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                                      Before the
               FEDERAL COMMUNICATIONS COMMISSION
                         Washington, D.C. 20554


In re Application  of      )
                           
                           )
Columbia Communications    )                                                           
Corporation                )       Fee Control No. 9408228835035009                   
                                                                              
                           )
For Partial Waiver of its Regulatory )                        
Fee Payment for Two Geostationary    )            
Space Stations             )                                           
                                                                                          

                   MEMORANDUM OPINION AND ORDER


   Adopted:  November 12, 1998                                Released:  January 22, 1999

By the Commission:


Introduction
   
        1.  The Commission has before it an Application for Review, filed September 8, 1995, on behalf of
Columbia Communications Corporation (Columbia), licensee of two geostationary space stations.  Columbia
seeks review of a decision by the Associate Managing Director for Operations (AMD(O)), which denied
Columbia's request for partial waiver of its Fiscal Year 1994 (FY 1994) regulatory fee.  See letter to Raul R.
Rodriguez, Esquire from Marilyn J. McDermett, Associate Managing Director for Operations, dated August
9, 1995.  For the reasons that follow, we grant the Application for Review. 

Background

        2.  Columbia holds FCC licenses to operate two geostationary space stations.  Columbia submits,
however, that the design and operational characteristics of its system differentiate it from other U.S. fixed-
satellite service licensees and provide "a compelling justification for the modest reduction in regulatory fees
that Columbia seeks."  Supplement to Application for Review, p. 2 (September 13, 1996).  In particular,
Columbia explains that the satellite capacity is not entirely within its control.  Pursuant to an agreement with
the National Aeronautics and Space Administration (NASA), Columbia uses twelve C-band transponders on
NASA's Tracking Data and Relay Service Satellites.  Under its contract with NASA, which predated the
regulatory fee requirement by several years, Columbia's use of the spacecraft is secondary to NASA's and can
be preempted on minimal notice.  Supplement to Application for Review, p. 4.  Thus, Columbia explains, its
ability to adapt its operations to account for regulatory fees is more limited than other licensees.  In addition,
Columbia points out that, quite apart from any regulatory fees, it already remits 70% of its revenues to the
United States Treasury.  Id., p. 5.

Discussion

        3.  Congress has authorized the Commission to waive, reduce or defer regulatory fees in certain instances
"for good cause shown, where such action would promote the public interest." 47 U.S.C.
 159(d).  See also 47 C.F.R.  1.1166.  We have exercised this authority only rarely and do not do so lightly. 
We believe however, that the unique circumstances presented in this case warrant such a waiver.  We find it
pertinent that the usefulness of the license we have granted to Columbia is subject to change upon minimal
notice from NASA, another government body.  It is also pertinent that 70% of Columbia's revenues already
go to the U.S. Treasury.  Under these circumstances, we believe that it would promote the public interest to
grant the waiver Columbia has requested.  
        
        4.  Columbia paid a total of $130,000 in FY 1994 regulatory fees for two geostationary space stations. 
 Half of that fee, $65,000, will be waived and refunded.  In accord with this finding, the waiver of 50 percent
of Columbia regulatory fees for its geostationary space stations operated pursuant to its agreement with NASA
shall also apply to subsequent Fiscal Years and until such time as there is a substantial modification in
Columbia's contract with NASA, or a substantial change in the operation of its geostationary space stations. 

        5.  ACCORDINGLY, IT IS ORDERED, That the Application for Review filed by Columbia
Communications Corporation, IS GRANTED, and $65,000 will BE REFUNDED to Columbia
Communications Corporation.
  
        6.  IT IS FURTHER ORDERED, That the Managing Director shall, in accord with paragraph 4 of this
Memorandum Opinion and Order, grant waivers and make appropriate refunds for Fiscal Years after 1994. 


                           
                           
                           
                           
                           FEDERAL COMMUNICATIONS COMMISSION



                           Magalie Roman Salas
                           Secretary