Attachment reply to opp

This document pretains to SAT-MOD-20080516-00106 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD2008051600106_654597

                                 BEFORE THE
                      FEDERAL COMMUNICATIONS COMMISSION
                             WASHINGTON, D.C. 20554
In the Matter of                         1
GLOBALSTAR LICENSEE LLC                  ))      IBFS File No. SAT-MOD-200805 16-00106
                                         )
                                         )
Application for Minor Modification       1
Of Space Station License             I   )
                                         )




                          REPLY OF IRIDIUM SATELLITE LLC




R. Michael Senkowski                          John S. Brunette
Peter D. Shields                              Chief Counsel and Chief Administrative
Jennifer Hindin                               Officer
Nicholas M. Holland                           Donna Bethea-Murphy
Wiley Rein LLP                                Vice President, Regulatory Engineering
1776 K Street N.W.                            Iridium Satellite LLC
Washington D.C. 20006                         6701 Democracy Blvd., Suite 500
Tel. (202) 7 19-7000                          Bethesda, MD 208 17
Fax (202) 719-7049                            (301) 571-6200

Counsel to Iridium Satellite LLC

July 16,2008


                                                  TABLE OF CONTENTS

                                                                                                                                          Page


I.     INTRODUCTION AND SUMMARY           ............................................................... .............l
11.    GLOBALSTAR FAILS TO MEET THE ATC GATING CRITERIA. ...........                                                3
       A.  Globalstar Does Not Meet the Coverage Continuity Requirement. ................3
       B.  Globalstar Fails to Meet the In-Orbit Spare Gating Criteria. .........................                   5
       C.         Globalstar’s Proposed MSS ATC Service Is Not an “Integrated
                  Service.” .................................................................................................................   6
111.   GLOBALSTAR PROPOSES TO LEASE ITS SPECTRUM TO A THIRD
       PARTY WHO WILL CONSTRUCT, OPERATE AND MAINTAIN AN
       ENTIRELY SEPARATE BUSINESS............................................................................                                   .7
IV.    GLOBALSTAR HAS NOT ESTABLISHED THAT A WAIVER IS IN THE
       PUBLIC INTEREST. .....................................................................................................                   10
V.     IRIDIUM HAS STANDING TO CHALLENGE THE GRANT OF ATC
       AUTHORITY TO GLOBALSTAR ..............................................................................                                   12
VI.    CONCLUSION ...............................................................................................................               15




                                                                    -1-


                                           BEFORE THE
                      FEDERAL COMMUNICATIONS COMMISSION
                             WASHINGTON, D.C. 20554

In the Matter of                               1
                                               1
GLOBALSTAR LICENSEE LLC                        )       IBFS File No. SAT-MOD-200805 16-00106
                                               1
                                       I       )
Application for Minor Modification             )
Of Space Station License                       )
                                               1



                           REPLY OF IRIDIUM SATELLITE LLC

I.     INTRODUCTION AND SUMMARY

       Pursuant to Section 25.1 54 of the Federal Communications Commission’s (“FCC” or

“Commission”) rules, 47 C.F.R. fj 25.154, Iridium Satellite LLC (“Iridium”) submits this reply to

the Opposition to Petitions to Deny’ filed by Globalstar Licensee LLC (“Globalstar”) regarding

Globalstar’s request for modification of its mobile satellite service (“MSS”) authority to operate

an ancillary terrestrial component (“ATC”).* Globalstar’s Opposition to Petitions to Deny can be

summarized as a plea for permission to lease its ATC authority to allow a third party to launch a

stand alone terrestrial wireless business that meets almost none of the FCC’s ATC gating

1
        Opposition of Globalstar to Petitions to Deny, IBFS File No. SAT-MOD-200805 16-
00106 (filed July 9,2008) (“Globalstar Opposition”). Iridium also replies herein to the similar
arguments made by Open Range Communications Inc. (“Open Range”) in its Opposition to
Petitions to Deny. Opposition of Open Range Communications Inc., IBFS File No. SAT-MOD-
200805 16-00106 (filed July 9,2008).
2
       See GLOBALSTAR LICENSEE LLC, Application for a Minor Modification of Space
Station License, IBFS File No. SAT-MOD-200805 1 6-00 106 (“Global star Application”); Public
Notice, Report No. SAT-00525 (May 23,2008).




                                                   1


requirements because the applicant hopes - some three years from now - to have built a second

generation system that, perhaps, will meet those gating requirements. Moreover, Globalstar

candidly admits that even if its second generation system is established, the Open Range WiMax

customers purchasing service during that “limited” three year period would continue to be

saddled with a device that will only be able to use Globalstar’s one-way MSS paging service

when outside of terrestrial service range. The Open Range customers would either be locked

into a limited device and limited service or have to purchase a new device and subscribe to a new

service in order to benefit from any second generation capabilities. This is hardly the foundation

upon which either a grant or a waiver of the ATC rules could be reasonably premised.

        Globalstar’s failure to meet the ATC gating requirements is fully documented and largely

uncontested. Specifically, there are multiple failures by the applicant to comply with the basic

conditions for obtaining ATC approval:

        Globalstar admits that it cannot meet the coverage continuity requirement;

        Globalstar fails to meet the integrated service safe harbor and proposes to provide
        customers with two entirely different devices to access two different services that are
        simply housed in the same casing;

        Globalstar does not meet the in-orbit spare requirement; and,

       Globalstar will turn over its spectrum for a third party to construct, operate and manage a
       separate terrestrial wireless service.

       Similarly, Globalstar’s alternative waiver request does not warrant serious consideration.

The waiver is far from short in duration - at least three years - and its effects would be felt long

after that time as the embedded base of WiMax consumers built up over that time frame would

have time and cost disincentives to replacing their existing devices and services in order to

obtain truly integrated MSS ATC service. Neither the proposed service; the proposed device;



                                                 2


    nor the proposed customer base has anything to do with providing real integrated MSSherrestrial

    services as contemplated by the Commission.

    11.    GLOBALSTAR FAILS TO MEET THE ATC GATING CRITERIA.

           As Iridium and Sprint3 showed in their Petitions to Deny, Globalstar fails several of the

ATC gating criteria established to ensure that ATC operations remain ancillary to robust services
                                          I




provided via satellite. The Commission specifically noted that its gating criteria were intended

to “ensure that MSS remains first andforemost a satellite ~ervice.”~
                                                                   Globalstar’s Opposition

makes little attempt to contest the facts laid out by Iridium and Sprint. Instead, Globalstar

ignores the Commission’s purpose in creating the gating criteria and relies on a strained reading

of the Commission’s rules and orders that would eviscerate the gating criteria. The Commission

must reject Globalstar’s interpretation and deny the instant application.

           A.     Globalstar Does Not Meet the Coverage Continuity Requirement.

           The Commission requires an MSS operator to “meet the gating criteria for each spectrum

band in which it wishes to provide ATC.”’ In its first salvo to weaken the Commission’s gating

criteria, Globalstar argues that it need not meet the gating criteria in the S-band, despite seeking

ATC authority in the S-band, because the satellite and terrestrial components will operate in the


3
       Petition to Deny of Sprint Nextel Corporation, IBFS File NO. SAT-MOD-200805 16-
00106 (filed June 23,2008).
4
        See Flexibilityfor Delivery of Communications By Mobile Satellite Service Providers in
the 2 GHz Band, the L-Band, and the 1.6/2.4 GHz Bands, Report and Order and Notice of
Proposed Rulemaking, 18 FCC Rcd 1962, 1965-66 (7 3) (2003) (“MSS ATC Order”) (emphasis
added).
5
       See Flexibilityfor Delivery of Communications By Mobile Satellite Service Providers in
the 2 GHz Band, the L-Band, and the 1.6/2.4 GHz Bands, Mem. Op. & Order & Second Order on
Recon., 20 FCC Rcd. 4616,4628-29 (7 34) (2005) (“MSS ATC Second Reconsideration Order”).




                                                   3


“paired Big LEO bands.’’6 Neither the Order adopting this requirement nor Globalstar’s own

application supports allowing ATC in the S-band because the gating criteria might be met in the

L -band.

       Globalstar recognizes that it operates in more than one ‘‘spectrum band” as that term is

conventionally under~tood.~
                         Indeed, Globalstar’s request for waiver of the coverage continuity

requirement would be entirely moot if Globalstar thought the S-band gating criteria could be

fulfilled utilizing the L-band coverage. Moreover, though the Commission adopted the

requirement in response to commenters specific factual concerns, the Commission noted that the

adoption of this requirement was intended to hrther clarify that an “ATC is ancillary to the MSS

system it supports.” Clearly, then, a requirement that Globalstar meet the gating criteria in all

the spectrum bands in which it operates is fully consistent with the Commission’s language in

the Order and intention in adopting the gating criteria.

       As Iridium and Sprint showed in their Petitions to Deny, Globalstar cannot meet the

coverage continuity gating criteria for its operations in the S-band. Iridium provided numerous

statements directly from Globalstar’s public filings that show that the S-band amplifiers on many

of Globalstar’s satellites have degraded to the extent that Globalstar can no longer provide

reliable, 24-hour two-way service to any of its   customer^.^   Until Globalstar can launch and bring



6
       Globalstar Opposition at 12.
7
       See e.g., Globalstar Opposition at n. 31 (“Open Range has secured the right to lease both
L- and S-band spectrum”).
8
       MSS ATC Second Reconsideration Order, 20 FCC Rcd 4628-29 (7 34).
9
       See Iridium Petition to Deny at 6-8.




                                                  4


in to operation additional satellites, service quality and reliability will continue to diminish,

resulting in more frequent and longer gaps in S-band coverage.”

        Globalstar’s Opposition provides no evidence to the contrary. Instead, Globalstar touts

that it provides “complementary access to an on-line Optimum Satellite Availability Tool” to

enable its customers to “predict exactly when voice and duplex data services will be available in

their locations.”’ Globalstar then claims that its second generation satellites will fix coverage

gaps “in about two years.”’* Even if true, the question in the current application is the coverage

provided by Globalstar’s satellite fleet today. And, today, Globalstar’s satellite fleet cannot meet

the coverage continuity requirements. As such, Globalstar’s proposed MSS ATC operation is

not primarily a satellite service as required by the Commission.

        B.      Globalstar Fails to Meet the In-Orbit Spare Gating Criteria.

        Globalstar also fails the in-orbit spare gating criterion, which was designed to ensure

back-up capability and continuous coverage should an operational satellite fail. l 3 Globalstar

does not have a spare in-orbit satellite in any sense of the term. Though Globalstar makes much

of the number of satellites that it currently has in-orbit, none of these satellites is available as a


lo
        Globalstar Inc. SEC Form 10-K for the Year Ended Dec. 3 1,2007, at 22 (Mar. 17,2008)
(“even with optimized placement in orbit of the eight spare satellites, increasingly larger
coverage gaps will occur over areas in which we currently provide two-way communications
service. Two-way communications service will continue to be available, but at certain times in
any given location it will take substantially longer to establish calls and the average duration of
calls will be impacted adversely”).
I’
       Iridium again notes the irony of Globalstar requiring customers to utilize an on-line tool
(which itself requires a working two-way data connection) to predict when their data connection
will work.
l2     Globalstar Opposition at 9.
l3
       See MSS ATC Order, 18 FCC Rcd at 2007 (7 83-84).




                                                   5


spare should a currently operational S-band satellite fail. Globalstar may be able to meet this

requirement when it launches its second generation satellites, but until then the Commission

should deny its request for ATC authority.

        C.      Globalstar’s Proposed MSS ATC Service Is Not an “Integrated Service.”

        Iridium showed in its Petition to Deny that Globalstar neither meets the integrated service

safe harbor nor shows service integration in any other way.I4 As Iridium noted, the Globalstar

device will not allow for dual-mode communication in either band in which Globalstar operates,

a fact that Globalstar does not deny.15 Globalstar’s device also is not “dual-mode” except in the

illogical sense that it would contain the hardware to access two completely different services

provided by two completely different operators using two completely different methods of

operation.

        As Iridium previously pointed out, the satellite and ATC portions of the Globalstar/Open

Range offering are not just insufficiently integrated, they are not even compatible. There is no

reason to think that the terrestrial portion of the system would ever interact with the satellite

system at all under Globalstar’s current plans, much less extend the coverage of Globalstar’s

one-way paging service or provide handoff from one service to the other as contemplated by the

Commission ’s orders.




l4
       See Iridium Petition to Deny at 9-1 1.
l5
       See Globalstar Opposition at n. 39.
l6
      As Iridium noted, users would either be able to use the device on a stand-alone basis as a
one-way Globalstar paging device or connected to a laptop as a two-way Open Range wireless
modem.




                                                  6


111.    GLOBALSTAR PROPOSES TO LEASE ITS SPECTRUM TO A THIRD PARTY
        WHO WILL CONSTRUCT, OPERATE AND MAINTAIN AN ENTIRELY
        SEPARATE BUSINESS.

        In its Petition, Iridium raised significant legal questions about the appropriateness of the

lease agreement between Globalstar and Open Range. In response, Globalstar attempts to

establish authority to lease wholesale its authority to provide terrestrial services to a third party
                                         I




by selectively quoting a series of footnotes and dicta from Commission orders. Because

Globalstar provides no FCC authority that would allow this lease, the Commission must examine

Globalstar’s relationship with Open Range to ensure that it complies with Commission policies

and the Communications Act.

        To support its position, Globalstar first selectively quotes from the Commission’s MSS

A TC Order, claiming that the Commission specifically “recognized the possibility that an MSS

provider might choose to implement ATC through a spectrum leasing a ~ ~ a n g e m e n t . ”The
                                                                                            ’ ~ only

Commission precedent cited for this crucial element of Globalstar’s argument, however, is dicta

that does not actually opine on the permissibility of such a lease. In fact, this selective quote is

contained within a footnote that discourages the leasing of ATC authority, singling out such a

lease as an example of “gaming” the Commission’s MSS flexibility, which the Commission “did

not intend to allow.”’* Indeed, this footnote states, in full:

       As we have repeatedly indicated, we intend to authorize ATC only as an ancillary service
       to the provision of the principal service, MSS. We have established a number of gating
       requirements to ensure that ATC may only operate after the provision of MSS has
       commenced and during the period in which MSS continues to operate. While it is
       impossible to anticipate or imagine every possible way in which it might be possible to
                ~   ~   ~~~~




17
       Globalstar Opposition at 17-18.
l8
       MSSATC Order, 18 FCC Rcd at 1965, n. 5.




                                                  7


        “game” our rules by providing ATC without also simultaneously providing MSS and
        while we do not expect our licensees to make such attempts, we do not intend to allow
        such “gaming.” For example, even if an MSS licensee were to enter an agreement to
        lease some or all of the access to its authorized MSS spectrum to a terrestrial licensee,
        such spectrum could only be used if its usage met the requirements to ensure it remained
        ancillary to MSS and were used in conjunction with MSS operations, i.e., that it met all
        of our gating requirements. The purpose of our grant of ATC authority is to provide
        satellite licensees flexibility in providing satellite services that will benefit consumers,
        not to allow licensees to profit by selling access to their spectrum for a terrestrial-only
        service. 19

Clearly, Globalstar cannot rely upon this footnote as permission to lease its ATC authority.

        Globalstar then points to a footnote in the secondary markets proceeding that discusses

the “robust secondary market for parties seeking to gain access in our satellite services.”20 In

this footnote, however, the Commission cites to the First Space Station Reform Order, in which

it eliminated the anti-trafficking rule and adopted other policies “to enable NGSO and GSO MSS

licensees to buy and sell spectrum to each other in a secondary market after licenses are

issued.”21 Nothing in this footnote suggests that NGSO and GSO MSS licensees are free to lease

their ATC authority to unlicensed third parties as proposed by Globalstar.22 Moreover, while

these actions were certainly intended to encourage the most efficient use of spectrum, they are a



l9     Id. (emphasis added).
2Q
       Globalstar Opposition at 18 (citing Promoting Efficient Use ofspectrum through
Elimination of Barriers to the Development of Secondary Markets, Second Report and Order,
Order on Reconsideration, and Second Further Notice of Proposed Rulemaking, 19 FCC Rcd
17503, 17536 (7 66 n. 166) (“Secondary Markets Second Report and Order”)).
21
       See Secondary Markets Second Report and Order, 19 FCC Rcd at 17536 (7 66 n. 166).
22
        Indeed, in eliminating the anti-trafficking rule, the Commission specifically retained its
authority to examine transfer of control applications. Amendment of the Commission ’sSpace
Station Licensing Rules and Policies and Mitigation of Orbital Debris, First Report and Order
and Further Notice of Proposed Rulemaking, IB Docket No. 02-34, 18 FCC Rcd 10760, 10841 (7
21 5) (2003).




                                                 8


far cry from applying all of the Commission’s terrestrial secondary markets rules to MSS ATC,

which would require an examination of numerous public interest factors.

        Finally, Globalstar’s cite to a Commission statement recognizing Big LEO operators’

authority “to offer capacity on their satellites to individual customers on individualized terms,

ranging from short term leases to sales” and the existing obligation to “remain responsible for

ensuring that their satellites operate within the relevant power limits and in conformance with

[the Commission’s] international obligations and with International Telecommunications Union

authorizations” has no relevance to the proposed lease of its ATC authority.23 Globalstar can

offer capacity on its satellites under individualized terms and will of course remain responsible

for its satellites, but that says nothing of the terrestrial operations it is attempting to outsource,

which will not truly be controlled by Globalstar and could interfere with existing terrestrial

operations. Moreover, the Commission went on to say that its “leasing precedent allows for

leasing of transponder capacity on previously authorized satellites. It does not suggest that a

licensee has the right to lease its assigned spectrum to another party that might wish to place its

own satellite in the same orbital position.”24 Similarly, the Commission’s leasing precedent does

not contemplate the leasing of bare ATC spectrum to another party that might wish to build its

own terrestrial system.

       In sum, Globalstar has no unilateral authority to lease its ATC authority to Open Range

where the facts show an attempt to end run the ATC gating requirements. While Globalstar

23
       Globalstar Opposition at 19 (citing Promoting Eflcient Use of Spectrum through
Elimination of Barriers to the Development of Secondary Markets, Notice of Proposed
Rulemaking, 15 FCC Rcd 24203,24226 (166) (2000) (“Secondary Markets NPRM”)).
24
       Secondary Markets NPRM, 15 FCC Rcd at 24226 (766 n. 92).




                                                   9


makes much of the fact that Iridium can point to “no provision in the Commission’s rules”

requiring prior approval from the Commission, Section 3 1O(d) states no “station license, or any

rights thereunder, shall be transferred, assigned or disposed of in any manner . . . except upon

application to the Commission and upon finding by the Commission that the public interest,

convenience, and necessity will be served thereby.”25 Thus, the Commission has the statutory

authority to examine Globalstar and Open Range’s relationship to ensure that no Commission

rules or policies are disserved by the naked lease of Globalstar’s ATC authority.26

IV.    GLOBALSTAR HAS NOT ESTABLISHED THAT A WAIVER IS IN THE
       PUBLIC INTEREST.

       Despite Globalstar’s protestations that its first-generation MSS ATC service meets all the

gating criteria, Globalstar nevertheless requests waiver of nearly all of the Commission’s gating

criteria. Globalstar’s basic argument is that once its second generation system is operational in

201 1 it will then be able to meet the Commission’s gating criteria.27 In the meantime, Globalstar

claims, the Commission should ignore the important policy goals advanced by the gating criteria

and let Globalstar and Open Range provide service to the public. Globalstar, however, has not



25
       47 U.S.C. tj 3 1O(d) (2006) (emphasis added).
26
        Moreover, contrary to Globalstar’s claims, the Intermountain Microwave criteria remain
the standard by which the Commission determines defacto control. See Stratos Global
Corporation, Transferor, Robert M. Franklin, Transferee, Consolidated Application for Consent
to Transfer of Control, Memorandum Opinion and Order and Declaratory Ruling, 22 FCC Rcd
2 1328 (2007) (noting that “[i]n Intermountain Microwave, the Commission set out six factors it
would use to determine whether a third party has de facto control over a common carrier
licensee”). Though Globalstar and Open Range recognized that de facto control concerns were
relevant and included a clause to that effect in their lease agreement, such promises do not
replace an in-depth factual investigation of what party will control the ATC facilities proposed
by Globalstar and Open Range and whether any such transfer of control is in the public interest.
27
       See Globlastar Opposition at 24-25.




                                                10


established that the public interest will be served by these waivers and the Commission should

not grant them.

       First, it continues to be evident that the requested waivers are neither short in duration nor

bounded by any certain time frame. The shortest length of time for which Globalstar requests a

near-complete waiver of the gating criteria is three years, a great deal of time given the massive
                                        I




departure from the rules proposed by Globalstar. Moreover, it is not clear that Globalstar will

require these waivers for only that three year period. Globalstar claims that its second-

generation system will be complete by 201 1, but it has not yet applied for authority to launch its

second generation satellites. There is no guarantee that Globalstar’s proposed second generation

service will meet the gating criteria, either. Globalstar goes so far as to say that “Iridium and

Sprint nowhere suggest that, once Globalstar’s second-generation constellation and ground

system are operational, any doubt will exist” that it meets the gating criteria,28but the reason for

that absence is that Globalstar has not provided any detail on its second generation system or

applied for ATC authority for its second generation system. In particular, Globalstar has

provided insufficient data on the function and integration of the satellite and ATC components of

its second generation service.

       Second, unlike the waiver granted to MSV, the grant of these waivers will have effect

well beyond the time-frame of their grant. During the term of these waivers, Globalstar would

create an embedded base of customers with devices capable of using only the non-integrated

one-way satellite service. Many of these customers will likely not upgrade to Globalstar’s

second generation satellite system, especially given the possible costs disincentives of doing so.

28     Globalstar Opposition at 2.




                                                 11


Thus, the waiver of these gating criteria, and in particular a waiver of the integrated service

requirement, would have long-term impacts of unknowable duration. Clearly, the Commission

cannot grant these waivers.

V.      IRIDIUM HAS STANDING TO CHALLENGE THE GRANT OF ATC
        AUTHORITY TO GLOBALSTAR.
        Despite Globalstar’s claims to the contrary,29Iridium has standing to challenge the

improper grant of ATC authority to Globalstar under the competitor standing d~ctrine.~’The test

for competitor standing requires that Iridium establish that it is a “direct and current competitor”

to Globalstar and that it will suffer direct financial injury if the application is granted.3’ Iridium

meets both prongs of this test.

        First, there is no doubt that Iridium “is a direct and current competitor’’ of Globalstar.

The D.C. Circuit Court of Appeals has found this requirement satisfied where the companies

compete in at least some of the same markets.32 Here, Globalstar and Iridium are direct market

competitors in the mobile satellite service market. In fact, the companies are the only two Big

LEO MSS providers, and both companies currently provide services that are markedly similar in



29
       See Globalstar Opposition at 2-3.
30
         See Clarke v. Securities Indus. Ass ’n,479 U.S. 388,403,397 & n. 13 (1987) (recognizing
that alteration of competitive conditions has probable economic impact which satisfies “injury-
in-fact” test); FCC v. Sanders &os. Radio Station, 309 U.S. 470,477 (1940) (recognizing that an
entity “likely to be financially injured by the issue of a license would be the only person having a
sufficient interest to bring to the attention of the appellate court errors of law in the action of the
Commission in granting the license”).
31
       Mobile Relay Assocs. v. FCC, 457 F.3d 1, 13 (D.C. Cir. 2006); KERM, Inc. v. FCC, 353
F.3d 57’60 (D.C. Cir. 2004); New World Radio v. FCC, 294 F.3d 164, 170 (D.C. Cir. 2002).
32
      See Mobile Relay Assocs., 457 F.3d at 13 (finding Nextel to be a “direct” and “current”
competitor because it “operates in some of the same markets”).




                                                  12


form and function and offer their services to the same market sectors and customers that require

ubiquitous communications service.

        Second, Iridium will suffer direct financial injury if Globalstar is permitted to provide

ATC service. Iridium must show that its “bottom line may be adversely affected” by the

Commission’s grant of Globalstar’s ATC a p p l i ~ a t i o nbut
                                         I
                                                            , ~ ~need not demonstrate that financial

harm will immediately occur.34 Indeed, the D.C. Circuit has held that “that parties suffer

constitutional injury in fact when agencies lift regulatory restrictions on their competitors or

otherwise allow increased ~ o m p e t i t i o n . ”Here,
                                                   ~ ~ allowing Globalstar to improperly skirt the

Commission’s ATC requirements and supplement its existing services with the ATC service

provided by Open Range will give Globalstar’s data and paging services an u n l a f i l advantage

that will make them more attractive to customers in the competitive MSS market. Iridium will

be directly harmed when consumers choose the new combined Globalstar/Open Range service

(which provides two-way service in some areas and ubiquitous simplex data services) instead of

Iridium’s two-way voice and data service because Globalstar is exploiting this unlawful

competitive advantage. The Commission’s grant of Globalstar’s ATC application will therefore

result in lost profits and market share, “adversely affecting” Iridium’s “bottom line” and giving it


-~           ~~             ~~




33
       Id. (quoting KERM; Inc., 353 F.3d at 60).
34
       New World Radio, 294 F.3d at 170 (stating that the U.S. Supreme Court has “upheld
‘competitor standing’ even though the economic injury was latent” (citing Ass ’n of Data
Processing Serv. Orgs. Inc. v. Camp, 397 U.S. 150, 152 (1970))).
35
         La. Energy & Power Auth. v. FERC, 141 F.3d 364,367 (D.C. Cir. 1998); New World
Radio, 294 F.3d at 172 (“We read this holding to apply the ‘competitor standing’ doctrine to an
agency action that itself imposes a competitive injury, Le., that provides benefits to an existing
competitor or expands the number of entrants in the petitioner’s market, not an agency action
that is, at most, the first step in the direction of fbture competition.”).




                                                  13


a direct stake in the outcome of Globalstar’s a p p l i ~ a t i o n Thus,
                                                                    . ~ ~ Iridium, as a direct and current

competitor, has standing to object to the grant of Globalstar’s latest ATC a p p l i ~ a t i o n . ~ ~




36
        KERM, Inc., 353 F.3d at 60. Compare Ass% of Data Processing Serv. Orgs. Inc. v.
Camp, 397 U.S. 150, 152 (1970) (holding that the injury in fact requirement was satisfied where
it was alleged that “competition by national banks in the business of providing data processing
services might entail some fbture loss of profits”); Orange Park Florida T. IT,Inc. v. FCC, 81 1
F.2d 664,671-72 (D.C. Cir. 1987) (holding that a television broadcaster had standing to
challenge an FCC decision to grant a competitor’s application to construct a UHF television
station) with New World Radio, 294 F.3d at 172 (“New World’s interest in raising ‘programming
issues’does not give it a direct enough stake in the outcome of Birach’s Renewal Application to
establish its standing here.”).
37
        In the alternative, if the Commission finds that Iridium lacks standing in this proceeding,
the Commission can instead treat Iridium’s petition to deny and the arguments therein as an
informal objection to Commission approval of Globalstar’s application. See AppZications of
MLGAL Partners, L. P.,(Transferor) and Evergreen Media Corporation (Transferee),
Memorandum Opinion and Order, 10 FCC Rcd 5653 (7 1) (1 995) (treating a petition to deny as
an informal objection where party filing petition lacked standing).




                                                    14


 VI.    CONCLUSION

        As Iridium and Sprint have both demonstrated, Globalstar’s proposed ATC operation

 fails all of the gating criteria designed to ensure that MSS remains primarily a satellite service.

 Globalstar’s Opposition fails to rebut these claims and relies on a distorted reading of the

 Commission’s rules. Similarly, Globalstar fails to show how its proposed waivers will serve the
                                         t




 public interest. The Commission must reject Globalstar’s application and deny the requested

 waivers.



 Respectfully submitted,




R%hael      Senkowski                              John S. Brunette
Peter D. Shields                                   Chief Counsel and Chief Administrative Officer
Jennifer Hindin                                    Donna Bethea-Murphy
Nicholas M. Holland                                Vice President, Regulatory Engineering
Wiley Rein LLP                                     Iridium Satellite LLC
1776 K Street N.W.                                 6701 Democracy Blvd., Suite 500
Washington D.C. 20006                              Bethesda, MD 208 17
Tel. (202) 719-7000                                301.571.6200
Fax (202) 719-7049

Counsel to Iridium Satellite LLC

July 16,2008




                                                  15


                             CERTIFICATE OF SERVICE

        I hereby certify that on July 16,2008, I caused a true and correct copy of the

foregoing to be served by first-class mail, unless noted otherwise, on the following:

William F. Adler                                Robert Nelson, ChieP
Vice President - Legal and Regulatory           Satellite Division, International Bureau
Affairs                                         Federal Communications Commission
GLOBALSTAR, INC.                                445 12th St., S.W.
461 S. Milpitas Blvd                            Washington D.C. 20554
Milpitas CA 95035

William T. Lake                                 Howard GribofP
Josh L. Roland                                  International Bureau
Wilmer Cutler Pickering Hale and Dorr LLP       Federal Communications Commission
1875 Pennsylvania Ave N.W.                      445 12th St., S.W.
Washington D.C. 20006                           Washington D.C. 20554
Counsel to Globalstar Inc.

Helen Domenici, ChieP                           Steven Baruch
International Bureau                            Philip Bonomo
Federal Communications Commission               Leventhal Senter & Lerman PLLC
445 12th St., S.W.                              2000 K Street, N.W.
Washington D.C. 20554                           Suite 600
                                                Washington, DC 20006
                                                Counsel to US. GPS Industry Council

Jim Ball, ChieP                                 Regina Keeney
Policy Division, International Bureau           Charles Logan
Federal Communications Commission               Stephen Berman
445 12th St., S.W.                              Lawler, Metzger, Milkman, & Keeney, LLC
Washington D.C. 20554                           2001 K Street, N.W.
                                                Suite 802
                                                Washington, DC 20006
                                                Counsel to Sprint Corporation

Best Copy and Printing, Inc.*                   Jon L. Christensen, Esq.
fcc@bcpiweb.com                                 656 1 Eudaily Covington Road
                                                College Grove, TN 37046
                                                                 Range Communications Inc.
* By electronic mail only




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Document Created: 2008-07-18 14:17:13
Document Modified: 2008-07-18 14:17:13

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