Attachment DA 06-1220

DA 06-1220

ORDER ON RECONSIDERATION submitted by IB, FCC

DA 06-1220

2006-06-07

This document pretains to SAT-LOA-20020322-00033 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA2002032200033_504955

                                   Federal Communications Commission                            DA 064220



                                                Before the
                                   Federal Communications Commission
                                         Washington, D.C., 20564

 In the Matter of                                       )
                                                        )
 Application of Pegasus Development DBS                 )       File Nos. SAT—LOA—20020322—00032
 Corporation for Authority to Construct, Launch,        )                 sam—LoA—20020322.00033
 and Operate a System of Direct Broadcast               )                 sAT—LOA—20020322—00034
 Sarelites in the Broadcasting Satllte Service          )
                                                        )
                                                        )
                                                        )


                                         Order on Reconsideration
    Adopted: June 6,2006                                             Released: June7, 2006
By the Deputy Chict Itermational Bureau:
1        INTRODUCTION
         1. In this Order, we deny Pegasus Development DBS Corporation‘s (Pegasus‘s) petiion for
reconsideration‘ of the Intermational Bureau‘s (Bureau) December 7, 2005 dismissal of is applications for
three 17 GHz satelite space stations." The Bureau dismissed the appliations, without prejudice to
refiling, because Pegasus faled to amend its applications to include an orbital debris mitigation plan,as
required by the Commission‘s rles." In ts Petiion, Pegasus suggests that the Bureau should waive the
orbital debris mitiation plan amendment requirement and requests the Bureau to reinstte. the
applications mure pro turc. We find that Pegasus has not justified a waiver ofthe Commission‘s rules
and we uphold our previous decision.
1.      BACKGROUND
       2. On March 22, 2002, Pegasus filed an application for three satellite space stations at 110°
WL, 101° W.L, and 91° W.L. in the Broadeasting Satelite Service (BSS) using the 173—17.8 GHz
(downlink) and 24.75—25.25 GHz (uplink) bands." On June 21, 2004, the Commission released a Second
Report and Order in ts orbital debris mitigation proceeding.*. In the Second Report and Order, the
‘ Pegasus Development DBS Corpontion, Petion for Reconsidertion, Aled Janvary 6, 2006 (Pegasus Ption).
* Appleation ofPegasus Development DBS Corporation for Authoriy to Construct, Launchand Operate System
of Direct Broadcast Stelits in t Broadcasting Satelite Service, Fle Nos, SAT—LOA—20020322—000323,24,
e also Public Noice, DA 053152 (December7, 2008) (disnissing this appliation) (Dismissol Public Notio.
* See Miiation of Orbial Dcbris, Second Report and Order,1B Docket No. 02—54, 19 ECC Red 11567 (2000)
(SecondReport and Order)
* Pegasus Peiion t 1.
* For prposes othis Order, we referto these bands a the "Ka—band."
* See generally Second Report and Order, 19 FCC Red 11567. Orbial debeis consiss ofarificial objects orbitng
the Earth that arenotfunctional spacecraf. 19 FCC Red t 11568 (para. 2). The Commision found tat mtigation
                                                                                               (contiued..)


                                    Federal Communications Commission                             DA 061220


  Commission, among other things, adopted a requirement that applicants disclose their orbital debris
  mitigation plans as part ofthe technicalinformation sbout space station networks submitted pursuant to
  Section 25.114 of the Commission‘s rules." The Commission also stated that partiesthat have requests
  for approval of space stitions pending before the Commission shallhave 30 days following publication of
  the Second Report and Order in the Federal Registr in which to amend their requests by filing orbitl
  debris mitigation plans.* ‘The deadline to file amendments was subsequently changed to 30 days aftr the
  effective date of the orbial debris disclosure rules"
           3. Notice of the effective date othe orbialdebris disclosure rules was published in the Federal
 Register on October 12, 2005." On October 13, 2005, the Commission released a public notice stating
 that the Commission‘s orbital debris disclosure rules would take effect on Ostober 19, 2005.""— That
 public notice further stated thatapplications that were pending as ofOctober 19, 2008 were required to be
 amended by November 18, 2005 to include an orbital debri plan or would be dismissed as incomplete."
          4.. Pegasus did not file the required amendment by November 18, 2005." Pegasus claims that
 on December 2, 2005, it verbally notified the Commission that, due to an oversight, it had failed to file
 the plan, it was in the process of preparing the plan, and it would request a waiver of the November
 deadline." On December 7, 2005, the Bureau released a public notice dismissing Pegasus‘s three Ka—
 band BSS applications without prejudiceto refiing."" On January 6, 2006, Pegasus filed a petition for
 reconsideration ofthe Bureau‘s action."


(..continued from previous page)
oforbital debrs serves thepublic iterest by preservingthe United Sites® continued affordabl accessto space, the
continued provision of relable US.space—based srvices— including communications and remote sensing stelite
services for U;S. commercial, povermment, and homeland securty purposes as wollasth continued safity of
persons and property in space and on the surfce ofthe Earth. Second Report and Order,19 ECC Red at 11568
(pas. 12.
" Second Report and Onter, 19 ECC Red at 11576 (para.16). "The Commission found thatdisclosure of debris
mitigition plans allows the Commission and potentaly afected third partesto evaluate debris mitigation plans
priot t istuance of Commission approval for communications activts in spaceand may also aid in the wider
isernination of debris mitiation techniques. Without such diclosure, the Commisson is denied th opportunty
to ascetain whether operitrsare in fct considering and adopting reasonable debrs mitigation practces. Second
Report and Order, 19 FCC Red at11576 (par. 16). The required contets ofan orbtal debri mitiation plan for
filngs subject to Part 25 of the Commision‘s riles are codified in Section 25.114(&)(14). See 47 CFR. §
rsikd4.
* SecondReport and Order, 19 CC Red at11577 (prs. 20)
* Mitigation ofOrbital Detris, Eatum, 19 FCC Red 16233 (Aug24, 2004
" Miigation ofOrbil Debis, 70 ¥ed. Reg. S9276.
" Diselosure OfOrbial Debris Mitigaton Plan, Including Amendment ofPnding Applications, Public Notic, DA
05—2698, Report No.SPB—112 (October 13, 2008) (Ordtal Debris Mirigation Public Noice.
" Orbial Datris Mitgation Public Noice
° See DismissalPublc Notce.
" Regasus Pettionat2.
© See Dismissal Public Notce
"* On April12, 2006, Pegasus refiled these three applications thticluded an orbital dbris mitigation plan. See
IBFS File Nos. SAT—LOA—20060412—00042, 43, and 44. ‘This Order does not prejudice our review of these
applications


                                   Federal Communications Commission                            ba 064220

 111.    DISCUSSION
         Ac—      Waiver Standard
         5.      The Commission may waive a rule or deadlineif there is good cause to do so,if special
 ircumstances warrant such a waiver, and a deviation from the rules would better serve the public interest
 than would strict adherence to the general rue."" Further, the Commission may grant a waiver only if he
 reliefrequested does not undermine the policy objective of the rulin question and would otherwise serve
 the public interest.". We ind that granting Pegasus a waiver would undermine the purpose of the rule at
 issue here and thatth circumstances that Pegasus outlines do not warrant deviation from the rule.
        B.      Purposeof the Rule
        6.. Pegasus assers that the purpose ofthe Orbital Debris Mitigation Public Notice is to establish
a date certain for amendments to applications to enable the Bureau to act on such applications
expeditiously in accord with the Commission‘s firs—come, first—serve, licensing process applicable to
most spplications. Pegasus further claims that because rules have not yet been established for the service
that Pegasus planned to offer, the Bureay is notin a position to act on ts spplication, even had it fled an
orbital debris showing." Pegasus therefore maintains that a waiver of the orbital debris filing
requirement would not frustrate Commission policy.®" We disagree
          7. In ts request, Pegasus is not simply asking for a waiver ofthfiling deadline in the Orbial
Debris Mitigation Public Notice, but in effect is also asking for a waiver of the Commission‘s
requirement that all applictions be substantilly complete when filed. In the First Space Station Rgorm
Order, the Commission adapted a firstcome, frst—served processing procedure for most applications
proposing satelites that will operate in the geostationary satelite orbit, such as Pegasus‘s proposed
satellites. It also adopted a requirement thatall applications must be substantially complete at thetime of
filng."" This requirement is needed to discourage speculative satelite applications and to ensure that
applicants do not submit incomplete applications withthe aim of obtaining "firs—in—lin"status."" Since
the First Space Station Reform Order was adopted, the Bureau has strtly enforced thisrequirement,"


®‘ Northeast Celider Telephone Co.v. FCC, 897 F28 1164, 1166 (Wortheost Celtar)
"* IHATT Radlov. FCC,418 R2d 1183, 1159 (D.C. Cis 1969),cert.denie, 409 US. 1027 (1972); Northas
Cellier,$97 F2d at 1166
" Pegasus Pertionat4
®Pegasus Pertionat 1
*‘ Space Sation Licensing Rules and Polices,Fist Reportand Order and Further Notice ofProposed Rulemaking,
1B Docket No.02—34, 18 FCC Red 10760,10852 (para.244) (2003)(RrsSpace Staron Reform Order). 47 CER.
 § 25.114(b)(*The technical information for a proposed stelite system . . should be complete in all pertinent
deus).
"" See Frst Space Station Reform Order, 18 ECC Red at10805—06 (par. 112). We erphasize that we do not find
that the Pegasus applcation is specultive, Rather, we conclude that granting a waiver of our requirement that
appliations be substantlly complete would undermine th purpose ofthis requirement and open the doort fture
speculitors
7 47 CER. § 25.112(@)(). See eg. Echostar Satlite LLC (R/A EchostarSatelite Corporation), Applieation for
Authorty to Construct, Launch and Operte a Geostationry Satellte in the Bixed Satlite Service Using the
Extended Ku—Band Prequencies atthe 101° W.LOrbital Location, Order on Reconsiderarion, 19 FOC Red 24953,
24958—59 (pre. 14) JntBur. 2004) (RehoSter Diomissol Reconsideraton Order). See aso, z. Letert James V.
Hleck, Word Radio Nemwork, Ic, from Scot A. Kotlr, Chief, Systems Analysis Branch, Stelite Divison, 20
ECC Red 1919 (Intl Bur, St. Div, 2008) (James V. Heck Letter; Leter to Robert Lewis, SiyTerm
                                                                                               (continued..)
                                                     3


                                   Federal Communications Commission                          pao6—1220

 stating that finding defective applications acceptable for fling is not consisent with the First Space
 Station Reform Order and creates uncetainty and ineflciencies in the licensing process." Allowing
 applicants, like Pegasus,to cure applications after they are fled could adverscly impact other applicants,
 including 17 GHz applicants, fling complete applications that are "second—indine" to the first
 application."
          8. Pegasus argues, however, that because the Commission has not yet established service,
 technical, or licensing rules for systems such as Pegasus‘s, and thus is not in a posiion to act on
 Pegasus‘s applications, a waiver is warranted."". As indicated above, the purpose of the substantilly
 complete requirementis to discourage defective applications, and to ensure that partiesfilng defective
 applications do not adversely affect parties filing substantialy complete applications. Contrary to
 Pegasus‘s assertion, the purpose of the rule is not to expedite Commission review of applications."" Thus,
 regardless of whether the Commission can immediately act on Pegasus‘s applications, granting the
 Pegasus waiver request would undermine the purpose ofth requirement that applications be substantially
 complete when filed.
         C.     Particular Circumstances
        9.. Pegasus also asserts thatit had not been sufficiently notified ofthe requirement to amend its
spplication to provide an orbital debris mitigation disclosure, and that dismissal ofits application would
e unduly harsh since its application has been pending for more than three and a halfyears." We disagree
with both assertions, and fnd that dismisal is an appropriate action.
          10. First, we find that the Commission provided ample notice of the requirement to amend
pending applications to include orbital debris mitigation disclosures. Contrry to Pegasus‘s assertions
that it was notifed only by the Orbital Debris Mitigation Public Notice, the Commission provided public
notice ofthe requirement t amend pending applications on two other occasions:
         (1) The Second Report and Order,released on June 24, 2004;""
         (2) Federal Register Notice, dated October 12, 2005;"
Any of these notifiation methods, by itself rovide Pegasus adequate notice."" Nonetheless, the Bureau
took the frther extraordinary step of providing actual notice by e—mail to the contact of record ofparies

(..contimed from previous page)
Communication,Inc.fom Fem J Jarmulnck, Deputy Chic, Satlite Division, 20 FCC Red 21 12 (ln! Bur, Sat.
Di2005)(Robert Lewis Leten.
* EchoStar Dismissl Reconsideration Order,19 FCC Red at24957 (par.9)
® EchoSter Dismisel Reconsideration Order, 19 ECC Red at28958 (para. 13).
* Pegasus Peiion at 4
" Pirst SpaceStaion Reform Order, 18 ECC Red at 10852 (pra.244). EchoSter DisnissalReconsideration Orde,
19 FCC Red at 24958—59 (pame 14.
* Pegasus Peion at 1.
"* second Report and Order, 19 ECC Red at 11577 (para. 20)
® Miigation ofOrbtelDebris, 70 ¥ed. Reg S9276.
*‘ See Mullane v. Central Hanover Bank & Trust Co., 339 US, 306, 314, 70 $.Ct.652, 687, 94 L. 865 (1980)
(*.... {] fundamental equirement of due process s .. otic reasonably calculated, under all tcrcurstances,
to apprise interesied partes of the pendency of the action and afford them an opportinity to present thir
objecions.",


                                   Federal Communications Commission                             ba 06120

 with pending applications that were subject to the orbitaldebris mitiation amendment requirement. Such
 actual notice was provided to Pegasus en days before the amendment was due". As a result, Pegasus had
 actual prior notice of the need to amend its pending applications by November 18, 2008, or fice
 dismissal. Thus, Pegasus‘s assertion that it missed the filing deadline because it did not have sufficient
 notice of the orbital debris mitigation amendment requirements is contradicted by: the record.
 Furthermore, we do not find that dismissal of Pegasus‘s applications is unduly harsh. The Commission
 stated in the Orbital Debris Mitigation Public Notice tat it would dismiss applications in cases where the
 applicant did not submit an amendment to provide an orbital debris mitigation plan."" As noted above, he
 Commission has consistently dismissed applications thatit has found to be incomplete," and Pegasusis
 free to resubmit is application without paying another filing fee."
        11. Pegasus also asserts thatits original application was submitted,in part, to assisin preserving
 US. international coordination prioity for certain orbital locations relative to other nations under the
 procedures ofthe Intemnational Telecommunication Union (ITU)."* In the ITU international coordination
process, member nations submitflings on behalf otheir applicants.. When a member nation submits the
required filings with the TTU, it obtains "prionty" over member nations filing subsequently. This prionty
gives the member nation superior status in coordinating their satellte systems with the systems oflater=
filed nations, Retaining TT date—priority for Pegasus, however, does not justfy reinstatement
Beginning in 1998, when the United States agreed to open its satelite market to satelltes Hcensed by
other countris,"" the Commission has authorized foreign—licensed sateltes to serve U.S. customers.*
Accordingly, even if the United States loses date proniy at Pegasus‘s orbital locations, it does not follow
that the U.S. public will necessarily lose service from these orbitallcations.""_Thus, the Commission‘s
overriding goal — delivery of service to the public — could be met even if Pegasus® application is
dismissed.
        12. Finally, Pegasus argues that the Bureau improperly acted before it could submit its waiver
request and amendment.— As noted, the Commission provided ample notice for parties to submit the
" See e—mail rom Curtisha Banks, Policy Branch, Satlfte Division, Iterational Bureau, to Scot Blank, Senior
Vie President, Lepal and Corporte Affain, and Generl Counsel dated November 8, 2005. See also Leter fom
Brice Jacobs, Counsel for Pegasus Development Corportion, to Marlene Dorth, Secretay, FCC, dated Apul 1,
2005, informing the Commission tht the contict person for Pegasus‘s sstellizelated Hicenses and pending
appliations is Scott Blank.
* see OrbialDebris MiigaionPublic Note.
* RchoStar Dismissal Reconsideration Orde, 19 FOC Red at24958—39 (par. 14). See also, . James V. Heck
Leter, 20 FCC Red 1919; Robert Lewis Leter, 20 FCC Red 2112.
"* Asindicated above, Pegasusrefiled theseapplications on April 12, 2006.
" Pegasus Pestionat2.
" The resuls of the World Trade Organization (WTO) basic telecommunications services negotiations are
incorporated nto the General Agreement on Trade in Services (GATS) by the Fourth Protoclt the GATS (Apri
30, 1996), 36 LLM. 336(1997). These resals, as wellas the bsic obligations containein the GATS, arerefered
to as the "WTO Basi Telecom Agreement" This agreement, which took effect on January 1, 1998, opened global
market,includingthat ohe United Stats,for telcommunicatons services, includingsatllite services.
* Amendment ofthe Commission‘s Repulitory Poliis to Allow Non—U.S. Licensed Satelites Providing Domest
and Itermatioal Service in the United States, Report and Order, IB Docket No. 96—111, 12 FCC Red 24094 (1997)
(wiscon.
* See VisionStarIncorporated, Application for Modifiation of Authority to Constact, Launch and Operte a Ka—
Band Satelite System in the Fixed Satlite Service, 19 FCC Red 14820, 14824 (para. 11) (In‘I Bur, 2004)
(FisnSiar Order,
* Pegasus Petiionat45.


                                   Federal Communtcations Commisson                              Da 06—1220

 required amendment or request a waiver oftherequirement. Pegusus did neither. Pegasus‘s petition does
 not cite any provision of the Commission‘s rules or adminisrative law thatrequires the Bureau to grant,
 or even consider, a waiver request fild after a fling deadline has expired or to withhold action on a
 defective application for a certain time period."" As a result, we can find no basis for Pegasus‘s waiver
 request and dismiss i.
 1.      ORDERING CLaUsES
          13. Accordingly, TT 18 ORDERED that the petiton for reconsideration filed by Pegasus
 Development DBS Corporation is DENIED.
          14. This Order is issued pursuant to Section 0.261 of the Commission‘s rules on delegated
 suthority, 47 C.F.R. § 0.261, and is effective upon release.


                                                   FEDERAL COMMUNICATIONS COMMISSION




                                                    omn V. Giust
                                                   Deputy Bureau Chicf
                                                   Interational Bureau




" In fit, Couts have upheld a number of prior cases in which requestsfor watver of Aling deadlines have been
denied. Seetn re Burlington Cablevison, Inc., 13 ECC Red 772 (Mass Media Bur, 1999), and cases cited terein

                                                     6



Document Created: 2006-06-09 15:18:48
Document Modified: 2006-06-09 15:18:48

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