******************************************************** 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 the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of Loral Space & Communications Ltd. Application for Authority to Construct, Launch, and Operate a Ka-Band Satellite System in the Fixed-Satellite Service File Nos. 109-SAT-P/LA-95 110-SAT-P-95 187-SAT-AMEND-95 188/189-SAT-P/LA-95 102/103-SAT-AMEND-96 ORDER AND AUTHORIZATION Adopted: May 8, 1997 Released: May 9, 1997 By the Chief, International Bureau: Introduction 1. With this Order, we authorize Loral Space & Communications Ltd. ("Loral") to launch and operate a satellite system in geostationary-satellite orbit ("GSO") to provide fixed- satellite services ("FSS") in the Ka-band. This will provide Loral the opportunity to provide a variety of advanced interactive broadband information services to users in the United States and around the world. Background 2. Loral proposes to construct, launch, and operate three GSO FSS satellites for its "CyberStar" system, to be located at 110ø W.L; 29.5ø E.L., and 105.5ø E.L. It also proposes to construct one ground spare. 3. Loral, a Bermuda corporation, requests use of spectrum in the 28.35- 28.6 and 29.5-30.0 GHz bands for service uplink operations and the band 18.95-19.2 and 19.7-20.2 GHz for its service downlink operations. Loral requests authority for inter-satellite links in the 60 GHz band. It also proposes to operate its transfer orbit tracking, telemetry, and command operations ("TT&C") in Ku-band frequencies. 4. The CyberStar network proposes to offer services such as video telephony and videoconferencing, medical and technical tele-imaging, high-speed data networks and "bandwidth on demand." Loral proposes to offer services on a non-common carrier basis. 5. Each satellite in the CyberStar system will have on-board processing and switching capabilities to promote maximum communication flexibility. Each satellite will provide antenna coverage with twenty-seven regional beams. Loral proposes to use right-hand and left-hand circular polarization. Loral proposes to use Frequency Division Multiple (FDM)/Time Division Multiplexed (TDM) protocol for uplink and TDM for downlink. 6. Several other GSO FSS applicants filed petitions to deny and other pleadings in response to the public notice. As further discussed below, the GSO FSS applicants later withdrew these pleadings and petitions to deny. Motorola Satellite Communications, Inc. also filed a petition to deny all of the GSO FSS Ka-band applications, arguing that grant would conflict with its requested frequencies for feeder links for its "Big LEO" system. These concerns are resolved by the 28 GHz band plan. Relevant Domestic Decisions 1. DISCO I 7. In January 1996, the Commission, in the DISCO I Report and Order, abolished all distinctions between U.S. domestic satellites and international separate system satellites. This allows all U.S. - licensed satellites to provide any mix of domestic or international satellite services they choose, subject only to the licensee obtaining all applicable international approvals and authorizations by other administrations to provide service to, from, or within their respective territories. Therefore, all FSS licensees in the Ka-band are permitted to provide any combination of domestic and international services without obtaining separate approval from the Commission for specific service areas. 2. 28 GHz Band Segmentation Decision 8. In July 1996, the Commission adopted a band plan for U.S. commercial operations in the Ka-band. This band plan designates discrete band segments in 17.7-20.2 GHz and 27.5-30.0 GHz frequency bands for the Local Multipoint Distribution Service ("LMDS"), the fixed service, the GSO FSS service, the non-geostationary satellite orbit ("NGSO") FSS service, and feeder links for certain NGSO mobile satellite service ("MSS" or "Big LEO") systems. Of the total 2.5 GHz of spectrum available in each transmission direction, we concluded, based on the representations of the GSO FSS applicants, that 1 GHz of spectrum in both transmission directions was needed to support GSO FSS systems. The 28 GHz band plan designates the following frequencies for GSO FSS systems. We also note any other services that are designated in the band plan to share the band with GSO FSS systems on an equal basis: GSO FSS-Designated Band Segment Other Co-Primary Designations 17.7-18.8 GHz (downlink) Fixed 19.7-20.2 GHz (downlink) 28.35-28.6 GHz (uplink) 29.25-29.5 GHz (uplink) NGSO MSS feeder links 29.5-30.0 GHz (uplink) 3. Orbital Assignments 9. In May 1996, the International Bureau, acting on delegated authority, assigned orbit locations to those 28 GHz GSO FSS applicants in the first processing round that proposed to provide international FSS from their GSO systems. This assignment plan was the result of the GSO FSS applicants' successful efforts to resolve their conflicts over orbit locations for satellites in the 62ø W.L. to 175.25ø E.L. region of the orbital arc. In the Assignment Order, we indicated that the assignments were conditioned on the grant of the domestic assignments. Specifically, the May 1996 Ka-Band Assignment Order assigned locations to Loral at 28ø E.L. and 105.5ø E.L 10. In February 1997, the first-round GSO FSS applicants, due to their continued efforts, reached an agreement regarding conflicts over locations in the remainder of the orbital arc. Specifically, this agreement covered locations between 67ø W.L. to 148ø E.L., which are best suited for providing service to the United States. As part of this agreement, the GSO FSS applicants also agreed to withdraw their petitions to deny and other pleadings filed with respect to each others' 28 GHz band applications. This agreement effectively eliminated all obstacles to quick grant of the GSO FSS applications. By a separate Order issued today, we adopt an Assignment Plan implementing the orbital assignment agreement. Specifically, this Assignment Plan assigns an additional orbit location to Loral at 115ø W.L. Discussion A. Qualifications 11. Before the Commission authorizes any space station applicant, we first need to determine whether an applicant is legally, technically, and financially qualified to hold a Commission license. The rules set forth in Part 25 of the Commission's rules governing the fixed-satellite service apply, in general, to FSS systems in the Ka-band. We recognize we will need to modify these rules, to some extent, to incorporate operations at 28 GHz. Such modifications are the subject of an ongoing rulemaking. We expect to release a Report and Order in this proceeding shortly. Nevertheless, because Loral's system is not mutually exclusive with any other U.S. commercial satellite applications on file, and can be evaluated under current Part 25 rules, we do not view the rulemaking as a bar to considering Loral's license now. Rather, we will condition any grant to Loral on it complying with all rules adopted in the 28 GHz Band Satellite Report and Order. Financial Qualifications 12. Although financial qualification requirements for GSO FSS systems will be discussed in greater detail in the forthcoming 28 GHz Band Satellite Report and Order, the Commission has in the past, based financial requirements for satellite services on the basis of entry opportunities in the particular service being licensed. In cases where we can accommodate all pending applications and where there is sufficient remaining capacity to address additional requests that may arise, we have not looked to current financial ability as a prerequisite to a license grant. This is because the grant of an authorization to one applicant will not prevent another qualified applicant from going forward with a proposal in the same service. We ensure that licensees timely build their systems by requiring them to meet specified implementation milestones. In contrast, where applications for satellites exceed the number of satellites we can accommodate, we have adopted a standard that requires applicants to demonstrate evidence of internal assets or committed financing sufficient to cover construction, launch, and first year operating costs. This is based on our experience that under-financed licensees have significant difficulty in raising the requisite financing. 13. Because all of the first-round 28 GHz GSO applicants agreed to orbit locations, and because other orbit locations remain available for additional GSO FSS satellites, authorization of all proposed systems does not preclude use of this band by other applicants for GSO FSS systems. Consequently, it is not necessary to rule on any of the first-round 28 GHz applicants' financial qualifications. We previously granted a similar waiver to Norris Satellite, Inc., which was awarded a license to provide satellite services in the 28 GHz band in 1992. We intend to rigorously enforce the system milestone schedule to ensure that Loral proceeds in a timely manner and does not tie up valuable orbital locations and spectrum to the exclusion of other qualified applicants. Technical Qualifications 14. Applicants for space station authorizations also must meet certain technical qualification requirements. In its application, Loral represents that it intends to operate under the existing technical rules for the FSS in Part 25 of the Commission's rules. After examining its application, it appears it can do so. As noted, however, we will need to modify these rules somewhat, to incorporate operations in the 28 GHz band. For example, we envision that we will need to modify the definition of full frequency reuse for systems employing circular polarization. Nothing in Loral's application suggests its system will not be able to operate within modified Part 25 technical parameters. Rather than delaying action on Loral's application until these modifications are adopted, we condition Loral's authorization on it complying with the forthcoming rules concerning technical qualifications for GSO FSS systems in the 28 GHz band. B. Spectrum Issues 15. In the following text we discuss specific issues related to the frequency bands Loral proposes for its service uplinks, service downlinks, its inter-satellite links, and its TT&C functions during transfer operations. Service Uplinks 16. As noted, the 28 GHz band plan designates 1000 MHz of spectrum in the 28.35-28.6 and the 29.25-30.0 GHz band for uplink GSO FSS operations. Two hundred fifty megahertz of this spectrum at 29.25-29.5 GHz is to be shared on a co-primary basis with NGSO MSS feeder links. 17. In its application, Loral proposes to use 750 megahertz of spectrum at 28.35- 28.6 and 29.5-30 GHz for its service uplinks. Loral's request is consistent with the band plan and we therefore grant Loral authority to operate in those bands in the United States. Service Downlink Bands 18. The 28 GHz band plan designates the 17.7-18.8 GHz and 19.7-20.2 GHz bands for GSO FSS operations, with the entire 17.7-18.8 GHz band to be shared on a co-primary basis with the fixed service. In adopting the band plan, we noted that GSO FSS operations in the 17.7-18.8 GHz band will be restricted by: the need to protect the broadcast satellite service in the 17.7-17.8 GHz band segment (after April 2007), power flux density limits to protect the earth exploration satellite service in the 18.6-18.8 GHz band, and the need to coordinate with fixed services throughout the band. We concluded that the GSO FSS systems should be able to coordinate sufficient spectrum with other users within this 1.1 GHz band, to give them, together with the 500 MHz designated at 19.7-20.2 GHz, access to sufficient downlink spectrum to correspond with the 1000 MHz of uplink spectrum designated for GSO FSS in the 27.5-30.0 GHz range. 19. In its application, which it filed before the final band plan was adopted, Loral proposes to use 750 megahertz of spectrum at 18.95-19.2 and 19.7-20.2 GHz for its service downlinks. 20. In the interest of expediting the licensing process, we grant here that portion of Loral's downlink request that is consistent with the 28 GHz band plan. Specifically, we authorize Loral to operate a system with service downlinks in the 19.7-20.2 GHz band. Its request to use 18.95-19.2 GHz is inconsistent with the Band Plan and will be denied. Nevertheless, we recognize that Loral has asked for 750 MHz of downlink spectrum, a request that falls within the amount of spectrum designated to GSO FSS by the band plan. We have already authorized Loral operating authority for 500 MHz at 19.7-20.2 GHz. We will allow Loral to make up its 250 MHz shortfall in the 17.7-18.8 GHz band. As noted, 1.1 GHz of spectrum at 17.7-18.8 GHz is designated for GSO FSS systems. This band, however, is to be shared on a co-primary basis with other services, constraining GSO FSS operations in this band and requiring coordination with other primary users. Consequently, it is premature to grant operating authority in any portion of the 17.7-18.8 GHz band. Nevertheless, we anticipate that Loral will be able to identify and coordinate 250 MHz in this band. Once Loral has determined exactly which 250 MHz it wishes to use in the 17.7-18.8 GHz band, it should file a modification application to operate in these frequencies. In the interim, Loral is of course free to begin construction in these bands at its own risk. 21. In addition, Loral must coordinate with the U.S. Government systems operating in the 17.7-18.8 and 19.7-20.2 GHz bands in accordance with footnote US 334 to the Table of Frequency Allocations. This footnote requires coordination of commercial systems with U.S. Government systems in the 17.8-20.2 GHz band. Transfer Orbit Telemetry 22. Loral proposes to conduct its TT&C operations in the Ku-band during transfer orbit maneuvers and Ka-band while on station. Specifically it proposes to operate in the 14000.5 MHz command and 12197 MHz for telemetry. 23. Under the U.S. Table of Frequency Allocations, TT&C operations may be provided in frequency bands allocated to the Space Operations Service or within the bands in which the particular satellite system will be providing service. Loral proposes to conduct transfer orbit TT&C functions for its 28 GHz system in the Ku-band, which is neither allocated to the Space Operations Service nor is the system's service band. Consequently, the proposed TT&C operations would constitute a non-conforming use of the Table of Frequency Allocations. The Commission has, however, permitted non-conforming uses in situations where the non-conforming use would not interfere with any conforming service and grant would otherwise serve the public interest. Here, Loral would make only temporary use of the Ku-band, and would do so because there is no Ka-band global network yet in place by which it can monitor a satellite's launch and early operations. Nevertheless, Loral has not provided a technical showing that it can conduct Ku-band TT&C operations on a non-interference basis. Thus, we will not grant Loral's request. If Loral wishes to pursue Ku-band transfer orbit operations, it must file a modification application in which to do so, accompanied by either (1) an exhibit demonstrating Loral's operations will not interfere with other conforming operations in the band; or (2) a showing that it has successfully coordinated its proposed operations with all affected operators in the band. Inter-Satellite Links 24. Inter-satellite links between adjacent CyberStar satellites will be used to provide connectivity between the coverage regions of different satellite orbit locations. Loral proposes to use inter-satellite links in the 60 GHz band. The 59-64 GHz band is allocated domestically and internationally on a co-primary basis to the inter-satellite service, the fixed service, the mobile service, and the radiolocation service. These bands are also shared on a co-equal basis with U.S. Government operations. There appear to be significant interference problems associated with commercial GSO and NGSO operations and U.S. Government operations at 59-64 GHz. 25. Another alternative for inter-satellite links is the 54.25-58.2 GHz band, which two other GSO FSS applicants propose. Licensing inter-satellite link operations in this band, however, is similarly premature. This band is allocated domestically and internationally on a co-primary basis to the earth exploration satellite service, fixed, mobile, space research and inter-satellite services. Use of these bands is shared on a co-equal basis between U.S. Government operations and commercial operations. GSO FSS operators must meet a power flux density (pfd) limit at any altitude between 0 and 1000 kilometers to protect passive NGSO satellite systems. The appropriate pfd limit has been the subject of study within the ITU Radiocommunication Sector and will be finalized at WRC-97. Any GSO inter-satellite link operation in these bands would be subject to coordination with U.S. Government operations in the band and the appropriate pfd limit. 26. The Commission and the National Telecommunications and Information Administration (NTIA), which has primary jurisdiction over U.S. Government use of spectrum, have had discussions regarding the interference problems that would be associated with commercial GSO FSS operations at 54.25-58.2 GHz and 59-64 GHz. The 54.25-58.25 GHz band appears more promising for commercial GSO operations. We are also working with NTIA to develop a U.S. proposal for WRC-97 for an allocation in the 65-71 GHz band for inter-satellite service links for NGSO and GSO FSS systems. We are optimistic that we will obtain sufficient spectrum internationally to support the inter-satellite link operations of all licensed 28 GHz band systems. Once suitable spectrum is available, we will allow Loral to revise its requested inter- satellite link bands accordingly. 27. Nevertheless, we will not delay Loral's license pending the allocation of suitable spectrum for inter-satellite links. We will require Loral to apply for operating authority on specific operating frequencies once these frequencies have been identified. Further, because Loral will not be able to proceed beyond the initial phases of construction until the inter-satellite link issues are resolved, we will not impose any system implementation milestones until we grant Loral authority to launch and operate a GSO FSS system using specific inter-satellite link spectrum. Although we are not imposing specific milestones at this time, we will hold Loral to a strict milestone schedule, once its inter-satellite link frequencies are authorized. Specific implementation milestones for 28 GHz band satellite systems will be discussed further in the 28 GHz Band Satellite Report and Order. In the interim, Loral is, of course, free to begin construction at its own risk. C. Regulatory Treatment 28. In our DISCO I Report and Order, we determined that all fixed-satellite operators in the C-band and Ku-band could elect to operate on a common carrier or non-common carrier basis. As we will discuss in more detail in the 28 GHz Report and Order on service rules, we see no reason to treat Ka-band FSS licensees differently. 29. The Commission traditionally has evaluated requests to operate on a non-common carrier basis using the analysis set forth in National Association of Regulatory Utility Commissioners v. FCC, (NARUC I). Under NARUC I, we may regulate an entity as a private carrier unless: (1) there is or should be any legal compulsion to serve the public indifferently; or (2) there are reasons implicit in the nature of the service to expect that the entity will in fact hold itself out indifferently to the eligible user public. 30. Loral proposes to operate all of its proposed domestic and international fixed- satellite services as a non-common carrier, and states that it will not provide services directly to end users. We have already authorized one 28 GHz FSS operator in the United States. Today we are authorizing thirteen more. Dozens of FSS satellites are now operating in the C-and Ku- band. In addition, the recent World Trade Organization agreement will open the U.S. market to foreign licensed satellites. Thus, with respect to the first prong of NARUC I, sufficient competitive capacity is and will continue to be available to assure the U.S. public access to FSS. With regard to the second prong of NARUC I, we see no reasons why 28 GHz operators will hold themselves out indifferently to the public. We will therefore allow Loral to operate on a non- common carrier basis. D. International Coordination 31. In general, we will follow the applicable advance-publication, coordination, and notification procedures as set forth in the ITU Radio Regulations in coordinating Loral's satellites with other affected administrations. We will discuss in more detail international coordination procedures among U.S.-licensed FSS Ka-band systems, both GSO and NGSO, in the 28 GHz Band Satellite Report and Order. E. Exclusive Arrangements 32. To facilitate global competition, we are planning to adopt limitations on 28 GHz FSS licensees' ability to enter into exclusive arrangements with other countries. These restrictions will be discussed in more detail in the 28 GHz Band Satellite Report and Order on service rules. We intend to construe these arrangements bearing in mind that spectrum coordination and availability in particular countries may limit the ability of 28 GHz licensees to provide service to those countries. Accordingly, Loral must comply with any such restrictions adopted. Conclusion 33. Accordingly, upon review of Loral Space & Communications Ltd.'s application to implement a 28 GHz GSO satellite system to provide FSS, we find that Loral Space & Communications Ltd is qualified to be a Commission licensee and that, pursuant to Section 309 of the Communications Act of 1934, as amended, 47 U.S.C.  309, grant of this application will serve the public interest, convenience, and necessity. As specified in the Assignment of Orbital Locations to Space Stations in the Ka-Band, we have assigned Loral Space & Communications Ltd. to the 28ø E.L., 105.5ø E.L., and 115ø W.L. orbital locations. Ordering Clauses 34. IT IS ORDERED that Application File Nos. 109-SAT-P/LA-95, 187-SAT- AMEND-95, 188/189-SAT-PL/A-95, and 102/103-SAT-AMEND-96, ARE GRANTED, and Loral Space & Communications Ltd. IS AUTHORIZED to launch and operate three GSO FSS satellites, and to construct one ground spare, to provide fixed-satellite service in the United States in the frequency bands 19.7-20.2, 28.35-28.6 and 29.5-30.0 GHz, in accordance with the Assignment of Orbital Locations to Space Stations in the Ka-Band, DA 97-967 (adopted May 8, 1997), consistent with the Commission's Part 25 rules governing satellite operations, unless specifically waived herein, and any modifications to our rules that we adopt for 28 GHz GSO FSS systems in the forthcoming 28 GHz Band Satellite Report and Order. 35. IT IS FURTHER ORDERED that Application File No. 110-SAT-P-95, for authority to construct a ground spare, IS DISMISSED AS MOOT. 36. IT IS FURTHER ORDERED that Loral Space & Communications Ltd. must comply with all rules to be adopted for GSO FSS systems in the 28 GHz Band Satellite Report and Order and must file a letter with the Commission, within 60 days of the effective date of this Report and Order, representing that it will construct its system in compliance with any rules adopted in this Report and Order. Failure to submit such a letter within this time frame is grounds for rendering this authorization null and void. 37. IT IS FURTHER ORDERED that Loral Space & Communications Ltd. must coordinate all of its Ka-band downlink operations with the U.S. Government systems in accordance with footnote US334 to the Table of Frequency Allocations, 47 C.F.R.  2.106. 38. IT IS FURTHER ORDERED that the license term for each space station is ten years and will begin to run on the date Loral Space & Communications Ltd. 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. 39. IT IS FURTHER ORDERED that this authorization is subject to the completion of consultations under Article XIV of the INTELSAT Agreement. Upon completion of these consultations, and notification by the Department of State that the United States has fulfilled its international obligations with respect to INTELSAT, no further action by this Commission will be required. 40. IT IS FURTHER ORDERED that Loral Space & Communications Ltd. will prepare any necessary submissions to the International Telecommunication Union (ITU) and to affected administrations for the completion of the appropriate coordination and notification obligations for these space stations in accordance with the ITU Radio Regulations. 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 station 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). 41. IT IS FURTHER ORDERED that the temporary 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, assigned or disposed of in any manner, voluntarily or involuntarily, or by transfer of control of any corporation holding this authorization, 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. 42. IT IS FURTHER ORDERED that Loral Space & Communications Ltd. is afforded thirty days from the date of the 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. 43. This Order is issued pursuant to Section 0.261 of the Commission's rules on delegations of authority, 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 Peter F. Cowhey Chief, International Bureau