Attachment Sprint Reply

Sprint Reply

REPLY submitted by Sprint Nextel

Reply of Sprint Nextel corporation

2008-05-20

This document pretains to SES-AMD-20070723-00978 for Amended Filing on a Satellite Earth Station filing.

IBFS_SESAMD2007072300978_643808

                                                                              FlLEDlACCEPTED
                                         Before the                                 I’IN   2 0 2008



In the Matter of                              )
                                              1
Application of TerreStar Networks Inc.        )       File Nos. SES-LIC-20061206-02 100,
for Blanket Authority for Ancillary           1       SES-AMD-20070723-00978,
Terrestrial Component Base                    )       SES-AMD-20070907-01253, and
Stations and Mobile Terminals for             1       SES-AMD-20080229-002 17
2 GHz Mobile Satellite Service                1
                   REPLY OF SPRINT NEXTEL CORPORATION

       In its opposition, TerreStar Networks Inc. (TerreStar) does not dispute that the

Commission’s gating criteria “requir[e], among other things, that 2 GHz MSS ATC

applicants demonstrate their systems will be capable of providing service to all 50 states,

Puerto Rico, and the U.S. Virgin Islands.”’ Nor does TerreStar dispute that it has done

nothing to clear the Broadcast Auxiliary Service (BAS) licensees from the spectrum it

will be using to provide this nationwide MSS service. TerreStar nonetheless maintains it

can satisfy its gating criteria by providing MSS service before BAS systems are

relocated, claiming that it can do so without causing interference to broadcaster

newsgathering operations.

       The Commission should reject TerreStar’s argument. The Commission has

previously found that MSS and BAS cannot share the 2 GHz band, and, as the broadcast

industry has pointed out, TerreStar has not demonstrated otherwise. Even if TerreStar

could provide MSS on a secondary basis, the resulting MSS coverage would not provide

the nationwide MSS service that is a prerequisite to obtaining ATC authority.


1
  Consolidated Response and Opposition of TerreStar Networks Inc., IBFS File Nos.
SES-AMD-20070907-01253 & SES-AMD-20070723-00978, at 8 (May 8,2008)
(Opposition).


         Since 2001 when TerreStar received its license and undertook an obligation to

relocate BAS from the 2 GHz band, TerreStar has not inventoried a single station,

negotiated a single relocation agreement, ordered a single piece of BAS replacement

equipment, or relocated a single BAS system. It also refuses to reimburse Sprint Nextel

for TerreStar’s fair share of BAS relocation costs. Having wholly failed to fulfill its

obligation to clear its MSS spectrum of the BAS incumbents or pay its fair share of BAS

relocation costs, TerreStar cannot deploy MSS nationwide and, therefore, is ineligible to

receive ATC authority.

I.       TerreStar Has Not Demonstrated That It Can Provide MSS Coverage
         Without Causing Interference to BAS Licensees

         To receive ATC authority under section 25.149 of the Commission’s rules,

TerreStar must provide nationwide MSS coverage and make commercial service

available throughout the United States2 “For the 2 GHz MSS band,” the rule provides,

“an applicant must demonstrate that it can provide space-segment service covering all 50

states, Puerto Rico, and the US. Virgin Islands one-hundredpercent ofthe time, unless it

is not technically possible, consistent with the coverage requirements for 2 GHz MSS

GSO     operator^."^ Failure to make MSS seamlessly available to end users across the U.S.
renders an MSS licensee ineligible for ATC a~thority.~


     47 C.F.R.   6 25.149(b)(l), (3).
     47 C.F.R. 6 25.149(b)(l)(i) (emphasis added).
4
     See, e.g., 47 C.F.R. 8 25.149(b)(3). Under the Commission’s rules, 2 GHz MSS
licensees currently may not commence satellite service until they have relocated all BAS
licensees in the top 30 markets and all fixed BAS links in all markets. 47 C.F.R.
0 74.690(e)( l)(i). The Commission has sought comment on whether to eliminate this
rule by January 1,2009. Improving Public Safety Communications in the 800 MHz
Band; Consolidating the 800 and 900 MHz IndustrialULand Transportation and Business
Pool Channels, Memorandum Opinion and Order and Further Notice of Proposed
Rulemaking, 23 FCC Rcd. 4393, M[ 52-56 (2008) (FCC 08-73) (BAS Extension Order).

                                            -2-


          In its Opposition, TerreStar claims that it can meet its geographic coverage and

commercial availability requirements even though it has not satisfied its obligation to

clear BAS incumbents from the band.5 TerreStar points to technical studies purporting to

show that its MSS system can share spectrum in uncleared markets with BAS facilities

and avoid interference to those BAS operations.6 The Commission, however, has

previously found that it will not be feasible for MSS and BAS to co-exist in the 2 GHz

band, since “BAS and MSS cannot share the spectrum without unacceptable mutual

              It was on this basis that the Commission found it necessary to relocate
interferen~e.”~

BAS systems above 2025 M H z . ~

          Although the Commission has recently sought comment on permitting 2 GHz

MSS licensees to operate temporarily on a secondary basis before all BAS licensees are



Sprint Nextel in its filing urged the Commission to maintain this entry restriction and
prohibit the 2 GHz MSS licensees from operating nationally until they fulfill their
respective obligations to clear the BAS band of affected incumbents or, alternatively,
reimburse Sprint Nextel for their pro rata shares of eligible BAS relocation expenses.
Comments of Sprint Nextel Corporation, WT Docket No. 02-55, at 6-12 (Apr. 30,2008).
5
   TerreStar Opposition at 8-9. The Commission has repeatedly held that the two 2 GHz
MSS licensees have an obligation to relocate BAS licensees independent of Sprint
Nextel’s 800 MHz commitment to relocate BAS. In an order earlier this year, the
Commission stated that “both Sprint Nextel and 2 GHz MSS licensees have equal
obligations to relocate the 1.9 GHz BAS incumbents.” Improving Public Safety
Communications in the 800 MHz Band; Consolidating the 800 and 900 MHz
IndustriaKLand Transportation and Business Pool Channels, Order, 23 FCC Rcd. 2423,
12 (2008).
6
  TerreStar Opposition at 9 (citing du Treil, Lundin & Rackley, Predicted Impact to 2
GHz Broadcast Auxiliary Operations From Proposed Handset to Satellite Emissions,
TerreStar Networks (Jan. 30,2008) (du Treil Report), attached to Letter from Joseph A.
Godles, counsel to TerreStar, to Marlene H. Dortch, FCC (Jan. 30,2008)).
   Amendment of Section 2. I06 of the Commission ’s Rules to Allocate Spectrum at 2
GHzfor Use by the Mobile-Satellite Service, First Report and Order and Further Notice
of Proposed Rule Making, 12 FCC Rcd. 7388,130 (1997).
    Id.


                                             -3-


relocated,’ the broadcast industry has opposed this measure due to the serious

interference risk it would cause. As the Association for Maximum Service Television,

Inc. (MSTV) and the National Association of Broadcasters (NAB) have stated,

TerreStar’s assertions fail to demonstrate that sharing between MSS and BAS is

technically feasible. In their recent comments opposing the elimination of the Top 30

market rule, MSTV and NAB stated the following:

         MSS will not be able to share spectrum with BAS in markets that are not
         relocated. Operations within the same frequency band and within the
         same geographic area are not technically feasible because of the
         interference that will occur. . . . Contrary to exparte submissions filed by
         MSS operators claiming that BAS could facilitate sharing by operating
         with reduced bandwidth using digital equipment, there has been no testing
         or analysis to suggest that MSS operation in the ‘narrow swaths of
         spectrum between BAS’ would not result in interference to BAS
         receivers. I o

Indeed, TerreStar’s own study demonstrates that its MSS system can cause harmful

interference to BAS facilities that rely on analog equipment that has not yet been

retuned.” Specifically, BAS operations that have not been replaced or relocated will be



     BAS Extension Order f 52.
I o Comments of the Association for Maximum Service Television, Inc. and the National
Association of Broadcasters, WT Docket No. 02-55, at 7-8 (Apr. 30,2008) (citation
omitted).
I’
    The du Treil Report, filed by TerreStar on January 30,2008, predicts the impact to 2
GHz BAS operations from TerreStar’s proposed handset. The du Treil Report was based
both on bench and field testing. That report posits that it is unlikely that interference
would be caused from the MSS handsets to digital BAS operations or to analog BAS
operations using a narrow IF filter. See du Treil Report at 18. However, the report also
predicts that, for analog BAS operations using a normal IF filter, a TerreStar handset “in
the main beam of the BAS receive antenna and with a relatively unobstructed view to the
BAS receive antenna” would exceed the minimum desired-to-undesired signal ratios and
thus could cause interference “in some cases with the BAS link at or near margin.” Id.
The du Treil Report also goes on to state that such interference to analog BAS operations
using a normal IF may result “in some situations no matter on which fi-equency it
operates.” Id.


                                             -4-


using analog BAS equipment, most likely with a normal IF since legacy analog

equipment is not capable of operating with a narrow IF without significant equipment

modification, which would depend on legacy manufacturers being still in business and

willing to attempt such modifications. Thus, unless the BAS equipment has been

replaced or moved out of BAS channels 1 and 2, interference from MSS handsets to BAS

receivers is quite possible.

          Given the likelihood of interference to BAS, TerreStar cannot certify that it will

comply with the Commission’s ATC gating requirements. Unless TerreStar can make

this certification, the Commission should deny its ATC application. TerreStar can

provide MSS only after BAS systems are hlly relocated, and after TerreStar has satisfied

its BAS relocation and reimbursement obligations. Until it satisfies these obligations, it

is not eligible for ATC authority.

11.       Conclusion

          The Commission should deny TerreStar’s ATC application because TerreStar

cannot and will not provide nationwide commercial MSS unless it relocates the nation’s

BAS licensees. TerreStar’s license is conditioned on its compliance with its BAS

reimbursement obligation, l 2 and the Commission’s rules and well-established cost-

sharing principles similarly require TerreStar to relocate BAS or pay its pro rata share of

eligible BAS relocation costs.’3 TerreStar may not provide commercial MSS in any




12
   See Petition to Deny of Sprint Nextel Corporation, IBFS File Nos. SES-LIC-
2006 1206-02100, SES-AMD-20070723-00978, SES-AMD-20070907-01253, and SES-
AMD-20080229-00217, at 4 (Apr. 25,2008) (Sprint Nextel Petition to Deny).
l3   Id. at 2-4.


                                              -5-


geographic portion of the United States - and therefore cannot satisfy its ATC gating

requirements - until it satisfies these reimbursement obligations. l 4

                                       Respectfully submitted,




                                       Trey Hanbury
                                        Director, Government Affairs
                                       2001 Edmund Halley Drive
                                       Reston, VA 20191
                                       (703) 433-4141

Regina M. Keeney
Charles W. Logan
Stephen J. Berman
Lawler, Metzger, Milkman & Keeney, LLC
2001 K Street NW, Suite 802
Washington, DC 20006
(202) 777-7700
Counsel to Sprint Nextel Corporation

May 20,2008




14
   TerreStar makes a passing attempt to dispute its reimbursement obligations,
Opposition at 8 n.24, but its conclusory, two-sentence footnote in this regard fails to rebut
the detailed justification set forth in Sprint Nextel’s petition to deny. Sprint Nextel
Petition to Deny at 6- 10.


                                             -6-


                                  Certificate of Service

         I, Ruth E. Holder, hereby certify that on this 20th day of May, 2008, I caused true
and correct copies of the foregoing Reply of Sprint Nextel Corporation to be mailed by
first class U.S. mail, postage prepaid, to:

Cheryl A. Tritt                                Dennis Schmitt
Morrison & Foerster                            New I C 0 Satellite Services G.P.
2000 Pennsylvania Ave. NW, Suite 500           2300 Carillon Point
Washington, DC 20006                           Kirkland, WA 98033

Suzanne Hutchings Malloy                       Douglas I. Brandon
Peter Corea                                    Vice President for Regulatory Affairs
New IC0 Satellite Services G.P.                TerreStar Networks Inc.
8 15 Connecticut Avenue NW, Suite 6 10         12010 Sunset Hills Road, 9th Floor
Washington, DC 20006                           Reston, VA 20191

Joseph A. Godles                               John P. Janka
Goldberg, Godles, Wiener & Wright              Jeffrey A. Marks
1229 19th Street NW                            Latham & Watkins LLP
Washington, DC 20036                           555 Eleventh St. NW, Suite 1000
                                               Washington, DC 20004

Diane J. Cornel1                               Jonathan D. Blake
Vice President, Government Affairs             Brandon D. Almond
Inmarsat, Inc.                                 Covington & Burling LLP
1101 Connecticut Ave. NW, Suite 1200           1201 Pennsylvania Ave., NW
Washington, DC 20036                           Washington, DC 20004-2401

David L. Donovan                               Marsha J. McBride
Bruce Franca                                   Lawrence A. Walke
Association for Maximum Service                National Association of Broadcasters
Television, Inc.                               1771 N Street, NW
4100 Wisconsin Ave., NW                        Washington, DC 20036
Washington, DC 20016



Document Created: 2008-05-27 12:45:43
Document Modified: 2008-05-27 12:45:43

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