Satellite Licensing Procedures

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket No. 96-132; FCC 96-259]

Satellite Licensing Procedures

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: American Mobile Satellite Corporation (``AMSC'') is the only

U.S. mobile satellite service (``MSS'') system currently authorized to

operate in the upper L-band. However, international coordination has

been extremely difficult and we do not believe we will be able to

secure sufficient spectrum in the upper L-band for AMSC's operations.

Therefore, the Commission

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has proposed to assign the first 28 MHz of spectrum (14 MHz for Earth-

to-space transmissions and 14 MHz for space-to-Earth transmissions)

internationally coordinated in both the upper and lower portions of L-

band to AMSC. This proposal will help to ensure that MSS becomes a

reality in the L-band and AMSC, a licensed and partly operating

satellite system, is able to provide service.

DATES: Comments must be submitted on or before September 3, 1996; reply

comments must be submitted on or before September 23, 1996.

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

Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Paula Ford, International Bureau,

Satellite Policy Branch, (202) 418-0760; Kathleen Campbell,

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

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

of Proposed Rule Making (``NPRM'') in IB Docket No. 96-132; FCC 96-259,

adopted June 6, 1996 and released June 18, 1996. The complete text of

this Notice of Proposed Rule Making is available for inspection and

copying during normal business hours in the FCC Reference Center (Room

239), 1919 M Street, NW., Washington, DC, and also may be purchased

from the Commission's copy contractor, International Transcription

Service, (202) 857-3800, 2100 M Street, NW., Suite 140, Washington, DC.

20037.

Title: Establishing Rules and Policies for the Use of Spectrum for

Mobile Satellite Service in the Upper and Lower L-band.

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 Rule Making

1. In the course of international coordination, it has become clear

that the U.S. will not be able to secure sufficient spectrum in the

upper L-band for its only licensee in the band, AMSC. Never before have

we been unable to secure sufficient spectrum to support a satellite

system that already has been licensed, partly constructed, and

operating. Therefore, the Commission proposes to limit eligibility for

the first 14 MHz of spectrum coordinated for Earth-to-space

transmissions and the first 14 MHz coordinated for space-to-Earth

transmissions in the upper and/or lower L-bands to AMSC and proposes to

modify AMSC's license accordingly.

2. Coordination in the L-band has been extremely difficult. In the

entire L-band, there is 66 MHz of spectrum available for use by

Inmarsat, Canada, Mexico, the Russian Federation, and the United States

who, at the present time, are coordinating spectrum for a variety of

MSS systems in the vicinity of North America. The United States has

been at a disadvantage during this coordination because it began

coordinating the upper L-band and only later began focusing on the

lower L-band while Inmarsat and the other administrations have been

coordinating spectrum throughout the entire L-band.

3. Furthermore, Inmarsat, the United States, and the other

administrations have claimed requirements totalling significantly more

than the 66 MHz available. Moreover, the current designs of mobile

terminals for these MSS systems do not permit them to share frequencies

in adjacent or similar geographic areas. Given this demand and the

technical restrictions, we do not think it will be possible to secure

for AMSC the 28 MHz of spectrum we have authorized it to use in the

upper L-band. In fact, it is unlikely that we will be able to

coordinate more than 10 to 12 MHz in the upper L-band. Such an amount

appears insufficient to operate the satellite system we authorized AMSC

to build.

4. We believe the public interest is best served by allowing AMSC

to use spectrum in the lower L-band. The reasons for supporting MSS in

the L-band are as valid today as they were in 1986. MSS can serve areas

of the country that are too remote or sparsely populated to be served

by terrestrial land mobile systems. It can generate a host of new

services by providing communication between virtually any point in the

country, irrespective of distance. MSS is uniquely suited for meeting

the needs of the transportation, petroleum, and other vital industries.

It can meet rural public safety needs and provide emergency

communications to any area in times of emergencies and natural

disasters. Moreover, the L-band is currently the only primary MSS band

in which we have licensed geostationary MSS systems. Geostationary and

non-geostationary MSS systems each have distinctive service

characteristics, and we believe that each type of service should be

allowed to demonstrate its advantages. If geostationary MSS is to have

that opportunity in the near term, it must be in the L-band.

5. Coordinating spectrum for AMSC in the lower L-band is

particularly attractive because, with the exception of the United

States, the same administrations and systems coordinating spectrum in

the upper L-band are currently coordinating spectrum in the lower L-

band. AMSC's system operates in geostationary orbit and can be timely

coordinated with the other entities who have published in advance with

the International Telecommunication Union their plans to implement

geostationary systems in the lower L-band. The lower L-band can also

accommodate both voice and data services which the currently licensed

system expects to provide.

6. AMSC--having already constructed and launched one of its three

authorized satellites--is in the best position to provide MSS to the

public expeditiously. If AMSC, through no fault of its own, obtains

insufficient spectrum for its system, its service will be jeopardized,

and no other potential licensee in the lower L-band will be able to

provide service for years. AMSC's substantial progress toward full

implementation thus figures heavily in our public interest analysis.

This is especially true because AMSC's expenditures were actually

required by the construction and launch milestones in AMSC's license.

7. While all satellite licenses are granted subject to the

uncertainties of international coordinations, the public interest

requires that a Commission license carry with it some reasonable

expectation that it will permit the holder to implement its system.

Otherwise applicants and licensees--as well as their investors and

potential customers--may be unwilling to commit the significant

resources necessary to implement proposed systems, and this will have a

chilling effect on the introduction of new services to the public. The

Commission naturally does not guarantee that any U.S.-licensed system

will be profitable, and it certainly cannot guarantee that other

administrations will always accommodate U.S.-licensed systems. We can

and should, however, take reasonable and appropriate steps to ensure

that our licensees have a fair opportunity to compete.

8. Opening the lower L-band for competing applications would

present at least a theoretical possibility for a second U.S. licensee

to begin providing MSS in the L-band in competition with AMSC. However,

our experience in L-band coordinations since 1989 leads us to question

whether this theoretical possibility is a realistic one. In particular,

we note that it is unlikely that we could coordinate more than 10 MHz

in the lower L-band for another

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U.S. system, and we estimate that 20 MHz is the minimum amount of

spectrum necessary for a viable MSS system.

9. Even under the proposal we make today, we are pessimistic about

coordinating all 28 MHz of spectrum we have licensed AMSC to use. We do

expect, however, to coordinate enough spectrum to permit AMSC to

operate at least one of its three satellites in a cost-effective

manner. If contrary to our expectation, we are able to coordinate more

than 28 MHz of spectrum in the upper and/or lower L-bands, we propose

to allow other parties to apply for the additional spectrum.

10. In addition to adopting rules that permit us to assign AMSC

spectrum in the upper and lower L-bands different from that which AMSC

is currently authorized to use, we also propose to modify AMSC's

authorization to include spectrum in the entire L-band, lower and

upper. Therefore, this NPRM shall also serve as notice to AMSC of a

proposal to modify its current license, and protests may be filed in

response to this NPRM.

Ordering Clauses

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

4(j), 303, 316, and 403 of the Communications Act of 1934, as amended,

47 U.S.C. 154(i), 154(j), 303, 316, and 403, we hereby give notice of

our intent to adopt the licensing policies set forth herein and to

modify, as specified herein, the license currently held by AMSC for

provision of MSS service.

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

this Notice of Proposed Rule Making, including the Initial Regulatory

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

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

and pursuant to Sec. 1.87 of the rules, shall serve a copy of this NPRM

on AMSC.

Administrative matters

13. This is a rulemaking proceeding to develop policies for the

assignment of spectrum but because the Commission also proposes to

modify a license, this proceeding is also an adjudication. Pursuant to

Sec. 1.1200(a) of the Commission's rules, Sec. 1.1208 detailing the ex

parte procedures for adjudicatory proceedings is waived. The entire

proceeding both, rulemaking and adjudication, shall be treated as

``non-restricted'' for ex parte purposes in order to assist the

Commission in developing a more complete record on which a well-

reasoned decision can be made. 47 CFR 1.1200(a) and 1.1206. 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.

14. 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 September 3, 1996, and reply

comments on or before September 23, 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,

D.C. 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 NPRM contact Paula

Ford at (202) 418-0760 or Kathleen Campbell at (202) 418-0753.

Initial Regulatory Flexibility Act Statement

15. 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. 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, Pub.L. 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.

[FR Doc. 96-19924 Filed 8-5-96; 8:45 am]

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