[Federal Register Volume 69, Number 161 (Friday, August 20, 2004)]
[Rules and Regulations]
[Pages 51586-51588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-19142]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket No. 02-34; FCC 04-147]


Satellite Licensing Procedures

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission adopts rule revisions to 
reduce the amount of the bond that satellite licensees are required to 
file when they are issued their licenses. These rule changes are 
intended to reduce disincentives against filing satellite license 
applications proposing new or innovative services.

DATES: Effective September 20, 2004.

FOR FURTHER INFORMATION 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 Order 
on Reconsideration and Fifth Report and Order, IB Docket No. 02-34, FCC 
04-147, adopted June 22, 2004, and released July 7, 2004. The complete 
text of this First Order on Reconsideration and Fifth Report and Order 
is available for public inspection and copying during regular business 
hours at the FCC Reference Information Center, Portals II, 445 12th 
Street, SW., Room CY-A257, Washington, DC 20554. The document may also 
be purchased from the Commission's duplicating contractor, Best Copy 
and Printing Inc., Portals II, 445 12th Street, SW., Room CY-B402, 
Washington, DC 20554, telephone (202) 863-2893, facsimile (202) 863-
2898, or via e-mail http://www.BCPIWEB.com.
    Regulatory Flexibility Analysis: In this Fifth Report and Order, 
the Commission adopts revisions to the current interim bond amounts. 
Those bond amounts are now $3 million for each GSO satellite and $5 
million for each NGSO constellation as the required bond amounts on a 
going-forward basis. In addition, in this Fifth Report and Order, the 
Commission considered and rejected giving all satellite licensees the 
option of creating an escrow account rather than posting a bond. The 
effect of these rule revisions is to reduce the administrative burdens 
of space station licensees. We expect that this change

[[Page 51587]]

will be minimal and positive. Therefore, we certify that the 
requirements of this Fifth Report and Order will not have a significant 
economic impact on a substantial number of small entities. The 
Commission will send a copy of the Fifth Report and Order, including a 
copy of this final certification, in a report to Congress pursuant to 
the Congressional Review Act. See 5 U.S.C. 801(a)(1)(A). In addition, 
the Fifth Report and Order and this certification will be sent to the 
Chief Counsel for Advocacy of the Small Business Administration, and 
will be published in the Federal Register. See 5 U.S.C. 605(b).
    Summary of Report and Order: In the First Report and Order in IB 
Docket No. 02-34, 68 FR 51499, August 27, 2003, the Commission adopted 
several revisions to its satellite licensing procedures, including a 
requirement that geostationary orbit (GSO) licensees other than mobile 
satellite service (MSS) licensees file a $5 million bond within 30 days 
of receiving their licensees. Non-geostationary orbit (NGSO) licensees 
and GSO MSS licensees were required to file a $7.5 million bond within 
30 days of receiving their licensees.
    In the FNPRM in this proceeding, the Commission invited comment on 
revising the bond amounts, and on allowing licensees to establish an 
escrow account as an alternative to the bond requirement. See 68 FR 
51546, August 27, 2003. Also, several parties filed petitions for 
reconsideration, requesting elimination of the bond requirement, among 
other things.
    In this First Order on Reconsideration and Fifth Report and Order, 
the Commission reaches the following conclusions: (1) The Commission 
rejects arguments that it should eliminate the bond requirement; (2) 
The Commission reduces the required bond amounts to $3 million for each 
GSO satellite, including GSO MSS satellites, to avoid unreasonably 
discouraging new or innovative satellite operators from applying for 
licenses; (3) The Commission also reduces the required bond amounts to 
$5 million for each NGSO satellite constellation; (4) The Commission 
does not adopt the escrow account alternative because it does not 
adequately meet the public policy objectives of the bond requirements; 
(5) The Commission defers consideration of all the non-bond-related 
issues in this proceeding to future Order.

Ordering Clauses

    Accordingly, it is ordered, that pursuant to sections 4(i), 301, 
302, 303(r), 308, 309, and 310 of the Communications Act, 47 U.S.C. 
154(i), 301, 302, 303(r), 308, 309, 310, and Sec.  1.429 of the 
Commission's rules, 47 CFR 1.429, the petitions for reconsideration of 
the First Report and Order, in IB Docket No. 02-34, 68 FR 51499, August 
27, 2003, are denied in part and granted in part, to the extent 
indicated above, and otherwise deferred to a future Order.
    It is further ordered, 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), 303(r), that 
this Fifth Report and Order in IB Docket No. 02-34 is hereby ADOPTED.
    It is further ordered that part 25 of the Commission's rules IS 
AMENDED as set forth below. These rule revisions will take effect 
September 20, 2004.
    It is further ordered that the Consumer Information Bureau, 
Reference Information Center, shall send a copy of this Order, 
including the Final Regulatory Flexibility Certification, to the Chief 
Counsel for Advocacy of the Small Business Administration.

List of Subjects in 47 CFR Part 25

    Satellites.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR part 25 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. Amend Sec.  25.137 by revising paragraph (d) introductory text and 
paragraph (d)(4) to read as follows:


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

* * * * *
    (d) Earth station applicants requesting authority to operate with a 
non-U.S.-licensed space station and non-U.S.-licensed satellite 
operators filing letters of intent or petitions for declaratory ruling 
to access the U.S. market must demonstrate that the non-U.S.-licensed 
space station 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:
* * * * *
    (4) For non-U.S.-licensed satellites that are not in orbit and 
operating, a bond must be posted. This bond must be in the amount of $5 
million for NGSO satellite systems, or $3 million for GSO satellites, 
denominated in U.S. dollars, and compliant with the terms of Sec.  
25.165 of this chapter. The party posting the bond will be permitted to 
reduce the amount of the bond upon a showing that a milestone has been 
met, in accordance with the terms of Sec.  25.165(d) of this chapter.
* * * * *

0
3. Amend Sec.  25.164 by adding paragraph (g), to read as follows:


Sec.  25.164  Milestones.

* * * * *
    (g) Licensees of satellite systems that include both non-
geostationary orbit satellites and geostationary orbit satellites, 
other than DBS and DARS satellite systems, and licensed on or after 
September 20, 2004 will be required to comply with the schedule set 
forth in paragraph (a) of this section with respect to the 
geostationary orbit satellites, and with the schedule set forth in 
paragraph (b) of this section with respect to the non-geostationary 
orbit satellites.

0
4. Amend Sec.  25.165 by revising paragraph (a) and paragraph (d), and 
by adding paragraph (e) to read as follows:


Sec.  25.165  Posting of bonds.

    (a) For all satellite licenses issued after September 20, 2004, 
other than DBS licenses, DARS licenses, and replacement satellite 
licenses as defined in paragraph (e), the licensee is required to post 
a bond within 30 days of the grant of its license. Failure to post a 
bond will render the license null and void automatically.
    (1) NGSO licensees are required to post a bond in the amount of $5 
million.
    (2) GSO licensees are required to post a bond in the amount of $3 
million.
    (3) Licensees of satellite systems including both NGSO satellites 
and GSO satellites that operate in the same frequency bands as the NGSO 
satellites are required to post a bond in the amount of $5 million.
* * * * *
    (d) A GSO licensee will be permitted to reduce the amount of the 
bond by $750,000 upon successfully meeting a milestone deadline set 
forth in section 25.164(a) of this chapter. An NGSO licensee will be 
permitted to reduce the

[[Page 51588]]

amount of the bond by $1 million upon successfully meeting a milestone 
deadline set forth in section 25.164(b) of this chapter.
    (e) A replacement satellite is one that is:
    (1) Authorized to be operated at the same orbit location, in the 
same frequency bands, and with the same coverage area as one of the 
licensee's existing satellites, and
    (2) Scheduled to be launched so that it will be brought into use at 
approximately the same time as, but no later than, the existing 
satellite is retired.

[FR Doc. 04-19142 Filed 8-19-04; 8:45 am]
BILLING CODE 6712-01-P