Non-Voice Non-Geostationary Mobile Satellite Service

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket No. 96-220; FCC 96-426]

Non-Voice Non-Geostationary Mobile Satellite Service

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission has proposed rules and policies to govern the

second processing round for the non-voice, non-geostationary mobile

satellite service (``NVNG MSS'') also referred to as the ``Little LEO''

service. The Commission's proposals include limiting the licensees in

the second processing round to ``new entrants;'' adopting strict

financial rules; adopting rules requiring licensees to time-share

spectrum with existing commercial and government licensees; and seeking

comment on conducting auctions if mutual exclusivity arises.

DATES: Comments must be submitted on or before January 6, 1997; reply

comments must be submitted on or before January 13, 1997.

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

Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Paula Ford, International Bureau,

Satellite Policy Branch, (202) 418-0760; Brian Carter, International

Bureau, Satellite Policy Branch, (202) 418-2119; Kathleen Campbell,

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

Summary of Notice of Proposed Rulemaking

1. This Notice of Proposed Rulemaking (``NPRM'') reflects the

Commission's commitment to licensing applicants in the second

processing round to provide Little LEO service and the Commission's

continued efforts to promote competition in the U.S. satellite services

market. With this NPRM, we propose service rules and polices for the

licensing of three applicants in the second processing round.

2. In order to promote multiple entry and competition, the

Commission proposes to limit the participation in the second processing

round to pending applicants who are not Little LEO licensees or

affiliated with a Little LEO licensee. We propose to identify an

applicant as an affiliate if the applicant: (1) Directly or indirectly

controls or influences a licensee; (2) is directly or indirectly

controlled or influenced by a licensee; or (3) is directly or

indirectly controlled or influenced by a third party or parties that

also have the power to control or influence a licensee.

3. Given that future entry may not be possible in the Little LEO

service and grant to an under-financed applicant will likely prevent a

capitalized applicant from going forward, we propose to amend the

current financial standard to require that each applicant demonstrate

that it has finances necessary to construct, launch, and operate the

entire system for a year. In cases where there are more applicants than

the spectrum can accommodate, a grant to an under-financed space

station applicant may preclude a capitalized applicant from

implementing its system, and delay service to the public. In the past

we have required a stringent financial showing in such cases.

4. We propose to license three Little LEO systems to operate in

particular spectrum blocks: the first system in the 149.81 MHz/

400.5050-400.5517 MHz bands; the second in the 148.905-149.81 MHz/137-

138 MHz bands; the third system in the 149.95-150.05 MHz/400.150-

400.5050 MHz/400.645-401.0 MHz bands. The proposal requires all systems

to time-share the spectrum and coordinate use of the spectrum with

users of the bands. In the 137-138 MHz band, the Little LEO licensee

would have to time-share spectrum with meteorological satellites of the

National Oceanic and Atmospheric Administration. The Little LEO system

operating in the 400.150-400.5050 MHz and 400.645-401 MHz bands would

have to time-share the spectrum with meteorological satellites of the

Department of Defense.

5. We also request comments on a number of other issues. If we have

more qualified applicants than available spectrum in which they can

operate, we asked for comment on how to resolve mutually exclusive

applications and whether we should conduct an auction. We also ask for

comment on effective methods of preventing transmissions into countries

which have not authorized Little LEO service. Little LEO earth

terminals have the physical capability to roam from one region or

country to the next. Because of their inherent mobility, users may

attempt to operate their earth terminals in a country in which the

Little LEO licensee is not authorized to operate. In order to protect

against this, we seek comment on methods to address this such as

requiring each Little LEO user terminal to be equipped with position

determination capabilities. In addition, we seek comment on whether we

should adopt limitations on licensee's ability to enter into exclusive

arrangements with other countries concerning communications to and from

the United States. An exclusive arrangement may foreclose other Little

LEO licensees from serving a foreign market and preventing that

licensee from providing global service.

6. Finally, we also ask parties to submit amended applications on

or before January 27, 1997 to operate in the spectrum blocks outlined

in the NPRM. Amended applications must comply with the proposed rules.

However, applicants are required to demonstrate finances sufficient to

construct and operate only two satellites in their system for a year.

Applicants will be allowed to further amend their applications once the

Report and Order has been released only to the extent necessary because

of the new obligations we have proposed that are different from the

proposals in the Notice. If we adopt a strict financial standard we

will allow applicants to amend their applications.

[[Page 69063]]

Ordering Clauses

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

contained in Sections 1, 4(i), 4(j), 301, 303, 308, and 309(j) of the

Communications Act of 1934, as amended, 47 U.S.C. Secs. 151, 154(i),

154(j), 301, 303, 308, and 309(j), notice is hereby given of our intent

to adopt the policies and rules set forth in this Notice and that

comment is sought on all the proposals in this Notice.

8. It is further ordered that E-SAT, Inc.'s Petition for Rulemaking

in Establishing Rules for Licensing Second-Round Applicants in the Non-

voice, Non-geostationary Mobile Satellite Service dated February 14,

1996 and requesting that the Commission initiate a rulemaking

proceeding to develop regulations for processing the second-round

Little LEO applications is granted.

9. 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, Public Law No. 96-354, 94 Stat. 1164, 5

U.S.C. 601 et seq. (1981).

Administrative Matters

10. 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 Secs. 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.

11. Pursuant to applicable procedures set forth in Sections 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 January 6, 1997 and reply

comments on or before January 13, 1997. 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, N.W. Washington,

D.C. 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

12. 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, Public Law 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.

Shirley S. Suggs,

Chief, Publications Branch.

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. Sections 25.259 and 25.260 are added to Subpart C to read as

follows:

Sec. 25.259 Time Sharing Between NOAA Meteorological Satellites and

NVNG Satellites in the 137-138 MHz Band.

(a) An NVNG licensee time-sharing spectrum in the 137-138 MHz band

shall not transmit signals into the ``protection areas'' of National

Oceanic and Atmospheric Administration (``NOAA'') satellites. The

protection area shall be calculated by using ephemeris data and an

earth station elevation angle of zero degrees towards the NOAA

satellite. The NVNG licensee is responsible for obtaining the necessary

ephemeris data. This information shall be updated system-wide on at

least a biweekly basis.

(b) NVNG licensees shall establish a 24-hour per day contact person

and telephone number so that claims of harmful interference into the

NOAA earth stations and other issues can be reported and resolved

expeditiously. This contact information shall be made available to

NOAA.

(c) NVNG satellites shall be designed to cease transmissions

automatically if, within a forty-eight hour period, a valid reset

signal has not been received from the NVNG gateway Earth station. All

NVNG satellites shall be capable of instantaneous shutdown on any sub-

band upon command from the gateway earth station.

Sec. 25.260 Time Sharing Between DoD-NOAA Meteorological Satellites

and NVNG Satellites in the 400.15-401 MHz band.

(a) An NVNG licensee time-sharing spectrum in the 400.15-401.0 MHz

band shall not transmit signals into the ``protection areas'' of

Department of Defense (``DoD'')-National Oceanic and Atmospheric

Administration (``NOAA'') meteorological satellites. The protection

area shall be calculated by using ephemeris data and an earth station

elevation angle of zero degrees toward the DoD-NOAA meteorological

satellite. The NVNG licensee is responsible for obtaining the necessary

ephemeris data. This information shall be updated system-wide on at

least a weekly basis.

(b) NVNG licensees shall establish a 24-hour per day contact person

and telephone number so that claims of harmful interference into DoD-

NOAA earth station users and other operational issues can be reported

and resolved expeditiously. This contact information shall be made

available to DoD-NOAA.

(c) NVNG satellites shall be designed to cease transmissions

automatically if, within forty-eight hours, a valid reset signal has

not been received from the NVNG gateway earth station. All NVNG

satellites shall be capable of instantaneous shutdown on any sub-

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band upon command from the gateway earth station.

(d) Notwithstanding other provisions of this section, NVNG

satellites sharing the 400.15-401 MHz with DoD-NOAA meteorological

satellites shall implement within ninety minutes of receiving notice of

a DoD-NOAA system frequency change, all appropriate modifications and

updates to operate on a non-interference basis in accordance with

subsection (a), above.

(e) At DoD-NOAA's instruction, the Little LEO System-3 operator

will test, up to four times a year, the Little LEO system's ability to

implement a DoD-NOAA requested frequency change.

[FR Doc. 96-33143 Filed 12-30-96; 8:45 am]

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