Attachment 1997Petition Leo One

1997Petition Leo One

PETITION submitted by Leo One

Petition

1997-02-12

This document pretains to SAT-AMD-19900529-00041 for Amended Filing on a Satellite Space Stations filing.

IBFS_SATAMD1990052900041_1060204

RECEIVED Before the FEB 1 2 1997 FEDERAL COMMUNICATIONS COMMISSION pagerat communications Commission Washington, D.C. 20554 Office of Secretary In re Application of ) STARSYS GLOBAL ) ) _ FEB 21 _ 1997 File No. 33—DSS—P—90(24) POSITIONING, INC. ) & _ 42—DSS—AMEND—90 ). 7—DSS—AMEND—94 For Authority to Construct, Launch and ) 31—DSS—AMEND—94 Operate a Non—Voice, Non—Geostationary ) 32—DSS—LA—94 Mobile Satellite System ) ~135—SAT—AMEND—95 PETITION Leo One USA Corporation ("Leo One USA"), by its attorneys, hereby petitions to declare null and void the license of GE Starsys Global Positioning, Inc. ("GE Starsys")" for failure to comply with the construction milestones the Commission imposed when granting that license. Recent press reports indicate GE Starsys has not yet commenced construction of its satellites and its commitment to implement its satellite system is unclear. Leo One USA requests that the FCC declare the GE Starsys license null and void and make the spectrum currently assigned to GE Starsys available to qualified applicants" in the second processing round of the Non—Voice, Non— Geostationary Mobile Satellite Service ("NVNG MSS"). V Although its FCC license was issued in the name Starsys Global Positioning, Inc., the corporate name was changed to GE Starsys after acquisition of the applicant by GE American Communications, Inc. in 1996. ¥ Leo One USA uses the term "qualified applicants" to refer to second round applicants that ultimately satisfy the rules the Commission adopts in response to its Notice of Proposed Rulemaking for the NVNG MSS. See Amendment of the Part 25 of the Commission‘s Rules to Establish Rules and Policies Pertaining to the Second Processing Round ofthe Non—Voice, Non—Geostationary Mobile Satellite Service, IB Docket No. 96—220, Notice ofProposed Rulemaking (Oct. 29, 1996)("Notice").

—2 . Under the terms of its license, GE Starsys is required to commence construction of the first two satelliteé of its system within one year of the date of grant of the license, which was November 20, 1996.4 GE Starsys‘ license also states that failure to comply with the listed construction milestones will automatically render the license null and void." Recent press reports reveal GE Starsys has not yet commenced construction of any satellites even though it is three months after the first construction milestone expired and fifteen months after grant of a license. An article in the January 13, 1997 Space News reports that the GE Starsys project manager indicated: actual construction of the satellites would not begin for another couple of months. ‘We begin our preliminary design review in February‘ . . .* The failure to even commence pre/iminary design review prior to the expiration of the first construction milestone raises serious questions about GE Starsys‘ unsubstantiated claim that it has satisfied its obligations." The article also reports that the prime satellite contractor has only a memorandum of understanding with the subcontractor responsible for platforms. A memorandum of understanding cannot provide the Commission with any level of comfort that GE Starsys or its manufacturing team has made a commitment to this project. Space News quotes the president of 3¥ Starsys Global Positioning, Inc., 11 FCC Red. 1237, 1240—41 (1995). ¥ Id. at 1240. Y¥ de Selding, Starsys Financial Troubles Stir GE Officials‘ Doubts, Space News, January 13—19, 1997 at 1, 18 (a copy of this article appears as Exhibit 1 hereto). & See Reply Comments of GE Starsys at 2, n.1.

L3 .L Matra Marconi Space, the subcontractor responsible for "skeletal structures or platforms" as stating on January 9, '1997, "All I know is that funding for this is not resolved."* This report provides prima facia evidence of GE Starsys‘ failure to abide by the terms of its license. Absent immediate and substantial evidence that GE Starsys has satisfied its obligations, the GE Starsys license must be declared null and void. This is not a situation where the Commission lacks any reason to investigate the situation or take further action. Here, the Commission is confronted with an open admission from the project manager responsible for satellite construction confirming construction has not commenced. The Commission imposed construction milestones in the GE Starsys license to ensure that GE Starsys does not warehouse valuable and scarce spectrum. The Commission has consistently found that its public interest obligations require that the Commission remain vigilant to prevent warehousing of valuable spectrum which could be put to use by another entity better able to implement a satellite system.¢ Even in cases where there has been substantial excess capacity and where additional applicants could be accommodated, the Commission has imposed construction milestones to ensure licensees have not abused their license obligations.*" The Commission should continue to carry out that obligation in this case as well. L Space News at 18. & See Amendment ofthe Commission‘s Rules to Establish Rules and Policies Pertaining to a Non—Voice, Non—Geostationary Mobile Satellite Service, 8 FCC Red. §450, §455 (1993). ¥ Norris Satellite Communications, Inc., 7 FCC Red. 4289 (1992). The Commission ultimately dismissed the Norris Satellite license for failure to construct according to the construction milestone requirements in its license. Norris Satellite Communications, Inc., DA 96—363, Order (March 14, 1996).

—4L The importance of strictly construing these milestones is amplified by both the critical shortage ofNVNG MSS spectrum and the delays the Commission has already approved to facilitate implementation of the GE Starsys system. The shortage of NVNG MSS spectrum and the constraints this places on the Commission‘s ability to license new systems to compete with the only existing commercial NVNG MSS licensee is a matter of record before the Commission. The Commission‘s recent Notice* proposes innovative and unprecedented sharing arrangements in an attempt to maximize the Commission‘s ability to license additional systems. GE Starsys‘ warehousing of NVNG MSS spectrum is particularly egregious in this situation where numerous potential service providers are seeking to provide the services GE Starsys is failing to pursue. Notwithstanding its failure to commence construction of its first round licensed system, GE Starsys argues to the Commission that it should receive additional NVNG MSS spectrum, even if it prevents licensing additional systems.‘ In addition, GE Starsys asks the Commission to consider the impact of additional systems on its operations.‘ It would be ironic for the Commission to consider these issues when advanced by an entity that is not abiding by the terms of its own license. GE Starsys has already delayed implementation of its system with multiple requests for additional time to qualify for a license which delays present additional justification for strictly construing the milestones. The Commission awarded GE Starsys an NVNG MSS license on November 20, 1995. Grant of the GE Starsys license had been delayed by a number of proceedings > in which GE Starsys attempted to demonstrate its compliance with the Commission‘s alien 14 See supra n. 2. WV Comments of GE Starsys at 9. 1¥ Comments of GE Starsys at 18 et seq.

— 5. ownership and financial qualification rules. In 1993, the Commission reviewed a number of changes in GE Starsyé’ ownership structure which were insufficient to remove foreign control of the applicant. In 1994, the FCC deferred the deadline for GE Starsys to demonstrate its financial qualifications pending resolution of a request for a declaratory ruling concerning compliance with Section 310(a) of the Communications Act. In 1995, GE Starsys again modified its ownership structure to address alien ownership issues. This modification led to the issuance of a declaratory ruling on GE Starsys‘ compliance with Section 310(a). In order to demonstrate its financial qualifications, however, the applicant undertook an additional ownership change in 1995, transferring 80% of its equity to GE American Communications, Inc."* These various ownership changes and related proceedings significantly delayed issuance of the GE Starsys license. Although the Commission considered both applications in the same processing round, the Commission granted a license to Orbital Communications Corporation ("Orbcomm") on October 27, 1994, more than a year before granting the GE Starsys license. Although Leo One USA recognizes the Commission took these extraordinary steps to give GE C Starsys every opportunity to implement its system, Leo One USA notes the problems associated with GE Starsys‘ application have significantly delayed the provision of NVNG MSS services. In addition, delay in resolving GE Starsys‘ application prevented the Commission from expediting its consideration of second round NVNG MSS applications. This compounded the delay in bringing > NVNG MSS services to the public. Because GE Starsys has already been afforded significant 1¥ Citations to and a discussion of these proceedings can be found in the Commission‘s Order granting GE Starsys‘ license. Starsys Global Positioning, Inc., 11 FCC Red. 1237 (1995).

—6— additional time to advance its system and because this has already delayed service to the public, the construction fiilestones applicable to GE Starsys‘ license should be strictly construed. The admission that GE Starsys has not commenced construction of its satellites warrants a declaration that the GE Starsys license is null and void. Expedited action is particularly important in this case where the status of the GE Starsys license could have an impact on the Commission‘s NVNG MSS rulemaking proceeding and on the second processing round which is scheduled to be completed by late spring. At a minimum, the evidence presented herein warrants an immediate investigation of GE Starsys‘ compliance with its license obligations. For the foregoing reasons, Leo One USA Corporation requests that the Commission grant this petition. Respectfully submitted, Robert A. Mazer Albert Shuldiner Vinson & Elkins L.L.P. 1455 Pennsylvania Avenue, N.W. Washington, D.C. 20004 (202) 639—6500 Counsel for Leo One USA Corporation Dated: February 12, 1997

EXHIBIT 1

S P A C E VOL.8 NO. 3 N E W S arsys Finance Troubles JANUARY 13—10, 1997 : 3:580.U8A;$5,70Non—USA:. ir GE Officials‘ Doubts By PETER B. de SELDING launch that month, probably "The transport division‘s decision skeletal structures, or platforms. Lannelongue said Alcatel, which Space News Staff Writer aboard a Lockheed Martin LMLV— forced GE Americom to either in— Norbert Lannelongue, Starsys will be managing Starsys market— PARIS — GE American Com— 1 rocket. crease its own stake in Starsys, or project manager at Alcatel, said ac— ing in Europe as well as providing munications officials are having The contract also stipulates look for partners among other tual construction of the satellites the satellites, wants to ensure that second thoughts about their pro— that Alcatel will supply two addi— companies," this official said. . would not begin for another couple the terminals are available as soon posed $170 million Starsys satel— tional satellites three months lat— "They chose the second route, and of months. "We begin our prelimi— as the first spacecraft are in orbit. lite messaging and position loca— er, and another pair three months up to now have not been able to nary design review in February," Starsys officials have estimated tion system as they experience after that. complete the package." Lannelongue said Jan. 9. "Under that the construction and launch of difficulties rounding up outside Paul Manuele, a spokesman for GE is routinely in discussions with this schedule Matra then would de— the first six satellites, plus two financing, according to officials GE Americom, said Jan. 9 that potential partners for a range of liver the first platform to us in June U.S.—based ground control centers familiar with the program. the company had not abandoned programs but will not comment on and six years of operations, would 1998." These officials said the Prince— Starsys and that the program re— negotiations related to Starsys, Armand Carlier, president of Ma— cost about $170 million. ton, N.J., company has set an in— mains on track. Manuele said, adding only: "This is — tra Marconi Space, said his compa— One official said GE was under formal deadline of early next a GE project and financing is not ny remains hopeful that Starsys pressure to decide whether to pro— "Both Alcatel and GE Ameri— an issue." month, by which time it hopes to will move forward. ceed with Starsys before spring be— com have invested considerable have secured the needed equity Starsys satellites are designed to "All I know is that funding for cause after that it will begin incur— resources in this program, and participation to contmue with aid shipping companies in keeping this is not resolved," Carlier said ring substantial costs associated everything is proceeding the way Starsys. track of their cargo containers. Jan. 9. "This is common in the with the work of Alcatel and Matra it should," Manuele said. "There "It is clear that GE has become With small Starsys terminals on business. It is a contract of up to Marconi Space. is a lot of work to be done in an them, the containers would be able ; 24 satellites for us. We were happy tentative about the program since "If GE stops now, they can get undertaking of this size, but it is tying up the financial package is to send automatic 80—character to be selected, and we would be away with paying Alcatel maybe a absolutely not on hold." slower than expected," said one messages on their temperature, couple of million dollars," this offi— One U.S. industry official said happier if the project would con— industry official whose company pressure and other conditions, as cial said. "But once those two com— expects to participate in Starsys. GE Americom, when it signed the well as their location. tinue." panies begin attacking the con— Starsys contracts last July, had Lannelongue said Alcatel officials "They are taking a new look at GE Americom purchased a ma— struction of the satellites it will be counted on GE‘s transport divi— jority stake in Starsys Global Posi— are more than ever convinced that much more expensive for them to the business case." sion to be among the equity part— Starsys‘ market potential is huge, Alcatel Espace of Paris remains tioning Inc. in June and then creat— buy their way out." ners participating in the initial fi— extending from the transport in— under contract to GE Americom ed the GE Starsys company. The nancing. The transport division, dustry into utility companies that to provide the 70—kilogram Alcatel contract followed the next Staff writer Richard McCaffery this official said, has since decided month, Alcatel Espace in turn could station Starsys terminals at contributed to this story from Starsys satellites. Alcatel officials not to participate at this stage, signed a memorandum of under— remote outposts to read meters. Washington. said last week they are continu— even thoughit may be a major cus— standing with Matra Marconi Space GE Americom has yet to select a ing to work on the program, and tomer 6f Starsys services once the of Velizy, France, for the satellite manufacturer of terminals. that their contract with GE Americom remains in full force. systemis operational. Under the contract, Alcatel is obliged to deliver the first two —

CERTIFICATE I hereby certify that a true and correct copy of the foregoing Petition of Leo One USA Corporation was sent by first—class mail, postage prepaid, this 12th day of February, 1997, to each of the following: * Chairman Reed E. Hundt * Ms. Cecily C. Holiday Federal Communications Commission Deputy Division Chief, Satellite & 1919 M Street, NW., Room 814 Radiocommunication Division Washington, D.C. 20554 International Bureau Federal Communications Commission * Commissioner James H. Quello 2000 M Street, N.W., Room 520 Federal Communications Commission Washington, D.C. 20554 1919 M Street, N.W., Room 802 Washington, D.C. 20554 Ms. Fern Jarmulnek Chief, Satellite Policy Branch * Commissioner Rachelle B. Chong Satellite Radio Communication Division Federal Communications Commission International Bureau 1919 M Street, N.W., Room 844 Federal Communications Commission Washington, D.C. 20554 2000 M Street, N.W., Room 518 Washington, D.C. 20554 * Commissioner Susan Ness Federal Communications Commission Ms. Karen Kornbluh 1919 M Street, N.W., Room 832 Assistant Bureau Chief Washington, D.C. 20554 International Chief Federal Communications Commission * Mr. Donald Gips 2000 M Street, NW. Ste 800 Chief, International Bureau Washington, D.C. 20554 Federal Communications Commission 2000 M Street, N.W., Room 800 Ms. Paula H. Ford Washington, D.C. 20554 International Bureau Federal Communications Commission * Mr. Thomas S. Tycz 2000 M Street, N.W., Room 502—A Division Chief, Satellite & Washington, D.C. 20554 Radiocommunication Division International Bureau Mr. Harold Ng Federal Communications Commission Engineering Advisor 2000 M Street, N. W., Room 520 Satellite & Radiocommunications Division Washington, D.C. 20554 International Bureau Federal Communications Commission 2000 M Street, Room 801 Washington, D.C. 20554 *By Hand Delivery

*Ms. Cassandra Thomas International Bureau Philip V. Otero, Esq. Federal Communications Commission GE American Communications, Inc. 2000 M Street, NW., Room 810 Four Research Way Washington, D.C. 20554 Princeton, NJ 08540—6644 Albert Halprin, Esq. Peter Rohrbach, Esq. Stephen L. Goodman Hogan & Hartson J. Randall Cook 555 13th Street, N.W. Jeff L. Magenau Washington, D.C. 20004 Halprin, Temple, Goodman & Sugrue Counsel for GE/Starsys Suite 650 East Tower 1100 New York Avenue, N.W. Mr. Charles Ergen, President Washington, D.C. 20005 E—SAT, Inc. Counsel for Orbcomm 90 Inverness Circle, East Englewood, CO 80112 Henry Goldberg, Esq. Joseph Godles, Esq. Leslie A. Taylor, Esq. Mary Dent, Esq. Guy T. Christiansen Goldberg, Godles, Wiener & Wright Leslie Taylor Associates, Inc. 1229 Nineteenth Street, N.W. 6800 Carlynn Court Washington, D.C. 20036 Bethesda, MD 20817—4302 Counsel for Volunteers in Technical Counsel for E—Sat Assistance James A. Kirkland Phillip L. Spector, Esq. Jennifer A. Purvis Paul, Weiss, Rifkind, Wharton & Garrison Mintz, Levin, Cohn, Ferris, 1615 L Street, N.W. Glovsky and Popeo, P.C. Suite 1300 701 Pennsylvania Ave., N.W., Suite 900 Washington, D.C. 20036—5694 Washington, D.C. 20004 Counsel for CTA Counsel for Satellife, Inc. Aileen Pisciotta, Esq. Kelly, Drye &Warren 1200 19th Street, N.W. Suite 500 Washington, D.C. 20036 Counsel for Final Analysis *By Hand Delivery


Document Created: 2014-08-27 15:39:07
Document Modified: 2014-08-27 15:39:07
© 2024 FCC.report
This site is not affiliated with or endorsed by the FCC