Attachment Narrative

This document pretains to SAT-MOD-20140624-00077 for Modification on a Satellite Space Stations filing.

IBFS_SATMOD2014062400077_1051818

                                         EXHIBIT A

          APPLICATION FOR MILESTONE EXTENSION OR WAIVER

        DIRECTV Enterprises, LLC (“DIRECTV”) is authorized to launch and operate

DIRECTV RB-1, a 17/24 GHz Broadcasting Satellite Service (“BSS”) payload (Call Sign

S2711), at the nominal 99° W.L. orbital location. 1 Soon after receiving its license,

DIRECTV diligently entered into a satellite construction contract and a launch services

contract for a spacecraft (DIRECTV 14) that will include a 17/24 GHz BSS payload to be

operated under this license, coordinated to satisfy the July 28, 2014 “launch and begin

operations” milestone in its authorization. The satellite has been fully constructed and

tested since December 2013, with 98.5% of all pre-launch construction payments made.

DIRECTV has also maintained its place in the queue of its launch provider, and made

90% of the payments required under that agreement. No one is more eager to launch this

satellite than DIRECTV.

        Unfortunately, for a variety of reasons beyond DIRECTV’s control, the current

launch window for the satellite has moved steadily later in time. It is currently estimated

to fall sometime in December 2014, after which DIRECTV will need to conduct in-orbit

testing before moving the satellite to its assigned location and beginning operations.

Accordingly, pursuant to Section 308 of the Communications Act of 1934, as amended,

and Section 25.117(e) of the Commission’s rules, DIRECTV hereby requests a seven-

month extension, up to and including February 28, 2015, to meet its “launch and begin

operations” milestone for DIRECTV RB-1. In the alternative, it requests that the

Commission waive that milestone for good cause shown.



1
    See Grant Stamp, IBFS File Nos. SAT-LOA-20060908-00099, SAT-AMD-20080114-00013, and
    SAT-AMD-20080321-00076 (July 28, 2009) (“DRB-1 Authorization”); Grant Stamp, IBFS File No.
    SAT-MOD-20110727-00135 (Oct. 26, 2011).


    A. DIRECTV Has Proceeded Diligently

        DIRECTV and its affiliates have invested decades of effort and several billion

dollars in developing and implementing the nation’s leading direct-to-home (“DTH”)

satellite system. As part of its ongoing efforts to augment its capabilities, in 1997

DIRECTV filed a petition for rulemaking to allocate spectrum for the 17/24 GHz BSS

service in the U.S. Table of Frequency Allocations, 2 and was the first to seek authority

from the Commission to operate in the 17/24 GHz BSS band. 3 After participating in the

ensuing rulemaking and pursing its applications for over a decade, DIRECTV was finally

awarded several of the first licenses issued in this new band.

        One such license was for DIRECTV RB-1 to operate in the 17/24 GHz BSS band

at the nominal 99° W.L. orbital location. That authorization included the following

performance milestone requirements:

    1. Execute a binding contract for construction by July 28, 2010;

    2. Complete the Critical Design Review (“CDR”) by July 28, 2011;

    3. Commence construction by July 28, 2012; and

    4. Launch and begin operations by July 28, 2014. 4

DIRECTV timely submitted proof that it had satisfied the first three milestones. 5 As

reflected in the contract with Space Systems/Loral (“SS/L”) submitted to the

Commission, construction of the spacecraft was scheduled to be completed in the second

quarter of 2013 – more than a year ahead of the final milestone. In addition, DIRECTV

2
    See Public Notice, Rep. No. 2208 (rel. July 1, 1997).
3
    See IBFS File Nos. SAT-LOA-19970605-00049, -00050, and -00051.
4
    DRB-1 Authorization, ¶ 5.
5
    The Commission has confirmed DIRECTV’s satisfaction of the first two milestone requirements. See
    Public Notice, 27 FCC Rcd. 2221 (Int’l Bur. 2012). DIRECTV’s showing with respect to the third
    milestone remains pending.


                                                    2


entered into a launch services contract with Arianespace in September 2011, 6 targeting a

launch window well in advance of that milestone.

         At all times, DIRECTV has proceeded diligently with development of the

DIRECTV RB-1 satellite system. The 17/24 GHz BSS payload is part of a hybrid

spacecraft, known as DIRECTV 14, that also includes a Ka-band payload. 7 Evidence of

DIRECTV’s commitment to developing and launching this satellite include the

following:

     DIRECTV has made 98.5% of all pre-launch construction payments due under the

       SS/L construction contract. DIRECTV has had an employee on-site at SS/L to

       monitor progress of construction. As verified by the letter (with photographs)

       attached hereto as Attachment A, SS/L completed initial construction of the

       spacecraft and placed it in storage in December 2013. 8

     As further verified by the letter attached hereto as Attachment B, DIRECTV has

       paid Arianespace 90% of the price of the launch services contract applicable to

       DIRECTV 14, which remains in full force and effect.

     DIRECTV has also made significant progress with other elements of its system,

       including the construction of in-orbit test, TT&C and communications ground

       infrastructure at three of DIRECTV’s existing uplink facilities (in Castle Rock, CO,




6
     See Press Release, “Arianespace to launch up to four satellites for DIRECTV” (Sep. 13, 2011)
     (available at http://www.arianespace.com/news-press-release/2011/9-13-2011-directv.asp).
7
     See Grant Stamp, IBFS File No. SAT-LOA-20120518-00085 (Dec. 4, 2012).
8
     This was several months later than initially anticipated, due to issues with procurement of Ka-band
     travelling wave tube assemblies (“TWTAs”). In addition, SS/L subsequently discovered an issue with
     the solar array on the spacecraft. SS/L believes that issue has now been addressed, and the spacecraft
     will be ready for delivery to the launch site in August 2014. As discussed below, this new delivery
     date will still be months ahead of the next available Ariane 5 launch window, and so is not expected to
     cause any delay in the current schedule.

                                                     3


       New Hampton, NH, and Moxee, WA), and development of new consumer

       equipment capable of receiving and processing signals in the 17/24 GHz BSS band.

     B. The Unavailability of a Launch Vehicle Has Unexpectedly Prevented
        DIRECTV From Satisfying the Final Milestone Requirement

         As discussed above, DIRECTV has had a launch services contract with

Arianespace in place for several years, and during that time has been working toward a

launch in late 2013 or early 2014. Arianespace is one of the world’s premier launch

providers, capturing more than half of all commercial satellite launches each year. 9 With

an unbroken string of 59 successful Ariane 5 launches over the last eleven years, it is also

the most reliable launch service provider. 10 Unfortunately, no launch slot is available

prior to July due to the combination of factors beyond DIRECTV’s control. These

factors are discussed below.

         First, although DIRECTV has maintained its place in the Arianespace launch

queue, that place has marched steadily later in time due to delays in earlier-scheduled

launches. Given the complexity of the satellite launch process, delays are not an

uncommon occurrence in the industry. Moreover, because of the nature of Arianespace’s

co-passenger launches, one satellite operator may be ready for launch but be delayed by

wholly unrelated problems experienced by another satellite operator. Specifically,

         [t]he Ariane 5’s business model is based on launching two commercial
         telecommunications satellites at a time, which usually means pairing one
         large satellite with one that is much smaller. The difficulty of finding two
         satellites ready for launch at the same time with a combined weight that



9
     See Arianespace Service and Solutions (available at http://www.arianespace.com/about-us/service-
     solutions.asp).
10
     See Arianespace – Launch Smart, at 3 (available at http://www.arianespace.com/about-us-corporate-
     information/Arianespace-Corporate-Brochure-2014-EN.pdf) (“Arianespace Brochure”); Arianespace
     Mission Update, “Arianespace’s Ariane 5 orbits satellites at the service of SES and HISPASAT” (Mar.
     22, 2014) (available at http://www.arianespace.com/news-mission-update/2014/1147.asp).


                                                    4


         fits into the Ariane 5 has long been one of the challenges for
         Arianespace. 11

Indeed, this challenge was vividly illustrated at the end of 2013. Arianespace had

scheduled the final Ariane 5 launch of the year for December 6, 2013. Unfortunately, the

small satellite passenger on that flight (Amazonas 4A) was delayed, so both it and its co-

passenger (Astra 5B) could not make use of that launch window. 12 Ultimately, that pair

of satellites was rescheduled for launch on March 7, 2014. 13 Even then, the launch was

further delayed by approximately two weeks in order to accommodate “complementary

checks” on the Amazonas 4A satellite. 14

         Arianespace also had to delay the currently pending Ariane 5 launch, most

recently scheduled for June 6, because one of the passengers (the Optus 10 satellite)

“requires additional verifications.” 15 Arianespace has yet to announce a rescheduled

date for that launch. Indeed, every Ariane 5 launch in 2014 has been delayed to some

extent. 16 Unfortunately, such delays inevitably push back launch windows for other

satellites in the queue, including DIRECTV 14 and its DIRECTV RB-1 payload.


11
     Peter B. de Selding, “Ariane 5 Manifest Unsettled for Remainder of 2013 and into 2014,” SPACENEWS
     (Jun. 26, 2013) (available at http://www.spacenews.com/article/launch-report/35984ariane-5-manifest-
     unsettled-for-remainder-of-2013-and-into-2014).
12
     See Stephen Clark, “Next Ariane 5 launch delayed to January by satellite issue,” SPACEFLIGHT NOW
     (Nov. 13, 2013) (available at http://spaceflightnow.com/ariane/va216/131113delay/).
13
     Arianespace Mission Update, “Dates set for Arianespace’s first three missions of 2014: Year-opening
     flight is VA217 on February 6” (Jan. 14, 2014) (available at http://arianespace.com/news-mission-
     update/2014/1124.asp).
14
     Arianespace Mission Update, “Ariane 5 Flight VA216 is postponed for payload checks” (Feb. 14,
     2014) (available at http://www.arianespace.com/news-mission-update/2014/1132.asp).
15
     See Press Release, “Arianespace Flight VA218: Launch Postponed” (May 26, 2014) (available at
     http://www.arianespace.com/news-press-release/2014/5-26-2014-VA218.asp).
16
     See Press Release, “Ariane Flight VA217: Ariane 5 ECA – ABS-2 – Athena Fidus: Launch postponed”
     (Jan. 6, 2014) (available at http://www.arianespace.com/news-press-release/2014/1-6-2014-VA217-
     launch-postponed.asp); Press Release, “Ariane Flight VA216: Ariane 5 ECA – Astra 5B – Amazonas
     4A launch postponed” (Feb. 14, 2014) (available at http://www.arianespace.com/news-press-
     release/2014/2-14-2014-VA216-launch-postponed.asp). In addition, Arianespace is committed to

                                                    5


         Second, although Sea Launch and International Launch Services (“ILS”) have the

capability to launch a satellite the size of DIRECTV 14, neither of them offers a practical

alternative capable of meeting the impending milestone deadline. Switching to a

different provider would not expedite launch of the satellite, as there are already others

waiting on their manifests. Indeed, the schedules of those other launch providers also

have been affected by recent anomalies. ILS suffered a Proton launch failure on July 2,

2013 – the fourth launch anomaly for a Proton in two years. 17 It resumed launch

operations later in the year, but suffered another anomaly on its most recent launch. 18

Moreover, the ILS launch manifests for 2014 and 2015 are reportedly full. 19 Sea Launch

suffered a launch failure in January 2013, and although the investigation into the cause of

that failure concluded in May 2013, 20 there were no launches on that platform until late

May 2014. 21 By contrast, Arianespace is planning a record number of launches this year,

and the Ariane 5 has proven to be a very reliable platform. Accordingly, there simply is

no better option for launching DIRECTV’s satellite – and launching it quickly.




     launch the Automated Transfer Vehicle to the International Space Station in late July – a launch
     window that cannot be moved and therefore will push the queue back still farther.
17
     See “Fiery Proton Rocket Crash Leaves Commercial Customers in Limbo,” SPACENEWS (Jul. 8, 2013)
     (available at http://www.spacenews.com/article/launch-report/36142fiery-proton-rocket-crash-leaves-
     commercial-customers-in-limbo).
18
     See Press Release, “Russian State Commission Investigates Russian Federal Proton Launch Anomaly”
     (May 16, 2014) (available at http://www.ilslaunch.com/newsroom/news-releases/russian-state-
     commission-investigates-russian-federal-proton-launch-anomaly).
19
     See Peter B. de Selding, “ILS Rises Above Proton Problems,” SPACE NEWS (Jan. 13, 2014) (available
     at http://www.spacenews.com/article/launch-report/39071launch-satellite-contract-review-ils-rises-
     above-proton-problems).
20
     Press Release, “Sea Launch IS-27 FROB Report Complete” (Jun. 3, 2013) (available at
     http://www.sea-launch.com/news/11365).
21
     Press Release, “Sea Launch Successfully Launches EUTELSAT 3B” (May 27, 2014) (available at
     http://www.sea-launch.com/news/11407).


                                                     6


     C. Commission Precedent Supports Granting a Milestone Extension in These
        Circumstances

         The Commission imposes milestone deadlines for satellite system implementation

in order to ensure that licensees proceed with construction and launch of their satellites in

a timely manner and that valuable spectrum will not be held, to the exclusion of others,

by those who are unwilling or unable to proceed. 22 Extensions may be granted when the

delay is due to unforeseeable circumstances beyond the applicant’s control, or when there

are unique and overriding public interest concerns that justify an extension. 23 In this

case, both factors clearly support grant of DIRECTV’s milestone extension request.

         As discussed above, DIRECTV has had a launch services contract in place for

over two years with Arianespace, the most reliable provider of such services. Its satellite

has been virtually complete since December 2013. Unfortunately, however, under the

most recent estimate, an Ariane 5 launch window for DIRECTV 14 does not open until

approximately December 2014. There are no alternatives that would achieve a more

expedited launch. Accordingly, through no fault of its own, DIRECTV cannot meet the

final milestone in the DIRECTV RB-1 authorization.

         These are precisely the sort of circumstances in which the Commission has found

extension to be justified and appropriate. For example, in R/L DBS, the Commission

granted a five-month launch milestone extension based on, among other things, the

unavailability of a launch vehicle due to delay in delivery of a spacecraft scheduled for an

earlier launch and issues with the launch vehicle itself. 24 The Commission found that


22
     See, e.g., Amendment of the Commission’s Space Station Licensing Rules and Policies, 18 FCC Rcd.
     10760, ¶ 173 (2003); TerreStar Networks, Inc., 22 FCC Rcd. 17698, ¶ 6 (Int’l Bur. 2007)
     (“TerreStar”).
23
     See 47 C.F.R. § 25.117(e). See also TerreStar, ¶ 6; New ICO Satellite Services G.P., 22 FCC Rcd.
     2229, ¶ 14 (Int’l Bur. 2007) (“New ICO”).
24
     See R/L DBS Co., LLC, 18 FCC Rcd. 7694, ¶¶ 14-15 (Int’l Bur. 2003).

                                                    7


such matters were not within the licensee’s control, and therefore justified the requested

extension. 25 DIRECTV’s situation is virtually the same, and similarly justifies a

milestone extension.

           In addition, “the Commission has considered the extent of a satellite’s

construction and the amounts paid toward to the total contract price as factors in

milestone extension cases.” 26 Thus, for example, the Commission granted a five-month

extension to allow ICO to achieve completion and launch of its satellite. 27 Similarly, it

granted TerreStar a ten-month extension where its satellite was in the final stages of

construction and almost completely paid for, and it had a firm launch contract under

which substantial payments had also been made. 28 In this case, DIRECTV essentially

completed construction of the satellite months before the launch deadline, and has paid

approximately 98.5% of the pre-launch construction payments and 90% of the launch

services contract related to the satellite.

           Moreover, even were this not the case, DIRECTV’s demonstrated commitment to

construction and launch of this 17/24 GHz BSS payload presents the unique and

overriding public interest grounds that are an independent basis for granting a milestone

extension. The launch of the DIRECTV RB-1 payload will mark the culmination of an

effort that DIRECTV began over 15 years ago. Its long-time commitment will finally

bear fruit with the launch of the first 17/24 GHz BSS payload capable of providing


25
     Id., ¶ 17. See also Geostar Positioning Corp., 6 FCC Rcd. 2276, ¶ 4 (CCB 1991) (milestone
     extensions of one to one-and-a-half years granted based on revisions to launch provider’s revised
     manifest).
26
     New ICO, ¶ 15.
27
     Id.
28
     See TerreStar, ¶ 7 and n.15 (discussing factors and citing other cases in which similar commitment
     justified milestone extension).


                                                     8


commercial service. This additional capacity is coming online just in time to support the

launch of bandwidth-intensive ultra-high definition television (“Ultra HD”) services,

which promise a leap forward for video programming similar to that achieved with the

introduction of high definition service. 29 DIRECTV has invested years of effort and

hundreds of millions of dollars to get to this point. No one is more anxious to launch this

satellite than is DIRECTV.

          The Commission has found similar circumstances to justify extension of the

launch and operate milestone in prior cases. For example, in TerreStar, the Commission

found overriding public interest considerations that justified a ten-month extension.

There, as here, the licensee had demonstrated a substantial and continuing commitment to

satellite construction and system implementation. 30 In that case, satellite construction

was 84% complete, and the licensee had paid 97% of the total amount due under the

satellite construction contract price and 70% of the total amount due under the launch

services contract. The Commission also noted that grant of the extension would serve the

public interest because it would allow a licensee “that has demonstrated diligence and

commitment . . . to expeditiously complete implementation of a satellite system with

advanced capabilities for homeland security, rural connectivity, and other critical

communications purposes.” 31




29
     Ultra HD is an umbrella term that describes two different resolutions: 4K Ultra HD and 8K Ultra HD.
     4K Ultra HD has a resolution of 3,840 x 2,160 pixels, which is four times the number of pixels as
     HDTV, while 8K Ultra HD has a resolution of 7,680 × 4,320 pixels, or sixteen times the number of
     pixels as HDTV.
30
     TerreStar, ¶ 7.
31
     Id., ¶ 10.


                                                    9


         For similar reasons, granting a seven-month extension would be appropriate

here. 32 Like TerreStar, DIRECTV has worked diligently and invested significantly in its

satellite system, which will be the first one capable of providing commercial service in

the 17/24 GHz BSS band. DIRECTV has firm arrangements in place for launch of the

satellite within the period of the extension requested herein. It has requested a period

somewhat beyond that launch window in order to accommodate the time necessary for

in-orbit testing and arrival of the satellite on station at its assigned orbital location. Such

an extension is clearly justified in the circumstances presented here.

     D. In the Alternative, the Commission Should Waive the Final Milestone

         Pursuant to Section 1.3 of the Commission’s rules, the Commission may waive its

rules for good cause shown. 33 “Waiver is appropriate if special circumstances warrant a

deviation from the general rule and such deviation would better serve the public interest

than would strict adherence to the general rule,” including “more effective

implementation of overall policy.” 34 In determining whether waiver is appropriate, the

Commission should “take into account considerations of hardship, equity, or more

effective implementation of overall policy.” 35

         As explained above, the evidence that the satellite has been fully constructed and

will be ready for launch months before its launch vehicle will be available demonstrates

good cause for a waiver in this case. DIRECTV could neither foresee nor control the

cause of the launch delay, and a waiver would not undermine the purpose of the


32
     See 47 C.F.R. § 25.117(e) (applicant must justify length of requested extension).
33
     47 C.F.R. § 1.3. See also WAIT Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969), cert. denied, 409 U.S.
     1027 (1972); Northeast Cellular Telephone Co., LP v. FCC, 897 F.2d 1164 (D.C. Cir. 1990).
34
     GE American Communications, Inc., 16 FCC Rcd. 11038, ¶ 9 (Int’l Bur. 2001).
35
     WAIT Radio, 418 F.2d at 1159.


                                                     10


milestone requirements, as it would not result in, facilitate, or encourage spectrum

warehousing. 36 Moreover, grant of the requested waiver would promote the expeditious

use of the undeveloped 17/24 GHz BSS spectrum band, and enable DIRECTV to provide

Ultra HD programming and other video services to millions of subscribers across the

nation.

                          *                           *                          *

          For the foregoing reasons, DIRECTV respectfully requests that the Commission

grant a seven-month extension, up to and including February 28, 2015, to meet its

“launch and begin operations” milestone for DIRECTV RB-1. In the alternative, it

requests that the Commission waive that milestone for good cause shown.


                                             Respectfully submitted,

                                             DIRECTV ENTERPRISES, LLC



                                             By:      __/s/________________________
                                                      Romulo Pontual
                                                      Executive Vice President




36
     See, e.g., EchoStar Satellite Corp., 18 FCC Rcd. 15875, ¶ 9 (Int’l Bur. 2003); Astrolink Int’l LLC, 17
     FCC Rcd. 11267, ¶ 6 (Int’l Bur. 2002).


                                                     11


                                        DECLARATION

       I, Philip J. Goswitz, hereby make the following declaration under penalty of perjury. I

understand that this Declaration will be submitted to the Federal Communications Commission.

   1. I am Senior Vice President, Video, Space, and Communications at DIRECTV.

   2. I have reviewed the foregoing Application for Milestone Extension or Waiver, and certify

       that the facts set forth therein are true and correct to the best of my knowledge.



                                             __/s/_______________________________
                                             Philip J. Goswitz
                                             Senior Vice President,
                                              Video, Space, and Communications
                                             DIRECTV Enterprises, LLC

Executed: June 24, 2014


ATTACHMENT A


oJBSL
                                                                            John Celli
                                                                            President
June 19, 2014




Brian Regan
Vice President and Deputy General Counsel
DIRECTV
2260 E. Imperial Highway
El Segundo, CA 90245

Re: SSL Letter in support of DIRECTYV‘s FCC Extension Request

Dear Mr. Regan:

Space Systems/Loral (SSL) provides the following information regarding the original
contract schedule and the current anticipated schedule for DIRECTYV‘s use with the
FCC in support of DIRECTV‘s extension request of its reverse band authorization.

The construction of DIRECTV—14 satellite is at a very advanced stage now. At this time,
the spacecraft is in storage with all components and subsystems complete with the
exception of the Solar Array. All major test phases are complete including spacecraft
Thermal Vacuum, Vibration and Acoustics, Compact Antenna Test Range, and Final
Performance. The flight model Batteries have been installed and the performance of
the spacecraft has been shown to satisfy the contractual requirements during each test
phase.

The original contract ship date for DIRECTV—14 was April 2013, however the spacecraft
experienced delays to the delivery schedule for reasons including subcontract vendor
selection, manufacturing processes, technical challenges and the desire to do additional
work on the satellite to eliminate a situation experienced by another satellite
manufactured by SSL. Now, the delays have been addressed and certain re—work is
complete and being tested. We anticipate the final component for DIRECTV—14, which
is currently being tested, will be ready in August, 2014.

Based on this expectation, the DIRECTV—14 spacecraft will be ready to ship to the
launch site as early as September, 2014. This ready—to—ship date supports the current
Ariane 5 schedule based on our current knowledge of the Arianespace manifest.


Letter to Brian Regan
Page 2
June 19, 2014


Attached are photographs of the DIRECTV—14 spacecraft in four major phases of its
integration and test program:
       Spacecraft Thermal Vacuum
       Vibration
       Compact Antenna Test Range (CATR)
       Storage (without Solar Arrays)

Per your request, we confirm that this letter is given for information purposes only with
respect to DIRECTV‘s need to provide an update to the FCC, and all terms, conditions,
obligations and covenants of the contract will remain and continue in full force and
effect, without any change whatsoever. Additionally, SSL confirms that we have
received all payments due and owing from DIRECTV to date. Such payments amount
to approximately 98% of the DIRECTV—14 satellite price (which does not include certain
payments related to performance and in—orbit incentives).

We have and will continue to undertake every effort to mitigate delays on the DIRECTV—
14 program. We firmly believe that the quality of the product we deliver is of supreme
importance. Please be assured that we will not make any compromise on the quality of
the satellite in the interest of schedule.

Sincerely,



L_Cce
John Celli
President




co:   Phil Goswitz


DIRECTV—14 Lifted from the Spacecraft Thermal Vacuum Chamber


DIRECTV—14 Being Tested in Spacecraft Vibration Facility


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                                                  \ u‘ei‘-
                                 hA ,“   ,!'Vue( it
                     U.L,‘l}# , ",;
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Compact Antenna Test Range Testing of DIRECTV—14


                                                                             ECce
                                                                              §§
                                                                               +
                                                                                —
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                                                                     &
                                                                      [3
                                                    Images are for SSL internal use only.
  Images to be used for public, customer, or suppler release must be pre—approved in advance by Export Control and Business Development


DIRECTV—14 Shown in Storage (June 10, 2014)


ATTACHMENT B


                                                             service & solutions

     Direction Commerciale



                                                                           Attn. Mr. Brian REGAN
                                                                           Associate General Counsel
                                                                           DIRECTV OPERATIONS, Inc
                                                                           2230 East Imperial Hwy
                                                                           El Segundo
                                                                           California 90245
                                                                           USA

                                                                           Evry—Courcouronnes, 18 June 2014
                                                                           Ref.: DC/SC/CBA/VPR/L14—118 Issue 2



     VIA ELECTRONIC MAIL ONLY


     Subject:                DIRECTV—14 and 15 Launch Services Agreements Status



     Dear Mr. Regan,

     This purpose of this letter is to confirm that the Launch Services Agreement (Contract
     DC/V/RDA/VSH/C11—009 signed on September 09‘", 2011) for DIRECTV—14 and
     DIRECTV—15 is in full force and effect. Current manifest objectives foresee a launch of
     DIRECTV—14 before the end of 2014 and DIRECTV—15 is expected to be launched
     during the first quarter of 2015.

     I also want to confirm that, to date, DIRECTV has paid 90 % of the launch services
     price for DIRECTV—14 and 90 % of the launch services price for DIRECTV—15.

     Do not hesitate to contact me if you have further questions.

     With my best regards,




                                                                                                                    7



                                                                                       Christophe BARDOU
                                                                             Program Director for DIRECTV—14



     Copies:
     DIRECTV                      P. Goswitz, J. Seto, C. Ho.
    Arianespace                   W. Kernisan, M. Callari, F. Desnoues, C. Bardou, R. Darde.

                                                            www.arianespace.com
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