Attachment DA 06-831

DA 06-831

ORDER submitted by IB,FCC

DA 06-831

2006-04-10

This document pretains to SAT-AMD-19971222-00204 for Amended Filing on a Satellite Space Stations filing.

IBFS_SATAMD1997122200204_494430

Federal Communications Commission pa ces1 Before the In the Mattr of ) ) FileNos. SAT—LOA—19951109—00185 LoRAL SKYNET CoRPoRATION ) sat—LoA—19951109—00186 ) SAT—AMD—19950020—00157 Authorization to Construct,Launch ) saT—AMD—19950920—00158 And Operate a Ka—band Satellite System in the ) SAr—AMD—19971222—00216 Fixed—Satelite Service ) SAT—AMD—19971222—00204 ) saT—MoD—20000104—00053 ) SAT—MOD—20000104—00054 ) ) CallSigns: §2218, 82219, 52383, and 82384 ) Authorization to Construct, Launch ) And Operate a Ku—band Space Station in the ) FileNo. SAT.LOA—i99stz1s—00022 Domesti Fixed Satelite Service h ) CallSign:S2i61 ) ORDER Adopted:. Aprl 10,2006 Released: Aprl 10,2006 By the Chief, International Bureas: L inTRopUCTION 1.. n this Order, we declare null and void Loral Skynet Corporation‘s (Loral‘sauthorizations to launch and operate one geostationary—sstelite orbit (GSO) Ku—band satelite and four GSO Ka—band" sateltes for failure to meet ts milestone requirements. Loral‘s fallure to make progress in constrcting these satelites in the years since grant —— in the case of the Ku—band satelite, nine years since grant —— represents an abdication of itslicenses and renders the authorizations null and void by their own terms. Accordingly, the 135° W.L. orbit location and the associated 11.7—122 GHz and 14.0—14.5 GHz frequency bands that had been assigned to Loral in the Ku—band are available for reassignment, The 139° WL, 67° WXL, 1265° EL. and 15° W.L. orbital locations and associated 183—18.8, 19.7—202, 2835— 286, and 29.25—30.0 GHz frequency bands that had been assigned to Loral in the Kacband are also availible for reassignment. ! The Kacband Hcenses were oriinally granted to Loral CyberStar, Inc. and the Ku—band Hiense was originally granted to Orion Network Systems, Inc. Through a series of trnsfirs, Loral Smet Corporation now holds the licensecs. See Applcations ofLoral Space & Communications Lid. (DIP)for the Transfer of Contral of Licenses and Authoriations Held by Loral Orion, Inc.(DIP), Lorl SpaceCom Corponation (DIP) and Loral Sgmet Netwodk Servies, In. (DIF) to Lorl Space & Communications Inc. 1B Docket No. 0%—233, Public Note, DA 05—2639(rel Sept. 30,2005), Fortheaseofreference, werefeto thlcenseeas Loral hroughoutthe document * The Kiband consists of the 183—18.8 Gifr 1977202 Gliz, 2835286 GHiz, and 2925300 GHHz frequency bands, The "eanventiona® Kurband consists of 11.7—12.2 GHHz and 14.0—14.5 GHiz frequency bands.

Federal Communications Commission pa cesst 1. BACKGROUND 2. Ku—band Satelite. On November 21, 1996, the Commission authorized Loral to construct, Imunch, and operate the Orion F4 Ku—band satelite (Call Sign: S2161) at the 135° WL. orbital location. The satellite was authorized to provide Fixed—Satelite Service (FSS) in the 11,7—12.2 GHz and 14.0—14.5 GHe frequency bands. The authoriztion established. the following milestone requirements: (1) construction commenced by March 30, 1997; (2) construction completed by March 30, 1999; and (3) Ieunch and operation by June 30, 1999, Under the terms ofthe grant, unless extended by the Commission for good cause shown, the Orion 4 authorization would become null and void in the event the space station was not constructed, launched, and suecessfully placed into operation in accordance with the technical parameters, terms, and conditions ofthe authorization by the milestone dates. Loral never filed a request to extend the satelite‘s milestones and failed to meet any ofthe milestones. 3. Ka—band Satelites, In December 2000, the Commission granted Loral authority t construct, aunch, and operate the Orion FI1 satelite (Call Sign: S2383) at the 67° W.L. orbital location and the Orion F12 satelite (Call Sign: $2384) at 126.5° EL.orbit location.® The satelites were authorized to provide FSS in the 183—18.8, 19.7—202, 2835—286, and 29.25—30.0 GHz frequency bands. The authorization established the fllowing milestone dates: (1) construction commenced by December 2001 or both satelites and (2) launch and operation by June 25, 2005 for Orion F11 and by July 23, 2008 for Orion F12Under thterms ofthe grant, unless extended by the Commission for good cause shown, the Orion F11 authorization and the Orion FI2 authorization would, respectively, become null and void in the event the space stitions were not constructed, Iaunched, and suecessfully placed into operation in sccordance with the technical parameters,terms, and conditions of the authorization by the milestone dates. 4. On August 2, 2001, the Commission authorized Loral to launch and operate two additional Ka—band satelftes —— Orion FS (Call Sign: S2218) at the 147° WL. orbital location and the Orion FIO satelite (Call Sign: $2219) at the 15° W.L. orbial location.® The satlltes were authorized to provide FSS in the 183—18.8, 19.7—202, 2835—286, and 29.25—30.0 GHz frequency bands. The Commission established the following milestones forthese satelites: (1) construction commenced by August 2002 for the Orion FIO satelite at the 15° W.L. orbital location and by August 2003 for the Orion FS satellite at the 147° W.L. orbitallocation, and (2) "bring into use" by June 2005 for Orion FIO and by July 2005 for Orion ES." Under the terms ofthe grant, unless extended by the Commission for good cause shown, the Orion ES authorization and the Orion FIO authorization would, respectively, become null and void in the > See Applieations of Orion Networks Systems, Menrandare Gpinion and Order, DA 96—1938, 11 FCC Red 20434 (1996; Assignment of Orbtal Locatins to Space Staions in the Domesic Fixed—Satellte Sevice, Order and Authoriation, DA 96—713, 11 ECC Red.13,768(May 7, 199. * See Loral CyberStr, Inc, Order andduthorization, 15 ECC Red 24602 (InI Bur2000) * On January 4, 2000, Loral requested an extension of its milestone requirements for these stelits.. The International Bureau denied the request finding that the circurmstances cted by Loral did not warrant an extension. Loraldid notappealthat deisin. See LoralSpace & Communications Corp. Orde, 16 FCC Red 11044 (ntI Bur. 2000) ° See Lorl CyberStar, ncOrder and Authorization, 16 ECC Red 14346 (Int! Bur. 2001). Although Loral was initaly assigned the 147° WL orbial locaion for ts Orion FS satellte, it was subsequentl assigned the 139° W.L rbialloction in 2002. See Assignment of Geosttionay Satelite Orbit Locationsto Fzed Satelte Service Space Stition in the Kacband, Order, 17 FCC Red 14400 (Sut. Div.2002). * The Commission did not issue milestone dates in the normal manner pursuant to Section 25,145 (1 ofthe Commission rulessince thase dates would have occurred ate the Itemational Telecommunications Union‘s date for the satlftes being "brought nto us? t thoselocations. Instead, the Commission used the TTU‘s "brought nto use"dateas the miestoneto protect those orbtl locations. See Loral CyberStar, Inc., 16 RCC Red at M4357. 2

Federal Communications Commission ba ces3 event the space stations was not constructed, Iaunched, and suecessfully placed into operation in sccordance with the technical parameters,terms, and conditions of the authorization by the milestone dates. 5.. In 2002 and 2003,the Commission determined that Loral met the first milestone for Orion F5, Orion FI1, and Orion FI2 by entering into satelite manuficturing contracts". On September 22, 2004, the Bureau requested that Loral provide a copy of a construction contract and veriication of construction progress with respect to Orion FIO" In response, Loral stated that, in light of the circumstances that ed to and necessitted its Chapter 11 reorganization filing, t has not been able to proceed with constrction of Orion F10.® 111. DISCUSSION 6. The Commission has required. satelite liensees to adhere to system implementation milestone schedules for more than two decades." . Milestone schedules ensure that Hicensees are proceeding with construction and will munch their satelftes in a timely manner, and that the orbit spectrum resource is not being held by licensees unable or unwilling to proceed with their plans." Warchousing this resource could hinder the availablity of services to the public by blocking entry by other entiies willing and able to proceed immediately with the construction and launch oftheir satelite systems. 7. Kiband Authorization. Nothing in the record indicates that Loral has ever made any progress on the construction of its Orion F4 satelite nor has it sought extension of the milestonc requirements for this satelte. Consequently, Loral‘s authorization for the 135° W.L.orbital location is null and void. This location and the associated 11.7—12.2 GHz and 14.0—14.5 GHz frequency bands are available to other potential applicants. * See Public Notie Report No. SPB—179, DA 02—1432, 17 FCC Red 11271 (une 18, 2002) (amnouncing that Lorl Iad met ts fstmilestnes for is proposed Ka—band steitesat 126.5° EL.and 67° W.L.). See also Public Notie No. SPB—194, DA 03—3426 (aouncing that Loral had met is first milestoe fo is Ka—band satellteat1399 EL.J. * Leter ffom Thomas Tyez, Chief Satlite Divisin, ECC to John P. Stem, Counsel for Loral Space & Communications Lid.(September22, 2008). " Leter from Jobn P.Stem, Counsel for Loral Space & Communications Lid. t Fem Jarmulnck, Deputy Chicf, Saelfte DivisionIntemational Bureau, FCC (October 15, 2004 "* See, eg. Inquy in heDevelopment of Regulator Policy in Regardto Direct Broadeast Satlites, Report and Order, 90 ¥.C.£2d 676, 719 (ars. 114)(1982)(adoptin ralerequiring DBS liensees to *bepin constriction or complete contrcting fo constction"osteies within one year affer receiving constrction permi), nd MCI Communications Ca., Memorandm Opinion and Order, 2 ECC Red 233, 233 (pie. 5) (Com. Car. Bur. 1987) (MT Order) (notig thata milestone schedulis included in each dometic spoce station suthorization issued by the Commisionysee also Norts Satelite CommunicationsIn.. Memorandum Opinion and Order, 12 ECC Red 22299 (1997) (Norris Review Order; Marning Star Stelite Company,L.L Memorandm Opinion and Order, 15 FCC Red 11350 OBur.2000), af, 16 PCC Red 11350 (2001) (Morning Star Reconsideration Order). See, eg , Advanced Communications Corporation, Memorandure Opinion and Order,10 FCC Red 13337, 13338 (par 4) (IitI Bur. 1995) (Adbaneed Order), af4 11 ECC Red 3399 (1995) AdvancedReview Order)af4 Advarced Conmunications Corporation . FCC, 84 F3 1452 (D.C. Cr,1996) (unpublished order valableat 1996 WL 250460); National Exchange Satelite, Ic, Memorandm Opinin andOrder, 7 FCC Red 1990 (Com. Car, Bur 1992) (Nersa Order}; AMSC Subsidiay Corp, Memorandum Opinin and Order,8 FCC Red 4040, 4042 (parn. 13) (1993) (AMBC Order); Motorol,Inc. and Teledesic LLC, Memorandurs Opinion andOrder, 17 ECC Red 16543 (InI Bur. 2002)(Motorola/Teledesic Order, ® Space Srion Licensing Reform Order, 18 FCC Red t 10627 (paa. 173citing PandniSat Ke—Rand License Revocetion Reviow Order, 16 ECC Red at 11537—38 (pam. 12),ctingNexsa Order, 7 PCC Red at 191 are. $ MCIOrder, 2 PCC Red at 233 (paa. 5)FrstColumbia Mlestone Order, 15 ECC Red ut 15871 (pare. 11 3

Federal Communications Commission pa ces 8. Ka—hand Authorizations. While Loral met the frst milestone for Orion FS, Orion F1, and Orion FI2, it did not meet any subsequent milestones nor did it request extensions of any of the milestones, * Further, Loral did not submit a constraction contract for Orion FIO in response to the Bureau‘s September 2004 requestto do so. Rather, Loral submited a letter in whichit acknowledged that it has not been able to proceed with construction of this satelit." Consequently, Loral‘s Ka—band authorizations for the 139® W.L., 67° W.L.,15° WL.and 126.5° EL. orbitl locations are null and void. These locations and the associated 18.3—18.8,19.7—20.2,28.35—28.6, and 29.25—30.0 GHz frequency bands are available to other potential applicants. 1. orprriNc cLauses 9. Accordingly, IT IS ORDERED that Loral‘s authorization for a Ku—band satelteat the 135° WL. orbial location is DECLARED NULL and VOID and the 135° W.L. orbitallocation and associated 11.7—12.2 GHe and 14.0—14.5 GHe frequencies originally assigned to Loralare available for reassignment to potentil applicants. 10. TT 1S FURTHER ORDERED that Loral‘s authorizations to construct,launch and operate Ka— band satelites atthe 15° W.L, 139° W.L., 67° W.L, and 126.5° EL. orbital lcations are DECLARED NULL and VOID and the 135° WL., 139° W.L, 67° W.L.,and 126.5° EL. orbital locations and the associated 183—18.8, 19.7—20.2, 2835—28.6, and 29.25—30.0 GHz frequency bands originally assigned to Loralare available for reassignment to potentil applicants. 11. This Order is ssued pursuant to delegated authoriy, 47 C.F.R. § 0.261, and is effective upon release. FEDERAL CoMMUNICATIONs commISstON Heaebeedb as Chief "* See Publi Noice Report No. SPB—179, DA 02—1432, 17 CC Red 11271 (lune 18, 2002)(amouncing tht Loral hiad met ts fst milestonesfor is proposed Ka—band steliesat 1263° EL. and 67° WL). See aso Public Notce No. SPB—194, DA 03—3426 (announcing that Lorl had met is fist milestone fo ts Ka—band stllteat 139° EL.), ® Letter fom Jon P. Stem, Counse for Lorl Space & Communications Lid. to Fem Jarmulnck, Depaty Chic, Satelte Divison, Interational Bureas, FCC (October 1, 2004 a


Document Created: 2006-04-11 15:11:26
Document Modified: 2006-04-11 15:11:26
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