Attachment Order

This document pretains to SES-MFS-20050831-01198 for Modification w/ Foreign Satellite (earth station) on a Satellite Earth Station filing.

IBFS_SESMFS2005083101198_482355

                                 Federal Communications Commission                             pa oc—s2s

                                              Before the
                                 Federal Communications Commission
                                       Washington, D.C. 20564

In the Matter of

Loral Skynet Network Services, Inc.                           File Nos.: SES—MFS—20050831—01 198
                                                                         SES—AMD—20051118—01503
Application for Authority to Add
the Extended C—Band Frequencies                               Call Sign: E980250
and to Add Kazakhstan as a Destination
Point for Loral‘s Fixed Earth Station
in Kepolcl, Hawail


                                 ORDER AND AUTHORIZATION

Adopted: February 09, 2006                                       Released:    February 09, 2006
By the Chief, Satellite Division, International Bureau:
A       iNTROPUCTION
         1.     By this Order, we grant authority to Loral Skynet Network Services, Inc. (Debtor—
in—Possession) (Loral)! to expand the range ofC—band frequencies on which its 13—meter earth
station in Kapolei, Hawaii (Kapolei earth station) may access the Kingdom of Tonga‘s Telstar 18
satellte. Specifically, we authorize the earth station to transmit to Telstar 18 in the 6425—6650
MHz band ("extended C—band"). Further, we grant Loral‘s request to authorize the earth station
to provide service to Kazakhstan via the Telstar 18 satellite" Grant of this application represents

! LSNS (Debror—in—Possession a US. coporationis a wholl—ouned subsidiaryof Lonal Space &
Communications Comortion (Debro—in—Possesion), also a U.S. coporation. Loral Space & Communications
Comortion is wholl—owned and contriledby Lorl Space & Communication, L. (Dcbto—i—Possssion(Lorl
L DIP),a Bermuda company. LoralLid.DIP‘s home market is the Unted Stites, Loral Applcation at
ArtachmentD._.On September 20, 2005,the ntemational Bureau (Buresu) grnted theaplictionsof Lorl Space
& Communications L1d. (Dcbtor—in—Possssion(DIP)forthtranser of contrl ospace and erthstationlcenses
held by is subsidiriesLorl Orion,Ic. (PHP), LoralSpaceCom Corpontion(DIP,and Lorl Synet Network
Servies,Inc.(DIP) o Loral Space & CommunicationsInc. See Authoriations Gramted, PublicNoric, TB Docket
No,0—233, DA 05—2629(rel.Sept 20, 2005). On October21, 2005,Philp Ivaldy, acting on behalf ftheLorl
Shareholder Protective Commitee,ied a peiion foeconsidertion ofthe Bureau‘s decison o grant Lorl‘s
transfer ofcontol applications
° On June 22, 2004he Comnission granted Lorl‘s request o provide Tracking, Telemety,and Command
(CTTRC) opertions for the Telstr18 sitelite via the Kapole, Havaii arthsation. See Sarlite
Communications Iformation Re: Actions Taken, Pubic Notc; Report No. SES—00616 (rl. June 23, 2004)
(zranting IBFS File No. SES—MOD—20040115—00131, asamended by IBFS File No. SES—AMD—20040510.00662)
On Jine 13, 2008,the Commission granted Lorl‘s equestfospecial temporiry authorit t operite he Kapole
earthsationusing the 61256650 MIHe frequency band. See Satelite Communications Services nformation, Pubilc
                                                                                             (Continued..


                                 Federal Communications Commission                             pa oc—s2s

another step in implementing U.S. market—opening commitments to satelliteslicensed by other
countries and will enable Loralto expand the reach of its service.
1.      BACKGROUND
        3.      The Commission‘s DISCO Hf Order® implemented the market—opening
commitments made by the United States in the World Trade Organization ("WTO") Agreement
on Basic Telecommunications Service ("WTO Basic Telecom Agreement"). These
commitments allow new entrants and technologies into the U.S. market, thus advancing the
growth of satellite services around the globe. In particular, the DISCO 17 Order established a
framework under which the Commission will consider requests for non—U.S—licensed space
stations to serve the United States. To implementthis framework, the Commission, among other
things, established a procedure by which a service provider in the United States could request
immediate access to a foreign in—orbit space station that would serve the U.S. market This
procedure allows a U.S. earth station operator seeking to communicate with a non—U.S—licensed
space station to file an earth station application for an initial license or for a modification of ts
existing earth station license, listing the foreign—licensed space station as a permitted point of
communication.
        3.      Because the Commission does not issue duplicative U.S. licenses for space
stations licensed by other countries," a U.S. earth station application often represents the
Commission‘s first opportunity to evaluate whether the foreign—Jicensed space station complies
with the Commission‘s technical, legal,and financial qualifieation requirements. The first earth
station application secking to communicate with a particular foreign—licensed space station must
therefore include the same detailed information about the space station and its operations that the
Commissionrequires from U.S. space station applicants

(..contimed from previous pags)
Notc, Report No. SES—00723 (rel. Je 15, 2005)(gantng IBFS File No. SES—STA—20050412.00#20), On July
 1, 2005, he Bureau gramed Loral‘s application forauthoritytocommunicate witthe Telsar 13 satliteusing the
comentional Cband frequencies, See Loral Synet Network Services, Inc, Applicaion for Autharty to Provide
Communication Services via the Telsar18 Stelitfrom Loral‘s Fixed Earth Sution in Kapoli, Havaii Using the
Commentional C:band Frequencies, Order and duthoriaton, 20 FCC Red 11896 rel Jly 1, 2005) (Loral Telsar
18 Order"). On August 17,2005, the Commissiongranted Loral‘srequest for specil temporary authoriyto
provide servicesto Kazaktstanvia theTelsar 18 stelitand theKapolci eath station. See Satellte
Communications Services Information, Public Noti, Report No. SES:—0074(rel. Aug 24,200%)(grantng IBFS
File Nos. SES—STA—20050815.01103, ESSTA—20050819—01118,and SES—STA—20051101—01499). Finaly, on
October 4 2005,the Commisiongrated Loral‘srequest foran extension of ts exiting specialtemporary authorty
to opertethe Kapoleiearthstation using the 6425—6650 Mz requency band. See Sitelite Communications
Servics Information, Publc Notie, Report No SES—00755 (rl. ct 5, 2005) (ganting IBFS File No. SES—STA—
20050015.01250)
* Amendment ofthe Commisson‘s Regulatery Poliies o AllowNon—JS—Licensed Space Stations o Provide
Domestiand IntemationalStelite Servie in the Unied Sttes, Report and Order,12 FCC Red 24094 (1997)
(woisco it oner")
"DISCO 11 Orderat24174, pmn. 18
id ar 24174, por. 188
*See47 CR 525137


                                 Federal Communications Commission                              ba te—s2s

        a       In July 2005, the Intemational Bureau (Bureau) granted Loral‘s application to add
the Telstar 18 satellite," which is located at the 138° E.L. location and licensed by the Kingdom
of Tonga, as a point of communication forits Kapolei earth station using the conventional C—
band frequencies to provide fixed—satellte services (FSS) (excluding direct—to—home (DTH)
service)." In granting the application, the Bureau found that the Telstar 18 satellite complies with
the Commission‘s technical, legal, and financial qualification requirements. The Bureau also
found that Tonga provides "effective competitive opportunities" for U.S.—licensed space stations
to provide FSS in Tonga. On August 31, 2005, Loral filed an application to modify the earth
station toallowit to transmit to Telstar 18 in the extended C—band frequencies and to add
Kazalkhstan as a destination point ofcommunications from the earth station via the Teltar 18
satellte." We placed the application on public notice on September 14, 2005." No comments
were filed.
N.      DISCUSSION
        A.      General Framework
        s       In DISCO !L, the Commission set forth the publicinterest analysis applicable in
evaluating appliations to use non—U.$—licensed space stations to provide satellte service in the
United States. This analysis considers the effect on competition in the United States," eligibilty
and operating requirements," spectrum availability," and national security, law enforeement,
forcign policy, and trade concems." We evaluate the Loral request to transmit to Telstar 18 in
the extended C—band and to provide FSS to Kazakhstan under this framework.

        B.       Competition Considerations
        6.      In the DISCO II Order, the Commission adopted two different frameworks under
"In tor, the spacecrftcontains 38 C:band transponders (24 ofwhich operate in thconvetional C:band and 14 of
which operate in the extended C—band)and 16 Ku—band trnsponders. The conventionaland extended C:band
frequencieson th spacecrft are hoensed by theKngdom ofTonga nder te name "Tongasat OKU:3." The Ku—
band frequencies on thespaceczat are licensed b the People‘s Republic ofChina undeth name of"Apstr V."
Lora efesto the spuceceaft withallitspayloadsas Telsar 18." For ease ofrefrence,i this Order "Telsr 18"
refers onltthe conventional and extended Chband frquencis.
* See LoralTelsar 18 Order, 20 ECC Red at11896. The "comentional" Cband refrsto frequencies ithe 3700—
4200 MH(downlin)and 5025—6425 MLtz (uplink) bands
* 1BFS File No. SES—MFS—20080631—01198._ n additin, on November 15, 2005,Lorlfled anamendinent t ts
appliation secking tadd the 3628—3700 Mz (dowalinkand 58505025 MLtz (uplin)frequenciesto is Kapole
earthstation authorization. TBFS File No. SES—AMD—20051115.01873., The amendment was placed on publc
noticeon December 25, 2005. See Satelite Communications Servces, Public Noic, Report No. SES:00779 (rel
Dee.28,2005). The request submited ithiamendment willb addressed in a separataction subsequent t the
release ofthisorder
© See Steite Communications Services, Public Noice, Report No. SES—00749(el. Sept. 14, 2008)
" DISCO 11 Orter, 12 ECC Red at 24107—56, pams. 30—145
* id at 24159—69, pars 151—74
9 d at 24157—59, paas, 146—50
" id at 24109—72, pams. 175—82


                                 Federal Communications Commission                            paoc—s2s

which it would evaluate the foreign entrant‘s effect on competition in the U.S. satellite market
First, in eases where the non—U.S—licensed space station is licensed by a country that is a
member ofthe WTO and will provide services covered by the U.S. commitments under the
WTO Basic Telecom Agreement, the Commission established a presumption that entry will
further competition in the United States. The U.S. commitments include FSS, but specifically
exclude direct—to—home (DTB) services, Direct Broadeast Satelite Service (DBS), and Digital
Audio Radio Service (DARS)." This means that we will presume that WTO—Member—Licensed
space stations providing WTO—covered services satisfy the competition componentofthe public
interest analysis, The Commission concluded that the market access commitments made under
the WTO Basic Telecom Agreement will help ensure the presence and advancement of
competition in the satellte services market and yield the benefitsof a competitive marketplace to
consumers in the United States and other countries." In contrast,the Commission conducts an
"ECO—Sat" analysis for non—U.S.—licensed space stations licensed by countries that are not WTO
members. Under this analysis, applicants secking to access a foreign space station must
demonstrate that U..—licensed space stations have effective competitive opportunities to provide
analogous services in the country in which the space station is licensed (*home" market) and in
all countries in which communications with the U.S. earth station will originate or terminate
("route" markets)."
     7.    The Bureau has previously found that the Kingdom ofTonga, which is not a
WTO member, provides effective competitive opportunities for U.S.—licensed space stations to
provide FSS in Tonga.": We also found that all the proposed route markets were WTO—member
countries and therefore entitled to the presumption that service to these countries would promote
competition." Consequently, we find that allowing the Kapolei earth station to transmit to
Telstar 18 in the extended C—band FSS band to provide service to previously authorized route
markets will promote competition in the United States
        8       We must, however, conduct an ECO—Sat analysis with respect to Loral‘s request
to add Kazakhstan, a non—WTO member nation,as a "route" market, in accordance with Section
25.137(a)ofthe Commission‘s rules." Loralstates that Kazakhstan maintains an "open skies"
policy®"under which it has authorized U.S.—licensed FSS space stations to provide service to
Kazakhstan." Specifically, Loralstates that Kazakhstan has authorized space stations in the
" DISCO 11 Order, 12 ECC Red at 24104, par. 25
" td ar24112, pan 39
"arore g2si30)
" See LoralTeltar 18 Order, 20 ECC Red t 11859, pars. 9
51ttsatelftiHcensed by non—WTO member, we must conductan ECO—Sat analysis for each ‘route" market
thatis not a WTO.member nation. 47 CER. § 25.137(@)
har or® gas.ion®)
* The plvase "open skies"policy genenalyrefrst a policy in which a country atempts to accommodatethe
maximum number ofsyems possileto providea paicularservicein orderto maximize ntryand compertion in
it satelit srvice matket, See 2002 nterational Bureau Biennial Review StaffReport, 18 FCC Red 4196,4199
pars. 6 (2002)
"Lorl Application at Attichment A


                                 Federal Communications Commission                             paoe—s25

Intelsatfleet and Loral‘s Telstar 12 satellit to provide FSS to Kazalchstan."" Moreover,
according to Loral, Kazalthstan adopted new telecommunications legislation in 2004 which is
intended to provide communications service providers with equal access to the country‘s
telecommunications network, and which, among other things, ntroduced universal services to
conform the country‘s practices to those in other countries, and abolished the exclusive authority
of the country‘s state—owned telecommunications company, Kazakhtelecom.®" No commenters
refuted these assertions

        9.      We conclude that Loral has demonstrated that U.—licensed space stations have
effective competitive opportunites to provide FSS in Kazalchstan. Accordingly, we find that
allowing Loral to add Kazakhstan as a route market for FSS, excluding DTH, fom its Kapolei
earth station via the Telstar 18 satellte will enhance competition for these services in the U.S.
market,including the U.S. Pacific Territories.
        C.—     Eligibility Requirements
         a.      Legal Qualifications
        10.     In the DISCO If Order, the Commission stated that it would require non—U.S.
space station operators to meet the same technical, legal, and financial qualifications that U
licensed space station operators must meet to obtain a license.®" In the Loral Telstar 18 Order,
we found Lorallegally qualified to provide service in the United States. Nothing in the record
here suggests that we change this conclusion.
         b.      Technical Qualifications
        11. The Commission‘s satellite licensing policy is predicated upon two—degree orbital
spacing between geostationary satelite." This policy permitsthe maximum use ofthe
geostationarysatellite orbit."" All space stations, including non—U.S. satellites secking to serve
the U.S. market, must comply with the Commission‘s technical requirements designed to permit
two—degree orbital spacing before being authorized to provide service in the United States."" The
Commission may license satellits that are not two—degrecompliant (or earth stations seeking to
5y
y
7 14 at 24161—63, pars. 154—59
* See 47 CR §25.140; Licensing of Space Sutions in he Domesti Fied.Satelite Service and Relaed
Revisions of Part 25 ofhe Rules and Regubtions, Report and Order, CC Docket No.$1—704, FCC 83—184, 54 Rad
Re. 2d 577 (1983); sunmary prived in Licensing Space Sutions in the Domestic Fixed—SatllteSevice48 FR.
«ons (ross)
* see Assignment ofOrbtal Locatios o Space Sutions n the Domestc ixedSatelite Servie, Order and
Authrization, 11 ECC Red 13788, 13790, para 6(1996). Prioto the Commission‘s adoprionofhe two—degree
spacing polic,stelits in the reostionary stelit orit were ustallyspaced tree orfour degrecs apart. By
adepting ies that erabled stelite operstrsto place thei pace sutions two degrees spa, the Commisson was
abl taccommodate more geostationary stelites.
"* See Amendment ohe Commission‘s Space Station Licensing Rulesand Polies, First Reportand Order and
Further Notice ofProposed Rulemaking, 18 ECC Red 10760, ra 300 (2003).


                                Federal Communications Commisston                          paoc—s2s

access such),but only when the applicants can demonstrate that their operations will not cause
harmfulinterference to existing compliant satellite operations. Further, non—conforming
operations are authorized conditioned upon a licensee accommodating fiture satellite networks
serving the United States that are two—degree compliant.
         12     Based on our review of the technical information Loral submitted, we conclude
that the Telstar 18 extended C—band operations comply with all applicable technical rules

         s      Financial     Qualifications
        13. In the First Space Station Reform Order, the Commission climinated the financial
requirements then in place and replaced them with a bond requirement.®" In accordance with this
requirement, any entity awarded a license for a satellte must execute a payment bond, payable to
the U.S. Treasury, within 30 days of the date ofthe license grant." This requirementis intended
to ensure that licensees are financially able and committed to implementing their systems in a
timely manner. The bond is payable upon failure to meet any of the implementation milestones
included in every license.   Once the licensee meets the last milestone, thatis, it launches the
satellte, it no longer has any bond obligation. This requirement applies to both U.S—licensed
space stations and space stations licensed by other countries that seek to serve the U.S. market."
Because Telstar 18 is in—orbit and operating, Loral is not required to post a bond.
        D.      Spectrum Availability
        14.     In the DISCO If Order, the Commission determined that, given the scarcity of
seostationary—satellite orbit locations and spectrum resources, it would consider spectrum
availability as a factor in determining whether to allow a foreign satellite to serve the United
States." Specifically, the Commission stated that when grant of access would create interference
with U.S—licensed systems, the Commission may impose technical constraints on the foreign
space station‘s operations in the United States or, when the interference cannot be remedied,
deny access."
       15.     The Telstar 18 satellte currently provides service to the United States from the
138° E.L. orbital locationin the conventional C:—band." In its modification request, Loral seeks
authority to provide service to the United States via the Telstar 18 satellite using the extended C
band frequencies."" There are no other space stations authorized to serve the United States

" see Amendment ohe Commission‘s Space Station Licensing Rulesand Polics, Pist Report and Order ard
Further Notic ofProposed Rulemaking, 18 ECC Red 10760, 10526,Pra, 170 2003)(*FirstSpace Staion Reform
Orter")
® seear CR 525165
* First Space Station Reform Ordeat 10875, pra. 309.
"* DISCO 11 Order t 24159,paa. 150
io
* See LoralTessur 18 Order
" Lorl Applicationat 10.


                                 Federal Communications Commission                              paoc—s2s

operating in the extended C—band that are located within two degrees of the Telstar 18 satellite
Loral has supplied an interference analysis demonstrating that the Telstar 18 satellite is
compatible with the Commission‘s two—degree spacing environment in the extended C—band."
Consequently, allowing the Telstar 18 satellite to serve the United States from the 138° EL.
orbitallocation in the extended C:—bands will not affect operations of any U.S.—licensed space
stations in the extended C—band or contravenc the Commission‘s spectrum management policies.
In addition, as i all other orders permitting non—U.S—licensed space stations to serve the United
States, we requireall communications between earth stations in the United States and Telstar 18
in the extended C—bands to comply with all satellte coordinations reached by Tonga,
Kazakhstan, and other administrations.
        E.      Other Requirements
        16. As deseribed above, in accordance with the DISCO 17 Order, national security,
law enforcement, foreign policy, and trade concerns are included in the public interest analysis:
There is nothing in Loral‘s application that raises any such concems
        17      Orbital Debris Mitigation.      We note that, on November 18, 2005, Loral filed an
amendment to provide an Orbital Debris Mitigation Plan for Telstar 18." We conclude that the
plan presented by Loral for the Telstar 18 spacecraft demonstrates thatits operation raises no
public interest concerns related to orbital debris.""
Iv,     CONCLUSION
        18.     Based on the foregoing analysis, we conclude that Loral‘s proposed
communications with the Telstar 18 satellite will be consistent with the Commission‘s rules and
policies regarding U.S. access to space stations licensed by forcign administrations. We also
conclude that Loral has demonstrated that U.S—licensed space stations have effective
competitive opportunities o provide FSS in Kazakhstan. We therefore grant Loral‘s application,
subject to the conditions set forth in this Order, finding such grant to be in the pubc interest.
v.      ORDERING CLAUSES
        19. Accordingly, TT IS ORDERED that,pursuant to Sections 303(), 308, 309, and
310 ofthe Communications Act of 1934, as amended, 47 C.F.R. §§ 303(), 308, 309, 310, and
Sections 25.115 and 25.121 (a) ofthe Commission‘s rules, 47 C.F.R. §§ 25.115 and 25.121 (a),
the Appliation for Authority to Add Extended C:—band Frequencies and to Add Kazakhstan as
Destination Point of Communications for Transmissions from Loral‘s Fixed Earth Station in

* LoralApplication at Atachment C
" DISCO II Order t 24170—72, pans. 17642
* 1mes File No. SES—AMD—20051118—01503
* Allapplcatios that wer pending as ofOctober 19, 2005 and weresubject o thinformation requirements of
Section 25.1 14 o the Commission‘s mules were requiredto filan Orbial Debris Mitgation Disclosire Plan by
November 18,2005. See Intemational Bureau Satelte DivisionIformation, Diclosure ofOrbial Debris
Mitition Plin, Including Amendment of nding Applications, Publc Notie, DA 08—2608 (rl. Oct 13, 2005)


                                  Federal Communications Commission                                 paoc—s2s

Kapolci, Hawail, File No. SES—MFS—20050831—01198, 1S GRANTED.®

        20.      Accordingly, the license for Earth Station Call Sign E980250 1S MODIFIED to
permit Loral Skynet Network Services, Inc. (Debtor—in—Possession)to provide fixed—satellite
services using the Telstar 18 satellite located atthe 138° EL. orbital location in the extended C—
bands (6425—6650 MHz) and to provide fixed.satellite services to Kazakhstan via the Telstar 18
satellte, subject to the following conditions:
        a.      Loral is prohibited from sending or receiving any Direct—to—Home service, Direct
                Broadeast Satellite service, and Digital Audio Radio service to or from Telstar 18.
                Loral is only authorized to provide communication services to points in Tonga,
                 Kazalkhstan, or WTO—Member countries within Telstar 18‘ footprint

                 Loral is prohibited from sending or receiving analog video services or any FM
                 video television services to or from Telstar 18.
                 With reference to Article 18 ofthe ITU Radio Regulations, the United States is
                 not the "government ofthe country to which" the space station "issubject," and is
                 not acting on behalFof any other government. Operations of Earth Station Call
                 Sign E980250 are expressly conditioned upon Teltar 18 having been licensed,
                 within the meaning of Article 18, by the Kingdom of Tonga.
                 Loral is afforded 30 days from the date of release of this grant and authorization
                 to decline this authorization, as conditioned. Failure to respond within this period
                 will constitute formal acceptance of the authorization, as conditioned:

                 All other terms and conditions of the license for Earth Station Call Sign E980250
                 remain in effect




                                                   FEDERAL COMMUNICATIONS COMMISSION


                                                     /f/\——\

                                                   Robert G. Nelson
                                                   Chict, Satellite Division
                                                   Intemational Bureau



© Consistent with Satelfte Division(Divsion)prctce,contemporancously with threlease of this Order, the
Division‘s Sstems Analyss Branch willisue an authorizationon IBFS Fle No. SES—MFS—20050831—01198,
incorporatig this Ordebyreference and liting thestandard conditions that will applyto operation ofthisficiity



Document Created: 2006-02-09 16:30:49
Document Modified: 2006-02-09 16:30:49

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