Attachment 2002CAI Data-Motorol

2002CAI Data-Motorol

COMMENT submitted by Motorola and Teledesic

tr

2002-07-10

This document pretains to SAT-AMD-19971219-00199 for Amended Filing on a Satellite Space Stations filing.

IBFS_SATAMD1997121900199_875114

                                                                                                    ORIGINAL
            irmeneals im ~                    Before the                               85 ts
            "~~‘¢CFederal Communications Commission                                            (’EZ’VEH
                $ .                Washington, D.C. 20554                              JUL 0 2002
                                                                               ie/9        n

       Ese m .                                                                     #f;FFioe D;A;::?Tf% Cormssioy
In the Matterof "°V©                                  )                                         ° SEchemay
       0                                              )    File Nos. 88—SAT—P/LA—97;
CAl Data SystEMsS, Inc.                               )    32—SAT—AMEND—98;
                                                      )    —IBFS Nos. SAT—LOA—
Application for Authority to Construct,               )    19970702—00057; SAT—AMD—
Launch, and Operate a Ka—Band                         )    19971219—00199; SAT—AMD—
Satellite System in Fixed Satellite Service           )    19990930—00093




                JoINT COMMENTS OF MOTOROLA AND TELEDESIC

        Mo;corola, Inc. ("Motorola") and Teledesic LLC ("Teledesic") hereby comment on the

Petition for Waiver or Extension of Milestone filed by CAl Data Systems, Inc. on June 26, 2002.‘

Although Motorola and Teledesic would not otherwise be inclined to file any comments on

such a petition, CAl‘s contention that it, a second round Ka—band GSO licensee, is entitled to

an extension or waiver of its construction commencement milestone because of its desire to

acquire one of Motorola‘s orbital locations assigned in the first round is such a legally and

factually flawed argument that it demands a response.

       As noted in its petition, CAl has had a difficult time deciding at which orbital location it

would most like to operate its single satellite. In its July 1997 satellite application, CAl

requested to construct, launch, and operate its satellite at one of three orbital locations: 93°

W.L., 95° W.L. or 103° W.LA During its participation in orbital assignment plan negotiations


    CAl Data Systems, Inc. Petition for Waiver or Extension of Milestone, File Nos. 88—SAT—P/LA—97 and 32—SAT—
    AMEND—98; IBFS Nos. SAT—LOA—19970702—00057; SAT—AMD—19971219—00 199 and SAT—AMD—19990930—
    00093 (filed June 26, 2002) ("CAl Petition").
    CAl Data Systems, Inc. Application for Authority to Construct, Launch, and Operate a Ka—Band Satellite
    System in Fixed Satellite Service, File Nos. 88—SAT—P/LA—97 and 32—SAT—AMEND—98; IBFS Nos. SAT—LOA—
    19970702—00057; SAT—AMD—19971219—00199 and SAT—AMD—19990930—00093 filed July 2, 1997).


 with other second round Ka—band GSO applicants in 2000, CAl signed both a majority plan

 wherein CAl agreed to accept the 107° W.L. orbital location,‘ and an alternative plan wherein

 CAl agreed to the assignment of the 79° W.L. orbital location.‘ Nine months after agreeing to

 its fourth and fifth selected orbital locations, CAl filed a letter with the Commission in June

 2001 in which it asserted a new interest in the '87° W.L. orbital location "if it becomes available

 for second round assignments.”5 In the same letter CAl renewed its interest in the orbital

 locations that it had agreed to accept in both the majority and alternative orbital assignment

 plans devised by the industry: "In terms of its preferences, if CAl could choose its orbital

 location, 87 degrees W.L. would be its first choice, 79 degrees W.L. its second choice, and 107

 degrees W.L. its third choice.‘"*

         On August 2, 2001 the Commission licensed CAl to operate its Ka—band satellite and

assigned it the 125° W.L. orbital location.‘ In its companion order assigning second round

orbital locations to fixed satellite service space stations in the Ka—band, the Commission

explicitly renewedits longstanding policy that

                 "applicants‘ requests for particular orbital locations do not limit [the
                 Commission‘s] flexibility to assign orbital locations that best serve
                 the public interest. Instead our assignment of orbital locations
                 includes a consideration of each applicant‘s request and several
                 competing factors, which may include volume and distribution of
                 traffic requirements, constraints imposed by satellite design, plans of



3    See Ex Parte Presentation of CAl Data Systems, Inc. et al., File Nos. SAT—AMD—19971219—00199, etc. (filed
     August |1, 2000); see also Revision to Proposed Orbital Assignment Plan of CAl Data Systems, et al, in File
     Nos. SAT—AMD—19971219—00199, etc. (filed Nov. 1, 2000).
*    See Ex Parte Presentation of CAl Data Systems, Inc. et al, File Nos. SAT—AMD—19971219—00199, etc (filed
     August 1 1, 2000).
     Ex Parte Letter from James U. Troup and Adrian Copiz, Counsel for CAl Data Systems, Inc. to Magalie Roman
     Salas at I (filed June 8, 2001) (emphasis added).
60   1d. at 3.
‘    CAl Data Systems, Inc., Order and Authorization, 16 FCC Red 14269 (Int‘l Bur. rel. Aug. 3, 2001).


               other countries for their satellites, and equitable treatment of new
               and established operators.‘"*

Thus, based on all of the available information supplied to it in the context of the second

processing round, the Commission concluded that assigning CAl the 125° W.L. orbital location

would best serve the public interest.

        CAl‘s license, like all of the other Ka—band satellite licenses issued on August 2, 2001,

included a clause which afforded the company thirty days to decline the authorization as

conditioned, noting that "failure to respond within that period will constitute formal acceptance

of the authorization as conditioned."" CAl did not exercise its right to decline the

authorization to construct, launch, and operate at the 125° W.L. orbital location. Instead it

accepted this license and thereby assumed all of the obligations described therein, including the

obligation to sign a construction contract by August, 2002 for a satellite to be launched and

operated at the 125° W.L. orbital location.

        Now, eleven months after receiving its license and one month before its construction

commencement milestone, CAl claims that it is entitled to an extension or waiver of its first

milestone because "there is uncertainty for which orbital location CAl Data will be constructing

and launching a satellite."" As explained above, this is simply not true. Indeed, in its order

released on August 3, 2001 wherein it assigned orbital locations to second round GSO FSS

applicants, the Commission explicitly denied CAl‘s request for assignment to the 87° W.L.

orbital location noting that that location "was assigned in the first round" and that "125



8   Second Round Assignment of Geostationary Satellite Orbit Locations, 16 FCC Red 14389, 14390—9 1 [ 5 (Int‘l Bur.
    rel. Aug. 3, 2001) citing Assignment of Orbital Locations to Space Stations in the Domestic Fixed Satellite Service, 3
    FCC Red 6972 (Int‘l Bur. 1988) ("Second Round GSO FSS Assignment Order").
°   CAl Data Systems, Inc., Order and Authorization, 16 FCC Red at 14277 (| 32. >
"   CAl Petition at l (filed June 26, 2002).


\[degrees] W.L. provides one 50—state coverage location with U.S. ITU date priority ...."

Although CAl has apparently changed its mind again and now would like to trade its licensed

orbital location of 125° W.L. for Motorola‘s licensed orbital location of 87° W.L., neither the

Commission‘s rules nor CAl‘s license make afiy provision for such a switch even if the 87° W.L.

orbital location were available, which it is not. Indeed, CAl admitted as much in its June 2001

letter in which it requested the 87° W.L. orbital location "if it becomes available to second

round applicants."" It did not "become available" before the licensing of second round

applicants and is fiot available today.

        The orbital location which CA now seeks is one of four first round Ka—band orbital

locations currently licensed to Motorola. In January 2001 Motorola and Teledesic filed an

application seeking the Commission‘s consent to the assignment of Motorola‘s Ka—band

"Millennium license" to Teledesic.® That application remains pending. The most popular

argument against the assignment application after it was placed on public notice was that the

proposed assignment would grievously injure second—round Ka—band applicants (or alternatively

that denying the application would inexorably resolve t\he second processing round). As

Motorola and Teledesic noted in their May 22, 2001 Consolidated Joint Opposition to the

Petitions to Deny their transfer application, these arguments are contrary to law and

unreasonable on their face." The Commission apparently agreed and assigned each of the

second round Ka—band GSO FSS applicants orbital locations on August 2, 2001 from the


!‘ _— Second Round GSO FSS Assignment Order, 16 FCC Red at 14400 [3 1.
    Ex Parte Presentation of CAl Data Systems, Inc. at 1 (filed June 8, 2001).
    Application of Motorola, Inc. and Teledesic LLC for Consent to Assignment of Authorization to Construct,
     Launch, and Operate a Geostationary Fixed Satellite System, File No. SAT—ASG—20010109—00005 (filed Jan. 9,
    2001).
    Consolidated jomt Opposition of Teledesic LLC and Motorola, Inc. to Petitions to Deny, File No. SAT—ASG—
     20010109—00005 (filed May 22, 2001).


available pool of remaining Ka—band orbital locations. CAl‘s renewal of its contention that the

Commission‘s decision on its milestone compliance is "highly dependent" on Motorola and

Teledesic‘s assignment application suffers from the same legal and factual infirmities as those

filed back in May 2001 and is now completely moot."

       Section 310(d) of the Communications Act expressly forbids the Commission from

considering "whether the public interest, convenience, and necessity might be served by the

transfer, assignment, or disposal of the permit or license to a person other than the proposed

transferee or licensee.""" Therefore, the Commission is not legally entitled to consider assigning

Motorola‘s 87° W.L. orbital location to any party other than Teledesic. Moreover, denial of the

assignment application would not cancel the Millennium license as assumed by CAl but instead

simply leave Motorola in place as the licensee. Indeed, even if there were reasonable grounds

for revoking the license, which there are not, no second round licensee including CAI>wou|d be

eligible to receive this orbital location; it would simply become part of the available pool of

orbital locations for the third Ka—band GSO FSS processing round. Thus, quite apart from the

legal prohibitions of section 3 10(b), there is simply no factual basis upon which the Commission

could conclude that the proposed assignment to Teledesic could have any effect whatsoever on

CAl‘s prospects for successfully constructing, launching, and operating its satellite.

       Motorola and Teledesic urge the Commission to judge both their pending assignment

petition and the instant petition of CAl on their individual merits and to dismiss summarily this

and any other request by second round applicants to "trade up" on their orbital assignments.



    CAl Petition at 4. CAl also incorrectly alleges that "Teledesic has already been assigned numerous Ka—band
    orbital locations." CAl Petition at 6. Teledesic is licensed to construct, launch and operate an NGSO FSS
    satellite system. Unlike GSO systems, NGSO operators do not require assignments of orbital locations and
    Teledesic has not been previously licensed to operate a GSO satellite system in the Ka—band.
t   47 U.S.C. § 310(d) (emphasis added).


The Commission should provide CAl with the certainty it craves by summarily denying the

instant petition and thereby reminding CAl of its obligation to enter into a non—contingent

construction contract for a satellite to operate at 125° W.L. by August, 2002.




                                             Respectfully submitted,



Lz A. Malit/¢sy _                            VKitts, A /Zwé;L——
Philip L. Malet                              Mark A. Grannis
Marc A. Paul                                 Kelly S. McGinn
STEPTOE & JOHNSON LLP                        HARRIS, WILTSHIRE & GrRaANNIS LLP
1330 Connecticut Avenue, N.W.                1200 Eighteenth Street, N.W.
Washington, DC 20036                         Washington, DC 20036
202—429—3000                                 202—730—1 300

Counsel for Motorola, Inc.                   Counsel for Teledesic LLC




Date: July 10, 2002


                                   CERTIFICATE OF SERVICE

       I, Ménica A. Lizama, do hereby certify that | caused the foregoing Comments of
Motorola, Inc. and Teledesic LLC to be served on the parties listed below by first class mail,
postage prepaid on this 1Oth day of July, 2002.


                                                        Norman P. Leventhal
James U. Troup
                                                        Stephen D. Baruch
Adrian B. Copiz
                                                       David S. Keir
McGuire Woods
                                                       Philip A. Bonomo
Washington Square
                                                       Leventhal, Senter & Lerman PLLC
1050 Connecticut Ave., N.W.
                                                       2000 K. Street, N.W.
Suite 1200
                                                       Suite 600
Washington, D.C. 20036—53 17
                                                       Washington, D.C. 20006
Counsel for CAl Data Systems, Inc.
                                                       Counsel for TRW, Inc.

Stephen E. Coran
                                                       Todd M. Stansbury
Manatt, Phelps & Phillips
                                                       Jennifer Hindin
1501 M Street N.W., Suite 700
                                                       Wiley, Rein & Fielding
Washington D.C. 20005—1 702
                                                        1776 K Street, N.W.
Counsel for KASTARCOM World Satellite, LLC
                                                       Washington, D.C. 20006
                                                       Counsel for DirectCom Networks, Inc.
Brian D. Weimer
                                                       Tara K. Giunta
Skadden, Arps, Slate, Meagher & Flom LLP
                                                       Coudert Brothers
1440 New York Avenue
                                                       1627 | Street, N.W.
Washington, D.C. 20005
                                                       Washington, D.C. 20006
Counsel for Celsat America, Inc.
                                                       Counsel for Pacific Century Group, Inc.
Gary M. Epstein                                        Leo Mondale
John P. Janka                                          President
Latham & Watkins                                       @contact LLC
1001 Pennsylvania Avenue, N.W.                         1233 20" Street, N.W.
Suite 1000                                             Washington D.C. 20036
Washington, D.C. 20004
Counsel for Hughes Communications, Inc.

Raymond Bender                                         Joseph A. Godles
Dow, Lohnes & Albertson, PLLC                          W. Kenneth Ferree
1200 New Hampshire Avenue, NW.                         Goldberg, Godles, Wiener & Wright
Washington, D.C. 20036—6802                             1229 19th Street, N.W.
Counsel for Lockheed Martin Corporation                Washington, D.C. 20036
                                                       Counsel for PanAmSat Corporation


 Stephen R. Bell                      Bruce D. Jacobs
 Jennifer D. McCarthy                 Kathryn R. Schmeltzer
 Willkie Farr & Gallagher             Tony Lin
 Three Lafayette Centre               Shaw Pittman
  | 155 2 1st Street, N.W.            2300 N Street, NW.
. Washington, D.C. 20036—3384         Washington, D.C. 20037—1 128
  Counsel for Loral Cyberstar, Inc.   Counsel for Pegasus Development
                                      Corporation



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Document Modified: 2019-04-18 13:04:41

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