Attachment de facto control

de facto control

NOTICE submitted by PanAmSat/Horizon

de facto control

2004-09-19

This document pretains to SAT-PDR-20030210-00015 for Petition for Declaratory Ruling on a Satellite Space Stations filing.

IBFS_SATPDR2003021000015_397154

taw orrices corpBERG, GoDLES, WIENER & WRIGHT 1zze ineteenm: steet Nw. waskmaton, bo. zocse.213 weniy couosena gon «n Josern a aooues Telrcoren: @9 aas—wre shimosrunbecne wovens RECEIVED ena neumierm wniont AUG 1 9 200 qoeni@gavacom Tiowas a. axermnos, ro. weostennegeatcon comset. Fifusit icbn Ofce t Secnuy August 19, 2004 2 "220tte u J 5 an, BY HAND DELIVERY ""%,.ffivm Marlene H. Dortch Secretary Federal Communications Commission 445 12th St, SW. Washington, DC 20554 Re: Notification of Change in Ownership of Horizons I Eile Nos. SAT—PDR—20030210—00015 & SAT—PPL—20040112—00004 Dear Ms. Dortch: Horizons Satellite LLC ("Horizons LLC"), pursuant to the Satellite Licensing Streamilining Order"and Section 25.137(g)? of the Commission‘s rules, hereby notifies the Commission of a change in defacto control of PanAmSat Corporation ("PanAmSat"), one of Horizons‘ two members. Horizons LLC is a 50/50 joint venture between PanAmSat and JSAT International, Inc. ("JSAT*), a subsidiary of JSAT Corporation. ! Amendment ofthe Commission‘s Space Station Licensing Rules and Polices, Frst Report and Order and Further Notice of Proposed Rulemaking, 18 FCC Red 10760 (2003) mar orn bescrg

Marlene H. Dortch August 19, 2004 Page 2 Introduction Horizons LLC is the owner of Horizons I, which is the Ku—band payload on Galaxy 135 Horizons I operates at 127° W.L. and is lcensed by Japan. On November 24, 2003, the Commission added Horizons I to its Permitted Space Station List (PSSL."),* and on May 27, 2004, the Commission modified the PSSL entry for the satellite by adding authority for Horizons I to be used to provide one—way direct—to— home services5 After the Commission added Horizons I to the PSSL,it consented to a transfer of control of PanAmSat. More specifically, the Commission authorized Hughes Electronics Corporation ("Hughes")° to transfer control to The News Corporation Limited (News Corp.") of various Commission licenses and authorizations held by Hughes and its wholly— or majority—owned subsidiaries, including PanAmSatThe parties subsequently consummated this transfer of control.® Procedurefor PSSL Ownership Changes The Commission‘s procedure for changing ownership of PSSL satellites is "very simple."? As described in its Satellite Licensing Streamlining Order, the Commission, after "the transaction has taken place," will issue a public notice announcing the transaction and "inviting comment on whether the transaction affects any of the considerations made when the original satellite operator was allowed to enter the U.S market."© satelite was formerly known as Galaxy XHIL PanAmSat recently began identifying the satelites in the Galaxyfeet using Arabic numerals instead of Roman numerals, The Commission has authorized PanAmSats subsidiary, PanAmSat Licensee Corp, to operate the C:band payload on Galaxy 13 at 127 WL See ile Nos.SAT—LOA—19991207—00118, SAT—AMD—20030228—00020 "Horizons Stelite LLC Petition fr Declaratory Rulingto Add Horizons I t he Permited Spoce StationList, Order, DA 03—3760 (el. Nov. 24,2003) 5 See Order and Authorization, DA 01315 * Hughes subsequently changed its name to The DIRECTV Group,Inc. 7 See General Motors Corporation, Hughes Electronics Corporation, and The News Corporation Limted, Mesmorandum Opinion and Order, MB Docket No. (9—124, 19 FCC Red 473 (2004). Se also General Motors Cororation, Hughes Blectroncs Corporation, and The News CorporationLinited, Supplemental Order, DA 04— 961 (Apr 9, 2004) at47. * See Leter from William M. Wiltshire and Michael D. Nilsson, Harris, Wilishire& Grannis LLP, Counsel for News Corp, to Marlene Dortch, Secretary, Federal Communications Commission (Dec. 23, 2003) * Satelite Lcensing Streamlining Order at 1326 en corpHERG, GoDLES, WIENER & WRIGHT

Marlene H. Dortch August 19, 2004 Pages Application of PSSL Ownership Change Procedures to the Transfer of Control of PanAmSat The Commission previously determined, based on its consideration of competition issues and Horizons LLC‘s financial, legal, and technical qualifications, that adding Horizons I to the PSSL was in the public interest." It reaffirmed that determination when it authorized Horizons LLC to provide one—way DTH services via Horizons L Transferring control of PanAmSat to News Corp. has no impact on these considerations. The Commission‘s competition analysis was based on the fact that Horizons 1 is licensed by Japan, and the change in de facto control of PanAmSat does not change the identity of the licensing country or otherwise alter the analysis. Horizons LLC‘s financial qualifications are no longer relevant, because Horizons I has been constructed and launched and is operating. The only change to Horizons LLC‘s legal qualifications is that News Corp. now has defacto control of PanAmSat, one of Horizons LLC‘s two members. As discussed above, however, the Commission already has found, following a thorough evaluation, that News Corp.is qualified to control PanAmSat!® Finally, there have been no changes to Horizons LLC‘s technical qualifications, because the operating parameters for Horizons I have not been altered. Accordingly, and for the reasons stated herein, Horizons LLCremains qualified to serve the United States via Horizons I following the transfer of control of PanAmSat to News Corp Sincerely, drneyfor PanAmSat Corporation Member, Horizons Satellite LLC " Herizons Stelite LC Petiion for Declratory Ruling to Add Horizons I tothe Pernitted Spac Station Lis, Order, DA 03—3760 (rl. Nov. 24, 200) "* Order and Authorization, DA 041315 (May 27,2004). " Seen.7, supra. 1t also noted that News Corp deficto control of PanAmSat is temporary, because the Commission has consented to a further ransfer of control of PanAmSatfrom News Corp. t ive limited Habilty companies owned by private equity partnerships. See Public Notice, DA 02509 (Aug.1, 2004) Consurnmation ofthat transfer of control is imminent, following which PanAmSat will be iling a further notification concerning Horizons L. GoLDBERG, GODLES, WIENER & WRIGHT


Document Created: 2004-09-25 18:22:22
Document Modified: 2004-09-25 18:22:22
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