[Federal Register Volume 68, Number 198 (Tuesday, October 14, 2003)]
[Rules and Regulations]
[Pages 59128-59130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25599]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR PART 25

[IB Docket 02-19; FCC 03-137]


Establishment of Policies and Service Rules for the Non-
Geostationary Satellite Orbit, Fixed Satellite Service in the Ka-Band

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission has adopted licensing and 
service rules for entities to provide Non-Geostationary Satellite 
Orbit, Fixed Satellite Service in the KaBand frequencies, specifically 
the 18.8-19.3 GHz and 28.35-29.1GHz frequency bands. Upon launch, these 
new systems will provide a variety of data, video and telephony 
services in Ka-Band frequencies to U.S. consumers, for communications 
in the United States and around the world.

DATES: Effective October 14, 2003.

FOR FURTHER INFORMATION CONTACT: J. Mark Young, Attorney Advisor, 
Satellite Division, International Bureau, telephone (202) 418-0762 or 
via the Internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in IB Docket No. 02-19, FCC 03-137, adopted June 18, 2003 and 
released July 9, 2003. 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 Ka-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 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 arrange 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 the split the available NGSO FSS service spectrum in the Ka-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 based (topocentric) 
angular separation standard, with a 10-degree-avoidance angle between 
satellites of different networks.
    5. The Report and Order determines the priority status of the one 
existing licensee from the first processing round of the Ka-Band NGSO 
FSS, Teledesic LLC, when it coordinates with operators licensed in this 
second processing round for the service.
    6. The Report and Order adopted service rules for the NGSO FSS 
service, including an implementation milestones schedule. Licensees 
will be required to file an annual report describing the status of 
satellite construction and launch dates. The Report and Order also 
requires that applicants disclose orbital debris mitigation plans 
before licensing.

Final Regulatory Flexibility Certification

    8. The Regulatory Flexibility Act of 1980, as amended (RFA),\1\ 
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.'' \2\ The RFA generally 
defines ``small entity'' as having the same meaning as the terms 
``small business,'' ``smallorganization,'' and ``small governmental 
jurisdiction.'' \3\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\4\ 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).\5\
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    \1\ See 5 U.S.C. 603. The RFA, 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA. Pub. L. 104-121, 110 Stat. 857 (1996)).
    \2\ 5 U.S.C. 605(b).
    \3\ Id. at 601(6).
    \4\ Id. at 601(3) (incorporating by reference the definition of 
``small business concern'' in the 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.''
    \5\ Small Business Act, 15 U.S.C. 632
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    9. 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

[[Page 59129]]

to existing FCC permittees and licensees, result in the continued 
development of NGSO FSS and other satellite services to the public.
    10. 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.\6\
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    \6\ 13 CFR 121.201, North American Industry Classification 
System (``NAICS'') code 517410.
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    11. The rules adopted in the 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.\7\ Since the spectrum and orbital resources available for 
assignment are not open to new entrants, we estimate that only the four 
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 $12.5 million 
annually or has parent companies or investors that have revenues in 
excess of $12.5 million annually.\8\
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    \7\ See e.g., Final Analysis Communication Services, Inc., 13 
FCC Rcd 6618, 6644 (1998) (non-geostationary satellite applicant 
estimated that ``cost of construction, launch and first-year 
operating costs for two satellites was approximately $6.22 
million'').
    \8\ 13 CFR 121.201, North American Industry Classification 
System (``NAICS'') code 517410.
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    12. 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, in a 
report to Congress pursuant to the Congressional Review Act.\9\ 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.\10\
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    \9\ See 5 U.S.C. 801(a)(1)(A).
    \10\ See 5 U.S.C. 605(b).
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Ordering Clauses

    13. 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. 
Sections 154(i), 157(a), 303(c), 303(f), 303(g), and 303(r), this 
Report and Order is hereby ADOPTED.
    14. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, SHALL SEND a copy of the 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). A copy of this Report and Order, including the Final 
Regulatory Flexibility Certification, will be published in the Federal 
Register. See 5 U.S.C. 605(b).

List of Subjects 47 CFR Part 25

    Satellites.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

0
For the reasons set forth in the preamble, part 25 of title 47 of the 
Code of Federal Regulations is amended as follows:

PART 25--SATELLITE COMMUNICATIONS

0
1. 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 and 332, 
unless otherwise noted.


0
2. Section 25.145 is amended by removing paragraph (f) and 
redesignating paragraphs (g) and (h) as (f) and (g) and by adding 
paragraphs (c)(3), (f)(1)(iv), (h) and (i) 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) Reporting requirements.
* * * * *
    (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 person 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.
* * * * *
    (h) 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 license to 
exceed the total number of operating space stations authorized by the 
Commission.
    (i) 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.

0
3. Section 25.261 is added to read as follows:


Sec.  25.261  Procedures for avoidance of in-line interference events 
for Non Geostationary Satellite Orbit (NGSO) Satellite Network 
Operations in the Fixed Satellite Service (FSS) Bands.

    (a) Applicable NGSO FSS Bands. The coordination procedures in this 
section apply to non-Federal-Government NGSO FSS satellite networks 
operating in the following assigned frequency bands: The 28.6-29.1 GHz 
or 18.8-19.3 GHz frequency bands.

[[Page 59130]]

    (b) Definition of ``In-line interference events.'' For purposes of 
this section, an ``in-line interference event'' is defined as the 
interference associated with an occurrence of any physical alignment of 
space stations of two or more satellite networks with an operating 
Earth station of one of these networks in such a way that the angular 
separation between operational links of the two networks is less than 
10[deg] as measured at the Earth station.
    (c) Default procedure. If no agreed coordination exists between two 
or more satellite networks, then the bands will be divided among the 
affected satellite networks involved in an in-line interference event 
in accordance with the following procedure:
    (1) Each of n (number of) satellite networks involved in a 
particular in-line interference event shall select 1/n of the assigned 
spectrum available in each frequency band for its home base spectrum. 
The selection order for each satellite network shall be determined by 
and be in accordance with the date that the first space station in each 
satellite network is launched and operating;
    (2) The affected space station(s) of the respective satellite 
networks shall only operate in the selected (1/n) spectrum associated 
with its satellite network, its home base spectrum, for the duration of 
the in-line interference event;
    (3) All affected space station(s) may resume operations throughout 
the assigned frequency bands once the angular separation between the 
affected space stations in the in-line interference event is again 
greater than 10[deg].
    (d) Coordination procedure. Any coordination procedure agreed among 
the affected operating satellite networks, which allows operations of 
the satellite networks when each network's respective space stations 
are within the 10 degree avoidance angle associated with an in-line 
interference event, shall supersede the default procedure of paragraph 
(c) of this section. Coordination may be effected using information 
relating to the space stations and the parameters of one or more 
typical earth stations. All parties are required to coordinate in good 
faith.

[FR Doc. 03-25599 Filed 10-10-03; 8:45 am]
BILLING CODE 6712-01-M