Attachment Grant

Grant

DECISION submitted by IB,FCC

Grant

2007-11-14

This document pretains to SAT-STA-20070926-00133 for Special Temporal Authority on a Satellite Space Stations filing.

IBFS_SATSTA2007092600133_605583

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                                           Attachment
                                File No. SAT-STA-20070926-00133


             EchoStar Satellite Operating Corporation’s request, File No. SAT-STA-
      20070926-00 133, IS GRANTED, and EchoStar Satellite Operating Corporation
      (Echostar) IS AUTHORIZED to operate Direct Broadcast Satellite service from its
      EchoStar 12 satellite over Channels 23 and 24 at the 61.5” W.L. orbital location for a
      period of 180 days, from October 2, 2007 to March 3 1,2008, subject to the following
      conditions :

      1. Echostar’s use of channels 23 and 24 at the 61 S oW.L. orbital location shall cause no
      harmful interference to any other lawfully operating radio station and EchoStar shall
      cease operation on those channels immediately upon notification of such interference.

      2. EchoStar shall not claim protection from interference from any other lawfully
      operated radio station with respect to its operations on channels 23 and 24 and that
      Echostar’s operation on channels 23 and 24 is at its own risk.

      3. Upon launch and operation of a replacement satellite for EchoStar 3 at the 61 S o W.L.
      orbital location, the following conditions will apply:

             a) Echostar:

                     i>      must inform its customers, in writing, that services using
                     the two unassigned channels at the 61.5” W.L. orbit location will
                     be discontinued upon the termination of Echostar’s temporary
                     authority to operate on these channels;

                     ii)   must provide the following language to its customers in its
                     monthly billing statements:

                            “The [name of module(s)] is only
                            temporarily available. Dish Network will
r,
                            discontinue these services upon the
(3,                         termination of Dish Network’s temporary
                            authority to operate on these channels.
                            Therefore, [name of module] will cease to
                            be available to you upon the termination of
                            Dish Network’s temporary authority to
                            operate on these channels without prior
                            notice. If you have any questions, please
                            call us toll-free at [insert telephone
                            number] .”

                     iii)   must include in all marketing notification that service is




      k4
                     being provided on a temporary basis and may be diminished or


               discontinued at any time. Any failure to comply with customer
               notification procedures will be subject to enforcement action.

       b) Use of channels 23 and 24 at the 61.5" W.L. orbit location is for free-
       standing separate programming packages that are not required as a
       condition of purchasing any other programming packages and that are
       readily capable of being withdrawn on short notice. Consumers should
       not have any expectation that the packages that they are purchasing
       include additional programming provided over channels 23 and 24. Any
       failure to comply with this programming requirement will be subject to
       enforcement action.

4. EchoStar must file a report on February 11,2008 describing the status of the
replacement satellite for the EchoStar 3 satellite, and the operating status of the EchoStar
3 satellite. In its report, EchoStar should indicate the status of the construction of the
replacement satellite, as well as the status of the associated launch vehicle.

5. EchoStar must file a report on February 11,2008 describing any change to the
operating status of the satellite since EchoStar filed its Spacecraft Health Report for the
EchoStar 3 satellite on July 3,2007.

6. EchoStar shall cease operations on channels 23 and 24 at the 61 SoW.L. orbit location
upon the launch and operation of a satellite regularly licensed to operate on these
channels at this location.

7. This Special Temporary Authority is conditioned on the outcome of any rules adopted
in the Notice of Proposed Rulemaking Proceeding in IB Docket 06-160 (DBS License
Processing Procedures Rulemaking).

8. This Special Temporary Authority is conditioned on the outcome of the Commission
decision on the petition for reconsideration of eligibility restrictions for DBS Channels 23
and 24 at the 61.5" W.L. orbital location.

9. This Action is taken pursuant to Section 0.261 of the Commission's rules on delegated
authority, 47 C.F.R. 5 0.26 1, and is effective immediately. Petitions for reconsideration
under Section 1.106 or applications for review under Section 1.115 of the Commission's
rules, 47 C.F.R. $9 I. 106, 1.115, may be filed within 30 days of the date of the public
notice indicating that this action was taken.


2. Contact

                     Name:        Pantelis Michalopoulos           Phone Number:                      202-429-6494
                     Company:     Steptoe & Johnson LLP            Fax Number:                        202-429-3902
                     Street :     1330 Connecticut Ave., NW        E-Mail:                            pmichalo@steptoe.com


                     City:        Washington                       State:                              DC
                     Country:     USA                              Zipcode:                           20036     -1795
                     Attention:                                    Relationship:                      Legal Counsel


  (If your application is related to an application filed with the Commission, enter either the file number or the IB Submission ID of the related
application. Please enter only one.)
  3. Reference File Number SATSTA2007032900058 or Submission ID
     4a. Is a fee submitted with this application?
       If Yes, complete and attach FCC Form 159. If No, indicate reason for fee exemption (see 47 C.F.R.Section 1.1114).
0 Governmental Entity 0 Noncommercial educational licensee
0 Other(p1ease explain):
          ~~~~~~~~                                                                ~~~~~




(4b.Fee Classification CRY - Space Station (Geostationary)
5. Type Request

    0 Change Station Location                          @   Extend Expiration Date                    0 Other

6. Temporary Orbit Location
                                                                              I
                                                                              7. Requested Extended Expiration Date
                                                                                   2008-03-29 0O:OO:OO.O




2


18. Description     (If the complete description does not appear in this box, please go to the end of the form to view it in its entirety.)
         This application requests renewal of EchoStar Satellite Operating Corporation’s special
         temporary authority to operate a DBS satellite using channels 23 and 24 at the 61.5W
         orbital location for an additional 180 days. Please see the attached narrative for
         additional detail.



    9. By checkingyes, the undersigned certifies that neither applicant nor any other party to the application is subject     e Yes           0 No
    to a denial of Federal benefits that includes FCC benefits pursuant to Section 530 1 of the Anti-Drug Act of 1988,
    2 1 U.S.C. Section 862, because of a conviction for possession or distribution of a controlled substance. See 47 CFR
    1.2002(b) for the meaning of "party to the application" for these purposes.



I
10. Name of Person Signing
Linda Kmney                                                                   I11 . Title of Person Signing
                                                                               Vice President, Law and Regulation
I 12. Please supply any need attachments.
     Attachment 1: Narrative App.                     Attachment 2:                                      Attachment 3:


              WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND / OR IMPRISONMENT
                     (U.S. Code, Title 18, Section 1OOl), AND/OR REVOCATION OF ANY STATION AUTHORIZATION
                      (U.S. Code, Title 47, Section 3 12(a)(l)), AND/OR FORFEITURE (U.S. Code, Title 47, Section 503).




3


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THE FOREGOING NOTICE IS REQUIRED BY THE PAPERWORK REDUCTION ACT OF 1995, PUBLIC LAW 104-13, OCTOBER
1,1995,44 U.S.C. SECTION 3507.




4


                                    Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                              Washington, D.C. 20554

                                                 ~~




                                                      )
In the Matter of                                      )
                                                      )
ECHOSTAR
       SATELLITE
              OPERATING                               )
CORPORATION                                           1     File No.   SAT-STA-20060324-00029
                                                      )     File No.   SAT-STA-20070105-00008
Request for Renewal of                             1        File No.   SAT-STA-20070329-00058
Special Temporary Authority to Operate a           )        File No.   SAT-STA-20070926-
Direct Broadcast Satellite Over Channels 23 and 24 )
At the 61.5’ W.L Orbital Location                  )


            REQUEST FOR RENEWAL OF SPECIAL TEMPORARY AUTHORITY

       EchoStar Satellite Operating Corporation (“EchoStar”) requests renewal of its special

temporary authority (“STA”) to operate on channels 23 and 24 at the 61.5” W.L. orbital location

for an additional one hundred and eighty days. EchoStar also requests that the Commission grant

the requested renewal subject to the same temporary suspension of the customer notification and

programming conditions that the International Bureau approved for the 61.5” W.L. STA.’

Consistent with that Bureau decision, grant of this renewal request would continue to serve the

public interest.

I.      BACKGROUND AND PROCEDURAL HISTORY

        As EchoStar has explained in the original STA request, DBS channels 23 and 24 at the

61.5” W.L. orbital location have a “unique” history. In stark contrast to the vast majority of DBS

spectrum, these channels have remained unassigned and unlicensed. In fact, these channels “are

        1
       See Echostar SateZkte Operatzng Coporation,Appkcationfor Modfication of SpeczaZ
TemporayAuthorz@to OperateDzrect Broadcast SateZkte Serice over Channeh23 and24ut
the 6L5OKL. OrbitaZLocatzon, Order and Authorization, DA 07-5 18,y 5 (rel. Feb. 2, 2007)
(“6L5STAOrde?’).


the only two remaining unassigned DBS channels in the 12 GHz band that are assigned to the

United States that can provide service to most of the contiguous United States.”2

       In an effort to ensure that such valuable spectrum does not lie fallow, the Commission

has provided STAs to DBS providers to operate on these channels for the past eight years subject

to different conditions. The Commission initially granted EchoStar an STA to operate on the

unassigned channels as well as to 8 channels assigned to Dominion Video Satellite, Inc. and the

1 1 channels assigned to Rainbow on March 2 1, 1 9 9 Rainbow
                                                     ~ ~     subsequently operated on the

unassigned channels for a two-year p e r i ~ dbefore
                                              ,~     EchoStar acquired the Rainbow 1 satellite


       Razzbow DBSCompanny,LLCandEchoSar SateL4teL.L.C, FCC 05- 177,
Memorandum Opinion and Order, IB Docket No. 05-72,y 29 (rel. Oct. 12, 2005) (“Razhbow1
Asszgnment Orde?’),
       3
          See In the Matter ofDzrect BroadcastzngSateZhZe Coporatzon,Appkcatiunfor SpeczaZ
TemporayAuthoriQ tu Operate a Dzrect Bruadcast SateZkte Over Channeh1-21fadd/ and23-
32foddandeven) at 6L5OKL., Memorandum Opinion and Order, FCC Rcd. 6392 (1998)
(“EchoStarl998STA Grant’).The Commission renewed this authority on September 16, 1998.
See In the Matter ofDzrect Broadcasting SateZkte Coporatioe Appkcationfor SpeciaZ
TemporayAuthorz@to Operate a Dzrect Broadcast SateZkte Over Channeh 1-21fodd/ and23-
32 @ddandeven/at 615OKL., Letter from Thomas S. Tycz to David K. Moskowitz, File No.
SAT-STA-19980827-00068 (Sept. 16, 1998). The September 16, 1998 renewal of Echostar’s
STA was for 180 days, or with respect to the relevant channels, until “(2) receipt of a license by
Dominion Video Satellite, Inc. or R/L DBS to begin service from the 61SoW.L. orbital location
...” The Commission again verbally renewed the authority on March 16, 1999, imposing the
same terms and conditions. See File No. SAT-STA-19990305-00026. Dominion received such
a license in 1999 and Echostar’s STA with respect to Dominion’s channels expired. The
Commission granted renewal requests for the 11 channels assigned to Rainbow and the 2
unassigned channels in 1999,2000,2001, and 2002. See File Nos. SAT-STA-19990907-00089,
SAT-STA-20000308-00066, SAT-STA-20010226-00024, SAT-STA-20010820-00076, and
SAT-STA-20020220-00021. In 2003, EchoStar discontinued service on these channels within 7
days of receiving notice from the Commission that it must do so. SeeLetter from Jennifer M.
Gilsenan, Chief, Policy Branch, Satellite Division to Pantelis Michalopoulos, Re: Request of
EchoStar Satellite Corporation for Renewal of Its Special Temporary Authority to Operate a
Satellite Over Channels 1-23 (odd) and 24 the 61.5’ W.L. Orbital Location - File No. SAT-STA-
20030214-00071 (June 13,2003).
       4
         Rainbow DBS Company, LLC, received the STA to operate on the unassigned channels
in 2003. EchoStar SateZkte Coporatzbn andRazhbow DBS Company LLC: Order and
Authorization, 18 FCC Rcd 19825 (2003) (“RazhbuwSTA Orde?’).

                                                2


and regained authority last year.5 The Commission has highlighted repeatedly “the importance

of ensuring that spectrum can continue to serve the public rather than lying fallow unnecessarily,

even on a temporary basis.”6 During the past eight years, the flexibility provided by this much-

needed capacity has proven instrumental to DBS providers.

       The future of these unassigned channels is, however, also subject to the uncertainty

surrounding the Northpozht decision that vacated the Commission’s DBS auction rules, and the

DBS freeze implemented by the Commission in response to that d e ~ i s i o n As
                                                                             . ~ a result, a new

licensee will not be in a position to provide services from these channels for a number of years.

In fact, while the Commission initiated a proceeding in 2006 to establish the mechanism by

which these channels could be ultimately licensed and operated, that proceeding is still pending.’




       5
         The Rainbow STA was assigned to EchoStar Satellite L.L.C. (“ESLLC”) in October
2005 as part of the sale of the Rainbow 1 satellite to Echostar. SeeEchoSarSateZkteL.L.C,
File No. SAT-STA-20050930-00183 (granted Sept. 30,2005); see aho Razhbow 1Asszgnment
Ordeer. The STA was then assigned from ESLLC to EchoStar in September 2006. See
Appficationfor Pro Forma Asszgnment ofLicensesfrom Echostar SateZkteL.L. C to EchoStar
SateZhZe Operatzkg Corporation,File No. SAT-ASG-20051129-00256 (granted Sep. 13,2006).

      Razkbow STA OrdeG 7 8; see aho Echostar 1998STA Gran4 7 7 (“furthering the
Commission’s objective to make efficient use of available spectrum.”).

         Northpozht 22chnoZo~Ltd FCG 412 F.3d 145 (D.C. Cir. 2005) (“Northpozht’);
Pub1ic Not ice, Direct Broadcast SateZkte (DBq SeniceAuction NuZhfled. CommzksionSets
Forth Refundproceduresfor Auction No. 52 WinnzngBidders andAdoptsa Freeze on AZZNew
DBSSe~iceAppkcatzons,       FCC 05-213 (rel. Dec. 21,2005) (“DBSFeezeNoticd’).The DBS
freeze does not apply to “requests for special temporary authority.’’ Id at 2.
       8
        See Amendment ofthe Commzksion j . Pokcies andRuZesfor ProcesszngAppkcations zn
the DzFect Broadcast Satelkte Senzce zh the UnitedSlates,Notice of Proposed Rulemaking, 2 1
FCC Rcd 9443 (2006).

                                                 3


       In March 2006, EchoStar sought an extension of its 61.5" W.L. STA, and also requested a

modification to relax the STA's customer notification requirements.' On January 5 , 2007,

EchoStar filed a request for expedited action on the pending March 2006 STA application."

EchoStar also sought to waive temporarily the programming condition to which the STA was

subject," because the deteriorating condition of the EchoStar 3 satellite, co-located at the 61So

W.L. orbital location, made it necessary for EchoStar to utilize Channels 23 and 24 in order to

maintain regular programming to its subscribers from 6 1.5" W.L.

       In February 2007, the International Bureau granted Echostar's request to renew its STA

to operate Channels 23 and 24 at 61.5" W.L. and found that it would serve the public interest to

suspend temporarily the customer notification and programming conditions. l 2 In particular, the

Bureau found that "[sluspending these restrictions will enable EchoStar to avoid any further

disruption to its customers as a result of the EchoStar 3 transponder failures. It will also avoid

confusion to its customers regarding the continued availability of pr~gramming."'~Further, the


       'See File No. SAT-STA-20060324-00029. Specifically, this condition requires that
EchoStar notify subscribers that the services provided using the two unassigned channels are
provided pursuant to a grant of temporary authority and may be reduced or discontinued at any
time. EchoStar is also required to provide billing inserts informing consumers of the services
provided on these channels and the expiration date of the temporary authority for the two
channels.

        lo   See File No. SAT-STA-20070105-00008.
        11
          Specifically, the condition requires that: "[Ulse of channels 23 and 24 at the 61.5"
W.L. orbital location is for free-standing separate programming packages that are not required as
a condition of purchasing any other programming packages and that are readily capable of being
withdrawn on short notice. Consumers should not have any expectation that the packages they
are purchasing include additional programming provided over channels 23 and 24. Any failure
to comply with this programming requirement will be subject to enforcement action." Rainbow
STA OrdeF at 7 18.




                                                  4


Bureau held that “[tlemporary suspension will give EchoStar greater flexibility to meet its

customers’ needs until it is able to launch its planned replacement satellite into that location ater

this year.”14 The Bureau also imposed a reporting condition on Echostar, which EchoStar ti nely

satisfi ed.

         On March 29,2007, filed a request to renew its STA for an additional sixty days.16 The

Bureau granted this request on April 20,2007 for one hundred and eighty days.I7 In its grant, the

Bureau required that EchoStar report on the status of a replacement satellite for the EchoStar 3

satellite and on the operational status of the EchoStar 3 satellite by July 3, 2007.18 EchoStar

timely submitted the required report. In its report, EchoStar provided an update the replacement

of the EchoStar 3 satellite and explained that the health of the EchoStar 3 satellite had not

changed since its report in March, 2007. EchoStar committed to provide an update on the status

of a replacement satellite for EchoStar 3 and the operational status of the EchoStar 3 satellite

when it filed for renewal of the April 20,2007 STA grant.




         l 5 See zd, 7 15. On March 5,2007, EchoStar submitted a letter and report in File Nos.
SAT-STA-20060324-00029 and SAT-STA-20070105-00008 detailing its plans for a
replacement satellite for the 61.5’ W.L. orbital location and the condition of the EchoStar 3
satellite. Subsequent to the March 5, 2007 filing, an intergovernmental commission comprising
representatives of Ukrainian and Russian organizations determined that the Zenit-3SL carrier
rocket, used in the unsuccessful January 2007 Sea Launch operation, failed due to a metal
particle entering the engine’s pump.
         16
              See File No. SAT-STA-20070329-00058.
         17
              See Grant Stamp, File No. SAT-STA-20070329-00058.

              See Conditions 4 and 5 of the Grant Stamp.

                                                   5


11.    UPDATE ON STATUS OF REPLACEMENT SATELLITE FOR ECHOSTAR 3
       AND THE HEALTH OF THE ECHOSTAR 3 SATELLITE

       EchoStar has not finalized its replacement plans for EchoStar 3 yet. In developing that

plan, EchoStar has been faced with two complications. First, a Proton rocket carrying a Japanese

spacecraft exploded shortly after takeoff on September 5,2007. The ongoing investigation of

this disaster has made launch windows even more scarce than they previously were and EchoStar

has placed new launch plans and the associated redeployment of its satellite fleet temporarily on

hold. Second, on June 8, 2007, EchoStar and Dominion Video Satellite, Inc. ("Dominion")

requested authority for the assignment of Dominion's license, covering eight channels at 6 1.5"

W.L., to Echostar. The applicants look forward to the Commission's prompt grant of this

application, which was placed on public notice on June 15,2007, and has not been approved.

       There have been no further changes in the operational status of the EchoStar 3 satellite

since the report EchoStar submitted on July 3,2007.

11.    GRANT OF A RENEWAL STA SUBJECT TO THE SAME TEMPORARY
       SUSPENSION OF THE CUSTOMER NOTIFICATION AND PROGRAMMING
       CONDITIONS WOULD CONTINUE TO SERVE THE PUBLIC INTEREST

       The same conditions that led the Bureau to grant renewal of the STA for channels 23 and

24 and to temporarily suspend the customer notification and programming conditions for the

STA in the 6LJ0ST4Ordevare still applicable. EchoStar 3 continues to operate at diminished

capacity due to the earlier transponder failures. As a result, EchoStar still needs to utilize

Channels 23 and 24 to maintain regular programming from the 61.5' W.L. orbital location.

Further, for the reasons explained above, EchoStar has not yet deployed a replacement satellite

capable of serving all the assigned and leased channels at the 61.5" W.L. orbital location, and has

not yet finalized the replacement plans. Thus, grant of a renewal STA subject to the same

temporary suspension of the customer notification and programming conditions will continue to


                                                  6


“enable EchoStar to avoid any further disruption to its customers as a result of the EchoStar 3

transponder failures” and “will give EchoStar greater flexibility to meet its customers’ needs

until it is able to launch its planned replacement satellite.”

111.    CONCLUSION

        For the foregoing reasons, EchoStar requests that Commission renew its STA to operate

on Channels 23 and 24 for an additional one hundred and eighty days subject to the same terms

and conditions provided for in the 6ZYS’        Ordeer.

                                                Respectfully submitted,

                                                EchoStar Satellite Operating Corporation



Pantelis Michalopoulos                          Linda Kinney
Brendan Kasper                                  Vice President, Law and Regulation
Steptoe & Johnson LLP                           Brad Gillen
1330 Connecticut Avenue N. W.                   Regulatory Counsel
Washington, D.C. 20036                          EchoStar Satellite Operating Corporation
(202) 429-3000                                  1233 20th Street, N.W.
                                                Suite 302
                                                Washington, DC 20036-2396
                                                (202) 293-098 1

Counselfor Echostar Satelfite Operatzng Coporation

September 26,2007




                                                   7



Document Created: 2007-11-14 09:57:38
Document Modified: 2007-11-14 09:57:38

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