Attachment 1995LQ app for revie

This document pretains to SAT-A/O-19901107-00066 for Authority to Operate on a Satellite Space Stations filing.

IBFS_SATAO1990110700066_1087599

                                                    JAN 2 5 1995                 LJAN 9 0 1995
                                      Beforé The °>
                  FEDERAL COMMUNICATIONSCOMMISSION **MCGMNGipeonassq
                                                          OF SECRETARY
                                                        20554                    CFFICE
                               Washington, DC



 In re Application of                   )
                                        )
 MOBILE COMMUNICATIONS                  )            File Nos. 11—DSS—P—91(6)
 HOLDINGS, INC.                         )                      18—DSS—P—91(18)
                                        )                                   .



 For Authority to Construct,            )
_ Launch and Operate the Ellipso        )
 Elliptical Orbit Satellite System      )
                                        )

 To: The Commission


                            APPLICATION FOR REVIEW


       Pursuant to Section 1.115 of the Commission‘s Rules, Lora/QUALCOMM

 Partnership, L.P. (LQP), hereby applies for review of the Order on Reconsideration

 (the "Order") released by the International Bureau on December 21, 1994 (DA 94—

 1566). In the Order, the International Bureau reversed its earlier decision, which

 denied a request for confidentiality filed by Mobile Communications Holdings, Inc.

 (MCHT) for certain materials submitted with respect to MCHI‘s financial showing

 as required to obtain a license in the 1.6/2.4 GHz MSS service.‘ See Order, DA

 94—1322 (released Nov. 25, 1994). As demonstrated below, the Order is

 inconsistent with applicable regulations, precedent and established Commission




     * LQP filed an opposition to MCHI‘s original request for confidentiality in a
 letter dated November 22, 1994.

                                            — 1 —


 policy. Accordingly, review should be granted, and MCHI‘s request for

 confidentiality denied.


                                   BACKGROUND


       In its initial decision on MCHI‘s request for confidentiality, the

 International Bureau denied MCHI‘s request for confidential treatment of five

 letters submitted to the Commission on November 16, 1994, with MCHI'S

 amended application for a license in the 1.6/2.4 GHz MSS service." Order, DA 94—

 1322 (released Nov. 25, 1994); see Letter to Scott Harris from Jill Abeshouse Stern

 (dated Nov. 18, 1994). In an "Application for Review" of that decision, filed

 December 2, 1994, MCHI stated that two of these letters could be placed in the

 public record. However, it sought authority to redact information from thethree

 remaining letters, and attached the proposed, redacted versions in Exhibit 2 of its




    * LQP opposed MCHI‘s initial request for confidentiality because MCHI had
 failed to demonstrate either that (1) disclosure of the information would impair
 the Commission‘s ability to obtain similar information in the future or
 (2) disclosure of the information would result in a substantial likelihood of
 competitive harm to MCHI. See Letter to Scott Blake Harris from William D.
 Wallace (filed Nov. 22, 1994). See generally MTS—WATS Market Structure, 66 RR
 2d 1668, 1670 (1989); New York Telephone Co., 67 RR 2d 567, 567—68 (1990).

       LQP also pointed out that the Commission generally requires that an
 applicant must place in the public record information which bears on a significant
 and material fact at issue in a proceeding. See, e.g., Knoxville Broadcasting Corp.,
 50 RR 2d 531, 533 (1981); MTS—WATS Market Structure, 66 RR 2d 1671 n.14.
_ MCHI has not disputed that information concerning whether MCHI has met the
 Commission‘s financial standard for the 1.6/2.4 GHz MSS service is significant and
 material to its application, nor that the letters at issue contained such
 information.

                                         L g.


17




Application for Review.‘ LQP filed an opposition to MCHI‘s "Application for

Review" on December 12, 1994, objecting to the proposed redaction of the

remaining three letters, and requesting that complete copies of all three letters be

placed in the public file.* Before the Commission could act on MCHI‘s Application

for Review, the International Bureau, on its own motion, reconsidered MCHI‘s

request and issued the Order on December 21, 1994.


                                   ARGUMENT


       The Bureau claims that MCHI‘s arguments in its Application for Review

establish "by a preponderance of the evidence, that confidential treatment of the

material it seeks to redact is warranted." Order at 3. The Bureau‘s rationale is

apparently based on its recent conclusion that the redacted material is "the type of

detailed cost and pricing information in which there is avlegitimate interest in

confidentiality." Id. (footnote omitted). The Bureau states that the "information

submitted by MCHI indicates that its vendors do not disclose the prices for their

equipment/services outside a confidential process of negotiations with individual

purchasers." Id. The Bureau concludes that "[dlisclosure of this information could

result in competitive harm to both MCHI (since it might disadvantage MCHI in



     * The letters from AEC—Able Engineering Co. ("AEC—Able"), Satellite
Transmission Systems, Inc. ("STS"), and Spectrum Network Systems, Inc.
("Spectrum") are described at page 2 of the Bureau‘s Order on Reconsideration.

   * A copy of LQP‘s "Opposition to Application for Review" is attached as
Attachment A. The arguments made therein are hereby incorporated by
reference.

                                        13.


>


negotiations with foreign distributors) and MCHI‘s vendor/shareholders {since

buyers receive a clear competitive advantage if they know the pricés that other

buyers have been charged as a result of individual negotiations)." Id. at 3—4.


               The Bureau‘s Rationale Contradicts Applicable Policy



      The Bureau‘s rationale must be rejected as inconsistent with established

Commission policy regarding such requests. First, as its Order makes clear, the

Bureau granted MCHI‘s request, in part, because of a perceived potential for harm

to MCHI‘s "vendor/shareholders." But, it is well—established that competitive

harm to third parties is irrelevant in reviewing requests for confidentiality and

cannot form the basis for a grant of such a request. "The policy of maintaining the

confidentiality of financial information rests upon consideration of competitive

harm that would result to the party supplying the data if it were made available

to the public." Classical Radio for Connecticut, Inc., 44 RR 2d 1063, 1067—68

(1978) (emphasis supplied).

      Second, with respect to alleged competitive harm to MCHI, the Bureau cites

only a concern for MCHI‘s position in "negotiations with foreign distributors."

Order at 3. But, neither AEC—Able nor STS appears to be a foreign distributor,

and as MCHI concedes (MCHI Application for Review, at 6), the AEC—Able and

STS letters concern financing related to particular satellite components, not

negotiations for distribution rights. The only information for which redaction was

sought is specification of the satellite component. Moreover, contrary to the


Bureau‘s concern for disclosure of competitive pricing information, according to ‘

MCHI these two letters disclose "the total amount and the relevant terms." MCHI

Application for Review, at 6. Thus, these two letters do not appear to bear any

relation to negotiations with foreign distributors which would justify a g)gant of

confidentiality under the Bureau‘s reasoning. And, the Bureau has not pointed to

any new arguments by MCHI that disclosure of the satellite components would

disadvantage MCHL*

      On the other hand, the redactions from the Spectrum letter apparently do

concern foreign distribution rights.   But, as LQP pointed out in its "Opposition to

Application for Review" (at page 4), and in its "Petition to Deny" MCHI‘s

Application (at 12—14 & nn. 7—8) filed on December 22, 1994, the redacted

information is necessary to evaluate Spectrum‘s alleged commitment of funds to

the Ellipso project. For example, Item 2 of the Spectrum letter contains certain

contingencies which affect the level of financing allegedly to be provided by

Spectrum. The Commission‘s Rules governing the relevant financial showing

require that there be no contingencies in financing agreements which are used to

demonstrate financial qualifications. See 47 C.F.R. § 25.140(d)(2)(iv) ("Any

financing arrangements contingent on furthér performance by either party, such

as marketing of satellite capacity or raising additional financing, will not satisfy



   5 Indeed, it apparently did not prejudice MCHI to disclose this information.
After submitting the redacted STS letter and claiming the need for confidentiality
with respect to the services provided by STS, MCHI disclosed in the public record
that STS‘s commitment concerned MCHI‘s ground control station. See MCHI‘s
Consolidated Opposition, at 18 (filed Jan. 3, 1995).
                                         — 5.


the requirements of paragraph (c) of this‘ section"). Thus, in order for interested

parties to evaluate and comment on whether Spectrum‘s alleged commitment

supported MCHI‘s financial showing, it is necessary to review the conditions and

contingencies under which the letter was provided. See LQP‘s Opposition to

Application for Review, at 4—5 (Attachment A). A Commission decision on MCHI‘s

financial qualifications also could not rely upon this "commitment" without an

analysis of this contingency, as required by its rule.

       Thus, information which MCHI seeks to withhold from public scrutiny bears

directly on the critical question as to whether the $100 million from Spectrum

claimed as "committed" by MCHI is actually committed given the contingéncies in

the letter.©   See LQP‘s Petition to Deny. at 12—13 (filed Dec. 22, 1994). If these

contingencies vitiate the availability of the funds within the meaning of the

Commission‘s standard, then MCHI cannot use the Spectrum letter to

demonstrate its financial qualifications.




    ° In its "Consolidated Opposition" responding to petitions to deny its
application, MCHI continues to claim that the $100 million from Spectrum is
committed, but it does not even address the contingencies raised by LQP. See
MCHI‘s Consolidated Opposition, at 18 and Ex. 1, at 2 (filed Jan. 3, 1995). MCHI
also claims that the attacks on its purported financing from vendors and service
providers are "irrelevant" because it has demonstrated sufficient available funds
from "internal" financing. Id. at 24. However, MCHI‘s internal financing rests on
letters from shareholders with very minor interests in the applicant, and there is a
question whether such financing should be reviewed under the standard for
internal or external financing. Moreover, LQP and other parties have argued that
there are deficiencies in all of MCHI‘s alleged financing commitments, whether
evaluated under the standard for internal or external financing. See LQP‘s
Petition to Deny, at 7 (filed Dec. 22, 1994); see also TRW‘s Petition to Deny
Application of MCHI (filed Dec. 22, 1994).

                                            — 6—


       In similar situations, the Commission has recognized the need for disclosure

of information claimed to be confidential. Disclosure of financial information is

justified "when the financial information is relevant to a significant and material

question of fact arising in a Commission proceeding." Knoxville Broadcasting

Corp., 50 RR 2d 581, 533 (1981); see also MTS—WATS Market Structure, 66 RR 2d

at 1671 n.14. "Disclosure in such cases has been found necessary in order to

assure a fair adjudication of the open factual issue and a just resolution of the

public interest question." Knoxville Broadcasting Corp., 50 RR 2d at 583.

      This is one of these situations, for as the Commission itself stated when it

adopted rules for this service, "[i}n light of the enormous costs involved in

constructing and launching a satellite system, we have always considered financial

ability a significant factor in determining whether an applicant is qualified to hold

a license." Report and Order, 76 RR 2d 202,       26 (1994).         |

      The Bureau‘s apparent response to LQP‘s argument in this regard ignores

the Commission‘s prior determination of the significance of matters pertaining to

an applicant‘s financial ability.   The Bureau states that "[wlhile the information

that MCHI seeks to protect ‘might be helpful,‘ it falls far short of ‘necessary‘ to the

other Big LEO applicants‘ participation in the licensing process." Order, at 4.

But, MCHI is relying on the alleged commitment from Spectrum, and, as shown

above, the undisclosed contingencies in the Spectrum letter are necessary to decide

whether the allegedly committed funds are truly available to MCHI.


                     The Order Is Inconsistent with the APA



      In the O_rae_r, the Bureau also erroneously rejected disclosure of significant

and material information despite the fact that action on MCHi'S application is a

restricted adjudicative proceeding. In this regard, the Bureau‘s position is

inconsistent with the Commission‘s ex parte rules and its obligations under the

Administrative Procedure Act (APA).;

      Pursuant to the Commission‘s FOIA procedures, if information bearing on

MCHI‘s financial qualifications is deemed to deserve confidentiality, then the

information is simply not placed in the public file. See 47 C.F.R. § 0.457. Such

material may or may not be available to interested parties. See 47 C.F.R. § 0.459;

Commission Requirements for Cost Support, 7 FCC Red 1526, 1531 (CCB 1992).

      But, the FOIA rules only address issues related to the public availability of

material submitted to the Commission. ‘ They do not address the distinct issue of

whether the Commission has complied with its obligations under the

Administrative Procedure Act to make a decision based on the record before it,

from which ex parte matters are precluded.®    See 5 U.S.C. § 557. With regard to

the latter issue, the Commission‘s ex parte rules quite clearly preclude one party



   ‘ As the Bureau notes later in the Order, Congress intended that FOIA would
give every member of the public the same right to disclosure as persons with a
particular interest. Order, at 5, quoting United States Dep‘t of Justice v.
Reporters Committee for Freedom of the Press, 489 U.S. 749, 771 (1989).

   ° Without addressing requirements of the APA, the Bureau takes the position
that the Commission "sometimes need{s] to see and act on information that should
not be made public." Order, at 4.

                                        — 3.


from submitting a written presentation on the merits to decision—making personnel

which "is not served on the parties to the proceeding." 47 C.F.R. § 1.1202(b).°     To

decide MCHI‘s financial qualifications based on information which was not

disclosed to "the parties to the proceeding" would be in conflict with this principle.

      This "inherent dilemma" cannot be resolved automatically in favor of

nondisclosure, as the Bureau suggests in the Order.     See Commission

Requireménts for Cost Support, 7 FCC Red at 1531; Robert J. Butler, 69 RR 2d

1521, 1527—29 (1991). The mere existence of fhe FOIA exemptions for proprietary

information does not permit use of such material ex parte by decision—making

personnel. Rather, as the Bureau recognizes, it must conduct an analysis which

balances the competing interests.    See Robert J. Butler, 69 RR 2d at 1527—29;

Commission Requirements for Cost Support, 7 FCC Red at 1532.

      Here, as discussed above, the information is necessary to the

decisionmaking process on the merits of MCHI‘s financial qualifications.

Accordingly, disclosure is the only alternative based on MCHI‘s failure to present

and the Bureau‘s failure to show an indication of the substantial likelihood of

competitive harm from disclosure, the materiality of the redacted information to

the merits of MCHI‘s claimed financial qualifications, and the Commussion‘s




   ° As the Commission recognized in adopting these rules, "the object of the ex
parte rules is simple —— to assure that the agency‘s decisions are based upon a
publicly available record rather than influenced by off—the—record communications
between decisionmakers and outside persons." Ex Parte Communications and
Presentations in Commission Proceedings, 62 RR 2d 1755, 1757 (1987) (footnote
omitted).

                                         — 9.


*Scott Blake Harris
Chief, International Bureau
Federal Communications Commission
Suite 800
2000 M Street, NW.
Washington, D.C. 20554

*Thomas Tycz, Chief
Satellite & Radiocommunication Division
Federal Communications Commission
Suite 800 _
2000 M Street, NW.
Washington, D.C. 20554

*Cecily C. Holiday, Deputy Chief
Satellite & Radiocommunication Division
Federal Communications Commission
Suite 800
2000 M Street, NW.
Washington, D.C. 20554

*Fern Jarmulnek
Chief, Satellite Radio Branch
International Bureau
Federal Communications Commission
2000 M Street, NW., Suite 800
Washington, D.C. 20554

*Kathleen Campbell
Federal Communications Commission
2025 M Street, NW.
Room 6329
Washington, D.C. 20554

*Karl A. Kensinger
Federal Communications Commission
1919 M Street, N.W.
Room 314
Washington, D.C. 20554

Jill Abeshouse Stern
Shaw, Pittman, Potts & Trowbridge
2300 N Street, NW.
Washington, D.C. 20036


Lon C. Levin
American Mobile Satellite Corporation
10802 Parkridge Boulevard
Reston, VA 22091

Bruce D. Jacobs
Glenn S. Richards
Fisher Wayland Cooper
 Leader & Zaragoza
2001 Pennsylvania Avenue, NW.
Suite 400
Washington, D.C. 20006

Philip L. Malet
Alfred M. Mamlet
Steptoe & Johnson
1330 Connecticut Avenue, NW.
Washington, D.C. 20036

Barry Lambergman
Motorola, Inc.
Suite 400
1350 I Street, NW.
Washington, D.C. 20005

Robert A. Mazer
Rosenman & Colin
1300 19th Street, NW.
Suite 200
Washington, D.C. 20036

Norman P. Leventhal
Raul R. Rodriguez
Leventhal, Senter & Lerman
2000 K Street, NW.
Suite 600
Washington, D.C. 20006


                   LOAVUICC%,


ATTACHMENT A


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                ‘                Before The        i iblk                              i;            h
                    FEDERAL COMMUNICATIONS COMMISSION                                                     ‘
                    '          Washington, DC 20554                                    .
                                                                                                >             .
                                                                                       C,        {;           Cx
In re Application of                  o                                                2s                B    oVA
                                        )                                                  KX   lz        *       {;"
MOBILE COMMUNICATIONS                   )           File Nos. 11—DSS—P—91(6)                Ten
HOLDINGS, INC.                          J                    18—DSS—P—91(18)                             *3
                                        )
For Authority to Construct,             )
Launch and Operate the Ellipso          )
Elliptical Orbit Satellite System       )
                                        )

To: The Commission


                    OPPOSITION TO APPLICATION FOR REVIEW


      Pursuant to Section 1.115 of the Commission‘s Rules, Loral/QUALCOMM

Partnership, L.P. (LQP), hereby opposes the "Application for Review" filed by

Mobile Communications Holdings, Inc. (MCHI) on December 2, 1994. In its

Application, MCHI sought review of the International Bureau‘s decision denying

its request for confidentiality for certain materials submitted with respect to its

financial qualifications to obtain a license in the 1.6/2.4 GHz MSS service. See

Order, DA 94—1322 (released Nov. 25, 1994). For the reasons stated below,

MCHI‘s Application for Review should be denied.


                                    BACKGROUND


      The International Bureau denied MCHI‘s request for confidentiality with

respect to five letters submitted to the Commission on November 16, 1994, with

                                            — 1 —


 MCHI‘s amended application for a license in the 1.6/2.4 GHz MSS service. See

 Letter to Scott Harris from Jill Abeshouse Stern (dated Nov. 18, 1994) (attached

 as Exhibit 3 to Application for Review). MCHI now concedes that two of these

 letters can be placed in the public record; copies of the two letters are attached as

 Exhibit 1 to the Application for Review. However, on review, MCHI seeks

 authority to redact information from the three remaining letters, and has attached

 the proposed, redacted versions in Exhibit 2 of its Application for Review.

       LQP opposed MCHI‘s initial request for confidentiality because MCHI had

 failed to demonstrate (i) that disclosure of the information would impair the

| Commission‘s ability to obtain similar information in the future or (2) that

 disclosure of the information would result in a substantial likelihood of

 competitive harm to MCHI. See Letter to Scott Blake Harris from William D.

Wallace (filed Nov. 22, 1994); see also MTS—WATS Market Structure, 66 RR 2d

 1668, 1670 (1989); New York Telephone Co., 67 RR 2d 567, 567—68 (1990).

       LQP also pointed out that the Commission generally requires that an

applicant must place in the public record information concerning a significant and

material fact at issue in a proceeding. See, e.g., Knoxville Broadcasting Corp., 50

RR 2d 531, 533 (1981); MTS—WATS Market Structure, 66 RR 2d at 1671 n.14.

Information concerning whether MCHI has met the Commission‘s financial

standard for the 1.6/2.4 GHz MSS service is significant and material to its

application.


                                    ARGUMENT


       MCHI‘s Application for Review should be denied in toto, and complete

copies of the letters from AEC—Able Engineering Company, Inc., Spectrum

Network Systems Limited, and Satellite Transmissions Systems, Inc., should be

placed in the public record. MCHI‘s Application for Review contains no refutation

of the rationale of the International Bureau‘s Order. Moreover, the redacted

letters themselves reveal the materiality of information proposed for redaction,

and demonstrate why these letters should be placed in the public record.


       A.     The Letters Demonstrate That Redaction Is Not Possible.


       The redacted letters demonstrate that the Commission should require to be

made public the information concerning the pricing of MCHI‘s subsystem

components and the conditions under which the companies sending the letters will

provide financing. The three letters at issue were submitted by MCHI to

demonstrate financing for the construction, launch and first—year operating costs of

its proposed system. See Report and Order (CC Docket No. 92—166), 59 Fed. Reg.

53294, [ 30—32 (released Oct. 14, 1994). As required, MCHI has provided a

projection for .these costs.         |

       MCHI requests authority to redact certain information from the letters.

However, this information is necessary to determine whether the alleged funding

commitments are relevant to this schedule of projected costs. Moreover, MCHI

proposes to redact information concerning conditions under which the financing


                                         13—


 may be available. Under the Commission‘s Rules, this information must also be

 disclosed.

       AEC—Able.     MCHI proposes to redact information concerning the materials

 or services concerning which AEC—Able states: "[Wle have agreed to arrange the

 financing requireci to provide these services, the total cost of which is estimated at

 $93 million."   This information relates directly to whether AEC—Able is providing

 financing for a cost item in MCHI‘s satellite system cost schedule. Unless it is

 revealed what "services" are being provided by AEC—Able, other applicants and the

 public cannot comment on the significance of the AEC—Able letter to MCHI‘s

—financial qualifications, and the Commission cannot determine whether this letter

 represents a commitment which is even relevant to MCHI‘s financial showing.

       Spectrum.    MCHI has proposed to redact information from Items 2, 3 and 5

 of the list of "terms of the arrangement" among MCHI, Spectrum and Spectrum

Asia. Item 5 states that Spectrum is to receive a certain number of voting shares

 of MCHI stock in payment for the services specified in Item 3. If MCHI is relying

 on financing from Spectrum for an item in its construction, launch and first—year

operating cost schedule, then such information on these "services" is directly

relevant to the issue of whether MCHI is financially qualified, and must be

disclosed.

       Moreover, Item 2 specifies certain contingencies which affect the level of

financing to be provided by Spectrum, but MCHI proposes to redact portions of

these details. The Commission‘s Rules governing the relevant financial showing


 require that there be no contingencies in financing agreements which are used to

 demonstrate financial qualifications. See 47 C.F.R. § 25.140(d)(2)(iv) ("Any

 financing arrangements contingent on further performance by either party, such

 as market of satellite capacity or raising additional financing, will not satisfy the

 requirements of paragraph (c) of this section"). Accordingly, if MCHI desires to

 use the Spectrum letter for its financial showing, it must disclose Item 2 in order

 for the Commission and public to evaluate whether the contingency for ai certain

 level of financing from Spectrum has been met.

       STS. The information proposed for redaction from the STS letter raises the

—same issue as that raised by the AEC—Able and Spectrum letters. Unless MCHI

 discloses the services to be provided by STS (as detailed in the last paragraph of

 the letter), the Commission and the public cannot evaluate whether those services

 are relevant to MCHI‘s cost schedule and material to its financial showing.

       MCHI cannot withhold information directly relevant to a significant and

material issue regarding its financial qualifications. See Knoxville Broadcasting

Corp., 50 RR 2d at 533; MTS—WATS Market Structure, 66 RR 2d at 1671 n.14.

Accordingly, MCHI‘s Application for Review should be denied with respect to the

information regarding the services to be provided by AEC—Able, Spectrum and STS

as well as any contingencies which may affect whether or at what level MCHI may

rely on these companies to provide financing.

       Redaction is not an option. The record on which the public submits

comments and on which the Commission reviews MCHI‘s financial qualifications


 must be consistent, and the Commuission cannot be provided information to

 evaluate MCHI‘s financial showing which was shielded from public view. See 47

 C.EF.R. § 1.1208. Accordingly, MCHI‘s request for redaction should also be denied.


       B.     MCHI Has Failed to Justify ifs Request for Confidentiality.


       Even if the information proposed for redaction from the three letters was

 not directly reievant to MCHI‘s financial showirlg (which, as discussed above, it

 clearly is), MCHI has still failed to justify generally its request for confidentiality.

 As a defense, MCHI notes that no other MSS Above 1 GHz applicant has

| submitted similar information to the Commission in its amended application.

Application, at 3. This is irrelevant. MCHI submitted the letters voluntarily. It

 has been aware of the Commission‘s financial standard since October 14, 1994,

 and has had more than enough time to obtain letters which explained financial

commitments without revealing allegedly proprietary information. In any event,

the Commission‘s Rules require that all terms and conditions of any external

financing be revealed if used for an applicant‘s financial qualifications, and so,

MCHI may be required to submit letters in this form. See 47 C.F.R.

§ 25.140(d)(2).

       MCHI also claims that it only needs to demonstrate the existence of

competition, not competitive harm, to justify withholding detailed business

information submitted to the Commission from public disclosure. Application, at

3. The standard for FOIA Exemption 4 requires more. Under Commuission


 precedent, "the party claiming confidentiality must demonstrate actual

 competition and a likelihood of substantial competitive injury if the information is

 disclosed." MTS—WATS Market Structure, 66 RR 2d at 1670. However, even if

 the standard were as MCHI states, it indicated in its November 18, 1994 letter

 that it was willing to reveal the complete letters to all its competitors, and there

 was little assurance of how the information would be used. See Application

 (Exhibit 3).

       Moreover, MCHI claims that, if disclosed»publicly, applicants would be

 reluctant to submit similar information to the Commission in the future.

' Application, at 3—6. However, contrary to MCHI‘s stated fears, the _Commission’s

 Rules require that the terms and conditions of external financing be submitted

 with respect to an applicant‘s financial qualifications. See 47 C.F.KR.

 § 25.140(d)(2). Therefore, if an applicant decides to submit information such as

 that at issue here in order to demonstrate its financial qualifications, then the

 applicant must submit the information for public comment.


                                   CONCLUSION


      For the above stated reasons, LQP requests that MCHI‘s Application for

Review be denied, and that MCHI be required to place into the public record

complete copies of the letters in Exhibit 2 of its Application for Review.


                                 Respectfully submitted,

                                 LORAL/QUALCOMM PARTNERSHIP, L.P.




                                 By:     \foéi,\? @%756 , #.
                                       John T. Scott, III
                                       William D. Wallace

                                       CROWELL & MORING
                                       1001 Pennsylvania Avenue, N.W.
                                       Washington, DC 200004
                                       (202) 624—2500


                                        Leakia A’é—-,‘,(.e-“ es Aey)
                                       Leslie A. Taylor

                                       LESLIE TAYLOR ASSOCIATES
                                       6800 Carlynn Court
                                       Bethesda, MD 20817
                                       (202) 229—9341

                                       Its Attorneys


Date: December 12, 1994


                          CERTIFICATE OF SERVICE


      I, William D. Wallace, hereby certify that I have on this 12th day of
December, 1994, caused copies of the foregoing Opposition to Application for
Review to be delivered via hand delivery (indicated with *) or by U.S. mail,
postage prepaid, to the following:




                   *Chairman Reed E. Hundt
                   Federal Communications Commission
                   1919 M Street, NW., Room 814
                   Washington, D.C. 20554

                  *Commissioner James H. Quello
                  Federal Communications Commission
                  1919 M Street, NW., Room 802
                  Washington, D.C. 20554

                  *Commissioner Andrew C. Barrett
                  Federal Communications Commission
                  1919 M Street, NW., Room 826
                  Washington, D.C. 20554

                  *Commissioner Susan Ness
                  Federal Communications Commission
                  1919 M Street, NW., Room 8382
                  Washington, D.C. 20554

                  *Commissioner Rachelle B. Chong
                  Federal Communications Commission
                  1919 M Street, NW., Room 844
                  Washington, D.C. 20554

                  *William Kennard
                  General Counsel
                  Federal Communications Commission
                  Room 614
                  1919 M Street, NW.
                  Washington, D.C. 20554


*Scott Blake Harris
Chief, International Bureau
Federal Communications Commission
Room 658
1919 M Street, NW.
Washington, D.C. 20554


*Thomas Tycz
Chief, Satellite Division
International Bureau
Federal Communications Commission
Room 6010
2025 M Street, NW.
Washington, D.C. 20554

*Cecily C. Holiday
Deputy Chief, Satellite Division
International Bureau
Federal Communications Commission
Room 6324
2025 M Street, NW.
Washington, D.C. 20554

*Fern Jarmulnek
Chief, Satellite Radio Branch
International Bureau
Federal Communications Commission
2025 M Street, NW., Room 6112
Washington, D.C. 20554

*Karl Kensinger
Federal Communications Commission
1919 M Street, NW., Room 408B
Washington, D.C. 20554

*Jill Abeshouse Stern
Shaw, Pittman, Potts & Trowbridge
2300 N Street, NW.
Washington, D.C. 20036

Lon C. Levin
American Mobile Satellite Corporation
10802 Parkridge Boulevard
Reston, VA 22091


Bruce D. Jacobs
Glenn S. Richards
Fisher Wayland Cooper
 Leader & Zaragoza
2001 Pennsylvania Avenue, N.W.
Suite 400
Washington, D.C. 20006

Philip L. Malet
Alfred M. Mamlet
Steptoe & Johnson
1330 Connecticut Avenue, NW.
Washington, D.C. 20036

Barry Lambergman
Fletcher Heald & Hildreth
1300 North 17th Street
l1th Floor
Rosslyn, VA 22209

Robert A. Mazer
Rosenman & Colin
1300 19th Street, N.W.
Suite 200
Washington, D.C. 20086

Norman P. Leventhal
Raul R. Rodriguez
Leventhal, Senter & Lerman
2000 K Street, NW.
Suite 600
Washington, D.C. 20006
                    t   /\_

                    \.J W%'\.\


  finding that "financial ability [is] a significant factor in determining whether an

  applicant is qualified to hold a license.""° See Report and Order, 76 RR 2d at 212.


                                     CONCLUSION


         For the reasons stated above and in the attached "Opposition to Application

  for Review," LQP requests that the Commission grant its application for review of

  the International Bureau‘s "Order on Reconsideration" in this matter, and order

  that complete copies of the AEC—Able, Spectrum and STS letters be placed in the

  public file. Because the Bureau‘s Order precluded comment on these letters on

  December 22, 1994, with respect to MCHI‘s financial showing, LQP requests an




      " The Bureau also considers and rejects "limited disclosure" of the information
  to the other Big LEO applicants, claiming that the material may "conceivably bear
  on MCHI‘s financial qualifications," but concluding there is only a slight possibility
  that it would be necessary to resolve the Commission‘s public interest
  determination on the application. Order, at 4—5. As discussed in the text, this
~_conclusion is belied by the nature of the concealed information and the
  Commission‘s Rules on the applicable financial standard.

                                          — 10 —


opportunity to submit appropriate comments prior to action on MCHI‘s

application.

                              Respectfully submitted,

                              LORAL/QUALCOMM PARTNERSHIP, L.P.



                              By:    /(Ea\'?&;be &
                                    John T. Scott, III
                                    William D. Wallace
                                    CROWELL & MORING
                                    1001 Pennsylvania Avenue, N.W.
                                    Washington, DC 20004
                                    (202) 624—2500


                                     L‘dé\‘k@ /@«y//l
                                    Leslie A. Taylor, *
                                    LESLIE TAYLOR ASSOCIATES
                                    6800 Carlynn Court
                                    Bethesda, MD 20817
                                    (301) 229—9341

                                    Its Attorneys

Date: January 20, 1995




                                     — 11 —


                           CERTIFICATE OF SERVICE


      I, William D. Wallace, hereby certify that I have on this 20th day of
January, 1995, caused copies of the foregoing Application for Review to be
delivered via hand delivery (indicated with *) or by U.S. mail, postage prepaid, to
the following:



                   *Chairman Reed Hundt
                   Federal Communications Commission
                   1919 M Street, NW.
                   Room 814
                   Washington, D.C. 20554

                   *Commissioner James H. Quello
                   Federal Communications Commission
                   1919 M Street, NW.
                   Room 802
                   Washington, D.C. 20554

                   *Commissioner Andrew C. Barrett
                   Federal Communications Commission
                   1919 M Street, NW.
                   Room 826
                   Washington, D.C. 20554

                   *Commissioner Rachelle B. Chong
                   Federal Communications Commission
                   1919 M Street, NW.
                   Room 844
                   Washington, D.C. 20554

                   *Commissioner Susan Ness
                   Federal Communications Commission
                   1919 M Street, NW.
                   Room 832
                   Washington, D.C. 20554

                   *William E. Kennard, Esq.
                   General Counsel
                   Federal Communications Commiuission
                   1919 M Street, NW., Room 6010
                   Washington, D.C. 20554



Document Created: 2015-04-09 14:24:33
Document Modified: 2015-04-09 14:24:33

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