Attachment MOO

MOO

MEMORANDUM OPINION AND ORDER submitted by FCC,IB

MOO

2005-06-20

This document pretains to SAT-MOD-20040915-00178 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD2004091500178_437919

Federal Communications Commission ba 051608 Before the Federal Communications Commission Washington, D.C. 20554 In the Mater of ) ) WB Holdings 1 LLC ) ) File No: SAT—MOD—20040015—00178 Application for Extension of ) Launch and Operation Milestone ) calsimszn ) ) ) MEMORANDUM OPINION AND ORDER Adopted: June20, 2005 Released: June 20, 2008 By the Chict, Stelite Division, Iternational Bureau INTRODUCTION 1. By this Order, we grant WB Holdings 1 LLC‘s (WB Holdings) a one—year extension of its June 25, 2005 milestone to launch and operate is Ka—band satelite, WildBlue—. T light of WB Holdings‘ continuing effort to construct WildBlue—despite the spacecraft manufacturers bankmuptey and the in—orbit filure f a similar satelte, we will afford WB Holdings additionaltime in which to arrange for thsatelites launch. Nevertheless, we will not grant WB Holdingsits requested 18—month extension of time. Because the issues underlying the extension request have been resolved, we find thata oneyear extension,to June25, 2006, will provide WB Holdings sufficient time in which to Iaunch WikdBlue—L 1. BACKGROUND 2. In 1997, the International Bureau authorized the predecessor of WB Holdings t Iaunch and operate a geostationary sateliteorbit (GSO) system atthe 109.2° W.L.orbtal location to provide fixed« satelfie service in the Kacband." The Bureau modified thliense in 2001 to authorize inr—satelitelinks ! KaStr Stelite Communications Corp, Order and Authoriation, 13 FCC Red 1366 (1977). See Public Notc, Report No. SAT—00142, 18 FCC Red 5986 PnBur 2003).. In a series onamechanges and proforma transfers of contol and assinments, KaStar becameSwhich n turn became WildBlye Communications,c. See Leter from William M. Witshir, Counsl, WB Holdings, to MagalRoman Salas, Scretry, Federal Communications Commission (November3, 2000) Seealso Letefom Wiliam M. Wilshir, Counsl, W Holdings, o Magalie Roman Salas, Seereury, Rederl Communications Commisson (January $ 2001) requesting proforma assignment of th icnse held by KaStar 73 Acquisiion LLC o KaStar 1092 and tchange th name ofthe survivingentty to WB Holdings 1 LLC. The lenses,WB Holdings 1 LLC, is a wholly ouned subsidiry of WildBluc Communications, Inc. The recordfor thisapplcationincludeinformaton from both WiliBizeand WB Holdings. For purposesofthis Order, werefer only o WB Holdings

Federal Communications Commission DA 05—1608 and to assign implementation milestones forthe construction launch and operation of the stelite. Pursuant to ts authorization, WB Holdings had to commence constration of ts satelite by January 2002 and launch itby th International Telecommunication Union (TTU) "bringing—intouse" date, which i June 25, 2005 in June 2002, the International Bureau released a public notice stating that WB Holdings had satised is constrction commencement milestone." WB Holdings satisfed this milestone by entering intoa non— contingentsatelite manuficturing contract with Space Systems/Loral (Loral). 3. In September 2004, WB Holdings filed a modification application to extend it aunch and operation milestone for 18—months, to December 25, 2006In the application, WB Holdings states thatthe constration ofWildBIue—1 is completeand that oncefnal tesing is concluded, WildBlue—1 willbe ready for delivery.® WB Holdings furtherstatesthat an extension of the launch and operation milestone for WildBlue—1 is needed due to Loral‘s bankruptey.. As aresult o the bankniptcy, Loral had the option to perform under the contract,orto reject the contract i hat option was more favorable to the bankrupt estite. WB Holdings satesthat Loral‘s Plan of Reorganization for the bankrupteydid not disclose how t would treatthe WildBlue—J contract. Thus, although it continued making payments under the contract, WB Holdings sttes that it did not know when, or if, it would be able to take possession ofthe satelite. Given this uncertaint, WB Holdings maintsins it is unreasonable t expect t to commit th tens of millons of dollars necessary o secure a launch date® This circumstance, WB Holdings sttes, is beyond its contrl and justiies an extension of the milestone. WB Holdings assents tharigid enforcement ofthe lanch milestone in this instance is not necessary because there is noconcem that it is warehousing valuablespectrum and satellit resources." Rather,WB Holdings states t has invested hundreds of millions ofdollars nto ts satellit system and that it would have satisfed the Iunch milestone except for Loral‘s intervening bankruptcy, something it could not have anticipated and over which it has no control. WB Holdings assents that it is commited to proceed with ts lcense and that Commission precedent supports an extension in this instance® WB Holdings sttes that an 18—month extension would provide suficient time to clear the Loral bankruptcy and arrange for launch." 4. On October 18, 2004, WB Holdings notifed the Commission thatthe uncertanty regarding the status of WildBlue—1 arising from the Loral bankruptey had been successfully resolved.." WB Holdings 1 LLC, Onder and Auhorizarion, 16 FCC Red 2513 nI Bur, 2001) * Pubiic Notice, Intemational Bureau Satelite Diisin Information: Fst Round Ka—band Licensee Compllance with Constraction Implementation Mlestne, Report SPB—179, 17 RCC Red 11271 (In‘I Bu. 2002) " WB Holdings 1 LLC, Appliatiofor Extension of.aunch and Opertion Milestone, SAT—MOD—200:0915— 00178, ied Sept. 15, 2004 (WB Holdings Applicarion} " W3 Holdings Appllcatonat1 * WHoldings Applicatona 4. " WB Holdings Applicaton 7. * Wis Holdings Application was plced on Public Natice, no comments were receved i esponseto the Notce Public Notie, Poliy Branch InformationReport No. SAT—O0245 (Sept.29, 2009 * WB Holdings Application 2. 7. " Letterto Marlene H. Dortch, Secreury, FCC, om David M. Brown, WildBlue Communications, Inc., dated October 18, 2004 (October Letter.

Federal unications Da 05—1608 WB Holdings statesthat whileit had entered into a contract with Arianespace in Tanvary 2003 to launch WildBlue—1, it has not yet secured a launch date from Arianespace. Itfurther states that due to recent Inunch failures o othersaellite systems,it was "quit ikely® WB Holdings would not be able t satisty its June 25, 2005 launch milestone." 5.. In December 2004, in response to a request from the International Bureau, WB Holdings submited additionl information in support of ts extension request. Specifically, WB Holdings notes that while construction of WildBlue—1 was "virtually complete," WildBlue—1 is similar in design to the Intelsat 1A—7 satellte,also manufactured by Loral, that suffered an in—space anomaly in November 2004." WB Holdings statesthat as a result ofthis problem, Loral must review WildBlue—1‘s components and make any design changes before delivery and Iaunch." WB Holdings indicates that it cannot secure a launch date with Arianespace becauseit does not know when Loral willcomplete this review. Furthermore, WB Holdings states that once it requestsa launch date, it willtake several months for Arianespace to place the saellite on a launch manifest and launch the satelite, and that launch providers often postpone scheduled launches for various reasons."* WB Holdings concludes that the uncertaitiesand contingenciessurrounding WildBlue—1‘s construction and launch continue to require an 18—month extension of it launch milestone until December 2006. u.. pISCUSsION 6. Commission riles require stelfit licenseesto meet certain milestones for satelite system implementation. Milestone schedules aredesigned to ensure that licensees are proceeding with construction and will launch their satelftesin a timely manner,and that valuable spectrum willnot be held to the exclusion of others by licensees unsble or unwilling to proceed."" Milestones also ensure the promptdelivery ofservice to the public."" Consequenty,the Commission stritly enforces its milestone schedules, As a generalrle, we will grant extensions when the delay is due to circumstances beyond the control ofthe icensee."" Moreaver,in thesesituations we expectlicensees to consider alternatives or exercise reasonable care to attemptto resolve issues that may impede ts ability to meet ts milestones. 7. During the bankuptcy proceeding. WB Holdings did not know whether Loral would perform its obligations under the cantract and deliver the satellite. Nonetheless, WB Holdings made a good faith effort to comply with ts launch milestone by continuing with construction and by paying Loral for its work performed under the contract.® Indeed, WildBlue—1 is fully constructed and WB " October Leter. "* Letterto Marlene . Dortch, Seereary, FCC,from Willam M. Wilshire, Counse or WB Holdings 1, LLC (December 13,2004) (December Leter. * Decenber Leter t 2 ©* Decenber Lever t 2 "* Columbia Communications Corp.. Memorandrm Opinon and Order, 15 FCC Red 15566 (II Bur.2000); NeiSt 28 Company,LLC, Memorandm Opinon and Order, 19 FCC Red 17722 (lt‘ Bur.2004) "* VisionStar Incorporated, Memorandurs Opinion and Order, 19 FCC Red 14820, 14822 (InI Bur. 2000 " 47 CBR. § 25.117@)(D);Intelsat LLC, Order andAuthorizatin, 17 FCC Red 2391 itBur.2002) "* WB Holdings Application at 4.

Federal Communications Commission Da 05—1008 Holdings has a launch contract with Arianespace. Given WB Holdings‘ continuing and substantal progress in implementing the satellite despite these unforeseen circumstances, we find thatan extension ofthe WildBlue—1 launch date is warranted 8. Nevertheless, we ind that WB Holdings has not adequatelyjustified an 18—month extension, to December 206. ‘The favorable resolution of the bankruptey issue in October 2004 removed the uncertainty regarding Loral‘s intentions to delivethe stellite to WB Holdings. Rurther, we note that Sea Launch Company, LLC is preparing to launch Intelsat‘ssimilar Loral—manufactured TA—8 satellte in late June 005. WB Holdings has presented no support as to why Loral cannot evaluate any issues surrounding WildBlue—1‘s design in similarly prompt time frame. Consequently, we find that WB Holding‘s 18—month extension request is excessive. Rather, we find that a 12—month extension, until June 2006,is a reasonsble amount oftime in which to resolve any outstanding issues regarding the impact of the IA—7 satellte falure on WildBlue—1 and to secure a lunch date with Arianespace. We understand that the process of securing a aunch hasa degree of uncertainty and takes several months, with additional time necessary to itegrate the satelite with the launch vehicle and test power sources. A 12—month extension will give WB Holdings the Nexibility to complete the Iaunch mission and to commence operations on WildBlue—1 1. CONCLUSION AND ORDERING CLAUSE 9. Based on the foregoing. we find that granting WB Holdings a 12—month extension of WildBlue—1‘slaunch date is warranted and will serve the publi interest by allowing WB Holdings to Inunch a fully—builsatelite that will expand the range ofbroadband services available to users throughout the United States 10. Accordingly, TT JS ORDERED, that WB Holdings 1 LLC‘s Request for Extension of ts Launch and Operation Milestone, File No. SAT—MOD—20040915—00178, Call Sign 221 1, is granted in part, and denied in pat,as specified herein. WB Holdings 1 LLC‘s satelfite authorization is modified to require the launch and operation of WildBlue—1 by June 25, 2006, in accordance with the parameters of its authorization, as modified, oits authoriztion shall become null and void withoutfurther action on the Commission‘s par. ERAL COMMUNICATIONS CoMMIssION } T. H’EMM S "Thomas S. Tycz Chiet, Sitellie Division Interational Bureau —launchcomcurent launchhm (June 2005)


Document Created: 2005-06-20 15:57:05
Document Modified: 2005-06-20 15:57:05
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