Attachment opposition

opposition

OPPOSITION submitted by Loral Space & Communications; Loral Orion Inc

opposition

2003-05-06

This document pretains to SAT-MOD-19960610-00082 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD1996061000082_555837

                                                   BEFORETHE                  . . RECEIVED
                           Federal Communications Commission
                                            WASHINGTONpD,C.                                MAy —6 2003
            C*                                                   E(‘CEI VE       EEDERAL       uCATIONS CcOMMISEION
                                                                                                             COM
In the matter of                                                MaY o ? m        5%%;5;&;?@2@%@%
Loral SpaceCom Corporation and                            File Nos. 123/124—SAT—MP—96;
Loral Space & Communications Corporation                  IBFS Nos. SAT—MOD—19960610—00082/83
                                                          SAT—MOD—19991102—00106;
Applications for Modification of Fixed—Satellite          SAT—MOD—19991101—00108/109
Service Space Station Authorizations                      Call Signs: $2159, S2160, $2205, T402

Applications for Extension of Milestone Dates             File Nos. SAT—MOD—19991101—00107
                                                          SAT—MOD—20020408—00060; Call Sign: $2160

Request for Extension of Time to Construct,               File Nos. SAT—MOD—20000104—00042/43/44/45
Launch, and Operate a Ka—band Satellite
System in the Fixed—Satellite Service

                                                                   Received
To: The Commission
                                                                   MAY 1 3 2003
                                                                    Policy Branch
                                                                 international Bureau

                   OPPOSITION TO APPLICATION FOR REVIEW, IN PART



                                                   Philip L. Verveer
                                                   Michael G. Jones
                                                   Jennifer D. McCarthy
                                                   Willkie Farr & Gallagher
                                                   1875 K Street, NW.
                                                   Washington, D.C. 20006
                                                   (202) 303—1000


May 6, 2003




179539.1


                                               TABLE OF CONTENTS

                                                                                                                                Page

SUMMARY            ...2222222222220022200evvv es se rirsrrerrcsresresrrreerereerresesserrrsessssrrrrrrerrrersrerrerssrrssesakek. i

1.         sftor celsio}1} . 2

H.         THE BUREAU‘S DECISION IS CONSISTENT WITH ITS PRIOR
           ORDERS AND SHOULD BE UPHELD. ....2222.2.22222000000000everervrrrrrrrrrtrrrrrerersrrerareakk. 3

           A.     Orbital Resources‘ Reliance on Specific Terms Used in Loral‘s Ka—
                  Band LIC@MS@ 1$ IMNAPE. ............22.2222200000000a0eveeevrr n en sns r en r se e e se vr es e e e e v e k k k k60 7

           B.     The Commission Routinely Licenses the Use of Frequencies, Not
                  ACaeSeicce 9

IIl.       ORBITAL RESOURCES®‘ STANDING IN THIS PROCEEDING IS
           J13) (Holl 11

IV.        o) (oh1j (o) o 14




179539.1


                                           SUMMARY

           Loral Space & Communications Corporation and Loral Orion, Inc. (collectively

"Loral"), oppose the Application for Review, in part, filed by Orbital Resources LLC

("Orbital Resources") demanding that the Commission immediately vacate portions of

the International Bureau‘s April 1, 2003, Order confirming the validity of Loral‘s Ku—band

authorization at 47° W.L. Orbital Resources has established no basis for its Application

for Review.

           In the Order, the Bureau clearly explained that, although it was nullifying Loral‘s

Ka—band authorization at 47° W.L. for failure to meet the Ka—band milestones

established in 1997, consistent with its prior determinations on this matter such action

did not affect the Ku—band authorization at that orbital location. When Loral‘s use of Ku—

band frequencies was authorized in 1991, the Commission did not impose any

implementation milestones in that authorization. In its 1997 Ka—band order, the

Commission modified the original authorization, with a second authorization, which

imposed milestones on the Ka—band frequencies to be incorporated into a hybrid

satellite. The Bureau should be accorded significant deference when interpreting its

own decisions.

           Orbital Resources‘ standing to file its Application for Review is tenuous. Orbital

Resources holds no FCC space station licenses nor does it appear to have any plans to

build a satellite at 47° W.L. or elsewhere. Its interest in this proceeding is purely

pecuniary. Orbital Resources provides no basis for the Commission to vacate the

provisions of the Bureau‘s Order validating Loral‘s 47° W.L. Ku—band authorization. The

Bureau‘s decision was rational and consistent with prior orders and should be upheld.




179539.1                                     i


                                                                                          %gmgi Ef~

                                                   BEFORE THE
                                                                                                 CevED
                            Federal Communications Commission                                MaY — 6 20993
                                            WASHINGTON, D.C.
                                                                                     FEDERAL COMMUNICATIONS CommMISgion:
                                                                                           OFrFice or ths secrFtany
In the matter of

Loral SpaceCom Corporation and                          File Nos. 123/124—SAT—MP—96;
Loral Space & Communications Corporation                IBFS Nos.SAT—MOD—19960610—00082/83
                                                        SAT—MOD—19991102—00106;
Applications for Modification of Fixed—Satellite        SAT—MOD—19991101—00108/109
Service Space Station Authorizations                    Call Signs: $2159, S2160, S2205, T402

Applications for Extension of Milestone Dates           File Nos. SAT—MOD—19991101—00107
                                                        SAT—MOD—20020408—00060; Call Sign: $2160

Request for Extension of Time to Construct,             File Nos. SAT—MOD—20000104—00042/43/44/45
Launch, and Operate a Ka—band Satellite
System in the Fixed—Satellite Service

                   OPPOSITION TO APPLICATION FOR REVIEW, IN PART

           Loral Space & Communications Corporation and Loral Orion, Inc. (collectively

"Loral" except where otherwise noted), by its attorneys, submit this Opposition to the

April 21, 2003, Application for Review, In Part ("Application for Review") filed by Orbital

Resources LLC ("Orbital Resources") in the above—referenced proceeding. Orbital

Resources demands that the Commission vacate portions of the International Bureau‘s

April 1, 2003, Order relating to the validity of Loral‘s Ku—band authorization at 47° W.L.‘

Orbital Resources provides no basis for such action. Its Application for Review is

without merit and should be dismissed.




I        In re Loral SpaceCom Corporation and Loral Space & Communications Corporation, Applications
for Modification of Fixed—Satellite Service Space Station Authorizations; Applications for Extension of
Milestone Dates; Request for Extension of Time to Construct, Launch and Operate a Ka—band Satellite
System in the Fixed—Satellite Service, Memorandum Opinion, Order and Authorization, DA 03—1045 (rel.
April 1, 2003) ("Order").


179539.1


    I.     BACKGROUND

           On June 27, 1991, the Commission granted Loral‘s predecessor—in—interest,

    Orion Satellite Corporation ("Orion"), final authorization to use Ku—band frequencies at

    47° W.L.*     Consistent with its separate systems licensing policies, the Commission did

    not impose implementation milestones on Orion‘s authorization. On May 8, 1997, the

    Commission granted Orion authority to modify its Ku—band authorization to add a Ka—

band payload.* In the Ka—band Order, the Commission established construction and

launch milestones for the Ka—band authorization. The Ka—band construction completion

and launch milestones for the 47° W.L. Ka—band authorization were identical to those

imposed with respect to Orion‘s Ka—band authorizations at 89° W.L., 81° W.L. and 78°

E.L.A
           Following its acquisition of Orion," Loral filed a request to modify its Ka—band

authorization for 47° W.L. and for its other newly acquired Ka—band slots to add inter—

satellite links (ISLs) and to extend the Ka—band milestones to be commensurate with

those of other first round Ka—band licensees with ISL authority.©" Although the


2        In re Orion Satellite Corporation Request for Final Authority to Construct, Launch and Operate an
International Communications Satellite System, Order, 6 FCC Red. 4201 (1991).

3          in re Orion Atlantic, L.P. Application for Modification of Authority to Add Ka—band Capacity to its
Ku—band Orion F—2 Satellite, Order and Authorization, 13 FCC Red. 1416 (1997) ("Ka—band Order").

*          Ka—band
               Order at «[ 32; In re Orion Network Systems, Inc. Application for Authority to Construct,
Launch and
       Operate
           Operate a Ka—Band Satellite System in the Fixed—Satellite Service, Order and Authorization,
12 FCC Red. 23027 at [ 31 (1997).

5        In re Application of Loral Space & Communications Ltd. and Orion Network Systems, Inc.,
International Private Satellite Partners, L.P. (d/b/a/) Orion Atlantic, L.P., Order and Authorization, 13 FCC
Red. 4592 (1998). The term "Loral" will now be used to refer to all Loral—affiliated entities for purposes of
this pleading, except where explicitly noted.

6          File No. SAT—MOD—20000104—00045.



179539.1


 International Bureau granted Loral‘s ISL modification, it denied Loral‘s milestone

extension request." Loral filed a petition for reconsideration of this order. in the instant

Order, the Bureau affirmed its decision not to extend Loral‘s construction completion

and launch milestones with respect to the Ka—band payload at 47° W.L. and declared

that authorization null and void.© However, it clarified that "Loral‘s underlying Ku—band—

only authority at 47° W.L. remains valid until such time as the Commission addresses in                      /
a future rulemaking the broader issue of how [the FCC] will recapture as—yet unbuilt Ku—

band licenses issued without milestones.©


II. THE BUREAU‘S DECISION IS CONSISTENT WITH ITS PRIOR ORDERS AND
SHOULD BE UPHELD.

           The Commission‘s rules require a party seeking Commission review of an action

taken pursuant to delegated authority to specify with particularity which among a list of

factors warrants Commission consideration of the questions presented."" The factors

include (i) a conflict with statute, regulation, case precedent or established policy; (ii) an

undecided question of law or policy; (iii) a precedent that should be overturned or

revised; (iv) an erroneous finding on an material question of fact; or (v) prejudicial




T       In re Loral Space & Communications Corp. Request for Extension of Time to Construct, Launch
and Operate a Ka—band Satellite System in the Fixed—Satellite Service, Order, 16 FCC Red. 11044
(2001).

8          The Bureau also declared null and void Loral‘s Ka—band authorizations at 81° W.L., 78° E.L. and
89° W.L. Order at [{f 1, 22.

°          Order at f] 14.
9000       47 CFR §1115(b)(2).


179539.1


procedural error.""‘ Orbital Resources has not presented sufficient reason on any of

these grounds to overturn the International Bureau‘s decision.

           Orbital Resources‘ primary argument is that milestones attach to a satellite,

regardless of whether distinct frequency authorizations have provided for the

construction and launch of that satellite. It also maintains that one satellite

automatically denotes one authorization. Orbital Resources argues that the Bureau‘s

Order concludes, "absent a scintilla of evidence," that Loral‘s Ku—band authorization

remains valid despite concluding that the separate authorization for a Ka—band payload

is null and void.""
           As an initial matter, Orbital Resources has erroneously assumed that the Bureau

bears the burden of providing "evidence" that Loral‘s Ku—band authorization is valid. On

the contrary, the Bureau is entitled to substantial deference when it interprets its own

orders, just as courts accord administrative agencies a higher level of deference when

agencies interpret their own rules. Indeed, "in construing administrative regulations, the

ultimate criterion is the administrative interpretation, which becomes of controlling

weight unless it is plainly erroneous or inconsistent with the regulation.""" The Bureau is

entitled to the same level of deference when it interprets its own prior orders. Here, the

Bureau‘s reading of relevant prior orders is supported by the language of the orders

themselves as well as its own administrative practices. Contrary to Orbital Resources‘

allegations, the Bureau‘s decision was consistent with the terms of Loral‘s


11         1d.

12
           Application for Review at 1—2.

13      Capital Network System, Inc. v. FCC, 28 F.3d 201, 206 (D.C. Cir. 1994), citing U.S. v. Larionoff,
431 U.S. 864, 872 (1977) (internal quotations omitted).



179539.1


authorizations and the public interest. The Bureau‘s decision is, therefore, not plainly

erroneous and must be upheld.

            In the Order, the Bureau clearly and accurately explained the rationale behind its

decision to uphold Loral‘s 47° W.L. Ku—band authorization. Consistent with the licenses

it issued to Loral, and decisions relating to those licenses, the Bureau concluded that,

although it was nullifying Loral‘s Ka—band authorization at 47° W.L. for failure to meet

the Ka—band milestones established in 1997, such action did not affect the underlying

Ku—band authorization at that orbital location.‘* The Bureau noted that when the Ku—

band frequencies were authorized, there were no milestone requirements for separate

systems satellites, and the Commission did not impose any implementation milestones

in that authorization. * Indeed, the Bureau also notes that, even today, there are no

milestone requirements for licenses granted under the separate systems policies.‘" In

its Ka—band Order, the Commission merely modified the Ku—band license to provide for

an additional Ka—band authorization and imposed milestones on the Ka—band portion of

the proposed hybrid satellite. The Bureau clearly states that "those milestone deadlines

were not intended to apply to the Ku—band portion of that satellite."""

           The language of the Ka—band Order supports and is consistent with the Bureau‘s

interpretation. The assignment of the 47° W.L. Ka—band frequencies and the associated

milestones were established in a separate, distinct authorization from the one

authorizing use of Ku—band frequencies. The Ka—band authorization includes an

14         Order at 4| 26.
15
           la




16
           &




w          Id. (emphasis added)



179539.1


extensive discussion of the milestone schedules to be imposed on first round Ka—band

 licensees and is focused solely on 28 GHz (Ka—band) systems."" in that paragraph,

there is no discussion of imposing milestones on Ku—band frequencies. The ordering

clauses of that license mention only the Ka—band frequencies authorized and include no

 language imposing milestones on Loral‘s Ku—band authorization or any rationale for

doing so. Orbital Resources‘ arguments to the contrary clearly do not comport with the

plain language of the Ka—band Order.

           In the final analysis, Orbital Resources essentially argues that the FCC modified

Loral‘s Ku—band authorization in the Ka—band Order sub silentio. This is not the

Bureau‘s interpretation, having stated that it will address milestone enforcement with

respect to the Ku—band frequencies once the Commission has developed a mechanism

to enforce such requirements on separate system satellites that do not have milestone

requirements." Orbital Resources‘ argument is also contrary to Section 316 of the

Communications Act of 1934, as amended."" The Commission may only modify Loral‘s

47° W.L. Ku—band authorization after providihg Loral written notice of such intention and

an opportunity to respond, in accordance with Section 316. Until and unless the

Commission does so, Loral‘s Ku—band license contains "no other conditions allowing

[the FCC] to revoke the license on the basis of construction status."""



18         Ka—band Order at 4| 26.
19         Order at 4| 26.
20         47 U.S.C. § 316.
21         In re Columbia Communications Corporation Petition to Revoke Authorization of Orion Satellite
Corporation, Order and Order on Reconsideration, 16 FCC Red 10867 at 15 (2001) ("Columbia
Revocation Order").



179539.1


           A.      Orbital Resources‘ Reliance on Specific Terms Used in Loral‘s Ka—
                   Band License is Inapt.

           As described above, the Ka—band Order discussed the imposition of milestones

and the rationale for doing so only as applied to the Ka—band frequencies. Orbital

Resources‘ primary "proof" that the Bureau really meant to apply Loral‘s Ka—band

milestones to Loral‘s Ku—band authorization is language in an ordering clause in the Ka—

band Order which states that "unless extended by the Commission for good cause

shown, each of the authorizations shall become NULL AND VOID in the event the

space station is not constructed, launched, and successfully placed into operation in

accordance with the technical parameters and terms and conditions of the

authorizations by the following dates.""" Orbital Resources also calls into question use

of the term "system milestone schedule.""*
           First, the use of the term "system milestone schedule" is used in every one of the

first round Ka—band licenses issued with milestones, whether the licenses were for one

satellite or a fleet of satellites.""* Moreover, the term "authorizations" is used

inconsistently in the Ka—band orders. For example, PanAmSat‘s Ka—band license

authorized it to launch two Ka—band satellites, each with its own construction

milestones. However, the relevant ordering clause states that "this authorization shall

22      Application for Review at 10 (citing Ka—band Order at «[ 32). Orbital Resources‘ position on this
issue changes frequently to serve its purpose. In some parts of its Application for Review, Orbital
Resources argues that the Ka—band Order replaced the Ku—band license, providing one authorization for
the Commission to revoke. Here, Orbital Resources argues that Loral has two authorizations, which are
both conditioned by one set of milestones.

23         Application for Review at 10 (citing Ka—band Order at 1 13).
24         See e.g., In re PanAmSat Licensee Corp. Application for Authority to Construct, Launch and
Operate a Ka—Band Satellite System in the Fixed—Satellite Service, Order and Authorization, 13 FCC Red.
1405 at f[ 11 (1997) ("PanAmSat Ka—band Order"); In re GE American Communications, Inc. Application
for Authority to Construct, Launch and Operate a Ka—Band Satellite System in the Fixed—Satellite Service,
Order and Authorization, 12 FCC Red. 6475 at {[ 13 (1997) ("GE Americom Ka—band Order").



179539.1


become NULL AND VOID" and required that the satellites be constructed in accordance

with the terms and condition of "the authorizations.""" The same language was used in

the relevant ordering clause in GE Americom‘s Ka—band license which authorized it to

launch nine Ka—band satellites located at five orbital locations pursuant to three sets of

milestones."° In the Orion Network Systems Ka—band license, the Bureau authorized

three satellites at three orbital locations with three sets of implementation milestones.

The relevant ordering clause is identical to that found in the Ka—band Order and states

that "each of the authorizations shall become NULL AND VOID" and that the satellites

be constructed in accordance with the terms and condition of "the authorizations."""

           Thus, Orbital Resources would have the Commission overturn an International

Bureau decision and revoke Loral‘s Ku—band authorization based on the imprecise use

of plurals in an ordering clause. This would clearly be an absurd result. One looks in

vain for any consistency in the use of the plural of "authorization" in the Ka—band orders

issued on May 8, 1997. It would be patently arbitrary and capricious for the

Commission to attach any weight to this wording.

           Loral has two authorizations at 47° W.L. These authorizations are licensed to

different entities, are subject to different rules and contain different conditions. Loral‘s

25         PanAmSat Ka—band Order at 4| 28.

26     GE Americom Ka—band Order at [ 32. The same language was found other Ka—band licenses
which imposed milestones. See In re Morning Star Satellite Company, L.L.C Application for Authority to
Construct, Launch and Operate a Ka—Band Satellite System in the Fixed—Satellite Service, Order and
Authorization, 12 FCC Red. 6039 at ([ 31 (1997); In re NetSat 28 Company, L.L.C Application for Authority
to Construct, Launch and Operate a Ka—Band Satellite System in the Fixed—Satellite Service, Order and
Authorization, 13 FCC Red. 1392 at 1| 31 (1997); In re VisionStar, Inc. Application for Authority to
Construct, Launch and Operate a Ka—Band Satellite System in the Fixed—Satellite Service, Order and
Authorization, 13 FCC Red. 1428 at [ 31 (1997).

27      In re Orion Network Systems, Inc. Application for Authority to Construct, Launch and Operate a
Ka—Band Satellite System in the Fixed—Satellite Service, Order and Authorization, 12 FCC Red. 23027 at
[ 31 (1997)




179539.1


Ka—band milestones were the creation of the distinct license that granted Loral Ka—band

authority at 47° W.L. The conditions of that license do not apply to Loral‘s 47° W.L. Ku—

band license. The Ka—band milestones, therefore, cannot survive revocation of the Ka—

band license. But the separate Ku—band authorization does survive.


           B.      The Commission Routinely Licenses the Use of Frequencies, Not
                   Just Satellites.

           Orbital Resources asserts that the Bureau‘s actions here are unprecedented. It

claims that "it is axiomatic that the FCC licenses satellites, not satellite payloads.""°
Nothing could be further from the truth. The Commission fundamentally licenses

payloads (i.e., the use of specific frequencies). Satellites are merely the vehicle by

which such frequencies are utilized. Further, the Commission routinely licenses

frequencies at the same orbital location to different entities — whether there are one or

multiple satellites at that location. Indeed, the Ku— and Ka—band frequencies at the 47°

W.L. orbital location are licensed to two separate entities. Loral Space &

Communications Corporation holds the license for the Ka—band frequencies while the

Ku—band frequencies are licensed to Loral Orion, Inc."° When the Bureau determined
that Loral Space & Communications Corporation had failed to meet the milestones

imposed in the Ka—band license, it appropriately revoked only Loral Space &

Communication Corporation‘s Ka—band license. Loral Orion, Inc. was therefore left with

its Ku—band license, which remains valid.




28
           Application for Review at 11.

29         Formerly Loral CyberStar, Inc.


179539.1


           Other examples that highlight the reality of licensing by frequency include 121°

W.L. where the Ku— and Ka—band frequencies are licensed to EchoStar (pursuant to two

different authorizations)"" and the C—band frequencies are licensed to Loral, but all

payloads are on one hybrid satellite. At 37.5° W.L., the Ku—band frequencies are

licensed to Loral and the C—band frequencies are licensed to Columbia Communications

Corp. ("Columbia"). Hughes Communications Galaxy, Inc. was assigned both the C—

and Ku—band frequencies at the 91° W.L. orbital slot by virtue of its acquisition of

Satellite Transponder Leasing Corporation."" Hughes was granted authority to launch a

hybrid satellite at that location using the two authorizations, despite the fact that the C—

band would remain vacant for several years."" Contrary to the assertions of Orbital

Resources, the Commission‘s satellite licensing scheme is inherently based on the

assignment of frequencies rather than merely the licensing of satellites.

           The last refuge of Orbital Resources is to claim that Loral has acquiesced in its

interpretation of the Ka—band Order by defending its compliance with the milestones with

respect to the hybrid Ku/Ka—band satellite. This argument is disingenuous. Loral

acknowledges that the Ka—band payload was a part of the planned hybrid satellite and,


°0         EchoStar has filed applications to modify its separate 121° W.L. Ku—band and Ka—band space
station authorizations in order to launch and operate a hybrid Ka/Ku—band satellite at that orbital location.
See, Public Notice, Satellite Space Applications Accepted for Filing, Report No. SAT—00145, Files Nos.
SAT—AMD—20030127—00003, SAT—AMD—20030127—0004 (rel. April 10, 2003).

31      in re Application of Hughes Communications Galaxy, Inc. and Satellite Transponder Leasing
Corporation for Replacement Satellite for SBS—4 and for Modification of Construction Permit and License
of Galaxy—6 Satellite, Order and Authorization, 6 FCC Red. 72 (1990).

32      Recognizing that the separate licenses had distinct requirements, the Commission noted that
"operators wishing to replace two single—band satellites with a hybrid satellite may anticipate finding that
the end—of—service lives of the single—band satellites do not coincide. Faced with this situation, an
operator may.....wait to launch the hybrid after both single—band satellites have reached their end—of
service lives and cause a gap in service at that location in one frequency band. The satellite operator is
in the best position to weigh the economic tradeoffs involved...." Id. at [ 11.



                                                    — 10—
179539.1


consistently, that the Ka—band milestones affected that hybrid satellite. Loral‘s

statements, however, must be fairly judged in the context that they were made. The

satellite for 47° W.L. was to be a hybrid. The Commission has recognized and

encouraged the use of hybrid satellites as they can be more efficient financially and

technologically than the operation of two single—band satellites at the same orbital

location."" Loral entered into a contract for the construction of such a satellite. Loral‘s

discussion and demonstration of compliance with the milestones that attached to the

Ka—band frequencies on the hybrid satellite does not constitute an admission that the

Ka—band Order applied such milestones to the separate Ku—band frequency

authorization.


III.       ORBITAL RESOURCES®‘ STANDING IN THIS PROCEEDING IS TENUOUS.

           Orbital Resources‘ standing in this proceeding is tenuous, at best. Orbital

Resources is not a satellite operator. Orbital Resources is not a satellite licensee. It

has no applications before the Commission to construct, launch and operate a satellite

at any location. Its attempt to obtain standing by relying on the dismissed 49° W.L.

satellite modification application of its former company, Columbia are misleading.**

Orbital Resources‘ interest in this proceeding is purely pecuniary.

           Clifford Laughton and Kenneth Gross, the principals of Orbital Resources and the

former owners of Columbia, are currently engaged in litigation concerning various

provisions of their April 2000 agreement to sell Columbia to GE American

33     Id. at [ 8. See also In re Application of Hughes Communications Galaxy, Inc., Order, 11 FCC
Red. 5532 at [ 6 (1995); In re Application of AT&T Corp., Order, 11 FCC Red. 15038 (1996).

34      The prior owners of Columbia attempted to modify its 1987 application for Ku—band authority at
49° W.L. to obtain Ku—band authority at 47° W.L. The Commission has vehemently denied these efforts.
See Columbia Revocation Order.


                                                 —11 —
179539.1


Communications, Inc. (which was subsequently acquired by SES Global, S.A., now

SES Americom, Inc.). The litigation involves Laughton‘s and Gross‘ asserted right to

receive a $10,000,000 windfall if they are able to obtain for Columbia (now operated as

a subsidiary of SES Americom) Loral‘s Ku—band authority at 47° W.L.*° To fulfill its part

of the contract, Orbital Resources apparently must, by September 1, 2003, persuade

the FCC to (1) revoke Loral‘s Ku—band 47° W.L. license; and (2) grant Columbia (an

entity with no affiliation to Orbital Resources) authority to construct, launch and operate

a Ku—band satellite at that location. In short, there is a bounty on the 47° W.L. Ku—band

orbital slot and both the Commission and Loral are being used in an attempt to collect it.

There is no public interest in such actions. The Commission should steadfastly avoid

being caught in the middle of a commercial dispute that has nothing to do with the

launching of satellites.

           Contrary to the assertions of Orbital Resources, neither SES Americom or

Columbia appear to have an ongoing interest in this proceeding. SES Americom and

Columbia have not fiied an Application for Review of the Bureau‘s Order. In response

to Orbital Resources‘ recent requests that the Commission revoke Loral‘s 47° W.L. Ku—

band authorization, counsel for SES Americom has publicly stated that "the former

owners of Columbia don‘t speak for Columbia in proceedings at the FCC or

elsewhere.""" SES Americom has filed letters with the Commission indicating that

recent submissions by Orbital Resources were not authorized by Columbia or SES



35         See Complaint [ 26, Gross v. SES Americom, Inc., Civil Action No. AW 03 CV 102 (D. Md.).
36         Orbital Resources Urges FCC to Reassign Loral License, Communications Daily at {[ 6 (July 11,
2002)


                                                    —12
179539.1


 Americom and that Columbia and SE Americom take no position on this matter."" SES

 Americom‘s initial participation in related proceedings apparently occurred only after

 Orbital Resources "aggressively insisted that pleadings be filed" and paid for the

 preparation of such filings."
           Ultimately, Orbital Resources seeks to promote its private, pecuniary interest by

wrapping it in the cloak of the public interest. The Commission should not be deceived.

Orbital Resources has no standing before the Commission on this matter. The only

entity that possibly has standing is Columbia — — and it has not filed here. Orbital

Resources has neither ownership nor control of Columbia and cannot stand in

Columbia‘s shoes.




37         See Letter from Philip L. Spector, Attorney for Columbia Communications Corporation and SES
Americom, Inc., to Donald Abelson, Chief, International Bureau, Federal Communications Commission,
FCC File Nos. CSS—83—002—P—(M), SAT—MOD—20000104—00045, SAT—LOA—19870331—00061, SAT—AMD—
19990511—00052, SAT—MOD—19990511—00051 (July 22, 2002). SES Americom says that its neutrality
was an accommodation to Orbital Resources. Defendant‘s Motion to Dismiss Counts I and II of Plaintiff‘s
Complaint at 10, Gross v. SES Americom, Inc., Civil Action No. AW 03 CV 102 (D. Md.)

38         Complaint 1| 31, Gross v. SES Americom, Civil Action No. AW 03 CV 102 (D. Md.).


                                                   —13 —
179539.1


IV.        CONCLUSION

           The International Bureau‘s decision to uphold Loral‘s Ku—band authorization at

47° W.L. was rational and consistent with Loral‘s Ku— and Ka—band licenses as well as

the Bureau‘s prior determinations on this matter. Orbital Resources provides no basis

for the Commission to vacate the provisions of the International Bureau‘s Order

validating Loral‘s 47° W.L. Ku—band authorization.


                                            Respectfully submitted,



                                          Jout YCk
                                            Philip L. Verveer
                                            Michael G. Jones
                                            Jennifer D. McCarthy
                                            Willkie Farr & Gallagher
                                            1875 K Street, NW.
                                            Washington, D.C. 20006
                                            (202) 303—1000

                                            Counsel for LORAL




May 6, 2003




                                             — 14 —
179539.1


                                  CERTIFICATE OF SERVICE


       I, Dennette Manson, do hereby certify that on this 6th day of May, 2003 copies of the

foregoing Loral Space & Communications Corp. and Loral Orion, Inc. Opposition to Application

for Review, In Part were delivered by hand, unless otherwise indicated, to the following parties:



Marlene H. Dortch                                 Thomas S. Tycz, Chief
Secretary                                         Satellite and Radiocommunications Division
Federal Communications Commission                 International Bureau
445 12th Street, SW                               Federal Communications Commission
Washington, DC 20554                              445 12"" Street, SW
                                                  Washington, DC 20554


Fern Jarmulnek, Deputy Chief                      Jennifer Gilsenan, Chief
Satellite Policy Branch                           Satellite Policy Branch
Federal Communications Commission                 International Bureau
445 12" Street, SW                                Federal Communications Commission
Washington, DC 20554                              445 12"" Street, SW
                                                  Washington, DC 20554


David E. Horowitz, Esq.                           Howard Griboff
Office of the General Counsel                     International Bureau
Federal Communications Commission                 Federal Communications Commission
445 12"" Street, SW, Room 8—A636                  445 12"" Street, SW
Washington, DC 20554                              Washington, DC 20554


Raul R. Rodriguez                                 Phillip L. Specter, Esq.
David S. Keir                                     Paul Weiss Rifkind Wharton & Garrison
Leventhal Senter & Lerman, LLC                    1615 L Street, N.W.
2000 K Street, NW., Suite 600                     Suite 1300
Washington, DC 20006                              Washington, DC 20036
Counselfor Orbital Resources LLC                  Counselfor SES Americom


Tara Giunta*
Coudert Brothers
1627 I Street, N.W.
Suite 1200
Washington, D.C. 20006
Counselfor Pacific Century Group, Inc.




                                     )punitie IMirem
*Delivered by first class, postage prepaid mail



Document Created: 2007-03-16 18:53:55
Document Modified: 2007-03-16 18:53:55

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