Letter - Third Suppl

SUPPLEMENT submitted by Sprint Corporation

Supplement

2016-06-29

This document pretains to SES-T/C-20160412-00360 for Transfer of Control on a Satellite Earth Station filing.

IBFS_SESTC2016041200360_1141436

Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 ) In the Matter of ) ) Sprint Corporation, on behalf of all ) File No. licensee subsidiaries thereof ) ) Petition for Declaratory Ruling Under Section ) 310(b)(4) of the Communications Act, as Amended ) ) PETITION FOR DECLARATORY RULING In 2013, the Federal Communications Commission (“FCC” or “Commission”) issued a declaratory ruling concluding that it was in the public interest for the foreign ownership of Sprint Corporation’s subsidiaries holding FCC licenses and authorizations (“Sprint” and the “Sprint Licensees,” respectively) to exceed the 25% foreign ownership benchmark in section 310(b)(4) of the Communications Act of 1934, as amended (the “Communications Act”).1 In addition, the Commission granted authorization for SoftBank Group Corp. (“SoftBank”) and its shareholders to indirectly own up to 100% of the Sprint Licensees.2 1 47 U.S.C. § 310(b)(4). 2 This declaratory ruling was issued in connection with the broader Sprint/SoftBank transaction. Applications of SOFTBANK CORP., Starburst II, Inc., Sprint Nextel Corporation, and Clearwire Corporation; For Consent to Transfer Control of Licenses and Authorizations; Petitions for Reconsideration of Applications of Clearwire Corporation for Pro Forma Transfer of Control, Memorandum Opinion and Order, Declaratory Ruling, and Order on Reconsideration, 28 FCC Rcd 9642 (2013) (“Sprint/SoftBank Order”). Specifically, the ruling was set forth in paragraph 124 of the FCC’s decision. Id. ¶ 124 (“Sprint/SoftBank Foreign Ownership Grant”). Note that the names of several entities have changed since the initial grant, including the following: (1) SOFTBANK CORP. is now SoftBank Group Corp.; and (2) Starburst II, Inc. is now Sprint Corporation.

Pursuant to that ruling, section 310(b)(4) of the Communications Act, and the FCC’s implementing rules,3 Sprint, on behalf of the Sprint Licensees, now respectfully petitions the Commission for a further finding that it would not serve the public interest to prohibit the indirect foreign owners of the Sprint Licensees to undertake a pro forma internal restructuring, as described herein. I. BACKGROUND AND BASIC DESCRIPTION OF OWNERSHIP All entities that hold common carrier authorizations as part of Sprint’s corporate structure are U.S. subsidiaries of Sprint, a Delaware corporation. In keeping with the terms of the Sprint/SoftBank Foreign Ownership Grant, the majority of Sprint’s equity and voting interests ultimately are held by SoftBank, a Japanese entity. At this time, SoftBank wishes to undertake a pro forma internal restructuring with respect to its intermediate and holding companies by inserting a wholly owned Japanese subsidiary – BM Holdings GK – into the vertical ownership chain between SoftBank and the holding companies in which its Sprint shares are currently held. Under the rules adopted in the Commission’s 2013 Second Report and Order, no Commission approval would be required for a pro forma transaction such as this one.4 Because the Sprint/SoftBank Foreign Ownership Grant was not issued pursuant to the 2013 Second Report and Order, however, Sprint hereby requests a new foreign ownership grant pursuant to these new FCC rules.5 In doing so, Sprint notes that it will continue to be subject to the terms of the 3 47 C.F.R. §§ 1.990 et seq. 4 See Review of Foreign Ownership Policies for Common Carrier and Aeronautical Radio Licensees Under Section 310(b)(4) of the Communications Act of 1934, as Amended, Second Report and Order, 28 FCC Rcd 05741, ¶ 83 (2013) (“Second Report and Order”); 47 C.F.R. § 1.994. 5 The Commission adopted the new foreign ownership rules in April 2013, but these rules were not yet effective when the Commission issued the Sprint/SoftBank Foreign Ownership Grant in July 2013. See generally Second Report and Order; see also id. ¶ 138 (“We do not 2


Document Created: 2016-06-29 19:36:19
Document Modified: 2016-06-29 19:36:19
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