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K9q^sFZ"i~'^'-5CCph---CK#-#%CCCCCCCCCC%%KKK;{`XX`SK``-3`Su``K`XKS``}``S-%-=C-;C;C;-CC%%C%hCCCC-3%CC`CC;@@H-#H=---#--------C%`;`;`;`;`;uWX;S;S;S;S;-%-%-%-%`C`C`C`C`C`C`C`C`C`C`;`C`A`C`C`CKC`;`;`;X;X;XHX;`TS;S;S;S;`C`C`C`H`C`H`C-%-C---C]KHH`CS%S5S-S-S%`CO`C`C`C`Cu`X-X-X-K3K3K3KHS8S%S=`C`C`C`C`C`C}``HS;S;S;`CS-`CK3S-`CT#CC,,W]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN0PP0=C-;CCCCC%+eeC(+eeCe(--;;C..PCCQe0PP0OooKK-;Cp("XXXXee{CePMHCKPPC"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9`XX`SK``-3`Su``K`XKS``}``SP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNP yO"-ԍxId. at  31.F With respect to the first prong of  S(-NARUC I, we concluded that sufficient competitive capacity is and will continue to be available to  S-assure the U.S. public ample access to fixedsatellite services.F?`  yO&-ԍxId. at  31.F With regard to the second prong of  S-NARUC I, we found little likelihood that noncommon carrier domsats will hold themselves out indifferently to serve the public and that stable, longterm contractual offerings to individual customers" ?0*((-" of technically and operationally distinct portions of a satellite fall short of the indiscriminate offerings  S-contemplated in NARUC I. We also noted that restrictions on separate system offerings have been eroded and no longer limit separate system operators to providing customized services. We, therefore, proposed to permit but not require U.S. space station licensees providing international service to do so on a common carrier basis, if these offerings further their business plans. Accordingly, we proposed to allow all U.S. FSS licensees and applicants to elect whether to provide service on a common carrier  S-or noncommon carrier basis.F@ yOx-ԍxId. at  33.F  S-x.47.` ` Domsat and separate system operators support this proposal. Noting that most domestic fixed satellite services are already offered on a noncommon carrier basis, HBO states that there is no evidence to support a continuing requirement for satellite capacity to be provided on a  SH -common carrier basis.DAH X yO@ -ԍxHBO comments at 15.D Comsat, while agreeing with our proposal, stresses that the regulatory classification must, as a matter of law, be determined by the manner in which services are actually  S -offered.GB  yO-ԍxComsat comments at 14.G  S -x/48.` ` In contrast, GCI and the Networks are concerned that permitting satellite operators to choose their regulatory classification might endanger the amount of capacity available for domestic service requirements. The Networks oppose changing the current obligation of satellite operators to make available a sufficient amount of capacity on a common carrier basis. Citing the shortage of domestic Cband satellite capacity, and increased rates for occasional television service, the Networks fear that operators may exit the occasional use market, and serve only fulltime customers, if relieved of their obligation to provide service on a common carrier basis. The Networks also believe that the public should be allowed to comment on applications by satellite operators who elect to provide capacity on a noncommon carrier basis.  S-x049.` ` We adopt our proposal to permit satellite operators to elect to operate on a common  S-carrier or noncommon carrier basis. As we stated in the Notice, no transponder sales application has  S-been opposed in the last decade. Despite the routine approval of these requests, several operators have chosen to continue to offer space segment capacity on a common carrier basis. This suggests that market forces are sufficient to provide enough common carrier capacity. Neither the Networks nor  ST-GCI has presented any evidence to suggest that this will not continue. The current shortage of domestic Cband satellite capacity is not the result of capacity being offered on a noncommon carrier basis. Rather, the shortage is attributable primarily to the failure of AT&T's Telstar 402 satellite and the fact that several older satellites are nearing retirement at the same time. Further, we agree with COMSAT that any such election should be based on the realities of the service provided consistent  S-with the factors set forth in NARUC I. Thus, a U.S. FSS licensee, whether formerly operating as a domsat or a separate system, must operate on a common carrier basis if it chooses to make  S<-indiscriminate offerings to the public under the NARUC I criteria.  S -x150. ` ` We note that while applicants will need to elect their regulatory classification in their applications, this election will not be of decisional significance. Rather, the election will be for"!xB0*((U#" informational purposes only to enable us to apply Title II regulations to common carriers. Similarly, licensees wishing to change their regulatory classification should notify us in writing of such change, including the date on which they intend to do so. No prior approval from the Commission will be necessary. Commission staff will include the notification of a change in status as an informational listing in the Satellite and Radiocommunication Division's weekly Public Notice of actions taken. The staff will also place a copy of the notification in the station file.  R- D. Changes to Earth Station Rules.  S-  Sp-x251.` ` Under our current licensing scheme, earth stations are classified as either domestic or  SH -international depending on the satellites that will be accessed.ICH  yO -ԍxNotice at  34.I Domestic earth stations are typically licensed to communicate with all domestic satellites in the "domestic" portion of the arc, referred to for licensing purposes as "ALSAT." International earth stations are licensed to communicate with specific U.S.licensed separate systems and nonU.S. international satellites. Under this licensing scheme, domestic earth station licenses have to be modified to communicate with any satellites not included in the "ALSAT" designation and international earth station licenses have to be modified to communicate with any satellite not designated on the license.  S-x352. ` ` In light of our proposal to eliminate the distinction between domestic and separate  S-system satellites, we tentatively concluded in our Notice that there is no reason to retain any  S-distinction between domestic and international earth stations using U.S.licensed space segment.ADXX yO-ԍXxNotice at  36. We will consider earth stations using nonU.S. licensed space segment in our  yOx-forthcoming Notice of Proposed Rulemaking. This will include issues relating to both transmit/receive and receiveonly earth stations.(#A Accordingly, we proposed to retain the "ALSAT" designation, but broaden its meaning to include all  Sh-U.S.licensed satellites providing fixedsatellite service.:Ehx yO-ԍxId.: We noted that expanding the "ALSAT" designation will reduce the number of license modification applications, while allowing operators to provide service immediately consistent with Intelsat Article XIV(d) consultations. We recognized, however, that our proposal could require additional coordination between earth stations operating in  S-the Cband and terrestrial Cband facilities.:F yOp-ԍxId.:  Sx-x453. ` ` All of the comments support this proposal.9Gx yO"-ԍXxEsatel further recommends that we adopt a policy granting blanket licenses to cover all earth stations at a given teleport site. This proposal is more appropriately raised in the context of our ongoing  yO@$-rulemaking to streamline earth and space station application and processing requirements. See Streamlining the Commission's Rules and Regulations for Satellite Application and Licensing Procedures, 10 F.C.C. Rcd. 10624 (1995). We will consider Esatel's proposal in that proceeding.(#9 The commenters agree that the proposed modifications will avoid the need for earth station license modification requests, result in substantial savings, allow more rapid service to customers, and enhance competition by allowing FSS earth station"(H G0*((" operators a broader choice of satellites with which to communicate. In particular, the Networks stress that the modification will enhance the operational flexibility of end users such as broadcasters that use different earth stations and need to access a variety of satellite systems to transmit and receive programming materials.  S8-x554.` ` The comments also favor a simplified procedure for modifying existing earth station licenses to incorporate domestic and international transmissions to all U.S.licensed satellites. Where no frequency coordination issues are presented, the comments suggest that the modification be automatic. If frequency coordination is required, Group W suggests that we permit access to a new satellite immediately upon certification or notification to the FCC that appropriate frequency coordination procedures have been completed. GCI believes that licensees operating earth stations in the Cband should be allowed to submit the additional frequency coordination studies and that such filings should not be placed on public notice. HBO proposes that the modification be made selfexecuting if no opposition is filed within 30 days after public notice of the filing of the appropriate  S -coordination data.H  yO8-ԍXxHBO notes that this is the same procedure followed for registration of domestic Cband receiveonly earth stations. (#Ʈ  S -x655.` ` We adopt our proposal to expand the ALSAT designation. We further agree that the proposal should be implemented with no unnecessary regulatory burden. We recognize, however, that earth station operators in the Cband that wish to communicate with an expanded number of satellites may need to complete additional frequency coordination with respect to terrestrial operators sharing the band. Consequently, we automatically modify all earth station licenses to allow the facilities to access all U.S.licensed satellites, provided that the operator submits, when necessary, a frequency coordination analysis verifying that the expanded operations are fully coordinated with other primary  Sh-users in the band under the Part 25 coordination requirements.>I@h  yO(-ԍXxHBO notes that despite phased relaxation of interconnection restrictions on separate systems, licenses still contain conditions that prohibit all interconnection of separate system traffic with the public switched network ("PSN"). These conditions have remained because of the regulatory burden of modifying licenses to reflect every new change in Separate Systems Policy permitting increased numbers of circuits capable of being interconnected with the PSN. We agree that it is unduly burdensome to require each licensee to file a license modification each time the circuit ceiling is raised. Accordingly, we deem the most recent PSN circuit modification (currently 8,000 per satellite) as well as future modifications as incorporated into all earth station licenses.(#>  R- `E. xOther Services  S-x756.` ` In our Notice, we recognized that U.S.licensed satellite systems providing services other `than domestic fixed satellite services may be similarly constrained in the geographic reach of  Sx-their services.IJx(  yO@$-ԍxNotice at  37.I We requested comment on whether licensees of geostationary systems that provide mobile and broadcast services should be permitted to provide both domestic and international service  S(-subject to U.S. international coordination obligations. In addition, we noted that there might be specific considerations for MSS and DBS that could dictate a different domestic/international policy. We asked, for instance, whether authorizing U.S.licensed DBS providers to broadcast to customers in" J0*((." other countries would be inconsistent with the "Plan" that assigned DBS orbit locations internationally, adopted at the 1983 Regional Administrative Radio Conference (RARC83). We also asked whether receipt in the U.S. of DBS programming transmitted from earth stations in foreign countries would be inconsistent with the provisions of International Telecommunications Union (ITU) Appendix 30A regarding feeder links for DBS. Finally, we requested comments on any other matters bearing on the issue of whether and to what extent U.S.licensed geostationary satellite systems should be permitted  S-to provide international broadcast and mobile services.oKX yOx-ԍXxNotice at  38. Issues involving whether, and under what conditions, nonU.S. DBS satellites should be  yO@-able to serve the United States will be considered in a further Notice. These include issues related to deregulation of international receiveonly earth stations. (#o  S-x 1.` ` Direct Broadcast Satellite Service  S-  Sp-x` ` a. Background  SH -  S -x857. ` ` DBS, or Broadcast Satellite Service ("BSS") as it is referred to internationally, is a directtohome service that uses geostationary satellites to transmit to user earth terminals. DBS orbital locations and channels have been assigned to countries in Region 2 which includes North, Central, and South America under a Plan adopted at RARC83. The Plan allocates 32 channels at  S -each of eight orbital locations to the United States from which to provide domestic DBS service.L  yO-ԍXxThe Region 2 BSS Plan was written primarily for domestic use, but it does not preclude the provision of international DBS service. ITU Radio Regulations, Appendix 30.(# The Plan also specifies the technical parameters under which DBS systems are to operate. Nevertheless, the Plan may be modified to permit nonstandard satellites and operations, provided that they do not affect satellites operating in compliance with the Plan or other services. Procedures for  S-modifying the Plan are set forth in Appendices 30xM@ yO-ԍ xAppendix 30 describes Region 2 BSS downlinks between 12.212.7 GHz. x and 30A|N yOP-ԍ xAppendix 30A describes Region 2 BSS feeder links between 17.317.8 GHz. | of the ITU Regulations. Modifications to the regional BSS Plans require coordination with countries that have assignments in the Plan that can be affected by such modifications.  S@-x958. ` ` The commenters generally agree that it is possible for U.S. licensees to provide DBS service to foreign countries in a manner consistent with the Region 2 Plan. They also support a policy that would permit U.S. DBS operators to provide international service, although they disagree about the timing for implementation of this policy and the conditions under which international service should be authorized.  SP-x:59. ` ` Direct Broadcasting Satellite Corporation ("DBSC"), DirecTV, which is an affiliate of Hughes Communications Galaxy, and Satellite CD Radio Inc. assert that DBS licensees should be allowed to provide international service, insofar as this can be done consistent with treaty requirements. They argue that if we permit FSS licensees to devote as much or as little of their"` N0*((." facilities to domestic or international service as they wish including directtohome service we  S-should provide the same opportunity to DBS licensees.TO yO@-ԍXxDBSC Comments at 9. (#T  S-x;60. ` ` In joint comments, the Networks (ABC, NBC, CBS, and Turner Broadcasting System, Inc.) recommend that we postpone consideration of issues concerning international DBS until we resolve the issues raised in relaxing restrictions on FSS providers. These joint commenters urge the Commission to address the FSS matters immediately and to resolve, at a later time, the complex issues pertaining to international DBS.  S-x<61. ` ` Corporaci;n Medcom, S.A. de C.V. ("Medcom"), a privatelyheld Mexican corporation authorized to provide domestic DBS service in Mexico, points out that Mexico recently passed a law that would enable U.S.licensed DBS providers to market their services in Mexico upon a U.S./Mexico bilateral treaty involving reciprocal market access. Medcom asks that any FCC policy regarding the provision of international DBS service by U.S. licensees make clear the conditions under which the U.S. DBS market will be open to foreign competition. Medcom states that the growing "grey  S -market".P X yO-ԍXxThe "grey market" described here by Medcom and in subsequent comments by Cancom involves  {Oh-transborder reception by Mexican and Canadian citizens of DBS and "quasiDBS" signals (i.e., Cband and Kuband directtohome services) from U.S.licensed satellites in violation of national law. Some foreign citizens apparently buy equipment for receiving and decoding these signals from U.S.licensed dealers who register them for service subscriptions using U.S. mailing addresses.(#. is inhibiting the development of Mexicanlicensed DBS. Medcom, therefore, urges us to adopt, as part of any deregulatory package, an enforcement mechanism that will enable a foreign DBS provider whose home market is being served by an unauthorized U.S.based satellite service to protect its interests.  S-x=62. ` ` While agreeing that it would be beneficial to relax geographic constraints on U.S.licensed satellite communications systems, HBO urges us to maintain a policy where the orbital positions best suited to provide service in the United States are used primarily to meet domestic communications needs. Accordingly, HBO suggests that we approve proposals to provide international service from such orbital positions only upon a showing that doing so would not cause a domestic shortage. It also asks that we periodically assess domestic capacity and require service adjustments when necessary.  S-x>63. ` ` Separate from this proceeding, DBSC filed a Petition for Declaratory Ruling regarding  Sx-the use of "spare" transponders to provide international DBS service.Qx  yO"!-ԍXxSee Public Notice, DBS/PN 9416, released Sept. 27, 1994. The petition was styled as an Application for Modification of Permit, but the Chief of the Mass Media Bureau's Video Services Division notified DBSC that inasmuch as it was requesting a general statement of policy rather than any specific change in its authorization the filing would be treated as a motion for declaratory ruling. Letter from Barbara A. Kreisman to DBSC dated Sept. 23, 1994.(# DBSC holds a construction permit for two elevenchannel DBS satellites at 61.5 degrees W.L. and 175 degrees W.L. DBSC  S(-states that it plans to design each satellite with 16 transponders. In its Petition, DBSC requests authority to use the five "spare" or "extra" transponders on each satellite for international service, subject to two conditions: (1) that there would be no consequent reduction in the use of its satellites" Q0*((." for provision of domestic DBS, and (2) that full compliance with all relevant treaty obligations be ensured. DBSC submitted an engineering study with its Petition to demonstrate that compatible use is  S-technically feasible.RX yO-ԍXxDBSC submitted a hypothetical case of service to Panama involving cochannel transmission of a narrow beam casting a footprint over Panama from a satellite in the 61.5 degree position. See Petition, Exhibit B, at 17.(#  S`-x?64. ` ` LocalDBS, Inc., a DBS licensee, supports DBSC's Petition. LocalDBS notes that the proposal was consistent with "the Clinton Administration's goal [of] opening the satellite marketplace  S-to fair and effective competition," citing Congressional testimony by FCC Chairman Reed Hundt.SX yO -ԍXxTestimony of Chairman Hundt before the House Subcommittee on Telecommunications on the Global Information Infrastructure and the Role of Satellites, July 28, 1994. (# LocalDBS adds that several applicants in the recent round of FSS applications have proposed to provide international directtohome services, underscoring the importance of affording DBS operators flexibility comparable to that enjoyed by FSS operators in order to promote fair competition between services.  S -x@65. ` ` Canadian Satellite Communications, Inc. ("Cancom"), a corporation licensed by the Canadian Radiotelevision and Telecommunications Commission to distribute radio and television signals by satellite, opposes DBSC's petition. It contends that adoption of a general policy permitting U.S. licensees to provide international DBS service could undercut Canadian regulatory policies designed to preserve Canada's cultural identity. Cancom states that there is no apparent need for the Commission to make such a broad policy decision at this time. It urges us to rule only on DBSC's specific proposal now, and to consider future proposals on a casebycase basis. Cancom also states that the Commission should condition any authorization that it issues for international DBS on approval by the foreign administrations involved. Finally, it recommends that we require any companies authorized to provide international DBS to exercise due diligence to ensure that their services are not provided to foreign users on a "grey market" basis. Dominion Video Satellite, Inc. filed a motion to deny DBSC's "application", insofar as granting the authority requested would effectively revise its construction schedule.  S-  S-`x` ` b. Discussion  S-xA66.` ` International DBS service from a U.S. DBS satellite may require coordination with f`oreign administrations. However, we see no reason why the Commission should impose any barriers on a licensee willing to provide international DBS service, in accordance with U.S. treaty obligations,  S(-from an orbital location assigned to the United States for DBS service.UTX( yO"-ԍXxAll DBS satellites providing international service will require technical compatibility coordination with Intelsat under Article XIV(e) of the Intelsat Agreement as a "specialized telecommunications services" provider. Economic harm consultation is not required under Article XIV(e).(#U  S-xB67. ` ` On the contrary, we should encourage international DBS service since it would advance the public interest in a number of ways. First, permitting international service would expand the potential audience for American programming, and could stimulate economic growth. Second,"( T0*((" importing uplinked foreign programming would enable operators to better satisfy the needs and desires of enhance services to multilingual subscribers in the U.S. Third, operators would enjoy economies of scale for both themselves and their customers if nonEnglish language programs could simultaneously serve samelanguage communities in the U.S. and in foreign markets. Finally, the possibility of providing international DBS services to Pacific Rim nations could make the westernmost DBS orbital locations allocated to the United States from which no permittee appears ready to operate in the near future more attractive platforms, which could accelerate development of those locations and thereby accelerate the delivery of DBS service to Hawaii and Alaska. None of the commenters have presented any reason why we should delay these benefits to the public.  Sp-xC68. ` ` We disagree with HBO that there is a need for the government to monitor the industry to ensure that sufficient services are being made available to the United States. As we discussed with  S -respect to the FSS industry, we believe market forces will determine the appropriate balance between international and domestic offerings. Further, we do not agree with Cancom and Medcom that revising our DBS policy compromises the rights of foreign administrations. Those administrations would retain all rights they now have to license the provision of international DBS service to their countries. The Commission's refusal to impose an additional layer of regulation upon those seeking to deliver international DBS service from orbital locations allocated to the U.S. in no way diminishes those rights.  S-xD69. ` ` While we believe the public interest will be served by allowing DBS licensees to provide domestic or international service from their authorized channels, we believe there are significant obstacles to DBSC or any other DBS operator providing international DBS service using "spare" channels not assigned to it. At each of the orbital locations at which DBSC is assigned eleven channels, nearly all of the remaining 21 channels allocated to the United States have been, or soon will be, assigned to other DBS permittees for domestic DBS service. Thus, in this regard DBSC mischaracterizes these channels as "spare" channels. Instead, before it can provide international service, DBSC would have to obtain the consent of the permittees holding assignments for the channels on which it seeks to provide international service, and ensure that its international service will not cause harmful interference to other DBS premittees.  S(-xE70. ` ` Therefore, we conclude that U.S. geostationary DBS satellite systems should be permitted to provide both domestic and international services from their authorized channels without  S-additional approval from the Commission.U  yO@-ԍXxThis conclusion about DBS service does not affect the Digitial Audio Radio Satellite Service, which is  yO-the subject of another pending proceeding. See Establishment of Rules and Policies for the Digital Audio Radio Satellite Service in the 23102360 MHz Frequency Band, FCC 95229 (released June 15, 1995).(#ƅ Prior to commencing such service, licensees must ensure that (a) the technical and operational parameters of the channels have been successfully coordinated, consistent with U.S. treaty requirements; and (b) they comply with FCC service rules for DBS  S`-channels assigned for U.S. domestic use.2Vx` yO$-ԍXxSee Revision of Rules and Policies for the Direct Broadcast Satellite Service, FCC 95507 (released Dec. 15, 1995). Licensees should also bear in mind that Section 25 of the 1992 Cable Act mandates that the Commission adopt rules imposing public interest requirements upon each provider of DBS service and directs the Commission to require each such operator providing video programming to reserve four to seven percent of its total channel capacity exclusively for noncommercial, educational,"'U0*((("  yO-or informational programming. See 47 U.S.C.  335(b). While the Commission was in the process of conducting a rulemaking to effectuate these congressional directives, a United States District Court struck down the noncommercial carriage obligations of Section 25, but the decision has been stayed  yO-pending appeal. See Daniels Cablevision, Inc. v. United States, 835 F. Supp. 1 (D.D.C. 1993), appeals  yO-pending sub nom. Time Warner Entertainment Co. v. FCC, No. 935349 and consolidated cases (D.C. Cir.). Nothing in this order should be taken to excuse international DBS providers from any public service obligations ultimately imposed.(#2 Naturally, a foreign administration may impose other"`V0*((" conditions before it permits a U.S. operator to do business there. The Commission cannot preempt  S-such conditions, but neither will we give them independent enforcement under U.S. law.W yO -ԍXxInternational law does not give any nation an absolute right of "prior consent" before information is sent across its borders. Indeed, Article 19 of the United Nations Universal Declaration of Human Rights confirms a fundamental human right both to send and to receive information across national boundaries.  yO -Universal Declaration on Human Rights, 1948 Y.B. on Hum. Rts. 459, U.N. Doc. A/811. However, U.S.licensed DBS operators will not be protected from interference in nations where they operate without proper authority. Resolution GT PLEN1, International Telecommunication Union, 1995 World Radiocommunication Conference, Annex, at  4.3.5. Thus, purely as a practical matter, we expect U.S. operators to submit to applicable national processes wherever they attempt to use DBS frequencies on a forprofit basis.(#   S-x 2. ` ` The Mobile Satellite Service  S8- x` ` a. Background  S-xF71. ` ` MSS provides seamless data or voice communications services to maritime land, and aeronautical mobile users anywhere. It can also serve FSS users. MSS encompasses a number of important services, including position location, search and rescue communication, disaster management communications, and messaging services. The Commission licensed the first U.S. commercial MSS system in 1989, when we granted American Mobile Satellite Corporation ("AMSC") a license to construct and launch a geostationary MSS system to serve the United States. Last year, we authorized  S -the first lowEarth orbit ("LEO") MSS systems. Specifically, we authorized Motorola, LQSS, and TRW to construct and launch voice and data systems. We have authorized Orbcomm, VITA, and Starsys to construct and launch dataonly systems. In granting these licenses, we emphasized that LEO systems, by virtue of their nongeostationary satellite orbits, are inherently capable of providing global service. Indeed, we required the Big LEO systems to be designed to provide global coverage. In doing so, we noted the significant benefits in facilitating the creation of the global information  S-infrastructure. We asked in our Notice whether we should permit U.S. licensed geostationary MSS systems to provide both domestic and international services, as well.  S-xG72. ` ` Most commenters recommend that we defer, to a future proceeding, the issues  Sh-concerning MSS.!XXh yO$-ԍXxComments favoring deferral of action on MSS issues were filed by: The Networks; Constellation Communications, Inc.; IDB Mobile; Loral/Qualcomm Partnership, L.P.; Motorola Satellite Communications, Inc.; Worldcom, Inc; and TRW, Inc.(#! Two of these commenters Loral/Qualcomm and Constellation contend that there are characteristics unique to MSS that any change in the Commission's MSS policies should take"@X0*((6" into account. For example, they assert that AMSC's system has not been successfully coordinated internationally. In addition, they note that geostationary MSS technology generally does not permit more than one system to serve a geographic area using the same frequencies, resulting in far fewer MSS systems than FSS systems. Thus, they request that we defer any policy decision concerning geostationary systems to take into account the implications for U.S.licensed LEO systems. In contrast, COMSAT supports eliminating geographic barriers for U.S. geostationary MSS systems provided that COMSAT is also permitted to provide domestic and international services.  S- `x` ` b. Discussion  Sp-xH73. ` ` We conclude that it is in the public interest to permit U.S.licensed geostationary MSS  SH -s`ystems to provide both domestic and international service.YH  yO -ԍXxWe will discuss issues involving Comsat's provision of domestic service, including MSS, in our  yOx -forthcoming Notice.(# As Comsat notes, customer demands for  S -communication services are becoming increasingly global. In our Big LEO Rulemaking,6ZX  yO-ԍXxSee In re Amendment of the Commission's Rules to Establish Rules and Policies Pertaining to a Mobile Satellite Service in the 16101626.5/2483.52500 MHz Frequency Bands, 9 F.C.C. Rcd. 4936 (1994)  yOp-(the "Big LEO Order"). (#6 we addressed the many public benefits associated with global MSS systems and required the systems in that proceeding to be capable of providing global coverage. We conclude that permitting U.S.licensed geostationary MSS systems to provide both domestic and international services will offer similar benefits, including increased competition, increased consumer choices, and further development of the global information infrastructure. The Big LEO licensees have not provided any valid reason to delay these public interest benefits. The fact that there are fewer MSS Systems than FSS systems or that spectrum coordination for the AMSC system has not yet been completed has little bearing on whether we should permit AMSC or other U.S. MSS licensees to extend its service offerings  S-internationally.[@ yO-ԍxIn fact, we note that coordination has not yet been completed for the Big LEO or Little LEO systems. We conclude that the record is sufficiently developed to allow us to implement a policy that would permit geostationary MSS systems, as their counterpart LEO MSS systems and geostationary FSS and DBS systems, to provide international as well as domestic service. Before an MSS licensee can actually provide service in a foreign territory, of course it must complete its international frequency coordination obligations and obtain any required approvals from the countries it wishes to serve.  Sx-#w III. Conclusion ĐTP  S(-xI74. ` ` In this Report and Order, we eliminate the outdated regulatory framework that distinguished domsats from separate systems and allow all U.S.licensed satellites in the fixed satellite service to provide both domestic and international services. To effectuate this, we eliminate the Transborder Policy in its entirety and regulate all U.S.licensed fixed satellites under a modified Separate Systems Policy. In doing so, we enhance the opportunity for the provision of innovative satellite service offerings without artificial regulatory barriers. In addition, we extend the benefits of"`[0*((" this new policy to other services by permitting DBS satellites and geostationary MSS satellites to provide both domestic and international services.  S-  S`-x  IV. Final Regulatory Flexibility Analysis ĐTP  S-xJ75.` ` Need for Rules and Objective. We have codified proposed rules that will permit Big LEO systems to be licensed. Our objectives have been to promote efficiency and innovation in the licensing and use of the electromagnetic spectrum, to develop competitive and innovative communications systems, and to promote effective and adaptive regulations.  SH -xK76.` ` Issues Raised by the Public in Response to the Initial Analysis. No comments were received specifically in response to the Initial Regulatory Flexibility Analysis. We have, however, taken into account all issues raised by the public in response to the proposed rules. In certain instances, we have eliminated or modified our proposed rules in response those comments.  S -xL77.` ` Alternatives that Would Lessen Impact. The minimal regulatory burden that we have imposed is necessary in order to carry out our duties under the Communications Act and other Federal statutes. We will continue to examine these requirements in an effort to eliminate unnecessary regulations and to minimize significant economic impact on small businesses.  S- V. Ordering Clauses ĐTP  S@-xM78.` ` Accordingly, IT IS ORDERED that Part 25 of the Commission's rules are amended as specified in Appendix C, effective thirty (30) days after publication in the Federal Register.  S-xN79. ` ` IT IS FURTHER ORDERED that DBSC's petition to use transponders to provide international DBS service IS GRANTED.  SP-H xO80.` ` This action is taken pursuant to Sections 4 and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.  154, 303(r), and Section 201(c) of the Communications Satellite Act of 1962, 47 U.S.C. 721(c). ` (#` (#` x` ` @FEDERAL COMMUNICATIONS COMMISSION x` ` @William F. Caton x` ` @Acting SecretaryH "![0*(((#"  S-, APPENDIX A List of Parties Filing Comments  S-TIB Docket No. 9541 ĐTPT  `yxdddy  SP-   June 7, 1995  r !Keystone Communications Corporation A  S- r  Comments: (Filed June 8, 1995)  S-#f\  PC&P#  r AAMSC Subsidiary Corporation Arter & Hadden (on behalf of its clients) AT&T Corp. Capital Cities/ABC, Inc., CBS Inc., Natl Broadcasting Co., Inc., & Turner Broadcstg System, Inc. Capital Cities/ ABC, Inc. (Additional Comments) Charter Communications International, Inc. Christian Broadcasting Network, The Columbia Communications Corporation COMSAT Corporation Constellation Communications, Inc. CorporaciAn Medcom Direct Broadcasting Satellite Corporation DIRECTV, Inc. Esatel Communications, Inc. GE American Communications, Inc. General Communications, Inc. Guam Telephone Authority Home Box Office Hughes Communications Galaxy, Inc. ICG Wireless Services, Inc. IDB Mobile Communications, Inc. Loral/Qualcomm Partnership, L.P. Motion Picture Association of America, Inc., The Motorola Satellite Communications, Inc. Orion Network Systems, Inc. PanAmSat Corporation Primestar Partners, L.P. Primosphere, L.P. Rockwell International Corporation Satellite CD Radio, Inc. Secretary of Communications and Transportation of the United States of Mexico, The Telecommunicaciones De Mexico Transworld Communications (U.S.A.), Inc. TRW Inc. W.L. Pritchard & Co. Washington International Teleport Westinghouse Broadcasting Company (Group W) WorldCom, Inc.AX'[0*((m)3'#'6r Numbered PleadingXԌ S-ԙ r  Reply Comments: June 23, 1995   AAT&T Corp. Capital Cities/ABC, Inc. Columbia Communications Corporation COMSAT Corporation Constellation Communications, Inc. General Communications, Inc. Home Box Office Hughes Communications Galaxy, Inc. IT&E Overseas, Inc. Motion Picture Association of America, Inc. Motorola Satellite Communications, Inc. National Education Telecommunications Organization and the Education Satellite Institute Orion Network Systems, Inc. PanAmSat Corporation Petroleum Communications, Inc. TRW Inc.  S0-A  S- "[0*((" 7 V  S-@ APPENDIX B DRFinal Rules hx  S- Part 25 of Title 47 of the C.F.R. is amended as follows  S- PART 25SATELLITE COMMUNICATIONS ` ` 1. The authority citation for Part 25 continues to read as follows:  S -` ` AUTHORITY : Secs. 25.101 to 25.601 issued under Sec. 4, 48 Stat. 1066, as amended; 47 U.S.C. 154. Interpret or apply secs. 101104, 76 Stat. 419427; 47 U.S.C. 701744; 47 U.S.C. 554.  S -  S -` ` 2. Section 25.110 is amended by revising paragraph (b) to read as follows:  S0- 25.110 Filing of applications, fees, and number of copies. ***** ` ` (b) Applications for satellite radio station authorizations governed by this part and requiring a fee shall be mailed or handdelivered to the locations specified in Part 1, subpart G of this title. All other applications shall be submitted to the Secretary, Federal Communications Commission, 1919 M Street, N.W., Washington, DC 20554. ***** ` ` 3. Section 25.113 is amended by revising paragraphs (b) and (d) to read as follows:  SP-  25.113 Construction permits. ***** ` ` (b) Construction permits are not required for satellite earth stations that operate with INTELSAT or INMARSAT space stations, or for earth stations that operate with U.S.licensed space stations. Construction of such stations may commence prior to grant of a license at the applicant's own risk. Applicants must comply with the provisions of 47 CFR 1.1312 relating to environmental processing prior to commencing construction. A simultaneous application for a construction permit and station license may be made for all earth station and space station facilities governed by this Part. ***** ` ` (d) In addition to the construction permit required by paragraph (a) of this section, a launch authorization must be applied for and granted before a space station may be launched and operated in orbit. Request for launch and operation authorization and station license may be included in the application for space station construction permit. A launch authorization and station license may also be requested at any time for a space station constructed as an onground spare satellite. However, an application for authority to launch and operate an on"'[0*((O)"ԫground spare satellite will be considered to be a newly filed application for cutoff purposes, except where the space station to be launched is determined to be an emergency replacement for a previously authorized space station which has been lost as a result of a launch failure or a catastrophic inorbit failure. ` ` 4. Section 25.114 is amended by revising paragraph (c)(18) and and removing and reserving paragraph (c)(24) to read as follows:  S-  25.114 Applications for space station authorizations. ***** ` ` (c)*** ` ` (18) Detailed information demonstrating the financial qualifications of the applicant to construct and launch the proposed satellites. Applications shall provide the financial information required by  25.140 (b) through (e). ***** ` ` (24) [Reserved]. ***** ` ` 5. Section 25.115 is amended by revising paragraph (c) to read as follows:  S-  25.115 Application for earth station authorizations. ***** ` ` (c) Large Networks of Small Antennas operating in the 12/14 GHz bands with U.S. satellites for domestic services. Applications to license small antenna network systems operating in the 12/14 GHz frequency band under blanket operating authority shall include the following: ***** ` ` 6. Section 25.117 is amended by revision paragraph (a) to read as follows:  S8-  25.117 Modification of station license. ` ` (a) Except as provided, no modification of a radio station governed by this part which affects the parameters or terms and conditions of the station authorization shall be made except upon application to and grant of such application by the Commission. No license modification will be required if the licensee seeks to access another U.S.licensed fixed satellite provided: ` ` (1) Consultations pursuant to Article XIV(d) of the INTELSAT Agreement have been completed for the satellites, services and countries involved; and "&[0*((n("Ԍ` ` (2) The operators of the U.S.licensed systems, where operated on a common carrier basis, have received specific authorization to preceiveonlyvide the services to the proposed locations. ***** ` ` 7. Section 25.130 is amended by revising paragraph (d) to read as follows:  S-  25.130 Filing requirements for transmitting earth stations. ***** ` ` (d) Transmission of signals or programming to nonU.S. satellites, or to foreign points by means of U.S.licensed fixed satellites, may be subject to restrictions as a result of international agreements or treaties. The Commission will maintain public information on the status of any such agreements. ` ` 8. Section 25.131 is amended by revising paragraphs (b), (g) and (j) to read as follows:  S-  25.131 Filing requirements for receiveonly earth stations. ***** ` ` (b) Except as provided in paragraph (j) of this section, receiveonly earth stations may be registered with the Commission in order to protect them freceiveonlym interference from terrestrial microwave stations in bands shared coequally with the fixed service in accordance with the procedures of  25.203 and  25.25125.256. ***** ` ` (g) Reception of signals or preceiveonlygramming freceiveonlym nonU.S. satellites may be subject to restrictions as a result of international agreements or treaties. The Commission will maintain public information on the status of any such agreements. ***** ` ` (j) Receiveonly earth stations operating with: ` ` (1) INTELSAT space stations; or ` ` (2) U.S.licensed and nonU.S. space stations for reception of services from other countries; Shall file an FCC Form 493 requesting a license for such station. Receiveonly earth stations used to receive INTELNET I services from INTELSAT space stations need not file for  SH$-licenses. See Deregulation of ReceiveOnly Satellite Earth Stations Operating with the INTELSAT Global Communications Satellite System, Declaratory Ruling, RM No. 4845, FCC 86214 (released May 19, 1986). "'[0*((O)"Ԍ` ` 9. Section 25.140 is amended by revising paragraphs (a) and (b) to read as follows:  S-  25.140 Qualifications of fixedsatellite space station  S-` ` licensees. ` ` (a) New fixedsatellites shall comply with the requirements established in Report and Order in CC Docket No. 81704. The requirements for radio station applications for new fixedsatellites are specified in Appendix B to the Commission 1983 Processing Order (93 FCC2d 1260 (1983)). Applications must also meet the requirements in paragraphs (b) through (e) of this section. The Commission may require additional or different information in the case of any individual application. Applications will be unacceptable for filing and will be returned to the applicant if they do not meet the requirements referred to in this paragraph. ` ` (b) Each applicant for a space station authorization in the fixedsatellite service must demonstrate, on the basis of the documentation contained in its application, that it is legally, financially, 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: ***** ` ` 10. Section 25.202 is amended by revising paragraph (c) to read as follows:  Sh-  25.202 Frequencies, frequency tolerance and emission  S@-` `  limitations. ***** ` ` (c) Orbital locations assigned to space stations licensed under this part by the commission are subject to change by summary order of the commission on 30 days notice. An authorization to construct and/or to launch a space station becomes null and void if the construction is not begun or is not completed, or if the space station is not launched and positioned at its assigned orbital location and operations commenced in accordance with the station authorization, by the respective date(s) specified in the authorization. Frequencies and orbital location assignments are subject to the policies set forth in the Report and Order in IB Docket No. 9541. ***** ` ` 11. Section 25.210 is amended by revising the introductory portion of paragraph (e), removing and reserving paragraph (f) and revising the introductory portion of paragraph (j) to read as follows:  Sp#-  25.210 Technical requirements for space stations in the FixedSatellite Service. ***** ` ` (e) For fixedsatellite space stations providing international service, full frequency reuse is defined as follows: "'[0*((O)"Ԍ***** ` ` (f) [Reserved]. ***** ` ` (j) All operators of space stations shall file a semiannual report with the International Bureau and the Commission's Laurel, Maryland field office containing the following information: ***** ` ` 12. Section 25.211 is amended by revising paragraph (b) to read as follows:  S -  25.211 Video Transmissions in the Domestic FixedSatellite Service. ***** ` ` (b) All 4/6 GHz analog video transmissions shall contain an energy dispersal signal at all times with a minimum peaktopeak bandwidth set at whatever value is necessary to meet the power flux density limits specified in  25.208(a) and successfully coordinated internationally and accepted by adjacent U.S. satellite operators based on the use of state of the art space and earth station facilities. Further, all transmissions operating in frequency bands described in  25.208(b) and (c) shall also contain an energy dispersal signal at all times with a minimum peaktopeak bandwidth set at whatever value is necessary to meet the power flux density limits specified in  25.208(b) and (c) and successfully coordinated internationally and accepted by adjacent U.S. satellite operators based on the use of state of the art space and earth station facilities. The transmission of an unmodulated carrier at a power level sufficient to saturate a transponder is prohibited, except by the space station licensee to determine transponder performance characteristics. All 12/14 GHz video transmissions for TV/FM shall identify the particular carrier frequencies for necessary coordination with adjacent U.S. satellite systems and affected satellite systems of other administrations. ***** ` ` 13. Section 25.276 is amended by revising paragraph (c) to read as follows:  S-  25.276 Points of communication. ***** ` ` (c) Transmission to or from foreign points over space stations in the FixedSatellite Service, other than those operated by the International Telecommunications Satellite Organization and Inmarsat, are subject to the policies set forth in the Report and Order in IB Docket No. 9541.