Attachment petit for recon

petit for recon

PETITION FOR RECONSIDERATION submitted by Pegasus

petit for recon

2003-12-22

This document pretains to SAT-LOA-20030827-00169 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA2003082700169_589319

                                                                                       ORIGINAL
                                    REFORE THE
                        FEDERAL COMMUNICATIONS COMMISSION
                                  WaASHINGTON, D.C. 20554                       RECE] VED
                                      infi BureaU
In the Matter of                            o : amhs                              DEC 1 9 2093
                                       DE          O) '                   Federal
                                                                          f       Co   j
                                                                                       icati       feas
Application of Pegasus Development            & @%%@)A 03—3665                    0%?:2:5;8;8 Commission
Corporation for Authority to Launch afig@fl            ) Files Nos. SAT—LOA—20030827—00169
Operate a Geostationary Orbit Fixed—Satellite        )       -    SAT—LOA—20030827—00171
Service System in the Ka band                        )              SAT—LOA—20031030—00319


                            PETITION FOR RECONSIDERATION

        Pegasus Development Corporation ("Pegasus"), pursuant to 47 C.F.R. § 1.106, hereby

files this Petition for Reconsideration of the letter order issued by the International Bureau

("Bureau") dismissing the above—captioned ::1pp1icatiobns.1 Pegasus met the requirement for

submitting "substantially complete" applications. Accordingly, the Bureau should reconsider its

dismissal and reinstate the applications.

                                            Background

        On August 27, 2003, Pegasus filed two Ka—band geostationary orbit, fixed—satellite

service applications for the 79°W and 87°W orbital locations under the Commission‘s new first—

come, first—served ("FCFS") filing process." Each application contained a completed FCC Form




‘ See Letter to John K. Hane, Senior Vice President, Pegasus Development Corporation, from
Thomas S. Tycz, DA 03—3665 (November 19, 2003), as corrected (November 26, 2003)
("Dismissal Letter").

> Under the FCFS process, only the first—filed, acceptable application for a particular orbital
location and frequency band is considered. See In the Matter ofAmendment ofthe Commission‘s
Space Station Licensing Rules and Policies, Notice of Proposed Rulemaking, 17 FCC Red 3847,
at 4 32 (2002) ("Satellite Licensing NPRM‘); First Report and Order, 18 FCC Red 10760 (2003)
("Satellite Licensing Order‘). Subsequently filed mutually exclusive applications are not
considered unless the first—filed application can not be granted.                  *


312, two exhibits, and a 32—page (including technical appendix) detailed description of the

proposed satellite system, which specified, inter alia, link noise budgets, modulation parameters,

and an overall link performance analysis for each type of r.f. carrier and demonstrated that the

satellite‘s PFD limits and earth station EIRP density values are consistent with the Commission‘s

rules." Pegasus was first in line for the applied for locations and frequencies, and on September

12, 2003, the Commission placed Pegasus‘ two applications on public notice. Although one

other applicant submitted a Ka—band application for the 87°W orbital location, no party

challenged or filed comments regarding either of Pegasus‘ applications."

        On October 29, 2003, the Bureau announced that the Ka—band frequencies at the 73°W

orbital location were available, and Pegasus filed an application for those fiequenci¢5.5 That

application contained technical data and other information similar to the two previously filed

applications.

        On November 19, 2003, the Bureau issued the letter order at issue dismissing all three

Pegasus applications without prejudice to refiling. The Bureau‘s sole justification for dismissing

the applications was because Pegasus specified a station keeping tolerance of +0.1°, rather than

+0.05°, the tolerance specified in 47 C.F.R. § 25.210(j)(1), and did not request a waiver of that




* The information is contained in the Technical Appendix and Tables 4 and 5 of the narrative
description of Pegasus‘ applications.

* The applicant next in line at 87°W subsequently amended its application requesting the 77°W
orbital location. See SAT—AMD—20031009—00312 (October 9, 2003); SAT—LOA—20030827—
00173 (August 27, 2003).

° See SAT—LOA—20031030—00319 (October 30, 2003).


rule. See Dismissal Letter, at 2—3. Pegasus refiled the applications on November 19, 2003 and

changed the station keeping tolerance of the proposed satellites to £0.05°.5

                                             Discussion

        Under the Commission‘s rules, satellite applications will be processed if they are

"substantially complete" when they are filed.‘ Part 25 of the Commission‘s rules obligate an

applicant to provide detailed technical information regarding its proposed satellite system.8

Pegasus provided the Commission all such relevant information.

       Both judicial and Commission precedent establish that, under a substantially complete

standard, minor errors in an application do not warrant dismissal of that application. For

example, in James River Broadcasting Corporation v. FCC, the D.C. Circuit reversed a

Commission decision that dismissed a broadcast application under a substantially complete

standard because the application failed to protect a neighboring station from harmful interference

in express violation of a Commission rule. See James River Broadcasting Corporation v. FCC,

399 F.2d 581 (1968). The court held that even though the application was patently not in

accordance with the Commission‘s rules, it was nonetheless substantially complete when filed.




° See SAT—LOA—20031119—00336 to 00338 (November 19, 2003). The fact that Pegasus was
able to refile promptly and preserve its place in line with respect to each of the proposed satellite
systems does not moot this petition for reconsideration. The Bureau has not awarded Pegasus a
license for any of the applied for spectrum and could in theory find some "deficiency" with the
refiled applications. See also McElroy v. FCC, 990 F.2d 1351, 1358 (1993) (the fact that an
applicant may refile a dismissed application does not necessarily address the applicant‘s interest
in seeking reinstatement of the dismissed application).

‘ See Satellite Licensing Order, at 4 244 Satellite Licensing NPRM, at [ 84; Dismissal Order, at
2; see also 47 C.F.R. § 25.112.

8 See 47 C.F.R. § 25.114(c) (specifying a checklist of over 23 items).


Id. at 583. As the court later reiterated in Sailzer v. FCC, "[u}nder the James River standard, the

FCC must accept applications that are substantially complete when filed even if they contain

minor errors or infractions of agency rules, so long as any such defects may be cured without

injury to public or private interest.""

        Pegasus‘ misspecification in its applications was just such a minor error. Pegasus based

its technical interference analysis on a station keeping tolerance of +0.05°, not +0.10°. Thus, the

misspecification had no effect on any of the interference analysis provided in the application or

relevant to the Commission‘s processing of the applications. Moreover, a station keeping

tolerance of +0.05° is an established industry design standard for GSO satellites operating in a

two degree environment. Thus, the Bureau‘s presumption that Pegasus proposed to deploy

satellites with substandard specifications was unreasonable.

        The Bureau‘s own recently announced guidelines for evaluating whether applications are

substantially complete does not mention station keeping tolerance.‘" Rather, the Bureau

specified that all applications must include: (1) a link noise budget, (2) modulation parameters,

(3) an overall link performance analysis for each type of r.f. carrier, and (4) a demonstration that

the satellite‘s PFD limits and earth station EIRP values are consistent with the Commuission‘s

rules."" Pegasus accurately provided all such information in its applications.

        The Commission has dismissed applications as incomplete or inconsistent with its rules

only in extreme circumstances. For instance, the Commission dismissed applications for failing


° See Salzer v. FCC, 778 F.2d 869, 872 n. 7 (D.C. Cir. 1985)
9 See Public Notice No. SPB—195, DA 03—3863 at 2 (December 3, 2003).
U See id. at 1—2.


to provide "information as to the number of channels, characteristics of satellites, channel

bandwidth, polarization methods, e.i.r.p., service areas, or uplink locations" and for failing to

identify parties to the application."" Similarly, the Bureau dismissed an application that failed to

specify a feeder uplink band or TT&C frequencies and to provide the weight, mass, dimensions,

and power budget of the proposed satellites."" Pegasus‘ misspecification does not rise to this

level.

         More commonly, the Bureau grants applications which contain minor errors or

infractions of the Commission‘s rules. For example, the Bureau granted a Pegasus Ka—band

application despite the fact that Pegasus proposed, without a waiver request, the use of

impermissible frequencies for launch TT&C."" The Bureau noted only that Pegasus would not

be authorized to use such frequencies. Similarly, the Bureau granted a PanAmSat application

that inadvertently proposed domestic service for frequencies limited under the Commission‘s

rules to only international use."" The Bureau conditioned the grant of the license on the

PanAmSat‘s proper adherence to the relevant Commission rule.‘"

         On other occasions, the Bureau has permitted an applicant that initially failed to provide

certain information to amend its application to correct that deficiency. As an example, in June



2 In re Advance, Inc. et al., 88 FCC 2d 100, at [ 36—46 (1981), affd on reconsideration, 89
FCC 2d 177 (1982).

3 See Applications ofthe Boeing Company, DA 03—2073 (June 24, 2003).
4 See In the Matter ofPegasus Development Corporation, 16 FCC Red 14378, at 4 18 (2001);
see also KaStar Satellite Communications Corp., 13 FCC Red 1366, at € 19—20 (1997).

5 See PanAmSat Licensee Corporation, 17 FCC Red $367, at « 9 (2002).
16 See id.


2003, the Bureau gave DirecTV an opportunity to amend its initial filing, despite the fact that its

application was not submitted on an FCC Form 312, failed to provide technical information

regarding antenna beams, did not provide performance objectives or link noise budgets, omitted

a description of the physical characteristics of the space station, and specified unauthorized

transfer orbit and on—station TT&C frequencies.‘" In a more recent example, which post—dates

the implementation of the Satellite Licensing Order, Iridium filed a modification application but

failed to provide ownership information, as required by question 40 of FCC Form 312."° Rather

than dismissing the application, the Bureau requested that Iridium amend its application to

provide the missing information.‘" Even the Bureau‘s recent public notice regarding the

substantially complete standard provides that applications filed prior to the release of the public

notice and failing to meet the announced guidelines would be dismissed only after the Bureau °

provided an opportunity for the applicant to provide supplemental information."" Accordingly,

consistent with precedent, the Bureau should have requested that Pegasus amend its applications

.or simply granted the applications noting the Commission requirement to maintain a station




‘ See Letter to James H. Barker III. Esq. from Thomas S. Tycz, File No. SAT—LOA—20030611—
00115 (November 17, 2003). Although the application was for a DBS satellite, which is not
subject to FCFS processing, a DBS applicant is, nonetheless, required to provide all relevant
information requested in Part 25 of the Commission‘s rules and is under the same obligation to
meet the substantially complete standard. See Policies and Rulesfor the Direct Broadcast
Satellite Service, 17 FCC Red 11331, at 36 (2002); see also In re Advance, Inc. et al., 88 FCC
24 100, at «[ 23 (1981) (dismissing incomplete DBS applications under a substantially complete
standard).

} See SAT—MOD—20030828—00286 (August 28, 2003).
* See Letter to Peter D. Shields from Thomas S. Tycz, File No. SAT—MOD—20030828—00286
(October 22, 2003).

*° See Public Notice No. SPB—195, DA 03—3863 at 2 (December 3, 2003).


keeping tolerance of £0.05°.*‘




*‘ The Satellite Licensing Order did not change the standard for assessing whether an application
is substantially complete. See Satellite Licensing Order, at 4 244 ("[WJle find that continuing to
require substantially complete satellite applications will also continue to provide some additional
protection against speculative satellite applications."); see also Satellite Licensing NPRM, at «| 84
n. 104 ("We emphasize that we are not proposing any changes to the ‘substantially complete‘
standard we currently use for satellite license review."). Had the Commission intended to do so,
it would have been required to provide proper notice to potentially affected parties. See Salzer v.
FCC, 778 F.2d 869 (D.C. Cir. 1985). For this same reason, the Bureau may not now adopt its
own new interpretation of the substantially complete standard. But cf. In the Matter of
Applications ofPanAmSat Licensee Corp., DA 03—3633, at 6 n. 12 (implying that precedent
regarding the substantially complete standard and predating the Sate//ite Licensing Order is no
longer applicable). Additionally, from a policy perspective, the dismissal of the applications for
a minor error or infraction of the Commission‘s rules undermines the Commission‘s objectives
of eliminating uncertainty and inefficiency and of establishing operating rights clearly and
quickly. By introducing a heightened standard of review for applications, the Bureau has created
uncertainty and has opened up the possibility for protracted pleading cycles between parties
contesting the completeness of applications.


                                             Conclusion

          For the reasons stated above, Pegasus requests that the Bureau reconsider its dismissal

and reinstate Pegasus‘ applications.




                                               Respectfully submitted,




                                                       Tony Lin
                                                       Shaw Pittman LLP
                                                      2300 N St. NW
                                                      Washington, DC 20037—1128

                                               Counselfor Pegasus Development Corporation

Dated: December 19, 2003




Document #: 1365547 v.5



Document Created: 2007-08-30 16:11:02
Document Modified: 2007-08-30 16:11:02

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