[Federal Register Volume 67, Number 42 (Monday, March 4, 2002)]
[Proposed Rules]
[Pages 9641-9645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5081]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket 02-19; FCC 02-30]


Non-geostationary Satellite Orbit, Fixed Satellite Service in the 
Ka-band

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, we initiate a proceeding to determine the 
means by which multiple satellite network systems will be licensed to 
operate in spectrum designated on a primary basis for the non-
geostationary satellite orbit, fixed-satellite service (``NGSO FSS''), 
and to determine service rules deferred in previous orders that will 
apply to Ka-band NGSO FSS applicants. Our goals in this proceeding are 
similar to those we have pursued for other satellite services: to 
promote competition through opportunities for new entrants and to 
provide incentives for prompt commencement of service to the public 
using state-of-the-art technology. The NGSO FSS applications in the 
current processing round Second Round Ka-Band (``Second Round'') 
propose to provide--through a variety of system designs--services such 
as high-speed Internet and on-line access, as well as other high-speed 
data, video and telephony services. As a result of the first processing 
round First Round Ka-Band (``First Round'') there is one NGSO FSS 
system authorized to provide service in the Ka-band. Thus, 
implementation of these Second Round NGSO FSS systems will introduce 
additional means of providing advanced broadband services to the public 
and will increase satellite and terrestrial services competition.

DATES: Comments are due on or before April 3, 2002; Reply Comments are 
due on or before April 3, 2002.

ADDRESSES: All filings must be sent to the Commission's Acting 
Secretary, William F. Caton, Office of the Secretary, Federal 
Communications Commission, The Portals, 445 Twelfth

[[Page 9642]]

Street, SW., Room TW-A325, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this rulemaking proceeding contact: Alyssa Roberts at (202) 418-7276, 
Internet: [email protected], or Robert Nelson at (202) 418-2341, 
Internet: [email protected], International Bureau, Federal Communications 
Commission, Washington, DC 20554.

SUPPLEMENTARY INFORMATION: We propose to license all five of the Second 
Round Ka-band applicants seeking access to the spectrum designated on a 
primary basis to NGSO FSS systems, specifically the 18.8-19.30 GHz and 
28.60-29.10 GHz frequency bands. Our preference is to have an outcome 
dictated by the service market rather than by regulatory decision. We 
seek comment on the best means to accommodate all of the applicants 
within the available spectrum, bearing in mind the Commission's 
previous authorization to Teledesic to operate domestically in the 500 
megahertz of paired spectrum designated for primary NGSO FSS services. 
We propose four possible options for spectrum sharing as a starting 
point for comment. These proposed options are based on features of the 
pending applications, a proposal received from one of the applicants, 
and upon sharing mechanisms we have previously employed with other 
satellite services.
    In adopting this Notice of Proposed Rulemaking (NPRM), we intend to 
allow expeditious deployment of NGSO FSS in the United States for the 
benefit of consumers by establishing a spectrum sharing plan and 
service rules so that systems can be implemented in compliance with 
International Telecommunication Union (ITU) deadlines, and by allowing 
market forces to play a role in the implementation of these systems. We 
believe it is in the public interest to provide opportunities for 
multiple systems to compete, providing more service choices and 
competitive prices in the marketplace. Our expectation is that NGSO FSS 
providers will provide a vigorous, additional source of broadband 
service for consumers, in competition with existing satellite and 
terrestrial services. This NPRM puts forth several options for 
assigning shared NGSO FSS spectrum resources, including incentives for 
rapid implementation of service. We believe that the proposals in this 
NPRM are sufficiently flexible to accommodate the NGSO FSS systems set 
forth by the pending applicants. We seek comment on these and other 
possible sharing proposals. Finally, we request any other suggestions 
commenters might set forth with respect to sharing or service rules for 
NGSO FSS systems.
    We also request comment on additional service rules for NGSO FSS 
licensees. We start with our existing satellite service rules for Ka-
band FSS systems adopted in the Third Report and Order.\1\ While that 
order resolved service rules and licensing qualifications for First 
Round applicants, the Commission deferred consideration of certain 
requirements for future NGSO FSS systems to a later processing round.
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    \1\ Rulemaking to Amend Parts 1, 2, 21, and 25 of the 
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band, 
to Reallocate the 29.5-30.0 GHz Frequency Band, to Establish Rules 
and Policies for Local Multipoint Distribution Services and for 
Fixed Satellite Services, Third Report and Order, 62 FR 61448 
November 18, 1997, 12 FCC Rcd 22310 (1997) (``Third Report and 
Order''). In May 2001, the Commission issued a Memorandum Opinion 
and Order disposing of petitions for clarification or 
reconsideration of the Third Report and Order filed by Motorola 
Global Communications, Inc. and Hughes Communications Galaxy, Inc. 
In this order, the Commission noted that a petition for 
reconsideration or clarification of the Third Report and Order filed 
by Teledesic would be addressed in notice and comment proceedings 
pertaining to a second licensing round for Ka-band satellite 
systems. 16 FCC Rcd 11464 (2001) Section 18.
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Initial Regulatory Flexibility Certification

    The Regulatory Flexibility Act (RFA),\2\ requires that a regulatory 
flexibility analysis be prepared for notice and comment rulemaking 
proceedings unless the agency certifies that ``the rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.'' \3\ The RFA generally defines ``small entity'' as 
having the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' \4\ In 
addition, the term ``small business'' has the same meaning as the term 
``small business concern'' under the Small Business Act.\5\ A small 
business concern is one which: (a) Is independently owned and operated; 
(b) is not dominant in its field of operation; and (c) satisfies any 
additional criteria established by the Small Business Administration 
(SBA).\6\
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    \2\ 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).
    \3\ 5 U.S.C 605(b).
    \4\ Id. at 601(6).
    \5\ Id. at 601(3) (incorporating by reference the definition of 
``small business concern'' in Small Business Act, 15 U.S.C. 632). 
Pursuant to 5 U.S.C. 601(3), the statutory definition of a small 
business applies ``unless an agency, after consultation with the 
Office of Advocacy of the Small Business Administration and after 
opportunity for public comment, establishes one or more definitions 
of such term which are appropriate to the activities of the agency 
and publishes such definition(s) in the Federal Register.''
    \6\ Small Business Act, 15 U.S.C. 632.
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    This Notice of Proposed Rulemaking (NPRM) seeks comment on proposed 
options for spectrum sharing among the second round Ka-Band non-
geostationary satellite orbit fixed-satellite service (NGSO FSS) 
applicants. The Commission proposes to license all five of the 
applicants and seeks comment on which option may best accommodate the 
applicants. Implementation of these NGSO FSS systems will introduce 
additional means of providing broadband services to consumers as 
quickly as possible. This NPRM also seeks comment on our proposals for 
service rules to apply to NGSO FSS systems.\7\ These actions are 
necessary for the Commission to evaluate these proposals and seek 
comment from the public on any other alternatives. The objective of 
this proceeding is to assign the NGSO FSS spectrum in an efficient 
manner and create rules to ensure systems implement their proposals in 
a manner that serves the public interest and enables the U.S. to 
preserve its ITU international coordination priority. We believe that 
adoption of the proposed rules will reduce regulatory burdens and, with 
minimal disruption to existing FCC permittees and licensees, result in 
the continued development of NGSO FSS and other satellite services to 
the public. If commenters believe that the proposed rules discussed in 
the Notice require additional RFA analysis, they should include a 
discussion of this in their comments.
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    \7\ See paragraphs 37-44, supra.
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    The Commission has not developed a definition of small entities 
applicable to geostationary or non-geostationary satellite orbit fixed-
satellite or mobile satellite service operators. Therefore, the 
applicable definition of small entity is the definition under the SBA 
rules applicable to Communications Services ``Not Elsewhere 
Classified.'' This definition provides that a small entity is one with 
$11.0 million or less in annual receipts.\8\ This Census Bureau 
category is very broad, and commercial satellite services constitute 
only a subset of the total number of entities included in the category.
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    \8\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) Code 51334.
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    The rules proposed in this document apply only to entities 
providing NGSO FSS. Small businesses will not likely have the financial 
ability to become

[[Page 9643]]

NGSO FSS system operators because of the high implementation costs 
associated with satellite systems and services. Since there is limited 
spectrum and orbital resources available for assignment, we estimate 
that only five applicant entities, whose applications are pending, will 
be authorized by the Commission to provide these services. We expect 
that none of these would be considered small businesses under the SBA 
definition. Thus, the rules proposed in this Notice of Proposed 
Rulemaking, if adopted, would not have a significant economic impact on 
a substantial number of small entities.
    The Commission will send a copy of this Notice of Proposed 
Rulemaking, including this initial certification, to the Chief Counsel 
for Advocacy of the Small Business Administration. A copy will also be 
published in the Federal Register. See 5 U.S.C. 605(b).

Ordering Clauses

    Pursuant to sections 4(1), 7(a), 303(c), 303(f), 303(g), and 303(r) 
of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
157(a), 303(c), 303(f), 303(g) and 303(r), this Notice of Proposed 
Rulemaking is hereby ADOPTED.
    Service Rules. Because our Third Report and Order focused on First 
Round GSO and NGSO systems, we deferred consideration of several NGSO 
FSS rules to a later processing round. We now seek comment on the 
following licensing and service rules in light of the decisions made in 
prior orders, our goal of ensuring expedited licensing, and considering 
the NGSO FSS spectrum sharing proposals presented in this Notice.
    Financial qualifications. As noted above, the Commission waived the 
financial qualification requirement for the First Round Ka-band 
applicants, but deferred consideration of the applicability of this 
rule to Second Round applicants to a later processing round. 
Historically, the Commission has fashioned financial requirements for 
satellite services on the basis of entry opportunities in the 
particular service being licensed.\9\ In cases where it can accommodate 
all pending applications and future entry is possible, the Commission 
has not looked to current financial ability as a prerequisite to a 
license grant. But in situations where potential applicants appear to 
have requirements that exceed the available spectrum or orbital 
resources, the Commission has invoked a strict financial qualifications 
standard. This policy is designed to make efficient use of spectrum by 
preventing underfinanced applicants from depriving another fully 
capitalized applicant of the opportunity to provide service to the 
public. Since this NPRM proceeds from the assumption that a spectrum 
sharing plan can be devised to accommodate all the pending applicants' 
proposed systems and future entry, we are not proposing a strict 
financial qualification standard for this service with respect to the 
Second Round NGSO FSS applicants. If, however, the record developed in 
this proceeding indicates that the allocated spectrum cannot 
accommodate all applicants, we may impose a strict financial 
qualifications standard.
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    \9\ 47 CFR 25.140(c), 25.142(a)(4), and 25.143(b)(3).
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    Should we determine the need to impose strict financial 
qualifications, we seek comment on whether to modify our existing 
financial qualifications requirement. Presently, NGSO FSS applicants 
are required to demonstrate internal assets or committed financing 
sufficient to cover construction, launch, and first-year operating 
costs of its entire system. We propose to require the commitment of 
funds not previously committed for any other purpose. If strict 
financial qualifications are invoked, applicants for NGSO FSS licenses 
will be required to demonstrate that they have assets or committed 
financing for their NGSO FSS systems that are separate and apart from 
any funding necessary to construct and operate any other licensed 
satellite systems. We request comment on this proposal, and ask whether 
there are alternative means of oversight we can employ to ensure that 
licensees will be able to commence timely service to the public.
    Implementation milestones. As with all other satellite services, we 
propose that all NGSO FSS Ka-band licensees adhere to a strict 
timetable for system implementation. Milestones are intended to ensure 
that licensees are building their systems in a timely manner and that 
the spectrum resources are not being held by licensees unable or 
unwilling to proceed with their plans to the detriment of other 
operators who might benefit the public interest by implementing 
satellite systems. We propose implementation milestones that track 
schedules recently imposed on other NGSO systems.\10\ Specifically, we 
propose that NGSO FSS Ka-band licensees must enter into a non-
contingent satellite manufacturing contract for the system within one 
year of authorization, complete critical design review within two years 
of authorization, begin physical construction of all satellites in the 
system within two and half years of authorization, and complete 
construction and launch of the first two satellites within three and a 
half years of grant. The entire system will have to be launched and 
operational within six years of authorization. As is consistent with 
our practice in other services, we propose to require operators to 
submit certifications of milestone compliance, or file a disclosure of 
non-compliance, within 10 days following a milestone specified in the 
system authorization.
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    \10\ The Establishment of Policies and Service Rules for the 
Mobile Satellite Service in the 2 GHz Band, Report and Order, 15 FCC 
Rcd 16127 (2000) (``2 GHz Report and Order'').
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    Alternatively, we propose to modify the implementation milestones 
for NGSO FSS licensees by tying the milestones to the ITU bring into 
use date.\11\ For example, we could require applicants to demonstrate 
that they are on a launch manifest at a designated point some months 
before the ITU bringing into use date. In addition, we could require 
licensees to also meet the intermediate milestones noted above, that 
is, enter into a non-contingent contract, complete critical design 
review and begin physical construction of all satellites within a 
specified time frame prior to the ITU bringing into use date. We seek 
comment on what time frames would be appropriate. We seek comment on 
these or other possible approaches to implementation milestones.\12\
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    \11\ The ITU deadline for putting these U.S. systems into use is 
May 18, 2003. A two-year extension may be granted under certain 
circumstances, thus the latest date to bring into use at least one 
satellite by each of the second round applicants is May 18, 2005.
    \12\ We plan to undertake an investigation of milestones issues 
in a separate, broader proceeding, not limited to NGSO FSS service.
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    Reporting requirements. We propose a slight modification to 
Sec. 25.145 of our rules, which governs reporting requirements for FSS 
systems. FSS licensees are required to file an annual report with the 
Commission describing: the status of satellite construction and 
anticipated launch dates, including any major delays or problems 
encountered; and a detailed description of the use made of each 
satellite in orbit.\13\ Licensees should request an extension of time 
if they anticipate delays in these schedules. We propose to apply these 
requirements to NGSO FSS systems. We do not, however, propose to apply 
a requirement to report unscheduled satellite outages.\14\ The outage 
reporting requirement was a means of spectrum management instituted to 
ensure that

[[Page 9644]]

satellite spectrum resources were not warehoused in orbit. We believe 
that the operational characteristics of NGSO systems obviate the need 
for this reporting requirement. One of the second round applicants, 
@Contact, suggests that applicants be required to file quarterly 
reporting requirements to enable the Commission to monitor more closely 
milestone compliance. We request comment on these proposals. We also 
seek comment on a proposal to require NGSO FSS operators to file 
affidavits certifying whether milestone requirements are met following 
the appropriate milestone deadlines.\15\ The Commission would retain 
the right to request additional information (e.g., copies of 
construction contracts), as required to ensure compliance with 
milestones. Failure to file a timely certification or disclosure of 
non-compliance would result in automatic cancellation of an operator's 
system authorization, with no further action required on the 
Commission's part.\16\ We seek comment on this proposal.
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    \13\ 47 CFR 25.210(l)(1) and (3).
    \14\ 47 CFR 25.210(l)(2).
    \15\ This requirement currently applies to Big LEO and 2 GHz 
operators.
    \16\ See 47 CFR 25.161.
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    Orbital Debris Mitigation. Currently, the FCC addresses concerns 
regarding orbital debris of satellite systems on a case-by-case basis. 
The Commission analyzes such concerns under the general ``public 
interest, convenience, and necessity,'' standard in the Communications 
Act. In our 2 GHz Report and Order,\17\ we adopted a requirement that 
applicants for 2 GHz MSS authorizations disclose their orbital debris 
mitigation plans. Like the Ku-band Notice of Proposed Rulemaking \18\ 
we propose to apply that requirement to NGSO FSS applicants as well, 
and seek comment on its application to this service. We also intend to 
commence a separate rulemaking proceeding to consider whether to adopt 
filing requirements for all FCC-licensed satellite services, including 
orbital debris mitigation issues, the selection of safe flight profiles 
and operational configurations, as well as post-mission disposal 
practices.
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    \17\ 2 GHz Report and Order, 65 FR 54555, 15 FCC Rcd at 16187-
88, Section 135-138.
    \18\ Ku-Band NPRM, Section 66-67.
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    System License and License Terms. NGSO systems historically consist 
of constellations of technically identical satellites that may be 
launched and retired at different times. Consequently, existing NGSO 
satellites in other bands and services have been authorized under 
blanket licenses.\19\ Under this approach, licensees are issued a 
single blanket authorization for the construction, launch and operation 
of a specified number of technically identical space stations that 
constitute the satellite network constellation. The authorization 
covers all construction and launches necessary to implement the 
complete constellation and to maintain it until the end of the license 
term, including any replacement satellites necessitated by launch or 
operational failure, or by retirement of satellites prior to the end of 
the license period. All replacement satellites, however, must be 
technically identical to those in service, including the same orbital 
parameters, and may not cause a net increase in the number of operating 
satellites. The license terms runs from the date on which the first 
space station in the system begins transmitting and receiving radio 
signals, and is valid for 10 years from that point in time. There is a 
filing window for system replacement applications prior to the 
expiration of the license that allows sufficient time for the 
Commission to act upon replacement system applications. We believe it 
is appropriate to continue using this model of licensing for the NGSO 
FSS. We propose to require that replacement applications be filed no 
earlier than three months prior to, and no later than one month after, 
the end of the eighth year of the existing system license. We request 
comment on this proposal.
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    \19\ See, e.g., Amendment of the Commission's Rules to Establish 
Rules and Policies Pertaining to Mobile Satellite Service in the 
1610-1626/2483.5-2500 MHz Frequency Bands, Report and Order, 66 FR 
30361, 9 FCC Rcd 536 (1994).
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    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 of this proceeding, 
however, commenters must transmit one electronic copy of the comments 
to each docket or rulemaking number referenced in the caption. In 
completing the transmittal screen, commenters 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, 
commenters should send an e-mail to [email protected], and should include 
the following words in the body of the message, ``get form your e-mail 
address.'' A sample form and directions will be sent in reply.
    Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to: William 
F. Caton, Acting Secretary, Office of the Secretary, Federal 
Communications Commission, The Portals, 445 Twelfth Street, SW., Room 
TW-A325, Washington, DC 20554. Such a submission should be on a 3.5 
inch diskette formatted in an IBM compatible format using Microsoft 
Word for Windows or compatible software. The diskette should be 
accompanied by a cover letter and should be submitted in ``read only'' 
mode. The diskette should be clearly labeled with the commenter's name, 
IB Docket No. 02-19, type of pleading (comment or reply comment), date 
of submission, and the name of the electronic file on the diskette. The 
label should also include the following phrase ``Disk Copy--Not an 
Original.'' Each diskette should contain only one party's pleading, 
preferably in a single electronic file. In addition, commenters must 
send diskette copies to the Commission's copy contractor, Qualex 
International, 445 12th Street, SW., Room CY-B402, Washington, DC 
20554.
    Alternative formats (computer diskette, large print, audio 
recording, and Braille) are available to persons with disabilities by 
contacting Brian Millin at (202) 418-7426 voice, (202) 418-7365 TTY, or 
[email protected]>. This NPRM can also be downloaded in Microsoft Word 
and ASCII formats at http://www.fcc.gov/ib>.
    This Notice of Proposed Rulemaking (Notice) seeks comment on 
proposed options for spectrum sharing among the second round Ka-Band 
non-geostationary satellite orbit fixed-satellite service (NGSO FSS) 
applicants. The Commission proposes to license all five of the 
applicants and seeks comment on which option may best accommodate the 
applicants. Implementation of these NGSO FSS systems will introduce 
additional means of providing broadband services to consumers as 
quickly as possible. This document also seeks comment on our proposals 
for service rules to apply to NGSO FSS systems.\20\ These actions are 
necessary for the Commission to evaluate these proposals and seek 
comment from the public on any other alternatives. The objective of 
this proceeding is to assign the NGSO FSS spectrum in an efficient 
manner and create rules to ensure systems implement their proposals in 
a manner that serves the public interest and enables the U.S. to 
preserve its ITU international coordination priority. We believe that 
adoption of the proposed rules will reduce regulatory burdens and, with 
minimal disruption to

[[Page 9645]]

existing FCC permittees and licensees, result in the continued 
development of NGSO FSS and other satellite services to the public. If 
commenters believe that the proposed rules discussed in the NPRM 
require additional RFA analysis, they should include a discussion of 
this in their comments.
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    \20\ See paragraphs 37-44, supra.
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    The Commission has not developed a definition of small entities 
applicable to geostationary or non-geostationary satellite orbit fixed-
satellite or mobile satellite service operators. Therefore, the 
applicable definition of small entity is the definition under the SBA 
rules applicable to Communications Services ``Not Elsewhere 
Classified.'' This definition provides that a small entity is one with 
$11.0 million or less in annual receipts.\21\ This Census Bureau 
category is very broad, and commercial satellite services constitute 
only a subset of the total number of entities included in the category.
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    \21\ 13 C.F.R. 121.201, North American Industry Classification 
System (NAICS) Code 51334.
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    The rules proposed in this Notice apply only to entities providing 
NGSO FSS. Small businesses will not likely have the financial ability 
to become NGSO FSS system operators because of the high implementation 
costs associated with satellite systems and services. Since there is 
limited spectrum and orbital resources available for assignment, we 
estimate that only five applicant entities, whose applications are 
pending, will be authorized by the Commission to provide these 
services. We expect that none of these would be considered small 
businesses under the SBA definition. Thus, the rules proposed in this 
Notice of Proposed Rulemaking, if adopted, would not have a significant 
economic impact on a substantial number of small entities.
    The Commission will send a copy of this Notice of Proposed 
Rulemaking, including this initial certification, to the Chief Counsel 
for Advocacy of the Small Business Administration. A copy will also be 
published in the Federal Register. See 5 U.S.C. 605(b).

List of Subjects in 47 CFR Part 25

    Communications common carriers, Reporting and recordkeeping 
requirements, Satellites, Telecommunications.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR part 25 as follows:

PART 25--SATELLITE COMMUNICATIONS

    1. The authority citation for part 25 continues to read as follows:

    Authority: 47 U.S.C. 701-744. Interprets or applies Sec. 4, 301, 
302, 303; 307, 309 and 332 of the Communications Act, as amended, 47 
U.S.C. Sections 154, 301, 302, 303, 307, 309 and 332, unless 
otherwise noted.

    2. Section 25.145 is amended by removing ``and'' at the end of 
paragraph (c)(1), by removing the period at the end of paragraph (c)(2) 
and adding ``; and'' in its place, by removing ``and'' at the end of 
paragraph (g)(1)(ii), by removing the period at the end of paragraph 
(g)(1)(iii) and adding ``; and'' in its place, adding paragraphs 
(c)(3), (g)(1)(iv), (i), (j) and (k) and revising paragraph (f) to read 
as follows:


Sec. 25.145  Licensing conditions for the Fixed-Satellite Service in 
the 20/30 GHz bands.

* * * * *
    (c) * * *
    (3) A description of the design and operational strategies that it 
will use, if any, to mitigate orbital debris. Each applicant must 
submit a casualty risk assessment if planned post-mission disposal 
involves atmospheric re-entry of the spacecraft.
* * * * *
    (f) Implementation milestone schedule. Each NGSO FSS licensee in 
the 18.8-19.3 GHz and 28.6-29.1 GHz frequency bands will be required to 
enter into a non-contingent satellite manufacturing contract for the 
system within one year or authorization, to complete critical design 
review within two years of authorization, to begin physical 
construction of the satellites in the system within two and a half 
years of grant, and to launch and operate its entire authorized system 
within six years of authorization.
    (g) * * *
    (1) * * *
    (iv) All operators of NGSO FSS systems in the 18.8-19.3 GHz and 
28.6-29.1 GHz bands shall, within 10 days after a required 
implementation milestone as specified in the system authorization, 
certify to the Commission by affidavit that the milestone has been met 
or notify the Commission by letter that it has not been met. At its 
discretion, the Commission may require the submission of additional 
information (supported by affidavit of a person or persons with 
knowledge thereof) to demonstrate that the milestone has been met. 
Failure to file a timely certification of milestones, or filing 
disclosure of non-compliance, will result in automatic cancellation of 
the authorization with no further action required on the Commission's 
part.
* * * * *
    (i) Financial requirements. Each NGSO FSS applicant must 
demonstrate, on the basis of the documentation contained in its 
application, that it is financially qualified to meet the estimated 
costs of the construction and/or launch and any other initial expenses 
of all proposed space stations in its system and the estimated 
operating expenses for one year after the launch of the proposed space 
station(s). Financial qualifications must be demonstrated in the form 
specified in Secs. 25.140(c) and 25.140(d). In addition, applicants 
relying on current assets or operating income must submit evidence that 
those assets are separate and apart from any funding necessary to 
construct or operate any other licensed satellite system. Failure to 
make such a showing will result in the dismissal of the application.
    (j) Replacement of space stations within the system license term. 
Licensees of NGSO FSS systems in the 18.8-19.3 GHz and 28.6-29.1 GHz 
frequency bands authorized through a blanket license pursuant to 
paragraph (b) of this section need not file separate applications to 
launch and operate technically identical replacement satellites within 
the term of the system authorization. However, the licensee shall 
certify to the Commission, at least thirty days prior to launch of such 
replacement(s) that:
    (1) The licensee intends to launch a space station into the 
previously-authorized orbit that is technically identical to those 
authorized in its system authorization; and
    (2) Launch of this space station will not cause the licensee to 
exceed the total number of operating space stations authorized by the 
Commission.
    (k) In-orbit spares. Licensees need not file separate applications 
to operate technically identical in-orbit spares authorized as part of 
the blanket license pursuant to paragraph (b) of this section. However, 
the licensee shall certify to the Commission, within 10 days of 
bringing the in-orbit spare into operation, that operation of this 
space station did not cause the licensee to exceed the total number of 
operating space stations authorized by the Commission.

[FR Doc. 02-5081 Filed 2-27-02; 4:02 pm]
BILLING CODE 6712-01-P