[Federal Register Volume 68, Number 166 (Wednesday, August 27, 2003)]
[Rules and Regulations]
[Pages 51499-51508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21649]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 25

[IB Docket Nos. 02-34 and 02-54, FCC 03-102]


Satellite Licensing Procedures

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this document, the Commission adopts new satellite 
licensing procedures, intended to enable the Commission to issue 
satellite slicenses more quickly. In addition, the Commission 
eliminates the anti-trafficking rule for satellites, together with new 
safeguards to protect against speculation. These actions are necessary 
to expedite provision of satellite services to the public, without 
allowing satellite license applicants to abuse the Commission's 
licensing procedures.

DATES: Effective August 27, 2003, except for Sec. Sec.  25.137(d)(4), 
25.164 (c) through

[[Page 51500]]

(e), and 25.165 which will become effective September 11, 2003. The 
Commission has adopted a freeze on new satellite applications. This 
freeze is terminated as of August 27, 2003.

FOR FURTHER INFORATION CONTACT: Steven Spaeth, Attorney Advisor, 
Satellite Division, International Bureau, telephone (202) 418-1539 or 
via the Internet at [email protected].

SUPPLMENTARY INFORMATION: This summary of the Commission's First Report 
and Order, IB Docket Nos. 02-34 & 02-54, FCC 03-102, adopted April 23, 
2003, and released on May 19, 2003. The complete text of this First 
Report and Order is available for inspection and copying during normal 
business hours in the FCC Reference Center (Room CY-A257), 445 12th 
Street, SW., Washington, DC 20554, and also may be purchased from the 
Commission's copy 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.
    Paperwork Reduction Act Analysis: The actions taken in the First 
Report and Order have been analyzed with respect to the Paperwork 
Reduction Act of 1995 (PRA), Pub. L. 104-13, and Sec. Sec.  
25.137(d)(4), 25.164(c) through (e), and 25.165 have been found to 
impose new or modified reporting requirements or burdens on the public. 
Implementation of these new or modified reporting and recordkeeping 
requirements has been approved by the Office of Management and Budget 
(OMB). OMB granted approval for this information collection by means of 
a Notice of Action for collection number 3060-1007 dated August 13, 
2003.
    Regulatory Flexibility Analysis: As required by the Regulatory 
Flexibility Act (RFA),\1\ an Initial Regulatory Flexibility Analysis 
(IRFA) was incorporated in the Notice of Proposed Rule Making (NPRM) in 
IB Docket No. 02-34.\2\ The Commission sought written public comment on 
the proposals in the NPRM, including comment on the IRFA. This Final 
Regulatory Flexibility Analysis (FRFA) conforms to the RFA.\3\
---------------------------------------------------------------------------

    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601--612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Pub. L. No. 104-121, Title II, 110 Stat. 857 (1996).
    \2\ Amendment of the Commission's Space Station Licensing Rules 
and Policies, Notice of Proposed Rulemaking, IB Docket No. 02-34, 67 
FR 12498 (Mar. 19, 2002) (NPRM).
    \3\ See 5 U.S.C. 604.
---------------------------------------------------------------------------

    Need for, and Objectives of, the Proposed Rules. The objective of 
the proposed rules is to discourage parties from filing ``speculative'' 
satellite applications, i.e., applying for a satellite license without 
intending to construct the satellite facilities. These rule revisions 
are needed because speculative satellite applications can delay or 
preclude other parties from obtaining a satellite license and providing 
service to the public.
    Summary of Significant Issues Raised by Public Comments In Response 
to the IRFA. No comments were submitted in response to the IRFA.
    Description and Estimate of the Number of Small Entities To Which 
Rules 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.\4\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.''\5\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\6\ A small business concern is one which: 
(1) is independently owned and operated; (2) is not dominant in its 
field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\7\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.''\8\ 
Nationwide, as of 1992, there were approximately 275,801 small 
organizations.\9\ ``Small governmental jurisdiction'' generally means 
``governments of cities, counties, towns, townships, villages, school 
districts, or special districts, with a population of less than 
50,000.''\10\ As of 1992, there were approximately 85,006 such 
jurisdictions in the United States.\11\ This number includes 38,978 
counties, cities, and towns; of these, 37,566, or 96 percent, have 
populations of fewer than 50,000. The Census Bureau estimates that this 
ratio is approximately accurate for all governmental entities. Thus, of 
the 85,006 governmental entities, we estimate that 81,600 (91 percent) 
are small entities. Below, we further describe and estimate the number 
of small entity licensees that may be affected by the proposed rules, 
if adopted.
---------------------------------------------------------------------------

    \4\ 5 U.S.C. 604(a)(3).
    \5\ Id 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, 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.''
    \7\ Small Business Act, 15 U.S.C. 632 (1996).
    \8\ 5 U.S.C. 601(4).
    \9\ 1992 Economic Census, U.S. Business of the Census, Table 6 
(special tabulation of data under contract to Office of the Advocacy 
of the U.S. Small Business Administration).
    \10\ 5 U.S.C. 601(5).
    \11\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
---------------------------------------------------------------------------

    The rules adopted in this First Report and Order affect satellite 
operators. The Commission has not developed a definition of small 
entities applicable to satellite operators. Therefore, the applicable 
definition of small entity is generally the definition under the SBA 
rules applicable to Satellite Telecommunications.\12\ This definition 
provides that a small entity is expressed as one with $11.0 million or 
less in annual receipts.\13\ 1997 Census Bureau data indicate that, for 
1997, 273 satellite communication firms had annual receipts of under 
$10 million. In addition, 24 firms had receipts for that year of $10 
million to $24,999,990.\14\
---------------------------------------------------------------------------

    \12\ ``This industry comprises establishes primarily engaged in 
providing point-to-point telecommunications services to other 
establishes in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Small 
Business Administration, 1997 NAICS Definitions, NAICS 513340.
    \13\ 13 CFR 120.121, NAICS code 513340.
    \14\ U.S. Census Bureau, 1997 Economic Census, Subject Service: 
Information, ``Establishment and Firm Size,'' Table 4, NAICS 513340 
(Issued Oct. 2000).
---------------------------------------------------------------------------

    In addition, Commission records reveal that there are approximately 
240 space station operators licensed by this Commission. We do not 
request or collect annual revenue information, and thus are unable to 
estimate of the number of licensees that would constitute a small 
business under the SBA definition. Small businesses may not have the 
financial ability to become space station licensees because of the high 
implementation costs associated with satellite systems and services.
    Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements. In this First Report and Order, the Commission 
adopts a mandatory electronic filing requirement for space station 
license applicants. The Commission believes that filing satellite 
license applications electronically is no more burdensome than 
submitting paper applications, because a majority

[[Page 51501]]

of satellite applicants currently file their applications 
electronically on a voluntary basis.
    None of the other rules adopted in this First Report and Order are 
expected to increase the reporting, record keeping and other compliance 
requirements of any licensee.
    Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered. The RFA requires an 
agency to describe any significant alternatives that it has considered 
in developing its approach, which may include the following four 
alternatives (among others): ``(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 and 
reporting requirements under the rule for such 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 such small 
entities.''\15\
---------------------------------------------------------------------------

    \15\ 5 U.S.C. 603(c)(1)-(c)(4).
---------------------------------------------------------------------------

    In this proceeding, we adopt rule revisions designed to allow the 
Commission to issue satellite licenses faster than is now possible, 
which will enable satellite operators to provide service faster, and to 
attract investors faster. This will have a positive economic impact on 
all satellite licensees, including small entities.
    In the NPRM, the Commission proposed applying a first-come, first-
served procedure to all satellite applications, including non-
geostationary satellite applications. In the First Report and Order, 
the Commission concluded that applying a first-come, first-served 
procedure to non-geostationary satellite applications could enable one 
applicant to unreasonably exclude others, including small entities, 
from the market. Accordingly, the Commission rejected this proposal.
    Report to Congress: The Commission will send a copy of the First 
Report and Order, including this FRFA, in a report to be sent to 
Congress pursuant to the Congressional Review Act, see 5 U.S.C. 
801(a)(1)(A). In addition, the Commission will send a copy of the First 
Report and Order, including FRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration. A copy of the First Report and Order 
and FRFA (or summaries thereof) will also be published in the Federal 
Register. See 5 U.S.C. 604(b).
    Summary of Report and Order: In this document, the Commission 
adopts new satellite licensing procedures, intended to enable the 
Commission to issue satellite licenses more quickly. First, the 
Commission establishes a queue for satellite applications, based on the 
date and time they are filed. If an application is filed before a 
needed international frequency allocation is adopted, the application 
will be returned as premature. If an application is filed before a 
needed domestic frequency allocation is adopted, the application will 
be considered only pursuant to a waiver of the Table of Frequency 
Allocations, 47 CFR 2.106. If an application is filed after 
international and domestic frequency allocations are adopted, but 
before the Commission adopts service-band specific service rules, the 
application will be considered only subject to default service rules 
adopted in the First Report and Order. Included in those default 
service rules is a requirement for the applicant to disclose its 
orbital debris mitigation proposals, if any. This requirement is based 
on the record in IB Docket No. 02-54. In addition, as explained further 
below, the Commission adopts different procedures for non-geostationary 
satellite orbit (NGSO) satellite system applications and geostationary 
satellite orbit (GSO) applications. If an applicant files an 
application before there are GSO/NGSO sharing criteria for that band, 
then we will consider only GSO applications or NGSO applications, 
depending on which is filed first, until the Commission adopts sharing 
criteria. If a GSO application and an NGSO application are filed at the 
same time, the band will be split proportionally between GSOs and 
NGSOs.
    Second, the Commission adopts different procedures for different 
types of satellite applications. When a non-geostationary satellite 
orbit (NGSO) application or a geostationary satellite orbit (GSO) 
Mobile Satellite Service (MSS) application (together, ``NGSO-like'') 
reaches the front of the queue, the Commission starts a modified 
processing round, and divides the available spectrum equally among all 
the qualified applicants. If a licensee loses or surrenders its 
license, the spectrum assigned to that licensee will be reassigned to 
the remaining licensees, unless the number of remaining licensees is 
sufficient to make reasonably efficient use of the frequency band. The 
Commission presumes that this number is three. In this case, the 
Commission will announce another processing round for the newly 
available spectrum. Similarly, the Commission will start another 
processing round if there are fewer than three qualified applicants in 
the initial processing round.
    When a non-geostationary satellite (GSO) application other than a 
GSO MSS application reaches the front of the queue, the Commission 
considers it on a first-come, first-served basis. The Commission will 
grant each of those applications if the applicant is qualified, and the 
proposed satellite would not conflict with any other previously 
licensed satellite. If two or more qualified GSO-like applications are 
filed at the same thousandth of a second, the Commission will divide 
the spectrum equally among the qualified applicants at that orbit 
location. If a GSO-like licensee loses its license, that orbit location 
will become available for another GSO-like applicant on a first-come, 
first-served basis.
    For both the modified processing round and first-come, first-served 
procedures, the Commission revises its rules for amendments to 
satellite applications and modifications to satellite licenses.
    In addition, the Commission eliminates the anti-trafficking rule 
for satellites, together with new safeguards to protect against 
speculation. By eliminating the anti-trafficking rule, the Commission 
will no longer review transfer of control applications to determine 
whether the transaction is the sale of a bare license for profit. The 
Commission will still review such applications to determine whether the 
transaction will further the public interest, convenience, and 
necessity.
    Together with the elimination of the anti-trafficking rule, the 
Commission adopts safeguards to protect against speculation. First, the 
Commission replaces the financial qualification rules with a bond 
requirement. Formerly, the Commission required satellite license 
applicants to show that they have financing available to construct and 
launch the satellite and operate it for one year. Here, the Commission 
replaces that requirement with a requirement that licensees post a bond 
within 30 days of grant of the license, payable upon missing a 
milestone. The bond amount is $7.5 million for NGSO-like applications, 
and $5 million for GSO-like applications. The amount of the bond may be 
reduced when the licensee meets each of its milestones.
    The Commission also adopts new milestones. The NGSO-like milestones 
are now: (1) Contract execution; (2) critical design review; (3) 
commencement of construction; (4) launch; and (5) bring entire system 
into operation. The GSO-like milestones are (1) contract execution; (2) 
critical design review; (3) commencement of

[[Page 51502]]

construction; and (4) launch. In addition, the Commission adopts 
information requirements for licensees to demonstrate that they have 
met each of the new milestones.
    To protect further against speculative applications, the Commission 
adopts a limit on the number of pending applications and unbuilt 
satellites any applicant may have in any frequency band. Those limits 
are five GSO orbit locations and one NGSO satellite system. So that 
applicants do not undercut the policy goals of these limits, the 
Commission also adopts an attribution rule prohibiting a party from 
filing a satellite application if it holds more than 33 percent of the 
total asset value of applicants with applications for five GSO orbital 
locations, and one NGSO satellite system, in any frequency band, 
pending before the Commission. Stricter limits apply to applicants who 
establish a pattern of missing milestones. Applicants who have 
established such a pattern, and have two or more applications pending, 
or two licensed-but-unbuilt satellite systems of any kind, will not be 
permitted to file another GSO-like application or NGSO-like application 
in any frequency band.
    In addition to these safeguards, the Commission prohibits 
applicants from selling their place in the queue, and require 
applications to be substantially complete.
    The Commission adopts a number of other provisions in this First 
Report and Order. First, the Commission adopts mandatory electronic 
filing of space station applications. Second, the Commission creates a 
streamlined procedure for replacement satellite applications. Third, 
the Commission revises its full frequency reuse requirements. The 
Commission also extends the license terms of certain satellite licenses 
from 10 to 15 years. Finally, the Commission established a freeze on 
new satellite applications. This freeze is terminated as of August 27, 
2003.
    In addition, the Commission revises the procedures for non-U.S.-
licensed satellite operators seeking access to the U.S. market, to be 
consistent with the new procedures for U.S. license applications. The 
Commission also adopted provisions for Permitted List satellite 
modifications, replacements of Permitted List satellites, and changes 
of ownership of satellites on the Permitted List.

Ordering Clauses

    Accordingly, it is ordered, pursuant to sections 1, 2, 4(i), 4(j), 
7(a), 11, 301, 303(c), 303(f), 303(g), and 303(r) of the Communications 
Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i), 154(j), 157(a), 
161, 301, 303(c), 303(f), 303(g), 303(r), that this First Report and 
Order in IB Docket Nos. 02-34 and 02-54 is hereby adopted.
    It is further ordered that parts 1 and 25 of the Commission's rules 
are amended.
    It is further ordered that the provisions of this First Report and 
Order in IB Docket Nos. 02-34 and 02-54, other than Sec. Sec.  
25.137(d)(4), 25.164(c) through (e), and 25.165, will be effective 
August 27, 2003.
    It is further ordered that Sec. Sec.  25.137(d)(4), 25.164(c) 
through (e), and 25.165, as adopted in this First Report and Order, 
will be effective September 11, 2003.
    It is further ordered that, effective upon the adoption date of 
this First Report and Order in IB Docket Nos. 02-34 and 02-54, no 
applications for space station licenses for any satellite service 
addressed in this First Report and Order will be accepted for filing. 
This freeze will continue until August 27, 2003.
    It is further ordered that the license term of each space station 
license issued on or before April 17, 2002, and in effect on the 
release date of this Order, is hereby extended to 15 years, starting on 
the date the licensee certified to the Commission that the space 
station was successfully placed in orbit and its operations fully 
conform to the terms and conditions of its authorization.
    It is further ordered that the Consumer Information Bureau, 
Reference Information Center, shall send a copy of this First Report 
and Order in IB Docket Nos. 02-34 and 02-54, including the Final 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.

List of Subjects

47 CFR Part 1

    Administrative Practice and Procedure.

47 CFR Part 25

    Satellites.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 1 and 25 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309 
and 325(e).


0
2. Amend Sec.  1.1113 by adding paragraph (d) to read as follows:


Sec.  1.1113  Return or refund of charges.

* * * * *
    (d) Applicants for space station licenses under the first-come, 
first served procedure set forth in part 25 of this title will be 
entitled to a refund of the fee if, before the Commission has placed 
the application on public notice, the applicant notifies the Commission 
that it no longer wishes to keep its application on file behind the 
licensee and any other applicants who filed their applications before 
its application, and specifically requests a refund of the fee and 
dismissal of its application.

PART 25--SATELLITE COMMUNICATIONS

0
3. The authority citation for part 25 continues to read as follows:

    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, 332, 
unless otherwise noted.


0
4. Amend Sec.  25.112 by adding paragraph (a)(3) and revising paragraph 
(b) introductory text to read as follows:


Sec.  25.112  Defective applications.

    (a) * * *
    (3) The application requests authority to operate a space station 
in a frequency band that is not allocated internationally for such 
operations under the Radio Regulations of the International 
Telecommunication Union.
    (b) Applications for space station authority found defective under 
paragraph (a)(3) of this section will not be considered. Applications 
for authority found defective under paragraphs (a)(1) or (a)(2) of this 
section may be accepted for filing if:
* * * * *

0
5. Amend Sec.  25.113 by revising paragraph (g) to read as follows:


Sec.  25.113  Construction permits, station licenses, launch authority.

* * * * *
    (g) A launch authorization and station license (i.e., operating 
authority) must be applied for and granted before a space station may 
be launched and operated in orbit. Request for launch authorization may 
be included in an application for space station license. However, an 
application for authority to launch and operate an on-ground spare 
satellite will be considered pursuant to the following procedures:
    (1) Applications for launch and operation of an on-ground spare 
NGSO-

[[Page 51503]]

like satellite will be considered pursuant to the procedures set forth 
in Sec.  25.157, except as set forth in paragraph (g)(3) of this 
section.
    (2) Applications for launch and operation of an on-ground spare 
GSO-like satellite will be considered pursuant to the procedures set 
forth in Sec.  25.158, except as set forth in paragraph (g)(3) of this 
section.
    (3) Neither paragraph (g)(1) nor (g)(2) of this section will apply 
in cases where the space station to be launched is determined to be an 
emergency replacement for a previously authorized space station that 
has been lost as a result of a launch failure or a catastrophic in-
orbit failure.

0
6. Amend Sec.  25.114 by revising paragraph (b) and removing and 
reserving paragraph (c)(13), to read as follows:


Sec.  25.114  Applications for space station authorizations.

* * * * *
    (b) Each application for a new or modified space station 
authorization must constitute a concrete proposal for Commission 
evaluation. Each application must also contain the formal waiver 
required by section 304 of the Communications Act, 47 U.S.C. 304. The 
technical information for a proposed satellite system need not be filed 
on any prescribed form but should be complete in all pertinent details. 
Applications for new space station authorizations other than 
authorizations for the Direct Broadcast Service (DBS) and Digital Audio 
Radio Satellite (DARS) service must be filed electronically through the 
International Bureau Filing System (IBFS).
    (c) * * *
    (13) [Reserved]
* * * * *
    7. Amend Sec.  25.116 by removing and reserving paragraph (b)(3); 
adding paragraph (b)(5); revising paragraph (c) introductory text; 
redesignating paragraph (d) as (e); and adding new paragraph (d) to 
read as follows:


Sec.  25.116  Amendments to applications.

* * * * *
    (b) * * *
    (3) [Reserved]
* * * * *
    (5) Amendments to ``defective'' space station applications, within 
the meaning of Sec.  25.112 will not be considered.
    (c) Any application for an NGSO-like satellite license within the 
meaning of Sec.  25.157 will be considered to be a newly filed 
application if it is amended by a major amendment (as defined by 
paragraph (b) of this section) after a ``cut-off'' date applicable to 
the application, except under the following circumstances:
* * * * *
    (d) Any application for a GSO-like satellite license within the 
meaning of Sec.  25.158 will be considered to be a newly filed 
application if it is amended by a major amendment (as defined by 
paragraph (b) of this section), and will cause the application to lose 
its status relative to later-filed applications in the ``queue'' as 
described in Sec.  25.158.
* * * * *

0
8. Amend Sec.  25.117 by redesignating paragraph (d) as (d)(1), and 
adding paragraph (d)(2) to read as follows:


Sec.  25.117  Modification of station license.

* * * * *
    (d) * * *
    (2) Applications for modifications of space station authorizations 
will be granted except under the following circumstances:
    (i) Granting the modification would make the applicant unqualified 
to operate a space station under the Commission's rules.
    (ii) Granting the modification request would not serve the public 
interest, convenience, and necessity.
    (iii) Except as set forth in paragraph (d)(2)(iv) of this section, 
applications for modifications of GSO-like space station authorizations 
granted pursuant to the procedure set forth in Sec.  25.158, which seek 
to relocate a GSO satellite or add a frequency band to the 
authorization, will be placed in a queue pursuant to Sec.  25.158 and 
considered only after previously filed space station license 
applications or space station modification applications have been 
considered.
    (iv) Applications for modifications of space station authorizations 
to increase the authorized bandwidth will not be considered in cases in 
which the original space station authorization was granted pursuant to 
the procedures set forth in Sec.  25.157(e) or Sec.  25.158(c)(4).
* * * * *

0
9. Amend Sec.  25.119 by adding paragraph (g) to read as follows:


Sec.  25.119  Assignment or transfer of control of station 
authorization.

* * * * *
    (g) The Commission retains discretion in reviewing assignments and 
transfers of control of space station licenses to determine whether the 
initial license was obtained in good faith with the intent to construct 
a satellite system.

0
10. Amend Sec.  25.120 by revising paragraph (b) to read as follows:


Sec.  25.120  Application for special temporary authorization.

* * * * *
    (b)(1) The Commission may grant a temporary authorization only upon 
a finding that there are extraordinary circumstances requiring 
temporary operations in the public interest and that delay in the 
institution of these temporary operations would seriously prejudice the 
public interest. Convenience to the applicant, such as marketing 
considerations or meeting scheduled customer in-service dates, will not 
be deemed sufficient for this purpose.
    (2) The Commission may grant a temporary authorization for a period 
not to exceed 180 days, with additional periods not exceeding 180 days, 
if the Commission has placed the special temporary authority (STA) 
request on public notice.
    (3) The Commission may grant a temporary authorization for a period 
not to exceed 60 days, if the STA request has not been placed on public 
notice, and the applicant plans to file a request for regular authority 
for the service.
    (4) The Commission may grant a temporary authorization for a period 
not to exceed 30 days, if the STA request has not been placed on public 
notice, and an application for regular authority is not contemplated.
* * * * *

0
11. Amend Sec.  25.121 by revising paragraph (e) to read as follows:


Sec.  25.121  License term and renewals.

* * * * *
    (e) Renewal of licenses. Applications for renewals of earth station 
licenses must be submitted on FCC Form 405 (Application for Renewal of 
Radio Station License in Specified Services) no earlier than 90 days, 
and no later than 30 days, before the expiration date of the license. 
Applications for space station system replacement authorization for 
non-geostationary orbit satellites shall be filed no earlier than 90 
days, and no later than 30 days, prior to the end of the twelfth year 
of the existing license term.

0
12. Amend Sec.  25.137 by revising paragraphs (b), (c), and (d), and 
adding paragraphs (e), (f), and (g), to read as follows:


Sec.  25.137  Application requirements for earth stations operating 
with non-U.S. licensed space stations.

* * * * *
    (b) Earth station applicants, or entities filing a ``letter of 
intent,'' or ``Petition for Declaratory Ruling,'' requesting authority 
to operate with a non-U.S. licensed space station must attach to

[[Page 51504]]

their FCC Form 312 an exhibit providing legal and technical information 
for the non-U.S. licensed space station in accordance with part 25. 
Applications addressed in this paragraph must be filed electronically 
through the International Bureau Filing System (IBFS).
    (c) A non-U.S. licensed NGSO-like satellite system seeking to serve 
the United States can be considered contemporaneously with other U.S. 
NGSO-like satellite system pursuant to Sec.  25.157 and considered 
before later-filed applications of other U.S. satellite system 
operators, and a non-U.S.-licensed GSO-like satellite system seeking to 
serve the United States can have its request placed in a queue pursuant 
to Sec.  25.158 and considered before later-filed applications of other 
U.S. satellite system operators, if the non-U.S. licensed satellite 
system is:
    (1) In orbit and operating;
    (2) Has a license from another administration; or
    (3) Has been submitted for coordination to the International 
Telecommunication Union.
    (d) Earth station applicants requesting authority to operate with a 
non-U.S. licensed space station must demonstrate that the space station 
the applicant seeks to access has complied with all applicable 
Commission requirements for non-U.S. licensed systems to operate in the 
United States, including but not limited to the following:
    (1) Milestones;
    (2) Reporting requirements;
    (3) Any other applicable service rules;
    (4) Posting a bond of $7.5 million for NGSO-like satellite systems, 
or $5 million for GSO-like satellites, denominated in U.S. dollars, 
compliant with the terms of Sec.  25.165;
    (5) Non-U.S. licensed GSO-like space station operators with a total 
of five requests for access to the U.S. market in a particular 
frequency band, or a total of five previously granted requests for 
access to the U.S. market with unbuilt GSO-like space stations in a 
particular frequency band, or a combination of pending GSO-like 
requests and granted requests for unbuilt GSO-like space stations in a 
particular frequency band that equals five, will not be permitted to 
request access to the U.S. market with another GSO-like space station 
license in that frequency band. In addition, non-U.S.-licensed NGSO-
like satellite system operators with one request on file with the 
Commission in a particular frequency band, or one granted request for 
an unbuilt NGSO-like satellite system in a particular frequency band, 
will not be permitted to request access to the U.S. market with another 
NGSO-like satellite system in that frequency band.
    (e) A non-U.S.-licensed satellite operator that is seeking to serve 
the United States pursuant to a Letter of Intent may amend its request 
by submitting an additional Letter of Intent. Such additional Letters 
of Intent will be treated as amendments filed by U.S. space station 
applicants for purposes of determining the order in which the Letters 
of Intent will be considered relative to other pending applications.
    (f) A non-U.S.-licensed satellite operator that has been permitted 
to serve the United States pursuant to a Letter of Intent or Petition 
for Declaratory Ruling, may modify its U.S. operations under the 
procedures set forth in Sec.  25.117(d).
    (g) A non-U.S.-licensed satellite operator that has been permitted 
to serve the United States pursuant to a Petition for Declaratory 
Ruling must notify the Commission if it plans to transfer control or 
assign its license to another party, so that the Commission can afford 
interested parties an opportunity to comment on whether the proposed 
transaction affects any of the considerations we made when we allowed 
the satellite operator to enter the U.S. market. If the transferee or 
assignee is not licensed by or seeking a license from a country that is 
a member of the World Trade Organization for services covered under the 
World Trade Organization Basic Telecommunications Agreement, the non-
U.S.-licensed satellite operator will be required to make the showing 
described in paragraph (a) of this section.

0
13. Amend Sec.  25.140 by revising paragraph (b) and removing and 
reserving paragraphs (c) through (g) to read as follows:


Sec.  25.140  Qualifications of fixed-satellite space station 
licensees.

* * * * *
    (b) Each applicant for a space station authorization in the fixed-
satellite service must demonstrate, on the basis of the documentation 
contained in its application, that it is legally, technically, and 
otherwise qualified to proceed expeditiously with the construction, 
launch and/or operation of each proposed space station facility 
immediately upon grant of the requested authorization. Each applicant 
must provide the following information:
    (1) The information specified in Sec.  25.114; and
    (2) An interference analysis to demonstrate the compatibility of 
its proposed system 2 degrees from any authorized space station. An 
applicant should provide details of its proposed r.f. carriers which it 
believes should be taken into account in this analysis. At a minimum, 
the applicant must include, for each type of r.f. carrier, the link 
noise budget, modulation parameters, and overall link performance 
analysis. (See, e.g., appendices B and C to Licensing of Space Stations 
in the Domestic Fixed-Satellite Service (available at address in Sec.  
0.445)).
    (c)-(g) [Reserved]
* * * * *


Sec.  25.141  [Amended]

0
14. Amend Sec.  25.141 by removing and reserving paragraph (b).

0
15. Amend Sec.  25.142 by revising paragraph (a)(1), and by removing 
and reserving paragraph (a)(4) to read as follows:


Sec.  25.142  Licensing provisions for the non-voice, non-geostationary 
mobile-satellite service.

    (a) Space station application requirements. (1) Each application 
for a space station system authorization in the non-voice, non-
geostationary mobile-satellite service shall describe in detail the 
proposed non-voice, non-geostationary mobile-satellite system, setting 
forth all pertinent technical and operational aspects of the system, 
and the technical and legal qualifications of the applicant. In 
particular, each application shall include the information specified in 
Sec.  25.114. Applicants must also file information demonstrating 
compliance with all requirements of this section, and showing, based on 
existing system information publicly available at the Commission at the 
time of filing, that they will not cause unacceptable interference to 
any non-voice, non-geostationary mobile-satellite service system 
authorized to construct or operate.
* * * * *
    (4) [Reserved]
* * * * *


Sec.  25.143  [Amended]

0
16. Amend Sec.  25.143 by removing and reserving paragraphs (b)(3) and 
(g).

0
17. Amend Sec.  25.144 by revising paragraph (b) to read as follows:


Sec.  25.144  Licensing provisions for the 2.3 GHz satellite digital 
audio radio service.

* * * * *
    (b) Milestone requirements. Each applicant for system authorization 
in the satellite digital audio radio service must demonstrate within 10 
days after a required implementation milestone as specified in the 
system authorization,

[[Page 51505]]

and on the basis of the documentation contained in its application, 
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. The 
satellite DARS milestones are as follows, based on the date of 
authorization:
* * * * *


Sec.  25.145  [Amended]

0
18. Amend Sec.  25.145 by removing and reserving paragraph (d).


Sec.  25.146  [Amended]

0
19. Amend Sec.  25.146 by removing and reserving paragraph (i).

0
20. Revise Sec.  25.155 to read as follows:


Sec.  25.155  Mutually exclusive applications.

    (a) The Commission will consider applications to be mutually 
exclusive if their conflicts are such that the grant of one application 
would effectively preclude by reason of harmful electrical 
interference, or other practical reason, the grant of one or more other 
applications.
    (b) An application for an NGSO-like space station license, within 
the meaning of Sec.  25.157, will be entitled to comparative 
consideration with one or more conflicting applications only if:
    (1) The application is mutually exclusive with another NGSO-like 
space station application; and
    (2) The application is received by the Commission in a condition 
acceptable for filing by the ``cut-off'' date specified in a public 
notice.
    (c) An application for a GSO-like space station license, within the 
meaning of Sec.  25.158, will be entitled to comparative consideration 
with one or more conflicting applications only if:
    (1) The application is mutually exclusive with another GSO-like 
space station application; and
    (2) The application is received by the Commission in a condition 
acceptable for filing at the same millisecond as another GSO-like space 
station application with which it is mutually exclusive.

0
21. Amend Sec.  25.156 by adding paragraph (d) to read as follows:


Sec.  25.156  Consideration of applications.

* * * * *
    (d)(1) Applications for NGSO-like satellite systems will be 
considered pursuant to the procedures set forth in Sec.  25.157.
    (2) Applications for GSO-like satellite systems will be considered 
pursuant to the procedures set forth in Sec.  25.158.
    (3) Applications for NGSO-like satellite and GSO-like systems 
employing two or more service bands will be treated like separate 
applications for each service band, and each service band request will 
be considered pursuant to Sec.  25.157 or Sec.  25.158, as appropriate.
    (4) Applications for feeder link authority or intersatellite link 
authority will be treated like an application separate from its 
associated service band. Each feeder link request or intersatellite 
link request will be considered pursuant to the procedure for GSO-like 
service or NGSO-like service, as applicable.
    (5) In cases where the Commission has not adopted frequency-band 
specific service rules, the Commission will not consider NGSO-like 
applications after it has granted a GSO-like application, and it will 
not consider GSO-like applications after it has granted an NGSO-like 
application, unless and until the Commission establishes NGSO/GSO 
sharing criteria for that frequency band. In the event that the 
Commission receives NGSO-like applications and GSO-like applications at 
the same time, and the Commission has not adopted sharing criteria in 
that band, the Commission will divide the spectrum between GSO-like and 
NGSO-like licensees based on the proportion of qualified GSO-like and 
NGSO-like applicants.
    (6) An application for DBS or DARS services will be entitled to 
comparative consideration with one or more conflicting applications 
only if:
    (i) The application is mutually exclusive with another application; 
and
    (ii) The application is received by the Commission in a condition 
acceptable for filing by the ``cut-off'' date specified in a public 
notice.

0
22. Add Sec.  25.157 to read as follows:


Sec.  25.157  Consideration of NGSO-like satellite applications.

    (a) This section specifies the Commission's procedures for 
considering license applications for ``NGSO-like satellite systems.'' 
For purposes of this section, the term ``NGSO-like satellite system'' 
is defined as:
    (1) All NGSO satellite systems, and
    (2) All GSO MSS satellite systems, in which the satellites are 
designed to communicate with earth stations with omni-directional 
antennas.
    (b) Each NGSO-like satellite system application will be reviewed to 
determine whether it is acceptable for filing within the meaning of 
Sec.  25.112. Any application that is not acceptable for filing would 
be returned to the applicant.
    (c) Each NGSO-like satellite system application that is acceptable 
for filing will be reviewed to determine whether it is a ``competing 
application,'' i.e., filed in response to a public notice initiating a 
processing round, or a ``lead application,'' i.e., all other NGSO-like 
satellite system applications.
    (1) Competing applications that are acceptable for filing will be 
placed on public notice to provide interested parties an opportunity to 
file pleadings in response to the application pursuant to Sec.  25.154.
    (2) Lead applications that are acceptable for filing will be placed 
on public notice. This public notice will initiate a processing round, 
establish a cut-off date for competing NGSO-like satellite system 
applications, and provide interested parties an opportunity to file 
pleadings in response to the application pursuant to Sec.  25.154.
    (d) After review of each of the applications in the processing 
round, and all the pleadings filed in response to each application, the 
Commission will grant all the applications that meet the standards of 
Sec.  25.156(a), and deny the other applications.
    (e)(1) In the event that there is insufficient spectrum in the 
frequency band available to accommodate all the qualified applicants in 
a processing round, the available spectrum will be divided equally 
among the licensees whose applications are granted pursuant to 
paragraph (d) of this section, except as set forth in paragraph (e)(2) 
or (e)(3) of this section.
    (2) In cases where there are only one or two applications in a 
processing round granted pursuant to paragraph (d) of this section, 
each applicant will be assigned 1/3 of the available spectrum, and the 
remaining spectrum will be made available to other licensees in an 
additional processing round pursuant to paragraph (c) of this section.
    (3) In cases where there are three or more applications in a 
processing round granted pursuant to paragraph (d) of this section, and 
one or more applicants apply for less spectrum than they would be 
warranted under paragraph (e)(1) of this section, those applicants will 
be assigned the bandwidth amount they requested in their applications. 
In those cases, the remaining qualified applicants will be assigned the 
lesser of the amount of spectrum they requested in their applications 
and the amount spectrum that they would be assigned if the available 
spectrum were divided

[[Page 51506]]

equally among the remaining qualified applicants.
    (f)(1) Each licensee will be allowed to select the particular band 
segment it wishes to use no earlier than 60 days before they plan to 
launch the first satellite in its system, and no later than 30 days 
before that date, by submitting a letter to the Secretary of the 
Commission. The licensee shall serve copies of this letter to the other 
participants in the processing round pursuant to Sec.  1.47 of this 
chapter.
    (2) The licensee shall request contiguous bandwidth in both the 
uplink and downlink band. Each licensee's bandwidth selection in both 
the uplink and downlink band shall not preclude other licensees from 
selecting contiguous bandwidth.
    (3) If two or more licensees in a processing round request the same 
band segment, all licensees other than the first one to request that 
particular band segment will be required to make another selection.
    (g)(1) In the event that an applicants' license is cancelled for 
any reason, the Commission will redistribute the bandwidth allocated to 
that applicant equally among the remaining applicants whose licenses 
were granted concurrently with the cancelled license, unless the 
Commission determines that such a redistribution would not result in a 
sufficient number of licensees remaining to make reasonably efficient 
use of the frequency band.
    (2) In the event that the redistribution of bandwidth set forth in 
paragraph (g)(1) of this section would not result in a sufficient 
number of licensees remaining to make reasonably efficient use of the 
frequency band, the Commission will issue a public notice initiating a 
processing round, as set forth in paragraph (c) of this section, to 
invite parties to apply for an NGSO-like satellite system license to 
operate in a portion of the bandwidth made available as a result of the 
cancellation of the initial applicant's license. Parties already 
holding licenses to operate an NGSO-like satellite system in that 
frequency band will not be permitted to participate in that processing 
round.
    (3) There is a presumption that three satellite licensees in a 
frequency band are sufficient to make reasonably efficient use of the 
frequency band.
    (h) Services offered pursuant to an NGSO-like license in a 
frequency band granted before the Commission has adopted frequency-
band-specific service rules for that band will be subject to the 
default service rules in Sec.  25.217.

0
23. Add Sec.  25.158 to read as follows:


Sec.  25.158  Consideration of GSO-like satellite applications.

    (a) This section specifies the Commission's procedures for 
considering license applications for ``GSO-like satellite systems.'' 
For purposes of this section, the term ``GSO-like satellite system'' is 
defined as a GSO satellite designed to communicate with earth stations 
with directional antennas. Examples of GSO-like satellite systems are 
those which use earth stations with antennas with directivity towards 
the satellites, such as FSS, and MSS feeder links which use GSO 
satellites. GSO-like satellite systems are satellite systems that are 
not NGSO-like satellite systems within the meaning of Sec.  25.157(a).
    (b) Applications for GSO-like satellite system licenses will be 
placed in a queue and considered in the order that they are filed, 
pursuant to the following procedure:
    (1) The application will be reviewed to determine whether it is 
acceptable for filing within the meaning of Sec.  25.112. If not, the 
application will be returned to the applicant.
    (2) If the application is acceptable for filing, the application 
will be placed on public notice pursuant to Sec.  25.151, and 
interested parties will be given an opportunity to file pleadings 
pursuant to Sec.  25.154.
    (3) The application will be granted only if it meets each of the 
following criteria:
    (i) After review of the application and any pleadings filed in 
response to that application, the Commission finds that the application 
meets the standards of Sec.  25.156(a); and
    (ii) The proposed satellite will not cause harmful interference to 
any previously licensed operations.
    (c) An applicant for a GSO-like satellite system license is not 
allowed to transfer, assign, or otherwise permit any other entity to 
assume its place in any queue.
    (d) In the event that two or more GSO-like satellite system license 
applications are mutually exclusive within the meaning of Sec.  
25.155(c), the Commission will consider those applications pursuant to 
the following procedure:
    (1) Each application will be reviewed to determine whether it is 
acceptable for filing within the meaning of Sec.  25.112. Any 
application not found acceptable for filing will be returned to the 
applicant.
    (2) All applications that are acceptable for filing will be placed 
on public notice pursuant to Sec.  25.151, and interested parties will 
be given an opportunity to file pleadings pursuant to Sec.  25.154.
    (3) Each application will be granted if it meets the criteria of 
paragraph (b)(3) of this section, and otherwise will be denied.
    (4) In the event that two or more applications are granted pursuant 
to paragraph (d)(3) of this section, the available bandwidth at the 
orbital location or locations in question will be divided equally among 
those licensees.
    (5) Licensees whose licenses are granted pursuant to paragraph 
(d)(4) of this section will be allowed to select the particular band 
segment it wishes to use no earlier than 60 days before they plan to 
launch the first satellite in its system, and no later than 30 days 
before that date, by submitting a letter to the Secretary of the 
Commission. The licensee shall serve copies of this letter to the other 
participants in the processing round pursuant to Sec.  1.47 of this 
chapter.
    (6) Licensees whose licenses are granted pursuant to paragraph 
(d)(4) of this section shall request contiguous bandwidth in both the 
uplink and downlink band. Each licensee's bandwidth selection shall not 
preclude other licensees from selecting contiguous bandwidth.
    (7) If two or more licensees whose licenses are granted pursuant to 
paragraph (d)(4) of this section request the same band segment, all 
licensees other than the first one to request that particular band 
segment will be required to make another selection.
    (e) Services offered pursuant to a GSO-like license in a frequency 
band granted before the Commission has adopted frequency-band-specific 
service rules for that band will be subject to the default service 
rules in Sec.  25.217.

0
24. Add Sec.  25.159 to read as follows:


Sec.  25.159  Limits on pending applications and unbuilt satellite 
systems.

    (a) Applicants with a total of five applications for GSO-like space 
station licenses on file with the Commission in a particular frequency 
band, or a total of five licensed-but-unbuilt GSO-like space stations 
in a particular frequency band, or a combination of pending GSO-like 
applications and licensed-but-unbuilt GSO-like space stations in a 
particular frequency band that equals five, will not be permitted to 
apply for another GSO-like space station license in that frequency 
band.
    (b) Applicants with an application for one NGSO-like satellite 
system license on file with the Commission in a particular frequency 
band, or one licensed-but-unbuilt NGSO-like satellite system in a 
particular frequency band, will not be permitted to apply for

[[Page 51507]]

another NGSO-like satellite system license in that frequency band.
    (c) If an applicant has an attributable interest in one or more 
other entities seeking one or more space station licenses, the pending 
applications and licensed-but-unbuilt satellite systems filed by those 
other entities will be counted as filed by the applicant for purposes 
of the limits on the number of pending space station applications and 
licensed-but-unbuilt satellite systems in this paragraph. For purposes 
of this paragraph, an applicant has an ``attributable interest'' in 
another entity if:
    (1) It holds equity (including all stockholdings, whether voting or 
nonvoting, common or preferred) and debt interest or interests, in the 
aggregate, exceed thirty-three (33) percent of the total asset value 
(defined as the aggregate of all equity plus all debt) of that entity, 
or
    (2) It holds a controlling interest in that entity, or is the 
subsidiary of a party holding a controlling interest in that entity, 
within the meaning of 47 CFR 1.2110(b)(2).
    (3) For purposes of paragraphs (c)(1) and (c)(2) of this section, 
ownership interests shall be calculated on a fully diluted basis, i.e., 
all agreements, such as warrants, stock options, and convertible 
debentures, will generally be treated as if the rights thereunder 
already have been fully exercised.
    (d) In the event that a licensee misses three or more milestones 
within any three-year period, the Commission will presume that the 
licensee obtained one or more of those licenses for speculative 
purposes. Unless the licensee rebuts this presumption, it will not be 
permitted to apply for a GSO-like satellite or an NGSO-like satellite 
system in any frequency band if it has two or more satellite 
applications pending, or two licensed-but-unbuilt satellite systems of 
any kind. This limit will remain in effect until the licensee provides 
adequate information to demonstrate that it is very likely to construct 
its licensed facilities if it were allowed to file more applications.
    (e) For purposes of this section, ``frequency band'' means one of 
the paired frequency bands available for satellite service listed in 
Sec.  25.202.

0
25. Amend Sec.  25.161 by revising paragraph (a) to read as follows:


Sec.  25.161  Automatic termination of station authorization.

* * * * *
    (a)(1) Failure to meet any applicable milestone for implementation 
of the licensed satellite system specified in Sec. Sec.  25.164(a) and/
or (b), without demonstrating that the failure was caused by 
circumstances beyond the licensee's control, or
    (2) If there are no applicable milestones for implementation of the 
licensed satellite system specified in Sec. Sec.  25.164(a) and/or (b), 
the expiration of the required date of completion of construction or 
other required action specified in the authorization, or after any 
additional time authorized by the Commission, if a certification of 
completion of the required action has not been filed with the 
Commission unless a request for an extension of time has been filed 
with the Commission but has not been acted on.
* * * * *

0
26. Add Sec.  25.164 to subpart B to read as follows:


Sec.  25.164  Milestones.

    (a) Licensees of geostationary orbit satellite systems other than 
DBS and DARS satellite systems, including GSO MSS satellite systems, 
licensed on or after August 27, 2003 will be required to comply with 
the schedule set forth in paragraphs (a)(1) through (a)(4) of this 
section in implementing their satellite systems, unless a different 
schedule is established by Title 47, Chapter I, or by Commission Order, 
or by Order adopted pursuant to delegated authority. These dates are to 
be measured from the date the license is issued.
    (1) One year: Enter into a binding non-contingent contract to 
construct the licensed satellite system.
    (2) Two years: Complete the critical design review of the licensed 
satellite system.
    (3) Three years: Begin the construction of the satellite.
    (4) Five years: Launch and operate the satellite.
    (b) Licensees of non-geostationary orbit satellite systems other 
than DBS and DARS satellite systems licensed on or after September 11, 
2003, will be required to comply with the schedule set forth in 
paragraphs (b)(1) through (b)(5) of this section in implementing their 
satellite systems, unless a different schedule is established by Title 
47, Chapter I, or by Commission Order, or by Order adopted pursuant to 
delegated authority. These dates are to be measured from the date the 
license is issued.
    (1) One year: Enter into a binding non-contingent contract to 
construct the licensed satellite system.
    (2) Two years: Complete the critical design review of the licensed 
satellite system.
    (3) Two years, six months: Begin the construction of the first 
satellite in the licensed satellite system.
    (4) Three years, six months: Launch and operate the first satellite 
in the licensed satellite system.
    (5) Six years: Bring all the satellites in the licensed satellite 
system into operation.
    (c) Licensees of all satellite systems, other than DBS and DARS 
satellite systems, licensed on or after September 11, 2003, will be 
required to submit a copy of their binding non-contingent contract with 
the Commission on or before the date scheduled for entering into such a 
contract.
    (d) Licensees of all satellite systems, other than DBS and DARS 
satellite systems, licensed on or after September 11, 2003, will be 
required to submit information to the Commission sufficient to 
demonstrate that the licensee has completed the critical design review 
of the licensed satellite system on or before the date scheduled for 
entering into such completion.
    (e) Licensees of all satellite systems, other than DBS and DARS 
satellite systems, licensed on or after September 11, 2003, will be 
required to submit information to the Commission sufficient to 
demonstrate that the licensee has commenced physical construction of 
its licensed spacecraft on or before the date scheduled for such 
commencement.
    (f) In cases where the Commission grants a satellite authorization 
in different stages, such as a license for a satellite system using 
feeder links or intersatellite links, the earliest of the milestone 
schedules shall be applied to the entire satellite system.

0
27. Add Sec.  25.165 to subpart B to read as follows:


Sec.  25.165  Posting of bonds.

    (a) For all satellite licenses other than DBS and DARS licenses 
issued after September 11, 2003, the licensee is required to post a 
bond within 30 days of the grant of its license. Failure to post the 
required bond will render the license null and void automatically.
    (1) NGSO-like licensees are required to post a bond in the amount 
of $7.5 million.
    (2) GSO-like licensees are required to post a bond in the amount of 
$5 million.
    (b) The licensee must use a surety company deemed acceptable within 
the meaning of 31 U.S.C. 9304 et seq. (See, e.g., Department of 
Treasury Fiscal Service, Companies Holding Certificates of Authority as 
Acceptable Sureties on Federal Bonds and As Acceptable Reinsurance 
Companies, 57 FR 29356, July 1, 1992.) The bond must name the U.S. 
Treasury as beneficiary in the event of the licensee's default. The 
licensee must provide the Commission with a

[[Page 51508]]

copy of the performance bond, including all details and conditions.
    (c) A licensee will be considered to be in default if it fails to 
meet any milestone deadline set forth in Sec.  25.164, and, at the time 
of milestone deadline, the licensee has not provided a sufficient basis 
for extending the milestone.
    (d) An NGSO-like licensee will be permitted to reduce the amount of 
the bond by 20 percent of the original bond amount upon successfully 
meeting a milestone deadline set forth in Sec.  25.164(b). A GSO-like 
licensee will be permitted to reduce the amount of the bond by 25 
percent of the original bond amount upon successfully meeting a 
milestone deadline set forth in Sec.  25.164(a).

0
28. Amend Sec.  25.210 by removing and reserving paragraphs (e) and 
(g), and revising paragraph (f) to read as follows:


Sec.  25.210  Technical requirements for space stations in the Fixed-
Satellite Service.

* * * * *
    (e) [Reserved]
    (f) All space stations in the Fixed Satellite Service in the 3600-
3700 MHz, 3700-4200 MHz, 5091-5250 MHz, 5825-5925 MHz, 5925-6425 MHz, 
6425-6525 MHz, 6525-6700 MHz, 6700-7025 MHz, 10.7-10.95 GHz, 10.95-11.2 
GHz, 11.2-11.45 GHz, 11.45-11.7 GHz, 11.7-12.2 GHz, 12.2-12.7 GHz, 
12.75-13.15 GHz, 13.15-13.2125 GHz, 13.2125-13.25 GHz, 13.75-14.0 GHz, 
14.0-14.5 GHz and 15.43-15.63 GHz bands shall employ state-of-the-art 
full frequency reuse either through the use of orthogonal polarizations 
within the same beam and/or the use of spatially independent beams.
    (g) [Reserved]
* * * * *

0
29. Add Sec.  25.217 to subpart C to read as follows:


Sec.  25.217  Default service rules.

    (a) The technical rules in this section apply only to licenses to 
operate a satellite system in a frequency band granted after a domestic 
frequency allocation has been adopted for that frequency band, but 
before any frequency-band-specific service rules have been adopted for 
that frequency band.
    (b)(1) For all NGSO-like satellite licenses for which the 
application was filed pursuant to the procedures set forth in Sec.  
25.157 after August 27, 2003, authorizing operations in a frequency 
band for which the Commission has not adopted frequency band-specific 
service rules at the time the license is granted, the licensee will be 
required to comply with the following technical requirements, 
notwithstanding the frequency bands specified in these rule provisions: 
Sec. Sec.  25.142(d), 25.143(b)(2)(ii), 25.143(b)(2)(iii), 25.204(g), 
25.210(c), 25.210(d), 25.210(f), 25.210(i), 25.210(k), and 25.210(l).
    (2) In addition to the requirements set forth in paragraph (b)(1) 
of this section, the Commission will coordinate with the National 
Telecommunications and Information Administration (NTIA) regarding the 
operations of any licensees authorized to operate in a shared 
government/non-government frequency band, pursuant to the procedure set 
forth in Sec.  25.142(b)(2)(ii).
    (3) Earth station licensees authorized to operate with one or more 
space stations described in paragraph (b)(1) of this section shall 
comply with the requirements in Sec.  25.136. In addition, earth 
station licensees authorized to operate with one or more space stations 
described in paragraph (b)(1) of this section in frequency bands shared 
with terrestrial wireless services shall comply with the requirements 
in Sec.  25.203(c).
    (c)(1) For all GSO-like satellite licenses for which the 
application was filed pursuant to the procedures set forth in Sec.  
25.158 after August 27, 2003, authorizing operations in a frequency 
band for which the Commission has not adopted frequency band-specific 
service rules at the time the license is granted, the licensee will be 
required to comply with the following technical requirements, 
notwithstanding the frequency bands specified in these rule provisions: 
Sec. Sec.  25.142(d), 25.143(b)(2)(iv), 25.204(g), 25.210(c), 
25.210(d), 25.210(f), 25.210(i), 25.210(j), 25.210(k), and 25.210(l).
    (2) In addition to the requirements set forth in paragraph (c)(1) 
of this section, the Commission will coordinate with the National 
Telecommunications and Information Administration (NTIA) regarding the 
operations of any licensees authorized to operate in a shared 
government/non-government frequency band, pursuant to the procedure set 
forth in Sec.  25.142(b)(2)(ii).
    (3) Earth station licensees authorized to operate with one or more 
space stations described in paragraph (c)(1) of this section shall 
comply with the earth station antenna performance verification 
requirements in Sec.  25.132, and the antenna gain pattern requirements 
in Sec. Sec.  25.209(a) and (b). In addition, earth station licensees 
authorized to operate with one or more space stations described in 
paragraph (c)(1) of this paragraph in frequency bands shared with 
terrestrial wireless services shall comply with the requirements in 
Sec.  25.203(c).
    (4) In addition to the requirements set forth in paragraph (c)(3) 
of this section, earth station licensees with a gain equivalent or 
higher than the gain of a 1.2 meter antenna operating in the 14.0-14.5 
GHz band, authorized to operate with one or more space stations 
described in paragraph (c)(1) of this paragraph in frequency bands 
greater than 14.5 GHz shall be required to comply with the antenna 
input power density requirements set forth in Sec.  25.212(c).
    (d) Applicants requesting authorization of a satellite subject to 
paragraphs (b) or (c) of this section must submit a narrative statement 
describing the debris mitigation design and operational strategies, if 
any, that they will use. Applicants are specifically required to submit 
a casualty risk assessment if planned post-mission disposal involves 
atmospheric re-entry of the spacecraft.
    (e) In the event that the Commission adopts frequency band-specific 
service rules for a particular frequency band after it has granted one 
or more space station or earth station licenses for operations in that 
frequency band, those licensees will be required to come into 
compliance with the frequency band-specific service rules within 30 
days of the effective date of those rules, unless otherwise specified 
by either Commission or Bureau Order.
[FR Doc. 03-21649 Filed 8-26-03; 8:45 am]
BILLING CODE 6712-01-P