Attachment DA-00-1305A1.pdf

DA-00-1305A1.pdf

ORDER & AUTHORIZATION submitted by FCC, SRD

Grant

2000-08-28

This document pretains to SAT-MOD-20000523-00095 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD2000052300095_992683

                      FEDERAL COMMUNICATIONS COMMISSION                                  DA 00-1305

                                           Before the
                               Federal Communications Commission
                                     Washington, D.C. 20554

                                                    )
In the Matter of                                    )
                                                    )
EarthWatch Incorporated                             )
                                                    )
Modification of Authorization to                    )        File No. SAT-MOD-20000523-00095
Construct, Launch and Operate a                     )
Remote Sensing Satellite System                     )
                                                    )


                                 ORDER AND AUTHORIZATION

        Adopted: August 28, 2000                             Released: August 29, 2000

By the Chief, Satellite and Radiocommunication Division, International Bureau:

                                        I. INTRODUCTION

        1. By this Order, we modify the construction completion and launch milestone deadlines
for two Low-Earth Orbiting (LEO) satellites to be operated by EarthWatch Incorporated
(EarthWatch). This action will enable EarthWatch to adequately test and evaluate its satellite
components, thereby ensuring reliable remote sensing service to its customers.

                                         II. BACKGROUND

        2. EarthWatch was the first company to propose a commercial remote-sensing satellite
system pursuant to the Land Remote Sensing Commercialization Act.1 Remote-sensing satellites
use in-orbit passive optical sensors to measure light reflected from the earth’s surface, and then
transmit that information to a central earth station where it is transformed into useable
information about the “remotely sensed” subject matter.2 Satellite remote-sensing systems can be
used for mapping, resource conservation, law enforcement, national security, environmental
monitoring, and forecasting functions.3

        3. In 1997, the International Bureau (Bureau) authorized EarthWatch to construct,
launch, and operate two remote-sensing satellites, QuickBird-1 and QuickBird-2. 4 The Bureau

        1
                  Application of EarthWatch Incorporated For Authority to Construct, Launch and Operate
a Remote Sensing-Satellite System, Order and Authorization, 10 FCC Rcd 10467, 10467 (para. 3) (Int'l
Bur., 1995) (EarthWatch Authorization Order), citing Land Remote Sensing Commercialization Act, 15
U.S.C. § 4201 et seq.
        2
                   EarthWatch Authorization Order, 10 FCC Rcd at 10467 (para. 2).
        3
                   EarthWatch Authorization Order, 10 FCC Rcd at 10468 (para. 6).
        4
                   EarthWatch Incorporated, Order and Authorization, 12 FCC Rcd 21637, 21638 (para. 5)
(Int'l Bur. 1997) (First EarthWatch Modification Order).


                       FEDERAL COMMUNICATIONS COMMISSION                                DA 00-1305

originally established a construction completion deadline of July 1998 and a launch deadline of
August 1998 for both QuickBird-1 and QuickBird-2.5 At the request of EarthWatch and upon a
sufficient showing, the Bureau later extended the milestones for those two satellites to June 2000
(construction completion), and August 2000 (launch).6

        4. Prior to those deadlines, EarthWatch requested an extension of the construction
completion deadline for QuickBird-2 to December 2000, and the launch deadline to December
2001. The Division found that EarthWatch justified an extension, though not for the full amount
requested. The Division provided a construction completion milestone for QuickBird-2 of
December 2000, and a launch deadline of April 2001.7 In EarthWatch's request to extend the
QuickBird-2 milestones, it did not seek extension of the milestones for QuickBird-1.8

        5. Continuing to be faced with external obstacles in its attempts to complete construction
and launch, EarthWatch now requests an extension of the QuickBird-1 construction completion
milestone from June 2000 to November 2000, and the launch milestone from August 2000 to
April 2001.9 EarthWatch also seeks an extension of the QuickBird-2 construction completion
milestone from December 2000 to May 2001, and the launch milestone from April 2000 to
December 2001.10 Alternatively, EarthWatch seeks a waiver of Section 25.117(e)(1), governing
milestone extension requests.11 Following public notice, no comments or oppositions were filed
in response to EarthWatch’s request.

                                         III. DISCUSSION

         6. We find that EarthWatch has justified its request for extension of its satellite
construction completion and launch milestones for QuickBird-1 and QuickBird-2. The request
for QuickBird-1 is based on the deficiency of a critical component of the remote sensing satellite,
the laser gyroscope. EarthWatch explains that, as it was completing construction of QuickBird-1
in January 2000, it learned from industry reports that the model of laser gyroscope it used in
QuickBird-1, provided by Allied Signal (now L3 Navigation Systems), was experiencing
degraded on-orbit performance for several recently launched commercial and governmental
spacecraft.12 Because relying on that malfunctioning laser gyroscope could "sharply [limit] the
operational and commercial capabilities of the spacecraft," EarthWatch decided it was necessary
to replace it with a gyroscope provided by another manufacturer.13 In order to minimize the
        5
                 First EarthWatch Modification Order, 12 FCC Rcd at 21643 (para. 19).
        6
                   EarthWatch Incorporated, Order and Authorization, 12 FCC Rcd 19556, 19560 (para. 13)
(Int'l Bur. 1997) (Second EarthWatch Modification Order).
        7
                EarthWatch Incorporated, Modification of Authority to Construct, Launch and Operate a
Remote Sensing-Satellite System, Order and Authorization, DA 00-909 (Int'l Bur., Satellite and
Radiocommunication Div., released Apr. 24, 2000) (Third EarthWatch Modification Order).
        8
                 See Third EarthWatch Modification Order at para. 10.
        9
                 EarthWatch Request at 1.
        10
                 EarthWatch Request at 1.
        11
                 EarthWatch Request at 2.
        12
                 EarthWatch Request at 1.
        13
                 EarthWatch Request at 1.

                                                   2


                       FEDERAL COMMUNICATIONS COMMISSION                                  DA 00-1305

extension of time EarthWatch would need to request as a result of this unforeseen technical
problem, EarthWatch states that it paid a premium to expedite delivery of the new gyroscope.14
EarthWatch states further that the replacement gyroscope is scheduled to be delivered in August
2000.15 EarthWatch maintains that it will integrate the gyroscope into the satellite, complete the
necessary environmental testing, and complete construction of QuickBird-1 by November 2000.16
EarthWatch also expects to launch QuickBird-1 by April 2001.17

         7. EarthWatch also requests an extension of the construction completion and launch
milestones for QuickBird-2. EarthWatch seeks to extend the construction completion milestone
from December 2000 to May 2001, and the launch deadline from April 2001 to December 2001.18
EarthWatch asserts that it needs at least six months after the launch of QuickBird-1 to finish
testing all the components of QuickBird-2 and to correct any deficiencies if necessary.19 In one
of its earlier extension requests, EarthWatch also observed that it would be preferable not to
launch QuickBird-1 and QuickBird-2 at the same time, so that EarthWatch can benefit from its
experiences with QuickBird-1 before launching and operating QuickBird-2. 20

         8. Generally, we grant milestone extensions only for circumstances beyond the control of
the licensee.21 For example, we have found in the past that unanticipated technical problems can
justify a milestone extension.22 The circumstances presented by EarthWatch are consistent with
this standard. EarthWatch has shown convincingly that its original gyroscope is not likely to
work as planned and this component failure would seriously impact its proposed service. In
addition, EarthWatch has more than commenced construction of QuickBird-1 and QuickBird-2.
Construction well underway and is progressing. In addition, EarthWatch has taken proactive

        14
                 EarthWatch Request at 1.
        15
                 EarthWatch Request at 1-2.
        16
                 EarthWatch Request at 1-2.
        17
                 EarthWatch Request at 2.
        18
                 EarthWatch Request at 2.
        19
                 EarthWatch Request at 2.
        20
                 Third EarthWatch Modification Order at para. 7.
        21
                  47 C.F.R. § 25.117(e)(1). See also MCI Communications Corporation, Memorandum
Opinion and Order, 2 FCC Rcd 233 (1987) (MCI Order); Hughes Communications Galaxy, Order and
Authorization, 5 FCC Rcd 3423, 3424 (Com. Car. Bur. 1990); National Exchange Satellite, Inc.,
Memorandum Opinion and Order, 7 FCC Rcd 1990, 1991 (para. 8) (Com. Car. Bur. 1992); Columbia
Communications Corporation Application for Amendment to Pending Application to Extend Milestones,
Memorandum Opinion and Order, DA 00-702 (Int'l Bur., released Apr. 5, 2000) (Columbia Milestone
Order).
        22
                  See AMSC Subsidiary Corporation, Application for Modification of Construction Permit
and License for the AMSC-1 Satellite, Order and Authorization, 10 FCC Rcd 3791 (Satellite and
Radiocommunication Div., 1995) (short milestone extension granted to permit licensee to resolve
unanticipated technical problems with antenna); American Telephone and Telegraph Company,
Application for Modification of Construction Permit and License for the Telstar 402 Satellite, Order and
Authorization, 9 FCC Rcd 2607 (Domestic Facilities Div., 1994) (short milestone extension granted to
permit licensee to resolve unanticipated technical problems).


                                                   3


                        FEDERAL COMMUNICATIONS COMMISSION                                   DA 00-1305

steps to mitigate the delay caused by external factors. Furthermore, the extensions sought here
are relatively brief, and commensurate with the time needed to complete construction and launch
of the satellites. For all these reasons, grant of these extensions would serve the public interest.

         9. Because EarthWatch has commenced construction of both its satellites, it has shown a
firm commitment to proceed with its business plan. Therefore, this case is distinguishable from
cases in which the licensee seeks extension of a construction commencement milestone.23 If a
licensee does not even begin construction of its satellite by the date specified in its license, it
raises substantial doubts as to whether the licensee intends to or is able to proceed with its
business plan.24 Furthermore, EarthWatch faced technical problems that, if left unaddressed,
could have drastically reduced the remote sensing capabilities and thus impair service to its
customers.25 Consequently, EarthWatch's milestone extension request is based on tangible,
physical, construction-related concerns, rather than nebulous assertions such as "regulatory
uncertainty or technological advancements." 26 EarthWatch's milestone extension request also is
distinguishable from several cases in which licensees sought milestone extensions for business
reasons or economic considerations. Such factors are within the control of the licensee, and so
cannot justify a milestone extension.27



        23
                  See NetSat 28 Company, L.L.C., Memorandum Opinion and Order, DA 00-1264 (Int'l.
Bur., released June 26, 2000) (NetSat Order); Morning Star Satellite Company, L.L.C., Memorandum
Opinion and Order, DA 00-1265 (Int'l. Bur., released June 26, 2000) (MorningStar Order); PanAmSat
Licensee Corp., Memorandum Opinion and Order, DA 00-1266 (Int'l. Bur., released June 26, 2000)
(PanAmSat Order).
        24
                  See NetSat Order; MorningStar Order; PanamSat Order. See also AMSC Subsidiary
Corporation, Applications to Modify Space Station Authorizations in the Mobile Satellite Service,
Memorandum Opinion and Order, 8 FCC Rcd at 4042 (para. 13) (failing to begin construction raises
questions regarding the licensee's intention to proceed); Norris Satellite Communications, Inc., Application
for Review of Order Denying Extension of Time to Construct and Launch Ka-band Satellite System,
Memorandum Opinion and Order, 12 FCC Rcd 22299, 22306 (para. 17) (Norris Review Order) (by failing
to commence construction or request extension within the milestone deadline, licensee in that Order did not
demonstrate a commitment to proceed with its proposed system). See also AMSC Order, 8 FCC Rcd 4040,
4042-43 (para. 14) (1993) (construction commencement demonstrates intention to proceed with business
plan); Application of GE American Communications, Inc., for Orbital Reassignment and for Modification
of Authorization to Construct and Launch the Satcom H-1 Domestic Fixed-Satellite, Memorandum Opinion
and Order, 7 FCC Rcd 5169, 5169 (para. 3) (Com. Car. Bur. 1992) (construction commencement
demonstrates intention to proceed with business plan).
        25
                 See EarthWatch Request at 1.
        26
                   Columbia Milestone Order at para. 10; Norris Review Order, 12 FCC Rcd at 22308
(para. 21) (a claim of "regulatory uncertainty" does not constitute an independent basis for granting a
milestone extension request, and so does not warrant an otherwise unjustified milestone extension);
Advanced Communications, Application for Extension of Time to Construct, Launch and Operate a Direct
Broadcast Satellite System, Memorandum Opinion and Order, 11 FCC Rcd 3399, 3412 (paras. 30-32)
(1995) (Advanced Order) (Promoting technological development cannot substitute for concrete progress
towards construction and operation of system).
        27
                 Advanced Order, 11 FCC Rcd at 3409 (para. 22); American Telephone and Telegraph
Company and Ford Aerospace Satellite Services Corporation, Memorandum Opinion and Order, 2 FCC
Rcd 4431, 4434 (para. 26) (1987); MCI Order, 2 FCC Rcd at 234 (para. 7), citing Rock City Broadcasting,
Inc., 52 FCC 2d 1246, 1250 (1975); Community Broadcasters of Cleveland, Inc., 58 FCC 2d 1296, 1300
(1976).

                                                     4


                      FEDERAL COMMUNICATIONS COMMISSION                             DA 00-1305


                                 IV. ORDERING CLAUSES

       10. Accordingly, IT IS ORDERED that Application File No. SAT-MOD-20000523-
00095 IS GRANTED. EarthWatch IS GRANTED authority to reschedule the construction
completion and launch milestones of QuickBird-1 to November 2000 and April 2001, and to
reschedule the construction completion and launch milestones of QuickBird-2 to May 2001 and
December 2001.

         11. IT IS FURTHER ORDERED that, unless extended by the Commission for good
cause shown, this authorization shall become NULL AND VOID in the event the space stations
are not launched and successfully placed into operation in accordance with this authorization by
the following dates:

                Complete Construction            Launch
QuickBird-1     November 2000                    April 2001
QuickBird-2     May 2001                         December 2001

         12. IT IS FURTHER ORDERED that this Order is issued pursuant to Section 0.261 of
the Commission’s Rules, 47 C.F.R. § 0.261, and that this Order is effective upon the date of its
release.

         13. IT IS FURTHER ORDERED that, except as modified by this Order, the EarthWatch
Authorization Order, 10 FCC Rcd 10467 (Int'l Bur. 1995), First EarthWatch Modification Order,
12 FCC Rcd 21637 (Int'l Bur. 1995), Second EarthWatch Modification Order, 12 FCC Rcd
19556 (Int'l Bur. 1995), and Third EarthWatch Modification Order, DA 00-909 (Int'l Bur.,
Satellite and Radiocommunication Div., released Apr. 24, 2000), remain in full force and effect.


                                         FEDERAL COMMUNICATIONS COMMISSION




                                         Thomas S. Tycz
                                         Chief,
                                         Satellite and Radiocommunication Division




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Document Modified: 2019-04-10 23:58:17

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