Attachment Pegasus-DA 011692.pd

Pegasus-DA 011692.pd

ORDER & AUTHORIZATION submitted by FCC, IB

order

2001-08-02

This document pretains to SAT-LOA-19980403-00025 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA1998040300025_840936

                                    Federal Communications Commiséion                                  DA 01—1692


                                                 Before the
                                    Federal Communications Commission
                                          Washington, D.C. 20554


In the Matter of                                          )
                                                          )
                                                          )        File Nos. 95—99—SAT—P/LA—98;
Pegasus Development Corporation                           )        Call Signs $2350—823 54
                                                          )        IBFS File Nos. SAT—LOA—19980403—00025—
                                                          )        29
Application for Authority to Construct,                   )
Launch, and Operate a Ka—Band Satellite                   )
System in the Fixed—Satellite Service                     )



                                      ORDER AND AUTHORIZATION

Adopted: August 2, 2001                                                Released: August 3, 2001

By the Chief, International Bureau:

                                          I.       INTRODUCTION


        1. By this Order, we authorize Pegasus Development Corporation ("Pegasus") to launch and
operate a satellite system in geostationary—satellite orbit to provide fixed—satellite services in the Ka—
band.‘ In a companion order, issued today, we assign Pegasus‘s satellites to the 117° W.L., 107° W.L,
43° W.L., 28° EL., and 107.5° EL. orbit locations." This will allow Pegasus an opportunity to provide
consumers access to a variety of competitive satellite communications services in a frequency band
suitable for advanced broadband, interactive services.

                                           IL.      BACKGROUND

       2. Pegasus is one of 12 applicants seeking authority to operate geostationary satellite orbit
("GSO") satellites in the second Ka—band processing round. In May 1997, the International Bureau
licensed 13 applicants to launch and operate GSO satellite systems as part of the first Ka—band processing
round ("First Round")." In October 1997, the Bureau established a second processing round ("Second
Round"), inviting interested parties to file applications on or before December 22, 1997 for consideration
in this round. The Second Round GSO licenses, and in one case, reservation of orbit locations for a non—
U.S. licensed satellite system, will enable new entrants to offer competitive services to those licensed in
the First Round and will allow First Round licensees an opportunity to expand and improve the

‘_For purposes of this Order, the terms "Ka—band" or "28 GHz band" refer to the space—to—Earth communications
(downlink) in radio frequencies at 17.7—20.2 GHz and the corresponding Earth—to space communications (uplink) in
frequencies at 27.5—30.0 GHz. We authorize to operate in a portion of these frequency bands indicated in this Order.
* In the Matter of Second Round Assignment of Geostationary Satellite Orbit Locations to Fixed Satellite Service
Space Stations in the Ka—Band, Order, DA 01—1693 (Int‘l Bur. rel. August 3, 2001) ("Second Round GSO
Assignment Order‘).
° The Bureau also licensed one non—geostationary—satellite orbit ("NGSO") Ka—band system. See Teledesic
Corporation, Applicationfor Authority to Construct, Launch and Operate a Low Earth Orbit Satellite System in the
Domestic and International Fixed Satellite Service, Order and Authorization, 12 FCC Red 3154 (Int‘l Bur. 1997).


                                      Federal Communications Commission                                  DA 01—1692


capabilities and service offerings of their licensed systems.

         3.   Pegasus is a wholly—owned subsidiary of Pegasus Communications Corporation.                     Pegasus
proposes to provide a broad range of multimedia services, consisting primarily of wide—band, high—speed
data worldwide, on a non—common carrier basis, consisting of ten technically identical satellites at five
inter—linked orbital positions." In its application, Pegasus proposes two satellites at each of the following
orbital positions: 93° W.L., 103° W.L., 69° W.L., 26.2° E.L., and 99° EL

         4. Pegasus proposes to use spectrum in the 28.35—28.6 GHz and 29.5—30.0 GHz frequency bands
for uplink (Earth—to—space) communications." Pegasus proposes to use spectrum in the 18.35—18.6 GHz
and 19.7—20.2 GHz frequency bands for downlink (space—to—Earth) communications.‘                         Pegasus also
requests authority to conduct its tracking, telemetry, and command operations during transfer—orbit in the
in the Ku—band and for on—orbit operations in the Ka—band frequencies at 29.2 GHz for command and 19.3
GHz for telemetry.© Pegasus informs the Commission that it also intends to operate inter—satellite links in
the 65—71 GHz band."

         5.   Several Second Round Ka—band applicants filed petitions to deny Pegasus‘s application."
These filings relate to three issues: choice of orbital locations, financial qualifications, and operation
consistent with the Commission‘s two—degree spacing policy."




* Application of Pegasus Development Corporation for Authority to Launch and Operate a Communications
Satellite System ("Pegasus Application"), filed December 22, 1997, at pp. 1—2. Pegasus‘s original application was
returned due to an insufficient fee being submitted. Pegasus refiled the same application on January 23, 1998 along
with a request for reinstatement of its application.

* Pegasus also supplied a range of longitudes for acceptable alternative orbit locations. Pegasus Application at pp.
7—8. Since filing its application, Pegasus has supplied the Commission with criteria for alternate orbit locations that
would meet its system‘s requirements. Pegasus requests that its orbital locations be: (a) no more than 16 degrees
apart, (b) within 14 degrees of 101°W.L., (c) no further east than 85°W.L, and (d) no further west than 115°W.L. ,
with 91°W.L. being an ideal location for its purposes. See eg., Pegasus Development Corporation Ex Parte, filed
May 18, 2001.

° Pegasus Application at pp 16—17.

‘ 1d.
8 1Id. at p. 10. See also Letter from Bruce D. Jacobs and Tony Lin, counsel to Pegasus, to Magalie Salas, Office of
the Secretary, F.C.C., captioned Clarification of Pegasus Application, dated June 22, 2001 ("Pegasus Clarification
Letter"), clarifying several of the technical parameters reflected in Pegasus‘s application.

° Id. at 2.5 Pegasus indicates that optical links may also be used. Id. at p. 9. See also Pegasus Clarification
Letter dated June 22, 2001.

‘" Motorola‘s Consolidated Petition to Deny and Comments, filed May 21, 1999 ("Motorola Petition"), Pacific
Century Group, Inc., Petition To Deny Or Condition Grant Of Authorizations, filed May 21, 1999 ("PCG Petition"),
Consolidated Petitions to Dismiss, Deny, or Defer of Hughes Communications Galaxy, Inc. and Hughes
Communications, Inc. filed May 21, 1999 ("Hughes Petition"); Comments of Loral Space and Communications,
Ltd., filed May 21, 1999, ("Loral Comments").

‘‘ All issues pertaining to the assignment of orbit locations, financial qualifications, and two—degree spacing are
addressed in the Second Round GSO Assignment Order released today.


                                                          2


                                   Federal Communications Commission                             DA 01—1692



                                           IIL.    DISCUSSION

         A.       Qualifications

        6. All applicants requesting authority to launch and operate satellite space stations must present
information sufficient to establish their legal, technical, and financial qualifications to hold a Commission
license. The rules set forth in Part 25 of the Commission‘s rules govern fixed—satellite service ("FSS")
applicants and licensees, including this application for geostationary satellite orbit GSO FSS in the Ka—
band frequencies. The Commission modified the Part 25 FSS rules in 1997 to incorporate particular
technical requirements for operations in the Ka—band frequencies." In this and other licenses issued to
Second Round FSS applicants in the Ka—band, we will generally apply all Part 25 FSS rules, specifically
noting, however, where we decide not to apply existing rules.

                  1. _     Number of Orbit Locations

       7. The Commission‘s Part 25 FSS rules include a limit on the number of orbit locations that
may initially be assigned to a qualified GSO FSS applicant." The rules also limit the number of
additional, expansion orbit locations that may be assigned to applicants with previously licensed systems
using the same frequency bands." Generally, the Commission may grant a waiver of its rules in a
particular case only if the relief requested would not undermine the policy objective of the rule in
question, and would otherwise serve the public interest."" The Commission waived the assignment limit
rules in the first Ka—band GSO FSS round because the applicants had agreed to an arrangement that
accommodated all pending applications for space stations and left room for additional assignments."" In
this Second Round, we have determined that we can also accommodate all pending requests for space
stations with room for additional entry. We therefore again waive application of the Commission rule
limiting GSO FSS orbit locations." Consequently, we will not, as some applicants request, limit the
number of assignments to Second Round applicants.

                 2.        Technical Qualifications

        8. Applicants for FSS space station authorizations must meet the technical qualification
requirements set forth in the Commission‘s Part 25 rules. These requirements are designed primarily to
implement two—degree orbital spacing between GSO FSS satellites. The Commission‘s two—degree
spacing policy, which was established in 1983, was designed to maximize the number of satellites in orbit
by ensuring that satellites in geostationary—satellite orbit can operate without causing harmful interference
to other GSO satellites located as close as two degrees."®                                                  -


° Rulemaking to Amend Parts 1, 2, 21, and 25 of the Commission‘s Rules to Redesignate the 27.5—29.5 GHz
Frequency Band, to Reallocate the 29.5—30.0 GHz Frequency Band, to Establish Rules and Policies for Local
Multipoint Distribution Service and for Fixed Satellite Services ("Ka—Band FSS Rules Order"), Third Report and
Order, FCC 97—378, 12 FCC Red 22310 (1997). Memorandum Opinion and Order, FCC O01—172 (rel. May 25,
2001) (order on petitions for clarification or reconsideration).

} 47 C.F.R. § 25.140(e).
447 C.FR. § 25.140(f).
5 WAIT Radio v. FCC, 418 F.2d 1153, 1157 (D.C. Cir. 1969).
 Ka—Band FSS Rules Order, 12 FCC Red at 22320 « 24.
‘‘ For a more detailed discussion, see Second Round GSO Assignment Order, DA 01—1693, at 17.

® Licensing of Space Stations in the Domestic Fixed—Satellite Service, 54 Rad. Reg. 24 (P&F) 577, 589 (1983)
(Two—Degree Spacing Order).


                                                Federal Communications Commission                               DA 01—1692



                   9. In the Ka—Band FSS Rules Order, the Commission adopted its proposal to extend its two—
           degree spacing policy between in—orbit satellites to space stations in the Ka—band." We believe that it
           remains in the public interest to maximize the number of satellites that can be accommodated in orbit by
           extending the Commission‘s existing two—degree GSO spacing policy to Ka—band orbital assignments in
           the Second Round. All GSO FSS li¢ensees in the Second Round will therefore be required to be two—
           degree GSO spacing compliant.

                        10. Pegasus indicates that its system design is consistent with operation in a two—degree spacing
           environment."" Our review of Pegasus‘s application finds nothing to preclude operation in a two—degree
           spacing environment. The Second Round Ka—band applications were received subsequent to the Ka—Band
           FSS Rules Order but prior to the 18 GHz Band Report and Order."‘ In both orders, rules affecting two—
           degree orbital spacing were adopted. We remind Pegasus of its continuing obligation to meet all Part 25
           rules governing system operations, including Sections 25.202 (frequencies, frequency tolerances, and
           emission limitations) and 25.210 (technical requirements for space stations in the fixed—satellite service).""
           Further, Pegasus must meet the current Ka—band power—flux density ("pfd") limits of both footnote US255
           to Section 2.106 and Section 25.208," that were adopted after Pegasus filed its application.                 As a
           condition of this authorization, Pegasus must meet these revised pfd limits.

                               3.      Financial Qualifications

                        11. The Commission‘s FSS rules require that an applicant for a new fixed—satellite system
           possess sufficient financial resources to cover the construction, launch, and first—year operating costs of
           each proposed satellite.""         We have waived these rules, however, in those cases where we can
           accommodate all pending applications. The Commission‘s financial qualification rules are designed to
           prevent under—capitalized licensees from holding valuable orbit spectrum resources to the exclusion of
           others while they attempt to arrange financing to construct and launch the licensed system." Where all
           applicants can be accommodated, however, granting a license to an under—capitalized applicant will not
           prevent another applicant from going forward."" In addition, there is a pro—competition public interest
           benefit in licensing all applicants, if possible. We waived the financial qualification rules for the First
           Round applicants because all of those applicants could be accommodated in the available orbital locations
           and there were additional orbital locations available for future entrants.""‘ In the accompanying Second


             Ka—Band FSS Rules Order, 12 FCC Red at 22320 « 23.

           * Pegasus Application at « 2.6.1

           *\ Redesignation of the 17.7—19.7 GHz Frequency Band, Blanket Licensing ofSatellite Earth Stations in the 17.7—20.2
           GHz and 27.5—30.0 GHz Frequency Bands, and the Allocation ofAdditional Spectrumin the 17.3—17.8 GHz and 24.75—
           25.25 GHz Frequency Bands for Broadcast Satellite—Service Use ("18 GHz Band Report and Order"), FCC 00—212,
           15 FCC Red 13,430 (2000).
           * 47 C.F.R. §§ 25.202 and 25.210.
           * 47 C.F.R. §§ 2.106 $255 and 25.208.
           * 47 C.FR. § 25.140(b)—(e).

           * See generally Amendment of the Commission‘s Rules to Establish Rules and Policies Pertaining to a Mobile
           Satellite Service in the 1610—1626/2483.5—2500 MHz Frequency Bands, Report and Order, 9 FCC Red 5936, 5948 [I
           26 (1994) ("Big LEO Report and Order").
           26161.
                                                   a—


           * See Ka—Band FSS Rules Order, 12 FCC Red at 22318       18.




2   knam    t ues 225


                                    Federal Communications Commission                                 DA 01—1692



Round GSO Assignment Order, we also determine that we can accommodate all pending Second Round
applicants‘ requests for GSO FSS space stations in the Ka—band, and still have some orbital locations
available for future entrants. We therefore waive the financial qualification requirements for Second
Round applicants. Consequently, it is unnecessary to rule on Pegasus‘s financial qualifications. The
petitions to deny filed by Motorola and Hughes raising issues regarding Pegasus‘s financial qualifications
are therefore moot.

           B.       Spectrum Assignments

                    1.      Service Links

        12. In the 28 GHz Band First Report and Order, the Commission adopted a band segmentation
plan that designated one gigahertz of spectrum in each transmission direction for GSO FSS Ka—band
systems."" For uplink (Earth—to—space) transmissions, the Commission designated 250 megahertz of
spectrum between 28.35 and 28.6 GHz, 250 megahertz of spectrum between 29.25 and 29.5 GHz (shared
on a co—primary basis with non—geostationary satellite orbit, mobile satellite service feeder links), and 500
megahertz of spectrum between 29.5 and 30.0 GHz for GSO FSS operations. For downlink (space—to—
Earth) communications the Commission designated 1100 megahertz of spectrum between 17.7 and 18.8
GHz for GSO FSS operations (shared on a co—primary basis with terrestrial fixed—service) and 500
megahertz of spectrum between 19.7 and 20.2 GHz for primary GSO FSS operations. The Commission
later refined the downlink plan for the frequency band between 17.7 and 18.8 GHz, by designating 280
megahertz of spectrum between 18.3 and 18.58 GHz for co—primary GSO FSS and terrestrial—fixed
operations and 220 megahertz of spectrum between 18.58 and 18.8 GHz for primary GSO FSS
       +        2
opera’uons.‘9

         13. In its application, Pegasus proposes to use 750 megahertz of spectrum at the 28.35—28.6 GHz
and 29.5—30.0 GHz frequency bands for its service uplinks."" We grant this request consistent with the 28
GHz band plan, and we will therefore authorize Pegasus to operate in these frequencies, subject to the
sharing rules adopted in the 28 GHz Band First Report and Order.                      j

        14. In its application, Pegasus proposes to use 750 megahertz of spectrum at the 18.35—18.6 GHz
and 19.7—20.2 GHz frequency bands for its service downlink bands. We grant this request consistent with
the 18 GHz band plan."‘ Specifically, we authorize Pegasus to operate its service downlinks in 750
megahertz of spectrum in the 18.35—18.6 GHz and 19.7—20.2 GHz frequency bands. Because the 230


28 Rulemaking to Amend Parts 1, 2, 21, and 25 of the Commission‘s Rules to Redesignate the 27.5—29.5 GHz
Frequency Band, to Reallocate the 29.5—30.0 GHz Frequency Band, to Establish Rules and Policies for Local
Multipoint Distribution Service and for Fixed Satellite Services, First Report and Order and Fourth Notice of
proposed Rulemaking, FCC 96—311, 11 FCC Red 19005 (1996) ("28 GHz Band First Report and Order").

*° Redesignation of the 17.7—19.7 GHz Frequency Band, Blanket Licensing ofSatellite Earth Stations in the 17.7—20.2
GHz and 27.5—30.0 GHz Frequency Bands, and the Allocation ofAdditional Spectrum in the 17.3—17.8 GHz and 24.75—
25.25 GHz Frequency Bands for Broadcast Satellite—Service Use (18 GHz Band Report and Order), FCC 00—212, 15
FCC Red 13430 (rel. June 22, 2000). Stations operating in primary services are protected against interference from
stations of "secondary" services. Moreover, stations operating in a secondary service cannot claim protection from
harmful interference from stations of a primary service. "Co—Primary" services have equal rights to operate in
particular frequencies. See 47 C.F.R §§ 2.104(d) and 2.105(c).

°° Pegasus Application at p. 17.

* See 28 GHz Band First Report and Order, 11 FCC Red 19005, as modified in 18 GHz Band Report and Order, 15
FCC Red at 13443, 28.


                                       Federal Communications Commission                                DA 01—1692


megahertz of spectrum at 18.35—18.58 GHz is to be shared on a co—primary basis with terrestrial—fixed
services, GSO FSS operations in this band must be coordinated with these terrestrial operations.

        15. In addition, Pegasus must coordinate with U.S. Government systems in accordance with
footnote US334 to the Table of Frequency Allocations."" This footnote requires coordination of
commercial systems with U.S. Government GSO and NGSO FSS systems that are presently operating
throughout the 17.8—20.2 GHz frequency band. These Government systems operate in accordance with
the power flux—density limits contained in the current International Telecommunication Union ("ITU")
Radio Regulations."" Pegasus must also comply with Footnote US255 to the Table of Frequency
Allocations that contains power flux—density limits to protect the Earth exploration satellite service
(passive) for the 18.6—18.8 GHz band."

                   2.       Inter—Satellite Links

        16. Pegasus proposes to use inter—satellite links ("ISLs") between adjacent satellites to provide
connectivity between coverage regions of different satellite orbit locations."" This will avoid the need for
double—hop connectivity and increase system level reliability. Pegasus‘s proposed satellite system will
consist of ten inter—connected satellites located at five different orbital locations (two satellites at each of
the five orbital locations)."" Each satellite will be equipped with 30 transponders®‘ for its service links
resulting in 30 beams in each direction.38 Each beam will support a data rate as high as 65 Mbps."" With
the use of dual polarization, each satellite within the system will be capable of re—using the same
spectrum. Pegasus proposes to use 2000 megahertz of spectrum within the 65.0—71.0 GHz band for ISL
communications"" Based on Pegasus representations, we find that it has demonstrated a need for 2000
megahertz of ISL spectrum. Sharing studies done by the First Round Ka—Band licensees concluded that
those applicants could share the ISL spectrum with minimal constraints. We expect the same conclusion

32 See 47 C.F.R. § 2.106 US334.

* See 18 GHz Report and Order, 15 FCC Red at 13473 § 90. The power flux—density limits in the 18.3—18.6 GHz
band are —115/—105 dB (W/m*) in any one megahertz band, depending upon the angle of arrival. There are currently
no power flux—density limits in the 19.7—20.2 GHz band. See Letter from William T. Hatch, National
Telecommunications and Information Administration, to Dale Hatfield, Chief, Office of Engineering and
Technology, Federal Communications Commission (March 29, 2000).

* 47 C.F.R Section 2.106 US 255 (as revised in the 18 GHz Band Report and Order, 15 FCC Red at 13489) states:
In addition to any other applicable limits, the power flux—density across the 200 MHz band 18.6—18.8 GHz produced
at the surface of the Earth by emissions from a space station under assumed free—space propagation conditions shall
not exceed —95db(W/m2) for all angles of arrival. This limit may be exceeded by up to 3 dB for no more than 5% of
the time.

* ISLs are communication links between in—orbit satellites. ISLs operate in spectrum allocated to the inter—satellite
service. See International Telecommunication Union Radio Regulation S1.22. Pegasus advises the Commission
that it may also use optical links. Pegasus Application at p. 9.

38 See Pegasus Application at p. 2.

*‘ A transponder is a combination of receivers, filters, frequency converters, and transmitters to form a signal
repeater.
38 See Pegasus Application at p. 27.

* See Pegasus Clarification Letter dated June 22, 2001
401d.


                                    Federal Communications Commission                                  DA 01—1692


to be reached by Second Round applicants.41          Consequently, we will authorize Pegasus to conduct ISL
operations in 2000 megahertz of spectrum within the 65.0—71.0 GHz band, subject to coordination with
the First and Second Round ISL licensees, and with U.S. Government (non—ISL) operations through
National Telecommunications and Information Administration ("NTIA")‘s Interdepartment Radio
Advisory Committee‘s Frequency Assignment Subcommittee. Within 30 days after the release of this
Order, Pegasus must inform the Commission which specific spectrum it has chosen for ISL operations.

                  3.       Tracking, Telemetry and Command

         17. Under the Commission‘s rules, tracking, telemetry, and command ("TT&C") operations may
be provided at the edges of the frequency bands in which the particular satellite will be providing
service."" Pegasus proposes to conduct its on orbit TT&C operations in two megahertz of spectrum each
for both command and telemetry at the upper and lower edges of the Ka—band at 29.2 GHz and 19.3 GHz,
respectively."" We authorize Pegasus to conduct TT&C operations in these service bands.

         18. Pegasus also requests authority to conduct TT&C operations outside its Ka—band service
frequencies. Pegasus proposes to conduct its TT&C operations during transfer orbit maneuvers in the Ku—
band GHz in 2 megahertz of spectrum each for both command and telemetry at 14.0—14.5 GHz and 11.7—
12.2 GHz bands, respectively.44 All of these requested operations are within the Ku—band frequencies,
which are not the system‘s service band. Thus, the request is not consistent with Section 25.202 of the
rules."   As the Commission recently indicated, this rule serves the valid purpose of simplifying
coordination among satellites at adjacent orbital locations, and promoting efficient spectrum use."
Pegasus has not provided a showing to demonstrate that waiver of Section 25.202(g) for TT&C
operations outside its service band would be consistent with the basic purpose of the rule, or that the
public interest otherwise requires a waiver. Thus we deny Pegasus‘s request.



         C.       Regulatory Treatment

        19. In the DISCO I Order, the Commission determined that all fixed—satellite service operators in
the C—band and Ku—band could elect to operate on a common carrier or non—common carrier basis."" The
Commission extended this treatment to satellite operators in the Ka—band in the Ka—Band FSS Rules

*‘ For a detailed discussion of spectrum available for ISL operations, see Amendment of Part 2 of the Commission‘s
Rules to Allocate Additional Spectrum to the Inter—Satellite, Fixed, and Mobile Services, ET Docket No. 99—261,
Report and Order, FCC 00—442, at 45 (rel. Dec. 22, 2000).

* 47 C.F.R § 25.202(g).
* Pegasus Application at p. 2 and Figure 2.6. See also Pegasus Clarification Letter, dated June 22, 2001.

*4 14.

* See Amendment of the Commission‘s Rules With Regard to the 3650—3700 MHz Government Transfer Band, FCC
00—363 15 FCC Red 20488, 20538 [ 129 (2000) (the rule "effectively limits FSS operators to operating TT&C links
in the same frequency bands as their FSS operations").

* Id. at 4 129—130.

*‘ See In the Matter of Amendment to the Commission‘s Regulatory Policies Governing Domestic Fixed Satellites
and Separate International Satellite Systems and DBSC Petition for Declaratory Rulemaking Regarding the Use of
Transponders to Provide International DBS Service, 11 FCC Red 2429, 2436 (1996) (DISCO I Order).


                                           Federal Communications Commission                                    DA 01—1692



     Order." Consequently, Second Round Ka—band applicants may elect their regulatory status. Pegasus has
     elected to operate on a non—common carrier basis,"" and we will authorize it to do so.

                 D.    License Conditions

                        1.       Milestone Schedule

             20. As in all other satellite services, all Second Round Ka—band licensees will be required to
     adhere to a strict timetable for system implementation. This ensures that licensees are building their
     systems in a timely manner and that the orbit—spectrum resource is not being held by licensees unable or
     unwilling to proceed with their plans. The implementation schedules for GSO FSS systems in the Ka—
     band will generally track the schedules imposed in other satellite services.

               21. Specifically, Section 25.145(f) of the Commission‘s rules requires Ka—band GSO FSS
     licensees "[1] to begin construction of [their] first satellite within one year of grant, [2] to begin
     construction of the remainder within two years of grant, [3] to launch at least one satellite into each of
     [their] assigned orbit locations within five years of grant, and [4] to launch the remainder of [their]
     satellites by the date required by the International Telecommunication Union to assure international
     recognition and protection of those satellites.""" Failure to meet any of these construction milestones will
     render those satellite authorizations null and void without further action by the Commission.

             22. The dates by which Pegasus‘s satellites must be "brought into use" to protect the date priority
     of the U.S. ITU filings for its service links at these orbital locations are in March 9, 2003 — with a two—
     year extension available under certain circumstances, July 2, 2005, July 16, 2005, and July 23, 2005."‘

     * Ka—Band FSS Rules Order, 12 FCC Red at 22333—34 [« 58—60.

     * Pegasus Application at pp. 44—45.

     5 47 C.FR. § 25.145(f). See Ka—Band FSS Rules Order, 12 FCC Red at 22334—35 { 61 & n.77.

     *‘ Specifically, the satellite at 117° W.L. must be brought into use by July 2, 2005; the satelilite at 107° W.L. must be
     brought into use by March 9, 2003, the satellite at 43° W.L. must be brought into use by July 23, 2005, the satellite
     at 28° E.L. must be brought    into use by July 2, 2005, and the satellite at 107.5° E.L. must be brought into use by
     July 16, 2005. With regard     to the 107° W.L. orbital location, ITU Radio Regulations require that the satellite be
     "brought—into—use" (BIU) no    later than five years after ITU receipt of advance publication information (ITU Radio
     Regulations Article $11.44).    The ITU may extend the BIU date by two years under the conditions specified in ITU
     Radio Regulations Articles S11.44B through S$11.441 (launch failure; launch delays due to circumstances outside the
     control of the administration or operator; delays caused by modifications of satellite design necessary to reach
     coordination agreements; problems in meeting the satellite design specifications; delays in reaching coordination
     after a request for ITU Radiocommunication Bureau assistance; financial circumstances outside the control of the
     administration or operator; and force majeure). In cases where the two year extension is necessary, the licensee
     must inform the Commission, in writing, six months before the end of the five year period so that the Commission
     can timely inform the ITU of the extension request. Should Pegasus indeed wish to extend its milestone at the 107°
     W.L. orbital location to 2005, it must provide the Commission, six months before March 9, 2003, information
     demonstrating good cause to request an ITU extension on the grounds specified in the ITU Radio Regulations. As
     to Pegasus‘s remaining orbital location assignments, ITU Radio Regulations require that these satellites be brought
     into use at the ITU no later than nine years from the date the ITU publishes advance publication information. The
     ITU initially required that these locations be brought into use within six years after receipt of their advance
     publication information, with an option to extend that date by an additional three years upon request. Since WRC
     2000, satellite networks at orbit locations whose advance publication information was received by the ITU before
     November 22, 1997 have been automatically granted the optional three—year extension. Because the remaining orbit
     locations assigned to Pegasus fall in this category, their June and July 2005 bringing into use dates cannot be further
     extended.




sn   cuen 2s


                                                  Federal Communications Commission                               DA 01—1692



           We recognize that, in this case, comparing these ITU "bringing into use" dates to our launch milestones
           has the incongruous result of our rules requiring Pegasus to launch its satellites into each of its assigned
           orbit locations by August 2006, {.e., after the dates by which Pegasus is required to bring its satellite
           locations into use to protect the date priority of the U.S. ITU filings for its orbital locations. To address
           this misalignment, we require Pegasus to launch its satellites into each licensed orbit location and "bring
           into use" all of the frequency assignments it plans to operate at that orbit location by the ITU "bringing
           into use" date. At present, that date at the 107° W.L. orbital location is March 9, 2003. Should the ITU
           grant a two—year extension of that date, the launch milestone for that licensed orbit location will
           automatically change to the new ITU "bringing into use" date without further Commission action. This
           will protect the United States filings at these locations and thus, Pegasus‘s ability to coordinate and gain
           international recognition for the satellites at each of its assigned orbit locations. Moreover, we do not
           anticipate that meeting this milestone will be unduly difficult. Under standard industry practice, it
           generally takes two to three years to construct and launch a satellite."" Pegasus will have nearly four
           years in which to launch its satellites into their assigned locations by the ITU "bringing into use" dates,
           assuming it receives an extension.

                                   2.     Reporting Requirements

                          23. We will follow the Part 25 rules for reporting requirements for FSS systems, including an
           annual report describing the status of satellite construction and anticipated launch dates, and a detailed
           description of the use made of each transponder on each of the in—orbit satellites."" Pegasus must file this
           report on June 30 of each year, containing information current as of May 31 of that year.

                                   3.     International Coordination

                          24. In general, we will follow the applicable advance—publication, coordination, and notification
           procedures as set forth in the ITU Radio Regulations in coordinating Pegasus‘s satellites with other
           affected administrations.          We will also require that Pegasus provide the Commission with the
           international coordination information required by our rules."" The orbit locations assigned today may be
           co—located or within two degrees of a non—U.S.—licensed satellite filing having date priority in its ITU
           filings. Under these circumstances, U.S. licensees assigned to these locations are reminded that they take
           these licenses subject to the outcome of the international coordination process, and that the Commission
           is not responsible for the success or failure of the required international coordination.

                                                           IV.     CONCLUSION

                          25. Upon review of Pegasus‘s application, we find that Pegasus is qualified to be a Commission
           licensee and that, pursuant to Section 309 of the Communications Act of 1934, as amended, 47 U.S.C.
           §309, grant of this application will serve the public interest, convenience, and necessity. As specified in
           the Second Round GSO Assignment Order, we have assigned Pegasus to the 117° W.L, 107° W.L., 43°
           W.L., 28° E.L, and 107.5° E.L. orbital locations.

                                                     vV.         ORDERING CLAUSES

                          26. IT   IS   ORDERED     that Application File Nos.          SAT—LOA—19980403—00025—29 ARE


           * See, e.g., In the Matter of the Application of Comsat Corp., 12 FCC Red 12059, 12075 « 33 n. 68 (1997) ("It has
           been our experience that it takes an average of two years to construct and launch a satellite....").

           * See 47 C.F.R. § 25.210(0(1)(2)(3).

           * See 47 C.F.R. § 25.111(b).



2   enam   t ud 22 iths


                                   Federal Communications Commission                             DA 01—1692



GRANTED, as discussed above, and Pegasus Development Corporation IS AUTHORIZED to launch and
operate ten GSO FSS satellites, to provide fixed—satellite service in the 18.35—18.8, 19.7—20.2, 28.35—28.6,
and 29.25—30.0 GHz frequency bands at the 117° W.L, 107° W.L., 43° W.L., 28° E.L., and 107.5° E.L.
orbital locations.

       27. IT IS FURTHER ORDERED that Pegasus Development Corporation‘s authorization shall
become NULL and VOID with no further action on the Commission‘s part in the event the space station
is not constructed, launched, and placed into operation in accordance with the technical parameters and
terms and conditions of this authorization by the following dates:

         Construction Commenced                                             Launch and Operate
First satellite           August 2002                        117° W.L. Orbit Location       July 2, 2005    _
Remaining satellites      August 2003                        107° W.L. Orbit Location       March 9, 2003"
                                                            43° W.L. Orbit Location         July 23, 2005
                                                            28° E.L. Orbit Location         July 2, 2005
                                                             107.5° E.L. Orbit Location     July 16, 2005

       28. IT IS FURTHER ORDERED that Pegasus Development Corporation must coordinate its Ka—
band downlink operations with the U.S. Government systems, including Government operations to earth
stations in foreign countries, in accordance with footnote US334 to the Table of Frequency Allocations,
47 C.F.R. § 2.106, and in accordance with the 18 GHz Report and Order, 15 FCC Red at 13473          90.

         29. IT IS FURTHER ORDERED that Pegasus Development Corporation, within 30 days from
the date of the release of this order and authorization, must inform the Commission which specific
spectrum in the 65—71 GHz band it has chosen for its inter—satellite link operations, and must coordinate
its inter—satellite link operations in this chosen spectrum through the National Telecommunications and
Information Administration‘s Interdepartment Radio Advisory Committee‘s Frequency Assignment
Subcommittee. Pegasus must also coordinate its inter—satellite link operations with all other licensed non—
government inter—satellite link operations in these frequency bands.

         30. IT IS FURTHER ORDERED THAT Pegasus Development Corporation shall conduct its
operations pursuant to this authorization in a manner consistent with the power flux—density requirements
of footnote US255 to the Table of Frequency Allocations, 47 C.F.R. § 2.106, and 47 C.F.R. § 25.208, of
the Commission‘s Rules.

         31. IT IS FURTHER ORDERED that the license term for each space station is ten years and will
begin to run on the date Pegasus Development Corporation certifies to the Commission that the
authorized satellite has been successfully placed into orbit and the operations fully conform to the terms
and conditions of this authorization.

        32. IT IS FURTHER ORDERED that Pegasus Development Corporation will prepare any
necessary submissions to the International Telecommunication Union and to affected administrations for
the completion of the appropriate coordination and notification obligations for these space stations in
accordance with the International Telecommunication Union Radio Regulations We also remind
Pegasus Development Corporation that no protection from interference caused by radio stations
authorized by other administrations is guaranteed unless coordination procedures are timely completed or,
with respect to individual administrations, by successfully completing coordination agreements. Any
radio station authorization for which coordination has not been completed may be subject to additional

                                       «

* If the International Telecommunication Union grants a two—year extension of this date, this milestone will
automatically change to March 9, 2005 without further Commission action.

                                                      10


                                 Federal Communications Commission                              DA 01—1692



terms and conditions as required to effect coordination of the frequency assignments of other
administrations, 47 C.F.R. § 25.111(b).

        33. IT IS FURTHER ORDERED that the temporary assignment of any orbital location to
Pegasus Development Corporation is subject to change by summary order of the Commission on 30 days‘
notice and does not confer any permanent right to use the orbit and spectrum. Neither this authorization
nor any right granted by this authorization, shall be transferred, assigned or disposed of in any manner,
voluntarily or involuntarily, or by transfer of control of any corporation holding this authorization, to any
person except upon application to the Commission and upon a finding by the Commission that the public
interest, convenience and necessity will be served thereby.

         34. IT IS FURTHER ORDERED that Pegasus Development Corporation is afforded thirty days
from the date of the release of this order and authorization to decline this authorization as conditioned.
Failure to respond within that period will constitute formal acceptance of the authorization as conditioned.

        35. This Order is issued pursuant to Section 0.261 of the Commission‘s rule on delegations of
authority, 47 C.F.R. § 0.261, and is effective upon release. Petitions for reconsideration under Section
1.106 or applications for review under Section 1.115 of the Commission‘s rules, 47 C.F.R. §§ 1.106,
1.115, may be filed within 30 days of the date of public notice of this Order (see 47 C.F.R. § 1.4(b)(2)).


                                                         FEDERAL COMMUNICATIONS COMMISSION



                                                                                            Donald Abelson
                                                                                Chief, International Bureau




                                                    11



Document Created: 2019-04-09 07:40:01
Document Modified: 2019-04-09 07:40:01

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