Attachment ex parte

This document pretains to SAT-AMD-20031118-00332 for Amended Filing on a Satellite Space Stations filing.

IBFS_SATAMD2003111800332_415585

                                                           FINTERNATIONAL

                                                           ESERVICES
                                                             SATELLITE
                                                                                                  jA:;       1 0 ‘2005
                                                             January 6,2005


                      Via Federal Express                            9RIGINAL
                      Ms. Marlene H. Dortch, Secretary
                      Federal Communications Commission
                      445 12th Street, S.W.
                                                                                  EX PARTE OR LATE FILED
                      Washington, D.C. 20554

                                  Re:    Mobile Satellite Ventures Subsidiary LLC
                                         Ex Parte Presentation
                                         IB Docket No. 01-185
                                         File No. SAT-MOD-20031118-00333 (ATC application)
                                  File No. SAT-AMD-20031118-00332 (ATC application)
                                  File No. SES-MOD-20031118-01879(ATC application)

                      Dear Ms. Dortch:

                              International Satellite Services, Inc. (ISS) hereby urges the Commission to afford
                      L-band Mobile Satellite Service (“MSS”) operators greater flexibility in their provision
                      of an Ancillary Terrestrial Component (“ATC”), as requested by Mobile Satellite
                      Ventures LP (“MSV”) in the above-captioned proceedings. The increased flexibility
                      requested by MSV will ensure that next-generation MSS systems in the L-band can
                      finally achieve the ubiquitous coverage, capacity, and economies of scale needed for a
                      time consumer service. In contrast, the restrictions on L-band ATC advocated by
                      Inmarsat Ventures plc (“Inmarsat”) will only ensure that MSS forever remains a niche
                      service catering to price-insensitive users operating in remote areas.

                              ISS has provided MSS since 1996 using the L-band satellites of MSV/ Mobile
                      Satellite Ventures (Canada) Inc. We currently provide voice and data services to end
                      user customers throughout the United States and the Caribbean. Our customers base
                      spans a variety of vertical markets including mining and exploration, first responders, law
                      enforccmeiit agencies at virtually all levels of government, military, park forest rangers,
                      public utilities, sports and recreation, shipping and fishing industries as well as
                      recreational boating, just to name a few.

                               While ISS has developed a viable business using current-generation MSS
                      satellites to serve niche markets, we are excited about the future potential for MSS when
                      supplemented with .4TC. To date, MSS has been characterized by suitcase-sized user
                      terminals, limited coverage, low data rates, and equipment and service prices far
                     exceeding that offered by terrestrial wireless operators. Because the market for this type
                     of service is small, the economies of scale needed to drive down equipment and service
                     prices have not developed. With ATC, however, MSS has the potential to evolve into a
                     true consumer service. ATC will provide the coverage, capacity, and economies of scale
                     needed to bring MSS equipment and service prices to affordable levels. Moreover, by


1004 Collier Center Way Suite 205 Naples, Florida 341 10       www.issi-usnet         T: 239.598.2241    F   239.598.9343 TF: 888.51 1.3403


overcoming satellite signal blockage in urban areas, ATC *ll allow MSS to become a
truly ubiquitous service, allowing service providers to market their products to customers
not only in rural and remote areas but to customers in the most densely populated urban
cores as well.

        It comes as no surprise to ISS that Inmarsat opposes MSV’s efforts to make MSS
into a more attractive service. If MSV does not succeed in its development of a next-
generation MSS system, Inmarsat will have a monopoly in the L-band MSS market in the
United States. Competition is always healthy. With no competitive pressure to
discipline Inmarsat’s rates, terms, and conditions, L-band MSS service providers will
struggle to survive, resulting in bankruptcies, job losses, and a step backward in the
slowly rebounding telecommunications sector. Moreover, with only Inmarsat left
standing, the prospects for innovation in L-band MSS technology will cease to exist.
L-band MSS will remain stuck in time as a service useful for only a handful of users in
remote areas.

        ISS understands that Inmarsat has used concerns of potential interference to
oppose and delay MSV’s development of a next-generation MSS system. We believe
these concerns are overstated and speculative. For example, our customers will continue
to use their satellite-only terminals after MSV deploys ATC, but we are not concerned
that these terminals will experience interference from MSV’s ATC base stations. This is
because our customers do not use their satellite-only terminals in areas where MSV is
expected to deploy base stations to overcome satellite signal blockage. By definition, if
MSV needs to deploy an ATC base station to overcome signal blockage, our satellite-
only terminals will not work effectively in those areas.

        The Commission is at a crossroads in the development of MSS technology.
International Satellite Services, Inc. urges the Commission to follow the path of
innovation and better consumer service by adopting MSV’s proposals for increased
flexibility for ATC in the L-band.




                                                                           Operations
                                                     International Satellite Services, Inc.



Document Created: 2005-01-21 12:17:55
Document Modified: 2005-01-21 12:17:55

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