Attachment ex parte

ex parte

Ex PARTE PRESENTATION NOTIFICATION LETTER submitted by New York Satellite Industries LLC

ex parte

2003-05-23

This document pretains to SAT-AMD-19950224-00033 for Amended Filing on a Satellite Space Stations filing.

IBFS_SATAMD1995022400033_717836

                                                EX PARTE OR LATE FILED                                  OR , GINAL
                          Wiley Rein &F1§eldmg LLP            RECEIVED

                                OH!G‘NAL                         May 2 3 2003
1776 K STREET NW          May 23, 2003                    Federal Communications Commission             'zl'(l)'lzc?l ;i%lgta
WASHINGTON, DC 20006                                              Office of Secre
PHONE   202.719.7000                                                                tay                 tpaoletta@wrf.com
FAX     202.719.7049


7925 JONES BRANCH DRIVE   Ms. Marlene H. Dortch, Secretary
SUITE 6200                Federal Communications Commission
McLEAN, VA 22102
                          236 Massachusetts Avenue, N.E., Suite 110
PHONE   703.905.2800
                          Washington, DC 20002
                                                                                               Receiveqg
FAX     703.905.2820
                                                                                              JUnN
                          Re:    Ex Parte Presentation                                               1 7 2003
www.wrf.com
                                 Final Analysis Communication Services, Inc.                   Policy Branch
                                 Petition for Waiver (filed Mar. 29, 2002);                 International Burcay
                                 File Nos. SAT—LOA—19941116—00088;
                                 SAT—AMD—19950224—00033; SAT—AMD—19960223—00031;
                                 SAT—AMD—19960819—00107; SAT—AMD—19971030—00175


                          Dear Ms. Dortch:

                          On behalf of New York Satellite Industries, LLC ("NYS"), I am filing this notice of
                          an ex parte communication with Commissioner Martin and his legal advisor Sam
                          Feder on May 22, 2003. NYS was represented by Managing Member Nader
                          Modanlo and Patricia Paoletta as counsel, Final Analysis Communication Services,
                          Inc. ("FACS"), NYS*‘ subsidiary and FCC licensee was represented by Jan Friis of
                          FACS, and Governor Jim Gilmore and Randy Sifers of Kelley Drye as counsel, and
                          Amy Mehlman of Capitol Coalitions.

                          During the meeting, NYS and FACS described the events related to the involuntary
                          Chapter 7 bankruptcy of FAI, FACS®‘ former parent, including the continued
                          financial viability of FACS, the process for seeking and obtaining an approved
                          Technical Assistance Agreement in FACS‘ own name from the State Department,
                          and FACS‘ continued development of the FAISAT system. NYS noted how it was
                          able to raise an additional $10 million in financing in 2002, during difficult
                          economic times, especially in the telecom sector. FACS itself had signed a contract
                          for reservation of secondary payload space on its aircraft just weeks prior to the FAI
                          involuntary bankruptcy and had received the first installment of that contract just
                          days before certain of FAT‘s creditors filed for bankruptcy. A timeline of such
                          events is attached.

                          FACS noted that in an effort to expedite the sale of FAI‘s assets, gain control of
                          FAT‘s assets and to continue development of the FAISAT system, NYS made a bid
                          for the assets of FAI in November 2001. This bid was rejected by the Trustee, but
                          did lead to her expediting the sale in January 2002. Counsel also shared the letters,
                          submitted to the Commission May 21, 2003, of January 9—10, 2002 between the&
                                                                                          No. of Copies reo‘d__LA——
                                                                                          Lisi ABCDE
                                                                                          _2z


May 23, 2003
Page 2


counsels for the Trustee and FACS demonstrating that FACS was prohibited, under
threat of legal action, from acting outside the normal course of business during the
Chapter 7 liquidation proceedings ofits debtor parent, which at the time, held the
prime contract to develop the FAISAT system.

NYS and FACS also noted that advocacy of Agenda Item 1.16 at the World
Radiocommunication Conference ("WRC") is critical for both FACS and the
competitiveness of the Little LEO industry, and the credibility of the U.S.
government. Due to the difficulty of getting items on the increasingly crowded
WRC agendas, it is likely that if the U.S. is not successful at WRC—03 on Agenda
Item 1.16 then additional feeder link spectrum for Little LEO services will not be an
agenda item at the next WRC in 2007 or 2008.

For the last several years, continuing throughout 2002 and 2003, FACS has been
working domestically and internationally with FCC staff and most recently with the
WRC delegation, toward securing an international allocation for Little LEO
spectrum at WRC—03. FACS is spending considerable funds at WRC, sending four
delegates and many more representatives, exhibiting the technology, and hosting
several events to improve the efficacy of advocacy on Agenda Item 1.16.

The companies noted that other governments have relied on U.S. support before the
WRC to study technical issues raised by the U.S. Proposal on Agenda Item 1.16,
and any action undermining the continuance of FACS® license, and therefore the
ability of FACS to effectively advocate for Agenda Item 1.16 at WRC—03, would
raise questions regarding U.S. resolution. Other governments are interested in the
application of these low—cost data services for fleet management, shipping container
security, and pipeline, utility, and environmental monitoring. The United States
obviously has a strong interest in ensuring a competitive market for such
applications for homeland security. Moreover, since the domestic allocation for the
feeder links is conditioned on the international allocation being adopted at WRC‘03,
successful advocacy is critical to any subsequent domestic implementing allocation
and assignment.

Counsel noted that if the Bureau decides not to extend previous, and approve new,
milestones than the Little LEO industry will soon become a monopoly, contrary to
Commission policy. For all the above reasons, NYS and FACS requested that the
Bureau continue to review the substantial materials submitted to the Bureau
demonstrating that there were both unforeseeable circumstances outside FACS®
control that prohibited it from meeting its 2002 milestones, as well as unique


May 23, 2003
Page 3


circumstances mitigating in favor of extension. The public interest is served in
granting both a waiver of the March 2002 milestones, and approving new
milestones that FACS, due to the recently approved TAA, will soon be able to
provide to the Bureau.

Pursuant to Section 1.1206 of the FCC‘s rules, an original and one copy of this
letter is being filed. Please do not hesitate to contact me with any questions.
                                                     Sincerely,




                                                     Patricia J. Paoletta




Attachment: Timeline

ce:    Bryan Tramont
       Sam Feder
       Jennifer Manner
       Paul Margie
       Barry Ohlson
       Don Abelson
       Anna Gomez
       Jackie Ruff
       Cassandra Thomas
       Mark Young
       Stewart Block


Meeting with Commissioner Martin —— Timeline of FACS license

          April 1998 FACS licensed by FCC

         March 1999 FACS meets first milestone (firm contract between FAI and FACS)

         August 2001 FACS signs           contract for payload; receives $2 M in Sept.

         September 2001 certain creditors file Chapter 7 against FAI, FACS‘ parent

         October 2001 Trustee appointed for FAI (FACS‘ parent and prime contractorr)

         November 2001 NYS bids for FAI‘s assets (including controlling shares of FACS)

         December 2001 Trustee rejects bid attempt, but sends notice of sale of FAI

         January 2002 NYS wins auction for FAl assets; FACS meets with Bureau and files
         for transfer of control

         March 2002 FACS files for waiver of March and September2002 milestones

         April 2002 FACS meets with Bureau staff

         May 2002 NYS raises $10 M in new financing

         August 19, 2002 TOC granted and same day FACS files for its registration w/ State

         September 2002 FACS requests, suggested by State, transfer of FAI‘s TAA to FACS

         September 2002, Trustee transfers stock to FACS; NYS signs launch and spacecraft
         bus contracts with Polyot

         October 2002 FACS continuously urges (numerous communications) State to
         expedite TAA

         December 2002 State determines TAA cannot be transferred from FAI to FACS; and
         FACS files for approval of a new TAA

         January — May 2003, NYS and FACS continues to engage in WRC prep (beginning
         in 2002)                                                              ’

        February 2003 FACS signs $20 M contract for investment in FACS


        May 14, 2003 FACS receives TAA approval from State

        Expected May 31, 2003 —FACS can file with FCC providing new milestones



                                      Confidential


e   Expected December 2003 flight radios and related equipment delivery to FACS

e   Expected mid 2004 spacecraft bus delivery to FACS

e   Expected 4Q 2004 launch of the first 2 satellites




                                   Confidential



Document Created: 2019-04-19 18:00:37
Document Modified: 2019-04-19 18:00:37

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