Attachment Milestone

Milestone

LETTER submitted by WB Holdings 1, LLC

Milestone

2006-10-25

This document pretains to SES-MFS-20060811-01347 for Modification w/ Foreign Satellite (earth station) on a Satellite Earth Station filing.

IBFS_SESMFS2006081101347_534401

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                                            «i Bureau

                                          October 25, 2006

                                                                    FILED/ACCEPTED
  BV HAND DELIVERY
                                                                        OCT 2 5 2006
  Marlene H. Dortch
  Secretary
  Federal Communications Cot
  445 Twelfth Street, S.W.
  Washington, DC 20554
          Re:     WB Holdings         LLC Milestone Showing and Waiver Request
                  SES—MFS—200         811—01347 (E0s0033)

  Dear Ms. Dortch:

          As part of the modific      on granted earlier today of the above referenced blanket
  earth station authorization} thel    ‘ommission imposed a condition ied to progress toward
  the construction and launch of       ie WildBlue—1 satellite ("WB—1"). This condition
  requires the posting of a perfor     ance bond by November 24, 2006.
           As the earth station lie   see, WB Holdings 1, LLC (*WBH),has informed the
  Commission,this satellite is        y constructed and will be shipped to the Arianespace
  facility in Kourou, French Gui        a during the first week of November. Launch is
  scheduled for December 8, 20         . Of necessity, hree ofthe four milestones have been
  achieved and the final miléstor       —leunch and operation — is scheduled to occur just two
  weeks after the bond to asjure      erformance is scheduled to be posted.
         Attached to this Whive       iRequest is documentation to demonstrate satisfaction of
 the contract execution, Critical       esign Review (°CDR"), and commencement of physical
 construction milestones. Acco          ingly, WBH requests that the Commission make a
 determination that these milest      incsfor this satellite have been satisfied and that posting
 of the bond with respect to th         milestones is not required.
         In addition,in light of t k evidence submitted herewith that the satellite is flly
 constructed, preparing for bhi ent, and proceeding along a campaign toward a
 scheduled December 8 launich, BH also requests that the Commission waive the
 requirement that WBH post a          rformance bond with respectto the launch and operate


     Hawus, Wirtsume & Gitw            ue
     Marlene H. Dortch
     October 25, 2006
     Page2 o4
     milestone. To the extent heo     ary, WBH also requests that the Commission waive the
     requirement that it post a per     ance bond with respect to any of these four milestones
  while this application is pend g, and that such a ruling be issued on an expedited basis in
  advance ofthe November 24           i date for posting the bond.
                                 «

             Earlier today, the Co
     authorizes WBH to deploy sit
     authorization requires WBH demonstrate with respect to WB—1 that (1) a binding
     construction contract has beei xecuted by October 10, 2007,(2) the CDR has been
     completed by October 10} 20 . (3) physical construction has commenced by October 10,
     2009,and (4) launch and bp ion has been accomplished by October 10, 2011. As the
     attached materials show, WBI has already completed the frst three of these milestones
     well in advance ofthe establi ied deadlines and the final milestone will be completed in
     a matter of weeks.


     Specifically, attached hergto

        + A copy of a Public Nof lcdated June 18, 2002 confirming the Commission‘s
          prior finding that the hnstruction commencement milestone for WB—1 — defined
          as execution of a satis etory construction contract —has been satisfied. See
            Public Notice, Rep. N     SPB—179, 17 FCC Red. 11271 (Int‘l Bur, 2002).

        *   The Declaration of K.     Bhat, Executive Director of the WB—1 Program at Space
            Systems/Loral, confi      ing that the construction contract remains in effect, CDR
            has been completal, p sieal construction ofthe satellite has been completed, and
            the satellite is being p ared for shipment on November 2, 2006 to the
            Arianespace launch fa lity in Kourou, French Guiana for a scheduled December
            8, 2006 launch.

        + A letter from Chrigtopt Bardou, Arianespace‘s Program Director for WB—1,
          confirming that Ation pace has begun the launch campaign for WB—1 to support
          a scheduled launch on Ariane ECA rocket on December 8, 2006
Collectively, these materials          ionstrate that the WB—1 milestone obligations have been
satisfied with respect to contr ting, CDR, and commencement (not to mention
completion) of physical consi ction. WBH respectfully requests that the Commission
review the attached materials d enter a finding that thfirst three milestones set forth in
the blanket earth station abthot zation have been satisfied.



+.      See Public Notic, Rep. NQ.SB coser (Oct 25, 2009)


Bs Wicrsume & Gi
Marlene H. Dortch
October 25, 2006
Page 3 ofd
       In addition, given          BH is required to post a performance bond of $3 million
by November 24, 2006 t            e compliance with three milestones that have already been
achieved and a fourth that          expects will be satisfied within two weeks thereafter,
WBH submits that a wai           the bond requirement would also be appropriate.
       The Commission             ive itsrules where there is good cause to do so, as in
cases where specialcire          ces warrant a deviation from the general rale and such
deviation would bettes           i public interest than would striet adherence to the general
rule." WBH presents just          a case here. As the Commission stated when it adopted
the milestone requirement        }ilestones are intended to ensure that licensees provide
service to the public in a        manner, to prevent warchousing of scarce orbit and
spectrum resources."" Sit        y, the Commission adopted a performance bond
requirement in the exp           that, "(bly requiring satellte licensees to make a financial
commitment to construct           unch their satelites, we help deter speculative satelite
applications, and help ex        provision of service to the public."*
         Given that the W     rellite is fully constructed and scheduled to be launched
imminently, there is no n      enforce a performance bond requirementto deter
speculation or ensure tim        of valuable orbitalspectrum resources. There simply is
no danger that cither of tese ncems will come to pass,and thus a waiver would in no
way undercut the purpos ofi k rule. On the other hand, WBH would incur considerable
transaction costs to secur an   ost a bond — a significant hardship for a start—up
company. In these clxcullL'st  es,  the public interest would be better served by waiving
the bond requirement rat          strietly adhering to a rule whose purpose has already
been achieved.

         For the foregoing        s, WBH respectfully requests that the Commission (1)
find that the contracting,       and commence construction milestones for WB—1 have
been satisied, and (2) wal       ie performance bond requirement for good cause shown.
To the extent necessary,         also requests that the Commission issue an expedited
waiver ofthe bond requirg          for so long as this application is pending, so as t avoid
even an arguable technic          ult under the license for failure to post bond by November
24, 2006.



50   Seed7 CBR $ 13; Nort es ellaarTelphone Co. v.FCC, 97 Fad 1166 (D.C. Cir, 1990); Wat
     Redov FCC,418 Ead 1 s C. C1969); Telesat Canada, 17 FCC Red. 25287, 25292 and n 36
     (IntBur.2002)(ctng c «o
     See Anendnentofthe Co mis n‘ Space Staton Licensing Rules and Polices, 18 CC Red. 10760,
     roser 2002
ts


Hams, Wiursuiee & Gi           ue
Marlene H. Dortch
October 25, 2006
Paged of4
       If you have any qbéstijns, please do not hesitate to contact undersigned counsel.
                                            Sincerely yours,


                                            William M. Wiltshire
                                            Counselfor WB Holdings 1, LC

Enclosures

ces    Robert Nelson
       Andrea Kelly
       Scott Kotler


$
                                                                             FILED/AccEPTEp
                                                "                               ocT 2 6 2006
                                                                            FitenlOonvencatesComniin
                                                                                 OlecteSacnay
                                                WitpBive
          RECEIVED                                                                        David M. Brom
                                                                Sonir Viee Prosident and Gonaral Counsol
            NoV 0 2 2006                                                            Drect reoss¢—rant
            Satelite Dvision                                                   dbroun@widluecors.com
          InternatonalBureas

                                             October 26, 2006


    BY HAND DELIVERY

    Marlene H. Dortch
    Secrctary
    Federal Communications
    445 Twelfth Street, S.W.
    Washington, DC 20554
           Re:—     WB Holdit            LLC Milestone Showing and Waiver Request
                    SES—MES              s11—01347 (eosoo23)
    Dear Ms. Dortch:

           On October 25, 2 06,           WB Holdings 1, LLC ("WBH) filed a milestone showing
    and request for waiver off the       ferformance bond requirement in connection with the above
    referenced authorization. As          @videnced by a declaration from Space Systems/Loral
    (°SSL") attached to that Hing]       Critical Design Review ("CDR") of the WildBlue—1
    spacecraft was successfull            pleted on July 25, 2000, and all construction is now
    complete.
           In further support            t fling, WBH hereby certifiesthat the WildBlue—1
    spacecraft constructed byi           upon which it conducted the CDR, was designed to
    operate with the paramet              mitted in WBH‘s modification application in the above
    referenced proceeding.
                                                      Sincerely yours,

                                                       Qamazt M. Rawy!
                                                      David M. Brown                  Smd
                                                      Senior Vice President and General Counsel
                                                      WildBlue Communications, Inc.
                  5070 Green     Plika    Boutevart, Sute 300 Greennood Vilage, C0 80t11
                                  Pij reosse—7400 raxc rzosse—rs00


 F€ PUBLIC                                    NOTICE
  Federal Communications                Gommission
 445 12th St. S.W.    |                                                Nes Mecia informaton 2o2 tsos00
                                                                               intemet htp hn tsogor
 Washington, D.C. 20558                                                               mevassassie
                                       al Bureau Satelite Division Information:
                      First Roud       Band Licensee Compliance with Construction
                                         Implementation Milestone
                                           Report No: SPB—179
                                               pa: or142
                                              June 18, 2002
         In May 1997,te Interdatioght Buresu lcensed 13 applicans to Iunch and operte stelite
systems that would provide Axédsafilit serviein portions of the Ka—band. Theseauthoriztions were
grantedas partof the first Ka—band ffocessing round. n December 2000 and January 2001, the Bureau
modifiedthfrstround authorieaiags of eight geostationary satellte orbit (GSO) and one non—
geostationiry satelt orbit (NGSO)Ratelitesystems. The modifications included the assignment of
implementation milestones for the egnstruction, Ininch, and opertion of the satelit systems. The
Hicenses providethatfalureto neetfny ofthe implementation milestoneswill render the satellite
authoriztions mulland void. The Figg implementation milestone requires GS0 licensees to beain
construction of heir s stelite wifhin one year ofthe granto ts authoriation, and NGSO licenseesto
begin construction ohefstto sifelits in its constelation within one year ofgrant, To determine
whether the eensees have compliedwith he construction commencementmilestone, the Buresu
requested tat ach licensee submit executed copy ofits construction contrct, verfying that
constriction has commenced aid thijthe satelite(s) willbe bilt within the time frame specifed n the
license. Upon review oftheic submited, the Bureau concludes thatthefllowing Ka—band
licensees have satisied thir cohstrigtion commencement milestones
CyberStar Licensee LLC
File Nos. 109—SAT—PLA—95; 102/10}—SAT—AMEND—9; 103/1047105—SAT—ML—98
‘ Motorola,In.hasrequeted an dten       n of the construction commencement mlestone, File No SAT—MOD—
2002131—00012. Thi appleation fope     ing. T a separiteorde elased on th bove dat, the Diviin grans
Astolink IntemationalLLC a waite o     is implementation milestonc. See Astolik Intematonal LLC,
Memorancim Opinion ond Order|DA         —1431 (rl. June 18,2002) EchoStarStelte Corporation reconly
scbmitedaddtionalinformaton i            q t it constrction contrct prsuant o he Plcy Branch‘s request
"Thisinfomation is beingreviewed and   deternination egarting EchoStr‘ compliance with ts constrction
commencement milestone wilbe made      horly.


Hughes Network Systems®
IBFSFile Nos. SAT—LOA—1994120 coosoi; sAT—LOA—19950029—00125(00129;
sar—Loa—10950023—00137
Loral CyberStar,Inc.
File Nos, 205/206—SAT—AMEND—9      sa—AMD—199s0020.001s7158
PanAmSat Licnsee Inc.
IBFS Nos. SAT—LOA—19950020—008 oi31; sar—Loa—19950029—00204/00208
Teledesic LLC
File Nos. 22—D58—90.A.94, .946 evp.0s; 1samaicor
WB Holdings LLC
File Nos. 128—SAT—P/LA—95; 203—8


For further information cantactVenalferGisenan at 202—418—0757 or Femm Jarmulnck at202—418—0751 in
the Satllte Division:




* The origina fcensee was Hughed Contunications Galny.In April 2002theSatlite Diviionarantd proorma
assignments fom Hughes Commubieatifns Galaxy o Hughes Network Systms. See Loters to James . Barker,
Counselfor Hughes Communiatins GBay from Fem J Jarmulnck, Deputy Chict, Satlite Diviion,(Apil 23,
2002)(File Now. SAT—ASG—2001120% 0110 and 00109)
                                                2


 LORAL
 avas tabanway
 Pae Ate,ca esns
 WildBlue Program |

                                                  DECLARATION

1, KP. Bhat,certify on behall f Space Systems/Loral, Ic. (‘SSL"), as follows:

    1.   The WildBlue—1            spac   raflCritical Design Review was successfully completed on July
         25, 2000
    2. The contract between               SL and WildBlue Communications, Inc. for the WildBlue—1
         Satellite Program} as             ended and restated from time to ime, including most recently on
         May 15, 2005 redjun              i effect. SSL has received payment for construction of WildBlue—1
         for all amounts trou,            October 24, 2006, and these payments cumulatively represent
         approximately 89% 0f              i total price forthe construction of the satellte.
                               |
   3.    Construction ofle                dBluc—1 satellt is complete. It wil be shipped to the Arianespace
         Jaunch facility in Ko            u, French Guiana on November 2, 2006 and is scheduled for
         launch on December
                           [
                                          2006.
   4.. The attached photp                 in shows the fully assembled WildBlue—1 spacecraft



                                                                       MzA
                                                                       K.P. Bhat
                                                                       Executive Director
                                                                       WildBlue—1 Program
                                                                       Space Systems/Loral
Dated : October 25, 200¢




                                    a réé&pa/ce


                                                 Mr3im ELLIOT
                                                 VP, Infrastructure
                                                 WILDBLUE Communications, Inc.
                                                 5970 Greenwood Ploza Slvc.
                                                 Sue 300
                                                 ereenwoon vitiace, co sor11
                                                 usa
                                                 Evry—Courcouronnes, October, 24" 2006
                                                 net rszocisc . os—248 CtWeal



                Dear i ELLIOT
                Artanespace |hert y confirms that the Arlane 5 ECA L534 leunch preparation
                compaign begine teday (Dctober 249, 2006) in order to support a launch of
                Wildblue 1 0      mber 8, 2006.
                Do not hesitite   contact the undersigned if needed.
                Yours Sincert




                                                                 42
                                                              Christophe BARDOU
                                                        Program Director for WILOBLUE 1




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Document Created: 2006-11-06 15:51:59
Document Modified: 2006-11-06 15:51:59

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