    [Senate Hearing 115-569]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 115-569

                      THE COMMERCIAL SATELLITE INDUSTRY:
                      WHAT'S UP AND WHAT'S ON THE HORIZON

    =======================================================================

                                    HEARING

                                  BEFORE THE

                             COMMITTEE ON COMMERCE,
                          SCIENCE, AND TRANSPORTATION
                              UNITED STATES SENATE

                         ONE HUNDRED FIFTEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                                OCTOBER 25, 2017

                                   __________

        Printed for the use of the Committee on Commerce, Science, and
                                 Transportation

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           SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                         ONE HUNDRED FIFTEENTH CONGRESS

                                 FIRST SESSION

                       JOHN THUNE, South Dakota, Chairman
    ROGER F. WICKER, Mississippi         BILL NELSON, Florida, Ranking
    ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
    TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
    DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
    JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
    DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts
    DEAN HELLER, Nevada                  CORY BOOKER, New Jersey
    JAMES INHOFE, Oklahoma               TOM UDALL, New Mexico
    MIKE LEE, Utah                       GARY PETERS, Michigan
    RON JOHNSON, Wisconsin               TAMMY BALDWIN, Wisconsin
    SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
    CORY GARDNER, Colorado               MAGGIE HASSAN, New Hampshire
    TODD YOUNG, Indiana                  CATHERINE CORTEZ MASTO, Nevada
                           Nick Rossi, Staff Director
                     Adrian Arnakis, Deputy Staff Director
                        Jason Van Beek, General Counsel
                     Kim Lipsky, Democratic Staff Director
                  Chris Day, Democratic Deputy Staff Director
                          Renae Black, Senior Counsel

                                C O N T E N T S

                                  ----------
                                                                       Page
    Hearing held on October 25, 2017.................................     1
    Statement of Senator Thune.......................................     1
        Prepared statement...........................................     2
    Statement of Senator Nelson......................................     3
    Statement of Senator Wicker......................................   112
    Statement of Senator Sullivan....................................   114
    Statement of Senator Cortez Masto................................   115
    Statement of Senator Hassan......................................   117
    Statement of Senator Gardner.....................................   121
    Statement of Senator Inhofe......................................   123
    Statement of Senator Peters......................................   125
    Statement of Senator Blumenthal..................................   127
    Statement of Senator Markey......................................   129

                                   Witnesses

    Patricia Cooper, Vice President, Satellite Government Affairs,
      Space Exploration Technologies Corp. (SpaceX)..................     5
        Prepared statement...........................................     7
    Mark Dankberg, Founder and Chief Executive Officer, ViaSat, Inc..    17
        Prepared statement...........................................    19
    Stephen Spengler, Chief Executive Officer, Intelsat..............   103
        Prepared statement...........................................   104
    Greg Wyler, Founder and Executive Chairman, WorldVu Satellites
      Limited (OneWeb)...............................................   107
        Prepared statement...........................................   109

                                    Appendix

    Response to written questions submitted by Hon. Maggie Hassan to:
        Patricia Cooper..............................................   141
        Mark Dankberg................................................   142
        Stephen Spengler.............................................   144
    Response to written questions submitted to Greg Wyler by:
        Hon. Cory Booker.............................................   145
        Maggie Hassan................................................   146

     THE COMMERCIAL SATELLITE INDUSTRY: WHAT'S UP AND WHAT'S ON THE HORIZON

                                  ----------

                          WEDNESDAY, OCTOBER 25, 2017

                                           U.S. Senate,
            Committee on Commerce, Science, and Transportation,
                                                        Washington, DC.
        The Committee met, pursuant to notice, at 10:07 a.m. in
    room SR-253, Russell Senate Office Building, Hon. John Thune,
    Chairman of the Committee, presiding.
        Present: Senators Thune [presiding], Nelson, Wicker,
    Fischer, Sullivan, Inhofe, Johnson, Capito, Gardner, Young,
    Cantwell, Klobuchar, Blumenthal, Markey, Peters, Baldwin,
    Hassan, and Cortez Masto.

                 OPENING STATEMENT OF HON. JOHN THUNE,
                     U.S. SENATOR FROM SOUTH DAKOTA

        The Chairman. Good morning. Welcome to today's hearing on
    the state of the commercial satellite industry and the promises
    of next-generation satellite technology to improve the lives of
    Americans. I believe we're at a critical moment in the
    development of satellite capability, and I'm excited to hear
    from our panel of distinguished witnesses today.
        Satellite services available today offer residential
    broadband at speeds substantially greater than those available
    just a few years ago--download speeds that meet the Federal
    Communications Commission's definition of advanced
    telecommunications capability, and in some cases, without the
    strict data cap limits that have vexed users of satellite
    broadband in the past. Much of our television broadcast
    programming is delivered to broadcasters by satellite with
    extraordinary reliability, and millions of Americans receive
    their video service through direct broadcast satellite.
        This summer, the FCC for the first time authorized access
    to the U.S. market to a provider using a proposed constellation
    of 720 satellites. OneWeb received approval to enter the U.S.
    market with an array of satellites to provide global, high-
    speed broadband, including in remote and hard-to-serve areas.
    For comparison, there are about 1,000 satellites total in
    operation today. This new type of service would place
    satellites in a much lower orbit than many of the satellites
    currently in operation.
        Similarly, SpaceX seeks to bring its satellite expertise to
    bear with a proposal to deploy a constellation of thousands of
    satellites to provide high-speed broadband. If realized, these
    ambitious proposals could completely change consumer access to
    broadband in rural areas as well as cities across the country
    and around the world.
        Satellite capability can also play a critical role in
    establishing communication after natural disasters, and it has
    been used by the Red Cross and others as part of the effort to
    reconnect the residents of Puerto Rico after the devastation
    caused by Hurricane Maria, as well as those affected by
    hurricanes in Texas and Florida.
        As with the wireless services this Committee has examined
    at numerous hearings, spectrum is critical to satellite
    services. As the value of spectrum has skyrocketed with
    America's increasing demand for broadband, spectrum that
    previously had little value for mobile broadband use now faces
    competing demands.
        It is essential that any evaluation of these competing
    demands accurately consider the full range of spectrum uses and
    how best to deliver broadband and other services to the
    American people. The specifics of how to balance such demands
    in the public interest--things like allocating spectrum between
    services and between licensed and unlicensed use; setting
    appropriate interference levels between terrestrial and
    satellite uses; and determining the size, number, and location
    of exclusions zones--are as important as they are complex.
    However, they are not the subject of today's hearing, as the
    FCC is addressing those matters in the ongoing Spectrum
    Frontiers proceeding and elsewhere.
        But it is important to set the broad parameters of this
    discussion. We must ensure that next-generation technologies
    rise or fall on their merits, including their efficiency in the
    use of spectrum, and ultimately their ability to meet the
    demands of American households for reliable high-speed
    broadband.
        Today we will have an opportunity to hear from some of the
    leaders and innovators in the field who are redefining
    satellite capability and who can explain what satellite
    services can offer to ongoing efforts to make broadband more
    available to all parts of the country and the world.
        Wireline service, fixed and mobile wireless service, and
    satellite service all have a role to play in connecting
    Americans to next-generation broadband service.
        Understanding satellite capability and the potential of
    next-generation satellite deployments will help inform this
    Committee regarding the costs and benefits of spectrum
    allocations, spectrum sharing, and related technology-neutral
    policies, among other things.
        So I am pleased that we have such a distinguished panel to
    address these matters today, and I look forward to hearing
    their thoughts.
        [The prepared statement of Senator Thune follows:]

     Prepared Statement of Hon. John Thune, U.S. Senator from South Dakota
        Good morning. Welcome to today's hearing on the state of the
    commercial satellite industry and the promises of next-generation
    satellite technology to improve the lives of Americans. I believe we
    are at a critical moment in the development of satellite capability,
    and I am excited to hear from our panel of distinguished witnesses
    today.
        Satellite services available today offer residential broadband at
    speeds substantially greater than those available just a few years
    ago--download speeds that meet the Federal Communications Commission's
    definition of ``advanced telecommunications capability''--and in some
    cases without the strict data cap limits that had vexed users of
    satellite broadband in the past. Much of our television broadcast
    programming is delivered to broadcasters by satellite with
    extraordinary reliability, and millions of Americans receive their
    video service through direct broadcast satellite.
        This summer, the FCC for the first time authorized access to the
    U.S. market to a provider using a proposed constellation of 720
    satellites. OneWeb received approval to enter the U.S. market with an
    array of satellites to provide global, high-speed broadband, including
    in remote and hard-to-serve areas. For comparison, there are about 1000
    satellites total in operation today. This new type of service would
    place satellites in a much lower orbit than many of the satellites
    currently in operation. Similarly, SpaceX seeks to bring its satellite
    expertise to bear with a proposal to deploy a constellation of
    thousands of satellites to provide high-speed broadband. If realized,
    these ambitious proposals could completely change consumer access to
    broadband in rural areas as well as cities across the country and
    around the world.
        Satellite capability can also play a critical role in establishing
    communication after natural disasters, and has been used by the Red
    Cross and others as part of the effort to reconnect the residents of
    Puerto Rico after the devastation caused by Hurricane Maria, as well as
    those affected by hurricanes in Texas and Florida.
        As with the wireless services this Committee has examined at
    numerous hearings, spectrum is critical to satellite services. As the
    value of spectrum has skyrocketed with America's increasing demand for
    broadband, spectrum that previously had little value for mobile
    broadband use now faces competing demands.
        It is essential that any evaluation of these competing demands
    accurately consider the full range of spectrum uses and how best to
    deliver broadband and other services to the American people. The
    specifics of how to balance such demands in the public interest--things
    like allocating spectrum between services and between licensed and
    unlicensed use; setting appropriate interference levels between
    terrestrial and satellite uses; and determining the size, number, and
    location of exclusion zones--are as important as they are complex.
    However, they are not the subject of today's hearing as the FCC is
    addressing those matters in the ongoing Spectrum Frontiers proceeding
    and elsewhere.
        But it is important to set the broad parameters of this discussion.
    We must ensure that next-generation technologies rise or fall on their
    merits, including their efficiency in the use of spectrum, and
    ultimately their ability to meet the demands of American households for
    reliable, high-speed broadband.
        Today we will have an opportunity to hear from some of the leaders
    and innovators in the field who are redefining satellite capability and
    who can explain what satellite services can offer to ongoing efforts to
    make broadband more available to all parts of the country and the
    world. Wireline service, fixed and mobile wireless service, and
    satellite service all have a role to play in connecting Americans to
    next-generation broadband service.
        Understanding satellite capability and the potential of next-
    generation satellite deployments will help inform this Committee
    regarding the costs and benefits of spectrum allocations, spectrum
    sharing, and related technology-neutral policies, among other things. I
    am pleased that we have such a distinguished panel to address these
    matters today, and look forward to hearing their thoughts.

        The Chairman. And I recognize Senator Nelson for his
    opening statement.

                    STATEMENT OF HON. BILL NELSON,
                       U.S. SENATOR FROM FLORIDA

        Senator Nelson. Thank you, Mr. Chairman.
        Well, this is an exciting time because communications
    satellites are essential links in our globally connected world.
    They bounce television signals all over the planet and provide
    voice communication and Internet access to remote areas. And in
    a recognition of satellites' resiliency and reliability, first
    responders and those in disaster areas, like Florida after a
    hurricane, Texas, Puerto Rico, the Virgin Islands, they rely on
    satellite systems as their lifeline when other communications
    systems are down.
        So the next generation of satellite-based communications
    systems holds even more promise. Large constellations,
    thousands of satellites, will provide broadband communications
    that rival the terrestrial counterparts, and it's going to make
    access even more affordable for broadband Internet. It's going
    to become a reality that broadband Internet in rural areas and
    remote areas that the terrestrial networks don't reach. Other
    constellations promise imaging services that could advance key
    Earth and climate science initiatives. And that's just the
    beginning of it.
        Much of this new interest and investment in space is coming
    from the private sector. In fact, some have begun to call this
    the second great Space Age. And as it was for the first great
    Space Age, the epicenter--and I hate to be parochial here--the
    epicenter----
        [Laughter.]
        Senator Nelson.--is going to be the Cape. So goes----
        Senator Cantwell. [Clears throat.]
        Senator Nelson. So goes--well, we'll let you do all your
    manufacturing out there----
        [Laughter.]
        Senator Cantwell. We'll take--we'll take it, we'll take it.
        Senator Nelson.--Senator Cantwell.
        But as it was in the first great Space Age, so it now is in
    the commercial launch business. And thanks in no small part to
    the efforts of some of the companies here today and to our
    commitment to an ambitious civil and national security space
    program, the Cape is coming alive. The space industry has
    brought millions of dollars of investment to this country,
    along with thousands and thousands of jobs, lots of economic
    benefits, and a lot of spin-offs from the technology that is
    developed for the space program.
        And so as we have been working with NASA, the FAA, and the
    Air Force, and our colleagues here in Congress, we are paving
    the way to a dramatic increase in commercial space activity at
    the Cape. And when I say ``the Cape,'' that's the generic term,
    not just the physical Cape Canaveral, which is the Air Force
    station, but it also includes the Kennedy Space Center and the
    commercial activities that are going on there, which are very
    significant.
        So take, for example, the commanding general of the 45th
    Space Wing, General Monteith, he told me recently that they now
    have the capability of supporting two launches in one day. Now,
    in the past, that could have never happened. In large part,
    that, in fact, is due to the autonomous destruct, and you don't
    have to have an Air Force lieutenant sticking there with his
    finger on the destruct button, but you have the autonomous
    destruct if a rocket were to go off the trajectory that it's
    supposed to be on, threatening populated areas.
        And over the coming years, these launches are going to be
    able to deliver thousands of new satellites to orbit, cargo and
    crews to the International Space Station, and eventually new
    technologies, like in-space manufacturing. And on top of all
    that, we are building the vehicles that will return humanity to
    deep space. And, ladies and gentlemen, we're going to Mars, and
    the beginning of that is in 2 years with the launch of the
    largest rocket, most powerful rocket ever, the SLS with its
    spacecraft Orion. And that's just 2 years away.
        So suffice it to say this, in fact, is not only an exciting
    time, it's a critical time, for the space program and space
    commercialization as well. And that's why it's such an
    important time to have our space agency led by an experienced
    and competent professional. The agency has not faced this
    critical of an inflection point since the Apollo program. If we
    stumble now, the impacts of our civil, commercial, and national
    space capabilities could be felt for decades to come.
        And I want to thank the witnesses for being here. This is
    going to be an exciting discussion.
        Thank you, Mr. Chairman.
        The Chairman. Thank you, Senator Nelson. And we have lots
    of wide open space and uncongested air space in South Dakota,
    too----
        [Laughter.]
        The Chairman.--so if you want to bring any of that
    technology our way, we welcome it.
        We have a great panel, as you pointed out today. We have
    Ms. Patricia Cooper, who is the Vice President of Satellite
    Government Affairs at SpaceX; Mr. Mark Dankberg, who is the
    Chief Executive Officer of ViaSat; Mr. Stephen Spengler, who is
    the CEO of Intelsat; and Mr. Greg Wyler, who is the Founder and
    Executive Chairman of OneWeb.
        So thank you all for being here. We'll start on my left,
    and your right, with Ms. Cooper, and then proceed. And if you
    would all, if you can, limit your oral remarks to about 5
    minutes, it will give us optimum time to ask questions. And
    we'll make sure that all of your remarks get made part of the
    written record of this hearing. So thank you for being here.
        Ms. Cooper.

             STATEMENT OF PATRICIA COOPER, VICE PRESIDENT,

                     SATELLITE GOVERNMENT AFFAIRS,

             SPACE EXPLORATION TECHNOLOGIES CORP. (SPACEX)

        Ms. Cooper. Mr. Chairman, Ranking Member Nelson, and
    members of the Committee, I am pleased to be back today
    representing SpaceX and my more than 6,000 colleagues who are
    revolutionizing space technologies. Mr. Chairman, there's a
    space renaissance underway, and SpaceX is proud to be at the
    forefront of innovation.
        My testimony today will outline SpaceX's plans to harness
    the platform of space for a new approach to broadband delivery.
    I will also recommend actions that the Committee can take to
    foster innovation, by streamlining regulations, driving
    efficient spectrum use, and protecting the safety of space.
        SpaceX is designing, developing, building, and launching a
    constellation of over 4,000 satellites operating close to the
    Earth. We have designed our constellation to achieve an
    ambitious and compelling goal, connecting the hundreds of
    millions of Americans and billions of global citizens to high-
    speed broadband.
        Our direct-to-consumer focus drives the large scale of our
    system, featuring substantial on-orbit capacity and to keep
    pace as broadband demand grows, and sophisticated techniques
    for frequency reuse.
        From the outset, our constellation planning aimed to push
    the edge of innovation so that we can groom our coverage to
    match the peaks and valleys of broadband demand, interoperate
    flexibly with other users, and protect the space environment.
    Underlying these plans are the credentials that SpaceX has
    built over 15 years that demonstrate our capability to
    manufacture and operate complex space systems with
    unprecedented innovation, efficiency, scale, and affordability.
        Unlike many other aerospace firms, SpaceX is heavily
    vertically integrated. We build our Falcon rockets and our
    Dragon spacecraft in-house from tip to toe, including
    propulsion systems, structures, avionics, and launch, all
    within the U.S.
        Our space and launch heritage and our drive to innovate
    gives us a distinct edge in deploying our ambitious satellite
    project. SpaceX has successfully launched 42 flights of the
    Falcon 9, including 15 this year alone, landed 18 first stages
    and reused 3, and flown 13 supply missions to the International
    Space Station using our Dragon spacecraft. We will bring this
    experience to bear in our satellite project.
        In space, our constellation will use dynamic antennas and
    optical links between the satellites to form an efficient mesh
    network. These advancements will allow us to reuse frequencies
    many times over to ultimately deliver far greater broadband
    capacity to consumers. As a company, we are deeply committed to
    maintaining a debris-free environment in space, and our
    satellite system has been thoughtfully designed to meet or
    exceed all existing requirements for safety of operations in
    space and upon deorbit.
        On the ground, we are producing affordable, easy-to-install
    end user terminals that all but remove the incremental cost of
    new users joining our network. Here we avoid the dollars-per-
    mile terrestrial build-out costs and other obstacles that have
    made terrestrial broadband connections cost prohibitive for so
    many American communities.
        The coming low-orbiting constellations hold enormous
    potential to finally bring broadband connectivity to all
    corners of America at speeds and latencies that today are
    available really only in the most populated areas.
        Mr. Chairman, we lay out an ambitious goal, and we could
    use the Committee's help. To summarize my written statement, we
    urge the Committee to continue its work to modernize the
    regulatory framework for commercial launch operations, both at
    the FAA and at the FCC. Launch is the critical path to
    deploying satellite constellations, and licensing rules and
    spectrum allocations must be updated to reflect that new pace
    and number of launches. SpaceX is proud to launch our
    constellation from U.S. soil on American-made SpaceX rockets.
        The Committee should endorse rules that foster spectrum
    sharing and technology advancement to make the best use of the
    airwaves. The FCC has already taken an important step by
    updating its rules for such satellite constellations,
    rightfully expecting operators to negotiate among themselves
    for spectrum sharing. Unfortunately, not all operators have
    chosen to invest in available technologies for spectrum
    efficiency. The Committee has an important oversight function
    to ensure that the rules of the road incentivize and support
    smart technology that can interoperate with other users on
    orbit and on the ground.
        To protect the space environment, the Committee should
    encourage closer coordination among the many Federal agencies
    responsible for orbital safety policies and regulation.
    Congress should also consider additional investments in the
    Nation's infrastructure to track orbital objects even more
    precisely.
        Finally, we ask for the Committee's vigilance to assure
    tech neutrality in any and all legislation or Federal programs
    designed to expand broadband infrastructure. Blanket exclusions
    of any qualifying technology from existing programs, like the
    Connect America Fund, should be rescinded so that new satellite
    constellations can be harnessed for high-quality broadband
    connectivity in every corner of America.
        This is an exciting and dynamic time in the satellite
    industry. I thank the Committee for the opportunity to be here
    today and look forward to any questions.
        Thank you.
        [The prepared statement of Ms. Cooper follows:]

       Prepared Statement of Patricia Cooper, Vice President, Satellite
       Government Affairs, Space Exploration Technologies Corp. (SpaceX)
        Mr. Chairman, Ranking Member Nelson, and Members of the Committee:

        Thank you for the opportunity to participate in today's hearing. We
    appreciate the Committee's interest in exploring how advanced satellite
    technologies can expand broadband access within the United States and
    the policies that would foster that capability. SpaceX also appreciates
    that the Committee recognizes the potential of a new generation of
    U.S.-based low-Earth orbit (``LEO'') or non-geostationary satellite
    orbit (``NGSO'') satellite broadband system as an integral part of any
    strategy to augment high-speed Internet connectivity nationwide. NGSO
    satellite constellations intend to leverage emerging technologies in
    space and on the ground to provide reliable, high-speed, and affordable
    broadband service to customers throughout the United States and abroad.
        SpaceX was founded in 2002 with the express goal of dramatically
    improving the reliability, safety, and affordability of space
    transportation. Today, SpaceX today is the world's largest launch
    services provider, measured by missions under contract and cadence of
    launch, with 42 successful Falcon 9 launches, including 15 in 2017
    alone.
        SpaceX has deployed over 65 commercial communications satellites
    since 2010. In addition to commercial satellite operators, SpaceX
    supports a diverse and growing set of satellite and space customers,
    including NASA, the Department of Defense, and allied international
    governments. We have signed contracts for nearly 70 missions on
    manifest, representing more than $10 billion. Under one of the most
    successful public-private programs ever undertaken with NASA, SpaceX
    also supports the Nation's civil space program through routine cargo
    resupply missions with our Dragon spacecraft to the International Space
    Station (ISS). Next year, we will have the awesome responsibility of
    launching NASA astronauts to space from U.S. soil for the first time
    since the Space Shuttle was retired in 2011. SpaceX is also a certified
    provider to the Department of Defense for national security space
    launch.
        Leveraging our experience in space launch system and spacecraft
    design, development, production, and on-orbit operations, SpaceX is
    developing an innovative NGSO constellation. Our system is designed to
    reach directly to end users, and provide global broadband services at
    speeds, latencies and prices on par with terrestrial alternatives
    available in metropolitan communities. Accordingly, we filed
    applications with the Federal Communications Commission (``FCC'') in
    November 2016 and April 2017 that detail those plans.
        My testimony today will describe SpaceX's planned satellite
    constellation, including our capabilities and timelines, as well as
    offer a number of recommendations for the Committee's consideration to
    streamline regulatory processes, maximize planned government investment
    to accelerate broadband deployment, and ensure a safe, collaborative
    operating environment in space. Specifically, my testimony today will
    focus on the following areas:

      (1)  Launch. The importance of low cost launch enabled by rapid
            reusability and robust launch infrastructure to making large-
            scale, space-based broadband Internet services more viable
            today than ever before, and recommendations to improve the
            launch licensing regulatory framework both at the FCC and the
            Federal Aviation Administration (FAA);

      (2)  Spectrum Efficiency. Recommendations to ensure the efficient use
            of spectrum, including potential regulatory incentives for
            systems that invest in technologies that effectively share
            spectrum. The Committee should take proactive steps to
            encourage and reward companies that utilize and advance
            technologies that result in maximum spectrum sharing and
            efficiency.

      (3)  Technology-Neutral Programs. The need to update eligibility
            requirements for nationwide broadband infrastructure
            initiatives to ensure they are truly technology neutral, and do
            not needlessly preclude satellite systems with equivalent or
            better service from competing against more traditional
            broadband providers. This hearing is an important forum to
            review how satellite broadband has improved and can contribute
            to the Nation's connectivity goals, and how to incorporate such
            services into any national infrastructure initiative.

      (4)  Space Safety. The importance of ensuring that large satellite
            constellations will employ robust orbital debris and space
            safety protocols, including high reliability for individual
            spacecraft; the speedy, planned deorbit of satellites at the
            end of the useful life; the ability to implement active
            collision avoidance throughout a satellite's life; and
            transparency and information sharing.
    Vertically Integrated Approach to Manufacturing and Extensive Space
            Operations Experience
        As the leading domestic commercial space launch provider, SpaceX
    has restored the U.S. as a leader in global commercial satellite launch
    by percentage of market share. In developing its fleet of highly-
    reliable, affordable, and innovative launch vehicle systems, SpaceX has
    invested billions of private capital in sophisticated manufacturing
    processes, engineering and design know-how for space and launch
    systems, the infrastructure needed to launch satellite payloads into
    orbit, and technologies to make launch more affordable. These
    manufacturing, engineering and design capabilities are trusted by the
    U.S. civil and national security space community, commercial satellite
    operators, and international governments.
        Looking forward, SpaceX intends to leverage its fifteen years of
    experience in space to develop and deploy a cost-effective and
    sophisticated broadband satellite constellation. Our vertically-
    integrated approach to this initiative--linking design, development,
    production, launch, and operations--lends a unique capability to
    address the challenges that stymied past generations that have
    considered low-earth orbiting communications constellations from space.
        SpaceX's proven core competency is the manufacturing of complex
    space systems with increased efficiency, scale, and affordability.
    Here, SpaceX has a vertically-integrated approach to manufacturing
    uncommon within the aerospace industry. For Falcon, SpaceX manufactures
    over 70 percent of the value of the Falcon 9 in-house, including the
    first-and second-stage propulsion systems (Merlin 1D and MVacD), the
    tanks, composite structures, payload fairings, avionics, etc.
    Similarly, SpaceX produces the autonomous Dragon spacecraft in house,
    including the on-board propulsion systems (Draco and SuperDraco),
    pressure vessel, avionics, and all other major subsystems and
    components. SpaceX also has extensive test facilities at our Rocket
    Development facility in McGregor, Texas.
        SpaceX will carry this vertical approach to design, manufacturing,
    and test into our satellite broadband constellation. SpaceX expects to
    manufacture in-house the majority of each spacecraft, leveraging the
    experience we have gained with Falcon and Dragon in manufacturing and
    specific systems, such as propulsion systems, avionics, and solar
    arrays, among others. We are uniquely positioned to apply these proven
    methods of reliability and cost-effectiveness to our planned broadband
    satellite constellation.
        SpaceX's satellite constellation will also benefit from the
    company's extensive space operations experience, drawn from the Falcon
    9 launch vehicle's 42 successful flights, 18 successful fist-stage re-
    entries and landings, and over 13 Dragon flights to and from the
    International Space Station (ISS). SpaceX can build upon the optimized
    guidance, navigation, and control (``GNC'') systems that allow us to
    land our first-stage boosters on land and at sea with pinpoint
    accuracy. Similarly, our deep experience with orderly and safe de-orbit
    through routine Dragon missions to the ISS has informed and enriched
    careful and detailed on-orbit operations and de-orbit planning for the
    satellite constellation. SpaceX is also drawing on the operational
    experience it has built with every Federal agency working on space-
    related issues--including FCC, FAA, NASA and DOD--to prepare and
    coordinate for the satellite constellation undertaking. This unique
    manufacturing, operational, and cross-agency engagement will advance
    the planning and operations of the satellite broadband constellation.
    II. Expanding Broadband Access and Bridging the Digital Divide
        SpaceX sees a robust market of continuously-growing demand for
    high-speed broadband both in the United States and worldwide. Connected
    consumers continue to increase requirements for speed, capacity, and
    reliability. And the volume of traffic flowing over the world's
    networks continues to skyrocket, with one vendor estimating that annual
    global Internet Protocol (``IP'') traffic surpassed the zettabyte
    threshold in 2016--meaning that over 1,000 billion gigabytes of data
    was exchanged worldwide last year.\1\ By 2020, that figure is projected
    to more than double (reaching a level nearly 100 times greater than the
    global IP traffic in 2005), global fixed broadband speeds will nearly
    double, and the number of devices connected to IP networks will be
    three times as high as the global population.\2\
    ---------------------------------------------------------------------------
        \1\ Cisco Visual Networking Index: Forecast and Methodology, 2015-
    2020, at 1 (June 6, 2016), available at http://www.cisco.com/c/en/us/
    solutions/collateral/service-provider/visual-networking-index-vni/
    complete-white-paper-c11-481360.pdf; see also http://blogs.cisco.com/
    sp/happy-zettabyte-day-2016. To fathom the volume of a zettabyte, if
    one byte is a litter, then a zettabyte is the equivalent of 7080
    Pacific Oceans. See id.
        \2\ Ibid.
    ---------------------------------------------------------------------------
        However, as the Committee is aware, millions of Americans outside
    of limited urban areas lack basic, reliable access to broadband--even
    as worldwide demand for data skyrockets. We note a few important facts
    about the availability and quality of broadband access in the United
    States and worldwide:

      --  According to the FCC, 34 million Americans lack access to 25
            megabits per second (``Mbps'') broadband service, and 47
            percent of the Nation's students lack the connectivity to meet
            the FCC's short-term goal of 100 Mbps per 1,000 students and
            staff. \3\
    ---------------------------------------------------------------------------
        \3\ Federal Communications Commission, 2016 Broadband Progress
    Report, (January 28, 2016), GN Docket No. 15-191, available at https://
    apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf.

      --  The FCC has further noted that ``there continues to be a
            significant disparity of access to advanced telecommunications
            capability across America with more than 39 percent of
            Americans living in rural areas lacking access to advanced
            telecommunications capability, as compared to 4 percent of
            Americans living in urban areas.'' \4\
    ---------------------------------------------------------------------------
        \4\ Ibid.

      --  Connectivity levels are even lower for tribal communities, with
            ``approximately 41 percent of Americans living on Tribal lands
            lacking access to advanced telecommunications capability.'' \5\
    ---------------------------------------------------------------------------
        \5\ Ibid.

      --  In addition, nearly 10 million Americans living in non-rural
            areas also lack basic access to high-speed Internet service. As
            a general matter, the U.S. continues to lag behind other
            developed nations in both its broadband speed and in price
    ---------------------------------------------------------------------------
            competitiveness.

      --  Even in urban areas of the United States, a majority of Americans
            lacks more than a single fixed broadband provider from which to
            choose and may seek additional competitive options for high-
            speed service.\6\ According to the FCC, ``only 38 percent of
            Americans have more than one choice of providers for fixed
            advanced telecommunications capability,'' with only ``13
            percent of Americans living in rural areas having more than one
            choice of providers of these services compared to 44 percent of
            Americans living in urban areas.'' \7\
    ---------------------------------------------------------------------------
        \6\ FCC, 2016 Broadband Progress Report.
        \7\ Ibid.

      --  Beyond the United States, the United Nations Broadband Commission
            for Sustainable Development recently noted that 4.2 billion
            people, or 57 percent of the world's population, are simply
            ``offline'' for a wide range of reasons--but predominately
            because the necessary connectivity is not present or not
            affordable.\8\
    ---------------------------------------------------------------------------
        \8\ Broadband Commission for Sustainable Development, ``Open
    Statement from the Broadband Commission for Sustainable Development to
    the UN High-Level Political Forum (HLPF)'' (July 11, 2016), available
    at http://broadbandcommission.org/Documents/publications/HLPF-
    July2016.pdf.
    ---------------------------------------------------------------------------
    III. NGSO Satellite Constellations Offer Unique Advantages in Expanding
            Broadband Access
        Satellites have traditionally served at the forefront of remote and
    rural connectivity, and often have helped to alleviate inequities in
    the availability of communications services, in part due to geographic
    reach. Historically, satellites first revolutionized the availability
    of international telephony, then pioneered global distribution of video
    content. More recently, satellite systems have introduced broadband
    connectivity for mobile platforms, such as aircraft and ships--
    establishing and supporting new markets and enhancing those businesses
    and their customer experience.
        New constellations of sophisticated satellites operating close to
    the Earth add important prospects for remote connectivity, particularly
    where latency is critical. In adopting new rules for such NGSO systems
    and moving briskly on NGSO applications for U.S. market access and
    systems licenses, the Commission has underscored the vital role that
    NGSO systems can have for the broadband landscape of the future, and
    that this future is coming imminently.\9\
    ---------------------------------------------------------------------------
        \9\ Update to Parts 2 and 25 Concerning Non-Geostationary, Fixed-
    Satellite Service Systems and Related Matters, IB Docket No. 16-408,
    Report and Order and Further Notice of Proposed Rulemaking, FCC 17-122
    (rel. Sept. 27, 2017) (``NGSO Report & Order'').
    ---------------------------------------------------------------------------
        At its Open Meeting on September 26, 2017, the Commission adopted a
    Report and Order and Further Notice of Proposed Rulemaking removing
    ``regulatory obstacles for companies proposing to provide [broadband]
    services via large, ambitious, non-geostationary-satellite orbit
    (NGSO), fixed satellite service (FSS) systems.'' \10\ SpaceX supports
    the Commission's actions in this proceeding that update outdated NGSO
    rules, create greater regulatory certainty and add flexibility for
    next-generation NGSO systems that hold the promise of truly nationwide
    satellite broadband coverage at speeds and latencies comparable to
    terrestrial fiber-optics. Chairman Pai recognized the importance of
    NGSO systems, stating that ``[a]s we strive to close the digital
    divide, we must be open to any and every technology that could connect
    consumers across the country.. . . The rules we adopt will promote the
    next generation of NGSO systems, which could expand broadband access
    where it's needed most.'' \11\ Commissioner Clyburn similarly stated
    that ``[t]oday, we take yet another step to close those gaping divides
    by updating and streamlining rules to facilitate the deployment of NGSO
    FSS systems, which have the potential to provide ubiquitous broadband
    services to all of our communities.'' \12\
    ---------------------------------------------------------------------------
        \10\ Id., Statement of Chairman Ajit Pai (stating that he has
    circulated to the Commissioners orders granting U.S. market access to
    two more NGSO systems).
        \11\ NGSO Report and Order, Statement of Chairman Ajit Pai.
        \12\ Id., Statement of Commissioner Mignon L. Clyburn.
    ---------------------------------------------------------------------------
        SpaceX is unique in designing its system specifically to link
    consumers directly with high-speed, low-latency broadband connectivity.
    On orbit, SpaceX is employing advanced operational techniques and
    spacecraft technologies in order to maximize the capacity it can employ
    for high-speed broadband services, including high-degrees of re-use of
    valuable spectrum, and flexibility in interference mitigation, allowing
    our system to co-exist with other space-and ground-based systems. On
    the ground, affordable, easy-to-install end-user terminals can obviate
    the costs, environmental regulations, property rights issues, and other
    regulatory obstacles, that have precluded many unconnected end-users in
    smaller communities, or remote locations from comparable quality
    Internet access. Once the satellite capability is deployed on-orbit,
    the incremental costs of delivering broadband access to each new
    customer become agnostic to urban, suburban, or rural locations, in
    contrast to traditional terrestrial broadband networks.
        SpaceX's constellation is designed fulfill its primary service
    objective of providing high-speed broadband directly to end users
    globally, both widely-dispersed locations and also more concentrated
    population areas with higher capacity demands. With many satellites in
    view, the constellation offers a diversity of path for reliability and
    also access for any given customer location, even those blocked from
    traditional satellite services by buildings, mountains, or other
    physical obstacles. Phased-array technology on-orbit and on-ground
    gateways and end-user terminals permit a large number of very narrow
    beams, reusing frequencies many times over to generate a level of
    capacity that can meaningfully bridge the broadband connectivity gap.
    The same phased array technology allows for dynamic beam formation,
    shaping, and direction, both to tailor capacity by demand profile and
    also to mitigate interference to space-and ground-systems. Spectrum
    sharing prospects with terrestrial systems sharing the same frequency
    bands are enhanced by the use of high-elevation angles for
    communications with earth stations and highly directional space station
    and earth station beams.
        The combination of unique vertically-integrated manufacturing and
    design capabilities, proven production and operations experience, and
    highly-adaptable, leading-edge technology in space and on the ground
    gives promise for the SpaceX constellation to help close the digital
    divide, and bridge the current disparity in service between well-
    covered metropolitan consumers and their counterparts in rural or other
    ``hard-to-reach'' areas. Importantly, that urban-rural parity can also
    be sustained over future generational upgrades over the NGSO
    constellation, without requiring additional costly last-mile
    infrastructure upgrades.
        This lag was noted by the Government Accountability Office
    (``GAO''):

            Access to affordable broadband telecommunications is vital to
            economic growth and improved quality of life across the
            country. In rural areas in particular, broadband can serve to
            reduce the isolation of remote communities and individuals. The
            provision of broadband Internet infrastructure and services in
            the United States is generally privately financed. However,
            rural areas can have attributes that increase the cost of
            broadband deployment, such as remote areas with challenging
            terrain, or make it difficult to recoup deployment costs, such
            as relatively low population densities or incomes. These
            attributes can decrease the likelihood that a broadband service
            provider will build out or maintain a network in a rural area.
            For these reasons, some rural areas lag behind urban and
            suburban areas in broadband deployment or service speed.\13\
    ---------------------------------------------------------------------------
        \13\ U.S. Government Accountability Office, Rural Broadband
    Deployment: Improved Consistency with Leading Practices Could Enhance
    Management of Loan and Grant Programs, (April 2017), GAO-17-301,
    available at http://www.gao.gov/assets/690/684093.pdf.

        Next-generation satellite systems operating in orbits close to the
    Earth, powered by innovative technologies to provide rapid data rates
    and minimal latency, can offer a way around this gap in broadband
    access in the United States.
    IV. SpaceX's Proposed Satellite Constellation Architecture
        As noted, SpaceX plans to leverage its unique space-based design,
    manufacturing, launch, and space operations experience for the planned
    NGSO constellation.
        In particular, SpaceX aims to apply our experience in designing and
    manufacturing cutting-edge space to apply technology advancements like
    dynamic beam forming and phased array antennas in space and on the
    ground. These will ensure both unparalleled frequency re-use and
    spectral efficiency, as well as redundant and high-capacity
    infrastructure. The satellites' optical inter-satellite links will
    establish a ``mesh network'' in space through which the satellites will
    communicate with each other, further enhancing the capacity levels and
    network flexibility for faster and reliable broadband satellite
    service.
        SpaceX's consumer focus sets it apart from most other proposed NGSO
    system. SpaceX has designed its system with the primary purpose of
    providing broadband service directly to end-users, particularly
    individual households and small businesses. Meeting this distinct
    direct-to-end-user goal demands far more on-orbit capacity, which in
    turn drives the larger number of satellites in the design and the focus
    on spectrum re-use efficiency. Initially, the SpaceX system will
    consist of 4,425 satellites operating in 83 orbital planes (at
    altitudes ranging from 1,110 km to 1,325 km). This system will also
    require associated ground control facilities, gateway earth stations,
    and end user earth stations.\14\ Using Ka-and Ku-Band spectrum, the
    initial system is designed to provide a wide range of broadband and
    communications services for residential, commercial, institutional,
    governmental, and professional users worldwide. SpaceX has separately
    filed for authority to operate in the V-Band, where we have proposed an
    additional constellation of 7,500 satellites even closer to Earth, our
    Very Low Earth Orbit, or ``VLEO,'' system. In the future, these
    satellites will provide additional broadband capacity to the SpaceX
    system and further reduce latency where populations are heavily
    concentrated.\15\
    ---------------------------------------------------------------------------
        \14\ Space Exploration Holdings, LLC, Application for Approval for
    Orbital Deployment and Operation Authority for the SpaceX NGSO
    Satellite System (November 15, 2016), Before the Federal Communications
    Commission, IBFS File No. SAT-LOA-20161115-00118.
        \15\ Space Exploration Holdings, LLC, Application for Approval for
    Orbital Deployment and Operating Authority for the SpaceX NGSO
    Satellite System (March 1, 2017), Before the Federal Communications
    Commission, IBFS File No. SAT-LOA-20170301-00027.
    ---------------------------------------------------------------------------
        To implement the system, SpaceX will utilize powerful computing and
    software capabilities, which will enable SpaceX to allocate broadband
    resources in real time, placing capacity where it is most needed and
    directing energy away from areas where it might cause interference to
    other systems, either in space or on the ground. Because the satellites
    will beam directly to gateways or user terminals, the infrastructure
    needed on the ground--particularly in rural or remote areas--is
    substantially reduced, essentially addressing the ``last mile''
    challenge and helping to close the digital divide. In other words, the
    common challenges associated with siting, digging trenches, laying
    fiber, and dealing with property rights are materially alleviated
    through a space-based broadband network.
        SpaceX intends to continually iterate and improve the technology in
    the system, something that our satellite manufacturing cost profile and
    in-house launch capability uniquely enables. The ability to modify
    service as necessary, as well as refresh the technology of the
    satellite system through iterative spacecraft design changes and
    phased, continuous deployment, is critical to meet rapidly changing
    customer demands and responsibly utilize spectrum. This approach will
    ensure that the system remains adaptable to existing and future
    customer demands.
        For the end consumer, SpaceX user terminals--essentially, a small
    flat panel, roughly the size of a laptop--will use similar phased array
    technologies to allow for highly directive, steered antenna beams that
    track the system's low-Earth orbit satellites. In space, the satellites
    will communicate with each other using optical inter-satellite links,
    in effect creating a ``mesh network'' flying overhead that will enable
    seamless network management and continuity of service. The inter-
    satellite links will further help SpaceX comply with national and
    international rules associated with spectrum sharing, which
    distinguishes our system from some of the other proposed NGSO
    constellations.
        Overall, SpaceX has designed our system to achieve the following
    key objectives:

      (1)  Capacity. By combining the umbrella coverage of the LEO
            Constellation with the more intensive coverage from the VLEO
            Constellation, the SpaceX System will be able to provide high
            volume broadband capacity over a wide area. SpaceX will
            periodically improve the satellites over the course of the
            multi-year deployment of the system, which may further increase
            capacity.

      (2)  Adaptability. The system leverages phased array technology to
            steer dynamically a large pool of beams to focus capacity where
            it is needed. As noted, optical inter-satellite links will
            permit flexible routing of traffic on-orbit. Further, the
            constellation ensures that a variety of frequencies can be
            reused effectively across different satellites to enhance the
            flexibility, capacity and robustness of the overall system.

      (3)  Broadband Services. The system will be able to provide broadband
            service at fiber-like speeds, the system's use of low-Earth
            orbits will allow it to target latencies comparable to
            terrestrial alternatives. SpaceX intends to market different
            packages of data at different price points, accommodating a
            variety of consumer demands.

      (4)  Efficiency. SpaceX is designing the system from the ground up
            with cost-effectiveness and reliability in mind, from the
            design and manufacturing of the space and ground-based
            elements, to the launch and deployment of the system using
            SpaceX launch services, development of the user terminals, and
            end-user subscription rates.

        SpaceX soon will begin the process of testing the satellites
    themselves, with the first two prototypes launching within the next
    several months. Following the successful demonstration of our space and
    ground technology, SpaceX intends to begin the operational satellite
    launch campaign in 2019. The remaining satellites in the constellation
    will be launched in phases through 2024, when the system will reach
    full capacity with the Ka-and Ku-Band satellites. The constellation
    will be operational well in advance of full deployment, and we expect
    to begin offering services commercially as early as deployment of 800
    satellites.
        SpaceX is highly experienced with cutting-edge debris mitigation
    practices and has deep ties with the domestic and international
    institutions tasked with ensuring the continued safety of space
    operations. SpaceX has designed its satellite constellation to meet or
    exceed all existing requirements for safety of operations in space and
    upon de-orbit of satellites, and SpaceX is deeply committed both to
    maintaining a debris-free environment in space and to disposing of
    orbital assets in a responsible and safe manner.
    V. Overcoming the Cost of Large Constellation Deployment: Launch and
            Reusable Rockets
        While rights of way and the high costs of terrestrial connectivity
    for rural remote areas historically has limited the reach of broadband,
    the cost of space launch has been the major obstacle to the deployment
    of large-scale broadband satellite constellations. Affordable access to
    space effectively limited the size of satellite constellations
    operating close to the earth, where shorter signal paths could lower
    overall end-to-end latency to levels comparable to modern mobile or
    fixed broadband.
        By rethinking the launch vehicles design and production, SpaceX has
    driven down launch costs. Our work to recover and reuse rockets will
    enable truly revolutionary reductions in the speed and cost of space
    access. Every other launch vehicle provider in the world discards its
    rocket hardware after each launch. This practice is akin to throwing
    away an airplane after every leg of a trip. However, SpaceX has
    invested considerable internal resources to develop and implement
    reusability into the Falcon 9. Most of a launch vehicle's cost is
    concentrated in its first stage. SpaceX has incorporated advanced
    technologies that uniquely enable the Falcon 9 first stage to return to
    either a ground-based landing platform or an off-shore autonomous
    spaceport droneship after nearly every mission.
        This year, SpaceX proved out this concept with the successful
    launch and landing of three flight-proven Falcon 9 boosters, placing
    high-value telecommunications satellites into orbit for commercial
    satellite operators. Each Falcon 9 first stage will soon be capable of
    at least 10 flights with no refurbishment and many more flights after
    minimal refurbishment, resulting in significant cost reductions.
        Dramatically lower launch costs and the demonstrated capability to
    launch nearly every two weeks (or less) allows SpaceX affordably to
    deploy larger numbers of satellites for its own NGSO constellation at a
    pace not previously possible. Moreover, affordable access to space also
    allows SpaceX to refresh the constellation technology over time,
    driving down the cost of producing each satellite and making it easier
    to add capability to meet consumer demand and dynamically react to an
    evolving market.
    VI. Policy Recommendations to Facilitate the Deployment of Space-Based
            Broadband Systems Safely and Efficiently
        As the Committee considers policies that could facilitate the
    expansion of broadband access in the U.S., SpaceX offers the following
    recommendations:

      (1)  FAA Commercial Launch License Regulations Require Modernization.
            As noted, launch is the key enabling capability for the
            deployment of NGSO constellations, as well as other satellite
            platforms that are critical to expanding broadband access. As
            such, SpaceX recommends that existing FAA launch statutes and
            regulations be modernized and streamlined to adapt to higher
            numbers of launches at a more rapid cadence. The current FAA
            regulations were promulgated in a time when commercial spaces
            launches were rare, and launch was primarily the domain of the
            U.S. Government. However, as the industry transitions from a
            pace of a few commercial launches per year to a launch per
            week, or more, in the near future, and new U.S. launch
            providers consider entering the market, it is essential that
            FAA regulations be updated to avoid obstructing industry growth
            and innovation in the U.S. domestic commercial space launch
            industry.

      (2)  FCC Commercial Launch Spectrum Licensing Process Should be
            Streamlined. The FCC licenses the radio frequencies used by
            commercial launch operators during launch and reentry
            operations. Because launches originally were assumed to be by
            and for the government, there is no allocation for the spectrum
            used for commercial launchers. As a result, the FCC must use
            its experimental licensing rules through a cumbersome Special
            Temporary Authorizations (STA) process. This process is time-
            consuming for the applicant and the FCC, as each launch mission
            may have multiple STAs for launch, landing, and various short-
            range communications with the payload. Each STA is limited in
            validity to a maximum of six months; and is approved on a non-
            interference basis, with ``special conditions'' that ensure
            frequency coordination with other Federal users in the spectrum
            bands. In September 20, 2013, the FCC issued a Notice of
            Proposed Rulemaking (NPRM) addressing spectrum for non-federal
            space launch, in which it noted that the STA process is
            suboptimal as commercial space launches and other commercial
            operations in orbit grow in volume and frequency.

          The FCC's NPRM would remedy this problem by establishing co-
            primary, interference-protected allocation status for
            commercial space launch companies and would streamline the
            authorization process through standard, clearly-defined
            application and coordination processes. The growth of the U.S.
            commercial space launch industry necessitates the development
            of a streamlined, predictable spectrum licensing process to
            ensure the continued growth of the industry and the effective,
            efficient, and prudent use of radio frequencies.

          This NPRM, now pending for more than four years, proposes a
            specific allocation for non-federal space launch that would
            allocate specific frequencies commercial space launch
            companies. It would streamline the authorization process and
            allow for a single, five-year license for multiple like-
            missions (for example, all missions for the same customer to
            the same orbital plane). The allocation would be secondary to
            the Federal users already in the band, requiring the same
            coordination processes undertaken now to de-conflict any
            interference prior to each mission. Importantly, Federal
            agencies have agreed to this change, and the agency that
            represents Federal users of radio frequencies, the Department
            of Commerce's National Telecommunications & Information
            Administration (``NTIA'') sent a letter to the FCC in September
            2016 stating that Federal users of the frequency bands under
            discussion ``strongly agree'' with the proposed new rules.

          SpaceX recommends that the Committee encourage the FCC to act now
            to adopt the proposed rules and then move quickly to develop
            implementing regulations that can allow frequency
            authorizations to cover multiple like launches. This long
            overdue action would save time and money, and it would help
            with long-term planning for both the FCC and industry.

      (3)  Systems and Technology that Achieve Spectrum Efficiency Should
            be Rewarded. The new generation of broadband NGSO
            constellations holds incredible potential to bring affordable,
            fiber-like broadband services to underserved and unserved areas
            of the United States. Investment in advanced technologies that
            provide spectral efficiency and operational flexibility are
            necessary for NGSO systems to increase access to reliable,
            high-speed broadband connectivity. How they share the valuable
            spectrum resources will be important to their operational
            efficiency and their ability to deliver quality broadband
            services. Unfortunately, not all aspiring operators have chosen
            to make the investment necessary to include many of these
            technologies in their proposed systems. As a result, some
            systems would not only make inefficient use of the spectrum
            they seek to use, but also may prevent other NGSO systems from
            efficiently sharing the available spectrum.

          As such, the Committee should ensure that their rules do not
            unduly burden more flexible, adaptable systems with the
            responsibility of spectrum sharing with other less
            sophisticated systems. Any such outcome would impose an
            asymmetrical burden that is counter to the overall FCC goals of
            incentivizing efficient spectrum sharing. Spectrum sharing
            policies should ensure that all systems have equitable access
            to spectrum, avoid any warehousing of spectrum by non-operating
            systems, and incorporate sufficient flexibility to promote and
            accommodate spectrum coordination among operating systems.
            Given the advent of new space-based and ground technologies,
            spectrum sharing is most efficiently managed by using highly
            intelligent and flexible satellites, as this expands the range
            of potential sharing strategies available to the operators
            involved.

      (4)  Spectrum Use Policy in the Ka-and V-Bands Should be Revised.
            When drafted, FCC policies governing the use of spectrum by
            NGSO constellations--specifically in Ka-and V-bands--did not
            envision the potential of very large constellations operating
            in LEO. As a result, NGSO constellations are unduly restricted
            from using important segments of spectrum as compared to
            ground-based fixed systems. While the agency has granted
            waivers for NGSO systems to operate in parts of this spectrum
            on an unprotected, non-interference basis, this approach is not
            sustainable over the long-term, especially as these new NGSO
            systems come online.

          Clear and reasonable rules must be developed to govern how
            multiple companies will share spectrum among NGSO systems.
            These rules are essential to the development and deployment of
            potential NGSO systems. Companies have proposed widely varying
            space architectures, ranging from highly-elliptical orbit
            systems operating from 8,000-43,500 km that focus on Arctic
            coverage to small constellations at medium Earth orbit at
            around 10,000 km above the Earth to several larger
            constellations operating in LEO at 1,000-3,000 km from the
            Earth.

          The FCC recently issued a Report and Order to update rules for
            NGSO satellite systems, including deployment milestones,
            geographic coverage, and allocations of radio-frequency bands.
            The new rules also discussed how multiple NGSO operators should
            share valuable spectrum, specifying that the preferred method
            to address interference between two NGSO systems is operator-
            to-operator negotiations. Where operator-to-operator
            negotiations fail, the FCC recommended parameters to determine
            where operators could interoperate and where they would be
            required to simply divide frequency bands (``splitting
            spectrum'').

          Every NGSO applicant agreed that spectrum splitting is the least
            desirable and most inefficient approach to sharing frequencies,
            because it reduces capacity and services made available to
            consumers. The parameters that the FCC identified work well
            when sharing spectrum for downlinking from space, because
            downlinks already have power limits to protect other services
            so all NGSO systems operate at similar downlink power levels.
            However, when applied to uplinks to spacecraft in widely
            varying space architectures, the rules actually yield far more
            instances of mandated spectrum splitting because no comparable
            power limits exist. The wide disparity in uplink power levels
            often yield situations that defy coordination.

          The Committee should encourage the Commission to open a further
            inquiry on how to best optimize spectrum use among non-
            homogeneous NGSO systems to elicit further technical input and
            regulatory consideration. This should include review of the
            uplink transmissions needed to traverse across higher NGSO
            orbits in a manner that does not create broad-based
            interference to other lower-situated NGSO systems. The FCC's
            inquiry should also examine the effect of beam-size on
            interference mitigation, since large geographic beams of some
            higher-altitude systems will operate without flexibility, and
            essentially nullify the flexibility of other NGSO systems.
            These technical inquiries should presume that the public
            interest is served by multiple successful NGSO systems,
            providing services to American consumers and using valuable
            spectral resources effectively.

      (5)  Satellite Ground Station Siting Rules Must be Modified. As part
            of its Spectrum Frontiers rulemaking, the FCC is reviewing the
            rules it set out for the siting of satellite gateways using the
            28 GHz range (Ka-band) frequencies, including gateways
            supporting both geostationary and upcoming NGSO constellations.
            The current earth station siting rules are a complex mix of
            numerical caps of gateways per county, and geographic avoidance
            of population centers and arterial roadways. These rules were
            designed to balance the need to protect terrestrial operations
            with satellite operators' need to deploy satellite gateways in
            locations with access to Internet points of presence and
            backhaul facilities. However, the metrics defined for gateway
            siting are overly complex and difficult to interpret, and also
            may actually have the unintended effect of deterring satellite
            deployment in certain rural areas. Several satellite operators
            have suggested new metrics that would remove the per-county
            limit and recalibrate the siting rules.

          The FCC should streamline the Ka-band satellite gateway siting
            rules to reflect reasonable real-world deployment scenarios for
            both existing and next-generation satellite gateway
            technologies and their terrestrial mobile broadband
            counterparts. The FCC should also exempt from its siting rules
            those satellite gateway earth stations that operate under the
            limit set to protect mobile broadband networks, including both
            any per-county cap and population coverage limits.

          These clarifications will maintain reasonable interference
            protection for evolving terrestrial mobile networks while
            permitting the development of ground infrastructure needed to
            support NGSO satellite systems. Given that NGSO constellations
            could help provide broadband access to millions of previously
            unserved or underserved Americans, the FCC should adopt
            spectrum sharing rules that do not unduly constrain deployment
            of Ka-band satellite ground station facilities to support the
            delivery of innovative satellite services.

      (6)  Maintaining a Safe Space Environment. Any policy environment
            concerning orbital debris should minimize risk to space systems
            without imposing an unnecessary burden on responsible actors.
            Recent concern in this arena has been driven by the
            proliferation of small experimental satellites (micro-, nano-,
            and cubesats) that are not maneuverable; by recent debris
            collisions and end-of-life disassembly problems with aging
            geostationary satellites; and, to some extent, by the potential
            deployment of large NGSO constellations.

          To reduce conjunction risks, policies should be pursued that
            encourage responsible and reliable satellite design and
            operation from launch to disposal. Future policies should
            balance a satellite's deorbit reliability with the risk of a
            premature failure when considering whether to extend the
            satellite's use after it reaches its design lifetime.
            Regulations can encourage and reward manufacturing designs that
            allow for easier tracking (e.g., tracking reflectors) and are
            fault-tolerant and safe, particularly with respect to battery
            and propulsion systems. Such designs would utilize materials
            that diminish the risk of generating new debris from internal
            faults, impacts with untracked debris, or planned de-orbit
            reentries. Additionally, current international policy
            guidelines mandate satellites have the capability for disposal
            within 25 years; this time-frame should be shortened. Given the
            diverse Federal agencies employed with space regulation and
            policy matters, SpaceX welcomes the establishment of the
            National Space Council and encourages robust inter-agency
            dialogue to root agency policies in common objectives and
            premises, even if the diverse agency authorities and space
            missions under each agency's oversight results in distinct
            specific regulations.

          SpaceX also supports broad sharing arrangements among space
            operators to increase the accuracy of ephemeris data and
            mitigate potential conjunction events, even while space
            activities expand. Expanded data sharing will augment reliance
            on the space surveillance network for positional information
            and reduce positional uncertainty, reducing unnecessary on-
            orbit maneuvers. In addition to increased data sharing among
            operators, the United States should consider investments in
            orbital object tracking radars and other systems to enhance the
            amount and quality of space surveillance data.

      (7)  Satellite Broadband Technology Should Not Be Excluded from FCC
            Broadband Incentives. The FCC is currently in the process of
            reviewing rules for and structuring the second phase of the
            Connect America Fund (CAF II). This program, with awards
            determined through a reverse auction, would support up to $1.98
            billion in funding over ten years to support broadband
            expansion to areas of need across the country. The Commission
            has adopted rules providing different bidding weights to
            different tiers of speed, usage, and latency applicants might
            select. This is a reasonable means by which to ensure the best
            service receives the most favorable score in the bidding
            process, which is inherently in the interest of the American
            consumer.

          However, current rules preclude all satellite systems from
            meaningful participation, simply because current-day
            geostationary satellite offerings do not meet the FCC's high-
            speed, low-latency criteria. Even if next-generation NGSO
            satellite providers could provide equivalent or better services
            than the top tiers outlined in the rules, these systems are
            still precluded for participating. This creates a false
            presumption that all satellite technologies are now and forever
            unsuitable for consumer broadband, and therefore ineligible for
            support in areas where NGSO systems are uniquely designed to
            serve customers competitively and cost-effectively. Conflating
            NGSO systems and traditional geostationary systems would be the
            same as the FCC prohibiting fiber systems from bidding because
            dial-up is not fast enough: just because both systems are hard
            wired does not mean that they are equivalent.

          The original CAF rules also require a stand-alone voice telephony
            service, meaning that bidders for the fund cannot offer only
            internet-based Voice over IP (``VoIP'') services like Skype or
            Vonage but must bundle a land-line-type service. This adds
            inefficiency and cost, and creates another bias against non-
            wireline bidders.

          The FCC should remove constraints on any qualifying technology to
            participate, and update or eliminate the existing general
            preclusion for satellite bidders. By doing so, the FCC will
            demonstrate a clear commitment to results-based regulation,
            with a CAF II auction that supports broadband in the areas that
            need it in the most cost effective, administratively efficient
            way. Moreover, the Commission will achieve this goal while
            ensuring that every bidder--no matter what technology it might
            use--has a meaningful opportunity to participate. In addition,
            the Commission should remove the unnecessary requirement to
            provide standalone voice service rather than simply make voice-
            over-IP capabilities.

      (8)  Next Generation Satellite Systems are Broadband Infrastructure
            and Should Be Included in Any Infrastructure Legislation. The
            expansion of satellite broadband through U.S.-based
            constellations is, fundamentally, a national infrastructure
            project, even though many components of the infrastructure will
            be in space. In prior investment rounds and through funds like
            the Universal Service Fund (``USF''), satellite broadband was
            often an afterthought. For example, of the $6.9 billion awarded
            for broadband infrastructure through National
            Telecommunications and Information Administration's (``NTIA'')
            Broadband Technology Opportunities Program (``BTOP'') and the
            U.S. Department of Agriculture's Rural Utilities Service
            (``RUS''), only approximately $100 million went to satellite
            systems, or less than 1.5 percent of all funds
            appropriated.\16\ In many ways, this was the result of
            limitations at the time on satellite capacity, high latency
            rates due to satellite distance from the Earth, and relatively
            slow data rates compared to terrestrial and mobile networks. It
            was also related to a general failure of imagination to make
            investment and subsidy structures applicable to satellite
            infrastructure and consumer hardware, since satellite systems
            have few ``shovels in the ground.''
    ---------------------------------------------------------------------------
        \16\ National Telecommunications and Information Administration,
    U.S. Department of Commerce, Broadband Technology Opportunities Program
    (BTOP) Quarterly Program Status Report (March 2017), available at
    https://www.ntia.doc.gov/files/ntia/publications/ntia_btop_31st_
    qtrly_report.pdf; and U.S. Department of Agriculture, Rural Utilities
    Service, Broadband Initiatives Program Final Report (December 2016),
    available at https://www.rd.usda.gov/files/reports/
    RUS_BIP_Status_FinalReportDec_2016.pdf.pdf.

          However, as satellite-based broadband achieves speeds, latencies,
            and pricing equivalent to terrestrial and 5G wireless
            technologies, it becomes especially critical for Congress and
            Federal agencies to reconsider how these systems can
            participate in national infrastructure investment programs and
            other Federal initiatives to close the digital divide.
            Infrastructure associated with a satellite broadband system
            includes launch facilities, consumer terminals that are placed
            on homes or businesses, gateways that will be placed at
            potentially hundreds of Internet points of presence (``PoPs'')
            throughout the United States that are used to route traffic,
            large antennas to track and control the satellites in space,
            and satellite operations centers. The satellites themselves are
            essentially infrastructure in the sky, a network that is not
    ---------------------------------------------------------------------------
            dissimilar to cell towers or underground fiber.

          As such, SpaceX encourages the Committee to take steps to ensure
            that satellite-based broadband infrastructure is duly captured
            in any Federal infrastructure, incentive, or tax policy
            legislation undertaken to expand broadband access in the United
            States. Such an approach will not only ensure that Congress and
            regulatory agencies maintain a technology-neutral approach, but
            it will also ensure the U.S. Government and American consumers
            are positioned to benefit from the significant innovations and
            great promise of that satellite systems are poised to bring.

        Mr. Chairman, I appreciate your invitation to testify before the
    Committee today. SpaceX looks forward to being part of the solution to
    expand access to high-speed, reliable, and affordable broadband
    Internet connectivity in the United States and worldwide.

        The Chairman. Thank you, Ms. Cooper.
        Mr. Dankberg.

                  STATEMENT OF MARK DANKBERG, FOUNDER
               AND CHIEF EXECUTIVE OFFICER, VIASAT, INC.

        Mr. Dankberg. Chairman Thune, Ranking Member Nelson, and
    members of the Committee, I'm Mark Dankberg, Co-Founder and CEO
    of ViaSat. Thank you for the chance to testify on the U.S.
    satellite industry and the critical role it plays in closing
    the digital divide in connecting millions of mobile devices and
    in our national defense.
        ViaSat is an American success story. Started in my house 31
    years ago, we've generated billions in revenue, gone public,
    and created almost 5,000 high-paying jobs.
        Six years ago, we launched our first satellite to deliver
    truly competitive broadband services directly to rural America,
    to airlines, and even to Air Force One. Though a space
    newcomer, we're redefining satellite. Our first one had 100
    times the bandwidth of a typical satellite; our second doubled
    that; and we're building one now 1,000 times better than the
    typical satellite still in use today.
        The global satellite industry is valued at $260 billion a
    year. The U.S. has the largest share. Satellite service is the
    biggest segment and the economic engine for commercial space.
    Advances in spacecraft and rockets depend on demand for
    satellite services. Communication is the largest piece of
    services, and broadband is the fastest growing part of
    communications.
        Broadband satellite demand has skyrocketed as media and
    entertainment evolves from broadcast to Internet-enabled to on-
    demand service. If you've ever seen a frozen Internet
    videostream, you know the pain of slow broadband.
        Today, we deliver faster Internet to hundreds of thousands
    of American homes. We've grown without subsidies, competing
    against much larger companies. We see the market work. When our
    service is faster, people choose ViaSat.
        In 2012, our download speed was 12 megabits per second,
    above average back then. Our second-generation satellite
    reaches 100 megabits per second, again, above average for all
    U.S. broadband. We've invested heavily. We built our own
    payload factory, employing hundreds of people. In 5 years,
    we've invented three generations of satellites, aiming to bring
    fiber-like speeds to Americans left behind by other
    technologies. We're still designing even faster versions.
        We're disrupting in-flight WiFi, too. Not long ago,
    airborne WiFi and the terrestrial wireless link, so slow and
    expensive, hardly anyone used it. We now bring satellite WiFi
    to every JetBlue flight free to every passenger and with enough
    bandwidth to stream video. It's so popular, there is often more
    connected devices than passengers. We have expanded to large
    portions of United and American Airlines, too.
        We're exporting to international airlines. The global
    airline industry sees satellite WiFi as the future, with over 3
    billion global passengers a year, and over 800 million in the
    U.S. We believe competition works.
        ViaSat embraces the entrepreneurial spirit and competes
    with the largest companies in the world. Now there are dozens
    of startups and satellites in space, and we believe our success
    helps to inspire others.
        But there's a threat to American satellite growth.
    Broadband needs spectrum. Our technology uses spectrum
    extremely efficiently. And we helped the FCC open the 28
    gigahertz band for 5G while still enabling growth in satellite
    broadband by sharing the same band.
        Yet, sadly, the FCC's most recent NPRM would take spectrum,
    long allocated for satellite growth, and designate it almost
    exclusively to terrestrial wireless. This is the 47 to 52
    gigahertz band. We've been investing heavily in the technology
    that allows us to use the spectrum in the next 5 years. Such a
    policy decision would pick winners and losers, and stifle
    competition. The problem is not in accommodating 5G, it's in
    taking spectrum away from competitive satellite services and
    creating exclusivity by regulation.
        It need not be a zero-sum game. There is no technical
    argument against spectrum sharing. ViaSat has put extensive
    technical studies on the record in spectrum frontiers from
    independent experts showing satellite terrestrial spectrum
    sharing can work. There is no policy reason to limit
    competition that can bring the best broadband services to
    American consumers, businesses, and government users.
        In summary, demand for satellite broadband is at an all-
    time high. We're providing a service that is competitive with
    urban offerings, and we're uniquely suited to serving the rural
    Americans other technologies have left behind. There is much
    more innovation to come. Technology markets are dynamic and
    evolve in unexpected ways.
        ViaSat is committed to serving all of America. We just need
    the spectrum tools to do so.
        Thank you again for the opportunity to appear before you
    today on these important issues. And I'll be happy to answer
    questions that you may have.
        [The prepared statement of Mr. Dankberg follows:]

                 Prepared Statement of Mark Dankberg, Founder
                   and Chief Executive Officer, ViaSat, Inc.
        Chairman Thune, Ranking Member Nelson, and Members of the
    Committee, I'm Mark Dankberg, co-Founder, Chairman and CEO, of ViaSat.
    Thank you for lhe chance to testify on the U.S. satellite industry--and
    the critical role it plays in closing the digital divide, in connecting
    millions of mobile devices, and in our national defense.
        I've lived the American entrepreneurial dream. Since ViaSat started
    in my house 31 years ago, we've generated billions in revenue, gone
    public, and created almost 5,000 high-paying jobs.
        Just six years ago, we started redefining satellite broadband when
    it was apparent that existing technology was not up to the task. We
    designed our first satellite to extend urban-quality broadband services
    to rural America, airlines, and even Air Force One. That satellite
    delivered 100 times the capacity of a typical, satellite and today
    provides 25 Mbps speeds to large parts of the Nation. Our second
    generation design, launched this year, doubles that capacity, covers
    the entire nation, and supports speeds of up to 100 Mbps. We're now
    building a third generation design with nationwide-coverage, 1,000
    times the capacity of the typical satellite in use today, and support
    for fiber-like speeds. And we're designing even faster versions.
        More capacity means better service. It allows us to keep up with
    the growing demand for our services, provide even more customers at
    urban quality offerings, and support the video-streaming services that
    Cisco estimates will represent 82 percent of Internet usage within a
    few years.
        We see the market work. When our service is faster than the
    competition, people choose ViaSat. This is true not just in the
    consumer broadband sector, but also in the in-flight WiFi sector.
        Before us, in-flight WiFi was slow and expensive, and hardly anyone
    used it. We have developed satellite-delivered WiFi !hat serves every
    JetBlue flight--free to every passenger and with enough bandwidth to
    stream video. It's so popular, there are often more connected devices
    than passengers. In fact, we connect over two million personal
    electronic devices per month on airplanes. And we have expanded to the
    United and American fleets.
        We've invested heavily to serve the Americans others have left
    behind. We built our own factory to allow us to do what no one else was
    doing. And we're actively exporting this American satellite technology
    around the world.
        ViaSat embraces the entrepreneurial spirit and competes with the
    largest companies in the world. There are now dozens of start-ups in
    satellite and space. We believe our success played a role in inspiring
    others. And ii is clear that advances in spacecraft and rockets depend
    on demand from commercial satellite operators like us.
        But there's a threat to the ability to continue this American
    innovation and its ability to serve rural America. Broadband satellites
    need spectrum to achieve these goals.
        Our technology uses spectrum extremely efficiently. Last year, we
    helped the FCC open the 28 GHz band for 5G mobile wireless while still
    enabling growth in satellite broadband, by sharing that same spectrum.
        Yet, sadly, the FCC's most recent NPRM would take spectrum long-
    allocated for satellite growth and make it available almost exclusively
    for terrestrial wireless operations. This is the 47-52 GHz spectrum
    that we have been planning to use on our satellites in the next five
    years. Such a policy decision would pick winners and losers--and stifle
    competition. The problem is not in accommodating 5G--it's in taking
    spectrum away from competitive satellite services und creating
    exclusivity by regulation.
        There's no technical argument against spectrum sharing. Since
    there's no technical reason, there's no policy reason to prevent limit
    competition, stifle the ability to bring the best broadband services to
    America consumers and government users, and foreclose the ability to
    provide services we can't even imagine today.
        In sum, the demand for satellite broadband is at an all-time high,
    we are providing a service that is comparable to urban offering, and
    we're uniquely-suited to serving the rural Americans that our
    competitors have fell behind. The key to our ability to continue to
    innovate and drive developments in American technology is access to
    adequate spectrum.
        ViaSat is committed to serving all of American. We just need the
    spectrum tools to do so.
        Thank you for the opportunity to appear before you today to discuss
    these important issues. I would be pleased to answer any questions you
    might have.
                                     ______

                                  Attachments
              Report on Satellite Earth Station Shielding Testing
              Filed with FCC April 20, 2017, GN Docket No. 14-177.
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                           Annex 1--Comsearch Report
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                   Report prepared by Roberson and Associates
            Filed with FCC September 25, 2017, GN Docket No. 14-177.
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

     Roof and Ground Mount Satellite Earth Station-5G Sharing Analysis for
                        1.8 m Satellite Earth Stations.
             Filed with FCC October 18, 2017, GN Docket No. 14-177.
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        The Chairman. Thank you, Mr. Dankberg.
        And before I turn to Mr. Spengler, I'll just say we're
    going to have a vote at 10:30. We try to rotate Members so that
    we have people here to cover it, and we'll just keep right on
    rolling. But thank you.
        Mr. Spengler.

                    STATEMENT OF STEPHEN SPENGLER,
                   CHIEF EXECUTIVE OFFICER, INTELSAT

        Mr. Spengler. Thank you, Chairman Thune, Ranking Member
    Nelson, and members of the Committee.
        I'm proud to lead Intelsat, the world's leading provider of
    satellite services. We have a fleet of 50 satellites, a
    sophisticated terrestrial infrastructure. We operate the first
    truly global network for video broadband that covers 99 percent
    of the world's populated regions.
        Our ultimate goal is a world with ubiquitous connectivity
    and no communications boundaries. To make that a reality, we
    have invested billions in high-speed satellite technology.
    We've been pioneering satellite communications since 1965 when
    we launched the first commercial communications satellite,
    Early Bird, at the dawn of the Space Age. Four years later, we
    transmitted the pictures of Neil Armstrong's first step on the
    Moon to the world. Today, 50 years later, we're a public
    company listed on the New York Stock Exchange with over $2
    billion in annual revenues, and we employ 1,000 people here in
    the U.S., with the majority based in Clean, Virginia.
        We're committed to taking the next giant leap forward for
    satellite technology in the 21st century, whether that's
    launching next-generation satellites or preparing for
    innovative smaller, lighter ground antennae.
        While Intelsat is largely a business-to-business company,
    our customers are in media, maritime, aviation, telecom and
    enterprise networking, the U.S. military, and emergency
    services. They rely on Intelsat to provide broadband video,
    secure satellite communications, and mobility services. In
    media, we distribute video programming for most of the U.S.
    broadcasters and programmers, including CBS, NBC, Disney, ABC,
    Fox, Discovery Channel, Turner, and HBO. In the air, we're a
    major supplier of WiFi broadband connectivity for airlines such
    as United, Southwest, and Delta; and on the oceans, to major
    cruise ship companies.
        In rural America, satellite bridges the last mile, where
    cell towers and fiber don't reach. In Alaska, for example, we
    help provide connections to enable telemedicine for residents
    and distance education for K-12 students. And in the U.S.
    military, we're proud to bring the Nation's soldiers, sailors,
    airmen, and Marines the critical communications capabilities
    they need to carry out successful missions around the globe.
        Satellite solutions are uniquely sustainable during natural
    disasters. When fiber is cut, cell towers washed away, the
    electricity is out, and other means of communications are down,
    satellites remain in place in outer space. We provided disaster
    recovery and emergency services to locations such as Puerto
    Rico and the U.S. Virgin Islands after the recent devastating
    hurricanes. We announced this week that in Puerto Rico,
    Intelsat is working with U.S. antenna manufacturer Yenta and
    telecom operator Liberty to deliver necessities and Internet
    connectivity to residents.
        This is an exciting time for the satellite industry. Given
    the insatiable demand for affordable connectivity everywhere
    and at all times, satellite is converging with other
    telecommunications technologies to build one common
    telecommunications infrastructure. Intelsat designed and now
    has in service a high-performance, next-generation satellite
    platform, Intelsat Epic. Intelsat Epic offers greater
    efficiency in the use of spectrum and more powerful and
    affordable services for customers.
        We all know about the connected car. Intelsat is leading
    the way with a satellite solution for the future where software
    will be as important to our transportation as the latest design
    features. Satellites will work seamlessly with terrestrial
    networks in the connected car environment. Some applications
    will run over the wireless network, but cars will get their
    software updates over satellite. The broadcastability of
    satellite from point-to-multipoint is highly efficient. Car
    companies can update thousands of cars at once, and these
    connections are more secure.
        Satellite networks can operate fully separate from the
    public network, dramatically reducing the cyber threat entry
    points, making automated cars safer for all citizens.
        Intelsat has also invested in and partnered with OneWeb to
    utilize the power of a combined multiple constellation solution
    that will enhance the worldwide connectivity for mobility,
    wireless extensions, and military services.
        Finally, in response to a recent FCC proceeding, Intelsat
    is leading with a creative market-based approach in proposal
    that will pave the way for joint use of C-band radio spectrum
    in the United States without risking significant reliability
    issues in interference for American television viewers. This
    spectrum is highly prized for both satellite television
    distribution and 5G wireless services to millions of American
    homes and consumers, and we've proposed a solution that allows
    for both sectors to flourish.
        At a time when access to secure and reliable communications
    impacts everything from the economy to national security,
    Intelsat is playing a major role innovating for our Nation's
    infrastructure.
        Thank you.
        [The prepared statement of Mr. Spengler follows:]

       Prepared Statement of Stephen Spengler, Chief Executive Officer,
                                    Intelsat
        Chairman Thune, Ranking Member Nelson and members of the Committee,
    thank you for the opportunity to appear before you today. I am Stephen
    Spengler, Chief Executive Officer of Intelsat and I'm pleased to have
    this opportunity to speak on behalf of our company, our customers and
    the many communities around the world that we serve via satellite.
    Our Company
        Intelsat is the world's leading provider of satellite services.
    With a fleet of 50 high-speed satellites, and a sophisticated
    terrestrial infrastructure, we operate the first truly globalized
    network for video and broadband that covers 99 percent of the world's
    populated regions. Our goal is a world with ubiquitous connectivity and
    no communication boundaries. We have invested more than $2 billion in
    high-speed satellite technology to make more efficient use of spectrum,
    which enables more affordable broadband connections for businesses,
    machines and people.
        Intelsat has the capability to serve citizens and organizations
    everywhere, from remote, rural regions in the U.S. to the world's mega
    cities and to emerging regions that have been able to advance
    education, health services and economic prosperity through increased
    connectivity.
        I have seen first-hand how broadband connectivity and information
    communications technology can transform and empower communities. Our
    investments in innovation and new services such as hybrid terrestrial
    and satellite networks have helped to make this possible. Digital
    connectivity and inclusiveness is critical to our ability to grow our
    economy here in the U.S. Satellites play an instrumental role in the
    infrastructure that enables this connectivity.
        We pioneered the satellite communications industry. Intelsat was
    originally conceived as a multi-country treaty organization at the dawn
    of the space age. We designed and launched the first commercial
    communications satellite, Early Bird, in 1965 and ``live via
    satellite'' was born. We broadcast the first live international
    satellite TV production in 1967, which featured the Beatles' first
    performance of All You Need Is Love. We transmitted the pictures of
    Neil Armstrong's first small steps on the moon. Today, 50 years later,
    we remain committed to taking the next giant leap for satellite
    technology--whether that's launching our high-throughput Intelsat Epic
    NG next generation satellites, preparing for a new era in
    lower earth orbit satellite constellations or investing in the next
    generation of smaller, lighter ground antennae that you will soon see
    appearing on planes, ships and other vehicles.
        Intelsat today is a public company listed on the New York Stock
    Exchange (NYSE: I). We have annual revenue of more than $2 billion,
    committed future orders of $8 billion, and we employ 1,000 employees in
    the U.S., the majority of whom are based in McLean, VA.
    What We Are Doing Today
        We are largely a business-to-business company, but Intelsat
    services enable many aspects of the daily lives of your constituents.
    Our customers in media, maritime, aviation, enterprise networks, the
    U.S. military, and emergency services rely on Intelsat to provide
    broadband, video, secure satellite communications and mobility
    services.
        In media, we distribute video programming for all of the major U.S.
    broadcasters and programmers including Disney, Fox, Discovery Channel,
    Turner, HBO and CBS. Hundreds of millions of U.S. citizens experience
    our services when they watch an HBO movie, the Olympics or the Super
    Bowl. The cable industry delivers 1,500 channels to 61 million
    subscribers through 5,000 ``headends,'' or key points of distribution
    for cable providers. As a satellite provider, we can deliver HD
    channels to those 5,000 sites at 99.999 reliability, which ultimately
    costs the consumer only pennies. No other technology can deliver these
    economics.
        In aviation, WIFI inflight is so important to airline passengers
    that it's become more essential than extra legroom. Intelsat has
    invested in its global fleet to support the global aero and mobility
    markets. We are a major supplier of broadband connectivity to airlines
    such as United, Southwest and Delta through infrastructure providers.
    We have made great strides to support these providers as they develop
    new services for domestic as well as international air routes. Intelsat
    also provides aeronautical broadband connections for senior government
    leadership.
        At sea, demand for bandwidth has grown exponentially. Just a few
    years ago, a cruise-going family might have brought a single laptop and
    a cell phone aboard ship. Today, cruise companies find that the average
    family boards a ship with 10 connected devices. And they expect the
    same performance at sea that they have at home in the U.S. The demand
    for connectivity aboard a ship is a solution that only satellite can
    satisfy and Intelsat serves major cruise lines.
        Intelsat provides critical network connectivity for many businesses
    overseas and even here in the U.S., complementing terrestrial networks.
    Our corporate data network helps the oil and gas industry to operate
    efficiently in remote geographies and ocean environments. They require
    satellite services to connect to their rigs, providing not only
    operational connectivity, but also broadband services that allow the
    crews to communicate with family members while on location. Whether it
    is transmitting data from seismic exploration ships, supporting
    mission-critical drilling operations or employee communications,
    satellite services are critical to the production of oil and energy in
    the U.S. and beyond. Retailers use satellite to create customized
    broadcast networks to educate their employees and for transaction-based
    services, such as pharmacy and credit card applications.
        In rural communities across America, satellite bridges the last
    mile where cell towers and fiber don't reach. For example, in rural
    Alaska, through a partner, we provide connections to enable
    telemedicine for residents, distance education for K-12 classrooms and
    virtual field trips for students to places like the Baseball Hall of
    Fame, zoos and aquariums located in the lower 48.
        We are also very proud to partner with the U.S. military to bring
    the Nation's soldiers, sailors, airmen and marines the critical
    communications capabilities they need to successfully carry out their
    mission around the globe and here at home, both in the sky and on the
    ground. Whether it's manned or unmanned aerial vehicles, communications
    on the move, or social and recreational welfare, Intelsat satellites
    carry the signal for our military and our troops.
        Satellite solutions, which offer sustainable connectivity, are
    unique in their ability to provide near-instant communications networks
    in areas where disasters have crippled terrestrial infrastructure. When
    fiber is cut, cell towers washed away, the electricity is out, and
    other means of communication are down, satellites remain in place in
    outer space. We provided disaster recovery and emergency services to
    locations such as Puerto Rico and the U.S. Virgin Islands after the
    devastating impact of Hurricanes Harvey, Irma and Maria. Intelsat
    provides the communications that are vital in enabling medical services
    and simply connecting people to loved ones concerned for their welfare.
        This week we announced that in Puerto Rico, Intelsat is working
    with U.S. antenna manufacturer Kymeta to deliver mobile communications
    to Liberty Global. Three vehicles, dubbed Liberty 1, 2 and 3 are
    travelling throughout Puerto Rico for the remainder of the year to
    deliver necessities and Internet connectivity to residents. Working
    with Kymeta's roof-mounted, electronically steered flat panel antennas
    which are installed on the vehicles, this combination delivers high-
    speed, reliable Internet connectivity to residents, helping the islands
    and their residents return to normal, day-to-day activities.
    What's On the Horizon
        The satellite industry is at an exciting inflection point. Given
    the insatiable demand for affordable connectivity, everywhere, and at
    all times, satellite is converging with other telecommunications
    technologies to build one common telecommunications infrastructure. The
    demand is ubiquitous and satellite is a part of the solution. To that
    end, Intelsat has been innovating in the design of our satellites and
    is advancing new antenna technologies. We understand that connectivity
    is critical to economic growth in the U.S. and around the world and we
    have invested in innovation that will ultimately improve the lives of
    citizens and move our society forward.
        Intelsat designed and now has in service a high-performance, next
    generation satellite platform--Intelsat Epic,NG which offers
    greater efficiency in the use of spectrum and more powerful and
    affordable services for customers.
        We have all read about the connected car and the autonomous car.
    Intelsat is leading the way with a satellite solution for the future,
    where software will be as important to our transportation as the latest
    design feature. For example, luxury cars currently are designed to
    include over 100 million lines of code--that's about 14 times more than
    even a Boeing 787 Dreamliner jet. Auto manufacturers are excited about
    the potential of being able to monitor vehicles and their systems
    remotely and provide simultaneous software updates to all the owners of
    a particular model using the point-to-multipoint broadcast feature of
    satellite. What a game changer to think that the car you buy today will
    get better and safer as new software features become available. The
    elimination of the need to bring cars into the dealership for simple
    code updates will save money and time for manufacturers and drivers.
        Satellite will work seamlessly with terrestrial networks in a
    connected car environment, with some applications--such as nearby
    traffic problems--running over the wireless network. Other
    applications, like software and mapping updates, will be assigned to
    satellite. Not only is the broadcast feature more efficient, reaching
    millions of drivers with one signal, it is also more secure.
        Whereas every wireless connection represents a cyber threat with
    respect to a network, satellite networks can operate fully separate
    from the public network, reducing the cyber entry points dramatically,
    making automated cars safer for all citizens.
        Intelsat has invested in our partner Kymeta which is inventing a
    new type of satellite antenna designed specifically for the connected
    car and other mobility applications.
        Intelsat has also invested in, and partnered with, OneWeb. OneWeb
    is a start-up low-earth orbit (LEO) satellite company and you will hear
    from its founder and Executive Chairman, Greg Wyler next. Utilizing the
    power of a combined, multi-orbit Lower Earth/Geostationary solution
    will also enhance the worldwide connectivity for mobility, wireless
    extension and military services.
        Finally, we all know that with this ubiquitous connectivity demand
    comes a relentless demand for access to more spectrum. Spectrum is key
    to all communication services--satellite included. Intelsat has
    recently taken a leadership role on an initiative that could bring more
    reliable and faster broadband services to millions more Americans. In
    response to a recent FCC proceeding, we have proposed a market-based
    solution that would pave the way for joint use of C-band radio
    spectrum. This spectrum is highly prized for both satellite television
    distribution and 5G wireless services.
        Sharing C-band spectrum under traditional circumstances can create
    significant reliability issues and interference, putting viewing
    audiences and other users at risk. U.S. media companies depend on C-
    band for program distribution, whose characteristics allow
    transmissions of pristine quality. But we recognize that 5G is the next
    generation of mobile technology and satellite will play an important
    role in extending 5G services rural and remote communities.
        Our creative proposal, developed with Intel, provides a framework
    for managed, joint-use of the C-band spectrum in the U.S. market that
    may enable wireless and other service providers to accelerate their
    deployment of 5G. Unless the joint-use of spectrum is managed in a way
    that respects the needs of all users, companies that have invested
    billions of dollars in infrastructure will be at risk. Whether they're
    watching Monday Night Football or a Nickelodeon cartoon, American
    television viewers expect--and deserve--high quality images and 100
    percent uptime. Our proposed plan offers a win for everyone. We believe
    it's time for the satellite operators and others industry participants
    to embrace this opportunity to create more economic opportunity for
    themselves, American business and U.S. citizens.
        We are now in a productive dialogue with a number of stakeholders
    to turn this proposal into a reality. We are grateful to the FCC for
    its openness in considering market-based solutions that will result in
    the highest and best use of spectrum and accelerate innovation in this
    country.
    Conclusion
        We appreciate the Committee's interest in learning more about our
    evolving industry and the impact the industry has on various customers.
    At a time where access to secure and reliable communications impacts
    everything from the economy to national security, Intelsat is pleased
    to be playing a major role in innovating our Nation's infrastructure.
    Intelsat is dedicated to envisioning the future and enabling
    connectivity everywhere and anywhere on the planet.

        Senator Wicker [presiding]. Thank you very much, Mr.
    Spengler.
        Mr. Wyler.

       STATEMENT OF GREG WYLER, FOUNDER AND EXECUTIVE CHAIRMAN,
                  WORLDVU SATELLITES LIMITED (ONEWEB)

        Mr. Wyler. Thank you, Senator Wicker, Ranking Member
    Nelson, and members of the Committee. Thank you for the
    opportunity to testify before the U.S. Senate about OneWeb's
    mission to bridge the digital divide. We will spend billions to
    build the world's first large-scale constellation and launch
    our fleet in the coming months.
        We will begin bridging the American digital divide in 2019
    by enabling low-latency broadband coverage for every home,
    school, and hospital in Alaska. In 2020, we will reach every
    square mile of America. This means a brighter future for the
    nearly half of Americans with substandard Internet access,
    primarily in rural areas. This will be a foundation for
    ubiquitous 5G service, the Internet of Things, connected
    vehicles, telemedicine, and online education.
        Our initial system, with peak speeds of 500 megabits per
    second, is just the beginning. Our second constellation,
    planned for 2021, will enable ultra high speeds beyond 2.5
    gigabits per second, faster than fiber, direct to every rural
    home using a small lightweight antenna.
        We have a third constellation planned for 2023, which will
    continue to increase our total capacity until we can support 1
    billion consumers globally by 2025. In total, we look to invest
    nearly $30 billion to achieve our mission of fully bridging the
    global digital divide by 2027, and this will start right here
    in the United States.
        Today, total satellite capacity is a few terabits per
    second. OneWeb will have 7 terabits per second in its first
    constellation, over 120 terabits per second in its second, and
    has achievable plans to reach nearly 1,000 terabits per second,
    that's one petabit per second, by 2025.
        Over the past few years, we have raised nearly $2 billion
    from caring shareholders with industry and distribution
    expertise, including Softbank, Qualcomm, Hughes, Intelsat,
    Coca-Cola, the Airbus Group, and the Virgin Group.
        To build this system, we needed to break new ground in
    satellite development. In March, we began construction of the
    world's largest purpose-built satellite manufacturing facility
    in Exploration Park, Florida. This $85 million project will
    soon produce 15 satellites per week. This factory is creating
    250 high-paying jobs--high-paying engineering jobs--with
    multiplier effects for the regional economy.
        With thousands of satellites to manufacture, hundreds of
    rockets to order and launch, and billions of people to connect
    to our system, this is not easy. But today, OneWeb satellites
    are under construction, the rockets are in place, and our first
    launch is in May.
        OneWeb was founded with the mission of enabling affordable
    access for everyone, and we must do so while protecting our
    precious space environment. I have spent the past 15 years on
    this mission. It's a life's mission and one deeply held by all
    of us.
        In 2003, I began connecting hundreds of schools and
    communities in Rwanda, building the first fiber to the home and
    the first 3G network in Africa. With each connection, I saw the
    impact on individuals and communities. I also saw the potential
    of small ISPs and telecom operators, which is why OneWeb will
    partner with, rather than displace, local operators and
    aspiring entrepreneurs.
        In 2007, I founded O3b networks, which has launched 12
    satellites. O3b has the distinction of not only being the
    fastest and lowest latency satellite system to date, but also
    the only NGSO broadband system to not have gone bankrupt, which
    illustrates the challenges and fragility of this industry.
        This is hard, but we must overcome these challenges
    responsibly. Together we must lead in setting the global
    standards for protecting our fragile space environment because
    the consequences if we do not are dire: space debris, reentry
    casualties. These are serious risks which come from substandard
    components and a lack of an adequate regulatory environment.
        We know that a single impact between satellites can cause
    thousands of debris fragments. At OneWeb, we recognize the
    responsibility of being on the leading edge, and as the first
    to launch a large constellation, we have taken great care not
    to physically overlap our orbit altitude with prior filed
    systems to reduce the risk of inter-constellation debris
    creation. These best practices have been adopted by others, as
    there remain many altitudes for safe space operations.
        Ranking Member Nelson, Senator Wicker, and the members of
    the Committee, thank you for the opportunity to testify today.
    We know you understand the moral urgency of this mission. We
    know you see the issues as you visit rural townships and
    populations where millions of Americans live without access. We
    are not here to ask you to get behind us with CAF or other
    government subsidies; we are here to stand by your side and
    bring connectivity, jobs, and economic prosperity by connecting
    people in rural America to their opportunities.
        [The prepared statement of Mr. Wyler follows:]

       Prepared Statement of Greg Wyler, Founder and Executive Chairman,
                      Worldvu Satellites Limited (OneWeb)
        Chairman Thune, Ranking Member Nelson, and Members of the
    Committee, thank you for the opportunity to testify before the United
    States Senate about OneWeb's mission to bridge the digital divide with
    our exciting new satellite technologies. This is a great time to
    discuss our progress as we are investing over $4 billion to build the
    world's first large scale satellite constellation, and will begin
    launching our fleet in the coming months.
        In 2019 we will begin bridging the American digital divide by
    making low latency broadband available for every citizen in Alaska. The
    next year, OneWeb's broadband will reach every square mile of America
    and its territories, leaving no one behind. This means a brighter
    future for the half of America with substandard access to the internet,
    primarily in rural areas, and will be a foundation for ubiquitous 5G
    service, enabling the Internet of Things, connected vehicles,
    telemedicine and online education. Importantly, as a global system, we
    will connect American small businesses to the 50 percent of global
    markets that currently have limited or no access.
        Our initial system with peak speeds of 500mbps is just the
    beginning. Our second constellation, planned for 2021, will augment the
    first and increase this speed, up to 2.5gbps, for every rural home.
    Beyond this we have a third constellation planned for 2023 which will
    continue to increase our total capacity until we can reach 1 billion
    users globally by 2025. In total we will potentially invest nearly $30
    billion to achieve our mission of fully bridging the global digital
    divide by 2027.
        OneWeb's capacity is more in line with a terrestrial system than
    historical GEO satellites. For instance, the total GEO satellite
    capacity today is several terabits per second (tbps). In comparison,
    OneWeb will have seven tbps in its first constellation, over 120 tbps
    in its second, and approach one Petabit per second (1000 tbps) by 2025.
        Importantly, access to our services will be simple. The services
    will be offered by local ISPs and telecom providers. The terminals will
    be small, inexpensive, and lightweight so they can be installed by
    anyone. They will be low power so they can operate from built-in
    batteries or a solar panel. This unique aspect of OneWeb's system
    design will be a game-changer for those with intermittent power or
    those without power in emergency situations, rural areas and developing
    countries.
        With thousands of satellites to build, hundreds of rockets to order
    and launch, and billions of people to connect to our system, this is
    not easy. But we have made significant progress. OneWeb's production
    satellites are under construction. The rockets are in place and our
    first launch is in May.
    OneWeb's System Design and Accomplishments
        In the past few years, OneWeb has made remarkable progress towards
    achieving its mission. As the first filed and announced direct to
    consumer NGSO constellation, OneWeb has been a trailblazer in design
    and manufacturing, and has achieved many milestones:

       Formed in 2012, years before any other applicant, OneWeb
            designed and filed for the first NGSO system capable of
            providing low cost consumer broadband;

       OneWeb has raised nearly $2 billion in equity from
            shareholders with deep industry and distribution expertise,
            including Qualcomm, Hughes, Intelsat, Coca-Cola, Airbus Group,
            the Virgin Group, and the Softbank Group;

       OneWeb is one of the world's largest launch purchasers and
            has reserved and/or manifested launch capacity from Blue
            Origin, Arianespace and Virgin Galactic;

       As the first applicant at the FCC, we spearheaded the use of
            NGSO spectrum combined with a sustainable satellite design to
            reach rural populations, and received the first U.S. market
            access grant from the FCC in June 2017; and

       OneWeb innovated the first low-cost, high performance NGSO
            satellites for mass production, leading to the creation of the
            world's first and largest purpose-built production satellite
            factory responsible for 250 new engineering jobs in Exploration
            Park, Florida.

        To build this system we needed to break new ground in satellite
    manufacturing. Earlier this year we did just that, and our $85 million
    specialized facility in Florida will soon start production. Capable of
    producing 15 satellites per week, this new factory has also had
    multiplier effects for the regional economy. For instance, this summer
    RUAG, a space components manufacturer, moved its facilities from
    Switzerland to Titusville, FL to be near our factory. Their foreign
    direct investment in America is creating 80 new jobs in an area which
    has been hit hard following the retirement of the Space Shuttle.

        Figure 1: OneWeb Satellites Factory under construction in
    Exploration Park, FL
    Our Mission
        OneWeb was founded with the mission to bridge the digital divide.
        I have spent the past 15 years focused on this mission, one that is
    deeply held by many if not all of you. After selling my first company
    which specialized in semi-conductor cooling technologies, I traveled to
    Rwanda, Africa. It was then a country torn by history and without
    connectivity. In 2003, I began connecting hundreds of schools and rural
    communities to the internet, building the first fiber to the home and
    the first 3G network on the continent.

        Figure 2: Fiber installation in 2003 in Kigali, Rwanda

        With each connection, we saw the positive impact of community
    access on education, telemedicine and opportunity. I saw children who,
    for the first time, could explore their personal interests as deeply as
    they liked. With local teams, we pushed the boundaries to deploy the
    newest technologies in some of the hardest to reach and neediest rural
    populations in the world. It was there that I also saw the potential of
    small ISPs and telecom operators, which is why OneWeb will partner
    with, rather than displace, local operators and aspiring entrepreneurs,
    and much of our systems revenue will remain in the communities that it
    connects.
        In 2007, I founded O3b Networks, which stands for the ``other three
    billion'' and has launched 12 satellites. O3b has several distinctions.
    Not only is it the fastest and lowest latency satellite system to date,
    but it is also the only NGSO communications system to not have gone
    bankrupt. Today O3b, now fully owned by SES, is considered a success,
    but there is an important lesson here. This is a fledgling industry
    where failure is normal, and building these systems requires a deep and
    passionate commitment for something more than just financial returns.
        In 2012, I founded OneWeb, continuing the commitment to close the
    digital divide. Today, I am glad to see the Committee properly
    considering the leading role new satellite technologies can play in
    next generation broadband systems which will have higher performance,
    better reach and resiliency for emergencies.
        Recently, Hurricane Harvey disrupted terrestrial communications
    networks across the southeastern U.S. Hurricane Maria also brought
    catastrophic damage to Puerto Rico, making cellular service almost
    nonexistent after damaging nearly 90 percent of cell sites.\1\ In the
    aftermath of these natural disasters, satellite networks provide vital
    connectivity faster than any other option. And the faster communities
    reconnect, the faster recovery starts. OneWeb's highly resilient
    network will provide another level of critical connectivity to first
    responders and victims when tragedy strikes.
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    this-is-how-bad-cell-service-in-puerto-rico-is-right-now/
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    Challenges and Recommendations
        Bridging the Digital Divide must include sustainable development.
    This means bridging the divide without harming space for future
    generations. We cannot overlap constellations in a way that would risk
    creating space debris, or endanger humans on Earth by using less
    expensive materials which do not degrade on re-entry. OneWeb has been
    focused on sustainable space development since the beginning.
        We know that a single impact in space can cause thousands of debris
    fragments, fouling orbital altitude ranges for hundreds, if not
    thousands, of years. The Iridium/Cosmos event is just one of several
    costly, environmentally damaging examples. To prevent collisions and a
    cascading of damaging events, large scale constellations must have a
    minimum altitude spacing (MAS) for safety.
        We were the first to design a large constellation and took great
    care not to overlap any prior filed system. For the sake of future
    generations, we cannot take the collision risk of overlapping
    constellations. There are many altitudes available for safe, separated
    operation, yet with tens of thousands of satellite filings in process,
    overlapping may happen as there are currently no meaningful regulations
    on this matter.
        The last significant U.S. regulation on space debris is more than
    20 years old. The international treaty called the Outer Space Act was
    adopted in 1967. This has created a regulatory gap, and while many
    countries are drafting papers, this is a place where the United States
    can take a leadership position and drive standards of excellence and
    stewardship worldwide. NASA is conducting a study on large
    constellations due later this year, and at a minimum this can inform
    such standards.
        We have worked with the industry, including Boeing, to develop best
    practices for an appropriate MAS. A MAS of 125km can help isolate the
    impact of any single system which suffers a collision. While many
    satellites have onboard propulsion and accurate station-keeping, we
    also know that satellites fail, and when they do the potential for
    collision rises. In such a case, keeping safe distances between
    constellations protects against cascading events.
        OneWeb is also pioneering the use of grappling mechanisms for the
    removal of satellites. We will include these grappling mechanisms on
    all of our satellites for future space tugs, and we hope to open source
    these designs so every constellation may use a standard grappling
    interface to remove failed satellites. The development of satellite
    service technologies, like those at the West Virginia Robotic
    Technology Center, will play an important role in protecting altitudes
    from the many potential failed satellites.
        OneWeb also pioneered new standards calling for de-orbit within
    five years. We carry enough onboard propulsion to safely and accurately
    de-orbit each satellite. We are glad to see others adopting this
    practice as well, as it is crucial to ensure satellites do not remain
    in the small and fragile LEO environment.
        Related to the five year de-orbit period, we have also ensured our
    satellites will disintegrate on re-entry. We do not use materials which
    will survive de-orbit. While more expensive and more challenging, it is
    the proper practice rather than facing the possibility of fragments on
    the ground, and possibly causing re-entry casualties. While there is an
    old rule requiring individual satellites to have less than a 1:10,000
    chance per year of causing a re-entry casualty, this rule needs to be
    updated to apply to large constellations that, unchecked, will drop
    tens of thousands of fragments.
        Space is an unforgiving environment. Satellites can fail, and re-
    entry is always a concern. Just last year China lost control of its
    Space Station Tiangong-1. Operating at 349km, its re-entry date is
    predicted between October 2017 and April 2018. While this is only a
    single space object, the largest fragments that survive re-entry are
    predicted to be 220lbs. This is a near-term reminder that we should
    keep a vigilant eye on space-related safety as we look to launch
    thousands of objects over the coming years.
        The positive news is that space safety can be straightforward when
    thoughtful, common-sense rules are applied. Operating costs and
    engineering challenges may increase slightly, but abiding by such
    minimum rules ensures satellites will continue to play a larger role in
    the Nation's and the world's communications ecosystem, and that the
    American space sector will continue to grow.
        We look forward to working with the Committee, other stakeholders,
    Federal regulators, and others to address these issues and ones yet to
    emerge.
    Conclusion
        Mr. Chairman, Ranking Member Nelson, and Members of the Committee:
    thank you for the opportunity to testify today. As you have seen, we
    are on the cusp of bridging the digital divide using new incredibly
    high-performance satellite technologies.
        We know you understand the moral urgency of this mission. We know
    you see the issues as you visit rural townships and populations, where
    millions of Americans live without access to quality education,
    telemedicine and entrepreneurial opportunities.
        We are not here to ask you for Connect America Funding or other
    government subsidies. OneWeb was able to raise its funding because its
    novel technologies can sustainably achieve this goal without relying on
    such subsidies.
        We are here to stand by your side, and with many others, help bring
    connectivity, jobs and economic prosperity to rural America and the
    world's rural populations.

                  STATEMENT OF HON. ROGER F. WICKER,
                     U.S. SENATOR FROM MISSISSIPPI

        Senator Wicker. Thank you very much. And thank you to all
    of our witnesses.
        Mr. Dankberg, let me begin with you. As you know, I'm from
    a rural state, and many members of this Committee are from
    rural states, and we are very much interested in bridging the
    digital broadband divide in those areas.
        Recently, Senator Cortez Masto and I introduced the
    Streamlining Permitting to Enable Efficient Deployment of
    Broadband Infrastructure Act, the SPEED Act, and it deals with
    the permitting process for deployment of broadband. This will
    give--this will help accelerate deployment in rural America in
    such areas as 5G.
        As you know, Congress and the President are working on
    infrastructure, and we would like to deal with that as soon as
    we get through with the tax packages, our next big issue.
        What are your thoughts on how Congress can ensure that
    satellite providers can be included in any broadband
    infrastructure proposal?
        Mr. Dankberg. Thank you, Senator Wicker, for your question.
    We are very anxious to participate in delivering broadband more
    to rural America. The thing that we would find the most useful
    would be to have a technology-neutral policy which would allow
    whatever infrastructure investment is made to deliver the
    greatest amount of broadband service to the greatest number of
    people with the best service at the lowest prices. That would
    be our suggestion for getting the most value out of investment
    that we make.
        Senator Wicker. Well, OK. Technology-neutral in terms of
    where we put the investment, should this be done at the FCC
    level or according to the statute?
        Mr. Dankberg. Yes, and one of the opportunities, and the
    CAF program, the Connect America Fund program, has been
    mentioned already. The Connect America Fund program has a
    concept of a reverse auction where different providers using
    different technologies could make bids to say, ``How much would
    it cost to deliver this broadband to this area with these
    features?'' And there are different technology attributes that
    the FCC has looked at: one of the dominant ones is speed,
    another one is bandwidth, a third one is latency, a fourth one
    is price.
        What we see in the market--and our experience in the in-
    flight connectivity business is a good example of this--is that
    the things that really dominate users' perception of the
    quality of broadband is the speed of service that they get and
    the amount of bandwidth that they get, that is, not having to
    have usage caps that would limit the amount of bandwidth that
    they use. And the next one would be, it's tied to both of
    those, would be price.
        So our recommendation would be to use something like a
    reverse auction process, but to use market-based factors that
    would reflect the desires of subscribers for getting the best
    service that they can. And that would also allow the government
    to achieve the greatest penetration of subscribers that is
    possible, given that amount of money.
        Senator Wicker. Are we going to need to amend the statute
    on that, or does the agency already have the authority?
        Mr. Dankberg. So far, our perception is that the FCC has
    not weighted it in a market-reflective way, that the weighting
    that they've put on latency is so high that a satellite
    service--I'm going to give you an example--a satellite service
    that would deliver one or two hundred megabits per second at a
    given price and to more people would be penalized so severely
    that a lower latency service of even 10 or 25 megabits per
    second may be selected in the auction. We don't think that
    those weighting factors accurately reflect what subscribers
    really want in a broadband service.
        Senator Wicker. Ms. Cooper, were you wishing to weigh in on
    that issue?
        Ms. Cooper. Yes. Thank you, Senator. We agree that there is
    some review needed of any program that's looking at broadband
    partly because you want every tool available to you as you try
    and reach every citizen in your state.
        For the Connect America Fund, we found for us the latency
    issue is not our chief concern because we believe our low Earth
    system will have latencies in 25 to 35 milliseconds. But we
    found an area where satellites have simply been precluded from
    bidding because the last generation of satellites didn't meet
    some of those speed and latency requirements. So instead of a
    wholesale exclusion of an entire category of technology, we
    would just recommend that the Committee look at any of the
    programs or Federal incentive or infrastructure programs to
    ensure that anything that qualifies, any technology that meets
    those requirements, can bid.
        I would just say that satellites are sort of structured
    differently in that the incentive is not to build the
    infrastructure. All the companies here are investing and
    building in the connectivity. The infrastructure on the ground,
    whether it's to an end location, a terminal for the consumer,
    or potentially some gateways to manage traffic, is where that
    sort of scale is going to come in, and we may end up coming
    back to you with some recommendations to make sure those
    elements can be captured as well. But none of us here,
    certainly not SpaceX, are counting on that investment in our
    space constellation to come to fruition.
        Senator Wicker. Thank you.
        Ms. Cortez Masto, it appears you are next. The last shall
    be first.
        Senator Cortez Masto. Thank you. Thank you, Mr. Chair. I
    know my colleague Senator Sullivan has to preside, so I defer
    to him. He wanted to ask a question.

                    STATEMENT OF HON. DAN SULLIVAN,
                        U.S. SENATOR FROM ALASKA

        Senator Sullivan. Thank you, Senator Cortez Masto.
        Mr. Chairman, I just have one quick question before I go
    preside, and it's to Mr. Wyler.
        Mr. Wyler, you talked about space debris, and Senator
    Booker and I have had some concerns about this. The Department
    of Defense Space Surveillance Network currently tracks 22,000
    pieces of orbital debris that no longer serve a useful purpose.
        Can you--and perhaps, Ms. Cooper, if you want to weigh in
    on this--can you talk about what your concerns are? And of the
    Federal agencies we have tracking this, nobody seems to be in
    charge. Who should be in charge?
        Mr. Wyler. Thank you for the question. It's very important,
    Senator Sullivan. One, if there is a collision of satellites,
    we will--all the opportunities you heard today, all the
    wonderful things we could do for humanity and rural populations
    will vanish in the blink of an eye. We cannot have that. We
    have to make sure that all of the satellite systems have their
    own altitudes, that they're not all at the same place
    physically at the same time.
        And so while we're tracking 22,000 space debris, a huge
    number of space debris was created at about 800 kilometers a
    few years ago when Iridium and Cosmos satellites hit each
    other, creating thousands of new fragments to track. These
    fragments then hit each other again and create new fragments,
    creating more and more space debris. As space debris numbers
    rise, they will impact and have impacted many other satellites.
        So the important thing to do, first of all, is to just keep
    things separated. Make sure everybody is at their own
    altitudes, like airplanes, or cars driving on other sides of
    the roads. This is a physical issue.
        Now, who should oversee this? That's a very interesting
    question. Right now, the FCC does not have the tools to do it.
    NASA is studying this at great length. And the FAA is looking
    into it. It's really up to you, in the Congress and the House,
    to determine what we should be doing next and to form some sort
    of a committee and oversight and take the lead for America in
    what needs to be done because we will lead this for the rest of
    the world, which is asking the exact same questions.
        Senator Sullivan. Thank you.
        And, Mr. Chairman, I'd like to yield back full-time to
    Senator Cortez Masto, who was kind enough to let me skip in
    line so I can go preside. Thank you.
        The Chairman [presiding]. Thank you, Senator Sullivan.
        And we'll go to Senator Cortez Masto.

               STATEMENT OF HON. CATHERINE CORTEZ MASTO,
                        U.S. SENATOR FROM NEVADA

        Senator Cortez Masto. Thank you. Thank you, Mr. Chair.
        Thank you all first of all. Great conversation today. As
    you know, I'm from Nevada, 17 counties, 15 of which are rural,
    and rural broadband is so important. So I think this
    conversation is incredible. I'm very excited about the future.
        I want to follow up on the line of discussion that we've
    had, though, about the use of reverse auctions and the process
    that should be allowed to reflect the consumers' wants. And I
    appreciate you bringing up C-band with latency and price.
        Can you talk a little bit about how proposed satellite
    Internet offerings and what they provide to consumers? Do your
    proposed satellite Internet offerings provide consumers with
    unlimited broadband access, or are there going to be data usage
    caps imposed to manage that capacity? I'll ask all of you,
    whoever. Yes, thank you.
        Mr. Dankberg. OK, yes, I'll start with that. Yes. So we
    have plans of both types, we have both effectively unlimited
    plans, and we have plans that have usage caps. The plans that
    have usage caps, we try to set the usage caps at levels that
    most people would not hit. What we have found in the market is
    that hitting the usage caps is basically the greatest source of
    dissatisfaction for users, so in our new satellites, what we've
    done is we've put--and I mentioned this in my testimony--we've
    put more than double the bandwidth that we had in our first-
    generation satellite and our second one. The third generation
    that we're building is 10 times.
        And the upshot of all that is that we're working on plans
    that will eliminate usage caps for more and more of our
    subscribers, that we'll be able to go to market with
    competitively priced plans without usage caps.
        Senator Cortez Masto. Thank you. And that was my follow-up,
    was, Is it going to be cost competitive? And that's the intent,
    is to be cost competitive and do away with the usage caps is
    what I'm hearing.
        Mr. Dankberg. Yes, yes. That is--that is exactly right.
        Senator Cortez Masto. OK. I'm happy to hear from----
        Ms. Cooper. Thank you for that question. I think, like
    ViaSat, SpaceX is an engineering company. We love solving
    difficult problems. And the limiting factor here is the amount
    of capacity that you have on orbit that you can share among
    your consumer--consumers and customers. For our part, we are
    looking at pushing the boundaries of the capacity of each
    satellite and then, of course, having many of them, over 20 in
    view from any spot in the U.S. So customers can aggregate
    capacity where there is a concentration of demand and diffuse
    capacity where those end users are different, more widely
    geographically dispersed locations.
        By building more capacity on orbit, we'll be able to
    network--manage our network and groom our capacity in a
    different way. We are still several years away from providing
    customer service, so we can't answer with the kind of
    specificity that ViaSat can with their existing customers, but
    the real trick that we're focused on now is removing the upper
    limit of capacity constraints that drive those kinds of network
    management questions.
        Senator Cortez Masto. Thank you. I didn't know if the
    other----
        Mr. Spengler. Yes. Intelsat is a bit different than other--
    others on the panel today. We are a business-to-business
    provider, we're providing infrastructure to operators: it could
    be a wireless operator that is looking to extend services into
    remote and rural areas, it could be a provider of WiFi in-
    flight broadband, or they use our network.
        So our responsibility and our focus is developing that
    infrastructure that is extremely efficient and very cost
    effective, delivering the speeds that those providers need.
        Senator Cortez Masto. OK.
        Mr. Spengler. And so the end user customers are really the
    customers of our customers and partners.
        Senator Cortez Masto. OK.
        Mr. Wyler. So all this talk of subsidies is confusing for
    me as a entrepreneur. We've raised billions of dollars and are
    raising billions more because we are building a system that can
    operate and meet the needs of people, not meet the needs only
    if the government gives us money to help it meet the needs.
        Now, I cut my teeth in Africa building systems for people
    who made two dollars a day, you know. So they, of course,
    couldn't afford subsidies, but we had to build a system that
    could meet their needs, right? Because in those countries, they
    don't have anybody giving them anything. So if we were to raise
    this kind of money to build a system, it really needs to be
    able to operate without subsidies. It needs to be able to
    provide services at affordable rates for the people in these
    communities.
        So that's where all the subsidy conversation--I think we're
    in this point where it's like subsidy is a given, now let's
    figure out how to dish it out. Well, why don't we invent
    technologies that doesn't need--that don't need subsidies, like
    most every consumer product people in this room today buy? So
    this is where I'm sort of trying to figure out, I think we're
    taking the subsidy as a given as opposed to saying maybe we
    should have technologies that don't need it, and focus on that.
        Senator Cortez Masto. And your technology is one that will
    address the consumer's need and the consumers'----
        Mr. Wyler. We're addressing market----
        Senator Cortez Masto. Yes.
        Mr. Wyler.--where the hardest hit--this is where I spent my
    time--we're addressing the system to focus on the people in the
    most need and to do it in a profitable way, to meet their
    needs, and provide broadband that gives them oxygen-like
    capacity. They wake up in the morning, they have it, they don't
    think about it, just like we take every breath every day.
        Senator Cortez Masto. Thank you.
        I notice my time is up. Thank you very much. I appreciate
    you being here.
        Thank you, Mr. Chair.
        The Chairman. Thank you, Senator Cortez Masto.
        Senator Hassan.

                   STATEMENT OF HON. MAGGIE HASSAN,
                    U.S. SENATOR FROM NEW HAMPSHIRE

        Senator Hassan. Thank you, Mr. Chair. And thank you and the
    Ranking Member for holding this hearing.
        And to our witnesses today, thank you so much for being
    here and for the work you do.
        Mr. Wyler and Ms. Cooper, I just wanted to start with a
    question for the two of you, and, first of all, thank you for
    your testimony.
        I come from a very rural and geographically diverse state.
    We're small, but we've got mountains, we've got seacoast. And
    just a few weeks ago, thanks to the Chairman and Ranking
    Member, we had a field hearing in New Hampshire to explore the
    issue my constituents face when it comes to connectivity. And
    one of the more humorous parts of the hearing was when one of
    the providers said we have to be careful not to build
    duplicative capacity, and my constituents were like we just
    would like capacity, you know, we're not worried about
    duplication yet.
        So I guess the question is, How can satellite provide a
    broadband solution for states like mine? And what's the role of
    satellite in a 5G America, especially with so many of our
    places, even though the maps may say we've got connectivity,
    but in reality, our citizens will tell us they don't?
        So, Ms. Cooper, why don't we start with you.
        Ms. Cooper. Thank you. That's a terrific question. I think
    it's the problem that all of us here are geared to solve using
    different architectures and different technology approaches,
    but I think it underlies the goal that all these companies here
    on the panel have.
        For us, we are looking at these constellations of
    satellites with multiple satellites in view so that you're not
    bound to one single path to reach a specific satellite. You
    would have multiple paths to multiple satellites, which we
    think will allow some currently blocked customers to have
    access to an infrastructure of high-speed capability and
    reliability.
        And then the next step is to make sure that the customer
    can afford a service that is appropriate to what their demands
    are, and that's the next step, of ensuring that you drive the
    cost down of making lots of satellites, which is I think a
    strong suit of SpaceX and using our manufacturing and
    innovation history to drive the costs of other complex
    satellite and launch systems downward. So, and also then the
    cost of deploying those systems has to be driven down,
    certainly a factor of our launch heritage and our reusability.
        So all those pieces bring to bear these two problems. One
    of them is making sure you actually can reach the customer, and
    the second is making sure that the infrastructure that you're
    building that will be available, always on, is costly--cost
    effective and easily deployed from an architecture perspective.
    That's I think our approach.
        Senator Hassan. Thank you.
        And, Mr. Wyler, did you want to comment?
        Mr. Wyler. Sure. Sure. Growing up in Boston on the border
    of New Hampshire and spending all the weekends there, I know--I
    know your state well, and I understand the issues and the
    challenges, especially when you get in the White Mountains
    where you actually can't see through the mountain to hit
    satellites. And so lots of people--and this is sort of the same
    problem in Alaska and a lot of the northern states----
        Senator Hassan. Right.
        Mr. Wyler.--with a lot of satellites, you can't see, you
    literally just can't see them.
        So our satellites remain very high in altitude, almost
    straight up at all times, so you always have a vision of one or
    two or multiple more satellites at a time.
        The key is the terminal. The key is to have something
    small, lightweight, inexpensive. And the size is actually less
    important than the weight and the cost. And that's where people
    get--no one in rural New Hampshire, they're not going to care
    whether it's 1 foot, 2 foot, or 10 feet. They're going to care,
    ``Is it cheap? Can I install it easily? And do I get really
    good Internet access?''
        Senator Hassan. Right.
        Mr. Wyler. So what we're doing is bridging--we're flipping
    rural on its head. We're making rural faster than suburban, and
    so it's no reason that rural has to have that penalty.
        Senator Hassan. OK. Thank you.
        And, yes, Mr. Spengler.
        Mr. Spengler. Yes, I just wanted to add to that. I think we
    all believe that to bridge the digital divide, it's going to
    take a combination of a lot of different technologies to get
    there. It may be direct-to-consumer by satellite, it may be
    enabling terrestrial networks in new ways.
        But I think people don't realize today that satellite is
    currently in the backbone of a lot of wireless networks around
    the world who are providing 2G and 3G services in lesser
    developed countries. And Intelsat today is providing 4G
    services, helping wireless companies extend their network in 4G
    in the U.S. So 5G is an extension of that.
        And we firmly believe that when it comes to rolling out 5G
    across the country, it is not going to get everywhere without
    the support of satellite, and satellite solutions are going to
    be essential to reaching those hard-to-reach locations and
    extending those capabilities out there in the future.
        Senator Hassan. Thank you.
        And, Mr. Dankberg, did you have anything to add?
        Mr. Dankberg. No, I think that satellites today, if you
    look at--we think a great model is satellite TV where 30--over
    30 million people have satellite TV. And our ability to provide
    satellite Internet basically corresponds exactly to satellite
    TV, a competitive service.
        Senator Hassan. Well, thank you. I see my time is up. I
    have two other questions that I'll submit to you for the
    record, one about planning for resiliency in the light of
    natural disasters, and the other about debris in space, and I
    look forward to your answers. Thanks.
        The Chairman. Thank you, Senator Hassan.
        Senator Nelson.
        Senator Nelson. I saw firsthand what satellite
    communication does in a place like Puerto Rico, since so much
    of it was--you couldn't communicate because there wasn't
    electricity, even though they were bringing in temporary cell
    towers. So I was provided a satellite phone when I went.
        I'm curious as we're going forward, talk about the role
    that your satellites will play with regard to something like
    autonomous vehicles.
        Mr. Spengler. I can start. So as I mentioned in my opening
    remarks, we see satellite as playing a important role in the
    connected vehicle. And, again, the connected car is not just
    going to be connected by satellite, it's going to be connected
    by all sorts of wireless technologies, as it is today, and we
    know the cars are getting more and more sophisticated.
        So it's leveraging each communication's technology for its
    particular role and leveraging its strength to provide a safe
    environment for cars and safe environments on the roads that
    will ultimately lead to the fully autonomous vehicle.
        What we're working on is a technology partnership with an
    antenna company that will shrink satellite antennas so that
    they're small enough to fit into the roof of a car, the company
    is called Kymeta, and this will enable software download to
    mapping downloads on a point-to-multiple-point basis to
    thousands and thousands of cars at one time. Keeping that data
    up to date is going to be essential for safety and enabling
    those future features in cars.
        Senator Nelson. And how does that integrate with the GPS
    system?
        Mr. Spengler. Well, GPS, of course, is connecting cars
    today, and it already exists. And so it is all going to be tied
    together through software and systems in the car at one point
    in time to make sure that they're all working together to
    enable a safe environment for passengers on the roadways.
        Senator Nelson. And as you answer, Mr. Wyler, also bring in
    spectrum. There's a real competition for spectrum by
    terrestrial-based broadband services as well as satellite. So
    what's the right balance?
        Mr. Wyler. Excellent question. And I like that you started
    this off with the first responder because this was actually an
    initial focus. We put a lot of resources into developing an
    antenna that would go on the top of a car or be built in, which
    also includes LTE and 3G connectivity for the passengers in the
    surrounding area.
        And a unique feature of this for a first responder. So
    imagine a fire vehicle, a fire truck, and you put the antenna
    on it, and wherever you go, when the AT&T or Verizon signal
    falls down, it's listening to the signal strength, and it turns
    on in milliseconds, maintaining your call. It tells your phone,
    ``Hey, I'm here, I'm your local antenna,'' when the signal
    strength is low, and then when the signal strength comes back
    up, it automatically shuts off.
        A unique feature of this is as the vehicles come together,
    they actually know where each other are and form their own
    network. So you could walk among the vehicles with your normal
    cell phone and be using your current cellular operator,
    whichever you have, in any country of the world.
        So this would be unique and important for places like
    Puerto Rico, for instance, and Florida, where a hurricane
    comes, and every police officer and every fire vehicle and
    every emergency vehicle will actually be its own cell system
    with the resiliency that satellite brings it.
        Senator Nelson. So, Ms. Cooper, now, there are a dozen
    applications in front of the FCC for various new satellite
    constellations. So what challenge does this pose to your
    company? And how are we going to have coordination and
    spectrum-sharing protocols in the future?
        Ms. Cooper. Thank you, Senator. Part of that space
    renaissance that I referenced is an excitement about using this
    concept of low Earth orbiting satellites to solve complex
    problems on Earth. There were 32 different proposals filed at
    the ITU, and 11 of those companies have filed either to ask for
    a U.S. license for their constellation, such as ours, or a
    license to provide a foreign system with service to the U.S.
        Not all of those will succeed. This is a complex set of
    problems. There's an engineering and design and investment and
    concept and bring-to-market problems that all need to be kind
    of brought to bear.
        Companies like SpaceX love to solve these kinds of
    difficult complex problems, and we think we have a real edge
    because we can draw through our design and manufacturing
    technique and our launch capability to deploy this kind of
    system.
        The FCC has done a terrific first step to review and update
    the rules for this kind of satellite constellation, which
    hadn't been updated in about 15 years. And they rightfully put
    the onus on sharing spectrum on the operators to share and
    negotiate and coordinate. And if they can't come to agreement,
    the FCC will designate and split the bands. Every applicant in
    the round said that is the least effective outcome, is to have
    the FCC dictate and divide and designate spectrum. So the best
    outcome will be between smart systems, better incentivized to
    continue to innovate, and incentivize to continue to
    coordinate.
        And this is also true internationally. The ITU has similar
    encouragements internationally for other governments to apply
    for systems to coordinate operator to operator, and make the
    best use of the airwaves by applying those negotiations and
    smart technologies.
        Thank you.
        The Chairman. Thank you, Senator Nelson.
        Senator Gardner.

                    STATEMENT OF HON. CORY GARDNER,
                       U.S. SENATOR FROM COLORADO

        Senator Gardner. Thank you, Mr. Chairman.
        And thank you all for your testimony and time today. This
    is an incredibly exciting technology that we continue to
    develop and that you continue to deploy, and I thank you for
    it.
        It used to be when I was growing up that satellite
    communications had sort of a James Bond feel to it. If you saw
    a satellite phone, it was the size of a cinderblock, and it was
    really amazing that you could see that. We advanced then to,
    you know, cell phone technologies and the bag that dimmed the
    headlights on the car when you plugged it in. So then, you
    know, we see this--what I think you've done is sort of the
    democratization of satellite technology through broadband
    deployment, and it's incredible, particularly for a state like
    mine, where we have vast swaths of rural areas from the high
    plains on the east side to the beauty of the mountains and the
    valleys as a result, and some of the challenging terrain when
    it comes to communication on the western part of Colorado.
        And so, Mr. Dankberg, obviously I greatly appreciate your
    presence in Colorado, the work you do, the hundreds of
    employees that you have there. I appreciate what you do to help
    connect all of us. My staff informs me they are not pleased
    with your connections on in-flight satellite efforts because I
    can send them e-mails and articles and they're very upset at
    that.
        [Laughter.]
        Senator Gardner. But I appreciate it, so thank you.
        In the 1980s, your business was started and grown
    dramatically since then. You talked about in-flight satellite.
    We've had talk on autonomous vehicles, vehicle-to-vehicle
    communication, what satellites can do in terms of that. What
    other areas can satellites provide for that unique niche, too,
    as well as satellite technologies may be preferred in certain
    circumstances? If you can talk about those two ideas.
        Mr. Dankberg. Yes. Thank you, Senator Gardner. And also
    thank you for your leadership on the AIRWAVES bill and your
    recognition of the importance of satellite.
        One of the areas that we haven't talked about very much is
    our national defense and homeland security. And satellite
    provides a capability to connect people anywhere and to protect
    them. And there are many applications that we do for the
    Defense Department with satellite communications. We identify
    the locations of friendly troops and avoid fratricide, it's a
    very important application.
        One of the things I mentioned in my testimony is that we
    provide Internet connectivity to the entire U.S. VIP fleet,
    including Air Force One and Air Force Two, so that the leaders
    of our country can remain in contact with the ground no matter
    what's going on and get up-to-date information over the
    Internet.
        Another really, really important one is for our troops
    overseas. And so one of the big advantages of the satellites
    that we've developed that have so much more bandwidth than
    conventional satellites is that we can make very, very small
    terminals and put them on platforms like helicopters. And so V-
    22, Marine Corps, now has the ability to remain in contact with
    their troops while in flight at broadband speeds. We also
    provide support for Border Patrol as well, whether it's in the
    oceans or over deserted areas. All these areas are very
    uniquely suited for satellite.
        And then the other point is the types of satellites that
    we're making are so new that the amount of bandwidth we provide
    is on the order of 100 times that which is available through
    organic DoD satellites. So the Department of Defense is a very
    heavy user of commercial satellite systems, especially ours and
    the networks that we provide.
        Senator Gardner. Well, you think about the advancements, if
    you go through some of the documentation of September 11, 2001,
    and you talk about the experience that President Bush was
    having on Air Force One while they were watching what was
    happening on that day, they were relying on over-the-air
    transmission, right?
        Mr. Dankberg. Yes.
        Senator Gardner. They didn't have a feed that could give
    them consistent reliable communications to watch the news to
    see what was unfolding. Now, of course, you can provide that.
    So I think, again, just the national security component of this
    is so critical and shouldn't be overlooked.
        Ms. Cooper, you talked a little bit about the constellation
    efforts that you're making at SpaceX. You mentioned in your
    testimony that there will be prototype launches over the next
    several months, and if you need the space for launch, we
    certainly have plenty of space for launch in Colorado.
        With the launch campaign beginning in 2019 with phases of
    satellites launching through 2024, I mentioned the wide swaths
    in Colorado. If low-latency, high-speed satellite
    constellations were an option for rural constituents in
    Colorado, it would mean obviously a big step in overcoming the
    digital divide. When do you think constituents like mine in
    rural Colorado, rural America, could benefit from this? Would
    they see it in 2019? How long would it take? Would they be the
    first to benefit from this? How would that look?
        Ms. Cooper. So our current deployment plans have us sending
    up two test satellites within the next few months so we can
    verify the technology we've been designing and building from
    scratch, and then starting our launch campaign in about 2019,
    and launching the entire constellation over the course of about
    5 years. So we would expect to provide commercial service, as
    early as 800 satellites deployed, which is probably in the
    2020-2021 timeframe. It certainly would be available throughout
    the United States including in Colorado. As a Kansan, we'd like
    to help you out.
        Senator Gardner. Well, just don't take our water, that's
    all I ask.
        [Laughter.]
        Senator Gardner. So just the final thing, and I've run out
    of time here, is CAF-II, you mentioned tech-neutral language
    for things like CAF-II funding. I think it's very important. I
    didn't get a chance to ask that. I asked you and Mr. Dankberg
    the same question. But I think that's very important, that we
    have to make sure that tech neutrality remains a central
    element of the work that we do.
        Thank you for your time.
        The Chairman. Thank you, Senator Gardner.
        Senator Inhofe.

                     STATEMENT OF HON. JIM INHOFE,
                       U.S. SENATOR FROM OKLAHOMA

        Senator Inhofe. Yes, thank you, Mr. Chairman. Being new on
    the Committee, I'm not as familiar as some of the rest of mine,
    with these issues. However, Mr. Dankberg, I have been the
    Ranking Member on the Senate Armed Services Committee, and we
    very interested in the applications that we have and that we
    enjoy. How are we with our competition over there? Tell me who
    else is out there that we're competing with in this realm.
        Mr. Dankberg. Which other nations?
        Senator Inhofe. Yes. Well, adversaries.
        Mr. Dankberg. Adversaries? Yes----
        Senator Inhofe. I won't make you--I won't ask you to make
    that determination as who are our adversaries, but go ahead.
        Mr. Dankberg. Yes. So satellite has been very, very
    instrumental in use in the Middle East and in Africa in dealing
    with ISIS and terrorists in terms of surveillance and
    reconnaissance. The issue is that now we're dealing with
    potential and more near-peer adversaries, and we have a number
    of issues and vulnerabilities. And so the things that I have
    described that provide more bandwidth to end users also provide
    more resilience and jam protection to our forces in the field.
        The good thing is that largely because of the American
    system and the opportunities in the U.S., the U.S.--this is
    really important, I think. This is an area, the types of
    technology that you've heard from everybody on the panel, is an
    area where the United States has clear technology leadership
    over pretty much every country. And we do work internationally,
    including all of the countries, including some that may
    eventually be adversaries.
        I think that making spectrum available and providing a
    supportive environment for satellite will keep us in the lead
    relative to all of our adversaries. I think we do have a strong
    lead now in satellite communications.
        Senator Inhofe. Yes. Where are we with Russia right now?
        Mr. Dankberg. Again, so the Russians--the underlying
    technology that we have described, all of us are describing, is
    what's called spot beam satellites. The spot beam satellites
    basically reuse frequencies extremely efficiently. You've heard
    about that, LEO and GEO.
        Senator Inhofe. Yes.
        Mr. Dankberg. No other country has the technology yet that
    we do for spot beam technology, probably a factor of 10 behind
    what we've been doing in the United States. But I can tell you
    that Russia, China, India, Brazil, all of the space-faring
    nations are very, very interested in this, and if we don't
    support our satellite industry, I feel that we could fall
    behind.
        Senator Inhofe. Yes. Mr. Spengler, did you want to make a
    comment?
        Mr. Spengler. Yes, I just want to add just something to
    that, and I agree with everything that Mr. Dankberg said about
    the importance, the tactical importance, of satellite
    communications to military missions for our military. But just
    maybe to take his last thought a little bit further. It is
    vitally important that the commercial satellite industry is
    integrated into the strategy and planning of military SATCOM as
    well.
        Senator Inhofe. Yes.
        Mr. Spengler. And what we've seen over the time period of
    recent conflicts is how critical the commercial industry has
    been to those missions, and we think that it needs to be
    sustained in a very resilient way, that we can integrate
    strategies commercially and with MILSATCOM to provide this
    leadership well into the future.
        Senator Inhofe. OK. I appreciate that.
        Mr. Dankberg, I appreciate also what you're doing in my
    State of Oklahoma. We've got some 20,000 homes with you, and,
    of course, when you put this on American Airlines, all the
    installation takes place in my home city of Tulsa. And I know
    that some of the rest of you are actually launching satellites
    right now to reach some of the rural areas which I'm concerned
    about in Oklahoma.
        But, Mr. Wyler, I know that you're not--it's not the same
    company you had when you and I talked before, when you were
    talking about your activities in Africa, and it's a different
    company now. Are you still involved in Africa? And I'd like to
    use the rest of my time having you explain to me--I just got
    back from Tanzania, Rwanda, Burundi, Ethiopia, and I've kind of
    specialized in Africa now for 20 years. So I'm interested in
    the problems they're having over there, how I can be of help to
    some of these countries, because they look to me as one who
    might be able to help them. So would you comment on that?
        Mr. Wyler. Sure. Thank you. Thank you. Africa, obviously, I
    spent a great deal of time there, and the challenges, if you
    look at the 17 SDGs from the United Nations, all these
    challenges about gender equality and water and education, every
    single one of those challenges, the underlying requirement is
    connectivity. You can't measure it, you can't manage it,
    without connectivity.
        And so Africa is just like America in our rural areas.
    There is no ability to bring broadband because the terrestrial
    infrastructure is too expensive. We still spend a lot of our
    energy with Africa. We've been working with a lot of African
    nations. Like the Government of Rwanda is an investor in OneWeb
    as well as many other places around the world.
        So we're--they're counting on us to help solve this
    problem, help to bridge this divide, because the cost structure
    of other technologies is just too high.
        Senator Inhofe. Well, it's interesting you mentioned
    Rwanda, because I had dinner with Paul Kagame just less than a
    week ago, and he brought this up. This is a great concern
    there. But go ahead.
        Mr. Wyler. Yes, and he's becoming Chairman of the African
    Union and leading the technological revolution of Africa. So
    Africa is going to have more youth than any other continent in
    the world over the next 10 years. It's growing very fast in
    population, but it's also growing in economy. The economics of
    each country is growing really fast, and they're needing and
    utilizing more broadband. If we stranglehold that broadband in
    any way, that continent will have trouble growing, it will have
    trouble allowing the youth who are hungering for information to
    experiment and understand.
        Senator Inhofe. Yes. Well, my time has expired, but maybe
    for the record, because a couple other countries have brought
    this up to me, one being the Prime Minister of Ethiopia, and
    has a great deal of interest.
        Thank you, Mr. Chairman.
        The Chairman. Thank you, Senator Inhofe.
        Senator Peters.

                    STATEMENT OF HON. GARY PETERS,
                       U.S. SENATOR FROM MICHIGAN

        Senator Peters. Thank you, Mr. Chairman, and thank you to
    our panelists and for your great testimony here today. It's
    certainly an important topic and an exciting topic of the
    future. We appreciate you sharing your thoughts here today.
        This industry has been around a while, and we've been in
    space a while, and now we have thousands of active satellites
    orbiting the Earth with thousands more rocket bodies and
    hundreds of thousands of pieces of debris cluttering near-Earth
    space as well.
        On top of that, the companies that are here before us,
    you're going to be putting more stuff up into space as well.
    And so we've been very fortunate I think so far, we haven't
    seen any high-speed collisions, or a limited number of those at
    least, but certainly each collision, as you know, exponentially
    increases the odds of having other collisions as a result of
    the debris that's thrown out there.
        So, Mr. Wyler, my question to you is that your testimony
    provided some detail about your debris mitigation strategy and
    how it exceeds the U.S. Government's best standards, which you
    cited as being outdated, that we currently have. Would you
    propose that the mitigation strategies your company is
    following, namely, the 125-kilometer minimum altitude spacing
    and 5-year limit for deorbit could be followed as best
    practices for the whole industry?
        Mr. Wyler. Oh, for sure. Space debris, as you mentioned, is
    a critical component. And everything we're talking about doing
    for Africa, it will be gone if we end up with a space debris
    problem because our orbital altitudes will be gone. So the 125
    kilometers, which was actually adopted as well by Boeing, and
    others have been keeping orbital separation, is really, really
    critical to making sure that if there is an intra-constellation
    collision where one operator might have failures of satellites
    and smash into their own satellites, that those debris will
    have a limitation on how much debris they cast into other
    altitudes.
        And your own University of Michigan students who now work
    at OneWeb have done a lot of calculations on this to show the
    tail and the falling off. So you have of looking at both debris
    greater than 10 centimeters and greater than--less than 10
    centimeters, and if you look at that, it really starts to dive
    off around 125 and 150 kilometers, the total amount of debris
    that makes--when you model two satellites hitting each other
    using the NASA debris orbiting models.
        So that separation is critical. It's just like lanes in a
    highway. I mean, you can't be going in the same place at the
    same time. So----
        Senator Peters. Well, certainly, the benefits are pretty
    clear, as you just articulated. What are some of the challenges
    for us to be able to accomplish that?
        Mr. Wyler. Well, I think it's really a regulatory question
    because it's very easy to do, and there are plenty of altitudes
    for people to be in. And everyone knows where everyone else is.
    So we filed and put our satellite constellation out there years
    before everybody else in terms of this renaissance. And the
    people before us, the Globalstar and Iridium, we kept a good
    distance between them. And so most everybody usually respects
    the filing systems and says, ``OK, there's where these are. I'm
    going to be away from them so I don't have a chance of any
    erroneous issues causing a catastrophe.''
        Right now, there are no rules, I mean no substantive rules.
    That's why we don't even quote the current rules, because it's
    really--it's really not relevant. They were done in 1967, so
    the Outer Space Act, right?
        So the big challenge is for America to take a leadership
    position in this and then call in other nations and say,
    ``Other nations, this is what we're doing. Would you join us in
    this? Can we talk about this? But we're already taking these
    constraints upon ourself.'' And other nations will follow,
    yearning to.
        I saw at the FCC, because of all these different
    constellations and ideas and concepts that have been sort of
    put to them, the FCC has gotten letters from other nations and
    other--the European Space Agency and other space agencies,
    saying, ``Please don't--,'' you know, ``Be very careful. It's
    not just your space,'' right? So we have to be careful, but we
    have to--and it's a global world, but we have to take a
    leadership position and have every--all these other nations
    follow us, and we have that opportunity today.
        Senator Peters. I see the other panelists shaking their
    heads, so I want to give them an opportunity to weigh in as
    well.
        Ms. Cooper, do you want to start?
        Ms. Cooper. Absolutely. I think you would be hard-pressed
    to find a company with more invested in the future of space
    than SpaceX. We certainly count on a space environment that
    allows for future inventiveness and exploration, and we've
    approached our constellation with that responsibility in mind.
        I would just add there are a couple other elements to this.
    We absolutely will participate and continue to drive forward
    the caliber of operations and expectations for space
    operations.
        There are a couple other elements I wanted to add. The
    first is, you know, the design of the spacecraft itself is
    important, the materials you choose. The spacecraft burns up on
    reentry. The compartmentalization of systems, that you can
    maintain control even if you happen to get dinged by the harsh
    environment of space, your survivability and your resilience in
    space is important.
        Your concept for how you operate on orbit is also
    important. The ability to maneuver in that sort of sandstorm of
    space, your plan for how to respond if there's a collision, and
    how to deorbit at the end of your operations are all critical.
        Finally, you have to know what's on orbit, not just the
    other spacecraft, but the debris, and we would really like to
    continue our conversations that we've been having with the
    Department of Defense and with NASA on how to continue to
    improve the quality of inputs, about our understanding of the
    space environments, that we can maneuver smartly when there is
    a maneuver.
        SpaceX is designing our satellites to be able to maneuver
    thousands of times in their lifespan, and we're bringing to
    bear the reliability that NASA entrusts for us to take human
    NASA astronauts to the Space Station to bear in that
    responsibility of operating in space.
        I know that the FCC is about to issue some new rules for
    very small satellites, cubesats, micro-sats, particularly the
    kind that are used for experimentation, and we think that's the
    kind of leadership role that the U.S. needs to take, not just
    for the U.S. environment, but for the global space environment,
    to balance the role that space can take for research and
    inspiration and also preserving that environment for future
    activity.
        Senator Peters. Well, I appreciate that. My time is
    expired, but, Mr. Spengler, you've been--if you can be brief in
    your concurrence of what you've heard.
        Mr. Spengler. Sure. We've been operating in the
    geostationary orbit for decades, and that's an orbit with
    hundreds of satellites, not thousands, but--and there has been
    defined rules on how to operate there, and it's required a lot
    of cooperation between satellite operators to share that space
    well.
        We took the initiative with several other operators to
    create the Space Data Association to enhance that engagement
    with each other so that in that arc, the industry itself is
    taking ownership and responsibility for sharing information and
    making sure that it's safe and secure for the long term.
        But now when you're talking about thousands of satellites
    in a lower Earth or mid Earth orbit, it gets more complex. And
    I agree with Mr. Wyler, I don't think we can just leave that up
    to industry cooperation, we're going to need some help and
    leadership from government to help make that a safe and secure
    environment for well into the future as well.
        Senator Peters. Right. Thank you for your testimony. I
    appreciate it.
        Senator Inhofe [presiding]. Senator Blumenthal.

                 STATEMENT OF HON. RICHARD BLUMENTHAL,
                     U.S. SENATOR FROM CONNECTICUT

        Senator Blumenthal. Thank you, Mr. Chairman.
        I'm concerned about some of the reports that we've seen
    from the intelligence community and other sources that Russia
    and China and perhaps even terrorist organizations are pursuing
    a range of anti-satellite technology, in fact, efforts designed
    to threaten our military effectiveness and the satellites that
    may be used for civilian purposes. Other countries are
    aggressively developing the jamming and hacking capabilities
    that could cripple our military technology and surveillance,
    our navigation systems and communication networks. These
    technologies can be unleashed on civilian capabilities as well,
    including commercial satellites.
        So my question to each of you is, How concerned are you by
    the potential hacking capabilities of other countries or other
    hazards that may come from them or from nongovernmental
    threats?
        Ms. Cooper. Thank you. It's an excellent question, and as a
    company that operates one of the most technologically sensitive
    activities--launch capability--we take this very seriously and
    have deep experience and heritage in the protection of those
    systems that we will bring to bear to this satellite system.
        I would also note that the supply chain is a particular
    vulnerability for space systems. And we have chosen to bring a
    high percentage of our manufacturing in-house, and maintain
    U.S. control of that, and we're proud that our satellites will
    not only be built in the U.S., have high U.S. content, they
    will also be launched on U.S. rockets from U.S. soil without
    any involvement from foreign launchers or certainly Russian
    capability.
        Thank you.
        Mr. Dankberg. Yes, thank you, Senator. I think it's a very,
    very important question. Because we work with the military and
    the Defense Department, we do get support from them on dealing
    with especially cybersecurity, and we also provide
    cybersecurity for defense satellites. So we have a good
    understanding of what the threat environment is. But I do
    believe that for a privately held company to deal with state
    actors is probably asking more than those privately held
    companies are capable of.
        I think the U.S. has taken--has had dominance in space for
    so long that, in some sense, we may take that for granted. And
    I think it's not something that we should take lightly.
        One of the solutions that we think is definitely possible
    is the types of satellites that we're talking about for
    commercial are so much less expensive and so much--so easy to
    replicate, that that's one of the ways that we at least, from a
    national defense perspective, can obtain some amount of
    assurance that we'll have a reliable capability in space is to
    use, whether in the geosynchronous arc or the in low Earth
    orbit arc, multiple satellites that provide the capabilities
    that we need so we can make the economics of damaging our
    capability in space overwhelmingly expensive.
        Mr. Spengler. As a provider to U.S. military, DoD, and
    other applications, we have built our network with the highest
    level of cybersecurity for those specific customer sets, and
    have a regular engagement and dialogue with that sector. So
    we're very familiar with the issues and the challenges. That
    has even led us to design our current generation, next-
    generation, satellites, Intelsat Epic, with some very specific
    feature sets that manage and deal with intentional jamming and
    hacking that can occur on tactical missions that could be
    absolutely devastating if they're not dealt with quite--quite
    quickly.
        So it is critically important. There's no question about
    this. And it's where we have continual focus in these areas.
        Mr. Wyler. So cybersecurity is obviously very important,
    but I'll bring up something else. China not that long ago shot
    a satellite at 1,000 kilometers from the ground. They're not
    the only ones that can do it. If you put all these satellites
    in the same orbital altitude, you are literally shooting two
    birds with one bullet.
        Orbital spacing allows one satellite constellation to have
    a calamity without involving the other satellite
    constellations. So as the U.S. Government, which has been very
    active in looking at how constellations can provide very high-
    speed, low-latency connectivity for its troops in the field, it
    should want--I assume it will want that resiliency and that
    capability and that assurance of continued service, and not
    make it really easy for a competitor or another nation to take
    out the entire thing at one shot.
        Senator Blumenthal. I think these answers have been very
    illuminating. My time has expired, and even if I had another
    hour probably, we would not have enough time to exhaust all of
    the important ramifications of this area. But essentially space
    is lawless right now.
        Space is the Wild West, and it's vulnerable to cyber, to
    physical interference, as you've just suggested, with missiles
    launched either from space or from ground, and we need to be
    prepared for the threats to our commercial and civilian
    satellites as well as to the military satellites that we have
    there.
        So thank you, Mr. Chairman.
        The Chairman. Thank you, Senator Blumenthal.
        Senator Markey.

                   STATEMENT OF HON. EDWARD MARKEY,
                    U.S. SENATOR FROM MASSACHUSETTS

        Senator Markey. Thank you, Mr. Chairman, very much.
        We have come a long since Intelsat and Inmarsat had a
    monopoly, and I always enjoyed back in the 1980s and 1990s,
    break up the monopolies and to make it possible for there to be
    more competition. And we have come now to a new era, and this
    requires a lot of thought in order to unleash all of the
    potential for good which is out there.
        So, Mr. Wyler, if I can begin with you, you have raised a
    lot of money, you are going to deploy a lot of satellites. And
    I guess my big question to you is--the softball right across
    home plate for you--what's the difference between you and all
    these preceding companies that have tried to achieve the very
    same result in space in terms of providing low-cost access to
    the Internet to citizens, not only in rural parts of America,
    but around the planet?
        Mr. Wyler. Thank you for the question, Senator Markey. I
    get asked this a lot of question--a lot of times. And why now?
    Why can we do it now that we couldn't do it before, because a
    lot of people have tried? We've known the potential, but we
    haven't had the technology to accomplish it.
        I think it starts--our system, as you had me testify 10
    years ago, maybe 15, about deploying fiber to the home in
    Africa, it starts with understanding who needs what, and the
    needs of those consumers and those people in these rural
    populations, and designing for the lowest common denominator of
    customer. How do you build something that's affordable? We had
    an earlier conversation about CAF funding and all these
    subsidies. Why are we talking about subsidies? We should be
    building something that's affordable in the first place, to the
    GDP-adjusted cost structure of the environment that we're going
    to be serving.
        So what's happened now is that we're able to provide a
    service that is very low latency, which is key to the 30----
        Senator Markey. Very low?
        Mr. Wyler. Low latency.
        Senator Markey. Low latency.
        Mr. Wyler. Low latency.
        Senator Markey. Low latency means what?
        Mr. Wyler. Latency is the roundtrip time between you and
    the server on the other side. So you send a signal up to the
    satellite, down to some gateway, some server, and then back.
        Senator Markey. You mean it's fast.
        Mr. Wyler. It's fast.
        Senator Markey. OK. Yes. That's another way of saying ``low
    latency''?
        Mr. Wyler. Fast, yes.
        Senator Markey. OK, fast.
        [Laughter.]
        Mr. Wyler. When you click, it shows up.
        Senator Markey. OK, yes, I got it.
        Mr. Wyler. And there are a lot of standards for this. For
    instance----
        Senator Markey. Our job is to translate into English all
    acronyms. OK?
        [Laughter.]
        Mr. Wyler. Right.
        Senator Markey. So that our constituents understand what
    we're talking about.
        Mr. Wyler. It's super critical for things like AR and VR,
    which----
        Senator Markey. For what?
        [Laughter.]
        Mr. Wyler. Sorry. Virtual reality--OK?--and augmented
    reality.
        Senator Markey. Yes.
        Mr. Wyler. So the ability to create a videogame on this
    table while you watch with your new iPhone, this requires very
    low latency, this--this speed.
        Senator Markey. Very--very--it can move very fast.
        Mr. Wyler. Very fast.
        Senator Markey. For reality and for augmented reality.
        Mr. Wyler. And for augmented reality.
        Senator Markey. Yes. And people can decide which is better.
        Mr. Wyler. Yes.
        [Laughter.]
        Senator Markey. Reality or augmented.
        Mr. Wyler. Exactly.
        Senator Markey. Yes. We're actually living in that era
    right now.
        Mr. Wyler. 5G services demand low latency.
        Senator Markey. Yes.
        Mr. Wyler. So we've been able to create a system that is
    designed for 5G services so that you can roll out 5G anywhere.
        Senator Markey. So when can the first person on the planet
    be expected to be able to subscribe to your service and have it
    delivered? When do you expect that to happen?
        Mr. Wyler. 2019.
        Senator Markey. 2019. And where will that customer be do
    you expect?
        Mr. Wyler. Sitting in Alaska. Hopefully in Barrow or some
    other--not in Anchorage.
        Senator Markey. Yes. So you think it will be an American?
        Mr. Wyler. It will be in America.
        Senator Markey. OK. Where will the first customer outside
    of the United States be who will be able to subscribe?
        Mr. Wyler. We'll be covering Europe and we'll be covering
    Africa, South Africa, and other areas around there. Also
    Argentina and all around a lot of emerging and rural markets.
        Senator Markey. So will all of that be in 2019?
        Mr. Wyler. 2019 will be the beginning customers. 2020 they
    will all be covered.
        Senator Markey. So all of Europe will be covered?
        Mr. Wyler. 2020? Yes.
        Senator Markey. And not all of Africa, but South Africa?
        Mr. Wyler. Most of Africa will----
        Senator Markey. Most of Africa will be covered?
        Mr. Wyler. Yes.
        Senator Markey. Will it be all of South America or just
    Argentina and----
        Mr. Wyler. A big chunk in 2020. Most of--most of South
    Africa--South America will be covered in 2020.
        Senator Markey. OK. And, again, this is, you know,
    commercial. And what will it cost the average customer to be
    able to purchase this?
        Mr. Wyler. Well, we're--well, there are two things: the
    acquisition cost and the cost of service. So the acquisition
    cost, if your antenna and your terminal is in the $100 to $150
    range, you're going to have real trouble in communities,
    enabling community infrastructure to be there. If your cost--
    when I started this company, based upon my work in Africa, I
    shot for, How do we make affordable Internet access for someone
    who has a two-dollar-a-day income?
        Senator Markey. Right.
        Mr. Wyler. Which means 10 cents a day.
        Senator Markey. OK. So in 2019----
        Mr. Wyler. Yes.
        Senator Markey.--in 2020 at the latest, you're on track to
    get this done?
        Mr. Wyler. Yes.
        Senator Markey. And you're going to accomplish it?
        Mr. Wyler. Yes.
        Senator Markey. Your investors are prepared to run the risk
    that you won't be just a repetition of what's happened----
        Mr. Wyler. We have a lot of investors and a lot of eyes
    watching us, yes.
        Senator Markey. OK. And how many total satellites will you
    have up there?
        Mr. Wyler. In 2020, we should be able to hit about 800 or
    900.
        Senator Markey. In 2020.
        Mr. Wyler. And then it will climb to probably another--
    about 2,000 or 2,200 in 2021.
        Senator Markey. So 2,200 satellites. When Motorola was
    doing Iridium, they named it after the 77th element of
    Mendeleev's chart of elements. They had 77, right? And so you
    have just vastly expanded it with smaller satellites to ensure
    that there is ubiquitous coverage.
        Mr. Wyler. The key is making these satellites smaller and
    smaller. The----
        Senator Markey. And I think the key question I think for
    Americans is going to be, Will the price that you're offering
    in Alaska or rural South Dakota or Massachusetts, will that be
    on a scale that is equivalent to what you're going to be
    offering in Africa or in South America?
        Mr. Wyler. So we partner with the local providers, the
    ISPs, and let them--work with them to help them set the prices
    and let them set the prices for the hyperlocal environments. So
    the prices will change around the world, but it will be dealt
    with--the prices will be managed by the local--the local
    Internet service providers.
        Senator Markey. So you're saying you will be partnering
    with Comcast and AT&T in the United States in order to set the
    price for American consumers?
        Mr. Wyler. That's a great question. They don't cover most
    of the United States. So we'll be partnering with a lot of
    other people. And we're happy to also partner with them, but
    there will be competition between the partners----
        Senator Markey. So you're saying in the parts of America
    where you're going to target, it will be mostly those areas
    unserved by those large ISPs, and as a result, you'll be
    partnering with the smaller companies----
        Mr. Wyler. Yes.
        Senator Markey.--in smaller towns all across the country
    and trying to devise a price point that will bring a profit to
    the ISP and to you.
        Mr. Wyler. Correct, and to hopefully spur new ISPs and new
    entrepreneurship in those regions.
        Senator Markey. Right. So that very----
        Do you mind, Mr. Chairman, just so I can understand?
        The Chairman. [Shaking head no.]
        Senator Markey. I appreciate it. So this very low price
    point that you mentioned earlier for, let's say, Africa or
    South America, is that also going to be something that you're
    seeking to achieve that to be the lowest cost provider,
    comparatively speaking, across the United States?
        Mr. Wyler. Yes. We're seeking to be affordable for
    everybody in every state, and so we will hopefully be the
    lowest cost provider. The price will change. It may not be that
    low in some states, but it will be affordable to the people
    with their local GDP.
        Senator Markey. Mm-hmm. Do you have already existing
    contracts with those ISPs, or are they to be negotiated in
    the----
        Mr. Wyler. We have a number of MOUs already with them that
    were set up and ready to go. If you look at our investor base,
    which includes Hughes and includes Softbank, which has a number
    of telecom companies, including Sprint, we're working very
    closely to make sure we can get rural coverage. It's a passion
    and a drive and what we're going to succeed.
        Senator Markey. So do you already know what that price
    point is going to be because of the already negotiated
    contracts?
        Mr. Wyler. We know that we have the flexibility for that
    price point to move to what is affordable within the regions.
        Senator Markey. Uh-huh.
        Mr. Wyler. So we actually took a very unique approach to
    this. Rather than saying, OK, it's $30 a month or $50 a month,
    we've said, ``OK, let's work together in your region for your
    area and let you set the price because you're the expert about
    what's going on in rural South Dakota, you know what the
    farmers there can afford and what they can pay and what the
    competitive prices are.''
        Senator Markey. Yes. And so--and, finally, is the service
    which these people are going to receive comparable to the
    service that people receive in Boston?
        Mr. Wyler. I--speaking as a customer of someone in Boston,
    I don't want to achieve that, better.
        [Laughter.]
        Mr. Wyler. So watching the circle go around.
        Senator Markey. No, I hear you.
        Mr. Wyler. So we've designed a system that really uses
    spectrum very efficiently. We're actually asking the question,
    Why can't rural be faster? So we're shooting for 2021 to
    achieve 2.5 gigabits per second of capacity direct to a rural
    home. So there should be no--in the new technological age,
    there should be no penalty for being in rural populations.
    Those people who want to stay there and want to be educated and
    want to stay with their parents and build businesses should be
    able to, and that's what we're trying to achieve, and I think
    we are.
        Senator Markey. Well, I saw what you did in Rwanda. You
    came and we had you testify. It was an incredible concept. You
    executed it, and it transformed Rwanda. OK? No one would have
    ever thought broadband in Rwanda would work so successfully.
    It's really transformed their future. Hopefully here this
    concept also is executed because I think the potential is
    unlimited in terms of transforming information and competition,
    not just in the United States, but around the planet. So thank
    you.
        Thank you, Mr. Chairman.
        The Chairman. Thank you, Senator Markey. And I'm glad you
    settled once and for all what latency actually is.
        [Laughter.]
        The Chairman. We have a whole new way of explaining
    speeding tickets in this country, using high latency--low
    latency.
        Let me just ask a couple of general questions as we wrap up
    here, to all of you, and feel free to jump in here. What are
    the major factors right now that are affecting investment in
    next-generation satellite technology?
        Ms. Cooper.
        Ms. Cooper. So at SpaceX, we're not at this point going out
    to seek outside investment for this project. But I would say
    the capability to undertake a complex problem is definitely a
    differentiating factor, the ability to not only conceive of it,
    but actually deploy the manufacturing design that's responsible
    and undertake the space operations in a way that preserves the
    space environment I think are going to be rewarded.
        I think the work that my colleagues here on the panel have
    done in terms of advancing the caliber of satellite services
    continuously over the last few years has also generated an
    enormous amount of investment interest and excitement about
    what the space environment and what the satellite sector can
    do.
        Thank you.
        The Chairman. Anybody else?
        Mr. Dankberg. I think there are really two factors. One is
    this notion of a space renaissance where there has been a large
    increase in investment in space I think is absolutely true. You
    see a lot of startups. One of the big reasons is because there
    are companies working on reducing the cost of access to space,
    and that's basically democratizing the environment.
        But there are, I would say, two issues. The number one
    issue is access to spectrum. For communications, no
    communications system can really achieve the level of cost
    effectiveness and performance that we want and the level of
    competition Senator Markey has raised without access to
    spectrum.
        And I think that the real issue here is not dedicating
    spectrum only to satellite at the detriment of some other, it's
    really working on sharing because there is a finite amount of
    spectrum, and that is a very, very important area.
        I'll tell you, at the next level down, and it's not quite
    as important, is the one that we touched on a little bit here,
    which is the question of subsidies. And the real issue of
    subsidies, I kind of agree with Greg, is that we work on a free
    market basis. We don't expect subsidies in order to be able to
    provide a good broadband product at a competitive price
    anywhere in the U.S. We can do that without subsidies.
        I do think that we should think about what the effect is of
    subsidies on market distortion and how that reflects what it is
    that the market really wants, and I think that's--I wouldn't
    put that at the level of the spectrum issue, but it's something
    I think for the government to consider.
        The Chairman. OK.
        Mr. Spengler. What we've encountered in recent years, and
    it has been said many times today, is this renaissance in space
    and satellite communications, and as a result, there is robust
    investment. There is robust investment in innovation, there are
    sources of capital that are supporting investment, and I think
    that all ties to the recognition that the future network is an
    integrated network, it's a single network, it is a telecom
    network that will have many parts to it: satellite, wireless,
    fiber. And so it is really driving a lot of this innovation
    that's happening.
        I think the next big area for enhanced investment and free
    market investment is really on the ground technologies. And it
    has been referenced a few times today, investments have been
    made on satellites and enhancing the performance, the cost, but
    we also have to continue to invest on the ground--the
    terminals, the user devices that customers have, to make them
    smaller, cheaper, simpler to install, and easy--and that way
    we'll be fully integrated.
        The Chairman. Mr. Wyler.
        Mr. Wyler. So as the only sort of startup in the room,
    we've had to go out and raise our share of capital, and we have
    a very wide and broad base of investors. I'll say sort of the
    two big things.
        Spectrum certainty, spectrum certainty, spectrum certainty,
    and repeat that so we know it. We should not play with
    spectrum. You should not play with people's foundations. If you
    went to Verizon and said, ``We're thinking about taking back
    the 700 megahertz,'' or whatever, the 1.9, you know, ``maybe it
    would just halt investment overnight.''
        Don't play with the spectrum. This stuff that we're doing
    takes 7 years to build and tens of billions of dollars to do it
    at the scale we're talking about. If you play with spectrum,
    you play with the investors' understanding and viewpoint of the
    solidity of your project, which already has many other
    dynamics.
        The second thing is space debris. If there's an accident in
    space, you will see a halt to investment. So unless we take a
    leading position on this--and it's not just from the U.S., lots
    of people can launch satellites, we need to take a leading
    position in the U.S. and have all other countries work with us,
    and they're eager to do so, so that we can keep satellites in
    their own lanes, because if they hit, the whole thing is gone.
        The Chairman. Right.
        Mr. Wyler. So these are the places where you, on your
    bench, in your position, are speaking not just for investment
    for the future, but you're the voice of the people with no way
    to speak, the people in the future generations who also want to
    have access to space, the people in the rural populations who
    know that this is the only way they're going to get broadband
    that's equivalent or better than that in the suburbs, and be
    part of the rest of the world and be part of the rest of
    America economically and socially.
        So those are the two things: spectrum certainty and space
    debris certainty.
        The Chairman. All of you have talked about how the
    satellite constellations that you have proposed are raising a
    number of issues for the FCC and for various other
    international entities. But do you feel that the FCC has the
    tools currently that it needs to properly address the issues
    that are raised by satellite constellations along the lines of
    what you proposed today?
        Ms. Cooper. I would just say I think the FCC has done a
    laudable job in a very complex issue area. They have just
    undertaken an update of the rules for these kinds of
    constellations that had been sort of dormant since the last
    generation of low Earth orbiting satellites. Those rules will
    give us a much better platform to kind of pivot to this next
    newer unfolding generation. They did things like extending the
    milestones by which you need to deploy a constellation, which
    is especially important if you have larger constellations. And
    as ViaSat has noted, the ability to be able to deploy those is
    contingent on launch capability, which is something we feel
    very strongly about our capabilities there.
        They've also really laid the expectations in terms of
    sharing spectrum to be firmly on the operators to try and
    figure out how to interoperate with each other, interoperate
    and protect the satellites that are above us, and also make
    sure that we can work with the terrestrial operators.
        The thing that I would say that would be most useful, I
    think, from the Committee in terms of the Commission is to make
    sure there's a reflection of this opportunity with space-based
    systems in the expectations of spectrum, that there are two
    kind of key underlying principles. One is you should use,
    avail, every technology that's possible to try and be a more
    efficient user of the spectrum, and also be incentivized for
    any group of parties, whether it's terrestrial and satellite or
    within the satellite sector at different orbital hierarchies to
    try to apply technology for spectrum sharing. That's going to
    serve the American consumer better because you'll get better
    services through the same amount of frequency bands. I think
    those are the two principles that the FCC is going to benefit
    from in terms of direction from this Committee.
        On space debris, I think the recommendation for the
    agencies to work together and pool their common and diverse
    experiences to continue to evolve that sort of foremost role of
    the U.S. in terms of maintaining a safe environment, that's a
    successful next step. We were pleased to see the formation of
    the National Space Council, we're pleased to have participation
    in the first meeting, and expect to be involved in every one of
    the agencies that's active in space policy.
        Thank you.
        The Chairman. Thanks.
        Yes, go ahead quickly.
        Mr. Dankberg. I think the FCC certainly has the skills and
    the resources to manage spectrum. And one of the things that's
    helped us is the FCC's willingness to entertain new spectrum-
    sharing strategies within the satellite sector itself. That was
    part of what made our satellites more effective. And then also
    recently with the 28 gigahertz spectrum frontiers, the FCC--and
    we did reach agreement on spectrum sharing between terrestrial
    5G and satellite, so we know that's possible.
        I think that especially recently there has been a very
    strong focus on 5G wireless and the FCC, possibly to the
    detriment of other technologies, satellite being one. The other
    one that I would put in a plug for, and this really goes to
    some of Senator Markey's questions, is we're a little bit
    unique because we are a direct retailer.
        So we not only drive down the cost of delivering broadband,
    but we then set the prices to our subscribers. And in dealing
    with--we also deal in Mexico, where we can provide broadband at
    the price points today that Mr. Wyler was talking about in
    Africa.
        The thing that makes that possible is unlicensed spectrum
    because when we deliver bandwidth through other carriers,
    they're the ones, as Mr. Wyler said, that are setting the price
    points. With the access to unlicensed spectrum, we can go to
    Native Americans, Indian reservations, national parks, and
    deliver services directly to people's phones with unlicensed
    spectrum. And that's an area that there is really not a very
    strong advocacy within the FCC. I think that that's one area
    that could use more support.
        The Chairman. OK.
        Mr. Spengler. I think the FCC, like a lot of regulators
    that are dealing in the digital world have challenges because
    things are moving so fast, there is so much change, and I think
    that's where industry and the private sector and the market can
    be of benefit in terms of helping solve some of these
    challenges.
        We're coming to the FCC with all kinds of new models that
    we haven't gone to before where we're talking about partnering
    with different satellite operators, different kinds of
    arrangements, and it's all to develop new services for
    different parts of the world, and in the U.S. in particular.
        We recently responded to a Notice of Inquiry from the FCC
    on the C-band. And the C-band right now, back to some of the
    comments that have been made, is being sought after by the
    wireless industry. Currently, it's being used by satellite
    broadcasters to distribute programming to cable head ends, to
    retransmitters all around the country, and millions of
    Americans get their television through the C-band distribution.
        What we've done is we said, look, we don't believe that
    sharing can work in the traditional sense, and we proposed a
    new solution, and we proposed a solution with Intel saying let
    the industry work on this together, let the market decide how
    we can free up spectrum in that band to allow the growth of 5G
    wireless, which we believe in, we all want that happen, but
    also give some certainty and surety to the broadcasters and the
    television viewers around the country, a scheme where there's
    joint use, that the market can decide the best way to clear
    that spectrum, and that we can bring a solution to the FCC.
    They have a lot of things on their plate, and this is one that
    the industry could potentially solve together in this
    particular case.
        The Chairman. Mr. Wyler.
        Mr. Wyler. I'd actually slightly disagree with Mr.
    Dankberg. The FCC is probably underresourced in some areas.
    Just a slight disagreement there. Generally, they've been doing
    an excellent job. There are places where they are just
    overwhelmed with new technologies and new ideas, and in this
    digital age, that changes so fast.
        Certainly, I'll just--you know, in the latest proceeding,
    the ability for NGSOs to interfere with GSOs, they've just
    given us sort of a hall pass and said, ``Go ahead and work it
    out later.'' It's kind of interesting because they're supposed
    to protect the GSOs. Now, being on the beneficial side of that,
    I shouldn't be saying anything bad about it, but I think it's a
    bit--it was generous, let's say, and unexpected to let us do
    that.
        I think in terms of space debris, they are trying, they
    really are. They're putting out questions to people with kind
    of everybody has got these different ideas with how they're
    going to put their--where they're going to put their satellites
    and whether they're going to crash into each other or not, and
    people--and they're asking them for more data. But they're not
    equipped for that, they're not designed for space debris,
    because they're a spectrum--they're spectrum focused, right?
    They're in electrons, not in physical objects hitting each
    other.
        So some committee, some way of giving them some tool with
    NASA, with the FAA, with others, maybe a Presidential
    commission, maybe a congressional or Senate commission, I don't
    know, but some way of giving them some oversight and some
    support in dealing with this because right now, since--
    basically their arms are tied, they're frozen, they don't know
    what to do with it because there is no good answer with the
    current--if you launched all these satellites, you'll
    definitely have space debris. So now what do they do? And who's
    in charge of that?
        The Chairman. OK. Got it. All right. Well, thank you all.
    And I appreciate very much your----
        Senator Markey. Can I just ask one question?
        The Chairman. Yes.
        Senator Markey. Your questions have been great, so it just
    prompted one question, which goes back to Mr. Dankberg on the
    historic role of unlicensed spectrum and what you think that
    role should be in this space right now. Can you talk about that
    just for a minute, please?
        Mr. Dankberg. Yes. Thank you. One of the things--if you
    look at some of the things that are really different in the
    satellite industry compared to, say, 5 or 10 years ago, there
    are two that are big ones.
        One is--and the history of Intelsat shows most of the time
    satellite companies had to work through other telecom providers
    because their customers were the telephone companies or the
    wireless carriers.
        The other one is if you wanted to provide video
    transmission, you had to work with a content owner or a TV
    station for distribution. What's really different now and is
    very liberating in the satellite industry is that you have
    million--you have billions of phones going around which have
    WiFi capability. So now a satellite operator, if they can
    deliver a transmission at lower cost than a terrestrial
    operator, you can create real competition by going to them
    through unlicensed spectrum, but only if that unlicensed
    spectrum is truly available and has the ability to reach those
    people.
        The other big, big change is that now you're seeing these
    over-the-top video services where an individual subscriber can
    basically make an arrangement directly with a service provider,
    like it could be Disney, it could be Sling, Hulu, and that now
    transmission is really a commodity that you can just deliver to
    that subscriber, greatly reduce their cost without having to go
    through someone else.
        So for the first time, satellite is no longer just a cost
    input to somebody else, but it has the ability to compete in
    two-way transmission.
        Senator Markey. So you're saying, if I may, I just want to
    put it into my consumer perspective, you're saying that these
    multiple satellite competitors, in an unlicensed spectrum world
    down below, has more potential for identifying markets that
    they could move into and provide services at an even lower cost
    because that spectrum is unlicensed, and you don't--the company
    terrestrially doesn't need a return on investment because it's
    unlicensed at that point. It's a much lower cost----
        Mr. Dankberg. Yes.
        Senator Markey.--overall, and it puts a pressure on the
    market that otherwise would not be there because consumers will
    be opting out and heading in that direction.
        Mr. Dankberg. Yes, and if I could elaborate just for a
    second, we are doing services in Mexico and in Africa. In
    Africa, we work with an organization called RASCOM, which is an
    organization of all the African states. We need to go through
    cellular operators there. A cellular operator would need to go
    into a village and invest $50,000 to $100,000 to put a cell
    tower in. In Mexico, we can do it directly using our own
    satellites, and for $1,000, put in a WiFi hotspot.
        So that--we've talked a lot about technology, which is
    exciting, but the business model changes are very important,
    and seeing regulations that support those would be very, very
    helpful.
        The Chairman. OK. Thank you, Senator Markey.
        Well, great panel, great questions, great answers. It's a
    fascinating field, and one that we obviously want to do
    everything we can to support and encourage and see that we are
    doing everything we can to make sure that people all over the
    country and all over the world, in the South Dakotas of this
    country and other places around the world, have access to
    everything that comes with technologies, and broadband, and the
    opportunities associated with it.
        So we appreciate the good work that you all are already
    doing, and we'll look forward to working with you and encourage
    you as you encounter issues, challenges, that you think we
    ought to be attending to and articulating policy about, to
    share that with us. But this I think has been very, very
    helpful, and we'll look forward to other opportunities to hear
    from you again.
        I will just say to our panelists that if you could respond
    to any questions that are submitted by members of this
    Committee, we'll try our best to ensure that we close the
    record out in a matter of a couple of weeks. So we'll try and
    get our Members to get their questions for the record to you,
    and then if you could, as promptly as possible, get those
    responses back, it would be most appreciated.
        So with that, we will conclude. Thank you all very much.
        [Whereupon, at 12 p.m., the hearing was adjourned.]

                                A P P E N D I X

       Response to Written Questions Submitted by Hon. Maggie Hassan to
                                Patricia Cooper
        Question 1. With the recent hurricanes and tropical storms
    devastating Florida, Texas, and Puerto Rico, I'd like to talk a little
    bit about emergency preparedness. If things go according to plan with
    this industry, in a matter of years our planet will be covered with
    low-orbiting satellites providing broadband to every corner of the
    Earth. That comes with a major responsibility to bring people back on
    line after storms and disasters. How is the industry thinking about
    emergency preparedness, and backup power? Is having an all-of-the-above
    approach to connectivity that incorporates satellite, fixed, and mobile
    broadband a good idea to make sure we can rebuild after disasters?
        Answer. Maintaining reliable Internet access in the aftermath of a
    natural disaster can be critical when carrying out rescue operations,
    assisting survivors, and beginning the recovery process. The
    unprecedented destruction and humanitarian crises caused by Hurricanes
    Harvey, Maria, and Irma revealed the significant role satellite
    communications play in disaster relief. For those in the affected
    areas, where the existing communications infrastructure was either
    damaged or decimated, satellite communications provided the initial
    connectivity for first responders and consumers alike.
        When operational, SpaceX's planned non-geostationary orbit (NGSO)
    satellite constellation will ensure that its users anywhere in the
    world can maintain access to reliable, high-speed Internet connections,
    VOIP, and 5G backhaul, even in the event of an emergency that disrupts
    the power grid. SpaceX's constellation will connect its end-users
    directly to its satellites via small, rooftop mounted terminals, which
    will be available with a small solar panel. This allows for operational
    connections even with local power outages. Additionally, because
    SpaceX's satellite constellation will be optically linked in space,
    Internet traffic from the affected area can be routed in space to
    Internet gateways well away from the disaster zone, allowing for
    connectivity even when local communications have been severed.
        An ``all-of-the-above'' approach to connectivity is important in
    order to ensure responders, aid groups, government authorities, and
    affected citizens can maintain connectivity after a disaster and in the
    recovery months following an event. Accordingly, in any future
    infrastructure legislation, SpaceX supports a technology neutral
    approach to both emergency communications services and more general
    broadband infrastructure deployment. Currently, satellite-based
    broadband systems are excluded from some sources of Federal
    infrastructure funding for broadband deployment. The aim of emergency
    communications and broadband deployment efforts should be to multiply
    the means of broadband access nationwide, and to ensure rapid and
    resilient broadband availability following an emergency--regardless of
    the type of technology used.

        Question 2. One issue this Committee has discussed at previous
    hearings is the issue of space debris.
        According to NASA, there are over 500,000 pieces of debris orbiting
    the earth. This debris ranges in size from non-functional satellites,
    to fragmented debris as small as specks of paint. This debris travels
    around the earth at speeds of up to 17,500 miles per hour, roughly ten
    times faster than a bullet. At these speeds, even the tiniest bits of
    debris can cause damage, and windows on the Space Shuttle were replaced
    because of damage from tiny debris. With the increasing launches of
    micro-satellites and decreasing launch costs it is now easier than ever
    to launch craft into low earth orbit, and the problem is likely to
    increase many times over. Do you believe that current processes and
    regulations in the United States are sufficient to mitigate the
    increase in space debris? How can we work to address this issue?
        Answer. In developing its broadband constellation, SpaceX has
    focused from the outset on design, technology, and operations that will
    preserve and protect the space environment for current and future
    operations. SpaceX is committed to exceeding all U.S. and international
    space safety standards in the deployment and operation of its satellite
    constellation, and to advancing new best practices for safe orbital
    operations and orbital debris mitigation. This includes leveraging the
    high-tech manufacturing expertise and spaceflight experience SpaceX has
    gained providing launch transportation services for a diverse set of
    customers, including NASA and the Department of Defense.
        Based on this experience, SpaceX is incorporating the following
    best practices into its broadband constellation to fulfill its
    commitment to safeguarding space safety:

      (1)  Satellite Design: SpaceX satellites are being designed and built
            specifically to maximize control of a spacecraft throughout its
            lifespan, even in the rigorous space environment. Each SpaceX
            satellite is being designed with redundant, fault tolerant
            capabilities to ensure they can survive failures and encounters
            with space debris. SpaceX is leveraging its extensive
            experience in resilient spacecraft design, including its
            heritage with the Dragon crewed spacecraft that is undergoing
            human-rating approvals to transport NASA astronauts to the
            International Space Station. SpaceX is carrying over similar
            critical redundancies into its satellite constellation,
            shielding its satellites from micrometeorites, and engineering
            components to withstand an impact in the event of a collision.

      (2)  On-orbit Operations: SpaceX satellites are being designed to
            maneuver regularly, both in order to avoid tracked debris and
            to maintain a safe separation within the constellation and with
            other spacecraft, space stations, and constellations. This
            ability to process data about potential orbital obstacles and
            autonomously maneuver satellites to avoid a collision is a
            critical safety element. SpaceX is again able to leverage its
            experience with its Dragon cargo capsule, which NASA has
            approved to autonomously approach the International Space
            Station, disembark, and reenter Earth's atmosphere. This is
            among the most challenging and demanding close-approaches in
            space. SpaceX's satellites will use on-board, highly efficient
            solar-electric propulsion systems that are capable of
            autonomous daily maneuvers, adding up to thousands of maneuvers
            over the course of their lives, in order to avoid potential
            collisions. Even if the risk of impact with space debris is
            deemed highly unlikely, the satellites will course correct
            autonomously to avoid the remote possibility of a collision.

      (3)  Safe Space Operations: SpaceX is developing a detailed
            operations plan that includes an orderly orbital disposal
            protocol that maintains control of each spacecraft, while
            rapidly deorbiting. The spacecraft are being designed out of
            materials that will disintegrate in the Earth's atmosphere at
            the end of their useful lives, reducing risks on the ground.
            After completion of their useful life-span, SpaceX anticipates
            that, typically within one-year, its satellites will reenter
            the Earth's atmosphere and disintegrate, far sooner than the
            twenty-five year international standard.

      (4)  Government collaboration: SpaceX works closely to coordinate the
            development of its satellite constellation with all relevant
            government, industry, and international stakeholders. SpaceX
            has experience working with every Federal agency involved in
            space safety, notably with NASA's Orbital Debris Program Office
            (ODPO) and the Department of Defense's Joint Space Operations
            Center (JSpOC). For the past year, SpaceX has been testing its
            risk analysis and collision avoidance software via a series of
            extensive debris tracking simulations with JSpOC. This
            software, in coordination with JSpOC's orbital debris data,
            will allow SpaceX satellites to maneuver autonomously to avoid
            collision risks--even when these risks are determined to be
            highly improbable.

        SpaceX is deeply invested in a space environment that is viable for
    future operations, development, and exploration. We believe that a
    combination of approaches including satellite design, operational
    responsibility, and collaboration can help ensure a healthy, viable
    space environment for generations to come.
                                     ______

       Response to Written Questions Submitted by Hon. Maggie Hassan to
                                 Mark Dankberg
        Question 1. With the recent hurricanes and tropical storms
    devastating Florida, Texas, and Puerto Rico, I'd like to talk a little
    bit about emergency preparedness. If things go according to plan with
    this industry, in a matter of years our planet will be covered with
    low-orbiting satellites providing broadband to every corner of the
    Earth. That comes with a major responsibility to bring people back on
    line after storms and disasters. How is the industry thinking about
    emergency preparedness, and backup power? Is having an all-of-the-above
    approach to connectivity that incorporates satellite, fixed, and mobile
    broadband a good idea to make sure we can rebuild after disasters?
        Answer. All types of communications technologies are required to
    survive and rebuild after natural disasters. Satellite networks are
    composed of diverse space and ground infrastructure providing
    significant advantages that allows them to remain operational during
    and after natural disasters as compared to local terrestrial
    communications infrastructure that may be damaged or destroyed and take
    weeks or months to restore.
        Federal, state and municipal public agencies, including FEMA and
    NGO recovery organizations and everyday consumers use satellites to
    provide robust services and business continuity when other networks are
    damaged, overloaded or unavailable. Satellite communications also
    provides a load sharing or surge capacity solution and enable the
    creation of instant communications infrastructure.
        ViaSat currently has broadband satellite coverage of the
    continental United States plus Hawaii and Alaska, soon to be extended
    to the U.S. Virgin Islands and Puerto Rico. During the recent events in
    Texas and Florida, the NGO recovery teams deployed ViaSat portable
    satellite broadband terminals to help volunteers connect online to
    provide critical medical support, place people in shelters, and
    continue to heal the impacted communities.
        Below is a comment from an Exede (ViaSat) customer after hurricane
    Harvey:

            ``I just went through the Hurricane/Tropical Storm Harvey here
            south of Seguin, TX. That storm came within 20 miles of us. How
            do I know this? Because my Exede Internet stayed up the whole
            time! The winds and rain were ferocious and I was quite frankly
            pleasantly surprised when my Internet connection continued
            without a burp. I was able to monitor the storm, keep in touch
            with friends and even watch Netflix. I've always liked the
            Exede service but this time it survived the `Hurricane' test.
            Keep up the good work, Exede, and thank you for being there
            when all else was in turmoil ):-)''

        Question 2. One issue this Committee has discussed at previous
    hearings is the issue of space debris.
        According to NASA, there are over 500,000 pieces of debris orbiting
    the earth. This debris ranges in size from non-functional satellites,
    to fragmented debris as small as specks of paint. This debris travels
    around the earth at speeds of up to 17,500 miles per hour, roughly ten
    times faster than a bullet. At these speeds, even the tiniest bits of
    debris can cause damage, and windows on the Space Shuttle were replaced
    because of damage from tiny debris. With the increasing launches of
    micro-satellites and decreasing launch costs it is now easier than ever
    to launch craft into low earth orbit, and the problem is likely to
    increase many times over. Do you believe that current processes and
    regulations in the United States are sufficient to mitigate the
    increase in space debris? How can we work to address this issue?
        Answer. ViaSat has several U.S. geostationary spacecraft
    authorizations for its current broadband space operations and has
    applied for a medium-Earth orbit system. ViaSat works with its
    satellite manufacturers and vendors to assess and design its spacecraft
    to limit the probability of accidental explosions, ensure safe flight
    operations during the service life of its satellites, and to facilitate
    appropriate post-mission spacecraft disposal in order to preserve a
    safe space environment. ViaSat's U.S. authorizations contain conditions
    to ensure that the highest orbital debris standards and best practices
    for space operations are designed into and maintained while operating
    the spacecraft.
        It is important that the United States remain a leader in the
    development and implementation of space debris best practices and
    mitigation. In fact, the development of safe flight practices and
    disposal procedures in the United States, led by NASA and DoD over the
    years, has encouraged other space faring nations and commercial
    operators to adopt similar procedures leading to an excellent safety
    track record, even though there have been a few unfortunate incidents
    over the years. Continuing to encourage industry best practices in
    partnership with government satellite operators, is the swiftest and
    most effective way to ensure that the latest techniques are
    incorporated into existing and future spacecraft and operations. It
    also requires government and commercial operators to timely share
    flight data and routinely cooperate on an operational level.
                                     ______

       Response to Written Questions Submitted by Hon. Maggie Hassan to
                                Stephen Spengler
        Question 1. With the recent hurricanes and tropical storms
    devastating Florida, Texas, and Puerto Rico, I'd like to talk a little
    bit about emergency preparedness. If things go according to plan with
    this industry, in a matter of years our planet will be covered with
    low-orbiting satellites providing broadband to every corner of the
    Earth. That comes with a major responsibility to bring people back on
    line after storms and disasters. How is the industry thinking about
    emergency preparedness, and backup power? Is having an all-of-the-above
    approach to connectivity that incorporates satellite, fixed, and mobile
    broadband a good idea to make sure we can rebuild after disasters?
        Answer. Hybrid networks and solutions are essential to disaster
    recovery. Due to the geographical challenges that many of our customers
    face around the world, fixed and mobile network operators are already
    integrating satellite into their networks to provide resiliency and
    redundancy should their terrestrial network be rendered inactive due
    the effects of a hurricane, flood, earthquake or more extreme natural
    or man made disasters. For example, given the broad scope of the
    connectivity challenges following Japan's 2011 earthquake, Japan's
    mobile network operators have turned to Intelsat to fully integrate our
    satellite network into their own. By doing so, they will have increased
    resiliency and redundancy in case of a natural disaster as well as have
    a way to extend their networks and bring much needed connectivity to
    communities in the more remote areas of the country.
        During the devastating Hurricane Season of 2017, Intelsat provided
    communications services using its Globalized Network and IntelsatOne
    Flex managed service, a customizable offering that aggregates space
    segment, the Intelsat Epic NG high throughput satellites and
    the IntelsatOne terrestrial network into a simplified, unified
    ecosystem to quickly deliver bandwidth where it was needed most.
    Intelsat's support efforts began even before the first storm approached
    land, initiating disaster recovery and restoration plans for customers
    across the media, broadband and mobility sectors with operations
    established in the projected paths of the storms. In some cases,
    customers transitioned hub operations and relocated staff to Intelsat
    teleport locations, maintaining unimpaired operations throughout the
    storms. With broadcasters being significantly impacted by the flood in
    Houston, Intelsat's Galaxy 16 satellite was used to provide vital
    connectivity to re-establish services and ensure that critical news
    coverage reached residents and those outside the area.
        Intelsat, Liberty Global and Kymeta teamed up to provide critical
    connectivity to Puerto Rico, whose infrastructure suffered catastrophic
    damage due to Hurricane Maria. Three Kymeta-Intelsat enabled vehicles
    crisscrossed 29 remote towns from October through December 2017. The
    vehicles were equipped with Kymeta KyWayTM flat panel, beam-
    forming, electronically-steered terminals that leveraged Intelsat's
    satellite connectivity. Despite the lack of any electrical power or
    cellular service, the low power-consuming terminals provided Internet
    access using the vehicles to power the communications system.
        Intelsat also worked with AT&T and Verizon to provide VSAT services
    to restore communications for enterprise customers. Intelsat's Ku-band
    broadband service helped banks and pharmacies open for customers again
    as well as providing communications support for the Puerto Rican
    government and FEMA.
        These are just a few of the many examples of the importance of
    hybrid connectivity when it comes to disaster relief. By incorporating
    the reach, resiliency and redundancy of satellite technology into a
    fixed/mobile network, operators will harden their networks, help ensure
    that critical connectivity is available to assist with medical needs,
    recovery efforts and play a role in maintaining or rebooting a region's
    wireless infrastructure so that people's lives can return to normal.

        Question 2. One issue this Committee has discussed at previous
    hearings is the issue of space debris.
        According to NASA, there are over 500,000 pieces of debris orbiting
    the earth. This debris ranges in size from non-functional satellites,
    to fragmented debris as small as specks of paint. This debris travels
    around the earth at speeds of up to 17,500 miles per hour, roughly ten
    times faster than a bullet. At these speeds, even the tiniest bits of
    debris can cause damage, and windows on the Space Shuttle were replaced
    because of damage from tiny debris. With the increasing launches of
    micro-satellites and decreasing launch costs it is now easier than ever
    to launch craft into low earth orbit, and the problem is likely to
    increase many times over. Do you believe that current processes and
    regulations in the United States are sufficient to mitigate the
    increase in space debris? How can we work to address this issue?
        Answer. The potential for increased space debris is a concern for
    all operators. Intelsat is a founding member of the Space Data
    Association, a voluntary group formed for the purpose of encouraging
    and enabling the sharing of satellite flight data for both commercial
    and government satellites. We have long held the belief that sharing
    data and complete transparency is essential to safe space operations.
    With new constellations in lower earth orbit (LEO) fast approaching, it
    is more critical than ever that we increase the level of data sharing
    and transparency among the international satellite operators.
        While non-geostationary constellations will operate at a lower
    altitude than Intelsat's geostationary satellites, our satellites will
    still traverse those orbits during launch and orbit-raising to the
    geostationary orbit, so there is concern about debris potential even in
    those lower altitudes, particularly given the number of satellites
    required to cover the earth. In addition, many nanosats/cubesats are
    less agile and pose both navigational and Space Situational Awareness
    challenges (SSA). This is in contrast to geostrationary satellites
    which are more flexible and at the end of their maneuver life, our
    geostationary satellites are boosted to a graveyard altitude in
    accordance with FCC requirements--generally approximately 300 km above
    GEO.
        In our view, the keys to successful Space Situational Awareness
    are: accuracy, actionable data, transparency, reasonable regulation and
    cooperation. To achieve that, we recommend the following:

       Regulation needs to be appropriate to support spaceflight
            safety, but not limit innovation. We need appropriate
            regulation as debris mitigation standards applied to a
            geosynchronous satellite may be different than those of a large
            constellation of nano-satellites in low-earth orbit with little
            room to maneuver. And with the FAA taking a leadership role in
            the regulatory arena, this could lead to a more rational
            international framework than exists today.

       Actionable Data/Transparency. The industry needs need
            accurate, actionable data. As a result, there is a need for a
            technical capability to catalog the date, integrate the various
            formats and throw out the outliers. The growing data
            collection, exploitation and dissemination requirements far
            outpace the ability of cumbersome government acquisition
            processes to keep up. The commercial capabilities in this area
            are revolutionary, and several companies have offerings that
            would solve many of today's issues and anticipate those of
            tomorrow. It is our understanding that the U.S. Government
            leadership is aware of these capabilities and seeks to take
            advantage of them.

       Realistic covariance. This is currently missing from JSpOC
            and commercial capabilities could provide fill that void.

       Systematic debris retrieval service. The same way people of
            come together to clean up the Everest base camp, government
            should come together to clean up space of all unwanted debris.

        The Geosynchronous orbit is the most valuable piece of real estate
    that we have in Space. It should be protected by all means. While we
    need the U.S. to lead, we also need an International solution. We need
    to encourage government action as a public service for all
    international satellite operators and recommend an international pilot
    program that addresses the points above. That way, every satellite
    operator and launch service provider will design and operate their
    assets in a manner consistent with preserving a safe space environment
    for future generations
                                     ______

         Response to Written Question Submitted by Hon. Cory Booker to
                                   Greg Wyler
        Question. Mr. Wyler, you suggested a possible Commission to deal
    with space debris issues. What do you think should be the goals of this
    Commission?
        Answer. Bridging the Digital Divide must include sustainable
    development and the responsible stewardship of space. Today there are
    almost no rules for space traffic. Companies and countries can fly
    satellites in almost any location or altitude without regard to what is
    already there. This has led to overlapping system designs which, if
    built, have a high risk of physical collision. Companies and countries
    can also design satellites focused on cost without regard to safety.
    Issues like re-entry casualty risk can be all but ignored, allowing
    companies to use lower cost materials which do not burn up on re-entry
    and will impact the ground. As constellations grow to thousands of
    satellites, the continuous re-entry and earth impact create significant
    potentially uncontrollable hazards.
        This is precisely why space debris and space traffic management are
    in need of U.S. leadership. The U.S., as the largest market for
    services, has an opportunity to create a set of rules which govern
    these important space debris issues. These rules would be welcome
    globally by many other concerned nations.
        The FCC is trying to address space debris, but its current role is
    limited. The FCC regulates the use of satellite spectrum, rather than
    in-orbit collisions or re-entry casualty risk. Even if the FCC could
    take a more active role, many satellite types, such as those for
    imaging or sensing, will not even need FCC approval for their
    activities.
        This proposed Committee (whether under an existing Department,
    Committee, or Commission) should include a team with deep knowledge of
    these space debris and re-entry casualty issues and have the goals of:

      (1)  Ensuring any space objects for which U.S. authorization is
            sought meet a minimum common-sense standard to prevent space
            debris, including:

          a.  Safe altitude separation,

          b.  Designing for demise to minimize re-entry casualty risk.

          c.  Adequate positional knowledge and maneuvering capability,

          d.  Prompt satellite disposal upon decommissioning, and

      (2)  Providing leadership on the global issues of space debris and
            re-entry casualty risks. The Committee should seek the advice
            of and work with, the FAA, NASA, and other U.S. agencies and
            organizations to promote minimum safety standards for space
            traffic.

      (3)  Supporting other agencies faced with space debris related issues
            and reviewing the impact of satellite licensing with respect to
            U.S. liability for space debris under the 1967 Outer Space
            Treaty.
                                     ______

          Response to Written Questions Submitted by Maggie Hassan to
                                   Greg Wyler
        Question 1. With the recent hurricanes and tropical storms
    devastating Florida, Texas, and Puerto Rico, I'd like to talk a little
    bit about emergency preparedness. If things go according to plan with
    this industry, in a matter of years our planet will be covered with
    low-orbiting satellites providing broadband to every corner of the
    Earth. That comes with a major responsibility to bring people back on
    line after storms and disasters. How is the industry thinking about
    emergency preparedness, and backup power? Is having an all-of-the-above
    approach to connectivity that incorporates satellite, fixed, and mobile
    broadband a good idea to make sure we can rebuild after disasters?
        Answer. Satellites are the most reliable method of communications.
    Until now, their use has been limited by their cost, the high latency
    leading to a poor quality of service, and the size/difficulty of
    installing the satellite receiving terminal. OneWeb has designed and
    manufactured a new generation of satellites which overcome these prior
    obstacles. OneWeb's new terminals will be small, lightweight, and, most
    importantly, low-power. OneWeb's terminals can run on batteries for
    short durations or be powered by a small solar panel for longer
    durations.
        OneWeb was designed to operate in the most economically challenged
    emerging markets. These markets similarly have limited to no local
    power available and few structures to permanently mount large heavy
    satellite equipment. This ``work anywhere'' capability also makes
    OneWeb's terminals ideal for providing network connectivity during
    emergency situations.
        OneWeb's mobile terminals will enable first responders and families
    to have continuous connectivity regardless of the local cellular
    coverage. The mobile terminals can be placed on a vehicle and will
    include a small cell and WiFi to connect devices to the Internet. These
    mobile terminals will facilitate 100 percent coverage of the United
    States, augmenting Firestone's planned coverage.
        With regard to bringing people back online, OneWeb will produce
    easy-to-install terminals in high volume, much like any other consumer
    products. OneWeb will work with government and industry bodies to
    support adequate stocking and strategic placement of its terminals to
    support continued connectivity during terrestrial outages caused by
    emergencies or natural disaster events.

        Question 2. One issue this Committee has discussed at previous
    hearings is the issue of space debris. According to NASA, there are
    over 500,000 pieces of debris orbiting the Earth. This debris ranges in
    size from non-functional satellites, to fragmented debris as small as
    specks of paint. This debris travels around the Earth at speeds of up
    to 17,500 miles per hour, roughly ten times faster than a bullet. At
    these speeds, even the tiniest bits of debris can cause damage, and
    windows on the Space Shuttle were replaced because of damage from tiny
    debris. With the increasing launches of micro-satellites and decreasing
    launch costs it is now easier than ever to launch craft into low Earth
    orbit, and the problem is likely to increase many times over. Do you
    believe that current processes and regulations in the United States are
    sufficient to mitigate the increase in space debris? How can we work to
    address this issue?
        Answer. As mentioned above, unfortunately, the current processes
    and regulations are insufficient to adequately address the risk of
    space debris. The last significant U.S. regulation on space debris is
    more than 20 years old. The international treaty called the Outer Space
    Act was adopted fifty years ago, in 1967, long before the advent of the
    commercial space industry. This has contributed to a dynamic in which
    satellite technology and networks have evolved far beyond the
    regulatory regime created to address space debris issues. While many
    countries acknowledge this reality and are currently drafting papers
    addressing this topic, the current environment presents a unique
    opportunity for the U.S. to assume a leadership position and drive
    standards of excellence and space stewardship worldwide.
        As you have correctly pointed out, debris generation is a serious
    issue and just a single impact can cause thousands of new debris
    fragments which will damage entire altitudes for thousands of years.
    These impact and re-entry casualty risks can be minimized if Congress
    creates a regulatory regime empowered to enact simple common-sense
    rules that would address critical issues, such as preventing
    overlapping constellations or the launching of satellites manufactured
    with lower grade materials that do not burn up during re-entry and will
    impact the ground.
        Today there are still many altitudes available for safe, separated
    operation, and there are many ways to design satellites so they burn up
    upon re-entry. However, without meaningful regulations to ensure best
    practices, companies and countries can launch virtually any space
    object with no minimum orbit separation from others and no minimum
    design requirements.
        Space is the proverbial Wild West.
        To properly tame this frontier, Congress should consider the
    formation of a Space Debris Committee as a central figure to spearhead
    the protection of our space ecosystem and ensure it is maintained as an
    accessible resource for generations to come.

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