[Federal Register Volume 67, Number 159 (Friday, August 16, 2002)]
[Rules and Regulations]
[Pages 53508-53511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20817]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR PART 25

[IB Docket 01-96; FCC 02-123]


Policies and Service Rules for the Non-Geostationary Satellite 
Orbit, Fixed Satellite Service in the Ku-Band

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Federal Communications Commission has adopted licensing 
and service rules for entities to provide Fixed Satellite Service in 
the Ku-Band frequencies, specifically the 10.7-11.7 GHz, 11.7-12.2 GHz, 
12.2-12.7 GHz, 12.75-13.25 GHz, 13.75-14.0 GHz, and 14.0-14.5 GHz 
frequency bands. System proponents currently on file are required to 
amend their proposals to comply with the adopted rules. Following a 
public comment period on the amendments, qualified systems will be 
authorized to operate. Upon launch, these new systems will provide a 
variety of data, video and telephony services in Ku-Band frequencies to 
U.S. consumers, for communications in the United States and around the 
world.

DATES: Effective August 16, 2002. Written comments by the public on the 
new information collections are due October 15, 2002.

FOR FURTHER INFORMATION CONTACT:  J. Mark Young, Attorney Advisor, 
Satellite Division, International Bureau, telephone (202) 418-0762 or 
via the Internet at [email protected]. For additional information 
concerning the information collections contained in this document, 
contact Judith B. Herman at (202) 418-0214, or via the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in IB Docket No. 01-96, FCC 02-123, adopted April 18, 2002 
and released April 26, 2002. The complete text of this Report and Order 
is available for inspection and copying during normal business hours in 
the FCC Reference Information Center, Portals II, 445 12th Street, SW., 
Room CY-A257, Washington, DC. This document may also be purchased from 
the Commission's duplicating contractor, Qualex International, Portals 
II, 445 12th Street, SW. Room CY-B402, Washington, DC 20554, telephone 
(202) 863-2893, facsimile (202) 863-2898 or via e-mail 
[email protected]. It is also available on the Commission's Web site at 
http://www.fcc.gov.

Summary of the Report and Order

    1. The Federal Communications Commission has adopted sharing and 
service rules for the non-geostationary satellite orbit, fixed 
satellite service (NGSO FSS) in the Ku-Band frequencies. These systems 
will provide a variety of data, video and telephone services to U.S. 
consumers, for communications in the United States and around the 
world.
    2. The Commission adopted an innovative sharing technique that can 
accommodate all seven pending applications for this service in the 
available frequency bands. The Commission calls this technique 
avoidance of in-line interference events. Under this technique, each 
applicant, once licensed, will be authorized to operate its system in 
the entire available service spectrum, so long as it avoids causing 
harmful interference to other NGSO FSS systems.
    3. The Commission anticipates that there will be predictable 
instances when the space station of one NGSO FSS system and the earth 
station of another system are arranged in a perfect line of 
communication, an occurrence called an in-line interference event. The 
sharing technique allows and encourages the two system operators to 
exchange space station orbit data in order to predict and avoid these 
events by any mitigation means preferred. In the event the systems 
cannot agree on a preferred avoidance method, the Commission requires 
that they split the available NGSO FSS service spectrum in the Ku-Band 
equally between the systems involved in the event, for the duration of 
the event. The Report and Order allows the first launched NGSO FSS 
system to choose its preferred equal portion of the spectrum to which 
its space station will resort when an in-line interference event 
arises.
    4. The Report and Order adopts a technical definition of an in-line 
interference event so that systems can coordinate their orbits in 
advance. The Commission adopted an Earth-surface

[[Page 53509]]

based (topocentric) angular separation standard, with a 10-degree-
avoidance angle between satellites of different networks.
    5. The Report and Order adopted blanket licensing procedures for 
NGSO FSS user Earth stations in the 11.7-12.2 GHz and 12.2-12.7 GHz 
downlink bands, and the 14.0-14.5 GHz uplink bands.
    6. The Report and Order adopted service rules for the NGSO FSS 
service, including required coverage latitudes on Earth and an 
implementation milestones schedule. Licensees will be required to file 
an annual report describing the status of satellite construction and 
launch dates and a description of the use made of each satellite in 
obit. The Report and Order also requires that applicants disclose 
orbital debris mitigation plans before licensing.
    7. Applicants for NGSO FSS in the Ku-Band are required to amend 
their applications to comply with the rules adopted, on or before 
September 16, 2002. Following a public comment period, qualified 
systems will be authorized to operate.

Paperwork Reduction Act

    8. This Report and Order contains new information collections. The 
Federal Communications Commission, as part of its continuing effort to 
reduce paperwork burden, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collection(s) 
contained in this Report and Order, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. This Report and Order has 
been submitted to OMB for review under the emergency clearance 
provisions of the PRA. The Commission, under the normal provisions of 
the PRA, invites the general public, and other Federal agencies to 
comment on the information collections contained in this proceeding 
prior to submitting it to OMB for review. Public and agency comments 
are due October 15, 2002. Comments should address: (a) Whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the Commission, including whether the 
information shall have practical utility; (b) the accuracy of the 
Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    OMB Control Number: 3060-1014 (New Collection).
    Title: Ku-Band NGSO FSS Satellite Service.
    Form No.: Not applicable.
    Type of Review: New collection.
    Respondents: Business or other for-profit entities.
    Number of Respondents: 6.
    Estimated Time Per Response: 1-4 hours.
    Frequency of Response: On occasion.
    Total Annual Burden: 84 hours.
    Total Annual Costs: $87,395.
    Needs and Uses: The information collected will be used by the 
Federal Communications Commission and interested members of the public 
to ensure compliance with the rules adopted for the NGSO FSS in the Ku-
Band. Specifically, applicants for this new service will be required to 
file amendments to their applications to conform to the newly-adopted 
service rules. Without the required conforming amendments, the pending 
applications would not meet the NGSO FSS rules. The applicants will 
also be required to file applications for blanket Earth station 
authorization for multiple, technically identical Earth stations. These 
applications will allow the Commission and concerned co-frequency 
services to ensure that NGSO FSS Earth stations do not exceed power 
limits that protect other services. Licensees authorized in the NGSO 
FSS will be required to filed certifications that they meet scheduled 
milestones for constructing and launching their space stations. This 
information is required to ensure that licensees who do not build their 
licensed systems do not waste valuable public frequency resources. 
Finally, licensees will be required to file annual reports, which are 
also needed to ensure that valuable public frequencies resources are 
not wasted.

Final Regulatory Flexibility Certification

    9. The Regulatory Flexibility Act of 1980, as amended (RFA), 
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.'' The RFA generally defines 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. 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).
    10. The objective of the Report and Order and of this proceeding is 
to assign the NGSO FSS spectrum to satellite systems operators who can 
implement their proposals in a manner that serves the public interest. 
The final rules in the Report and Order 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.
    11. Neither the Commission nor the U.S. Small Business 
Administration has developed a small business size standard 
specifically for NGSO FSS licensees. The appropriate size standard is 
therefore the SBA standard for Satellite Telecommunications, which 
provides that such entities are small if they have $12.5 million or 
less in annual revenues.
    12. The rules adopted in this Report and Order apply only to 
entities providing NGSO FSS. Small businesses will not have the 
financial ability to become NGSO FSS system operators because of the 
high implementation costs, including construction of satellite space 
stations and rocket launch, associated with satellite systems and 
services. Since the spectrum and orbital resources available for 
assignment are not open to new entrants, we estimate that only the 
seven applicants whose applications are pending will be authorized by 
the Commission to provide these services. None of the seven applicants 
is a small business because each has revenues in excess of $11 million 
annually or has parent companies or investors that have revenues in 
excess of $11 million annually.
    13. Therefore, we certify that the rules adopted in this Report and 
Order will not have a significant economic impact on a substantial 
number of small entities. The Commission will send a copy of this 
Report and Order, including this Final Regulatory Flexibility 
Certification, in a report to Congress pursuant to the Congressional 
Review Act. In addition, the Report and Order and this final 
certification will be sent to the Chief Counsel for Advocacy of the 
Small Business Administration, and will be published in the Federal 
Register.

Ordering Clauses

    14. Pursuant to sections 4(i), 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

[[Page 53510]]

Report and Order is adopted, and part 25 of the Commission's Rules is 
amended.
    15. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of this Report and 
Order, including the Final Regulatory Flexibility Certification, in a 
report to Congress pursuant to the Congressional Review Act, see 5 
U.S.C. 801(a)(1)(A); and shall also send a copy of this Report and 
Order, including the Final Regulatory Flexibility Certification, to the 
Chief Counsel for Advocacy of the Small Business Administration. See 5 
U.S.C. 605(b).

List of Subjects 47 CFR Part 25

    Satellites.

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

Rule Changes

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

PART 25---SATELLITE COMMUNICATIONS

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

    Authority: 47 U.S.C. 701-744. Interprets or applies Sections 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 25.114 is amended by adding paragraph (c) (22) to read 
as follows:


Sec. 25.114  Applications for space station authorizations.

* * * * *
    (c) * * *
    (22) Applications for authorizations in the non-geostationary 
satellite orbit fixed-satellite service (NGSO FSS) in the bands 10.7 
GHz to 14.5 GHz shall also provide all information specified in 
Sec. 25.146.

    3. Section 25.115 is amended by adding paragraph (f) to read as 
follows:


Sec. 25.115  Application for earth station authorizations.

* * * * *
    (f) User transceivers in the non-geostationary satellite orbit 
fixed-satellite service in the 11.7-12.2 GHz, 12.2-12.7 GHz and 14.0-
14.5 GHz bands need not be individually licensed. Service vendors may 
file blanket applications for transceiver units using FCC Form 312, 
Main Form and Schedule B, and shall specify the number of terminals to 
be covered by the blanket license. Each application for a blanket 
license under this section shall include the information described in 
Sec. 25.146. Any earth stations that are not user transceivers, and 
which transmit in the non-geostationary satellite orbit fixed-satellite 
service in the 10.7-11.7 GHz, 12.75-13.15 GHz, 13.2125-13.25 GHz, and 
13.75-14.0 GHz bands must be individually licensed, pursuant to 
paragraph (a) of this section.

    4. Section 25.146 is amended by adding paragraphs (g) through (m) 
to read as follows:


Sec. 25.146  Licensing and operating authorization provisions for the 
non-geostationary satellite orbit fixed-satellite service (NGSO FSS) in 
the bands 10.7 GHz to 14.5 GHz.

* * * * *
    (g) System License. Applicants authorized to construct and launch a 
system of technically identical non-geostationary satellite orbit fixed 
satellite service satellites will be awarded a single ``blanket'' 
license covering a specified number of space stations to operate in a 
specified number of orbital planes.
    (h) In addition to providing the information specified in 
Sec. 25.114 above, each NGSO FSS applicant shall provide the following:
    (1) A demonstration that the proposed system is capable of 
providing fixed-satellite services on a continuous basis throughout the 
fifty states, Puerto Rico and the U.S. Virgin Islands, U.S.; and
    (2) A demonstration that the proposed system be capable of 
providing fixed-satellite services to all locations as far north as 70 
deg. latitude and as far south as 55 deg. latitude for at least 75 
percent of every 24-hour period; and
    (3) Sufficient information on the NGSO FSS system characteristics 
to properly model the system in computer sharing simulations, 
including, at a minimum, NGSO hand-over and satellite switching 
strategies, NGSO satellite beam patterns, NGSO satellite antenna 
patterns and NGSO earth station antenna patterns. In particular, each 
NGSO FSS applicant must explain the switching protocols it uses to 
avoid transmitting while passing through the geostationary satellite 
orbit arc, or provide an explanation as to how the power-flux density 
limits in Sec. 25.208 are met without using geostationary satellite 
orbit arc avoidance. In addition, each NGSO FSS applicant must provide 
the orbital parameters contained in Section A.3 of Annex 1 to 
Resolution 46. Further, each NGSO FSS applicant must provide a 
sufficient technical showing to demonstrate that the proposed non-
geostationary satellite orbit system meets the power-flux density 
limits contained in Sec. 25.208, as applicable, and
    (4) 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.
    (i) Considerations involving transfer or assignment applications.
    (1) ``Trafficking'' in bare licenses issued pursuant to paragraph 
(g) of this section is prohibited.
    (2) The Commission will review a proposed transaction to determine 
if the circumstances indicate trafficking in licenses whenever 
applications (except those involving pro forma assignment or transfer 
of control) for consent to assignment of a license, or for transfer of 
control of a licensee, involve facilities licensed pursuant to 
paragraph (g) of this section. At its discretion, the Commission may 
require the submission of an affirmative, factual showing (supported by 
affidavits of a person or persons with personal knowledge thereof) to 
demonstrate that no trafficking has occurred.
    (j) Implementation Milestone Schedule. Each NGSO FSS licensee in 
the 10.7-12.7 GHz, 12.75-13.25 GHz and 13.75-14.5 GHz frequency bands 
will be required to enter into a non-contingent satellite manufacturing 
contract for the system within one year of authorization, to complete 
critical design review within two years of authorization, to begin 
physical construction of all satellites in the system within two and a 
half years of authorization, to complete construction and launch of the 
first two satellites within three and a half years of grant, and to 
launch and operate its entire authorized system within six years of 
authorization. Each NGSO FSS licensee in the 10.7-12.7 GHz, 12.75-13.25 
GHz and 13.75-14.5 GHz frequency bands must submit certifications of 
milestone compliance within 10 days following a milestone specified in 
its authorization.
    (k) Reporting Requirements. All NGSO FSS licensees in the 10.7-12.7 
GHz, 12.75-13.25 GHz and 13.75-14.5 GHz frequency bands shall, on June 
30th of the first year following launch of the first two space stations 
in their system, and annually thereafter, file a report with the 
International Bureau and the Commission's Laurel, Maryland field office 
containing the following information:
    (1) Status of space station construction and anticipated launch

[[Page 53511]]

date, including any major problems or delay encountered;
    (2) Identification of any space station(s) not available for 
service or otherwise not performing to specifications, the cause(s) of 
these difficulties, and the date any space station was taken out of 
service or the malfunction identified.
    (l) Replacement of Space Stations within the System License Term. 
Licensees of NGSO FSS systems in the 10.7-12.7 GHz, 12.75-13.25 GHz and 
13.75-14.5 GHz frequency bands authorized through a blanket license 
pursuant to paragraph (g) 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.
    (m) 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 (g) 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. 02-20817 Filed 8-15-02; 8:45 am]
BILLING CODE 6712-01-P