[Federal Register Volume 65, Number 107 (Friday, June 2, 2000)]
[Proposed Rules]
[Pages 35312-35314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13759]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket No. 00-99; FCC 00-186]


Availability of INTELSAT Space Segment Capacity To Direct Access 
Users

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Federal Communications Commission requests information and 
comment on whether users or service providers of telecommunications 
services have sufficient opportunity to access INTELSAT space segment 
capacity directly from INTELSAT to meet their service and capacity 
requirements. The Notice of Proposed Rulemaking also seeks comment on 
potential Commission action should it conclude that sufficient 
opportunity does not exist for users and service providers to access 
INTELSAT directly.

DATES: Submit comments on or before June 23, 2000; submit reply 
comments on or before July 6, 2000; and submit responses to reply 
comments on July 11, 2000.

ADDRESSES: Office of the Secretary, Federal Communications Commission, 
445 Twelfth Street, SW, Washington, DC 20554. Comments may be filed 
using the Commission's Electronic Comment Filing System (ECFS) or by 
filing paper copies. See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24121 (May 1, 1998). Comments filed through the ECFS 
can be sent as an electronic file via the Internet to http://www.fcc.gov/e-file/ecfs.html. Generally, only one copy of an electronic 
submission must be filed. If multiple docket or rulemaking numbers 
appear in the caption proceeding, however, commentors must transmit one 
electronic copy of the comments to each docket or rulemaking number 
referenced in the caption. In completing the transmittal screen, 
commentors should include their full name, Postal Service mailing 
address, and the applicable docket or rulemaking number. Parties may 
also submit an electronic comment by Internet e-mail. To get filing 
instructions for e-mail comments, commentors should send an e-mail to 
[email protected], and should include the following words in the body of the 
message, ``get formyour e-mail address>.'' A sample form and directions 
will be sent in reply.

FOR FURTHER INFORMATION CONTACT:   
James Ball, 202-418-0427

[[Page 35313]]

Michael McCoin, 202-418-0774
Alexandria Field, 202-418-2064

SUPPLEMENTARY INFORMATION:   
    1. The Commission is required to conduct this rulemaking pursuant 
to the recently enacted Open-Market Reorganization for the Betterment 
of International Telecommunications Act (the ORBIT Act). Section 641(b) 
of the ORBIT Act requires the Commission to determine whether 
``sufficient opportunity'' exists for users and service providers ``to 
access INTELSAT space segment capacity directly from INTELSAT to meet 
their service and capacity requirements.'' If the Commission finds that 
``sufficient opportunity'' does not exist, the Commission is required 
to ``take appropriate action to facilitate direct access,'' and 
otherwise ``to take such steps as may be necessary to prevent 
circumvention of the intent'' of the section. Section 641(c) of the Act 
states that ``nothing in this section shall be construed to permit the 
modification or abrogation of any contract.''
    2. In 1999, the Commission permitted users and service providers in 
the United States to obtain Level 3 direct access to INTELSAT space 
segment capacity. Direct Access to the INTELSAT System (Report and 
Order), 64 FR 54561 (October 7, 1999), 14 FCC Rcd 15703 (1999). Level 3 
access permits non-signatory users and service providers to enter into 
contractual agreements with INTELSAT for space segment capacity at the 
same rates that INTELSAT charges its Signatories. The subsequently 
enacted ORBIT Act mandates that users and providers of 
telecommunications services shall be permitted to obtain Level 3 direct 
access to INTELSAT and requires the Commission to conduct this 
rulemaking.
    3. The Notice requests comment on whether users and service 
providers have sufficient opportunity to access INTELSAT capacity 
directly to meet their service or capacity requirements. There are two 
parts to this issue: (1) The impact of INTELSAT's current distribution 
procedures on users and service providers seeking direct access, and 
(2) the availability of INTELSAT existing and planned space segment 
capacity to satisfy the needs of users and service providers. The 
Notice reviews INTELSAT's current distribution arrangements and 
tentatively concludes that these arrangements could disadvantage new 
direct access users in obtaining capacity. The Notice also seeks 
comment on the effect of post-privatization distribution arrangements 
on the ability of U.S. users and service providers to access INTELSAT 
directly.
    4. Additionally, the Notice identifies those existing and planned 
satellites capable of serving the United States. It requires Comsat 
Corporation, the U.S. Signatory to INTELSAT, to provide information 
both as to what capacity on these satellites is uncommitted and what 
capacity has been committed, either to Comsat or other Signatories 
under INTELSAT's current distribution arrangements. The Notice requests 
users and service providers to comment on whether uncommitted capacity 
on existing and planned satellites will give them sufficient 
opportunity to access INTELSAT directly to meet their service and 
capacity requirements.
    5. The Notice also requests comment on what alternatives exist for 
taking ``appropriate action'' if the Commission finds that ``sufficient 
opportunity'' does not exist for users and service providers to access 
INTELSAT directly. The Notice tentatively concludes that the first 
option for resolving capacity shortage problems should be commercial 
solutions between Comsat and users or service providers. The Notice 
further requests comment on regulatory actions that may be appropriate 
if commercial solutions appear unattainable. It requests comment on 
whether such actions may be necessary. Comsat has tied up future 
capacity on planned and yet-to-be launched satellites that is unique to 
the needs of a particular user or service provider because of 
operational requirements of its foreign correspondent or other 
operational, commercial, technical or economic considerations. The 
burden would be on the user or service provider to demonstrate that 
capacity is unique and regulatory action required.

Initial Regulatory Flexibility Analysis

    As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission has prepared this present Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant economic impact on small 
entities by the policies and rules proposed in this Notice of Proposed 
Rulemaking (Notice). Written public comments are requested on the IRFA. 
Comments must be identified as responses to the IRFA and must be filed 
by the deadlines for comments on the Notice provided in paragraphs 34 
through 38. The Commission will send a copy of the Notice, including 
this IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration. 5 U.S.C. 603(a). In addition, the Notice and IRFA (or 
summaries thereof) will be published in the Federal Register.
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    \1\ 5 U.S.C. 603. The RFA, 5 U.S.C. 601 et seq., has been 
amended by the Contract with America Advancement Act of 1996, Public 
Law. 104-121, 110 Stat. 847 (1996) (``CWAAA''). Title II of the 
CWAAA is the Small Business Regulatory Enforcement Fairness Act of 
1996 (``SBREFA'').
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I. Need for, and Objectives of, the Proposed Rules

    The purpose of the Notice is to comply with the Orbit Act 
requirement that the Commission initiate a notice and comment 
proceeding to determine whether sufficient opportunity exists for users 
and service providers to access INTELSAT space segment capacity 
directly to meet their service or capacity requirements. If commentors 
believe that the proposals discussed in the Notice require additional 
RFA analysis, they should include a discussion of this in their 
comments.

II. Legal Basis

    The authority for the Notice is pursuant to the authority contained 
in sections 1, 4(i), 4(j), 201, 202, 214 and Title III and 403 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i) and (j), 
201, 202, 214, 301 et seq. and 403, and sections 102(c), 201(c)(2), and 
c(11), of the Communications Satellite Act of 1962, as amended, 47 
U.S.C. 721(c), 741(c)(12) and (11), section 641 of the Open-Market 
Reorganization for the Betterment of International Telecommunications 
Act, Public Law 106-180, 114 Stat. 48 (2000) 641, the applicable 
procedures set forth in Secs. 1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415 and 1.419, and 5 U.S.C. 553 of the Administrative 
Procedures Act.

III. Description and Estimate of the Number of Small Entities to 
Which Proposed Rule Will Apply

    The RFA directs agencies to provide a description of, and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. 5 U.S.C. 603(b)(3). The RFA 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization'' and ``small business 
concern'' under Section 3 of the Small Business Act. A ``small business 
concern'' is one which is (1) independently owned and operated; (2) not 
dominant in its field of operation; (3) satisfies any additional 
criteria established by the Small Business Administration (``SBA''). 15 
U.S.C. 632.
    The Commission has not developed a definition of small entities 
applicable to satellite service licensees. Therefore, the applicable 
definition of small entity is the definition under the Small Business 
Administration (``SBA'') rules applicable to Communications Services

[[Page 35314]]

``Not Elsewhere Classified.'' This definition provides that a small 
entity is one with $11 million or less in annual receipts. 13 CFR 
121.201, Standard Industrial Classification (SIC) Code 4899. According 
to the SBA, the Census Bureau estimates that there are approximately 
631 entities providing communications services, not elsewhere 
classified. Of those, between 401 and 631 reported annual receipts of 
less than $9.999 million or less and would qualify as small entities 
subject to the proposed rules.\2\ More precise data is not available.
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    \2\ U.S. Bureau of the Census, U.S. Department of Commerce, 1992 
Census of Transportation, Communications, and utilities, UC92-S-1, 
Subject Series, Establishment and Firm Size, Table D, Employment 
size of Firms: 1992, SIC Code 4899 (May 1995).
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    The proposed Notice requires Comsat Corporation (``Comsat'') to 
provide information concerning existing and future capacity in the 
INTELSAT system necessary for us to make the determination required by 
the ORBIT Act. The Commission also may seek information directly from 
INTELSAT if necessary and appropriate. Comsat's 1999 revenues were in 
excess of $11 million. Thus, Comsat does not qualify as a small entity 
under the SBA's definition. U.S. carriers and users, including any 
small entities, that may be affected indirectly, would likely benefit 
from the proposed action.

IV. Description of Projected Reporting, Recordkeeping or Other 
Compliance Requirements

    The proposals in the Notice are not expected to result in any 
additional reporting, recordkeeping and other compliance.

V. Steps Taken To Minimize Significant Economic Burden on Small 
Entities, and Significant Alternatives Considered

    The RFA requires an agency to describe any significant alternatives 
that it has considered in reaching its proposed approach, which may 
include the following four alternatives: (1) The establishment of 
differing compliance or reporting requirements or timetables that take 
into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    Without prejudgment as to whether it will determine that 
``sufficient opportunity'' exists, the Commission is seeking comment on 
alternatives for ``appropriate action'' should it determine that 
sufficient opportunity does not exist for users and service providers 
to access INTELSAT directly. The Commission tentatively concludes that 
the first option for resolving this problem should be commercial 
solutions between Comsat and users and service providers. It also seeks 
comment on possible regulatory action should commercial negotiations 
fail to yield a solution. The intent of any regulatory action would be 
to permit users and service providers, including small entities, to 
benefit from the availability of direct access to INTELSAT space 
segment capacity to meet service or capacity requirements. We do not 
expect the proposals to cause any economic burden to small entities, 
and seek comment on any issues pertinent to this.

VI. Federal Rules That Overlap, Duplicate, or Conflict With These 
Proposed Rules

    None.

List of Subjects in 47 CFR Part 25

    Satellites.

    Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 00-13759 Filed 6-1-00; 8:45 am]
BILLING CODE 6712-01-P