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FCC PROPOSES SPECTRUM-SHARING BAND FOR KA-BAND OPERATORS

FCC is attempting to decide spectrum-sharing plan for nongeostationary satellite orbit (NGSO) and fixed satellite service (FSS) and to determine intraservice rules for new services. Commission in notice of proposed rulemaking Thurs. said new rules were expected to promote competition between existing satellite and terrestrial services through opportunities for new entrants, quicker licensing process, incentives for faster rollout of services using state-of-the-art technology. As expected (CD May 3 p3), FCC said it would license all 5 companies with NGSO FSS applications -- Boeing, Denali, Hughes, Skybridge, Teledesic and Virtual GEO -- to provide high-speed Internet, online access, data, video and telephony services in Ku-band. Hughes has filed 2 applications for licenses and spectrum. Comments are due by June 18, reply comments July 19.

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Significant amounts of radio spectrum have been given to NGSO-FSS proposals despite fact pending applications vary widely in requests for specific frequencies and quantity of spectrum. Therefore, Commission said, there’s no guarantee services can operate compatibly, so proceeding is needed to determine where applicants will operate within allocated spectrum by designing spectrum-sharing options that eventually will be adopted. However, FCC preference is to have outcome dictated by service market rather than regulatory decision. Spectrum allocated to NGSO FSS is limited, and portions of allocated spectrum aren’t interchangeable, in that each spectrum segment has significantly different allocation and sharing constraints. Spectrum-sharing plan will be most significant decision in proceeding, proposed rulemaking suggested.

Commission is offering 4 possible options for spectrum sharing: (1) Flexible band segmentation. (2) Dynamic band segmentation. (3) Avoidance of inline interference events. (4) Homogeneous constellations. FCC said those options would propose regulatory framework that wouldn’t favor any technology or operational methodology. Proposed options are structured to mitigate effects of varying regulatory and sharing constraints that are associated with allocation, it said. Interservice sharing arrangements in first R&O restrict certain types of NGSO FSS system operations to designated portions of NGSO FSS spectrum. All licensees should have access to portion of NGSO FSS spectrum to which those operations are limited, FCC said. Sub-bands in uplink spectrum allocation are 12.75-13.25 GHz, 13.75-14.0, 14.0- 14.5 GHz. Downlink applications include 10.7-11.7, 11.7-12.2, 12.2-12.7. Commission acknowledged technical challenges and spectrum inefficiencies associated with spectrum fragmentation.

FCC said it realized all authorized systems wouldn’t be built, but it had taken steps to prevent spectrum warehousing. It said its goal was to maximize spectrum availability to operational systems while incorporating sufficient flexibility to accommodate all applicants once they started operations. Comments are being taken on disposition of unused spectrum when systems aren’t timely implemented. Commission reserved right to adopt alternative engineering solution or band-sharing arrangement that might include hybrid solution.

Commission said it would adopt financial requirements policy. To date, financial requirements haven’t been basis for licensing, but in cases where potential applicants appear to have requirements that exceed available spectrum or orbital resources, FCC has invoked strict financial qualifications standard. Comments are being taken on what financial qualifications should be imposed. FCC wants applicants to prove they have assets or committed financing for NGSO FSS systems separate and apart from any funding necessary to construct and operate any other licensed satellite system. Licensing will continue to be for 10-year period. Licensees also must enter into noncontingent satellite manufacturing contract for system within one year of authorization, complete critical design review within 2 years, begin physical construction of satellites within 2-1/2 years and complete construction and launch within 3-1/2 years. Entire system must be launched and operational within 6 years of authorization.

Industry attorney close to Northpoint told us proposed rulemaking was “significant” because it showed FCC wasn’t “considering auction” and DBS industry had agreed to accept 10% level of more interference to accommodate Hughes in proceeding, “yet they are fighting Northpoint over interference levels” in same proceeding. “That proves issue is about competition, not interference.”

Northpoint is “grasping at straws” in suggesting that NPRM supports its position, Satellite Bcstg. & Communications Assn. (SBCA) said. SBCA said DBS industry had allowed maximum increase in signal unavailability “that it will tolerate” was 10% from satellite or terrestrial sources. Northpoint system exceeds that, it said.