Application for Revi

OTHER submitted by Sprint Nextel Corporation

Application for Review of Sprint Nextel Corp

2009-02-17

This document pretains to SES-AMD-20080219-00172 for Amended Filing on a Satellite Earth Station filing.

IBFS_SESAMD2008021900172_696175

                                           Before the
                       FEDERAL COMMUNICATIONS COMMISSION
                                Washington, DC 20554


In the Matter of




                                                  No Nunt! Nee Nume! Nust! Nes Nus! Nus!
New ICO Satellite Services G.P.                                                            File Nos. SES—LIC—20071203—01646,
                                                                                           SES—AMD—20080118—00075, and
Application for blanket authority to operate                                               SES—AMD—20080219—00172
Ancillary Terrestrial Component base stations
and dual—mode MSS—ATC mobile terminals                                                     Call Sign EO70272
in the 2 GHz MSS bands




         APPLICATION FOR REVIEW OF SPRINT NEXTEL CORPORATION



                                               Lawrence R. Krevor
                                                Vice President, Government Affairs — Spectrum

                                               Trey Hanbury
                                                Director, Government Affairs

                                               SPRINT NEXTEL CORPORATION
                                               2001 Edmund Halley Drive
                                               Reston, VA 20191



February 17, 2009


                                             Summary

       The Commission should invalidate an order issued by the International Bureau (Bureau)

in the final days of the prior administration that granted conditional authority to New ICO

Satellite Services G.P. (ICO) to offer Ancillary Terrestrial Component (ATC) service. The

Bureau‘s decision directly conflicts with Commission rules and precedent that unambiguously

require ATC applicants to actually satisfy MSS coverage and commercial service gating criteria

before they can be granted ATC authority. This decision must be reversed.

       No one disputes that ICO‘s ATC application failed to meet the Commission‘s ATC

gating criteria. While the Bureau acknowledged ICO‘s failure, it nonetheless granted ICO‘s

ATC application conditioned on the outcome of various other proceedings, including one

addressing the status of 2 GHz MSS during Broadcast Auxiliary Service (BAS) relocation. The

Commission, however, has specifically rejected conditional grants of ATC authority and

repeatedly held that it would only grant ATC applications after the ATC applicant satisfied that it

met each of the gating criteria by the time of grant.

       A Bureau cannot issue a decision that contradicts the licensing rules and policies adopted

by the full Commission. Nor does a Bureau have the authority to act on any applications or

requests which present novel questions of fact, law, or policy that cannot be resolved under

outstanding precedents and guidelines. And while a Bureau may waive Commission rules for

good cause shown, it may not do so if the waiver would undermine the rule‘s policy objective.

In this case, the Bureau granted precisely the kind of speculative, premature application that the

Commission has repeatedly and expressly prohibited.

       On review, the Commission should reverse the Bureau‘s unlawful action in granting ICO

ATC authority, confirm the MSS licensees‘ obligation to pay their fair share of BAS relocation

costs, and prohibit ICO from commencing ATC service until it satisfies that obligation.


                                     Table of Contents


1.     THE INTERNATIONAL BUREAU LACKED AUTHORITY TO
       GRANT ICO ATC AUTHORITY ON A CONDITIONAL BASIS..............................2

       A.    ICO Failed to Meet the Commission—Mandated ATC Gating
             Criteria, but the Bureau Granted ICO ATC Authority
             Notwithstanding Contrary Commission Rules and Orders...............................2

       B.    The Bureau‘s January 15, 2009 Grant of ICO‘s MSS ATC
             Application Exceeded the Bureau‘s Delegated Authority and
             Must Be Reversed.                                                                 4

II.    ICO MAY NOT COMMENCE ATC SERVICE UNTIL IT COMPLIES
       WITH ITS BAS RELOCATION AND REIMBURSEMENT OBLIGATIONS .........8

III.   CONCLUSION                                                                             11


                                            Before the
                       FEDERAL COMMUNICATIONS COMMISSION
                                    Washington, DC 20554

In the Matter of

New ICO Satellite Services G.P.                      File Nos. SES—LIC—20071203—01646,
                                                     SES—AMD—20080118—00075, and
Application for blanket authority to operate         SES—AMD—20080219—00172
Ancillary Terrestrial Component base stations
and dual—mode MSS—ATC mobile terminals               Call Sign E070272
in the 2 GHz MSS bands


         APPLICATION FOR REVIEW OF SPRINT NEXTEL CORPORATION


       Under section 1.115(b)(2)(i) of the rules of the Federal Communications Commission

(Commission),‘ the Commission should invalidate an order issued by the International Bureau

(Bureau) in the final days of the prior administration that granted conditional authority to New

ICO Satellite Services G.P. (ICO) to offer Ancillary Terrestrial Component (ATC) service." The

Bureau‘s January 15, 2009 decision exceeded the scope of its delegated authority. Specifically,

the Bureau‘s decision directly conflicts with Commission rules and precedent that

unambiguously require ATC applicants to actually satisfy MSS coverage and commercial service

gating criteria before they can be granted ATC authority. The Bureau cannot lawfully waive

Commission—level requirements, and, in any case, had no basis in policy or fact to do so.




! 47 CFR. § 1.115(b)(2)G).
* New ICO Satellite Services G.P., File Nos. SES—LIC—20071203—01646, et al., Order and
Authorization, 24 FCC Red. 171 (IB 2009) (DA 09—38) (Order). Sprint Nextel filed a petition to
deny ICO‘s ATC application. Petition to Deny of Sprint Nextel, File Nos. SES—LIC—20071203—
01646, et al. (April 4, 2008) (Sprint Nextel Petition).


T.     THE INTERNATIONAL BUREAU LACKED AUTHORITY TO GRANT ICO
       ATC AUTHORITY ON A CONDITIONAL BASIS

       The Commission has held that it "will not grant ATC authority until the applicant has

demonstrated that it has actually satisfied each of the gating criteria.‘" ICO failed to

demonstrate that it met the gating criteria, but the Bureau granted ICO‘s application anyway.

This decision must be reversed.

       A. ICO Failed to Meet the Commission—Mandated ATC Gating Criteria, but the
          Bureau Granted ICO ATC Authority Notwithstanding Contrary Commission
          Rules and Orders.

       No one disputes that ICO‘s ATC application failed to meet the Commission‘s ATC

gating criteria. Among other flaws, ICO failed to show that its satellite service is, or soon will

be, commercially available throughout the United States, Puerto Rico, and the U.S. Virgin

Islands.* ICO did not and cannot make this showing because it has not satisfied its Broadcast

Auxiliary Service (BAS) relocation obligations. Under these obligations, which are set forth in

the Commission‘s rules and are conditions to ICO‘s MSS license, ICO must either relocate 2

GHz BAS licensees itself before commencing commercial service or reimburse Sprint Nextel for

ICO‘s pro rata share of the costs of relocating BAS licensees." ICO has made no effort to



3 Flexibilityfor Delivery of Communications by Mobile Satellite Service Providers in the 2 GHz
Band, the L—Band, and the 1.6/2.4 GHz Bands, Order on Reconsideration, 18 FCC Red. 13590,
4 12 (2003) (2003 Reconsideration Order) (emphasis added); see also 47 C.F.R. § 25.149(e).
* 47 CFR. §§ 25.149(b)(1), (b)(3). Section 25.149(b)(1)(i) specifically requires a 2 GHz MSS
ATC applicant to "demonstrate that it can provide space—segment service covering all 50 states,
Puerto Rico, and the U.S. Virgin Islands one—hundred percent of the time, unless it is not
technically possible, consistent with the coverage requirements for 2 GHz MSS GSO operators."
° See Order «| 24 (describing MSS reimbursement obligations as well as "the obligation of the
MSS entrants to relocate the BAS licensees" and "the rules that bar 2 GHz MSS systems from
commencing operation prior to nationwide relocation of fixed BAS stations and relocation of all
BAS and CARS stations in the top thirty Nielsen markets"); Sprint Nextel Petition at 2—5; Letter
from Lawrence Krevor, Sprint Nextel, to Marlene Dortch, FCC Secretary, WT Docket No. 02—
55, at 3—6 (Oct. 8, 2008) (Sprint Nextel October 2008 Letter).


                                                — 2.


relocate BAS licensees, has refused to participate in the BAS relocation process in any way, and

has failed to accept its well—established reimbursement obligations to Sprint Nextel.°

       The Bureau acknowledged ICO‘s failure to satisfy the MSS commercial—availability

gating requirement and declined to waive this requirement.‘ Nonetheless, the Bureau granted

ICO‘s ATC application conditioned on the outcome of various other proceedings, including one

in which the Commission is considering proposals to allow MSS licensees to commence

commercial MSS operations prior to the completion of the BAS relocation, as well as a request

filed by Sprint Nextel that seeks to quiet the MSS licensees‘ objections to their independent

obligation to relocate BAS operations from their spectrum or reimburse the party that performs

and finances this work.*



© The two 2 GHz MSS licensees must reimburse Sprint Nextel for the costs associated with
relocating (i) all fixed BAS licensees nationwide and (ii) all fixed and mobile BAS licensees in
the nation‘s top—thirty broadcast television markets. See Improving Public Safety
Communications in the 800 MHz Band; Consolidating the 800 and 900 MHz Industrial/Land
Transportation and Business Pool Channels, Report and Order, Fifth Report and Order, Fourth
Memorandum Opinion and Order, and Order, 19 FCC Red. 14969, [ 261 (2004) (800 MHz
Order), as amended by Erratum, WT Docket No. 02—55 (rel. Sep. 10, 2004); Second Erratum, 19
FCC Red. 19651 (2004). ICO holds an authorization for twenty megahertz of 2 GHz MSS
spectrum, ten megahertz of which lies in the 1990—2025 MHz band that Sprint Nextel is clearing
of BAS licensees. Under the terms of the 800 MHz Order, ICO is liable for two—sevenths or
28.57 % (10 MHz / 35MHz) of all BAS expenses eligible for reimbursement. See, e.g.,
Improving Public Safety Communications in the 800 MHz Band; Consolidating the 800 and 900
MHz Industrial/Land Transportation and Business Pool Channels, Memorandum Opinion and
Order, 20 FCC Red. 16015, 111 (2005) (800 MHz MO&O); see also, e.g., id. at 112 ("[WJe
have not been shown how this equitable apportionment process intrudes on the rights of any
affected licensee. We therefore deny that part of the TMI/TerreStar petition for reconsideration
that seeks reversal of the reimbursement procedures established in the 800 MHz R&0").
‘ Order, DA 09—38, § 32—33. The Bureau correctly rejected ICO‘s argument that the
commercial—availability gating criterion can be satisfied by merely commencing commercial
service somewhere in the United States. Id. [ 32.
8 See Improving Public Safety Communications in the 800 MHz Band, Memorandum Opinion
and Order and Further Notice of Proposed Rulemaking, 23 FCC Red. 4393, [« 49—56 (2008)
(BAS MO&O and FNPRM) (seeking comment on amending "top 30 market" rule, a market—by—
market approach for MSS entry, and MSS — BAS interference issues); Sprint Nextel October
2008 Letter (requesting confirmation of MSS licensee reimbursement obligations); Sprint Nextel


                                               —3 L


        B.     The Bureau‘s January 15, 2009 Grant of ICO‘s MSS ATC Application
               Exceeded the Bureau‘s Delegated Authority and Must Be Reversed.

        The Bureau lacked authority to grant ICO ATC authority because ICO failed to meet the

Commission‘s commercial—availability gating precondition to ATC authorization. In requiring

MSS operators to actually offer nationwide MSS, the Commission made clear that ATC is not a

"stand—alone system" and is meant only "to enhance MSS coverage, enabling MSS operators to

extend service [using terrestrial transmission equipment] into areas that they were previously

unable to serve[by satellite]."" The Commission further stated that, if it could not rely on the

"integrity" afforded by the mandatory MSS coverage requirement, the Commission should

assign the terrestrial MSS spectrum through auctions or some other method."" The Commission,

therefore, established its commercial—availability gating requirement to "help ensure that ATC

remains an integrated operation that augments rather than replaces satellite—based MSS

services.""

       The Commission has repeatedly stressed that the gating criteria are essential

P reconditions to receiving8 ATC authorization." As recently as October 2008, Commissioner


Letter from Lawrence Krevor, Sprint Nextel, to Marlene Dortch, FCC Secretary, WT Docket No.
02—55, at 8 (June 25, 2008) (seeking adjustments to true—up schedule and confirmation of MSS
licensee reimbursement obligations).
° Flexibilityfor Delivery of Communications by Mobile Satellite Service Providers in the 2 GHz
Band, the L—Band, and the 1.6/2.4 GHz Bands, Memorandum Opinion and Order and Second
Order on Reconsideration, 20 FCC Red. 4616,        33 (2005).
_ Flexibilityfor 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 Red. 1962, « 66 (2003) (MSS ATC Order) ("Without the integrity afforded
by these MSS ATC service—rule requirements, an alternative licensing or distribution mechanism
should be used.").
" 1d. «74.
* See, eg., MSS ATC Order, 18 FCC Red. 1962, " 66 ("We view full and complete compliance
with each of the requirements as essential to the integrity of our ‘ancillary‘ licensing regime.");
2003 Reconsideration Order, 18 FCC Red. 13590, «| 10 ("We find that the public interest will

                                                —4—


(now Acting Chairman) Michael Copps and Commissioner Jonathan Adelstein each wrote

separately to emphasize just how central adoption of mandatory preconditions or "gating

criteria" was to their decision to permit ATC. Then—Commissioner Copps wrote that "I do want

to emphasize that my decision in this matter does not change my long—held belief that ancillary

terrestrial component service by satellite providers must remain ancillary — in other words,

when it comes to ATC, the tail cannot be allowed to wag the dog.""" Commissioner Jonathan

Adelstein agreed: "I write separately to reaffirm my commitment to the integrity of our rules

that require Mobile Satellite Service (MSS) licensees to comply with gating requirements,

which I have always strongly supported. As I‘ve previously stated, we should not allow an MSS

system with an ancillary terrestrial component to evolve into a terrestrial system with an

ancillary mobile satellite component."‘* In short, meeting the ATC gating criteria prior to ATC

authorization was and remains central to the ATC policy that the full Commission adopted.

       Furthermore, the Commission has specifically rejected the conditional grant approach

taken by the Bureau in this proceeding. In a 2003 rulemaking order granting a reconsideration

petition filed by a group of terrestrial wireless carriers, the Commission reversed a prior

Commission order which would have permitted the grant of ATC applications on the condition

that the MSS licensee subsequently satisfy the commercial—availability requirement or other



best be served by not granting an MSS operator‘s ATC application until we are satisfied that the
MSS operator is in compliance with each of the gating criteria."); Globalstar Licensee LLC, File
No. SAT—MOD—20080516—00106, Order and Authorization, 23 FCC Red. 15975, 18 (2008)
(FCC 08—254) (Globalstar Order). ("an ATC is ancillary to the MSS system it supports, and,
therefore, MSS operators must fulfill the gating criteria in each band in which they seek to
provide ATC.").
"} Globalstar Order, Statement of Commissioner Michael J. Copps, FCC 08—254 at 21
(emphasis in original).
4 Globalstar Order, Statement of Commissioner Jonathan S. Adelstein, FCC 08—254 at 22
(emphasis added).


substantial satellite service gating criteria. The Commission stated that, instead of issuing

conditional licenses, it will "grant/f] ATC applications only after we are satisfied that each of

the gating criteria has in fact been met, or will be met at the same time that the application is

granted.""" The Commission reasoned that this approach would make the ATC licensing

process easier to administer and would reduce the likelihood of controversy or litigation

regarding the timing of an MSS applicant‘s initiation of commercial ATC service.""

Accordingly, the Bureau‘s instant decision to conditionally grant ICO MSS ATC authority based

on the outcome of one or more proceedings to be decided sometime in the indefinite future

directly conflicts with the Commission‘s prior ruling and is therefore ultra vires.

       First, a Bureau cannot issue a decision that contradicts the licensing rules and policies

adopted by the full Commission.‘"‘ In this case, the Bureau granted ICO ATC authority without a

showing of actual compliance with the applicable gating criteria as expressly required by section

25.149(e) of the Commission‘s rules and Commission orders.‘" The Bureau exceeded its

delegated authority by issuing an order "in conflict with . . . [Commission] regulation [and] case

precedent.”19 Consequently, the Bureau‘s decision must be reversed.



5 2003 Reconsideration Order, 18 FCC Red. 13590,          10 (emphasis added); see also 47 C.FR.
§ 25.149(e).
* 2003 Reconsideration Order, 18 FCC Red. 13590, 4 10.
! See, eg., Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C., Order on Reconsideration, 17
FCC Red. 16100, [ 6 (WTB 2002) ("It is axiomatic that a delegated authority decision cannot
conflict or otherwise reverse the decision of the full Commission."); Advanced Communications
Corp., Memorandum Opinion and Order, 11 FCC Red. 3399, « 18 n.31 (1995).
8 47 C.FR. § 25.149(e).
   47 C.FR. § 1.115(b)(2)(i) (Commission review of action taken pursuant to delegated
authority is warranted where the Bureau‘s action "is in conflict with statute, regulation, case
precedent, or established Commission policy"); see also 47 C.F.R. § 0.331(a)(2) (Bureau has no
authority to act on petitions or requests that "present new or novel questions of law or policy
which cannot be resolved under outstanding Commission precedents and guidelines").


                                                <B


       Second, a Bureau does not have the authority to act on any applications or requests which

present novel questions of fact, law, or policy that cannot be resolved under outstanding

precedents and guidelines."" In this case, the Bureau conditioned grant of ICO‘s MSS ATC

authority on the result of one or more still—pending rulemaking proceedings that the Commission

may address in the future."‘ Either ICO has met its MSS coverage obligation or not. If the

Bureau cannot reach that determination based on existing facts, law, or policy, then the Bureau

lacks the authority to conditionally grant ICO‘s MSS ATC authorization.

       Third, although a Bureau may waive Commission rules for good cause shown, it may not

do so if the waiver would undermine the rule‘s policy objective."" In this case, the purpose of the

Commission‘s repeated insistence that MSS ATC applicants unambiguously satisfy the ATC

gating criteria prior to receiving ATC authority was to preclude "speculative, prematurely filed

ATC applications. *3 The Bureau, however, granted ICO‘s MSS ATC application conditioned

on the outcome of an inchoate rulemaking proceeding that is months, if not years, away from

resolution. By granting ICO authority based on a decision the Commission may (or may not)

reach in the uncertain future, the Bureau‘s January 15, 2009 Order granted precisely the type of

"speculative, premature application" that the full Commission has repeatedly sought to prohibit

since first adopting rules governing ATC in 2003.

       As noted above, ICO is nowhere close to demonstrating that it can satisfy the commercial

availability and satellite coverage gating criteria because it has failed to comply with its BAS

relocation and reimbursement obligations; on the contrary, about 65 percent of BAS incumbents

2° 47 C.F.R. § 0.261(b); see also, e.g., Implementation ofFurther Streamlining Measures for
Domestic Section 214 Authorizations, Report and Order, 17 FCC Red. 5517, «[ 28 (2002).
* Order, DA 09—38, M 33—34.
* Northeast Cellular Tel. Co. v. FCC, 897 F.2d 1166 (D.C. Cir. 1990).
* 2003 Reconsideration Order, 18 FCC Red. 13590, « 10.

                                                «Ki


have not yet transitioned from ICO‘s MSS spectrum and ICO has done nothing to fulfill its

independent obligation to relocate BAS or reimburse Sprint Nextel or taxpayers for the cost of

doing so."" Although ICO has proposed that MSS licensees be allowed to commence

commercial MSS before all BAS licensees are relocated, the Commission is still considering this

proposal in a pending proceeding."" Until that proceeding is completed, and until ICO satisfies

all of its BAS relocation and reimbursement obligations, it remains ineligible for a grant of ATC

authority. By filing an application that falls so far short of the Commission‘s requirements, ICO

has submitted precisely the type of "speculative, prematurely filed ATC application[]" that the

Commission sought to discourage in establishing its ATC licensing policies."" The Commission

accordingly should reverse the Bureau‘s Order and dismiss ICO‘s application, or, in the

alternative, hold the application in abeyance until such time as ICO demonstrates full compliance

with the gating criteria as well as its obligation to reimburse Sprint Nextel for ICO‘s pro rata

share of BAS relocation costs that Sprint Nextel has incurred on ICO‘s behalf.

IL.     ICO MAY NOT COMMENCE ATC SERVICE UNTIL IT COMPLIES WITH ITS
        BAS RELOCATION AND REIMBURSEMENT OBLIGATIONS

        ICO must comply with its BAS relocation and reimbursement obligations. The Bureau‘s

rationale in support of conditional grant, in its entirety, is as follows:

        With respect to Sprint Nextel‘s objections related to relocation reimbursement,
        Sprint, ICO, and TerreStar have raised these matters in other Commission
        proceedings, including several docketed proceedings. To avoidprejudicing the
        outcome ofthis dispute, we are issuing ICO‘s ATC authority subject to the




* See, e.g., Letter from Trey Hanbury, Sprint Nextel, to Marlene Dortch, FCC Secretary, WT
Docket No. 02—55, at 1 (Feb. 2, 2009) (noting that approximately 33 percent of broadcasters have
transitioned their BAS operations to frequencies above 2025 MHz).
°5 See note 7, supra.
*° 2003 Reconsideration Order, 18 FCC Red. 13590, « 10.

                                                  —§g—


       outcome ofthis dispute, the resolution ofwhich will occur in another
       proceeding. 27

Even if this condition were validly within the scope of the Bureau‘s authority to issue, which it is

not, the condition is so vague as to be unenforceable. The condition fails to describe how, when,

and under what circumstances the Commission could define or enforce the ambiguous

condition."* For example, what remedy would the Commission undertake if ICO were to

commence operating ATC facilities and subsequently lose its request to commence service

before all BAS licensees are retuned or its transparent attempt to evade its retuning

reimbursement obligations? The simple fact is that the Bureau‘s January 15, 2009 decision is so

patently ultra vires and procedurally defective that the Bureau made little attempt to provide any

explanation for its actions or to point to any facts or rationale in the record of this proceeding that

could justify or support its action.

       As Sprint Nextel has explained in this and other pending proceedings, ICO is required to

reimburse Sprint Nextel for its full, pro rata share of the costs of BAS relocation."" ICO has

long had an independent obligation to relocate BAS licensees to the new 2 GHz band plan, yet

for eight years it has failed to carry out that obligation or take any constructive steps toward that

goal."" Sprint Nextel, by contrast, has worked closely with the broadcast industry and devoted

extensive efforts, at the cost of hundreds of millions of dollars, toward transitioning BAS

*" Order, DA 09—38, 34 (emphasis added).
*" In contrast, the Commission imposed a much clearer and enforceable condition on ICO
regarding its compliance with the MSS spare satellite requirement. Order, DA 09—38, [ 69a
("ATC operation pursuant to this authorization shall not commence until ICO has firm
arrangements in place to meet the requirement, in Section 25.149(b)(2)(ii) of the Rules, to have a
spare satellite available not later than one year after commencement of ATC operations.").
*° See, eg., Sprint Nextel Petition at 2—5; Sprint Nextel October 2008 Letter.
3° ‘The Commission itself has found that "there was no record of meaningful negotiations or
relocation activities having taken place between MSS and BAS at the time the Sprint Nextel
relocation plan was adopted" in 2004. BAS MO&O and FNPRM, 23 FCC Red. 4393, 31.


                                                 —9.


licensees."‘ Requiring ICO to fund its fair share of the cost of clearing BAS incumbents is the

only rational outcome under the Commission‘s policies. Under the Commission‘s bedrock

relocation principles, ICO must share the cost of relocating BAS licensees because it benefits

directly from Sprint Nextel‘s band—clearing efforts. The Commission‘s orders regarding BAS

relocation in the 2 GHz band require ICO to reimburse Sprint Nextel for its pro rata share of

eligible BAS relocation costs, which Sprint Nextel estimates to be approximately $100 million.

       Notwithstanding the Commission‘s rules and policies, ICO has refused to accept its

reimbursement obligations."" Sprint Nextel consequently reiterates its request that the

Commission reaffirm these obligations, and requests further that ICO be barred from offering

ATC service until ICO satisfies its reimbursement obligations.




3‘ See, eg., Letter from Trey Hanbury, Sprint Nextel, to Marlene Dortch, FCC Secretary, WT
Docket No. 02—55, at 1 (Oct. 1, 2008) ("As promised, Sprint Nextel and the broadcast
community met the market—entry demands of the Mobile Satellite Service (MSS) licensees.
Building on months of close collaboration among the 2 GHz BAS manufacturers, installers,
licensees, and Sprint Nextel, the MSS—priority markets that together cover more than 40 million
Americans are now cleared of BAS operations below 2025 MHz. The only parties absent from
this process were — once again — the two MSS licensees, who long ago entered the 2 GHz band
through licensing, building, testing, and, in ICO‘s case, operating their satellite systems, but
continue to do nothing to help relocate the BAS systems that encumber the twenty megahertz of
BAS spectrum that their MSS systems occupy."). As Sprint Nextel has described, its relocation
efforts included meeting ICO‘s timetable for clearing ICO‘s priority markets. See Consensus
Plan of Sprint Nextel, MSTV, NAB, and SBE, WT Docket No. 02—55, at 5—9 (Dec. 6, 2007).
* On February 4, 2008, Sprint Nextel sent a letter to ICO regarding its pro rata share of BAS
relocation expenses. In this letter, Sprint Nextel provided ICO with an initial interim billing
estimate for ICO‘s pro rata reimbursement obligation, and in good faith proposed a meeting
between the companies‘ respective business and finance teams to ensure a timely payment. In a
February 12, 2008 letter to Sprint Nextel, however, ICO stated that it is "impossible to know"
whether or when MSS licensees must reimburse Sprint Nextel, notwithstanding the clear
findings to the contrary in the Commission‘s orders.


                                               — 10 —


III.    CONCLUSION

        The Commission should invalidate the Bureau‘s grant of ATC authority to ICO. ICO‘s

application did not satisfy the Commission‘s gating requirements, and the January 15, 2009

Bureau—level decision impermissibly contradicts the Commission‘s unambiguous rules and

decisions prohibiting grant of ATC authorizations conditioned on the satisfaction of the gating

criteria. For years, ICO has sought to evade its BAS relocation and reimbursement

responsibilities. Its evasion of these responsibilities is inextricably linked with its inability to

provide nationwide, commercial MSS and thereby satisfy an essential gating requirement for

receiving ATC authority. On review, the Commission should reverse the Bureau‘s unlawful

action in granting ICO ATC authority, confirm the MSS licensees‘ obligation to pay their fair

share of BAS relocation costs, and prohibit ICO from commencing ATC service until it satisfies

that obligation.

                                        Respectfully submitted,

                                        SPRINT NEXTEL CORPORATION




                                         $ NcL_
                                        Lawrence R. Krevor
                                         Vice President, Government Affairs — Spectrum
                                        Trey Hanbury
                                         Director, Government Affairs
                                        2001 Edmund Halley Drive
                                        Reston, VA 20191
                                        (703) 433—4141

February 17, 2009




                                                 —11 —


                                    Certificate of Service

       I, Ruth E. Holder, hereby certify that on this 17th day of February, 2009, I caused true
and correct copies of the foregoing Application for Review of Sprint Nextel Corporation to be
mailed by first class U.S. mail, postage prepaid, to:

Cheryl A. Tritt                               Dennis Schmitt
Morrison & Foerster                           New ICO 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
Senior Vice President, Regulatory Affairs     Vice President for Regulatory Affairs
New ICO Satellite Services G.P.               TerreStar Networks Inc.
815 Connecticut Avenue NW, Suite 610          12010 Sunset Hills Road, 9th Floor
Washington, DC 20006                          Reston, VA 20191

Diane J. Cornell                              Joseph A. Godles
Vice President, Government Affairs            Goldberg, Godles, Wiener & Wright
Inmarsat, Inc.                                1229 19th Street NW
1101 Connecticut Ave. NW, Suite 1200          Washington, DC 20036
Washington, DC 20036                          Counselfor TerreStar Networks Inc.

John P. Janka                                 Brandon D. Almond
Jeffrey A. Marks                              Covington & Burling
Latham & Watkins LLP                          1201 Pennsylvania Avenue NW
555 Eleventh St. NW, Suite 1000               Washington, DC 20004
Washington, DC 20004                          Counselfor the Association for Maximum
Counselfor Inmarsat Global Limited            Television, Inc.

Christopher Guttman—McCabe
CTIA — The Wireless Association®
1400 16th St. NW, Suite 600
Washington, DC 20036




                                             /s/ Ruth E. Holder
                                             Ruth E. Holder



Document Created: 2009-02-17 17:03:09
Document Modified: 2009-02-17 17:03:09

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