FCC EXPECTED TO ISSUE CONDITIONAL KU-BAND LICENSES
Boeing, Skybridge, Teledesic and Virtual GEO are expected to receive conditional licenses from FCC to operate nongeostationary systems in Ku-band pending final resolution of issues involving sharing with incumbent geostationary system, industry sources told us: “It was supposed to be out last Thursday or Friday, but we expect FCC to issue the order this week,” industry lawyer said. Conditional licenses are expected to allow companies such as Skybridge, which has been unable to attract investors, to move forward with financing plans while waiting for final ruling from FCC. However, attorney for one of applicants receiving conditional licenses called rulemaking “ridiculous and absurd.” He said conditional licenses was “worthless document,” saying it and $1.25 will “get you a cup of coffee at Starbucks.” Ruling could be issued as early as today (Thurs.) source said.
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Attorney blamed “premature” rulemaking and order on Skybridge: “They have been crying to the FCC that the lack of a license is stopping them from getting financing.” Skybridge attorney Phil Spector had no comment, but another industry official said Commission did right thing in “taking some kind of action” in proceeding: “It could take a long time to resolve the issues and the issues may never be settled.” Officials of Boeing, Teledesic and Virtual GEO weren’t available for comment.
“Some companies that filed against Skybridge aren’t planning on doing anything for a long time,” industry attorney said. He admitted conditional FCC license “wasn’t real license,” but said it gave Skybridge leverage with investors which have had trouble providing financing because of uncertainty of regulatory issues. Skybridge “can take that conditional license to Wall Street,” source said: “It demonstrates the validity of NGSO systems in Ka-band. You really don’t need a license until the day you launch.”