Satellite Application and Licensing Procedures

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR PART 25

[IB Docket No. 96-111; CC Docket No. 93-23; FCC 96-210]

Satellite Application and Licensing Procedures

AGENCY: Federal Communications Commission.

ACTION: Proposed Rules.

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SUMMARY: The Commission has proposed a uniform legal framework

permitting users in the United States greater access to satellites

licensed by other countries. In so doing, the Commission proposes to

collect certain legal, financial, and technical information from the

applicant. The Commission also proposes to eliminate its license

requirement for receive-only earth stations in the fixed satellite

service operating with U.S.-licensed space stations for the reception

of transmissions from foreign countries and allow them to voluntarily

register their stations.

DATES: Comments must be submitted on or before July 15, 1996; reply

comments must be submitted on or before August 16, 1996. Written

comments by the public on the proposed and/or modified information

collections are due July 15, 1996. OMB's Notice of Action on the

proposed and/or modified information collections must be submitted no

later than August 23, 1996.

ADDRESSES: Federal Communications Commission, 1919 M Street, N.W.,

Washington, D.C. 20554. In addition to filing comments with the

Secretary, a copy of any comments on the information collections

contained herein should be submitted to Dorothy Conway, Federal

Communications Commission, Room 234, 1919 M Street, N.W. Washington,

D.C. 20554, or via the Internet to [email protected], and to Timothy

Fain, OMB Desk Officer, 10236 NEOB, 725--17th Street, N.W. Washington,

D.C. 20503 or via the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Paula Ford, International Bureau,

Satellite Policy Branch, (202) 418-0760; Virginia Marshall,

International Bureau, Satellite Policy Branch, (202) 418-0778; Kathleen

Campbell, International Bureau, Satellite Policy Branch (202) 418-0753.

For additional information concerning the information collection

contained in this NPRM contact Dorothy Conway at (202) 418-0217, or via

the Internet at [email protected].

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

of Proposed Rulemaking in IB Docket No. 96-111; CC Docket No. 93-23;

FCC 96-210, adopted May 9, 1996 and released May 14, 1996. The complete

text of this Notice of Proposed Rulemaking is available for inspection

and copying during normal business hours in the FCC Reference Center

(Room 239), 1919 M Street, N.W. Washington, D.C., and also may be

purchased from the Commission's copy contractor, International

Transcription Service, (202) 857-3800, 2100 M Street, N.W., Suite 140,

Washington, D.C. 20037.

This NPRM contains proposed or modified information collections

subject to the Paperwork Reduction Act of 1995, Pub. L. No. 104-13

(PRA). It has been submitted to the Office of Management and Budget

(OMB) for review under the PRA. OMB, the general public, and other

Federal agencies are invited to comment on the proposed or modified

information collections contained in this proceeding. Comments are

requested on all aspects of the proposals. Public and agency comments

are due at the same time as other comments on this NPRM; OMB

notification of action is due no later than August 23, 1996. Comments

should address: (a) Whether the proposed collection of information is

necessary for the proper performance of the functions of the

Commission, including whether the information shall have practical

utility; (b) the accuracy of the Commission's burden estimates; (c)

ways to enhance the quality, utility, and clarity of the information

collected; and (d) ways to minimize the burden of the collection of

information on the respondents, including the use of automated

collection techniques or other forms of information technology.

Title: Amendment of the Commission's Regulatory Policies to Allow

Non-U.S.-Licensed Space Stations to Provide Domestic and International

Satellite Service in the United States and Amendment of Sec. 25.131 of

the Commission's rules and regulations to Eliminate the Licensing

Requirement for Certain International Receive-Only Earth Stations.

Form No.: FCC Form 312.

Type of Review: Revision of existing collections.

Respondents: Businesses or other for profit, including small

businesses.

Number of Respondents: 800.

Estimated Time Per Response: The Commission estimates all

respondents will hire an attorney or legal assistant to complete the

form. The time to retain these services is 2 hours per respondent.

Total Annual Burden: 1,600 hours.

Estimated Costs Per Respondent: $900. This includes the charges for

hiring an attorney or legal assistant @ 150 an hour to complete the

application. The estimated time to complete the form is 6 hours per

response.

Needs and Uses: In accordance with the Communications Act, the

information collected will be used by the Commission in evaluating

U.S.-licensed earth stations applications requesting authority to

operate with space stations licensed by other administrations. The

information will be used to determine the legal, technical, and

financial ability of the non-U.S. licensed space station to serve the

United States and will assist the Commission in determining whether

such authorization is in the public interest.

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

1. The Commission has long pursued a procompetitive policy that

relies on the entry of as many independent service providers as

possible. In keeping with this policy, we recently allowed foreign

carriers to enter the U.S. telecommunications market to provide

international common carrier service if effective competitive

opportunities exist for U.S. carriers in the destination markets of

dominant foreign carriers seeking to enter the U.S. market. See Market

Entry and Regulation of Foreign-Affiliated Entities, 11 FCC Rcd. 3873,

60 FR 67332 (December 29, 1995). We also eliminated the distinction

between domestic and international fixed satellite services over U.S.-

licensed satellite systems allowing U.S. satellite systems to provide

domestic and/or international service. See Amendment of Commission's

Regulatory policies governing Domestic Fixed Satellites and Separate

International Satellite Systems, 11 FCC Rcd. 2429, 61 FR 09946 (March

12, 1996).

2. Similarly, this NPRM reflects the Commission's continued efforts

to promote competition in the U.S. satellite services market which, in

turn, will increase service options, lower prices, and improve quality.

With this NPRM, we propose a uniform framework for evaluating

applications by users in the United States for authority to access

satellites licensed by other countries. Under our proposed rules, non-

U.S.-licensed satellite systems will be able to provide satellite

service to, from, and within the United

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States to the extent that foreign markets allow effective competitive

opportunities for U.S. satellite systems to provide analogous services.

Our proposal will facilitate much greater access to non-U.S.

satellites, thus benefitting users within the United States and will

encourage foreign governments to open their satellite communications

markets, thereby enhancing competition in the global market for

satellite services.

3. In implementing this policy, we will not require satellite

systems already licensed by other countries to obtain space station

licenses from the United States. Rather, we propose to permit these

systems access to the U.S. market by licensing earth stations to

operate with non-U.S. satellite systems as we have done in the past.

When reviewing applications, the Commission proposes to apply an

``effective competitive opportunities for satellites'' or ``ECO-Sat''

test to determine whether the entrance of a non-U.S. satellite system

will promote ``effective competitive opportunities'' for U.S.

satellites in foreign markets. Under the ECO-Sat test, the Commission

will determine whether there are any de jure or de facto barriers that

inhibit U.S. satellite systems from providing services similar to those

requested by the non-U.S. satellite. The Commission proposes to apply

the ECO-Sat test to determine whether U.S. fixed satellite systems have

effective competitive opportunities in: (1) The licensing jurisdiction

or ``home market'' of the foreign satellite system that seeks to serve

the United States; and (2) the ``route market'' the applicant seeks to

serve from the United States over the non-U.S. satellite. When

evaluating the entrance of a foreign mobile satellite system, we

propose to apply a modified version of the ECO-Sat test in which the

Commission would determine whether some ``critical mass'' of foreign

countries, globally or regionally, are open to U.S. satellite operators

before allowing a foreign mobile satellite system to serve the United

States.

4. We will also consider other public interest factors which may

dictate a result different from that indicated by applying the ECO-Sat

test. We may consider, with appropriate guidance from the Executive

Branch, other public interest factors including national security, law

enforcement, foreign policy, or trade issues. Issues of spectrum

availability and coordination may also be considered.

5. The Commission proposes to apply the ECO-Sat test and larger

public interest analysis when an inter-governmental organization such

as Inmarsat or Intelsat seeks to provide U.S. domestic service and when

subsidiaries, affiliates, or successors of an inter-governmental

organization seek access to the U.S. market. International service from

the U.S. is already being provided to virtually every market in the

world by Intelsat and Inmarsat and the Commission does not intend to

apply its rules retroactively. Thus, the Commission proposes to

continue licensing international communications over the Intelsat and

Inmarsat systems without applying the ECO-Sat test.

6. In addition, the Commission proposes to retain the licensing

requirement for receive-only earth stations in the fixed satellite

service that communicate with non-U.S. satellites. Retaining the

licensing requirement for these earth stations ensures that the related

radio communications conducted within the United States, are consistent

with U.S. competition and spectrum management policies. Also, we

believe it is no longer necessary to license receive-only earth

stations operating with U.S. satellite systems for the reception of

service from foreign countries. Instead, we propose that they be

subject to a voluntary registration process. Finally, in an attempt to

diminish regulatory burden and speed processing, we propose to allow

receive-only earth station applicants operating with U.S. or non-U.S.

satellites to request blanket authority to operate multiple technically

identical receive-only earth stations.

7. To ensure that the non-U.S. systems can provide service in a

fast and efficient manner, the Commission will require certain legal,

technical, and financial information concerning the non-U.S. system.

Also, to prevent interference to U.S. satellite systems and to

facilitate responsible spectrum management in the United States, we

propose to require all non-U.S. satellite systems serving the United

States to comply with the technical and reporting requirements we

impose on U.S. satellite systems.

8. This proposal is likely to enhance competition in the global

communication services marketplace, prevent anticompetitive conduct in

the provision of satellite services, and encourage foreign governments

to open their communications market.

Ordering Clauses

9. Accordingly, it is ordered that pursuant to the authority

contained in sections 1, 4(i), 303, and 308 of the Communications Act

of 1934, as amended, 47 U.S.C. 151, 154(i), 303, and 308, NPRM is

hereby given of our intent to adopt the policies and rules set forth in

this NPRM and that comment is sought on all the proposals in this NPRM.

10. It is further ordered that the Secretary shall send a copy of

this Notice of Proposed Rulemaking, including the Initial Regulatory

Flexibility Analysis, to the Chief Counsel for Advocacy of the Small

Business Administration in accordance with paragraph 603(a) of the

Regulatory Flexibility Act, Pub. L. No. 96-354, 94 Stat. 1164, 5 U.S.C.

601 et seq. (1981).

Administrative Matters

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

proceeding. Ex parte presentations are permitted, except during the

Sunshine Agenda period, provided they are disclosed as provided in the

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

The Sunshine Agenda period is the period of time that commences with

the release of public notice that a matter has been placed on the

Sunshine Agenda and terminates when the Commission (1) releases the

text of a decision or order in the matter; (2) issues a public notice

stating that the matter has been deleted from the Sunshine Agenda; or

(3) issues a public notice stating that the matter has been returned to

the staff for further consideration, whichever occurs first. 47 CFR

1.1202(f). During the Sunshine Agenda period, no presentations, ex

parte or otherwise, are permitted unless specifically exempted. 47 CFR

1.1203.

12. Pursuant to applicable procedures set forth in Secs. 1.415 and

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

parties may file comments on or before July 15, 1996 and reply comments

on or before August 16, 1996. To file formally in this proceeding, you

must file an original and five copies of all comments, reply comments,

and supporting comments. If you want each Commissioner to receive a

personal copy of your comments send additional copies to Office of the

Secretary, Federal Communications Commission, Washington, DC 20554.

Comments and reply comments will be available for public inspection

during regular business hours in the Federal Communications Commission,

Reference Center, Room 239, 1919 M Street, NW., Washington, DC 20554.

For further information concerning this rulemaking contact Paula Ford

at (202)418-0760 or Virginia Marshall (202)418-0778.

Initial Regulatory Flexibility Act Statement

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

the Commission has prepared an Initial

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Regulatory Flexibility Analysis (``IRFA'') of the expected impact on

small entities of the proposals suggested in this document. The IRFA is

set forth in Appendix A of the NPRM. Written public comments are

requested on the IRFA. These comments must be filed in accordance with

the same filing deadlines as comments on the rest of the NPRM, but they

must have a separate and distinct heading designating them as responses

to the Initial Regulatory Flexibility Analysis. The Secretary shall

send a copy of this NPRM, including the Initial Regulatory Flexibility

Analysis, to the Chief Counsel for Advocacy of the Small Business

Administration in accordance with paragraph 603(a) of the Regulatory

Flexibility Act, Public Law No. 96-354, 94 Stat. 1164, 5 U.S.C. 601 et

seq. (1981).

List of Subjects in 47 CFR Part 25

Satellites

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Part 25 of the Commission's Rules and Regulations, Chapter I of

Title 47 of the Code of Federal Regulations is proposed to be amended

as follows:

PART 25--SATELLITE COMMUNICATIONS

1. The authority citation for Part 25 continues to read as follows:

Authority: Secs. 25.101 to 25.601 issued under Sec. 4, 48 Stat.

1066, as amended; 47 U.S.C. 154. Interpret or apply secs. 101-104,

76 Stat. 419-427; 47 U.S.C. 701-744; 47 U.S.C. 554.

2. Section 25.113 is amended by revising the first sentence of

paragraph (b) to read as follows:

Sec. 25.113 Construction permits.

* * * * *

(b) Construction permits are not required for satellite earth

stations that operate with U.S.-licensed or non-U.S.-licensed space

stations. * * *

* * * * *

3. Section 25.115 is amended by revising the first sentence of

paragraph (c) to read as follows:

Sec. 25.115 Applications for earth station authorizations.

* * * * *

(c) Large Networks of Small Antennas operating in the 12/14 GHz

frequency bands with U.S.-licensed or non-U.S.-licensed satellites for

domestic services. * * *

* * * * *

4. Section 25.130 is amended by revising the first sentence of

paragraph (d) to read as follows:

Sec. 25.130 Filing requirements for transmitting earth stations.

* * * * *

(d) Transmissions of signals or programming to non-U.S.-licensed

satellites, and to and/or from foreign points by means of U.S.-licensed

fixed satellites may be subject to restrictions as a result of

international agreements or treaties. * * *

* * * * *

5. Section 25.131 is amended by revising paragraphs (b) and (j) to

read as follows:

Sec. 25.131 Filing requirements for receive-only earth stations.

* * * * *

(b) Except as provided in paragraph (j) of this section, receive-

only earth stations in the fixed-satellite service that operate with

U.S.-licensed satellites may be registered with the Commission in order

to protect them from interference from terrestrial microwave stations

in bands shared co-equally with the fixed service in accordance with

the procedures of Secs. 25.203 and 25.251-25.256.

* * * * *

(j) Receive-only earth stations operating with non-U.S.-licensed

space stations shall file an FCC Form 493 requesting a license or

modification to operate such station. Receive-only earth stations used

to receive INTELNET I service from Intelsat space stations need not

file for licenses. See Deregulation of Receive-Only Satellite Earth

Stations Operating with the INTELSAT Global Communications Satellite

System, Declaratory Ruling, RM No. 4845, FCC 86-214 (released May 19,

1986).

6. Section 25.137 is added to read as follows:

Sec. 25.137 Application requirements for earth stations operating with

non-U.S.-licensed space stations.

(a) Earth stations requesting authority to operate with a non-U.S.-

licensed space station to participate in the U.S. satellite service

market must attach an exhibit with their FCC Form 493 application with

information demonstrating that U.S.-licensed satellite systems have

effective competitive opportunities to provide analogous services in:

(1) The country in which the non-U.S.-licensed space station is

licensed; and

(2) All countries in which communications with the U.S. earth

station will originate or terminate. The applicant bears the burden of

showing that there are no de jure or legal constraints that limit or

prevent access of the U.S. satellite system in the relevant foreign

markets. The exhibit required by this paragraph must also include a

statement of why grant of the application is in the public interest.

(b) Earth stations requesting authority to operate with a non-U.S.-

licensed space station must attach to their FCC Form 493 an exhibit

providing legal, financial, and technical information for the non-U.S.-

licensed space station in accordance with this Part 25 and Part 100 of

this chapter. If the non-U.S.-licensed space station is in orbit and

operating, the applicant need not include the financial information.

(c) A non-U.S.-licensed satellite system seeking to serve the

United States can be considered contemporaneously with other U.S.

satellite systems if it is:

(1) In orbit and operating;

(2) Has a license from another administration; or

(3) Has been submitted for coordination to the International

Telecommunication Union and is pursuing a license in another

administration.

[FR Doc. 96-15857 Filed 6-21-96; 8:45 am]

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