Attachment ex parte

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

IBFS_SATAMD2003111800332_415603

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                                                                          EX PARTE OR UTE FILED



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                                                                                     45365 Vintage Park Plaza
                                                                                                     Suite 210
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Via Federal Express                                         7RIGINAL
Ms. Marlene H. Dortch, Secretary
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554

        Re:       Mobile Satellite Ventures Subsidiary LLC
                  Ex Parte Presentation
                  IB Docket No. 01-185

                File No. SAT-MOD-2003111840333 (ATC application)
        File No. SAT-AMD-2003111840332(ATC application)
        File No. SES-MOD-2003111841879(ATC application)

Dear Ms. Dortch:

           SkyBitz, Inc. hereby urges the Commission to afford L-band Mobile Satellite Service (“MSS“)
operators greater flexibillty 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 true consumer
service. In contrast, the restrictions on L-band ATC advocated by lnmarsat Ventures plc (“lnmarsar)
will only ensure that MSS forever remains a niche service catering to price-insensitive users operating
in remote areas.

          SkyBitz, Inc. has provided MSS since 2002 using the L-band satellites of MSV and Mobile
Satellite Ventures (Canada) Inc. SkyBitz, Inc. currently provides information management and asset
monitoring services to end user customers throughout the United States and Canada. SkyE3ii has
developed the patented Global Locating System (GLS) Platform to give transportation customers total
mobile asset visibility via satellite with extremely low power consumption. This cost-effective technology
provides visibility to some of the most challenging areas of the supply chain, which allows customers to
lower operating costs and improve their service offerings.

          While SkyBitz, Inc. has developed a viable business using currentgeneration MSS satellites to
 serve niche markets, we are excited about the future potential for MSS when supplemented with ATC.
 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 overcoming
satellite signal blockage in urban areas, ATC will 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.

          SkyBitz, Inc. understands that lnmarsat is opposing MSV’s efforts to make MSS into a more
attractive service. This comes as no surprise to SkyBitz, Inc. If MSV does not succeed in its
development of a next-generation MSS system, lnmarsat will have a monopoly in the L-band MSS

Phone: 703-318-8100                        www.skvbitz.com                           Fax: 703-478-2323
                                                                                    NO.of C ies rec’d
                                                                                       ABCOBE
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January 6,2005
Page 2 of 2

market in the United States. 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
lnmarsat 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.

        SkyBitz, Inc. understands that lnmarsat has used concerns of potential interference to oppose
and delay MSV's development of a next-generation MSS system. 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. SkyBitz, 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.


Sincerely,



Richard L. Burtner
CEO



Document Created: 2005-01-21 12:17:23
Document Modified: 2005-01-21 12:17:23

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