Attachment request

This document pretains to SAT-LOI-19970926-00161 for Letter of Intent on a Satellite Space Stations filing.

IBFS_SATLOI1997092600161_400522

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                                         August 2, 2004
                                                              RECEIVED
Ms. Marlene H. Dortch
Secretary                                                       AuG — 2 2004
Federal Communications Commission
445 12th Street, S.W.                                     ibliientivemmb
Washington, DC 20554
       Re: TMI Communications and Company Limited Partnership
             Request for Confidential Treatment
             File No.      189.8AT—L03—97
             IBFS Nos. SAT—LOF19970926—00161
                           SAT—AMD—20001103—00158
Dear Ms. Dortch:

        Transmitted herewith on bchalf of TMI Communications and Company: Limited
Partnership ("TMI") are copies of all amendments and agreements executed since July 26, 2002
(collectively, the "Amendments") to the satellite construction contract (the "Satellite Contract")
between TerreStar Networks, Inc. ("TerreStar®) and Space Systems/Loral Inc. ("Loral") for
TM‘s above referenced 2 GHz mobile satellite service ("MSS") system. On July 26, 2002, TMI
previously submitted to the Bureau, in confidence, a copy ofthe underlying Satellite Contract.
        TM‘s authorization for its 2GHz MSS system was reinstated by the Commission‘s
Memorandum Opinion and Order on June 21, 2004 ("Order")‘ on condition that TMI
demonstrate to the International Bureau, within 30 days of the release date, that it has entered
into a guarantee or similar agreement to cover TerreStar‘s payments to Loral under the Satellite
Contract. The Order also adopted new construction milestone dates for TMT‘s system given that
construction of the satellite system had been suspended following the Bureau‘s prior (February
2003) revocation ofTMI‘s authorization.
       Pursuant to the Order, on July 29, 2004, TMI‘s counsel hand delivered. to the
International Bureau a copy of a guarantee agreement. covering TerreStar‘s payments under the
Satellite Contract, as amended to reflect the new milestone dates in the reinstatement Order. The
Satellte Contract amendments referred to in the guarantee are therefore being submitted
herewith so as to expedite the Bureau‘s review of this agreement.

! FCCOA—144, eleased Je 29,2004 Fon iNTERNAL USE ONLY


                                        NON—PUBLIG
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Marlene H. Dortch
Page 2                                      *
August 2, 2004
        Confider        lty Request

       Pursuant to the Frgedom of Information Act (FOIA),* and Sections 0.457 and 0.459 of
the Commission‘s Rules," TMI requests that the following sections of the Amendments that
contain proprictary and commercially sensitive financial or technical information be withheld
from public inspection and be treated confidentially:
    * Amendment No. 1, dated as of February 20, 2003 — the full text of Section A
      "Amendment‘; and Attachment A (replacement Exhibit F);
    * Amendment No. 2, dated as of May 13, 2003 — the full text of Section A "Amendment";
      Attachment A (replacement Exhibit F); and replacement page 11 to the Satellite Contract;
    * Amendment No. 3, dated as of August 25, 2003 — the full text of Section A
      "Amendment" from page 1 to page 5; Attachment A (replacement Exhibit F); and
      replacement pages 11 to 17 ofthe Satelite Contract;
    *   For each letter agreement dated from October 15, 2003 to June 9, 2004 — all bulleted
        paregraphs 1 and 2; and

    * Amendment No. 4, dated as of July 26, 2004 — Article 2 z; Articles 3 to 9; and
      Attachment A (replacement Exhibit F).
        To facilitate public access to the non—confidential portions of the Amendments, a second
redacted version of the Amendments is enclosed and marked "FCC Public Inspection Copy".

        In support of its request for confidential treatment of the above listed sections of the
Amendments, and pursuant to the requirements under Section 0.459(b) of the Commission‘s
Rules, TMIstates the following:

         1.      TMI seeks confidential treatment ofthe sections of the Amendmentslisted above.

        2.     The Amendments are being submitted voluntarily by TMin response to the
Commission‘s Order reinstating TMI‘s 2 GHz MSS authorization.‘ In the event that the
Commission denies TM!‘s request for confidential treatment of the Amendments, TMhereby
requests that the Commission return the Amendments without consideration pursuant to Section
0.459(e) ofthe Commission‘s Rules.
        3.      The Amendments contain information regarding amounts due, payment terms,
technical specifications, construction schedules, and unique commercial terms and conditions.
This information constitues trade secrets or sensitive commercial and financial information that
‘susc sx00)
J ar on53 0457, 0450
° See FCC O4—148, released June 29, 2004.


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Mariene H. Dortch
Page3
August 2, 2004
"would customarily be guarded from competitors,"" and is therefore exempted from disclosure
under FOIA Exemption 4 and Section 0.457 of the Commission‘s Rules.®

         4.     The Amendments concem TMI, TerreStar, and Loral‘s implementation of a 2
GHz MSS system that will be subject to competition from a number of other MSS systems. The
Commission has previously acknowledged that there are a number of other companies that offer
MSS in North America." Disclosure of the redacted information will seriously inhibit the parties
ability to remain competitive in the MSS industry.
         5.      Disclosure of the contract provisions that TMI secks to keep confidential would
cause substantial competitive harm to TMI‘s business. The technical specifications and
performance criteria for its proposed satellte, as well as the terms on which the satellite will be
contracted and launched, are commercially sensitive and ordinarily would not be disclosed to
third partics._ If disclosed, this information would allow competing 2 GHz MSS licenses to use
this information to their competitive advantage. For example, knowledge of financial terms and
unique technical specifications could allow competitors to obtain more favorable terms from
other manufacturers.. Purther, disclosure would harm TMI in fature negotiations with satellite
construction firms by allowing them to extract more favorable terms.
       6.      The Amendments as well as the Satellite Contract require all parties to maintain
confidentility, and the Satellite Contract itself is marked proprictary to TMI, TerreStar and
Loral and may not be further disclosed without the written permission of the parties.

        7.      Information regarding the redacted sections of the Amendments are not available
to the public, and there has been no disclosure of such information to third parties.
        8.     TMI requests confidential treatment of the redacted sections of the Amendments
for an indefinite period. As previously discussed, release of this information at any time in the
future would cause substantial competitive harm to TML
       9.     TMI also notes that other parties who have recently filed satelite contracts with
the Commission have also requested confidential treatment of their contracts," and TMI is
unaware of any of their requests being denied by the Commission.


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7 See Motent Services nc and TMMI Conmunicaions and Company, LP, 16 FCC Red 20469, 424 (B 2001)
* See Leterrom Cheryt 4. Trit, Counselt 1CO Satelte Sevices G.P. to Marlene H. Dortch, FCC Seretary,
dated December 17, 2003 (Fil No.188—SAT—LOI97);Leteron Joseph P. Markosk and Bruce . Olcot,
CounseforThe Bocing Company to Merlene H. Dorich, FCC Seeretry,dated Aprl 5, 2004 (File Nos, 139.SAT»
P/LAI7(16), 90—SAT—AMEND9820); Ltfrom PateD. Sheld, CounseltoIidiun 2GHiz LLC 10 Merlene
H. Dortch, FCCSecretar, dted April , 2004 (File Nos. 187.SAT—PILA—97(06), SAT—LOA—1997092600147,
al)

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Marlene H. Dortch
Pagea                                    rasre
August 2, 2004
       For the foregoing reasons, TMI submits that the law requires confidential reatment of the
portions of the Amendments TMI has identified above.

       Please direct any questions regarding this filing to the undersigned.
                                             Very   truly yo

                                             Grego ”c‘}:%hlkj
Enclosures

ec:    Mr. Roderick K. Porter, Deputy Bureau Chief, Intenational Bureau
       Steven Spacth
       Cassandra C. Thomas
       William Bell
       Karl Kensinger
       Zic Rivers, TerreStor




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Document Created: 2004-10-06 18:27:31
Document Modified: 2004-10-06 18:27:31

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