NEWS News Media Information 202/418-0500 FEDERAL COMMUNICATIONS COMMISSION Recorded listing of release and texts 1919 M STREET, N.W. 202/418-2222 WASHINGTON, D.C. 20554 _____________________________________________________________________________________________ This is an unofficial announcement of Commission action. Release of the full text of a Commission Order constitutes official action. (See MCI v FCC 515 F 2d 385 ID C Circ 1974) Report No. IN 96-25 ACTION IN DOCKET CASE December 6, 1996 FCC'S INTERNATIONAL BUREAU READY TO GRANT DBS LICENSES TO MCI AND ECHOSTAR; COMMISSION SPEEDS NEW VIDEO SERVICES IN WAKE OF SUCCESSFUL D BS AUCTION The Federal Communications Commission's International Bureau today cleared the way for introduction of new video programming services to consumers by finding that MCI Telecommunications Corporation ("MCI") and Echostar DBS Corporation ("Echostar") can receive authorization to provide direct broadcast satellite ("DBS") service. Each company will receive its authorization upon payment of the balance owed to the U.S. government on the high bids each company made for satellite licenses at the DBS auction the Commission conducted earlier this year. "Our action today is another win for consumers, who will soon be offered a variety of new choices in the video marketplace, " said Don Gips, Chief of the FCC's International Bureau. In determining that MCI's DBS authorization could be granted, the FCC's International Bureau rejected petitions to deny MCI's application made by Echostar, and DIRECTV, Inc. ("DIRECTV"). The Bureau concluded that the Commission's DBS rule restricting alien ownership, 47 C.F.R.  100.11, does not apply to DBS providers like MCI that propose private carrier subscription service. Such providers are not subject to the essentially identical alien ownership restrictions found in section 310(b) of the Communications Act, the statutory provision upon which the DBS alien ownership rule is based. Today's decision by the International Bureau on MCI's application is entirely separate and distinct from the decisions the Commission will make next year with respect to MCI's recently filed applications to transfer control of its licenses, including its DBS authorization, to British Telecommunications plc ("BT"). "Our action today does not in any way prejudge whether or not the Commission should eventually approve MCI's applications to transfer control of its DBS authorization and other authorizations and licenses to BT," said Gips. "Those decisions will be made independently by the Commission. There will be a full opportunity for the public and the Executive Branch to file comments and reply comments and the Commission will intensively review whether the public interest will be served by granting each of the transfer of control applications, pursuant to section 310(d) of the Communciations Act and all other applicable statutory provisions and Commission rules." (over) - 2 - The DBS auction conducted by the Commission earlier this year ushered in a new era of DBS service to the public by assigning scarce DBS orbital slots swiftly and efficiently. The auction and today's follow-up orders reflect the Commission's commitment to foster greater consumer choice of improved video programming, to increase services available to remote and underserved areas, and to encourage the introduction of new DBS services. At the auction MCI successfully bid $682.5 million for the authorization to provide a nationwide DBS service from the 110o W.L. orbital location. Echostar bid $52.3 million for the authorization to provide coverage to the western region of the U.S. at the 148o W.L. orbital slot. Once MCI and Echostar submit the balance of their bids, $546 million and $41.8 million respectively, the Commission will grant each final authority to construct, launch and operate their DBS systems. The accompanying Public Notice outlines specific instructions for the two companies to remit the balance of their bids, due by December 13, 1996. Action by the International Bureau on December 6, 1996, on File Nos. DA 96-1793, DA 96- 1794. For more information, contact John Stern at 202-418-0746 or Regina Dorsey at 202-418-1995 (Payment Questions only). - FCC -