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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** DA 96-1941 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of the Applications of ) ) LORAL SPACE & ) File Nos. 72-SAT-P/LA-95 COMMUNICATIONS, LTD. ) 73-SAT-P/LA-95 ) 137-SAT-P-95 ) 100-SAT-AMEND-96 For Authority to Construct, Launch and ) 101-SAT-AMEND-96 Operate Space Stations in the Domestic ) Fixed-Satellite Service ) MEMORANDUM OPINION AND ORDER Adopted: November 20, 1996 Released: November 21, 1996 By the Chief, International Bureau: Introduction 1. On May 7, 1996, we authorized the construction, launch, and operation of eleven satellites in the domestic fixed-satellite ("domsat") service and assigned them to satellite orbit locations, with separate opinions addressing the merits of each application to follow. We issue this MO&O for the authorizations granted to Loral Space & Communications, Ltd. ("Loral SpaceCom") to construct, launch, and operate two hybrid C-/Ku-band domestic fixed-satellites at the 1290 W.L. and 770 W.L. orbital positions, and to construct one on-ground spare. These authorizations permit Loral SpaceCom to enter the domsat service market for the first time. Background 2. In the 1996 domsat processing round, Loral SpaceCom requested authority to construct, launch, and operate two hybrid C-/Ku-band satellites, LoralSat 101 and 102, and to construct one on-ground spare. AMSC Subsidiary Corporation, AT&T Corp., EchoStar Satellite Corporation, and GE American Communications filed comments concerning Loral SpaceCom's applications. For the reasons discussed below, we granted Loral SpaceCom's applications in the May 7 Order. 3. Loral SpaceCom's proposed satellites will each have 24 C-band and 32 Ku-band transponders. The C-band transponders each have a bandwidth of 36 MHz, a transmitter power of 20 watts, and a maximum effective isotropically radiated power ("EIRP") of 41.5 dBW. The Ku-band transponders each have a bandwidth of 27 MHz, a transmitter power of 110 watts, and a maximum EIRP of 53.0 dBW. Loral SpaceCom proposed to provide coverage to the 48 contiguous states ("CONUS"), Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands. It estimated the cost to construct and launch each satellite, and to operate them for one year to be $490 million. It requested the 790 W.L. and 1290 W.L. orbital locations and sought to offer services on a non-common carrier basis. Loral SpaceCom proposed to launch LoralSat 101 in June 1999 and LoralSat 102 in October 1999, approximately. 4. Loral SpaceCom asserted that its proposal to enter the domsat service market will mean the construction and operation of economical state-of-the-art digital satellites, initially providing hundreds of channels of cable and pay-per-view programming. Discussi on A. LoralSat 101, 102, and Ground Spare 5. Our rules permit us to assign new licensees "up to two orbital locations in each pair of frequency bands proposed," Further, we routinely authorize the construction of ground spares, in part, to enable operators to provide protection in the event of a satellite failure. Loral SpaceCom was legally, technically, and financially qualified to be a space station licensee. Accordingly, in our May 7 Order, we granted Loral SpaceCom's applications to construct, launch, and operate two in-orbit satellites, LoralSat 101 and 102, and to construct one on-ground spare. 6. EchoStar opposed the Loral SpaceCom applications, arguing that we should not allocate an orbital position in the high power arc to Loral since it intends to construct a comparatively low power satellite. EchoStar noted that the Commission specifically established the 750 W.L. to 790 W.L. and 1320 W.L. to 1360 W.L. for 12/14 GHz high-power density satellites. AT&T asserted that it should be awarded the 1290 W.L. orbital position instead of Loral SpaceCom because the public interest would be better served. 7. We disagree with the commenters arguments. We note, first, that the May 7 Order abandoned the policy of reserving a portion of the arc for high power satellites since most satellites are now operating at these higher levels without causing interference. Further, the power levels proposed by Loral SpaceCom are not "comparatively low" as EchoStar contends. On the contrary, its proposed Ku-band power density levels -- transmitter power of 110 watts and maximum EIRP of 53.0 dBW -- are equivalent to present generation high-power direct broadcast satellites ("DBS"). Moreover, Loral SpaceCom asserts that its proposed orbital assignments are compatible with the two- degree orbital separation plan and, therefore, would be unlikely to cause interference. Secondly, as stated in the May 7 Order, a request for a particular orbital slot does not prevent assigning another orbital location that we believe serves the public interest. We consider many factors in assigning an applicant a particular orbital position. No one factor would be singularly determinative. Likewise, as Loral SpaceCom points out, our domsat policy accords an assignment preference to new entrants in the domsat service arena. Consequently, we see no reason to change the orbital assignment of LoralSat 101, made in the May 7 Order. 8. We emphasize again, nonetheless, that satellite operators must coordinate in good faith to resolve potential interference issues. We continue to expect the various affected satellite operators to work out their technical differences in operating diverse power density services. No issues raised influence us to put additional restrictions on Loral SpaceCom. Conclusion and Ordering Clauses 9. We find that pursuant to Section 309 of the Communications Act, 47 U.S.C  309, grant of Loral SpaceCom's LoralSat 101, LoralSat 102, and ground spare applications will serve the public interest, convenience, and necessity. These authorizations will allow Loral Space and Communications, Ltd. to begin competing in the domestic fixed-satellite service market. As specified in the May 7 Order, we have assigned LoralSat 101 and 102 to the 129o W.L. and 77o W.L. orbital locations, respectively. 10. Accordingly, IT IS ORDERED that application file Nos. 72-SAT-P/LA-95, 73-SAT- P/LA-95, 137-SAT-P-95, 100-SAT-AMEND-96, and 101-SAT-AMEND-96 ARE GRANTED, as discussed in this order, and Loral Space & Communications, Ltd. IS AUTHORIZED to construct three hybrid C/Ku-band fixed-satellites, in accordance with the technical specifications set forth in its applications. 11. IT IS FURTHER ORDERED that Loral Space & Communications, Ltd., IS AUTHORIZED to launch and operate two space stations in the fixed-satellite service in accordance with the Assignment of Orbital Locations to Space Stations in the Domestic Fixed-Satellite Service, DA 96-713 (May 7, 1996), as well as the relevant terms and conditions of all previous orders and authorizations concerning the operation of space stations. These requirements include the filing of annual reports on the progress of space station construction, traffic on in-orbit satellites and transponder use. See Streamlining the Commission's Rules and Regulations for Satellite Application and Licensing Procedures, IB Docket No. 95-117 (adopted October 29, 1996). 12. IT IS FURTHER ORDERED that unless extended by the Commission for good cause shown, each authorization shall become NULL AND VOID in the event the space station is not constructed, launched, and successfully placed into operation in accordance with the technical parameters and terms and conditions of the authorizations by the following dates: Construction Commenced Construction Completed Launched LoralSat 101 1/30/97 9/30/99 12/30/99 LoralSat 102 3/30/97 12/30/99 3/30/00 Ground Spare 6/30/97 13. IT IS FURTHER ORDERED that the license term for the space stations is ten years and will begin to run on the date the licensee certifies to the Commission that the satellite has been successfully placed into orbit and the operations fully conform to the terms and conditions of this authorization. 14. IT IS FURTHER ORDERED that Loral Space & Communications, Ltd. will prepare, within 90 days of the release of this order, the necessary information for submission to the International Telecommunication Union ("ITU") to initiate the advance publication, international coordination, and notification process of these space stations in accordance with the ITU Radio Regulations and for consultation in accordance with Article XIV of the INTELSAT agreement. We also remind all licensees that no protection from interference caused by radio stations authorized by other Administrations is guaranteed unless coordination procedures are timely completed or, with respect to individual administrations, by successfully completing coordination agreements. Any radio stations authorization for which coordination has not been completed may be subject to additional terms and conditions as required to effect coordination of the frequency assignments of other Administrations, 47 C.F.R.  25.111(b). 15. IT IS FURTHER ORDERED that the assignment of any orbital location to Loral Space & Communications, Ltd. is subject to change by summary order of the Commission on 30 days notice and does not confer any permanent right to use the orbit and spectrum. Neither this authorization, nor any right granted by this authorization, shall be transferred to any person except upon application to the Commission and upon a finding by the Commission that the public interest, convenience, and necessity will be served thereby. 16. Loral Space & Communications, Ltd. is afforded thirty days from the date of release of this order and authorization to decline this authorization as conditioned. Failure to respond within that period will constitute formal acceptance of the authorization as conditioned. 17. This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R.  0.261, and is effective upon release. Petitions for reconsideration under Section 1.106 or applications for review under Section 1.115 of the Commission's rules, 47 C.F.R.  1.106, 1.115, may be filed within 30 days of the date of public notice of this order (see 47 C.F.R.  1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Donald H. Gips Chief, International Bureau