Attachment Comments

Comments

COMMENT submitted by Mobile Satellite Ventures Subsidiary LLC

Comments

2007-01-22

This document pretains to SES-STA-20070110-00053 for Special Temporal Authority on a Satellite Earth Station filing.

IBFS_SESSTA2007011000053_547879

       RECEIVED
          JAN 2 9
          Satelite Diision                      Before the
         Intornatonal Bureau Fed*"’»&::‘:;:t‘fij’gffi‘;;‘“""‘"'                  FILED/ACCEPTED
 In the matter of                                                                   JAN 2 2 2007
                                                                              Futen Conmercats onmisn
 Application of Telenor ASA,                    1B Docket No. 06—225               Sheabefestin
 Transferor, and Inceptum 1 AC,
 Transferee, for FCC Consent to
 Transfer Control of Licenses and
 Authorizations

 Telenor Satellite,Inc.                         File No. SES—8TA—20070110—00053 (Call Sign EO50276)
 Application for Special Temporary
 Authority to Operate 5000 BGAN
 Terminals with Inmarsat 4F2 at
 s2rsew
ETMsc U8, L.C                                   File No. SES—STA—20061218—02196 (Call Sign EOS0284)
Application for Special Temporary
Authority to Operate 5000 BGAN
Terminals with Inmorsat 4F2 at
s2rsew
Telenor Satelite, Inc.                          File No. SES—LES—20050930—01352 (Call Sign EO50276)
Application for Title III Blanket License       File No. SES—AMD—20051111—01564 (Call Sign BO50276)
to Operate 25,000 BGAN Terminals
with Inmarsat 4F2 at 52.75°W
FIMSC US, LLC                               File No. SES—LFS—20051011—01396 (Call Sign EOS0284)
Application for Title III Blanket License ) File No. SES—AMD—20051118—01602 (Call Sign EO50284)
to Operate 25,000 BGAN Terminals          )
with Inmarsat 42 at 52.75°W                 )
        COMMENTS OF MOBILE SATELLITE VENTURES SUBSIDIARY LLC

       In acting on the above—referenced transfer of control application, Mobile Satellite
Ventures Subsidiary LLC (‘MSV") urges the Commission to imit the aggregate number of
Broadband Global Area Network ("BGAN) terminals authorized to Telenor Satellite Inc.
(‘Telenor") and FTMSC US, LLC (*FTMSC") under Special Temporary Authority ("STA") to
no more than the 5000 terminals currently authorized. Indeed, all the evidence indicates that
even 5000 terminals is far more than can be justified based on actual demand and serves to


reduce the need of Inmarsat Ventures Ltd. (‘Inmarsat") to comply with requirements for prior
coordination of its new satellites, thus putting at risk MSV and its customers. The condition

requested will help to reduce the potential for harmful interference to MSV and its customers

resulting from the failure of Inmarsatto coordinate is Inmarsat 4F2 satellte.

                                          Background
       MST. MSV is the entity authorized by the Commission in 1989 to construct, launch, and

operate a United States Mobile Satellite Service (°MSS") system in the L band.\ MSV‘s
Hicensed satellite (AMSC—1) was lunched in 1995, and MSV began offering service in 1996.

MSV is also the successor to TMI Communications and Company, Limited Partership ("TMI®)
with respect to TMT‘s provision of L band MSS in the United States. Today, MSV offers a full

range ofsatelite services, including voice and data,using both its own U.S.—licensed satellite and
the Canadian—licensed L band satellit licensed to Mobile Satellte Ventures (Canada) Inc.

(‘MSV Canada®), In May 2005, the Bureau licensed MSV to Iaunch and operate a replacement

L band MSS satellite at 101°WIL (called "MSV—1")."

       BGAN $T4s. Beginning in August 2005, seven entities, including Telenor and FTMSC,

filed applications for long—term TitleII authority to operate 25,000 BGAN terminals each in the

United States with the uncoordinated Inmarsat—4 satellite located at 52.75°W (called "Inmarsat

4F2")MSV has opposed these applications because ofthe interference that will likely result


* Order and Authorization, 4 CC Red 6041 (1989); remanded by Aeronautical Radio, Inc. v
FCC, 928 F.2d 428 (D.C. Cir. 1991); FinalDecision on Remand, 7 ECC Red 266 (1992); af‘d,
Aeronautical Radio,Inc. v. FCC, 983 F.2d 275 (D.C. Cir.1993); see also AMSC Subsidiary
Corporation, Memorandum Opinion and Order, 8 ECC Red 4040 (1993).
* See Mobile Satellite Ventures Subsidiary LLC, Order and Authorization, DA 05—1492 (May 23,
2008) (*MSV—1 Order").
* See Telenor Satellte, nc., Application for TitleIII Blanket License, File No. SES—LES—
20050930—01352 (September 30, 2005); Telenor Satellit, Inc., Amendment, File No. SES—


both to MSV and to Inmarsat from operation of this satelliand these terminals prior to a

coordination agreement among the North American L band operators. The interference will
result from () use of Inmarsat 4F2 to operate on the loaned frequencies Inmarsat has refused to
return;" (i) the technically different parameters of Inmarsat‘s new satellite and services relative
to the satellites and services it has coordinated previously, such as the use ofwideband carriers,
higher aggregate EIRP, and increase in number of co—channel reuse beams;" and (ii) Inmarsat‘s
laim that it is entiled to operate on each and every frequency in the L band."
       The Bureau has not acted on these applications. Beginning in May 2006, the Bureau has
granted six STA requests,including to Telenor and FTMSC, to operate 5000 BGAN terminals
each while the Bureau considers the pending applications for long—term authority." The Bureau
granted the BGAN STAs subject to a number of very important and appropriate conditions that

AMD—20051111—01564 (November 11, 2005); FTMSC US, LLC, Application for Title III
Blanket License, File No. SES—LES—20051011—01396 (October 11, 2003); FTMSC US, LLC,
Amendment, File No. SES—AMD—20081 118—01602 (November 18, 2005).
* See Mobile Satellite Ventures Subsidiary LLC, Petition to Hold in Abeyance, File No. SES—
MEFS—20051123—01634 (January 13, 2006) (MSF Periion‘), t 11—12; Mobile Satellite Ventures
Subsidiary LLC, Reply, File No. SES—MFS—20051 123—01634 (February 7, 2006) ("MSYReply®),
at 2—7. MSV hereby incorporates by reference these flings in this proceeding regarding the
Telenor transfer of control application.
* See MSV Petition at 13—17; MSV Reply at 7—13.
* See MSV Petition at 17; MSV Reply at 13—14.
" See Telenor Satelite Inc., Application for Special Temporary Authority to Operate BGAN
Terminals with Inmarsat 4F2, File No. SES—STA—20060313—00430 (Call Sign ©050276) (granted
with conditions on May 12, 2006); FTMSC US LLC, Application for Special Temporary
Authority to Operate BGAN Terminals with Inmarsat 4F2, File No. SES—3TA—20060314—00438
(Call Sign EOS0284) (granted with conditions on May 12, 2006). On October 24, 2006, the
Bureau issued FTMSC a new STA to reflect is new ownership. See FTMSC US LLC,
Application for Special Temporary Authority to Operate BGAN Terminals with Inmarsat 4E2,
File No. SES—STA—20061006—01820 (Call Sign EOS0284) (granted October 24, 2006). An
additional entity has an application pending for an STA to operate 5000 BGAN terminals. See
Horizon Mobile Communications, Inc., Application for Special Temporary Authority to Operate
BGAN Terminals with Inmarsat 4F2, File No. SES—STA—200701 12—001 12 (Call Sign ©070006)
(January 12, 2007).


 are essential to help mitigate the harmful interference to MSV‘s customers from Inmarsar‘s
 uncoordinated BGAN operations."
        Telenor Transfer ofControl Application. On November 29, 2006, Telenor and Inceptum
 filed the above—referenced application to transfer Telenor‘s Commission authorizations to
 Inceptum. Inceptum is owned by three entiies: Apax France VI FCPR ("Apax France"),
 Amboise Investissement SCA ("Amboise"), and Altamir & Cie SCA ("Altamir"). The
 applicants explain that these three entities also own MobSat S.A.5., which owns FTMSC, in he
 same proportions and on the same terms as their ownership of Inceptum. Application at 7—8.
 Thus, as the applicants note,this transaction "will bring [Telenor] under common ultimate
ownership and control with FTMSC." 14. at 12. The applicants further acknowledge that both
Telenor and FTMSC hold STAs to operate BGAN terminals in the United States. . at 14.
                                           Discussion
        MSV urges the Commission to limit the ageregate number of BGAN terminals
authorized to Telenor and FTMSC under STA to no more than 5000." Because Telenor and
FTMSC will be commonly owned and controlled following consummation of the transfer, there


* MSV has asked the Bureau to clarify these conditions as well as to adopt additional conditions.
See, e.., Mobile Satellte Ventures Subsidiary LLC, Petition for Clarification, File No. SES—
STA—20060310—00419 et al (June 12, 2006) (attaching Letter from Ms. Jennifer A. Manner,
MSV, to Ms. Marlene H. Dortch, FCC, File No. SES—STA—20060310—00419 et al. (May26,
2006)); Comments of Mobile Satellite Ventures Subsidiary LLC, File No. SES—STA—20070110—
00053 (Call Sign E050276) (January 11, 2007); Comments of Mobile Satellte Ventures
Subsidiary LLC, File No. SES—STA—20061218—02196 (Call Sign EO50284) (December 20,
2006).
* As with all STAs, the BGAN STAs expressly contain a condition that the STA may be
modified at the Bureau‘s discretion at any time without a hearing. See Telenor Satellite Inc.,
Application for Special Temporary Authority to Operate BGAN Terminals with Inmarsat 4F2,
File No. SES—STA—20060313—00430 (Call Sign EO50276) (granted with conditions on May 12,
2006), at Condition No. 8; FTMSC US LLC, Application for Special Temporary Authority to
Operate BGAN Terminals with Inmarsat 4F2, File No. SES—STA—20060314—00438 (Call Sign:
£E050284) (granted with conditions on May 12, 2006), at Condition No. 8.


 is no basis to authorize the combined entity to operate double the number of terminals authorized
 to any other entity.""

        Limiting the number of BGAN terminals authorized to Telenor and FTMSC will serve
the publicinterest by mitigating interference to MSV and its customers. In granting the BGAN
STAs, the Bureau acknowledged the potential for interference resulting from operation ofthe
uncoordinated BGAN service with the uncoordinated Inmarsat 4F2 satelite by adopting certain
conditions. This interference potentialincreases with the authorization of each additional BGAN
terminal.
        Neither Telenor nor FTMSC can legitimately claim that they will be harmed ifthe
Commission limits them to a combined total of 5000 BGAN terminals under STA. In fact, given
the sluggish demand for BGAN service, Telenor and FTMSC cannot justify their need for
authority for even 5000 BGAN terminals, let alone 10,000. As Inmarsat recently revealed, only
roughly 5500 BGAN terminals have been activated worldwide in the past year."" Inmarsat has
further estimated only 400 new BGAN activations across all of is distributors worldwide per
month.". While Telenor and FTMSC have not revealed to the Commission the number of
BGAN terminals they have activated for use in the United States, it is safe to assume that teir

combined operations will not approach 5000 BGAN terminals for many years.

‘" The applicants state that the operations of Telenor and FTMSC may be combined in the future
and that Commission approval will be sought at that time. Application at 14 n.11. The
Commission need not wait until such a consolidation of operations occurs to adopt the condition
requested herein. The consolidation of the ownership and control of the two entities is sufficient
to justify limiting the combined entty to total of 5000 BGAN terminals under STA.
!" See Exhibit A, attaching excerpts from Inmarsat Group Limited‘s Form 6—K filed with the SEC
on November 15, 2006, available at
hitps//wwwsee.gov!Archives/edgar/data/1291398/0001 19312506235898/0001 1931 25—06—
235898—indexhtm
"* See Inmarsat Ventures Limited et al. Joint Reply, File No. SES—STA—20061027—01898 et al.
(November 22, 2006),at1.


        The authorization under existing STAs for far more BGAN terminals than Inmarsatand
its distributors need for the next several years serves only to deprive Inmarsat of any incentive to
satisfy its obligation to coordinate ts Inmarsat 4F2 satellte pursuant to the L band coordination
process. The potential for interference to MSV and its customers resulting from the
authorization of an excessive number of BGAN terminals and the ensuing impact on the L band
coordination process far outweighs any illusory benefit that Telenor and FTMSC may perceive
from obtaining authority to operate more BGAN terminals than they will need for many years to
come.
        While Telenor and FTMSC each have applications pending for long—term TitleII
authority to operate 25,000 BGAN terminals each, MSV sees no need for the Bureau to limit the
combined entity to 25,000 BGAN terminals, provided thar the Bureau grants these applications
only after L band coordination discussions are finalized and a coordination agreement is reached
that addresses MSV‘s interference concerns.


                                       Conclusion
       Based on the foregoing, the Commission should limit the aggregate number ofBGAN
terminals authorized to Telenor and FTMSC under STA to no more than 5000.
                                  Respectfully submitted,



E_1X
Bruce D. Jacobs
                                                —{afa
                                             /Accnifer A. Manner
David S. Konezal                             v|c= President, Regulatory Affairs
PILLSBURY WINTHROP                             MOBILE SATELLITE vENTURES
       SHAW PITTMAN LLP                               sUBSIDIARY LLC
2300 N Street, NW                              10802 Parkaidge Boulevard
Washington, DC 20037—1128                      Reston, Virginia 20191
(202) 663—3000                                 (703) 390—2700
Dated: January 22, 2007


Exhibit A


 romex
6—K 1 dékchim FORM 6K

Table of Contents


             SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549


                                         FORM 6—K


                        REPORT OF FOREIGN PRIVATEISSUER
                            Pursuant to Rule 130—16 or 150—16 of
                            the Securities Exchange Act of 1934
                                       September 30, 2006
                                          ass—isss5—06



                        Inmarsat Group Limited
                          (Enaet nameof Regitrant asapecifid in ts charter)

                        Inmarsat Group Limited
                            (ZrenslationofRegitran‘s name nto Eoglat)


                            ~———~— RnglandandWales———                         ommc
                             (Jurisletin orincorporation or organtzation)
                                     99 City Road, London
                                 United Kingdom, ECIY 1AX
                                (Address orincpateaecutveoffcc)
                                          sss—r1sBe5—06



                           Inmarsat Finance ple
                          (Esact mame of Registrant s apecifed in s charte)

aupthowen atAsivaedptenorostotiiresomesersasn ctoromiuatnos inis n


   Fomex


                                  Inmarsat Finance ple
                                   (Teanslation of Regitrents name nto Englst)


                                              England and Wates
                                   (Jurisictonotincorporatonor organization)
                                            99 City Road, London
                                        United Kingdom, ECIY 1AX
                                       (Address orincpal xecutveoficc)
                                                 sss—msscs


Indicate by check mak whether the Registrant filesor wl fle annual reports under cover Form 20—F or Form 40«
r.
                                            2ef ®          sor O
Indicate by check mark whether the Registant is submiting the Form 6—X in paper as permitted by Regulation S—
TRule 101@) (1)—
Indicate by check mark whether the Registant is sibmiting the Form 6—% in paper as permitted by Regulation S—
T Rule 1010) )
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is lso
thereby furnishing thinformation to the Commission pursuant to Rule 12g3—2(6)under the Securiies Exchange
Actof 1934.
                                             Yes O        No ®
If"¥es" is marked, indicte below the file mamber assigned to theregistnt in connection with Rule 12¢3—20b):
se




hhensepvitntveistpuitao iseotoriniasecsernusim cormintaons is Ale


 Tomex



Table of Contents

                               mmaRsaT GROUP LimiTED
                    conpENsED CoNsOLmATED FINANCHAL REsULTS
                           For the three and nine months ended
                                    September 30, 2006
                                        (unmudited)




hupeie aoucivaeteutonitiovort rtesomsernaem o oramitetaon in eas ns


   Fomex



 Table of Contents

                                                                                            AsstSeptember30,
                                                                                              z0e       _




 (1) Active erminals are the number ofsubscribers (BGAN and R—BGAN) or terminals that have been used to
      access services at ny time duringthe preceding twelve—month period (oter services except hand—held)
      registered at September 30. Active handheld terminals ar the average number ofterminals active on a daily
      basis during the period.
 (2) Activeterminals as at September 30, 2006 include 10,388 ACeS terminals and 5,547 BGAN subscribers(os| @
      at September 30, 2005; nil and nl, espectivey). The average daily active number ofhand—held SIM cards
    . was 14274.
 During the three months ended September 30, 2006, revenues from mobile sateite communication services were
 USS127.3 million, an increase ofUSS11.5 million, or 10%, compared with te three months ended
 September 30, 2008. Growth has been strong i ll sectors as aresult ofcontinued success in the newer services
 such as Fleet and Swit 64 and fllowing the Iunch ofBGAN in December 2005. The martime, land,
 seronauticl and leasing sectors accounted for 57%, 24%, 6% and 13% oftotal revenes from mobile satellte
 communieationserviees respectively during the three months ended September 30, 200. Active erminal
 numbers have increased by 12% between September 30, 2005 and September 30, 2006 through growth in the
 maritime and seronautical sectors lus the addition ofACeS hand—held terminals in September 2006.
Maritime Sector. Duringthe thiee months ended September 30, 2006, revenues from the maritime sector were US
$72.6 million, anincrease ofUSS.5 million, o89%, compared with the three months ended September 30, 2005.
This principally relects an increas in dat revences.
Revenues from data services in he maritime sector during the three months ended September 30, 2006 were US
$47.1 million, an increase ofUS94.6 million, or 11%, compared with the three months ended September 30,
2005. The nctease in revenues from data services relects greater demand, as a result ofthe continued take—up
and strong usage of our Flet services. Demand for Plct terminals hasalso been driven by growth in the global
shipping flest new—build market
Revenves from voiceservices in the maritime sector during the three months ended September 30, 200 were US
$25.5 million, an increase ofUSS0.9 million or 496 compared with th three months ended September 30, 005.
Hlistorieally our voice revenues for the martime sector have been affected by the migration ofusersfrom our
higherpriced analogue service to o lower—priced digital services and to a lesser extent by competition. This has
been more than offset by growth in both our newer Fleet service and various promotions we have intated to
respond toincreased competition in cetain ofour established services.
 hepibn esoativeetputarr3)itntirasomstoncam t orimiatan in ies


   roosa



 Table of Contents

 Revenesfrom BGAN services during the nine months ended September 30, 2006 are set ut i the table below.
 Thesefigures include voice, data and subscription revenues. As at September 30, 2006 there were 5,547 active
 BOAN subscribers.
                                                                 Three monthsended              Nivemonths ended
                                                       March3N      Junest, Sepamier3®,            September30,
                                                         z00e         z06          206                 ame



deronauticalSector. During th three months ended September 30, 2006, evenues from the acronsutieal sector
were USS8.0 millon, an increase of USS2.3 millon, or 40%, compared withthe three months ended
September 30, 2005. The increase continues to be atibated primarily to the Swift 64 high—speed data service,
which targets the government aleraftand business jet merkets as wellas being used by commercial ailies.In
addtion reventes for low—speed data services beneBted from increased industry demand.
Leasing. Duringth three months ended September 30, 2006, revenues from leasing were US$16.3 millon, an
increase ofUSS2.2 millon, or 16%, compared with the three months ended September 30, 2005 as a result of a
new acronautical Swit 64 lease.
Subsidiary revenes. Fllowing the disposal ofInvsat Limited and the business and assetsofRydex Corporation
Limted in September 2005 and October 2008 respectively, subsidiary revenues were USSnilfor thethree months
ended September 30, 2006, compared to US§3.0 millionin the three months ended September 30, 2005.
Otfer income. Other income was USS1.9 million forthe three months ended September 30, 2006, an increase of
USS0.7 millon, or 58%, compared withthe three months ended September 30, 2005 as a result othe provision
ofaddiional n—orbit support services. Otherincome consists primarily oincome from the provision of
conference facilties, enting surplus offce space, fees foi—orbit support services and revenve from sales ofR
BGAN end userterminals.
Seasonalip. Revenues are impacted by valume discountsthat increase over the course ofthe financia year
"There are lower discount levels in early quarters representing the minimum annual discount and higher discount
levels n ater quarters, as distribation parters meet specifivolume thresholds, resulting in lower prices beyand
the level of the minimum annual discount. Additonally,in 2006 and fiture years, the total amovunt ofvalume
discounts will be affected by the merger ofXantic B.V. with Strtos Global Corporation which serves to increase
the amount ofreventes atibated to single distribution partner
                                                     a




 hophssiAniveedputao9on isiasousooisn ciorivaom is ade


                               CERTIFICATE OF SERVICE

        1, Sylvia A. Davis,a secretary with the law firm of Pilsbury Winthrop Shaw
Pittman LLP, hereby certify that on this 22nd day ofJanuary 2007, I served a true copy
of the foregoing by first—class United States mail, postage prepaid, upon the following:
David Krech*                                      Car Grayert
International Bureau                              International Buresu
Federal Communications Commission                 Federal Communications Commission
445 12® Street, SW.                               445 12® Street, S.W.
Washington, DC 20554                              Washington, DC 20554
JoAnn Lucanik®                                    Erin MeGrath®
International Bureau                              Wircless Bureau
Federal Communi ions Commission                   Federal Communieations Commission
445 12® Street, S.W.                             445 12® Street, S.W.
Washington, DC 20554                             Washington, DC 20554
Douglas Young*                                   Neil Dellar®
Office ofEngineering and Technology              Office ofGeneral Counse!
Federal Communications Commission                Federal Communications Commission
445 12® Street, SW.                              445 12° Street, S.W.
Washington, DC 20554                             Washington, DC 20554
Robert Nelson*                                   John Martin®
International Bureau                             Interational Bureau
Federal Communications Commission                Federal Communications Commission
445 12" Streeu, SW.                              445 12° Street, S.W.
Washington, DC 20554                             Washington, DC 20554
Kathym Medley®                                   Stephen Doall®
International Bureau                             International Bureau
Federal Communications Commission                Federal Communications Commission
445 12® Street, S.W.                             445 12® Street, S.W.
Washington, DC 20554                             Washington, DC 20554
Best Copy and Printing, Ic.*                     Bruce H. Turmbll
fec@ bepicweb.com                                David J.Taylor
                                                 Well, Gotshal & Manges LLP
                                                 1300 Eye Street, NW, Suite 900
                                                 Washington, DC 20008
                                                 Counsel for FTMSC US, LLC
Robert W. Swanson                                Naney Victory
Telenor Satelite nc.                             Wiley Rein & Fielding LLP
1101 Wootion Parkway                             1776 K Street NW
10° Floor                                        Washington, DC 20006
Rockille, MD 20852
                                                 Counsel for Telenor Satelite Inc.


Peter Robrbach             DianeJ. Comell
Karis Hastings             ‘Vice President, Govemmment Affairs
Hogan & Hartson LLP        HInmarsat, Ic.
555 13" Street, NW         1100 Wilson Blvd, Suite 1425
Washington, DC 20004       Arlington, VA 22209
Counselfor Iceptum 1 AS
Jobn P.Janka
Jeffiey A. Marks
Latham & Watkins LLP
555 Eleventh Street, NW.
Sute 1000
Washington, DC 20004
Counsel for Inmarsat


                                    A. Davis

*Via electronic mail



Document Created: 2007-01-31 12:38:49
Document Modified: 2007-01-31 12:38:49

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