Attachment Consolidated Reply

This document pretains to SES-LFS-20050826-01175 for License to use Foreign Satellite (earth) on a Satellite Earth Station filing.

IBFS_SESLFS2005082601175_468429

Mobile Satellite Ventures LP
                                                  ORIGINAL

                                    PUBLIC COPY (REDACTED)
                                                                                  RECEIVED
                                             November 23,2005

      Via Hand Delivery
      Ms. Marlene H. Dortch
      Secretary
      Federal Communications Commission
      445 12th Street, S.W.
      Washington, D.C. 20554

              Re:     Consolidated Reply of Mobile Satellites Ventures Subsidiary LLC to
                      Opposition of Stratos Communications, Inc. and Response of Inmarsat
                      Ventures Limited to MSV’s Petition to Hold in Abeyance or to Grant with
                      Conditions Application of Stratos Communications, Inc.
                      File No. SES-LFS-20050826-01175
                      File No. SES-AMD-20050922-01313
                      File No. ITC-214-20050826-00351

      Dear Ms. Dortch:

                Mobile Satellites Ventures Subsidiary LLC (“MSV”) hereby files this redacted public
       version of a Consolidated Reply to Oppositions in the above-referenced proceedings regarding
       applications of Stratos Communications, Inc. (“Stratos”) for Title I11 and Section 214
       authorizations to operate terminals in the United States with an uncoordinated Inmarsat-4 L band
       satellite.’ As discussed herein, certain information provided in the Petition should be treated as
       confidential.2




       ’ See Stratos Communications, Inc., Application for Title I11 Blanket License, File No. SES-LFS-
       20050826-01 175 (August 26,2005); Stratos Communications, Inc., Amendment to Application
       for Title I11 Blanket License, File No. SES-AMD-20050922-01313 (September 22,2005);
       Stratos Communications, Inc., Application for Section 2 14 Authorization, File No. ITC-2 14-
       20050826-0035 1 (August 26,2005).
        47 C.F.R. 5 0.459(b).


Ms. Marlene H. Dortch
November 23,2005
Page 2

                             PUBLIC COPY (REDACTED)

47 C.F.R.   6 0.459(b)(l)    --      Identification of the specific information for which
                                     confidential treatment is sought

       MSV requests confidential treatment of information relating to the Mexico City
Memorandum of Understanding and the on-going international L band frequency coordination
process which is confidential to the parties to that coordination, which includes the Commission
and MSV.3 When considering other applications to use Inmarsat satellites in the United States,
the Commission has acknowledged the confidentiality of this information and has afforded it
confidential treatment.4

47 C.F.R.   3 0.459(b)(2)     --     Identification of the Commission proceeding in which
                                     the information was submitted or a description of the
                                     circumstances giving rise to the submission

       This information is being filed in MSV’s Consolidated Reply to the Opposition of Stratos
and the Response of Inmarsat to MSV’s Petition to Hold in Abeyance or to Grant with
Conditions the above-referenced Stratos applications.

47 C.F.R.   5 0.459(b)(3)     --     Explanation of the degree to which the information is
                                     commercial or financial, or contains a trade secret or is
                                     privileged

        As the Commission has acknowledged, the Mexico City Memorandum of Understanding
and related coordination documents are ~onfidential.~

47 C.F.R.   5 0.459(b)(4)     -      Explanation of the degree to which the information
                                     concerns a service that is subject to competition

      The information contained herein concerns the market for wireless services, in which
MSV faces competition from other MSS providers as well as from terrestrial wireless operators.


 See Memorandum of Understandingfor the Intersystem Coordination of Certain Geostationary
Mobile Satellite Systems Operating in the Bands 1525-1544/1545-1559 MHz and 1626.5-
1646.5/1646.5-1660.5MHz, Mexico City, Mexico, 18 June 1996.
4
 See COMSAT Corporation et. al., Memorandum Opinion, Order and Authorization, 16 FCC
Rcd 2 1661,yy 111 (2001) (“COMSAT Order”) (“The Mexico City Agreement and related
coordination documents, such as minutes of coordination meetings, are considered
confidential.”).
    Id.


Ms. Marlene H. Dortch
November 23,2005
Page 3

                             PUBLIC COPY (REDACTED)

47 C.F.R.   5 0.459(b)(5)     --      Explanation of how disclosure of the information could
                                      result in substantial competitive harm

        Disclosure of the information for which confidential treatment is sought would result in
violation of the Mexico City Memorandum of Understanding.

47 C.F.R.   0 0.459(b)(6)     --      Identification of any measures taken by the submitting
                                      party to prevent unauthorized disclosure

       Disclosure to third parties of the information for which confidential treatment is sought
has been pursuant to non-disclosure agreements.

47 C.F.R.   0 0.459(b)(7)     --      Identification of whether the information is available to
                                      the public and the extent of any previous disclosure of
                                      the information to third parties

         The information for which confidential treatment is sought is not publicly available.
Disclosure to third parties of the information for which confidential treatment is sought has been
strictly pursuant to non-disclosure agreements.

47 C.F.R.   5 0.459(b)(8)     --      Justification of the period during which the submitting
                                      party asserts that material should not be available for
                                      public disclosure

       The information for which confidential treatment is sought should remain confidential
indefinitely or until the parties to the Mexico City Memorandum of Understanding agree that it
can be made publicly available.

47 C.F.R. tj 0.459(b)(9)      --      Any other information that the party seeking
                                      confidential treatment believes may be useful in
                                      assessing whether its request for confidentiality should
                                      be granted

NIA.


Ms. Marlene H. Dortch
November 23,2005
Page 4

                           PUBLIC COPY (REDACTED)


      Please contact the undersigned with any questions.


                                          Very truly yours,


                                PUBLIC COPY (REDACTED)


                                           Before the
                                Federal Communications Commission
                                      Washington, D.C. 20554

In the matter of                             1
                                             1
Stratos Communications, Inc.                 )    File No. SES-LFS-20050826-01175
Application for Title I11 Blanket License    )    File No. SES-AMD-20050922-0 1313
to Operate Mobile Earth Terminals with       )
Inmarsat 4F2 at 52.75"W                      )

Stratos Communications, Inc.                 )    File No. ITC-214-20050826-00351
Application for Section 2 14 Authorization   1
to Operate Mobile Earth Terminals with
Inmarsat 4F2 at 52.75'W                      1


                           CONSOLIDATED REPLY TO OPPOSITIONS




 Bruce D. Jacobs                                 Jennifer A. Manner
 David S. Konczal                                Vice President, Regulatory Affairs
 PILLSBURY WINTHROP                              MOBILE SATELLITE VENTURES
        SHAW PITTMAN LLP                                SUBSIDIARY LLC
 2300 N Street, NW                               10802 Parkridge Boulevard
 Washington, DC 20037-1 128                      Reston, Virginia 20 191
 (202) 663-8000                                  (703) 390-2700


November 23,2005


                                 PUBLIC COPY (REDACTED)

                                             Summary

       MSV continues to urge the Bureau to require Inmarsat to complete coordination of its

new satellite before it is permitted to provide service in the United States. The opposition

pleadings filed by Inmarsat and Stratos serve only to verify that harmful interference is inevitable

if the new satellite begins operation without first completing coordination.

       There are three kinds of interference starkly presented at this point by the prospect of

Inmarsat’s new operations. Inmarsat has not shown how any of them will be avoided. The first

is interference on spectrum that MSV coordinated for its own use and Inmarsat now refuses to

relinquish. Interference on this loaned spectrum would be immediate but for MSV’s continued

restraint. MSV and MSV Canada have been prepared for months to operate their satellites on

this loaned spectrum to conduct tests of their hybrid systems and have held back only in order to

avoid causing harmful interference to the Inmarsat customers that Inmarsat is cynically using as

hostages. The Inmarsat and Stratos filings essentially ignore the clear prospect of this kind of

interference.

       The second is interference that MSV has demonstrated is likely to be caused by

Inmarsat’s operation of a new, uncoordinated satellite providing new services. For nearly ten

years, all operations in the L band have been on the basis of a longstanding technical

coordination of the existing satellites and their services. The technical characteristics of

Inmarsat’s new satellite and the new services Stratos proposes to provide are very different from

what was coordinated. The available evidence, including the Commission’s review of the

satellite’s characteristics and Inmarsat’s own characterization of its interference susceptibility,

indicates that the satellite cannot operate and provide these new services without causing

interference to or receiving interference from other systems in the L band. These differences

prevent the new satellite from being considered a “replacement satellite” pursuant to the Mexico


                                 PUBLIC COPY (REDACTED)

City MoU, which precludes it from being automatically entitled to operate in place of the existing

Inmarsat satellite. Inmarsat has simply failed to address these issues.

       The third kind of interference is that threatened by Inmarsat’s legal argument that it is

entitled, contrary to its earlier commitments to operate only on spectrum it had coordinated

pursuant to the 1999 SSA, to operate wherever it chooses in the L band. According to Inmarsat,

it is now entitled to operate throughout the L band, without any stated self-imposed limits other

than an undefined commitment to operate “on a non-interference basis.’’ In many other cases,

the Bureau can reasonably conclude that an applicant will be able to complete coordination

before operating or will be able to operate on a non-interference basis until coordination is

complete. This was the basis for the court’s upholding the Commission’s determination several

years ago that the Canadian satellite operator could operate on a non-interference basis. In that

case, not only had the Canadian satellite been operating for years pursuant to a coordination

agreement, but the Commission reasonably expected the Canadian operator and the other

operators to use only those frequencies they had coordinated as part of the most recent Spectrum

Sharing Arrangement. Here, by contrast, the new generation of Inmarsat satellites has never

been coordinated, the Mexico City MoU clearly precludes its treatment as a “replacement

satellite,” Inmarsat is already operating in a way that has blocked MSV’s authorized operations,

and by Inmarsat’s own contention there are no limits on how it may operate, just a promise of

“trust me, there won’t be any interference.” Under these current circumstances, Inmarsat’s mere

promise is entirely inadequate as the basis for any reasonable determination that Inmarsat and

Stratos are capable of operating on a non-interference basis.

       Precluding Inmarsat and Stratos fiom operating on the loaned spectrum (or any other

spectrum not coordinated by Inmarsat in the 1999 SSA) would at least partially address MSV’s



                                                 ..
                                                 11


                                 PUBLIC COPY (REDACTED)

interference concerns. Despite protests to the contrary by Inmarsat and Stratos, the existing

authorizations clearly limit Inmarsat's distributors to operating only on the spectrum assigned to

Inmarsat in the 1999 SSA.

       Inmarsat and Stratos are non-responsive on the additional issues raised by MSV that

warrant further scrutiny. Accordingly, if the Bureau acts on the Stratos applications, it should

make clear that (i) if Inmarsat 4F2 is considered a replacement satellite under the Commission's

rules, this does not mean the satellite is a replacement under the Mexico City MoU; (ii) to the

extent the Bureau authorizes Inmarsat 4F2 for service in the United States with &to. 1 O East-West

station keeping without seeking a waiver, the Bureau must afford similar treatment to other MSS

satellites; (iii) if Stratos is not required to file with the Commission the agreement it has reached

with the Executive Branch to address national security and law enforcement concerns, other

MSS operators will not be required to do so either; and (iv) Inmarsat's unilateral choice to locate

gateway earth stations overseas does not excuse it from having to comply with any E9 1 1

requirements the Commission may adopt in the future.


                                                   PUBLIC COPY (REDACTED)

                                                              Table of Contents

Summary .........................................................................................................................................       i

Table of Contents .........................................................................................................................            iv

Background .................................................................................................................................... 1

Discussion.......................................................................................................................................      .4

I.          Holding the Stratos Applications in Abeyance Until the Conclusion of a
            Coordination Agreement Represents Sound Spectrum Management................................                                               ..4

            A.          Absent a Prior Coordination Agreement Covering Inmarsat 4F2,
                        Harmful Interference Among L band Operators Is Imminent and
                        Inevitable.................................................................................................................    .4

            B.          A Bureau Decision to Hold the Stratos Applications in Abeyance
                        Is Consistent with Precedent .................................................................................. ..9

            C.          A Bureau Decision to Hold the Stratos Applications in Abeyance
                        Is Consistent with WTO Treaty Obligations .........................................................                           11

11.        The Bureau Should Make Clear that Inmarsat Is Permitted to Use Only
           Those Frequencies Coordinated Under the 1999 SSA, Which Does Not
           Include Loaned But Recalled Frequencies ........................................................................                           13

111.       The Bureau Should Address the Other Issues Presented by the Stratos
           Applications .......................................................................................................................       15

Conclusion ...................................................................................................................................        .17


                                PUBLIC COPY (REDACTED)

                                           Before the
                                Federal Communications Commission
                                      Washington, D.C. 20554

In the matter of                                 1
Stratos Communications, Inc.                     )   File No. SES-LFS-20050826-0 1175
Application for Title I11 Blanket License        )   File No. SES-AMD-20050922-0 1313
to Operate Mobile Earth Terminals with
Inmarsat 4F2 at 52.75”W

Stratos Communications, Inc.                     )   File No. ITC-214-20050826-0035 1
Application for Section 2 14 Authorization
to Operate Mobile Earth Terminals with
Inmarsat 4F2 at 52.75”W                          )

                           CONSOLIDATED REPLY TO OPPOSITIONS

       Mobile Satellite Ventures Subsidiary LLC (“MSV”) hereby files this Consolidated Reply

to the Oppositions filed by Stratos Communications, Inc. (“Stratos”) and Inmarsat Ventures

Limited (“Inmarsat”) to MSV’s Petition to Hold in Abeyance or to Grant with Conditions the

above-referenced applications to operate terminals with an uncoordinated Inmarsat-4 L band

satellite. By holding the Stratos applications in abeyance until the conclusion of a coordination

agreement, the Bureau will be appropriately exercising its spectrum management authority to

prevent harmful interference and insure the most efficient and effective use of the L band.

                                            Background

       In the above-referenced applications, Stratos is seeking Title I11 and Section 214

authorizations to operate Broadband Global Area Network (“BGAN”) terminals in the United

States with an uncoordinated Inmarsat-4 satellite located at 52.75OW (called “Inmarsat 4F2”). *



I
 See Stratos Communications, Inc., Application for Title I11 Blanket License, File No. SES-LFS-
20050826-0 1175 (August 26,2005) (“Stratos Title IIIApplication”); Stratos Communications, Inc.,
Amendment to Application for Title I11 Blanket License, File No. SES-AMD-20050922-013 13
(September 22,2005); Stratos Communications, Inc., Application for Section 2 14 Authorization, File
NO. ITC-2 14-20050826-00351 (August 26,2005).


                                   PUBLIC COPY (REDACTED)


On October 28,2005, MSV filed a Petition to Hold in Abeyance or to Grant with Conditions the

applications.2 In its Petition, MSV explained that Inmarsat 4F2 has not been coordinated and

that the BGAN terminals that will operate with the satellite will use wideband carriers that are

not contemplated in the coordination agreements pertaining to the current-generation Inmarsat-3

satellites. MSV Petition at 6-9.

       To the extent the Bureau grants the Stratos applications now despite the lack of a

coordination agreement, MSV urged the Bureau to condition the authorizations on operation

strictly on an unprotected, non-interference basis in accordance with the spectrum sharing

arrangement (“SSA”) negotiated in 1999 among the North American L band operators. MSV

Petition at 9-10. MSV urged the Bureau to make clear that this limited authority does not

include permission to use frequencies that MSV and Mobile Satellite Ventures (Canada) Inc.

(“MSV Canada”) temporarily loaned to Inmarsat but subsequently recalled so that they could

begin to use them for their own operations. Id. at 10. MSV noted that the Stratos applications

raise additional issues that warrant further scrutiny, including (i) whether Inmarsat 4F2 is a

replacement satellite under the Mexico City Memorandum of Understanding (“Mexico City

MOW');^ (ii) the failure of Inmarsat 4F2 to comply with the Bureau’s interpretation of the
Commission’s longitudinal station keeping rule; and (iii) the national security and law

enforcement concerns presented by operation of terminals in conjunction with gateway earth

stations located overseas. Id. at 10-14.



2
 See Mobile Satellite Ventures Subsidiary LLC, Petition to Hold in Abeyance or to Grant with
Conditions, File Nos. SES-LFS-20050826-01175, SES-AMD-20050922-0 1313, ITC-2 14-
20050826-0035 1 (October 28,2005) (“MSVPetition”).
3
 See Memorandum of Understandingfor the Intersystem Coordination of Certain Geostationary
Mobile Satellite Systems Operating in the Bands 1525-1544/1545-1559MHz and 1626.5-
164631646.5-1660.5 MHz, Mexico City, Mexico, 18 June 1996 (“‘MexicoCity Mo W’).


                                                 2


                                PUBLIC COPY (REDACTED)


       In their Oppositions, Inmarsat and Stratos deny that Inmarsat 4F2 presents any greater

risk of interference than Inmarsat-3 and claim that, in any event, authorization of Inmarsat 4F2

on a non-interference basis is consistent with pre~edent.~
                                                        They also argue that the commitments

made by the United States pursuant to the World Trade Organization (“WTO”) Basic

Telecommunications Agreement mandate grant of the application.’ Stratos Opposition at 4-5;

Inmarsat Response at 2, 8. In defense of their position, Stratos and Inmarsat claim that Inmarsat

is legally entitled to operate throughout the MSS L band, regardless of whether the spectrum

being used was coordinated for Inmarsat’s use under the 1999 SSA. Stratos Opposition at 7-8;

Inmarsat Response at 4-5,9-12. The only restriction they cite is that they not cause harmful

interference, but they do not indicate how they will do so consistent with their supposed mandate

to operate anywhere they choose. Accordingly, they argue that the Bureau should reject MSV’s

request that it condition grant of the applications on Inmarsat not using frequencies that were

temporarily loaned to Inmarsat by MSV and MSV Canada, but have since been recalled by MSV

and MSV Canada for use in their own systems. Id. With respect to the additional issues raised

by MSV, Stratos and Inmarsat claim that (i) Inmarsat 4F2 is a replacement satellite under the

Commission’s rules; (ii) MSS satellites are not required to comply with the Commission’s

longitudinal station keeping rule; and (iii) the national security and law enforcement concerns

presented by operation of BGAN terminals in the United States have been addressed. Stratos

Opposition at 8- 12; Inmarsat Response at 13-15.


 See Stratos Communications, Inc., Opposition, File Nos. SES-LFS-20050826-0 1175, SES-
AMD-20050922-0 1313, ITC-2 14-20050826-00351 (November 10,2005) (“Stratos
Opposition”); Inmarsat Ventures Limited, Response, File Nos. SES-LFS-20050826-01175, SES-
AMD-20050922-0 1313, ITC-2 14-20050826-00351 (November 10,2005) (“Inmarsat
Response”).
 Fourth Protocol to the GATS (April 30, 1996), 36 I.L.M. 354 (1997) (“WTO Basic
Telecommunications Agreement”).


                                 PUBLIC COPY (REDACTED)

                                            Discussion

I.     HOLDING THE STRATOS APPLICATIONS IN ABEYANCE UNTIL THE
       CONCLUSION OF A COORDINATION AGREEMENT REPRESENTS
       SOUND SPECTRUM MANAGEMENT

       A.      Absent a Prior Coordination Agreement Covering Inmarsat 4F2,
               Harmful Interference Among L band Operators Is Imminent and
               Inevitable

       As MSV demonstrated in its Petition, absent a prior coordination agreement, operation of

Inmarsat 4F2 will cause harmful interference to other L band operators. MSV Petition at 7 -10.

As an initial matter, Inmarsat is already using frequencies on its current system that were

coordinated for MSV's own use under the 1999 SSA, then loaned to Inmarsat on a temporary

basis, and that Inmarsat now refuses to relinquish or to refrain from using on Inmarsat 4F2.

MSV and MSV Canada need access to this spectrum to conduct tests of their hybrid systems and

to implement their aggressive plans to deploy an interim-generation integrated satellite-terrestrial

system. Interference from Inmarsat's operations on this loaned spectrum would occur

immediately but for MSV's continued restraint in not using these frequencies so as to protect

Inmarsat's customers. Inmarsat and Stratos ignore the interference that will occur from its use of

loaned frequencies.

       While Inmarsat and Stratos mention certain alleged benefits that operation of Inmarsat

4F2 will have relative to the current-generation Inmarsat-3 satellite for the interference

environment in the L band: they avoid the issue raised by MSV of its inability to begin testing

and using the loaned spectrum for service, and the interference impact uncoordinated wideband

carriers will have on adjacent channel operators relative to the narrowband carriers used with




 Stratos Opposition at 6-7;Inmarsat Response at 6-7.


                                                 4


                                 PUBLIC COPY (REDACTED)

Inmarsat-3.7 Moreover, the aggregate EIRP (“AEIRP”) of Inmarsat 4F2 is significantly higher

than that of Inmarsat-3, raising the potential for increased interference in the downlink to other L

band operators. A BGAN forward link carrier may be radiated from the 4F2 satellite at 10 dB

higher power, or more, relative to a coordinated narrowband Inmarsat-3 carrier, owing to the

higher data throughput capability of the BGAN carrier being at least one order of magnitude

higher compared to that of the narrowband Inmarsat-3 carrier. As such, absent coordination, out-

of-channel and out-of-band emissions of the BGAN carrier are likely to cause harmful

interference to L band operators. The fact is that key technical parameters of Inmarsat 4F2, such

as its proposed use of loaned frequencies, wideband carriers, guardbands, out-of-channel and

out-of-band emissions, and higher AEIRP, have not been previously coordinated, thus making

operation of Inmarsat 4F2 on a non-interference basis relative to other L band systems unlikely,

even if Inmarsat abided by the 1999 SSA.

       The potential for harmful interference is not limited to that caused to other L band

systems because Inmarsat itself may suffer greater interference upon operation of its new

satellite. Inmarsat 4F2 is far more susceptible than the Inmarsat-3 satellites to co-channel

interference from operation of current-generation L band satellite terminals. The Commission

has noted that uplink co-channel interference resulting from MSV’s current-generation satellite

terminals will increase from 58.6% AT/T to 794.1% AT/T as Inmarsat transitions from the

Inmarsat-3 satellites to the narrow spot beams on the Inmarsat-4 satellites used to support BGAN



’ Stratos claims that a 200 kHz-wide carrier is not a wideband carrier (Stratos Opposition at 6),
but it is much wider than the carriers that have been coordinated to date among the L band
operators, which is the relevant point. Inmarsat and other L band operators have never
coordinated an envelope of frequency assignments, including necessary guard band
requirements, within which Inmarsat can operate these wideband carriers while avoiding
interference to other L band operators.


                                                 5


                                PUBLIC COPY (REDACTED)


operations.* With respect to adjacent-band interference, Inmarsat has claimed in another

proceeding that the Inmarsat 4F2 satellite has not been designed to accommodate the level of

adjacent band interference that can exist from operation of current L band systems based on the

system parameters contemplated when Inmarsat-3 was coordinated.’ If this is the case (which

MSV has reason to doubt),” then Inmarsat 4F2 is more susceptible to adjacent band interference

than the Inmarsat-3 satellites. The result is that, even assuming Inmarsat operates within the

confines of the 1999 SSA, it is unlikely to be able to operate on an unprotected, non-interference

basis once Inmarsat 4F2 begins operation.

       The differences between the Inmarsat 4 satellite and the existing Inmarsat satellites

highlight that the Inmarsat 4 satellites cannot be considered to be replacement satellites under the

Mexico City MoU. Therefore, they are not entitled to operate automatically on the Inmarsat-

coordinated spectrum. Under the Mexico City Mo U,




  See Flexibility for Delivery of Communications by MSS Providers, Report and Order, IB
Docket No. 01-185, 18 FCC Rcd 1962, Appendix C2, Table 2.1.1.C (February 10,2003) (“ATC
Order”). The Commission’s characterization of the interference environment is strictly limited
to interference from satellite operations. The Commission’s decision to permit operation of an
Ancillary Terrestrial Component considered separately the potential impact of such terrestrial
operations, concluding that terrestrial operations would be permitted if they added no more than
an additional 1% AT/T to the interference environment of co-channel operations of other,
already-coordinated systems. See Flexibilityfor Delivery of Communications by MSS Providers,
Memorandum Opinion and Order and Second Order and Reconsideration, IB Docket Nos. 0 1-
185, FCC 05-30 (February 25,2005) (“ATCReconsiderution Order”),1          144-45. For
uncoordinated systems such as the Inmarsat-4 satellites, the Commission left it to the operators
to negotiate a combined interference limit and, in the absence of an agreement, indicated that it
would permit a similar one percent additional rise in the noise floor, above whatever level the
parties coordinate for satellite operations. Id.
 See Inmarsat Ventures Ltd, Petition for Partial Reconsideration and Clarification, IB Docket
No. 01-185 (May 13,2005) (“lnmarsutPetition”),at 9;MSV, Opposition, IB Docket No. 01-185
(August 4,2005), at 9-10 and Technical Appendix.
lo See Letter from Jennifer A. Manner, MSV, to Ms. Marlene H. Dortch, FCC, IB Docket No.
01-185 (November 15,2005).


                                                 6


                                 PUBLIC COPY (REDACTED)


          REDACTED



                                                      (i) it is not replacing another satellite;” (ii) it

will cause greater interference to other L band operators; and (iii) it will require greater

protection from other L band operators. Understandably, Inmarsat and Stratos essentially

ignored this issue in their opposition pleadings, choosing instead to respond to a red herring

about whether Inmarsat 4F2 is a replacement satellite for purposes of the Commission’s bond

requirement. l 2

        Indeed, based on the Inmarsat and Stratos oppositions, the threat of interference is even

greater than what MSV understood initially, inasmuch as Inmarsat and Stratos are now claiming

a right to operate not just on the loaned spectrum, but on each and every frequency in the L band.

Stratos Opposition at 7-8; Inmarsat Response at 4-5,9- 12. Inmarsat claims that coordination can

occur informally, but its recent actions refusing to return loaned spectrum demonstrate that this is

a hollow promise. Inmarsat Response at 7 . In addition to being a misinterpretation of

Commission pre~edent,’~
                     this position demonstrates the dire need for the Bureau to hold the



‘ I Inmarsat admits that the Inmarsat-3 satellite at 54”W that Inmarsat 4F2 is allegedly
“replacing” will in fact continue to operate after the launch of Inmarsat 4F2. See Inmarsat April
2005 Form F-20 at 29 (noting that Inmarsat-3 satellite will cease commercial operations in
2014); id. at 39-40 (explaining that Inmarsat-3 satellites have sufficient fuel remaining to be
relocated to other orbital locations). While Stratos in its application indicates that the Inmarsat-3
at 54”W will be retired, Inmarsat in its Response repudiates this statement and admits that the
satellite will be retired from service only at its current orbital location, but will not be retired
from service altogether. Inmarsat Response at 13.
l2Because Inmarsat 4F2 is not a replacement satellite under the Mexico City MoU, the
multilateral dispute resolution process in the Mexico City MoU is irrelevant to resolving
interference issues that may arise from its operation. Inmarsat Response at 12.
l3As discussed infra on pages 13-15, the COMSAT Order explicitly requires Inmarsat to operate
only on a non-interference basis and only on those frequencies coordinated pursuant to the 1999
SSA. See COMSAT Corporation et. al., Memorandum Opinion, Order and Authorization, 16


                                                  7


                                 PUBLIC COPY (REDACTED)

Stratos applications in abeyance until a prior coordination agreement is reached among the L

band operators. Stratos and Inmarsat provide no explanation as to how L band operators in

actual practice could possibly operate on all L band frequencies and not cause mutual

interference. Even assuming that the Commission did authorize Inmarsat-3 to operate on every

L band frequency (which is not the case), Stratos and Inmarsat completely ignore the issue of

whether this represents sound spectrum management policy in the case of Inmarsat 4F2, which is

technically different than Inmarsat-3 and is more likely to cause interference to, and to receive

interference fiom, other L band operators.

       Given these interference concerns, holding the Stratos applications in abeyance until

conclusion of a coordination agreement is sound spectrum management policy and consistent

with pre~edent.’~
                Absent a prior coordination agreement, MSV and other L band operators,

including Inmarsat, stand to suffer greater interference upon operation of Inmarsat 4F2, even if

Inmarsat abides by the 1999 SSA. The impact will be even worse if Inmarsat begins operating

Inmarsat 4F2 pursuant to its theory that it is authorized to operate on each and every L band

frequency. If the Bureau were to permit Inmarsat 4F2 to provide service in the United States

prior to a coordination agreement, the ability of L band operators to provide vital satellite

services, including to the public safety community, will be threatened.I5 L band operators will

soon find themselves embroiled in interference disputes before the Commission, unable to take



FCC Rcd 21661,l 115(c) (2001) (“COMSATOrder”). This is how the L band operators have
been operating to date, with the exception of Inmarsat’s continued illegal use of loaned
frequencies.
l 4 See Letter from Thomas S. Tycz, FCC, to Joseph A. Godles, Counsel for PanAmSat, File No.
SAT-STA-19980902-00057 (September 15, 1998) (refusing to permit PanAmSat to operate C
band payload until after coordinating with affected Administrations).
l5 See, e.g., Comments of Mobile Satellite Ventures Subsidiary LLC, WT Docket No. 05- 157
(April 28,2005).


                                                  8


                                  PUBLIC COPY (REDACTED)


full advantage of this prime spectrum resource and depriving consumers of the benefits of

innovative services that MSV will provide in the near future. While this may serve Inmarsat’s

dual goals of creating uncertainty for its competitors and portraying the L band as a wasteland

that cannot support advanced services in order to support its play for 2 GHz MSS spectrum,I6 it

does not serve the Commission’s stated strategic objective of promoting “efficient and effective”

use of spectrum. See FCC, Strategic Plan: 2006-2011 (September 30,2005). In this case, apost

hoc approach to coordination disserves the public interest by impeding efficient use of L band

spectrum, resulting in a waste of a vital spectrum resource. Conversely, a policy promoting a

priori coordination that results in contiguous frequency assignments will provide operators with

the certainty to make the most efficient use possible of this spectrum resource and provide

advanced services to all Americans, no matter where they live.

         B.     A Bureau Decision to Hold the Stratos Applications in Abeyance Is
                Consistent with Precedent

         While Stratos and Inmarsat cite prior cases authorizing L band satellites to operate on a

non-interference basis in the absence of a coordination agreement, these cases are not relevant

here. Stratos Opposition at 5,7-8; Inmarsat Response at 4-5, 7-8. Inmarsat and Stratos discuss

AMSC v. FCC at great length, but the court in that case deferred to the Commission’s reasonable

judgment that operations on a non-interference basis were fea~ib1e.l~
                                                                   In that case, the Canadian

MSS operator sought authority to use an L band satellite in the United States that had already



l6   See Reply Comments of Inmarsat Ventures Limited, IB Docket No. 05-221 (August 15,2005),
at 19-22; Letter from Randy Segal, MSV, to Ms. Marlene H. Dortch, FCC, IB Docket No. 05-
221 (September 14,2005) (responding to Inmarsat’s August 15‘h Reply Comments); Letter from
John Janka, Counsel for Inmarsat, to Ms. Marlene H. Dortch, FCC, IB Docket No. 05-221
(September 28,2005); Letter from Randy Segal, MSV, to Ms. Marlene H. Dortch, FCC, IB
Docket No. 05-221 (October 25,2005) (responding to Inmarsat’s September 28‘h letter).
l7   See AMSC Subsidiary Corp. v. FCC,216 F.3d 1154 (D.C. Circ. 2000).


                                                  9


                                 PUBLIC COPY (REDACTED)


been coordinated under the 1999 SSA among the North American L band operators.” During

these coordination discussions, the operators had an opportunity to discuss the technical

parameters of their respective systems and developed an initial sharing plan by which, even after

the annual meetings reached a stalemate, the Canadian operator agreed to abide.” As a result, it

was reasonable for the Bureau to conclude that the narrowband operations proposed by the

applicants could be conducted on a non-interference basis even after the 1999 SSA expired.

Thus, Inmarsat and Stratos are wrong in claiming that AMSC v. FCC holds that the Commission

must grant an application for an uncoordinated satellite on a non-interference basis despite

evidence demonstrating that the satellite will cause and suffer interference. To the contrary,

AMSC v. FCC stands for the unremarkable proposition that it is reasonable for the Commission

to authorize operations on a non-interference basis if there is evidence that such operations are

feasible.20 In the case of Inmarsat 4F2, there is no support for a finding that operation on a non-

interference basis is feasible given the unrebutted evidence that Inmarsat 4F2 is likely both to




18
   Similarly, in authorizing current-generation Inmarsat satellites to provide service in the United
States, the applicants sought authority to use an L band satellite in the United States that had
already been coordinated under the 1999 SSA. See COMSAT Order.
19
                         REDACTED


          Inmarsat’s decision in 2003 to request an additional loan from MSV and MSV Canada
is also consistent with this commitment, as is its statement in its April 2005 securities filing that
“the amount of spectrum available to each operator is currently frozen at the levels agreed in
1999.” Inmarsat Global Ltd., Form F-20 (April 29,2005), at 10 (“Inmarsat April 2005 Form F-
20”) (available at: http://www.sec.gov/Archives/edgar/datd1291401/000104746905012474/
0001047469-05-012474-index.htm).
2oAccordingly, there is nothing noteworthy about the statement of MSV’s predecessor that the
Commission authorized the Canadian MSS system to operate on any frequency coordinated for
the U.S. MSS system. Inmarsat Response at 5 . In that case, the Commission found that
operation on a non-interference basis was feasible. Here, no such finding is possible.


                                                  10


                                  PUBLIC COPY (REDACTED)

cause and to suffer harmful interference, and its operations are in no way contemplated by the

coordination agreements among the L band operators.

        The recent decisions granting MSV licenses for its next-generation satellites on a non-

interference basis are not germane to this case, which pertains to potential operation of earth

stations. First, the MSV-1 and MSV-SA satellites are several years away fiom launch, whereas

the Bureau is presented here with an earth station application to operate with a satellite that has

already been launched, meaning that potential interference to other L band operators is

imminent. Second, there was no evidence in the record that the MSV satellites would cause

harmful interference to other operators. Conversely, in the case of the Stratos applications,

Inmarsat claims that, despite its failure to coordinate its new satellite, it has a right to operate

anywhere in the L band that it chooses, a course that is certain to lead to interference. MSV has

also provided the Bureau with evidence that, even if Inmarsat abides by the 1999 SSA, Inmarsat

4F2 may cause harmful interference to other L band operators. In addition, in the case of the

Stratos applications, MSV has provided evidence that Inmarsat has been using spectrum that was

coordinated for use by MSV, but which it refuses to return.

        C.      A Bureau Decision to Hold the Stratos Applications in Abeyance Is
                Consistent with WTO Treaty Obligations

        Holding the Stratos applications in abeyance until a coordination agreement is concluded

is a permissible exercise of the Commission's domestic spectrum management authority

consistent with the obligations of the United States under the WTO Basic Telecommunications

Agreement. As an initial matter, the WTO Basic Telecommunications Agreement does not

require the Commission to grant market access to a satellite that has not been coordinated

internationally under the ITU Radio Regulations and that presents a credible risk of interference

to operators in the U.S. Nor does the WTO Basic Telecommunications Agreement state or imply



                                                   11


                                 PUBLIC COPY (REDACTED)


that it trumps the obligation of the United Kingdom on behalf of Inmarsat under the ITU Radio

Regulations to successfully complete prior international frequency coordination of Inmarsat 4F2.

Inmarsat has not even begun to coordinate Inmarsat 4F2 internationally, nor (as discussed above)

does the satellite have any rights under the Mexico City MoU. Until coordination is complete,

the Inmarsat 4F2 is simply a rogue satellite that has no internationally recognized rights.

       Moreover, despite the claims of Stratos and Inmarsat, the WTO Basic

Telecommunications Agreement does not require the United States to abdicate its spectrum

management responsibilities and grant each and every application from a foreign-licensed

satellite regardless of interference that may be caused to other operators. See Stratos Opposition

at 4-5; Inmarsat Response at 2, 8. To the contrary, the Chairman’s Note to the WTO Basic

Telecommunications Agreement states that WTO Members may exercise their domestic

spectrum management policies when considering foreign entry.21 Consistent with the

Chairman’s Note, the Commission in DISCO II explained that if grant of access would create

interference with U.S.-licensed systems, it may impose technical constraints on the foreign

system’s operations in the United States or, when conditions cannot remedy the interference,

deny access.22 Thus, holding the Stratos applications in abeyance until a coordination agreement




21See Chairman of the World Trade Organization Group on Basic Telecommunications,
Chairman‘s Note, Market Access Limitations on Spectrum Availability, 36 I.L.M. at 372 (“under
the GATS each Member has the right to exercise spectrudfrequency management”).
22See, e.g., Space Imaging, LLC, Declaratory Order and Order and Authorization, DA 05-1940,
7 18 (Chief, International Bureau, July 6,2005) (“In DISCO 11, the Commission determined that,
given the scarcity of orbit and spectrum resources, it would consider spectrum availability as a
factor in determining whether to allow a foreign satellite to serve the United States. This is
consistent with the Chairman’s Note to the WTO Basic Telecom Agreement, which states that
WTO Members may exercise their domestic spectrudfrequency management policies when
considering foreign entry. Thus, in DISCO 11, we stated that when grant of access would create
interference with U.S.-licensed systems, we may impose technical constraints on the foreign
system’s operations in the United States or, when conditions cannot remedy the interference,

                                                 12


                                 PUBLIC COPY (REDACTED)

is reached among the L band operators is a permissible exercise of the Commission’s domestic

spectrum management policies that is consistent with its WTO 0b1igation.s.~~
                                                                           Moreover, a

Bureau decision to hold the Stratos earth station applications in abeyance while authorizing MSV

to operate next-generation satellites on a non-interference basis does not indicate inconsistent

treatment of similarly situated entities. Stratos Response at 3. In MSV’s case, the Bureau

granted licenses for satellites that are years away from launch, not licenses for imminent

operation of earth stations that will result in interference to other L band systems.

11.    THE BUREAU SHOULD MAKE CLEAR THAT INMARSAT IS
       PERMITTED TO USE ONLY THOSE FREQUENCIES COORDINATED
       UNDER THE 1999 SSA, WHICH DOES NOT INCLUDE LOANED BUT
       RECALLED FREQUENCIES

       Stratos and Inmarsat do not dispute that Inmarsat is using frequencies that were

coordinated for MSV under the 1999 SSA. Instead, Stratos and Inmarsat argue that the

Commission in previous blanket mobile terminal license orders has authorized Inmarsat’s

distributors to operate anywhere they chose in the L band, with the only restriction being that

they do so on a non-interference basis. See Stratos Opposition at 7-8; Inmarsat Response at 4-5,

9-12. They are wrong. The COMSAT Order clearly requires Inmarsat to operate both on a non-

interference basis and pursuant to the frequencies coordinated pursuant to the 1999 SSA. See



deny access.”) (citing Amendment of the Commission Is 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. 96-1 11, 12 FCC Rcd 24094 (1997) (“DISCO If’)).
23 Despite the claims of Stratos and Inmarsat, MSV is not seeking to delay Inmarsat’s use of
Inmarsat 4F2 for competitive reasons or to gain leverage in coordination discussions, nor does
MSV have a “history” of opposing new MSS offerings. See Stratos Opposition at 3; Inmarsat
Response at 3-4. Throughout its history, MSV has sought to ensure that new MSS entrants in the
L band are afforded stable access to sufficient spectrum and are adequately protected from
interference, and that the L band is used in the most efficient and effective manner. Given its
head start over new entrants such as MSV resulting from its decades as a monopoly, Inmarsat
does not need the stability that is essential to the success of new entrants.


                                                 13


                                PUBLIC COPY (REDACTED)

COMSAT Order 7 115(c)-(d). The Commission granted these applications in 200 1, well after

expiration of the last SSA at the end of 1999. Thus, it was aware that the SSA had expired. It

also was aware that                     REDACTED

                                .24   In its decision, the Commission specifically conditioned the

licenses on use of only those frequencies coordinated for Inmarsat in the “most recent annual L-

Band operator-to-operator agreement,” which is a reference to the 1999 SSA. COMSAT Order T[

115(c). Inmarsat never sought reconsideration or clarification of this unambiguous condition.

Indeed, even more recently in February 2003,25November 2004,26and February 2005,27the

Commission was under the impression that the parties were continuing to operate under the 1999

assignments pending further negotiations. Moreover, Inmarsat’s decision in 2003 to request an

additional loan from MSV and MSV Canada is also consistent with such a condition, as is its

statement in its April 2005 securities filing that “the amount of spectrum available to each

operator is currently frozen at the levels agreed in 1999.”28



24
             REDACTED

25See ATC Order 192 (“The parties to the MoU last revised spectrum assignments in 1999 and,
pending further negotiations, continue to operate under those assignments today.”); id. n. 144
(“Although annual meetings were to have taken place under the terms of the Mexico City MoU,
these meetings have not occurred since the parties last agreed to a complex spectrum-sharing
arrangement in London in 1999; therefore, the parties continue to operate under the 1999
assignments pending further negotiations.”).

26 See Mobile Satellite Ventures Subsidiary LLC, Order and Authorization, DA 04-3553 (Int’l
Bur. 2004), at n.8 ) (“The parties to the MOU last revised the spectrum assignments in 1999 and,
pending further negotiations, continue to operate with those assignments today.”).
27See ATC Reconsideration Order 138 (“These negotiations have not occurred since 1999, and
the 1999 coordination agreement remains in effect.”).
28
  Inmarsat Global Ltd., Form F-20 (April 29,2005), at 10 (“Inmarsat April 2005 Form F-20”)
(available at: http://www.sec.gov/Archives/edgar/data/
                                                     1291401/000104746905012474/
0001047469-05-0 12474-index.htm).


                                 PUBLIC COPY (REDACTED)

       Inmarsat’s misreading of the COMSAT Order demonstrates the need for the Commission

in this proceeding to clarify that any METs authorized to operate with any L band satellites,

including all of the Inmarsat satellites, are permitted to use only those frequencies coordinated

under the 1999 SSA, which does not include loaned but recalled f r e q ~ e n c i e s Inmarsat’s
                                                                                     .~~

unilateral re-interpretation of the COMSAT Order, along with its theory of “prevailing usage,”

would allow it to confiscate spectrum coordinated by other Administrations, thereby threatening

the underpinning of the internationally accepted regime for assigning satellite spectrum among

sovereign nations.30 Absent clarification by the Bureau that Inmarsat is only permitted to use

those frequencies it coordinated under the 1999 SSA, the United States is at risk of losing a vital

national spectrum resource to Inmarsat’s unilateral and illegal action.

111.   THE BUREAU SHOULD ADDRESS THE OTHER ISSUES PRESENTED
       BY THE STRATOS APPLICATIONS
       Stratos and Inmarsat are non-responsive on the additional issues raised by MSV that

warrant further scrutiny. First, while Stratos and Inmarsat argue the irrelevant point that

Inmarsat 4F2 is a replacement under the Commission’s satellite processing rules, they are silent

on whether Inmarsat 4F2 can properly be considered a replacement satellite under the Mexico

City MoU. Given this concession and MSV’s showing that the Inmarsat 4F2 does not qualify as



29Inmarsat argues that the Mexico City MoUprovides for a multilateral dispute resolution
process to deal with issues such as the loan dispute. Inmarsat Opposition at 12. Because
Inmarsat 4F2 is not a replacement satellite under the Mexico City MoU, this dispute resolution
process is not applicable to its operation.
30 In the prospectus Inmarsat recently filed in connection with its initial public offering (‘?PO”),
Inmarsat explained that its so-called right to use L band frequencies in North America is based
on its theory of “prevailing usage,” which apparently refers to Inmarsat’s view that it can use any
frequency it wants provided it does so for a sufficiently long time. See Inmarsat plc Prospectus,
Global Offer of Approximately 164.6 Million Shares of €0.0005 each and admission to listing on
the Official List and to trading on the London Stock Exchange at an Offer Price expected to be
between 2 15p and 245p per share (“Inmarsat Prospectus”), at 53 (attached at Exhibit A).


                                                  15


                                PUBLIC COPY (REDACTED)

a replacement under the Mexico City MoU (see supra pages 6-7), MSV urges the Bureau to make

clear that if it considers Inmarsat 4F2 to be a replacement satellite under the Commission’s rules,

this does not mean the satellite is a replacement under the Mexico City MoU.

       Second, while MSV agrees with Stratos and Inmarsat that the Commission’s rule

requiring Fixed Satellite Service (“FSS”) satellites to operate with h0.05” East-West station

keeping does not apply to MSS satellites, the Bureau must apply this rule consistently. To the

extent the Bureau authorizes Inmarsat 4F2 for service in the United States with hO.1” East-West

station keeping without seeking a waiver, the Bureau must afford similar treatment to other MSS

satellites proposing to serve the U.S. market, such as MSV-1 and MSV-SA.

       Third, MSS operators in the past have been required to file with the Commission the

Implementation Plans negotiated with the Executive Branch. If Stratos is not required to do so,

the Bureau must make clear that other MSS operators are not required to do so either.

       Finally, Inmarsat and Stratos note that E9 11 requirements do not currently apply to MSS

operators. See Stratos Opposition at 11- 12; Inmarsat Response at 15. The Bureau should make

clear that Inmarsat’s unilateral choice to locate gateway earth stations overseas does not excuse it

from having to comply with any E91 1 requirements the Commission may adopt in the future.


                                PUBLIC COPY (REDACTED)


                                           Conclusion

       Based on the foregoing, the Bureau should hold in abeyance the Stratos applications until

the conclusion of an L band coordination agreement. If the Bureau nonetheless grants the

applications now, it should condition the authorizations on operation strictly on an unprotected,

non-interference basis in accordance with the spectrum sharing arrangement negotiated in 1999

among the North American L band operators, which does not include frequencies that were

temporarily loaned but subsequently recalled by the lenders.

                                     Respectfully submitted,




 Bruce D. Jacobs
 David S. Konczal                                  Vice President, Regulatory Affairs
 PILLSBURY WINTHROP                                MOBILE SATELLITE VENTURES
        SHAW PITTMAN LLP                                  SUBSIDIARY LLC
 2300 N Street, NW                                 10802 Parkridge Boulevard
 Washington, DC 20037-1 128                        Reston, Virginia 20 191
 (202) 663-8000                                    (703) 390-2700

Dated: November 23,2005


                               PUBLIC COPY (REDACTED)


                                          Exhibit A


Excerpt from: Inmarsat plc Prospectus, Global Offer of Approximately 164.6 Million Shares of
€0.0005 each and admission to listing on the Official List and to trading on the London Stock
Exchange at an Offer Price expected to be between 2 15p and 245p per share.


         inrnarsat
                          ai                                           Inmarsat plc
                                                                         Prospectus


                                         Joint Bookrunners
      JPMorgan Cazenove        Lehman Brothers   Memll Lynch International   Morgan Stanley
        (Joint Sponsws)                                                      (Joint Spoosors)




0 .


     A copy of this document, which comprises a prospectus relating to lnmarsat plc (the “Company”) as required by
the Listing Rules (the “Listing Rules”)made under section 74 of the Financial Services and Markets Act 2000
(“FSMA”),has been delivered to the Registrar of Companies in England and Wales for registration as required by
section 83 of FSMA.
                                                                                                                                      ’
     Application has been made to the UK Listing Authority and to the London Stock Exchange respectively fok
admission of all of the ordinary shares of €0.0005 each (the “Shares”) issued and to be issued in connection with the
Global Offer (as defined in “Part 1 I: Definitions”): (i) to the Official List of the UK Listing Authority (the “Official
List”); and (ii) to the London Stock Exchange plc’s (the “London Stock Exchange”) market for listed securities
(together “Admission”). Conditional dealings in the Shares are expected to commence on the London Stock Exchange
on 17 June 2005. It is expected that Admission will become effective and that unconditional dealings in the Shares will
commence on the London Stock Exchange at 8.00 a.m. (London time) on 22 June 2005.
     All dealings before the commencement of unconditional dealings will be on a “when issued” basis and will
be of no effect if Admission does not take place. Such dealings will be at the sole risk of the parties concerned.
     The Directors (as define‘d in “Part 11: Definitions”) and the Proposed Directors (as defined in “Part 11:
Definitions”) of lnmarsat plc, whose names appear on page 1 of this document, accept responsibility for the
information contained in this document. To the best of the knowledge and belief of the Directors and the Proposed
Directors, who have taken all reasonable care to ensure that such is the case, the information contained in this
document is in accordance with the facts and does not omit anything likely to affect the import of such information.
      This document does not constitute an offer to sell, or the solicitation of an offer to buy, Shares in any
jurisdiction where such offer or solicitation is unlawful. The Shares have not been, and will not be, registered
under the US Securities Act of 1933 (the “Securities Act”), and, subject to certain exceptions, may not be offered
o r sold within the United States. The Shares are being offered and sold outside the United States pursuant to,
and in reliance on, Regulation S (“Regulation S”)under the Securities Act and within the United States only to
qualified institutional buyers (‘QIBs”) as defined in Rule 144A (“Rule M A ” ) under the Securities Act in
transactions exempt from the registration requirements of the Securities Act. Sellers of the Shares may be
relying on the exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A.For a
description of these and certain further restrictions on offers, sales and transfers of the Shares and the
distribution of this document, see paragraph 15 under “Part 10: Additional Information”.
     Anyone considering acquiring Shares in the Global Offer should read this document in its entirety and, in
particular, “Part 1: Risk Factors”.




                                                                               %iP
                                         inmarsat
                                                        Inmarsat plc
               (incorporatedond regiftend in England and Wales under the Companies Act 1985 with rejistered no. 4886072J


 Global Offer of approximately 164.6 million Shares of €0.0005 each and admission to listing
 on the Official List and to trading on the London Stock Exchange at an Offer Price expected
                             to be between 215p and 245p per Share
                                                           Joint Sponsors

    JPMorgan Cazenove                                                                                        Morgan Stanley

                                                         Joint Bookrunners

    JPMorgaa Cazenove                  Lehman Brothers             Merrill Lynch International               Morgan Stanley

                            Expected ordinary share capital immediately following Admission
               Authorised                                                                                      -
                                                                                                               Issued

                                                      Shares of €0.0005 each
     Number                  Amount                                                              Number                    Amount
  1,169,017.709             €584,509                                                           473,512,588                 €236,786


     Pursuant to the Radio Regulatio~,national regulators         required to file technical information with the
ITU relating to the proposed satellite systems of operators under their jurisdiction. Ground-based transmission
facilities operated by us or our distribution partners, called land earth stations, which conncct our satellites to
tunstrial communications networks,arc also subject tu the Radio Regulations if the land earth station
coordination area crosses an internationalborder.
     AU necessary filings for our in-orbit satellites have been made on our behalf by the UK
RadiocommunicationsAgency (which, from 29 December 2003,was incorporated into and replaced by the UK
Office of Communications, known as Ofcom). Once filings have been ma& with the TIZI,a frequency co-
ordination process follows to ensure that each operator's services do not cause unacceptable interference to the
services of other operators. The negotiationsare conductedby the national administrationswith the assktancc of
satellite operators. The timetable and procedures for co-ordination are also governed by the Radio Regulations.
We have co-ordinated frequenciesin the mobile satellite services spectrum at Lband (1 5 and 1.6 GHz) for
communication between OUT satellites and end-user terminals, as well as frequenciesin the C-band (4 and 6 GHz)
for communications between land eanh stations and our satellites. We also have co-ordinated frequenciesin the
C-band for our backing. telemelry and command signals to and from our satellites.

     Frequency in the L-band is allocated on an annual basis in a regional multilateral co-ordination process
which takes place annually through two separate and independentregional operator review meetings among
satellite operators using frequencies in the L-band.One meeting involves operators whose satellites cover North
America (known as Region 2). whik the other involves operators whose satellites cover Eumpe (known as
Region I). Africa, Asia and the Pacific (collectively known as Region 3). Both of these groups coordinate our
use of frequencies in South America. In each case, sntellite operators coordinate frequencies and assign
spectrum by consensus. It may be possible to agree frequency allocation and coordination on a bilateral h i s
between operators outside this multilateral process, subject to non-interferencewith third parties.
     In the past, we have been able to secw sufficient spectrum through these coordination meetings to provide
all our services. However, satellite operators at the North American meeting have been unable to a g m on new
spectrum allocations and spectrum rights in the North America region are therefore now founded on prevailing
usage under the over-arching principles established by the ITU. MSV and MSV Canada have challenged our
right to use padcular frequency ranges in our c u m t North American s p t m i n , claiming that they are entitled
to use those spectnun segments. We have rejected these claims, pointing m our continuous use of these spcctrum
                                                                                                                      I@
segments and MSV's failure to use other spectrum availabk to it. Moreova, we believe the appropriate fONm
for any spectrum coordination issue is a multilateral meeting of all North American operators. Pending such a
mating. our rights to the current spectrum over North America are founded on the wellestablished principles of
manifest continuous usage and non-interference.
      We have agreed spectrum allocations in the Region 1 and Region 3 operators' nview meetings (I) with d l
 operators in respect of our existing services and (2) with all operators, except one,in respect of our next-
 generation BGAN services. We believe these agreements provide sufficient spectrum to support our existing and
 next-generation services, including BGAN,throughout the period of validity of the allocation agreements.
 However, the operator who has not agreed to the latter plan has a l d y stated that it will continue to operate
 according to the previous spectrum allocation plan. If this situation persists, the^ is potential for interference to
 both our and that operator's services. Furthermore. it is possible we would need to apply for additional specbum
 to support our futlure services.
      Increased competition for spearurn and orbital locations (andor disputes with parties to regional CQ-
 ordination processes) may make it difficult for us to retain rights to use the spectrum and orbital resources we
 require. We cannot guarantee that we will be able in the future to ntain spectrum and ortital rights sufficient to
 provide our existing or future services. We also cannot determine to what extent regulatory authorities will
 chnrge us or our distribution partners for the use of mobile satellite communications &ce      spectrum or how
 much would need to be paid 10 acquirr M retain such spectrum in the future. To the extent we or our distribution
 partners are unable to retain the rights to use such spectrum or are required LO pay for such use (by spectrum
 auctions or otherwise), our ability to provide services may either be limited or become more costly, which may
 harm our business or our results of operations.

 Use of Mobile Satellite Communications Service Spectrum (0 Provtde Terrestrial Communications
 servlces
        January 2003,under the ATC Ruling the FCC decided to permit mobile satellite communications service
 operators to use theii assigned mobile satellite communicationsservice frequencies to provide ancillary terrestrial
 wireless communication services in the United Staces as port of an integrated service.

                                                            53


                                   Technical Certification

        I, Dr.Peter D. Karabinis, Senior Vice President and Chief Technical Officer of Mobile
Satellite Ventures Subsidiary LLC, certifL under penalty of perjury that:
        I am the technically qualified person with overall responsibility for the technical
information contained in the foregoing. I am familiar with the Commission’s rules, and the
information contained in the foregoing i                      the best of my knowledge and
belief,




                                                    Dated; November 23,2005


                                     PUBLIC COPY (REDACTED)

                                     CERTIFICATE OF SERVICE

        I, Sylvia A. Davis, a secretary with the law firm of Pillsbury Winthrop Shaw Pittman
LLP, hereby certify that on this 23rd day of November 2005, served a true copy of the foregoing
PUBLIC COPY by first-class United States mail, postage prepaid, upon the following:
Roderick Porter*                                 Gardner Foster*
International Bureau                             International Bureau
Federal Communications Commission                Federal Communications Commission
445 1 2 ' ~Street, S.W.                          445 12IhStreet, S.W.
Washington, DC 20554                             Washington, DC 20554

James Ball*                                      Cassandra Thomas*
International Bureau                             International Bureau
Federal Communications Commission                Federal Communications Commission
445 1 2 ' ~Street, S.W.                          445 1 2 ' ~Street, S.W.
Washington, DC 20554                             Washington, DC 20554

Karl Kensinger*                                  Fern Jarmulnek*
International Bureau                             International Bureau
Federal Communications Commission                Federal Communications Commission
445 12IhStreet, S.W.                             445 12IhStreet, S.W.
Washington, DC 20554                             Washington, DC 20554

Robert Nelson*                                   Howard GribofP
International Bureau                             International Bureau
Federal Communications Commission                Federal Communications Commission
445 1 2 ' ~Street, S.W.                          445 1 2 Street,
                                                           ~     S.W.
Washington, DC 20554                             Washington, DC 20554

Andrea Kelly*                                    Scott Kotler*
International Bureau                             International Bureau
Federal Communications Commission                Federal Communications Commission
445 1 2 ' ~Street, S.W.                          445 12* Street, S.W.
Washington, DC 20554                             Washington, DC 20554

JoAnn Ekblad*                                    Alfred M. Mamlet
International Bureau                             Phillip L. Malet
Federal Communications Commission                Marc A. Paul
445 12IhStreet, S.W.                             Steptoe & Johnson LLP
Washington, DC 20554                             1330 Connecticut Avenue N.W.
                                                 Washington, D.C. 20036
                                                 Counsel for Stratos Communications, Inc.

Diane J. Cornel1                                 John P. Janka
Vice President, Government Affairs               Jeffrey A. Marks
Inmarsat, Inc.                                   Latham & Watkins LLP
1100 Wilson Blvd, Suite 1425                     555 Eleventh Street, N.W
Arlington, VA 22209                              Suite 1000
                                                 Washington, DC 20004




*By Electronic Mail



Document Created: 2005-12-01 15:26:29
Document Modified: 2005-12-01 15:26:29

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