Attachment 1992Comments ORBCOMM

1992Comments ORBCOMM

COMMENT submitted by ORBCOMM

Comments

1992-10-14

This document pretains to SAT-A/O-19900504-00016 for Authority to Operate on a Satellite Space Stations filing.

IBFS_SATAO1990050400016_1059645

Before the é FEDERAL COMMUNICATIONS comussx@ ECEIVED Washington, D.C. 20554 OCT 1 4 1992 FEDERAL COMMUNICATIONS COMMISSION OFFIGE OF THE SECRETARY N N N N N NNR NNNz In the Matter of File No. 33-DSS-P—9Q(241 foues he? Application of STARSYS, INC. a4 For Authority to Conetruct a INTERNATIONAL FACILITIES DIVISION oct 2 0 1992 Low—Earth Orbit Communications coumny CARRIER BUREAU Satellite to be Stationed in an Inclined Non—Geostationary Orbit OCT 24 1980 COMMENTS OF ORBCOMM ON THE PETITION FOR DECLARATORY RULING Orbital Communications Corporation ("ORBCOMM"), by its attorneys, hereby submits its limited comments on the Petition for Expedited Declaratory Ruling recently filed by STARSYS Global Positioning, Inc. ("Starsys"). ORBCOMM does not oppose permitting Starsys to amend its application to reflect a change in ownership of the Class A common stock from ST Systems Corporation to Hughes STX Corporation, without such an amendment affecting the pendency of the Starsys application. ORBCOMM does not believe the regulatory processes should be used to stifle competition, and ORBCOMM does not oppose the Commission‘s grant of licenses to qualified applicants in addition to ORBCOMM. Indeed, ORBCOMM agrees with Starsys that the proposal of ORBCOMM, Sstarsys and Volunteers in Technical Assistance ("VITA") to resolve the potential mutual exclusivity among the current

applicants will allow the Commission to license multiple low—, Earth orbit satellite systems operating below 1 GHz. ORBCOMM does disagree, however, with Starsys‘ characterization of ST Systems Corporation‘s interest in Starsys as providing it with de jure or de facto control over Starsys. As ORBCOMM has demonstrated previously, Starsys‘ attempt to avoid foreign ownership and control concerns through an artificial’two- tier stock structure is unavailing.l/ Aliens own 95% of the equity of Starsys, with a majority of the ownership of Starsys (66.5%) attributable to the French government.z/ The simple limitation on the alien owners‘ ability to elect a majority of the Directors —— with no voting restriétions on other matters and with apparent continued financial dominance by the foreign owners —— does not negate the control of the French government. Thus, even assuming the Commission adopts Rules that permit an applicant to choose whether it wants to operate as a common carrier or a private carrier, Starsys‘ current ownership and control by the French government makes ifi ineligible to be a licensee under Section 31i0(a) of the Communications Act, notwithstanding Starsys‘ characterizations of control in its petition for declaratory ruling. 4/ See, e.g., Reply Comments of ORBCOMM on the Starsys Application, submitted September 21, 1990 at pp. 3—10. 2/ Starsys is 95% owned by North American CLS, in turn a wholly—owned subsidiary of the French company Collecte Localisation Satellites, whichis owned 55% by CNES (the French Space Agency), 15% by INFREMER (the French Institute for Research of the Sea) and 30% by French banks. Thus, 66.5 % of Starsys is owned by the French government (55% (CNES) + 15% (INFREMER) x 95% (NACLS! ownership share of Starsys)).

The Commission, however, need not settle this issue of foreign government control in response to Starsys‘ petition for declaratory ruling. The Commission can and should address the legal qualifications of Starsys in acting on its application, and ORBCOMM urges the Commission to resolve expeditiously all of the outstanding regulatory matters necessary to make these important low—Earth orbit satellite services available to the public, including allocation of the spectrum, promulgation of service rules, and parallel processing of all three pending applications. Respectfully submitted, Albert Halprin— Stephen L. Goodman Halprin, Mendelsohn & Goodman 1301 K Street, N.W., Suite 1020, East Washington, D.C. 20005 (202) 371—9100 Counsel for Orbital Communications Corp. October 14, 1992


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Document Modified: 2014-08-27 15:48:24
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