Attachment Exhibit F

This document pretains to SAT-T/C-20101223-00267 for Transfer of Control on a Satellite Space Stations filing.

IBFS_SATTC2010122300267_858125

                                                                           FCC Form 312
                                  Response to Questions 43 (Main Form) & A21 (Schedule A)


                                          EXHIBIT F
     DESCRIPTION OF THE APPLICATION AND PUBLIC INTEREST STATEMENT




I.     INTRODUCTION


       The Applicants seek the consent of the Federal Communications Commission (“FCC” or

“Commission”) to the transfer of control over the authorizations held by TerreStar License Inc.,

Debtor-in-Possession (“TSL DIP”), a wholly-owned direct subsidiary of, TerreStar Networks

Inc., Debtor-in-Possession (“TSN DIP”). The requested authorization reflects the joint plan of

reorganization (as amended from time to time, the “Plan”) filed in a consolidated Chapter 11

bankruptcy case pending before the United States Bankruptcy Court for the Southern District of

New York (“Bankruptcy Court”).1 TSL DIP and TSN DIP will emerge from the bankruptcy as

reorganized TerreStar License Inc. (“New TSL”) and reorganized TerreStar Networks Inc.

(“New TSN”), respectively. New TSL will remain directly wholly-owned by New TSN, but the

ownership structure of New TSN will change. Specifically, TSN DIP is now indirectly majority

owned by TerreStar Corporation.2 TerreStar Corporation’s largest shareholder is Harbinger

Capital Partners Funds,3 and its other shareholders include EchoStar. Pursuant to the proposed

Plan, TerreStar Corporation’s indirect ownership interest will be extinguished and New TSN will


       1
       See In re TerreStar Networks Inc., Case No. 10-15446 (SHL) (SDNY Oct. 19, 2010).
The Bankruptcy Court has not yet confirmed the Plan.
       2
        TerreStar Corporation has not filed a petition for relief under the Bankruptcy Code, but
the Applicants expect TerreStar Corporation to do so in the near future.
       3
         These funds consist of Harbinger Capital Partners Master Fund I, Ltd., Harbinger
Capital Partners Special Situations Fund, L.P., and Credit Distressed Blue Line Master Fund,
Ltd.


EXHIBIT F
Page 2 of 15

then issue new securities. As a result, New TSN’s largest shareholder will be EchoStar

Corporation (“EchoStar”), which is anticipated to hold at least 50% of the equity and voting

interests in New TSN. EchoStar, in turn, is controlled by Mr. Charles W. Ergen. The proposed

transfer of control is illustrated in the following two partial and simplified diagrams.4


                          Diagram 1 – Debtor-in-Possession Structure


                   Harbinger Capital Partners Funds
                    (Cayman Islands and Delaware)



                                            25.9% equity

                                                                                   TerreStar Corporation
                                                                                        (Delaware)


                                                           Indirect 89.3% equity




                                      TerreStar Networks Inc., Debtor-in-Possession
                                                      (Delaware)


                                                              100% equity/voting

                                       TerreStar License Inc., Debtor-in-Possession
                                                       (Delaware)




       4
         More detailed diagrams depicting the structure of the proposed transaction are included
in Exhibit E.


EXHIBIT F
Page 3 of 15

                             Diagram 2 – Post-Emergence Structure


                                              Charles Ergen
                                                 (USA)



                                                      Indirect voting control


                                          EchoStar Corporation
                                                (Nevada)



                                                      ≥ 50% equity/voting


                                          TerreStar Networks Inc.
                                                (Delaware)



                                                       100% equity/voting


                                           TerreStar License Inc.
                                                (Delaware)




       The proposed transaction fully complies with the Communications Act of 1934, as

amended, and the Commission’s rules and policies. In addition, because TSN DIP will be able

to restructure its debt through its pending bankruptcy organization (by potentially removing more

than $1 billion in liabilities from its balance sheet) and thereby improve its access to capital, the

public will benefit significantly from the advanced mobile broadband capabilities that the

transaction will help unleash and that New TSN’s next-generation MSS/ATC system will bring

to American consumers. EchoStar is well equipped to help New TSN and New TSL execute a

successful strategy for its 2 GHz Mobile Satellite Service (“MSS”) system and the authorized

ancillary terrestrial component (“ATC”) of that system. EchoStar has significant experience

both with providing complementary satellite and terrestrial services and with managing spectrum

sharing and interference issues between such services. Finally, the proposed transaction will not


EXHIBIT F
Page 4 of 15

have any adverse effect on competition in any relevant market because EchoStar does not

provide MSS service and does not have an attributable interest in any other MSS provider.


II.    THE AUTHORIZATIONS TO BE TRANSFERRED AND THE APPLICANTS


       A.      Authorizations to Be Transferred


       The Applicants are filing multiple concurrent applications to transfer control of the

licensee of the following FCC licenses and authorizations:


             Call Sign/File No.                         Description
           S2633                    Letter of Intent spectrum reservation to provide
                                    MSS using the TerreStar-1 satellite.
           E090061                  Authorization for 15 calibration earth stations in
                                    the 2 GHz band.
           E070098                  Fixed satellite service (“FSS”) Ku-band earth
                                    station authorization for two antennas in Las
                                    Vegas, Nevada.
           E060430                  FCC license for two million mobile earth terminal
                                    (“MET”) handsets that includes ATC
                                    authorization.
           ITC2142010051300194 Section 214 authorization for international MSS.
           ITC2142010051300195 Section 214 authorization for global facilities-
                               based and resale authority.



       The Applicants request that Commission approval also extend to transfer of control over

any authorizations granted to TSL DIP or TSN DIP after the date of this Application.5 The

Applicants will also duly file a letter under Section 1.65 of the Commission’s rules, advising the

       5
          In addition, the Applicants respectfully request the Commission to waive application of
its “cut-off” rules with respect to any applications that may be filed by TSN DIP or TSL DIP
during the Commission’s review of the instant Application to the extent that any such
applications become subject to a Commission cut-off notice. No pending relevant applications
are subject to a cut-off rule.


EXHIBIT F
Page 5 of 15

Commission of a change to the real-party-in-interest for applications that may still be pending at

the time of approval of this Application.6


       B.      The Applicants


       The TerreStar Parties. In May 2007, the FCC issued a Letter of Intent (“LOI”) spectrum

reservation to TerreStar Networks Inc. (“TSN”), a majority-owned indirect subsidiary of

TerreStar Corporation,7 to utilize certain specified spectrum to provide MSS in the United States

using the Canadian-licensed geosynchronous orbit (“GSO”) satellite, TerreStar-1. TSN assigned

this authorization to TerreStar License Inc. (“TSL”), a wholly owned direct subsidiary of TSN,

in February 2008. In relation to that LOI, the Commission issued TSN an authorization to

operate up to two million METs. Further, in January 2010, the FCC authorized TSN to provide

ATC services, by means of adding an ATC authorization to TSN’s MET license.


       TSN, TSL and their affiliates have met several significant milestones in the provision of

MSS/ATC services since 2007. On July 1, 2009, the TerreStar-1 satellite was successfully

launched and placed into its assigned orbital slot. This event soon was followed by the first

successful phone call over TerreStar-1 on July 20, 2009, which allowed TerreStar-1 to be

certified as operational. On August 27, 2009, in-orbit testing of TerreStar-1 was successfully

completed.

       6
          An application seeking Commission consent to modify TSN DIP’s ATC authorization is
currently pending before the Commission. See IBFS File No. SES-MOD-20100727-00963. To
the extent required, the parties request a waiver of any rule that would cause the proposed instant
transfer of control to require a major amendment to this pending ATC modification application.
       7
         Motient Ventures Holding Inc., a Delaware corporation, owns 89.3% of the common
stock of TSN. MV Holdings Inc., a Delaware corporation, owns 100% of the common stock of
Motient Ventures Holding Inc., a Delaware corporation. TerreStar Corporation owns 100% of
the common stock of MV Holdings Inc. See Exhibit E.


EXHIBIT F
Page 6 of 15

       In order to obtain the capital necessary to support these development initiatives and the

operation of its MSS/ATC system, TSN issued secured payment-in-kind (“Senior PIK”) notes in

2007 and exchangeable payment-in-kind (“Exchangeable PIK”) notes in 2008. However, the

subsequent global economic crisis created a precarious financial situation, rendering TSN and

TSL unlikely to satisfy these debt obligations in the coming years. As a result, on October 19,

2010, TSN, TSL and certain of their affiliates (collectively, the “TerreStar Companies”) filed

voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code (the

“Bankruptcy Code”) with the Bankruptcy Court. As the TerreStar Companies explained in their

petitions, reorganization is intended to strengthen the TerreStar Companies’ financial position to

help them achieve long-term success in the MSS market.8 On October 20, 2010, the Bankruptcy

Court granted the request of the TerreStar Companies for procedural consolidation and joint

administration of the Chapter 11 petitions. On November 5, 2010, the TerreStar Companies filed

the proposed Plan and an accompanying disclosure statement.9 The Plan will convert

approximately $1.1 billion of TSN’s debt into equity in New TSN, resulting in a change of

control of TSN DIP.


       In conjunction with this bankruptcy proceeding, on November 3, 201010 and November

16, 2010,11 the Commission approved applications for the pro forma assignments of all but one




       8
           See In re TerreStar Networks Inc., Case No. 10-15446 (SHL) (SDNY Oct. 19, 2010).
       9
       The Bankruptcy Court entered an order approving the disclosure statement on
December 22, 2010.
       10
          On November 3, 2010, the Commission approved the pro forma assignments from TSL
to TSL DIP of the Section 214 authorization for international mobile satellite services
(ITC2142010051300194) and the Section 214 authorization for global facilities-based and resale
authority (ITC2142010051300195). See IBFS File No. ITC-ASG-20101022-00423.


EXHIBIT F
Page 7 of 15

of TSN’s and TSL’s licenses to TSN DIP and TSL DIP. 12 In turn, TSN DIP filed an application

with the FCC on December 10, 2010 seeking the pro forma assignment of TSN DIP’s licenses

and authorizations to TSL DIP. The Commission approved these pro forma assignment

applications on December 20, 2010. As a result, TSL DIP holds all of the licenses and

authorizations previously held by TSN and TSL that are related to TSN’s MSS/ATC system.13

The Bankruptcy Court has not yet confirmed the proposed Plan.


       The EchoStar Parties. EchoStar is providing much of the financial support to enable

TSN DIP and TSL DIP to emerge from bankruptcy and execute a successful market strategy

upon their emergence. With its focus on creating hardware and service solutions for cable,

telecommunications, IPTV and satellite television companies worldwide, EchoStar delivers

satellite services using its fleet of ten owned and leased in-orbit satellites and related FCC

licenses. EchoStar also provides mobility to multichannel video subscribers through its Sling



       11
           On November 16, 2010, the Commission approved the pro forma assignments from
TSN to TSN DIP of the FSS Ku-band earth station authorization for two antennas in Las Vegas,
Nevada (call sign E070098) and the MET license that includes the ATC authorization (call sign
E060430). See IBFS File Nos. SES-ASG-20101101-01416 and SES-ASG-20101101-01417. On
November 16, 2010, the Commission also approved the pro forma assignment of the 2 GHz
earth station authorization for 15 calibration earth stations (call sign E090061) from TSL to TSL
DIP. See SES-ASG-20101101-01419.
       12
          On October 22, 2010, TSN mistakenly filed a pro forma assignment application
seeking assignment of TSL’s LOI spectrum reservation for the TerreStar-1 satellite (call sign
S2633) from TSN to TSN DIP, rather than TSL to TSL DIP. See IBFS File No. SAT-ASG-
20101022-00222. TSN previously had provided the Commission’s International Bureau notice of
assignment of the LOI spectrum reservation from TSN to TSL. See Letter to Ms. Marlene H.
Dortch from Mr. Joseph A. Godles, dated February 4, 2008, with reference to File No. SAT-
MOD-20070529-00075. Since filing the October 22, 2010 pro forma assignment application,
TSN DIP has corresponded with the Commission in an effort to update the Commission’s
International Bureau Filing System to accurately reflect TSL DIP as the holder of the LOI
spectrum reservation. This application has not yet been approved by the Commission.
       13
            See IBFS File Nos. SES-ASG-20101210-01529 and SES-ASG-20101210-01530.


EXHIBIT F
Page 8 of 15

Box service, which allows consumers to receive their video service from any location

worldwide.


       EchoStar is controlled by Mr. Charles W. Ergen, Chairman of its Board of Directors.

Directly or indirectly through trusts, Mr. Ergen holds shares representing 56.4% of the equity

interest (assuming conversion of all shares of outstanding Class B Common Stock into Class A

Common Stock) and 92.7% of the voting interest in the company.14 Mr. Ergen is also the

President, Chief Executive Officer, and Chairman of the Board of Directors of DISH Network

Corporation (“DISH Network”). Mr. Ergen founded the two companies as EchoStar

Communications Corporation in 1980. EchoStar was spun off from DISH Network in 2008. As

exemplified by both of EchoStar and DISH Network, Mr. Ergen has been a leading pioneer in

the satellite industry and has successfully leveraged satellite technology to provide consumer

services to millions of Americans.


III.   DESCRIPTION OF THE TRANSACTION


       A.      Structure of the Transaction


       Under the proposed Plan, claims of the Senior PIK noteholders, Exchangeable PIK

noteholders and certain general unsecured claims against the TerreStar Companies (collectively,

“Claims”) will be exchanged for equity in New TSN, discharging the vast majority of debt


       14
           A portion of Mr. Ergen’s interest in EchoStar is held in Grantor Retained Asset Trusts
(“GRATs”). The trustee for the GRATs is Mr. William R. Gouger, a U.S. citizen; manager of
the estate planning and management services firm of SC Management, LLC; and located at 400
Inverness Parkway, Suite 250, Englewood, Colorado 80112. In his capacity as trustee, Mr.
Gouger holds shares representing 22.2% of the equity interest (assuming conversion of all shares
of outstanding Class B Common Stock into Class A Common Stock) and 36.7% of the voting
interest in the company.


EXHIBIT F
Page 9 of 15

currently held by the TerreStar Companies. New TSL will be a wholly owned subsidiary of New

TSN. All pre-bankruptcy rights and interests in TSN, 89% of which are indirectly held by

TerreStar Corporation, will be terminated.


       B.      Equity Distributions


       The proposed Plan calls for equity in New TSN to be distributed in the form of common

stock (“Common Stock”) and preferred stock (“Preferred Stock”). Common Stock will be

distributed to all holders of Claims. Holders of Senior PIK Notes will receive approximately

97% of New TSN’s Common Stock on a pro rata basis to their holdings of Claims. The

remaining approximately three percent of New TSN’s Common Stock will be distributed to the

holders of the Exchangeable PIK notes and general unsecured claims against certain of the

TerreStar Companies. In addition, Senior PIK noteholders and Exchangeable PIK noteholders

will be eligible to participate in a $125 million rights (“Rights”) offering for new Preferred Stock

on a pro rata basis (based on their respective holdings of Claims) and in accordance with the

Plan. The Common Stock and Preferred Stock have identical voting and economic rights, except

that holders of Preferred Stock will receive a liquidation preference in the event of any merger,

consolidation, change in control, liquidation or winding up of Reorganized TSN.


       Pursuant to an Equity Purchase Commitment Agreement between EchoStar and TSN

approved by the Bankruptcy Court on December 22, 2010 (the “EPCA”), EchoStar (and any

other holder of Senior PIK notes that executes a joinder to the EPCA on or prior to February 7,

2011 (each such holder, an “Other Backstop Party”)) has committed to support TSN’s

restructuring efforts by, among other things, “backstopping” all of the $125 million Rights

offering. Specifically, pursuant to the terms and conditions of the EPCA, EchoStar and any


EXHIBIT F
Page 10 of 15

Other Backstop Parties will fully exercise their Rights to purchase Preferred Stock and will

purchase additional unsubscribed shares of Preferred Stock to the extent necessary to ensure that

TSN receives at least $125 million in proceeds from the Rights offering. Furthermore, the

proposed Plan provides EchoStar and any Other Backstop Parties with the right to purchase

additional Preferred Stock on a pro rata basis in an amount up to $25 million (“Overallotment

Right”), which amount may be reduced by EchoStar in its sole discretion. As a result, the Rights

offering and Overallotment Right (collectively, the “Capital Infusion”) will inject between $125

million and $150 million of new capital into New TSN.


       In addition, EchoStar is providing TSN DIP (and the other TerreStar Companies) with

debtor-in-possession financing in the amount of $75 million to fund its operations during the

pendency of the TerreStar Companies’ reorganization. The Capital Infusion will be used, among

other things, to repay the debtor-in-possession financing facility in full and to fund the operations

of New TSN upon consummation of the Plan.


       As a result of these equity distributions and related transactions, EchoStar will be the

largest shareholder of New TSN, and the Applicants expect that it will hold at least 50% of New

TSN’s equity and voting interests. New TSN, in turn, will wholly own and control New TSL.

No other entity is anticipated to hold a direct or indirect interest of 10% or more in New TSN.

Exhibit E provides a comprehensive description of the anticipated post-emergence ownership of

the Applicants.15



       15
          The Claims continue to be traded, and, as a result, it is not possible to determine at this
date the relative participation of the TerreStar Companies’ creditors in the Capital Infusion.
However, the Bankruptcy Court has issued an order restricting certain trades of Claims and
requiring notification to Applicants of trades of Claims to ensure the accuracy of this
Application. Specifically, the Bankruptcy Court has imposed a restriction on any trading of


EXHIBIT F
Page 11 of 15

IV.     PUBLIC INTEREST STATEMENT
        To approve the transfer of control, the Commission must find that the proposed

transaction serves “the public interest, convenience, and necessity.”16 To make this finding, the

Commission has traditionally weighed the public interest benefits of the proposed transaction

against any potential public interest harms to determine whether, on balance, the benefits

outweigh any harms.


        The Commission’s public interest analysis generally has included an examination of the

following fundamental questions: (i) will the transaction result in a violation of the

Communications Act or the Commission’s rules; (ii) will the transaction yield substantial public

interest benefits; and (iii) will the transaction interfere with the objectives of the

Communications Act.17




Claims after the filing of this Application that would result in an entity, upon the effective date of
the Plan, (i) becoming a direct or indirect holder of 10% or more equity or voting interests in
Reorganized TSN or (ii) becoming or ceasing to be, directly or indirectly, either (a) the largest
holder of equity or voting interests in New TSN or (b) the holder of more than 50% of equity or
voting interests in New TSN (collectively, the “Trading Restrictions”). In addition, the
Bankruptcy Court’s order requires that notification be provided to the Applicants regarding any
trade of Claims involving a holder of a sufficient amount of Claims so that such entity would be,
upon the effective date of the Plan, a holder of 10% or more of the equity or voting interests in
New TSN (“Trading Notifications”). Importantly, the Trading Restrictions ensure that no
ownership change can occur between the filing of the Application and the effective date of the
Plan that would constitute a major amendment to the Application. In addition, the Trading
Restrictions ensure that the Applicants are able to identify any changes to (i.e., additions to or
deletions from) the list of the entities that will hold a 10% or greater direct or indirect equity or
voting interest in New TSN. If the Capital Infusion results in any additional entities holding a
10% or greater direct or indirect equity or voting interest in New TSN, the Applicants will
update the Application in accordance with Section 1.65 of the Commission’s rules. See 47
C.F.R. § 1.65.
        16
             47 U.S.C. § 310(d).
        17
             See, e.g., Time Warner Inc. and America Online Inc., 16 FCC Rcd. 6547 ¶ 1 (2001).


EXHIBIT F
Page 12 of 15

       A.       The Transaction Will Comply with the Requirements of the Communications
                Act, All Other Applicable Statutes, and the Commission’s Rules
       The proposed transaction will not implicate, much less run afoul of, any aggregation,

cross-ownership or service-specific limitations imposed by the Communications Act,

Commission regulation or applicable statute. Therefore, no rule waivers are being requested for

Commission approval of the instant Application.18 Further, both EchoStar, a U.S. corporation,

and Mr. Ergen, a U.S. citizen, are currently FCC licensees. Therefore their qualifications are a

well-established matter of long-standing public record.19


       B.       The Transaction Will Yield Significant Public Interest Benefits


       The Commission has repeatedly found that a transaction facilitating the retirement of debt

during periods of global financial instability and improving access to capital is likely to offer

substantial public benefits.20 The Commission has moreover concluded that license transfers

       18
          The Applicants will file a petition for declaratory ruling seeking a Commission
determination that it is not in the public interest to restrict indirect foreign ownership of New
TSL to 25%. See 47 U.S.C. § 310(b)(4). In addition, out of an abundance of caution, the
Applicants have requested a waiver of the Commission’s cut-off rules should such they become
applicable to the Applicants during the pendency of this Application. See Note 5. No cut-off
rule is now applicable to any relevant pending applications.
       19
          On July 29, 2010, the International Bureau dismissed EchoStar’s application to
construct, launch, and operate a C-band satellite at the 84.9º W.L. orbital location on the grounds
that EchoStar had surrendered licenses for five satellites in 33 months. The FCC held that such
actions give rise to a presumption of speculation by EchoStar, which in turn limits the number of
pending applications and unbuilt satellites a licensee may hold. See EchoStar Corporation,
Application to Operate a C-Band Geostationary Satellite Orbit Satellite in the Fixed-Satellite
Service at the 84.9º W.L. Orbital Location, Memorandum Opinion and Order, 25 FCC Rcd.
10193 (2010). EchoStar has filed a petition for reconsideration of that decision. In any event,
the Commission has explicitly noted that the limitation does not apply to the acquisition of
control over existing satellite licenses. Amendment of the Commission’s Space Station
Licensing Rules and Policies, First Report and Order, 18 FCC Rcd. 10760, 10850, ¶ 233 (2003)
(“First-Come, First-Served Order”). Thus, that decision is inapposite to the instant Application.
       20
         See Iridium Holdings LLC, Memorandum Opinion and Order, 24 FCC Rcd. 10725,
10733 (2009).


EXHIBIT F
Page 13 of 15

effectuating bankruptcy-related reorganizations benefit the public interest, facilitate the

introduction of new services, and help maintain existing services to the public.21 The instant

transaction in fact is precisely of this type, and it can be expected to bring about abundant public

benefits.


            The instant restructuring under bankruptcy protection will afford New TSN and New

TSL greater liquidity to meet operational requirements. Increased financial health will, in turn,

ensure the uninterrupted provision of MSS services to the public by New TSN, as well as

facilitate the continued development of new hybrid MSS/ATC technologies and competitive

services. Thus, this new financial and operational structure will allow New TSN to fulfill the

public interest benefits of MSS/ATC deployment, including the provision of increased network

capacity, more efficient use of spectrum and economies of scale.22


       The transaction also will enable New TSN to draw on EchoStar’s long experience, both

in the combination of satellite and terrestrial services and in the coexistence of a satellite and

terrestrial service in the same spectrum band. As for co-frequency spectrum sharing, EchoStar

has had a passive stake in a Multichannel Video Data and Distribution Service (“MVDDS”)

licensee, South.com, a company now wholly owned by EchoStar’s affiliate DISH Network.

MVDDS operators share the 12.2-12.7 GHz band with Direct Broadcast Satellite (“DBS”)



       21
         See International Authorizations Granted, Public Notice, 19 FCC Rcd. 4079 (2004);
Space Station Licensee, Inc. and Iridium Constellation LLC, Memorandum Opinion and Order,
17 FCC Rcd. 2271, 2288-89 (2002); ICO-Teledesic Global Limited, Memorandum Opinion and
Order, 16 FCC Rcd. 6403, 6407 (2001); see also Loral/Qualcomm Partnership, L.P., Order, 10
FCC Rcd. 2333, 2334 (1995).
       22
          See Flexibility for 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, ¶¶ 2, 20, 45, 210-11 (2003).


EXHIBIT F
Page 14 of 15

providers. EchoStar’s expertise will assist New TSN in their operations and in avoiding

disruption and interference between its systems and other users of the radio spectrum.


       C.       The Transaction Will Strengthen Competition and Not Frustrate Any
                Objectives of the Communications Act or the Commission’s Rules
       In addition to serving the public interest, the proposed transaction will not result in

competitive harms or otherwise frustrate any Commission policy objective but instead will

promote competition. EchoStar, which is expected to be the single largest shareholder of New

TSN, is controlled by Mr. Charles W. Ergen, who also controls EchoStar’s affiliate DISH

Network. Such ownership does not raise any competitive concerns, however. Although DISH

Network holds an interest in DBSD North America, Inc. (“DBSD”), a company which also holds

a 2 GHz MSS authorization, neither DISH nor EchoStar controls DBSD. Moreover, DISH

Network’s minority stake in DBSD is far below the relevant attributable interest threshold under

the Commission’s First-Come, First Served Order.23 In a related vein, the transaction will not

produce any anticompetitive effects for the simple reason that neither EchoStar nor DISH

Network is a participant in the MSS market today.


       Therefore, after its financial restructuring, New TSN will be a stronger competitor and

better equipped to offer competitive advanced services over its MSS/ATC system. Accordingly,

the proposed transaction will serve the public interest consistent with Section 310(d) of the




       23
          See First-Come, First-Served Order at ¶ 238 (an interest is attributable if the total asset
value, defined as the aggregate of all equity plus all debt, exceeds 33%). In particular, DISH
Network holds certain debt of DBSD. DBSD is currently in bankruptcy. If DBSD is allowed to
complete its bankruptcy reorganization as currently proposed (which it is currently stayed by
court order from doing), then DISH Network would receive an approximately 15% equity stake
in the reorganized DBSD on account of its debt and certain exit financing.


EXHIBIT F
Page 15 of 15

Communications Act and will promote the Act’s objectives instead of endangering these

objectives in any way.


V.     CONCLUSION


       The Applicants have demonstrated that a grant of the instant Application will advance the

public interest by enabling TSN DIP and TSL DIP to emerge from bankruptcy in a manner that

will allow them to provide new and innovative services to consumers and enhance competition in

the market for advanced communications services. Upon the consummation of the Plan, and

upon Commission approval of this Application, New TSN, with the assistance of EchoStar, will

be better positioned to finance and complete development of its MSS/ATC system.


       Prompt grant of this Application is crucial to the completion of the Plan. TSN DIP and

TSL DIP cannot emerge from bankruptcy until the Commission acts on the instant Application

and other applications being filed with the Commission in relation to the proposed Plan. Any

delay in this process would be detrimental to the Applicants. Accordingly, the Applicants

request that the Commission promptly grant this Application to ensure the successful

reorganization of TSN DIP and TSL DIP.



Document Created: 2010-12-23 18:17:16
Document Modified: 2010-12-23 18:17:16

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