Attachment DA 09-1149

DA 09-1149

DECISION submitted by IB,FCC

DA 09-1149

2009-05-27

This document pretains to SAT-LOA-20080523-00112 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA2008052300112_713891

                           Federal Communications Commission
                                    Washington, D.C. 20554




                                                                                             DA 09—1149
                                              May 27, 2009
Pantelis Michalopoulos, Esq.
Steptoe & Johnson LLP
1330 Connecticut Ave, NW
Washington, D.C. 20036—1 795

                                    Re:      Application File No. SAT—LOA—20080523—00112 (Call
                                             Sign: S2752)

Dear Mr. Michalopoulos:

        This letter refers to the above—referenced application filed by EchoStar Corporation
(EchoStar) on May 23, 2008. In this application, EchoStar seeks authority to construct, launch,
and operate a C—band Fixed Satellite Service (FSS) space station at the 84.9° W.L. orbital
location. As set forth below, EchoStaris considered subject to the presumption specified in
Section 25.159(d) of the Commission‘s rules as a result of EchoStar missing three space station
milestones within a three—year period.‘ In its application, EchoStar did not rebut the presumption
or request a waiver of the rule. Consequently, we return the application as unacceptable for filing
without prejudice to refiling.

        Section 25.112(a) of the Commission‘s rules provides that the Commuission will return an
application as unacceptable for filing if the application is defective with respect to completeness
of answers or informational showings, is internally inconsistent, or does not substantially comply
with the Commission‘s rules unless a waiverof the rules is requested." EchoStar‘s application
does not comply with the Commission‘s rules. Further, EchoStar did not request a waiver of the
rules.

        Section 25.159(d) provides that if a space station licensee misses three implementation
milestones within a three—year period, there is a presumption that the licensee obtained one or
more of the licenses for speculative purposes." Under these circumstances, Section 25.159(d)



! 47 C.F.R. § 25.159(d).

247 C.FR. §25.112(a).
> 47 C.F.R. § 25.159(d). See Amendment of the Commission‘s Space Station Licensing Rules and Policies,
First Report and Order and Further Notice ofProposed Rulemaking, IB Docket No. 02—34, 18 FCC Red
10760, 10836 (2003) (Space Station Licensing Reform Order). Section 25.159(d) does not apply to
licenses or applications in the Direct Broadcast Satellite service. Space Station Licensing Reform Order, 18
FCC Red at 10760, n. 4. It does apply to 17/24 GHz BSS applications and licenses. Establishment of
Policies and Service Rules for the Broadcasting—Satellite Service at the 17.3—17.7 GHz Frequency Band and
at the 17.7—17.8 GHz Band Internationally, and at the 24.75—25.25 GHz Frequency Band for Fixed Satellite
Services Providing Feeder Links to the Broadcasting Satellite Service and for the Satellite Services


                                Federal Communications Commission                               DA 09—1149



imposes a limit on the number of pending applications and licensed but unlaunched satellites that
an entity may have. Specifically, the rule states that "[uJnless the licensee rebuts this
presumption, it will not be permitted to file another [application] in any frequency band if it has
two or more satellite applications pending, or two licensed—but—unbuilt satellite systems of any
kind."* This limit remains in effect until the licensee provides adequate information to
demonstrate that it is very likely to construct its licensed facilities if it were allowed to file more
applications."

         At the time it filed its May 23, 2008 application for a C—band satellite at the 84.9° W.L.
orbital location, EchoStar had missed three space station milestones within a three—year period.
First, EchoStar did not satisfy the third milestone (to begin physical construction) for its licensed
Ka—band space station authorization at 117° W.L. It instead surrendered this authorization on the
December 8, 2006 milestone deadline.         Further, EchoStar did not satisfy the third milestones for
either its licensed Ku—band satellite at 109° W.L. or its licensed Ku/Ka—band satellite at 121°W.L.
Rather, EchoStar surrendered both of these licenses on the October 1, 2007 milestone deadline.
These three license surrenders triggered the presumption in Section 25.159(d) that EchoStar
obtained one or more of the licenses for speculative purposes.®

          In addition, when it filed the May 23, 2008 application, EchoStar had five pending
Broadcasting—Satellite Service (BSS) applications and one authorized but unlaunched FSS
satellite.‘ Because EchoStar had more than two pending applications or two licensed but
unlaunched satellites, Section 25.159(d) prohibited EchoStar from filing additional applications
until it rebutted the presumption or justified a waiver of the rule. EchoStar‘s May 23, 2008
application did not rebut the presumption or request a waiver.




Operating Bi—directionally in the 17.3—17.8 GHz Frequency Band, Report and Order and Further Notice of
Proposed Rulemaking, FCC 07—76, 22 FCC Red 8842, 8849 (2007).

*47 CF.R. § 25.159(d).

° Id. In adopting this rule, the Commission stated that a licensee that has a pattern of obtaining licenses and
then surrendering them before a milestone deadline is subject to the presumption in the rule. Space Station
Licensing Reform Order, 18 FCC Red at 10836, n. 463.

© In addition, on March 9, 2009, EchoStar surrendered a license for a Ka—band satellite at the 97° W.L.
orbital location. EchoStar surrendered this authorization one day after the milestone deadline for launching
the satellite.

 See SAT—MOD—20070323—00055 (current authorization for unlaunched FSS space station at 112.85°
W.L., Call Sign $2636). See also then—pending BSS applications: File Nos. SAT—LOA—20020328—00050,
SAT—AMD—20080114—00018, and SAT—AMD—20080213—00044 (for Call Sign $2440); SAT—LOA—
20020328—00051 and SAT—AMD—20080114—00019 (for Call Sign $2441); SAT—LOA—20020328—00052,
SAT—AMD—20080114—00020, and SAT—AMD—20080213—00043 (for Call Sign $2442); SAT—LOA—
20070105—00001 and SAT—AMD—20080114—00021 (for Call Sign $2723); SAT—LOA—20070105—00003,
SAT—AMD—20080114—00022, and SAT—AMD—20080213—00045 (for Call Sign $2725). Since May 23,
2008, the Commission has granted three of the five pending BSS applications (Call Signs $2723, $2725,
and $2440). EchoStar has not yet launched any of the three newly—authorized satellites or its previously—
licensed FSS satellite, while two BSS applications remain pending. Thus, Section 25.159(d) continues to
apply.


                             Federal Communications Commission                        DA 09—1149




        Accordingly, pursuant to Section 25.112(a)(1) of the Commission‘s rules, 47 C.F.R. §
25.112(a)(1), and Section 0.261 of the Commission‘s rules on delegated authority, 47 C.F.R. §
0.261, we return EchoStar‘s application as unacceptable for filing without prejudice to refiling.

        Questions regarding this matter may be directed to Alyssa Roberts, Policy Branch, at
(202) 418—7276.


                                                          Sincerely,
                                                         io_
                                                          Robert G. Nelson
                                                          Chief, Satellite Division
                                                          International Bureau



Document Created: 2019-04-21 09:53:21
Document Modified: 2019-04-21 09:53:21

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