2010 Annual Report -

OTHER submitted by Hughes Network Systems, LLC

2010 Annual Report - Hughes Network Systems, LLC

2010-07-06

This document pretains to SAT-MOD-20071011-00139 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD2007101100139_828347

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               LERMAN
     S         SENTER
               PLLC

                                                                                         STEPHEN D. BARUCH
                                                                                             202.416.6782
                                                                                      SBARUCH@LERMANSENTER.COM
  WASHINGTON, DC
                                             July 6, 2010



FILED ELECTRONICALLY VIA IBFS

Ms. Marlene H. Dortch, Secretary
Federal Communications Commission
445 12"" Street, SW
Washington, DC 20554
ATTN: International Bureau

               Re:     2010 Annual Report of Hughes Network Systems, LLC

Dear Ms. Dortch:

       Hughes Network Systems, LLC ("Hughes"), by its attorneys and pursuant to
Sections 25.145(f)(1) and 25.210(1) of the Commission‘s Rules, hereby submits this report
concerning its SPACEWAY 3 fixed—satellite service Ka—band satellite (Call Sign $2663) and its
authorization to serve the U.S. market via its JUPITER 1 (formerly known as SPACEWAY 4)
fixed—satellite service Ka—band satellite (Call Sign $2753). This report was due June 30, 2010
pursuant to the rule, but is being filed today because certain data required to complete Parts 2, 3
& 4 of the report were unavailable until after that date. To the extent required, Hughes requests a
modest waiver of the rule to allow its acceptance as timely—filed today.

        Part 1 of this report sets forth the status of space station construction and anticipated
launch date(s). Part 2 of this lists non—scheduled outages for more than thirty minutes and the
cause(s) of any such outages. Part 3 of this report identifies any space stations not available for
service or otherwise not performing to specifications and related information. Part 4 of this
report contains information on spacecraft utilization.

        Hughes hereby requests that the data it provides in Parts 2, 3, and 4 of this report be
exempted from public disclosure under Exemption 4 of the Freedom of Information Act
("FOIA"), which applies to information constituting "trade secrets and commercial or financial
information" that "would not customarily be released to the public." See 5 U.S.C. § 552(b)(4);
47 C.E.R. § 0.457(d). These data relate to transponder utilization and outages and include
information that is commercially sensitive and that would not ordinarily be available to the
public, and thus are redacted from the attached copy of the report. Hughes is submitting under




                          2000 K STREET NW, SUITE 600 | WASHINGTON, DC 20006—1809
                         TEL 202.429.8970 | FAX 202.293.7783 | WWW.LERMANSENTER.COM


          Ms. Marlene H. Dortch
L         July 6, 2010
         Page 2
    S
separate cover a complete unredacted copy of the report that includes the information that
Hughes requests be exempted from public disclosure.

        In support of this request, Hughes provides the following information, as required under
Section 0.459(b) of the Commission‘s Rules:

        1.      Specific Information For Which Confidential Treatment Is Sought —
§ 0.459(b)(1): Hughes seeks confidential treatment for the data relating to non—scheduled
outages for more than thirty minutes, the cause(s) of any such outages, the identification of any
space stations not available for service or otherwise not performing to specifications and related
information, and capacity sales/utilization information.

       2.      Circumstances Giving Rise To The Submission — § 0.459(b)(2): Submission of
information referred to in No. 1 above is required on an annual basis by the overlapping
provisions of Sections 25.145(f)(1) and 25.210(1) of the Commission‘s Rules.

        3.      Degree To Which The Information Is Commercial Or Financial, Or Contains A
Trade Secret Or Is Privileged — § 0.459(b)(3): Parts 2, 3, and 4 of the report for which Hughes
is requesting confidential treatment contain commercially sensitive information "which would
customarily be guarded from competitors."‘ This information includes, but is not limited to,
proprietary data relating to spacecraft outages, spacecraft utilization, and availability of capacity.
Disclosure of this information to Hughes‘s competitors would be harmful to Hughes, as these
competitors could use the information to attempt to improve their market position at Hughes‘s
expense.

         4.     Degree To Which The Information Concerns A Service That Is Subject To
Competition — § 0.459(b)(4): As the Commission is aware, there is substantial competition in the
satellite industry among both service providers and systems manufacturers. The commercial
provision of Ka—band FSS is currently expanding, with the launch and planning of new
competing systems, and Hughes believes that Ka—band FSS will continue to attract new
competitive offerings.

        5.      How Disclosure Of The Information Could Result In Substantial Competitive
Harm — § 0.459(b)(5): Disclosure of the information in Parts 2, 3, and 4 of this report could
cause significant competitive harm to Hughes. Hughes‘s competitors or customers could use the
data to affect future negotiations with potential and existing customers, or to develop business
and marketing strategies that negatively impact Hughes‘s business and marketing plans. Any
advantage achieved by such competitors or customers with this data would be an unfair
advantage.




‘ James A. Kay, Jr., 17 FCC Red 1834 (2002) (withholding such information from public inspection).


         Ms. Marlene H. Dortch
         July 6, 2010


Ig       Page 3


        6.      Measures Taken By Hughes To Prevent Unauthorized Disclosure —
§ 0.459(b)(6): Hughes limits access to this information to personnel within the company that
require knowledge thereof to perform their duties. Hughes takes precautions to ensure that these
data are not released to the general public.

        7.      The Information Submitted Is Not Available To The Public and Has Not
Previously Been Disclosed To Third Parties, Except For Appropriately Limited Circumstances
— § 0.459(b)(7): None of the data in Parts 2, 3, and 4 of the report have been publicly disclosed.

        8.       Period During Which The Submitted Material Should Not Be Available For
Public Disclosure — § 0.459(b)(8): Hughes respectfully requests that the confidential
information attached hereto be kept confidential for a period of fifteen years from the date of this
filing or until it notifies the Commission that confidential treatment is no longer required. At the
end of this period, the mission life of the SPACEWAY 3 satellite will have been completed, and
the disclosure of the data would not be expected to have any then—immediate effect. Should
Hughes‘s expectations turn out with hindsight to have been incorrect, Hughes reserves the right
to request, at the appropriate time, an extension of the period during which the submitted
material should be withheld from public disclosure.

                                           xo   *   ko   o#    x

        For all of the foregoing reasons, Hughes requests that the Commission withhold the data
in Parts 2, 3, and 4 of this report from public inspection, according them full confidential
treatment. Hughes further requests that, in the event that disclosure of the attached copies of
these documents is ultimately found necessary, any party ultimately examining such documents
be required to enter into an appropriate protective order.

       Please let me know if you have any questions regarding this report.

                                                              Respectfully submitted,




                                                            tepher     D. Baruch
                                                          Attorneéby for Hughes Network Systems, LLC

 cc (by FedEx):     Columbia Operations Center
                    Federal Communications Commission
                    9200 Farmhouse Lane
                    Columbia, MD 21046


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                  2010 Annual Report of Hughes Network Systems, LLC



                                            Part 1
                               Status of Satellite Construction

SPACEWAY 3 (Call Sign $2663):

       The SPACEWAY 3 satellite was launched in August 2007, on station at 94.95° W.L. by
December 2007, and entered commercial service in April 2008.


JUPITER 1, formerly SPACEWAY 4 (Call Sign $2753):

       The JUPITER 1 spacecraft is a Ka—band satellite, authorized by the Commission on May
5, 2010 under File No. SAT—LOI—20091110—00119. _A contract for construction of the satellite
has been entered into with Space Systems/Loral, and the System Critical Design Review was
completed in May 2010. Physical construction of the spacecraft, including bus and payload
panels integration, has commenced or will soon commence with a view to a launch on an
Arianespace launch vehicle in during the first quarter of 2012.


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2010 Annual Report of Hughes Network Systems, LLC



                      Part 2
              Non—Scheduled Outages




            edacte"


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       2010 Annual Report of Hughes Network Systems,LLC



                                Part 3
Spacecraft Not Available for Service or Not Performing to Specification




                Re d a G ‘ e d


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2010 Annual Report of Hughes Network Systems, LLC




                      Part 4




                     "
                Capacity Utilization




        pe d a c t ®



Document Created: 2010-07-06 17:29:55
Document Modified: 2010-07-06 17:29:55

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