Attachment Narrative

This document pretains to SES-ASG-20110228-00560 for Assignment on a Satellite Earth Station filing.

IBFS_SESASG2011022800560_871169

Exhibit D


             DESCRIPTION OF THE PROPOSED PRO FORMA ASSIGNMENT
                      AND PUBLIC INTEREST STATEMENT1


       EchoStar Corporation (“EchoStar”) requests the consent of the Federal Communications

Commission (the “Commission”), pursuant to Section 25.119 of its rules,2 to effect a pro forma

assignment of its space station authorizations listed on Schedule 1 hereto to its indirect wholly-

owned subsidiary, EchoStar Satellite Operating Corporation (“ESOC”), and one blanket earth

station license listed on Schedule 2 hereto to its indirect wholly-owned subsidiary, EchoStar 77

Corporation (“E77”).3 The internal reorganization is a necessary step in order for EchoStar’s

subsidiaries to obtain debt financing and will ultimately improve the provision of satellite

services to EchoStar’s customers, who in turn provide retail direct-to-home satellite television

service to millions of U.S. customers.

       In 2008, EchoStar was spun off from its predecessor, EchoStar Communications

Corporation. As a result of the spin-off, EchoStar obtained several Direct Broadcast Satellite

(“DBS”) and Fixed-Satellite Service (“FSS”) satellite licenses, transmit/receive, transmit-only,

and receive-only earth station licenses, and wireless radio licenses, including without limitation

certain of the licenses set forth in Schedule 1 and Schedule 2. Additionally, in the three years

since the spin-off, EchoStar has been granted additional satellite and earth station authorizations.



       1
          EchoStar is simultaneously submitting an application for the pro forma assignment of
its earth station and wireless radio licenses to its indirect wholly-owned subsidiary, EchoStar
Broadcasting Corporation.
       2
           47 C.F.R. §25.119.
       3
          To the extent that EchoStar has received authority to operate any of the licenses
identified in this application under special temporary authority at the time this assignment is
consummated, EchoStar requests a determination by the Commission that the grant of this
Application includes authority for EchoStar to assign such temporary authorizations.


EchoStar has received the approval of its board of directors to assign, upon the Commission’s

consent, all of its space stations and associated authorizations to its indirect wholly-owned

subsidiary, ESOC, and its blanket earth station license authorizing the provision of service into

the United States from the Mexican-licensed EchoStar 4 and EchoStar 8 satellites at 77 W.L. to

E77.

       ESOC is directly held by EchoStar Satellite Services L.L.C. (“ESS”), which in turn is

directly held by EchoStar Corporation. Prior to obtaining financing, EchoStar intends to

incorporate a new direct wholly-owned subsidiary (“Finance Co.”) and contribute all of the

issued and outstanding stock of ESS to Finance Co. As a result, ESOC will be an indirect

subsidiary of Finance Co.

       E77 is currently a directly held subsidiary of EchoStar; however, EchoStar intends to

contribute all of the issued and outstanding stock of E77 to ESS. Upon creation of Finance Co.

as described above, E77 will become an indirect subsidiary of that company. The diagram below

illustrates the planned corporate structure and the simple “move” of the authorizations.




                                                -2-


                                          Current Structure


                                      EchoStar Corporation




     EchoStar Satellite Services L.L.C.                       EchoStar 77 Corporation




EchoStar Satellite Operating Corporation




                                                -3-


                             Post-Reorganization Structure

                                 EchoStar Corporation
                                      (Assignor)



                                      Finance Co.*




                           EchoStar Satellite Services L.L.C.




EchoStar Satellite Operating Corporation                   EchoStar 77 Corporation
       (Space Station Assignee)                        (Blanket Earth Station Assignee)



     * This entity has not yet been incorporated or named.




                                           -4-


       The proposed transaction is pro forma in nature because it will not result in any actual

change in control over the licenses. Rather, the licenses will be assigned to entities, ESOC and

E77, which are wholly owned by the current licensee, EchoStar. The assignment will also serve

the public interest because it will allow Finance Co. to obtain necessary financing for future

growth, acquisition of additional satellites, and expansion of both E77’s and ESOC’s service

offerings. The reorganization will also streamline the distribution of wholesale satellite services

offered by EchoStar’s subsidiaries, ultimately improving the service provided to end users

through EchoStar’s customers. Additionally, the financing that is supported by this proposed

assignment will allow EchoStar’s subsidiaries to enter into new markets and attract new

customers, thereby increasing competition in the multichannel video programming distribution

market.

       To effect this transfer and to pass on to consumers the benefits that EchoStar and its

subsidiaries will obtain from the anticipated financing, EchoStar respectfully requests that the

Commission consent to the proposed pro forma assignment.




                                               -5-


                                          Schedule 1

                              DBS Space Station Authorizations
       Call Sign              Orbital Location                 Expiration Date
        S28114                  61.55° W.L.                       8/6/2020
        S2653                   61.35° W.L.                      10/15/2013

           S27415                61.5° W.L.                            1/27/2018
           S22326                61.65° W.L.                           8/11/2014
           S2454                  86.5° W.L.              10 years from the date in operation
                                                            at authorized location (not yet
                                                                      constructed)



                        17/24 GHz BSS Space Station Authorizations
       Call Sign              Orbital Location                Expiration Date
        S2723                   62.15° W.L.          15 years from the date in operation
                                                       at authorized location (not yet
                                                                 constructed)
           S2725                 75° W.L.            15 years from the date in operation
                                                       at authorized location (not yet
                                                                 constructed)
           S2440                 79° W.L.            15 years from the date in operation
                                                       at authorized location (not yet
                                                                 constructed)
           S2442                 107° W.L.           15 years from the date in operation
                                                       at authorized location (not yet
                                                                 constructed)
           S2441                110.4° W.L.          15 years from the date in operation
                                                       at authorized location (not yet
                                                                 constructed)


       4
         Assignment of this license includes EchoStar’s special temporary authority (“STA”) to
operate the EchoStar 15 satellite over Channels 23 and 24 at 61.5 W.L. See File No. SAT-STA-
20100830-00184 (granted Oct. 21, 2010). The temporary authority expires on April 15, 2011.
       5
          Assignment of this license includes EchoStar’s STA to operate EchoStar 3 as an in-orbit
spare at 61.45 W.L. See File No. SAT-STA-20110202-00021 (granted Feb. 9, 2011). The
temporary authority expires on March 6, 2011.
       6
         Assignment of this license includes EchoStar’s STA to operate EchoStar 6 at 76.95
W.L. See File No. SAT-STA-20110207-00026 (granted Feb. 11, 2011). The temporary
authority expires on March 12, 2011.


            Fixed-Satellite Service Space Station Authorizations
Call Sign            Orbital Location                   Expiration Date
  S2179                   121° W.L.                        8/19/2018
(Ka-band)
  S2143                 121° W.L.                         8/19/2018
(Ku-band)


                        Schedule 2

            DBS Blanket Earth Station Authority
Call Sign                Location               Expiration Date
E050196                  “Various”                4/18/2021



Document Created: 2011-02-24 11:35:12
Document Modified: 2011-02-24 11:35:12

© 2024 FCC.report
This site is not affiliated with or endorsed by the FCC