Intelsat AC Bid Co O

OPPOSITION submitted by Intelsat License LLC

Intelsat Opposition to AC BidCo LLC Applications

2017-02-16

This document pretains to SES-AFS-20170208-00139 for Amendment Foreign Satellite App on a Satellite Earth Station filing.

IBFS_SESAFS2017020800139_1188613

                                            Before the
                                Federal Communications Commission
                                       Washington, DC 20554



      In the Matter of

      AC BidCo LLC

      Application for Special Temporary              File No. SES—STA—20170208—00140
      Authority

      Amendment to Application for                   File No. SES—AFS—20170208—00139
      Modification of Blanket License for
      Operation of Ku—Band Transmit/Receive
      Earth Stations Aboard Aircraft




                         OPPOSITION OF INTELSAT LICENSE LLC

       Intelsat License LLC ("Intelsat") hereby opposes the above—captioned requests submitted

by AC BidCo LLC ("AC BidCo") to the Federal Communications Commission ("FCC" or

"Commission") for 60 days of Special Temporary Authority ("STA") to communicate with the

ARSAT—2 satellite with up to 200 earth stations aboard aircraft terminals (“ESAAS”),] and to

amend its Application for Modification of Blanket License for Operation of Ku—Band

Transmit/Receive Earth Stations Aboard Aircraft ("Amendment") to add the ARSAT—2 satellite

as an authorized point of communications." For the reasons set forth below, Intelsat asks the

Commission to deny AC BidCo‘s STA and Amendment requests seeking to communicate with




‘   See AC BidCo LLC, Request for Special Temporary Authority, File No. SES—STA—20170208—00140
(filed Feb. 8, 2017) (CSTA").

‘   See AC BidCo LLC, Amendment to Application for Modification ofBlanket License for Operation of
Ku—Band Transmit/Receive Earth Stations Aboard Aircraft, File No. SES—AFS—20170208—00139 (filed
Feb.8, 2017) ("Amendment").


the ARSAT—2 satellite, which was recently added to the Permitted List,3 until such time as the

Argentine government upholds its obligation of reciprocal and prompt treatment of U.S.—licensed

satellites seeking authorization to access the Argentine market.

        I.          BACKGROUND

        In March 2016, Empresa Argentina de Soluciones Satelitales S.A. ("ARSAT"), a

company that is wholly—owned by Argentine state—owned companies, petitioned the FCC for

access to the U.S. market by requesting that the ARSAT—2 satellite, which is licensed by

Argentina, be added to the Commission‘s Permitted Space Station List ("Petition").* On June

27, 2016, the Satellite Industry Association ("SIA") filed a letter in response to ARSAT‘s

Petition outlining the industry‘s concerns with Argentina‘s dilatory treatment of U.S.—licensed

satellites seeking authorization to the Argentine market."

        As noted in SIA‘s letter, the Commission adopted a rebuttable presumption "in favor of

entry in considering applications to access non—U.S. satellites licensed [World Trade

Organization ("WTO")] members to provide services covered by the U.S. commitments under
                                          »6
the WTO Basic Telecom Agreement.""             A major premise of this presumption, SIA explained, is

that "WTO members will live up to their agreements relative to their treatment of U.S.—licensed

              >
satellites®       in this case, the U.S.—Argentina Bilateral Agreement, which requires both countries


*   See Policy Branch Information; Actions Taken, Report No. SAT—01175, File No. SAT—PPL—
20160304—00024 (July 22, 2016) (Public Notice).

*    See Petition of Empresa Argentina de Soluciones Satelitales S.A. for Declaratory Ruling to Add
ARSAT—2 to the Permitted Space Station List, File No. SAT—PPL—20160304—00024 (stamp grant Jul. 21,
2016).

5   Letter from Tom Stroup, President ofthe Satellite Industry Association, to Ms. Marlene H. Dortch,
FCC, File No. SAT—PPL—20160304—00024 (June 27, 2016) ("Stroup Letter").

8    Amendment of the Commission‘s Regulatory Policies to Allow Non—U.S.—Licensed Space Stations to
Provide Domestic and International Satellite Service in the United States, Report and Order, IB Docket
No. 96—111, 12 FCC Red 24094, [ 39 (1997).


to permit open access to its market by satellites licensed by the other.‘ SIA called on Argentina

to take prompt action on outstanding market access applications, many of which had been

pending for years.8

              ARSAT responded to SIA‘s concerns on July, 7, 2016, providing a formal statement from

Argentina‘s Ministry of Communications (the "Ministry") on the issue." In its statement, the

Ministry addressed SIA‘s concerns and "promise[d] to give effective treatment to the actions

urged by operators belonging [to] WTO member countries."""              Indeed, the Ministry committed

"to take prompt action ... to ensure ... symmetrical treatment to foreign operators, both in its

policies and in practice.""‘

              The FCC, in good faith, took the Ministry at its word and granted the Petition on July 21,

2016." Unfortunately, however, symmetrical treatment of foreign operators by the Argentine

government has yet to materialize. Several Intelsat applications to access the Argentine market

continue to languish, waiting for Argentina‘s promised reciprocal and prompt treatment.

Specifically, Intelsat‘s Argentine market access requests for the Intelsat 29e and Intelsat 34

satellites have both been pending with the Argentine regulator since the first half of 2015 with no

known impediment to their grant.            Argentina‘s reluctance to grant these applications—some




          Stroup Letter at 2.

80—       Id. at 2—3.

°_        See Letter from Fernando M. Montes, Representative for Empresa Argentina de Soluciones
Satelitales S.A., to Ms. Marlene H. Dortch, FCC, File No. SAT—PPL—20160304—00024 (July 7, 2016).

 _        Letter from Dr. Oscar Aguad, Ministerio de Comunicaciones, Argentina, to Ms. Marlene H. Dortch,
FCC, File No. SAT—PPL—20160304—00024 (July 4, 2016).

 "        1
      ,
 "        See supra n.3.


                                                    >
seven months after committing to take "prompt action"—is arguably a sustained violation of

Argentina‘s commitments to the United States.

       IL.     U.S. EARTH STATION ACCESS TO ARSAT—2 SHOULD BE DENIED
               PENDING TRUE RECIPROCITY

       Given that the Commission has already granted market access for the ARSAT—2 satellite,

the only remaining recourse available to Intelsat for the continued functional denial of market

access in Argentina is to object to the use of U.S.—licensed earth stations to serve the United

States with ARSAT—2, such as has been requested by AC BidCo."             Intelsat had hoped that

Argentina‘s representations last July, in response to the concerns raised by SIA, would have

resolved the market access reciprocity problem facing U.S.—licensed satellite operators seeking to

serve the Argentine market. Unfortunately, that has not been the case.

       Accordingly, for the reasons set forth herein, the FCC should deny AC BidCo‘s STA and

Amendment seeking authority to communicate with the ARSAT—2 satellite until such time as

Argentina satisfies its obligation to accord reciprocal and prompt treatment to U.S.—licensed

satellites seeking to serve the Argentine market. Once those obligations have been met, Intelsat

would have no further objection to grant of AC BidCo‘s pending applications.




5   AC BidCo plans to provide service in North America using ARSAT—2 on both a temporary and
permanent basis. STA at 2; Amendment at Annex 2.

                                                4


                       Respectfully submitted,




                       Susan H. Crandall,
                       Associate General Counsel

                       Cynthia J. Grady
                       Counsel

                       INTELSAT CORPORATION

Jennifer D. Hindin
WILEY REIN LLP
1776 K Street, N.W.
Washington, DC 20006

February 16, 2017


                                CERTIFICATE OF SERVICE

I, Derrick Johnson, do hereby certify that on this 16th day of February 2017, a copy ofthe
foregoing Opposition of Intelsat License LLC is being sent via first class, U.S. Mail, postage
paid, to the following:


Marguerite Elias                                  Karis A. Hastings
Executive Vice President & General Counsel        Satcom Law LLC
AC BidCo LLC                                      1317 F Street, NW
111 North Canal Street                            Suite 400
Chicago, IL 60606                                 Washington, DC 20004




                                              Tizul, C                s      /_\


                                             Derrick Johnson
                                             Senior Paralegal
                                             Intelsat Corporation



Document Created: 2019-04-14 08:58:35
Document Modified: 2019-04-14 08:58:35

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