[Federal Register Volume 61, Number 152 (Tuesday, August 6, 1996)]
[Proposed Rules]
[Pages 40772-40774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19924]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket No. 96-132; FCC 96-259]


Satellite Licensing Procedures

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: American Mobile Satellite Corporation (``AMSC'') is the only 
U.S. mobile satellite service (``MSS'') system currently authorized to 
operate in the upper L-band. However, international coordination has 
been extremely difficult and we do not believe we will be able to 
secure sufficient spectrum in the upper L-band for AMSC's operations. 
Therefore, the Commission

[[Page 40773]]

has proposed to assign the first 28 MHz of spectrum (14 MHz for Earth-
to-space transmissions and 14 MHz for space-to-Earth transmissions) 
internationally coordinated in both the upper and lower portions of L-
band to AMSC. This proposal will help to ensure that MSS becomes a 
reality in the L-band and AMSC, a licensed and partly operating 
satellite system, is able to provide service.

DATES: Comments must be submitted on or before September 3, 1996; reply 
comments must be submitted on or before September 23, 1996.

ADDRESSES: Federal Communications Commission, 1919 M Street, NW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Paula Ford, International Bureau, 
Satellite Policy Branch, (202) 418-0760; Kathleen Campbell, 
International Bureau, Satellite Policy Branch (202) 418-0753.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making (``NPRM'') in IB Docket No. 96-132; FCC 96-259, 
adopted June 6, 1996 and released June 18, 1996. The complete text of 
this Notice of Proposed Rule Making is available for inspection and 
copying during normal business hours in the FCC Reference Center (Room 
239), 1919 M Street, NW., Washington, DC, and also may be purchased 
from the Commission's copy contractor, International Transcription 
Service, (202) 857-3800, 2100 M Street, NW., Suite 140, Washington, DC. 
20037.
    Title: Establishing Rules and Policies for the Use of Spectrum for 
Mobile Satellite Service in the Upper and Lower L-band.
    As required by section 603 of the Regulatory Flexibility Act, the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the expected impact on small entities of the proposals 
suggested in this document.

Summary of Notice of Proposed Rule Making

    1. In the course of international coordination, it has become clear 
that the U.S. will not be able to secure sufficient spectrum in the 
upper L-band for its only licensee in the band, AMSC. Never before have 
we been unable to secure sufficient spectrum to support a satellite 
system that already has been licensed, partly constructed, and 
operating. Therefore, the Commission proposes to limit eligibility for 
the first 14 MHz of spectrum coordinated for Earth-to-space 
transmissions and the first 14 MHz coordinated for space-to-Earth 
transmissions in the upper and/or lower L-bands to AMSC and proposes to 
modify AMSC's license accordingly.
    2. Coordination in the L-band has been extremely difficult. In the 
entire L-band, there is 66 MHz of spectrum available for use by 
Inmarsat, Canada, Mexico, the Russian Federation, and the United States 
who, at the present time, are coordinating spectrum for a variety of 
MSS systems in the vicinity of North America. The United States has 
been at a disadvantage during this coordination because it began 
coordinating the upper L-band and only later began focusing on the 
lower L-band while Inmarsat and the other administrations have been 
coordinating spectrum throughout the entire L-band.
    3. Furthermore, Inmarsat, the United States, and the other 
administrations have claimed requirements totalling significantly more 
than the 66 MHz available. Moreover, the current designs of mobile 
terminals for these MSS systems do not permit them to share frequencies 
in adjacent or similar geographic areas. Given this demand and the 
technical restrictions, we do not think it will be possible to secure 
for AMSC the 28 MHz of spectrum we have authorized it to use in the 
upper L-band. In fact, it is unlikely that we will be able to 
coordinate more than 10 to 12 MHz in the upper L-band. Such an amount 
appears insufficient to operate the satellite system we authorized AMSC 
to build.
    4. We believe the public interest is best served by allowing AMSC 
to use spectrum in the lower L-band. The reasons for supporting MSS in 
the L-band are as valid today as they were in 1986. MSS can serve areas 
of the country that are too remote or sparsely populated to be served 
by terrestrial land mobile systems. It can generate a host of new 
services by providing communication between virtually any point in the 
country, irrespective of distance. MSS is uniquely suited for meeting 
the needs of the transportation, petroleum, and other vital industries. 
It can meet rural public safety needs and provide emergency 
communications to any area in times of emergencies and natural 
disasters. Moreover, the L-band is currently the only primary MSS band 
in which we have licensed geostationary MSS systems. Geostationary and 
non-geostationary MSS systems each have distinctive service 
characteristics, and we believe that each type of service should be 
allowed to demonstrate its advantages. If geostationary MSS is to have 
that opportunity in the near term, it must be in the L-band.
    5. Coordinating spectrum for AMSC in the lower L-band is 
particularly attractive because, with the exception of the United 
States, the same administrations and systems coordinating spectrum in 
the upper L-band are currently coordinating spectrum in the lower L-
band. AMSC's system operates in geostationary orbit and can be timely 
coordinated with the other entities who have published in advance with 
the International Telecommunication Union their plans to implement 
geostationary systems in the lower L-band. The lower L-band can also 
accommodate both voice and data services which the currently licensed 
system expects to provide.
    6. AMSC--having already constructed and launched one of its three 
authorized satellites--is in the best position to provide MSS to the 
public expeditiously. If AMSC, through no fault of its own, obtains 
insufficient spectrum for its system, its service will be jeopardized, 
and no other potential licensee in the lower L-band will be able to 
provide service for years. AMSC's substantial progress toward full 
implementation thus figures heavily in our public interest analysis. 
This is especially true because AMSC's expenditures were actually 
required by the construction and launch milestones in AMSC's license.
    7. While all satellite licenses are granted subject to the 
uncertainties of international coordinations, the public interest 
requires that a Commission license carry with it some reasonable 
expectation that it will permit the holder to implement its system. 
Otherwise applicants and licensees--as well as their investors and 
potential customers--may be unwilling to commit the significant 
resources necessary to implement proposed systems, and this will have a 
chilling effect on the introduction of new services to the public. The 
Commission naturally does not guarantee that any U.S.-licensed system 
will be profitable, and it certainly cannot guarantee that other 
administrations will always accommodate U.S.-licensed systems. We can 
and should, however, take reasonable and appropriate steps to ensure 
that our licensees have a fair opportunity to compete.
    8. Opening the lower L-band for competing applications would 
present at least a theoretical possibility for a second U.S. licensee 
to begin providing MSS in the L-band in competition with AMSC. However, 
our experience in L-band coordinations since 1989 leads us to question 
whether this theoretical possibility is a realistic one. In particular, 
we note that it is unlikely that we could coordinate more than 10 MHz 
in the lower L-band for another

[[Page 40774]]

U.S. system, and we estimate that 20 MHz is the minimum amount of 
spectrum necessary for a viable MSS system.
    9. Even under the proposal we make today, we are pessimistic about 
coordinating all 28 MHz of spectrum we have licensed AMSC to use. We do 
expect, however, to coordinate enough spectrum to permit AMSC to 
operate at least one of its three satellites in a cost-effective 
manner. If contrary to our expectation, we are able to coordinate more 
than 28 MHz of spectrum in the upper and/or lower L-bands, we propose 
to allow other parties to apply for the additional spectrum.
    10. In addition to adopting rules that permit us to assign AMSC 
spectrum in the upper and lower L-bands different from that which AMSC 
is currently authorized to use, we also propose to modify AMSC's 
authorization to include spectrum in the entire L-band, lower and 
upper. Therefore, this NPRM shall also serve as notice to AMSC of a 
proposal to modify its current license, and protests may be filed in 
response to this NPRM.

Ordering Clauses

    11. Accordingly, pursuant to authority contained in sections 4(i), 
4(j), 303, 316, and 403 of the Communications Act of 1934, as amended, 
47 U.S.C. 154(i), 154(j), 303, 316, and 403, we hereby give notice of 
our intent to adopt the licensing policies set forth herein and to 
modify, as specified herein, the license currently held by AMSC for 
provision of MSS service.
    12. It is further ordered that the Secretary shall send a copy of 
this Notice of Proposed Rule Making, including the Initial Regulatory 
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small 
Business Administration in accordance with 5 U.S.C. 601 et seq. (1981) 
and pursuant to Sec. 1.87 of the rules, shall serve a copy of this NPRM 
on AMSC.

Administrative matters

    13. This is a rulemaking proceeding to develop policies for the 
assignment of spectrum but because the Commission also proposes to 
modify a license, this proceeding is also an adjudication. Pursuant to 
Sec. 1.1200(a) of the Commission's rules, Sec. 1.1208 detailing the ex 
parte procedures for adjudicatory proceedings is waived. The entire 
proceeding both, rulemaking and adjudication, shall be treated as 
``non-restricted'' for ex parte purposes in order to assist the 
Commission in developing a more complete record on which a well-
reasoned decision can be made. 47 CFR 1.1200(a) and 1.1206. Ex parte 
presentations are permitted, except during the Sunshine Agenda period, 
provided they are disclosed as provided in the Commission's rules. See 
generally 47 CFR 1.1202, 1.1203, and 1.1206(a). The Sunshine Agenda 
period is the period of time that commences with the release of public 
notice that a matter has been placed on the Sunshine Agenda and 
terminates when the Commission (1) Releases the text of a decision or 
order in the matter; (2) issues a public notice stating that the matter 
has been deleted from the Sunshine Agenda; or (3) issues a public 
notice stating that the matter has been returned to the staff for 
further consideration, whichever occurs first. 47 CFR 1.1202(f). During 
the Sunshine Agenda period, no presentations, ex parte or otherwise, 
are permitted unless specifically exempted. 47 CFR 1.1203.
    14. Pursuant to applicable procedures set forth in Secs. 1.415 and 
1.419 of the Commission's rules, 47 CFR 1.415 and 1.419, interested 
parties may file comments on or before September 3, 1996, and reply 
comments on or before September 23, 1996. To file formally in this 
proceeding, you must file an original and five copies of all comments, 
reply comments, and supporting comments. If you want each Commissioner 
to receive a personal copy of your comments, send additional copies to 
Office of the Secretary, Federal Communications Commission, Washington, 
D.C. 20554. Comments and reply comments will be available for public 
inspection during regular business hours in the Federal Communications 
Commission, Reference Center, Room 239, 1919 M Street, NW., Washington, 
DC 20554. For further information concerning this NPRM contact Paula 
Ford at (202) 418-0760 or Kathleen Campbell at (202) 418-0753.

Initial Regulatory Flexibility Act Statement

    15. As required by section 603 of the Regulatory Flexibility Act, 
the Commission has prepared an Initial Regulatory Flexibility Analysis 
(``IRFA'') of the expected impact on small entities of the proposals 
suggested in this document. The IRFA is set forth in Appendix A of the 
NPRM. Written public comments are requested on the IRFA. These comments 
must be filed in accordance with the same filing deadlines as comments 
on the rest of the NPRM, but they must have a separate and distinct 
heading designating them as responses to the Initial Regulatory 
Flexibility Analysis. The Secretary shall send a copy of this NPRM, 
including the Initial Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with paragraph 603(a) of the Regulatory Flexibility Act, Pub.L. No. 96-
354, 94 Stat. 1164, 5 U.S.C. 601 et seq. (1981).

List of Subjects in 47 CFR Part 25

    Satellites.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-19924 Filed 8-5-96; 8:45 am]
BILLING CODE 6712-01-P