since the fixed-satellite frequencies to be used for LEO MSS feeder

links may also be used by GSO satellites, the Committee studied the

sharing potential between LEO and GSO satellites. It concluded that

sharing was feasible. The Committee also studied the obligations of the

United States under RR 2613, which essentially requires a LEO operator

to cease operations when unacceptable interference is cause to a GSO

system. To afford LEO operators some protection, the Committee

suggested that the U.S. seek international agreement that RR 2613 will

not be invoked to require a LEO operator to terminate transmissions

unless: (1) The affected administrations reach agreement as to a level

of ``accepted interference,'' (2) the LEO system is operating in excess

of these levels, and (3) the excess interference is caused by the LEO

satellite's failure to maintain sufficient angular separation between

the satellites.

The Commission accepted the Committee's analysis that sharing

between LEO feeder links and GSO systems is feasible with coordination.

Further, the Commission agrees with the Committee's interpretation of

RR 2613 and has already begun to explore, in international forums,

issues relating to international coordination of and protection for LEO

system feeder links.

Several applicants request feeder links in the 5/6 GHz frequency

bands (C-band); other request the 20/30 GHz bands (Ka-band). The FAA

opposes feeder links at 5 GHz, arguing that feeder link operations

would be incompatible with its intended use of the band for new

navigation aids. In a related Further Notice of Proposed Rulemaking

regarding the Local Multi-point Distribution Service (CC Docket No. 92-

297; FCC No. 94-12) 59 FR 7964, February 17. 1994 adopted the same day

as this Notice, the Commission proposes to conduct a negotiated

rulemaking to assist it in assigning the 27.5-30.0 GHz frequency band.

It expects, in the context of that proceeding, to be able to identify

sufficient spectrum to satisfy 1.6/2/4 GHz MSS operators. The

Commission will, however, continue to pursue feeder links at 5 GHz and

will allow applicants to incorporate these bands or other bands if they

become available.

Intersatellite Links

Motorola's proposed system system includes intersatellite links in

the 23.18-23.38 GHz band. The Committee concluded that Motorola's use

of this band would be compatible with other operations in the band. The

Committee's recommended rules regarding intersatellite service

frequencies, coordination with government agencies, and sharing

criteria are contained in proposed rule Sec. 25.279.

Service Rules

Regulatory Classification

The 1993 Budget Act requires that the provision of space segment

capacity directly to commercial mobile radio service (CMRS) providers

be treated as common carriage. However, the Act gives the Commission

the discretion to determine whether the provision of space segment

capacity to CMRS providers should be treated as common carriage. (Most

of the pending applicants propose to offer service through resellers.)

The Commission tentatively concludes that 1.6/2.4 GHz MSS offering

will, in most cases, fall within the definition of CMRS. The Commission

requests comment on whether 1.6/2.4 GHz MSS space station licensees

making satellite capacity available to CMRS providers should be

required to operate as common carriers. Specifically, the Commission

requests comment regarding whether there may be any public interest

reasons to impose a legal compulsion upon 1.6/2.4 GHz MSS operators to

serve the public indifferently, and whether a decision to exempt

operators from common carriage requirements will allow them to engage

in unreasonable or anticompetitive practices. The Commission recognizes

that requiring common carriage may limit the amount of foreign

participation in these inherently global systems, potentially impeding

international coordination of these satellites. The Commission requests

comment on the extent to which applicants are seeking foreign

investment and the extent to which a common carriage requirement may

impact their plans. The Commission also requests comment regarding the

likelihood that 1.6/2.4 GHz MSS space station capacity will inherently

be offered as an indifferent holding out to the public.

System License and License Term

The Commission also proposes licensing and service rules (proposed

rules Secs. 25.143(a), (c) and (d), 25.120(e), and 25.143(e) and (g)).

These include blanket licensing for the space segment, a ten year

operating license that begins to run when the first LEO satellite is

launched, authority to replace older satellites as they are retired, a

filing window for next-generation system proposals, system

implementation milestones, and an annual reporting requirement.

Mobile Earth Station Licensing

The Commission proposes to license gateway and tracking, telemetry

and control (TT&C) stations as fixed-satellite earth stations under

part 25 of the Commission's Rules. It also proposes a blanket licensing

approach for mobile user transceivers under which a service vendor

would hold the authorization for a specified number of technically

identical units. The Commission's proposals for earth station licensing

are contained in Secs. 25.115(d) (applications for earth station

authorizations); 25.130(b) (filing requirements for transmitting earth

stations); 25.133(b) (period of construction; commencement of

construction); 25.136 (operating provisions for earth station networks

in the 1.6/2.4 GHz mobile-satellite service); and 25.213 (technical

requirements for the 1.6/2.4 GHz mobile-satellite service). The

Commission requests comment on these proposals.

To help maintain an interference-free environment, the Commission

proposes to require an end user to obtain the authorization of the

space station operator, either directly or through an authorized

service vendor, before the user may transmit to that system. The

Commission believes that this approach will facilitate roaming by

international user while still protecting the domestic electromagnetic

environment.

The regulatory treatment of earth station licensees will depend

upon whether they will be providing CMRS, although the Commission

expects that they will. Earth station licensees that provide CMRS must

be regulated as common carriers.

International Coordination

All space segment licensees will be required to provide the

Commission with all information required for international

coordination. The Commission will follow the coordination procedures

prescribed by the International Telecommunication Union and will work

with the global community to promote mobile satellite services through

the development of sharing techniques and the exploration of other

technical issues. The Commission will also require United States

licensees to meet all international obligations any national

requirements imposed by other licensing administrations regarding

operations within their borders. All decisions relating to implementing

1.6/2.4 GHz MSS within a country's territory will remain solely within

that country's jurisdiction and control.

Procedural Matters

This is a non-restricted notice and comment rulemaking proceeding.

Ex parte presentations are permitted, except during the Sunshine Agenda

period, provided that they are disclosed in accordance with Commission

rules. See generally 47 CFR 1.1202, 1.1203 and 1.1206(a).

Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 603,

this proceeding could affect the marketing opportunities of potential

new service providers or equipment manufacturers, who may be small

entities, in the voice mobile-satellite services. As this is a new

service, the number of such small businesses is unknown. Public comment

is requested on the initial regulatory flexibility analysis set out in

full, in the Commission's complete decision.

Pursuant to applicable procedures set forth in Secs. 1.415 and

1.1415 of the Commission's rules, 47 CFR 1.415 and 1.419, interested

parties may file comments on or before May 5, 1994, and reply comments

on or before June 6, 1994. All relevant and timely comments will be

considered by the Commission before final action is taken in this

proceeding.

Ordering Clauses

Accordingly, pursuant to authority contained in sections 4(i) and

303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 154(i)

and 303(r), we hereby give notice of our intent to adopt the

regulations and licensing policies described above.

It is ordered that the Secretary shall send a copy of this Notice

of Proposed Rulemaking to the Chief Counsel for Advocacy of the Small

Business Administration in accordance with 5 U.S.C. 601 et seq. (1981).

List of Subjects

47 CFR Part 25

Communications common carriers, Radio, Reporting and recordkeeping

requirements, Satellites.

47 CFR Part 94

Communications equipment, Radio, Reporting and recordkeeping

requirements.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 94-5829 Filed 3-11-94; 8:45 am]

BILLING CODE 6712-01-M