******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before theFEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) Requests For ) Special Temporary ) File Nos. See Appendix A Authority ) ) To Operate on INTELSAT ) Satellites Transferring to ) New Skies, N.V. ) ) ) ORDER Adopted: November 30, 1998 Released: November 30, 1998 By the Chief, International Bureau: I. Background 1. By this Order, the Bureau grants requests for Special Temporary Authority (STA) filed by various earth station operators. The International Bureau finds that it is in the public interest to grant the STA requests because earth station licensees will be able to continue operations, using the New Skies satellites, pending final Bureau action on the underlying applications. 2. On March 31, 1998, the INTELSAT Assembly of Parties (Assembly) formed a new, private satellite company, New Skies Satellites, N.V. (New Skies) which has been incorporated in the Netherlands. Specifically, the Assembly decided to transfer the following INTELSAT satellites to New Skies: INTELSAT 513 at 183ø E.L.; INTELSAT 703 at 57ø E.L.; INTELSAT 803 at 338.5ø E.L.; INTELSAT 806 at 319.5ø E.L.; and INTELSAT K at 338.5ø E.L. Today, November 30, 1998, these satellites transferred to New Skies. 3. The Commission has licensed earth stations to provide international fixed- satellite services (FSS) between the United States and other countries on INTELSAT satellites that transferred to New Skies today. On June 12, 1998, the Commission released a Public Notice notifying earth station operators using the INTELSAT satellites that all of their authorizations will terminate effective upon the transfer of the satellites from INTELSAT to New Skies. The Public Notice also notified earth station operators intending to continue to serve the United States using a New Skies satellite to file modification applications by July 17, 1998. As stated in the Public Notices in this proceeding, the Bureau will evaluate the modification applications in accordance with the framework adopted in the DISCO II Order concerning the provision of service in the United States by affiliates of INTELSAT and Inmarsat. The modification applications were accepted for filing and placed on Public Notice on August 17, 1998. Petitions to deny and comments were filed. The pleading cycle closed on October 5, 1998. 4. Recognizing that a final decision on the modification applications would be unlikely before the transfer date, we informed earth station licensees providing service over the INTELSAT satellites that they may submit requests for Special Temporary Authority (STA) in order to continue to provide existing services to customers after the asset transfer but pending a Bureau decision on the modification applications. II. Discussion 5. In the DISCO II Order, the Commission stated that it would presume that allowing affiliates of intergovernmental organizations (IGOs), such as INTELSAT and Inmarsat, licensed by WTO members, to serve the U.S. market would further competition in the United States. The Commission also reserved the right, however, to attach conditions to the grant of authority or, in the exceptional case in which an application would pose a very high risk to competition in the U.S. satellite market that could not be remedied by conditions, to deny the application. The Commission stated that when determining whether an application to serve the U.S. market by an IGO affiliate raises the potential for competitive harm, it would consider any potential anticompetitive or market distorting consequences of continued relationships or connections between an IGO and its affiliate. 6. In order to evaluate the modification applications, in accordance with the framework adopted in the DISCO II Order, we need a complete record that includes final copies of all support service agreements negotiated between INTELSAT and New Skies as well as other relevant documentation. We understand that INTELSAT and New Skies are still negotiating the final terms of many such documents which at this time are not yet complete. We will not be able to evaluate the modification applications until we have received these documents and had an opportunity to analyze them. 7. Nevertheless, we conclude that the public interest will be best served by allowing the continuation of existing services using the New Skies satellites, pending action on the modification applications. Thus, to ensure that existing earth station licensees are able to continue operating, under our Title III authority, we grant temporary operational authority to the earth station licensees that have filed STA requests to provide international FSS services on the transferring satellites. This authorization permits earth station licensees listed in Appendix A to provide international FSS service using the specified INTELSAT satellite that, as of today, became a New Skies satellite. The STA authorizations will be in effect for six months from the date of this Order or until the Bureau takes final action on the pending earth station modification applications, whichever date is sooner. The STA authorizations do not permit the earth station licensees that filed the STA requests to provide any Direct-to-Home (DTH) services, Direct Broadcast Satellite (DBS) services, or Digital Audio Radio (DAR) services because any request to provide these services requires submission of an effective competitive opportunities showing. 8. The authorizations here are temporary only and do not prejudice Bureau action on the underlying applications. Consequently, the earth station licensees operating with an STA will be acting at their own risk and will be required to notify their customers that operation of these facilities is on a temporary basis. Furthermore, the STA authorizations are subject to the condition that harmful radio interference shall not be caused to any other lawfully operated radio station, and operation(s) shall cease immediately upon notification of interference. Complaints of all radio interference shall be forwarded immediately to the Bureau, in writing. III. Ordering Clauses 9. Accordingly, IT IS ORDERED that pursuant to 47 U.S.C.  309 (f), the earth station operators listed in Appendix A ARE GRANTED Special Temporary Authority to operate via the INTELSAT satellites that transferred today to New Skies for the provision of FSS service for a period beginning November 30, 1998 and ending May 29, 1999, subject to the conditions specified in paragraphs 7-8 of this Order. 10. IT IS ORDERED that use of the downlink frequency band 10.95 to 11.2 GHz and 11.45 to 11.7 GHz frequency band by the fixed-satellite service is limited to international systems, and prior to each use of this band, OrionNet, Inc.(SES-STA-1998-1120-01702) shall coordinate the earth station with terrestrial users in accordance with Section 25.203 of part 25 of the Commission's Rules, 47 C.F.R.  25.203. 11. IT IS ORDERED that OrionNet, Inc. (SES-STA-1998-1120-01702) shall also notify the Engineer-in-Charge at the Columbia Operations Center (301) 725-0555 prior to the operation of the earth stations. OrionNet, Inc. (SES-STA-1998-1120-01702) shall take steps to immediately resolve any interference conflicts which it may cause, including cessation of all operations, upon notification from the Engineer-in-Charge. 12. This authorization is issued pursuant to Section 0.261 of the Commission's rules and is effective upon adoption. Petitions for Reconsideration, pursuant to Section 1.106 of the Commission's rules, 47 C.F.R.  1.106, may be filed within 30 days of the public notice of this Order. FEDERAL COMMUNICATIONS COMMISSION Regina M. Keeney Chief, International Bureau