Attachment 2002EchoStar-Northpt

2002EchoStar-Northpt

PETITION FOR RECONSIDERATION submitted by Northpoint; Broadwave

pet

2002-02-11

This document pretains to SAT-MOD-20010810-00071 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD2001081000071_844443

         KELLOGG, HUBER, HanNSEN, TOoDpD & EvANS, PLLC.
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                                                                         WRITER‘S DIRECT DIAL:      202—326—17985
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                                    February—11, 2002,. _
                                              ECEIVEE}
VIA HAND DELIVERY                               FEB $1.2007                          EX PARTE
William F. Caton                         FEOERAL COMMUNICANIORS COMMISSiON
Acting Secretary                              OFFICE oF ThE secretany
 ederal Communications Commission
445 12"" Strget, S.W.
Washington, D.C. 20554

Re:    Application of EchoStar Satellite Corp. for Authority to Make Minor
       Modification to Direct Broadcast Satellite Authorization and for Authority to
       Launch and Operate EchoStar 7 Satellite; SAT—MOD—20010810—00071; SAT—
       A/€)>—20010810—00073

Dear Mr. Caton:

       Enclosed for filing please find an original and eight copies of a Petition for
Reconsideration by Northpoint Technology, Ltd., and Broadwave USA, Inc. in the
above—captioned matter, four for inclusion in file SAT—MOD—20010810—00071 and for
inclusion in file SAT—A/O—20010810—00073.
       I have enclosed an additional copy for date—stamp and return in the self—addressed
envelope provided. Thank you for your assistance in this matter.
                                               Yours sincerely,


                                                 QGW‘:&_—
                                               J.C. Rozendaal
                                               Counselfor Northpoint Technology, Ltd.
                                               and Broadwave USA, Inc.

attachments

                                                                        No. of Copias rec’d_fi_tg__
                                                                        List A6CDE


                                         Before the
                   FEDERAL COMMUNICATIONS COMMISSION REC E IVE [}
                                 Washington, D.C. 20554

                                                                               FEB 1 1 2002
                                              )                         PEDERAL COMMUNICATIONS COMMISSIO®
In the Matter of                              )                              OFFICE OF TXE SECRETARY
                                              )
Application of EchoStar Satellite Corp.       )       File Nos. DBS 88—01;DBS 88—02;
for Authority to Make Minor Modification      )       SAT—MOD—20010810—00071;
to Direct Broadcast Satellite Authorization   )       SAT—A/O—20010810—00073
and for Authority to Launch and Operate       )
EchoStar 7 Satellite                          )
                                              )

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

                       PETITION FOR RECONSIDERATION

       On January 15, 2002, acting pursuant to delegated authority, the Satellite and

Radiocommunication Division (the "Division"), granted the application of EchoStar

Satellite Corp. ("EchoStar") for authority to launch and operate the EchoStar 7 satellite

for use in Direct Broadcast Satellite ("DBS") service.‘ Northpoint Technology, Ltd. and

Broadwave USA, Inc. (collectively, "Northpoint"), which participated in the licensing

proceedings, hereby petition for reconsideration of that decision. Northpoint respectfully

suggests that the Division acted arbitrarily and capriciously and that the decision is not

supported by substantial evidence in the record as a whole. It very clearly does not serve

the U.S. public interest to devote precious resources for potential service to Mexico City

when there is such a pressing need for service in this country.




‘ See Order and Authorization, EchoStar Satellite Corporation Application for Minor
Modification ofDirect Broadcast Satellite Authorization, Launch and Operating
Authorityfor EchoStar 7, SAT—MOD—20010810—00071, SAT—A/O0—20010810—00073, DA
02—118 (SRD—IB rel. Jan. 16, 2002).


       EchoStar has the burden of demonstrating to the Commission that the granting of

its application will promote the public interest, convenience, and necessity. The sole

public—interest benefit that EchoStar proffered in support ofits application was that the

EchoStar 7 satellite would carry local TV signals in more markets than is currently

possible, thus facilitating compliance with the must—carry provisions of the Satellite

Home Viewer Improvement Act ("SHVIA"). EchoStar claimed in its application that it

wanted "to provide service that is a closer substitute to cable offerings, as envisioned by

Congress. * Yet one of EchoStar‘s spot beams is aimed squarely at Mexico City rather

than at any U.S. television market.

       EchoStar‘s application itself offered no explanation for EchoStar‘s decision not to

direct all of its spot beams to locations within the United States. In fact, the main body of

the application did not even acknowledge that EchoStar would be devoting one of its

beams to the largest city in the Western Hemisphere, in Mexico, rather than to a smaller

U.S. city. EchoStar conveniently buried that fact in a technical annex. Both Northpoint

and the National Association of Broadcasters ("NAB") commented that the Division

should reject the application and require EchoStar to serve some of the 100 million U.S.

consumers who cannot get local TV signals via satellite instead of devoting scarce

transponder resources to foreign consumers."

       If EchoStar had sought to justify leaving a U.S. local television market unserved

by relying on the supposed public interested benefits that might accrue through serving


 EchoStar Application at 2.
* See Letter from Henry L. Baumann and Benjamin F.P. Ivins, NAB, to Magalie Roman
Salas, FCC (Sept. 24, 2001); Petition of Northpoint Technology Ltd., and Broadwave
USA, Inc., to Stay Proceedings Pending Disclosure and Analysis of Data Regarding
Planned Signals (Sept. 24, 2001).


Mexico City, then the parties could have debated the merits of that issue before the

Division. But EchoStar did no such thing; instead, it responded by denying any present

intention actually to serve customers in Mexico." EchoStar belatedly sought to excuse its

failure to bring local signals to more U.S. customers by sudderly asserting — without

offering or citing any evidence whatsoever — that directing the Mexico City spot beam to

the U.S. would risk causing harmful interference to other U.S.—oriented spot beams."

        EchoStar‘s claim that it cannot fit more than 12 spot beams from EchoStar 7 into

the continental United States ("CONUS") without risking harmful interference is

implausible, in view of DIRECTV‘s plan (recently approved by the Division) to direct

more than 25 spot beams from the DIRECTV 48 satellite at the U.S. The maps attached

to this Petition show the planned EchoStar 7 and DIRECTV 48 spot beams, as revealed

in their respective applications. Even a cursory comparison of the maps suggests quite

clearly that there are plenty of spots in the U.S. that EchoStar could target without risking

harmful self—interference.

       EchoStar‘s utter failure to document any technical difficulty with serving another

U.S. local television market — indeed, its utter failure even to identify which beams might

be subject to interference — renders EchoStar‘s claims about technical difficulties frankly

incredible. EchoStar‘s uncorroborated assertion of an unidentified technical problem




* See EchoStar Opposition at 8 ("EchoStar has no immediate plans to serve Mexico.").
° See, e. g., id. at 6 ("EchoStar has decided to place a spot beam over Mexico City because
the satellite‘s complex architecture . . . could not feasibly accommodate an additional
spot beam over any part of the continental United States.")


provides an inadequate basis for the Division‘s decision to authorize the launch and

operation of EchoStar 7.°

        The Division‘s decision to authorize the launch and operation of EchoStar 7

appears to rest on three grounds, each of which is flawed. First, the Division appears to

have accepted Echostar‘s assertions about technical difficulties at face value.‘ Next, the

Division brushed aside the concerns about the Mexico spot beam raised by Northpoint

and the NAB by saying that the SHVIA does not itself require that all the spot beams

point into the conUs. Finally, the Division noted that the Commission allows DBS

operators to offer service outside the United States, thus implicitly basing its decision in

part on whatever public interest benefits that may accrue from such international

broadcasts." With due respect to the Division, Northpoint respectfully suggests that its

reasoning does not support the conclusion that the launch and operation of EchoStar 7 is

in the public interest.

        To the extent that the Division‘s decision rests on an uncritical acceptance of

EchoStar‘s spurious argument that technical difficulties kept it from serving an additional

U.S. local television market, the decision is unsupported by substantial evidence in the


° EchoStar‘s assertion that the putative interference may not be with EchoStar 7‘s spot
beams but also with "those of the forthcoming EchoStar 8 and other satellites in our
system," is unavailing. 4 at 7. The EchoStar 8 application has not been filed and it is
impossible to tell what other present or future satellites EchoStar might have in mind,
making it impossible to identify, much less to evaluate, the supposed interference risk.
EchoStar‘s appeal to unspecified beams on unspecified satellites provides no opportunity
for the Division or anyone else to evaluate the merits of EchoStar‘s convenient technical
impediment.
" See Order and Authorization € 4 (repeating EchoStar‘s assertion that "it could not
technically direct this beam into the United States without causing harmful self—
interference into other spot beams in EchoStar‘s fleet").
8 Id. 5.


record as a whole and is therefore arbitrary and capricious. The record is utterly devoid

of any explanation of EchoStar‘s supposed technical problem, much less any factual

showing to support the assertion of a technical problem.

        As for the Division‘s second point, the relevant question is not whether SHVIA

by its terms mandates that all spot beams go into the U.S. Instead, the question is

whether it is arbitrary and capricious to grant a launch application when:

       (i) the only purpose for the launch cited by EchoStar in its application is to

increase local—into—local rebroadcasting in U.S. local television markets;

       (ii) the only reason given by EchoStar for not providing local—into—local

rebroadcasting in an additional U.S. local television market is that it is technically

impossible to do so; and

       (iii) there is not a shred, not a scrap, not a single iota of evidence in the record

supporting the notion that it is in fact technically impossible to do so.

       Under these circumstances, EchoStar‘s own logic in support of its application

requires that it provide some evidence tending to support the existence of its newfound

technical impediment.

       Finally, the Division cannot salvage its decision by relying on whatever public

interest benefits that might accrue from serving Mexico City because EchoStar has

specifically disclaimed any present intention to serve Mexico City. Furthermore, satellite

orbital locations and spectrum bands are scarce resources, of which the U.S. is allocated

only a limited amount by international treaties. It very clearly does not serve the U.S.

public interest to devote these precious resources to possibly serving Mexico City when



Td


there is such a pressing need for service in this country, where some 100 million people

cannot receive local TV signals via satellite. EchoStar already carries fewer local TV

stations in the U.S. than DIRECTV, a fact that underscores the need for EchoStar to use

its resources to reach Americanmarkets rather than squandering scarce resources on a

speculative future service to Mexico. Moreover, if EchoStar really did have to point a

beam outside the CONUS, it could provide service to the U.S. possession of Puerto Rico.

       Where, as here, the only proffered objective of a new satellite is to increase

service to U.S. local television markets, the Commission fails to fulfill its obligation to

engage in reasoned decisionmaking when it allows EchoStar to shirk on service to U.S.

consumers in un—served or underserved local TV markets in the absence of any evidence

in the record to suggest the existence of the all—too—convenient technical problem that is

EchoStar‘s only excuse for the shirking.

       Unless and until EchoStar either modifies its proposal to aim all of its spot beams

at U.S. consumers, the Division should reconsider its decision and deny authority to

launch and operate EchoStar 7.

                                              Respectfully submitted,
                                              NORTHPOINT TECHNOLOGY, LTD.
                                              AND BROADWAVE USA, INC.

February 11, 2001                                                (iz        !     Z
                                              By:
Antoinette Cook Bush                                  J.C. RozendaaP
Northpoint Technology, Ltd.                           Kellogg, Huber, Hansen,
444 North Capitol Street, N.W.                          Todd & Evans, P.L.L.C.
Suite 645                                             Sumner Square
Washington, D.C. 20001                                1615 M Street, N.W., Suite 400
 (202) 737—5711                                       Washington, D.C. 20036
                                                      (202) 326—7900
                         Counselfor Northpoint Technology, Ltd.
                                 and Broadwave USA, Inc.


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                                CERTIFICATE OF SERVICE

       I, Shonn Dyer, hereby certify that on this 11th day of February, 2002, copies of the
foregoing were served by hand delivery* and/or first class United States mail, postage prepaid,
on the following:
William F. Caton*
Acting Secretary                                    Kenneth Ferree, Chief*
Federal Communications Commission                   Cable Service Bureau
445 12"" Street, SW                                 Federal Communications Commission
Room TW—B204                                        445 12"" Street, SW
Washington, D.C. 20554                              Washington, D.C. 20554

Peter Tenhula, Senior Legal Advisor*                Roy Stewart, Chief*
Office of the Chairman                              Mass Media Bureau
Federal Communications Commission                   Federal Communications Commission
445 12" Street, SW                                  445 12"" Street, SW
Washington, D.C. 20554                              Washington, D.C. 20554

Bryan Tramont, Senior Legal Advisor*                Henry L. Baumann
Office of Commissioner Abernathy                    Benjamin F.P. Ivins
Federal Communications Commission                   National Association of Breadcasters
445 12"" Street, SW                                 1771 N Street, N.W.
Washington, D.C. 20554                              Washington, D.C. 20036

Paul Margie, Spectrum & International               Antoinette Cook Bush
  Legal Advisor*                                    Northpoint Technology, Ltd.
Office of Commissioner Copps                        444 North Capitol Street, N.W.
Federal Communications Commission                   Suite 645
445 12"" Street, SW                                 Washington, D.C. 20001
Washington, D.C. 20554
                                                    Pantelis Michalopoulos
Monica Shah Desai, Interim Legal Advisor*           Rhonda M. Bolton
Office of Commissioner Martin                       Steptoe & Johnson LLP
Federal Communications Commission                   1330 Connecticut Avenue, NW
445 12"" Street, SW                                 Washington, D.C. 20036
Washington, D.C. 20554

Thomas Tycz, Chief*
Satellite and Radiocommuncations Division
International Bureau
Federal Communications Commission
445 12"" Street, SW
Washington, D.C. 20554                              Shonn Dyer



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Document Modified: 2019-04-09 06:24:53

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