PEGASUS SEARCHES FOR KA-BAND LICENSE AFTER FCC CRACKDOWN
Pegasus will keep “pushing” to secure Ka-band orbital slots following FCC crackdown that upheld earlier decisions to revoke licenses of PanAmSat and Morning Star along with Commission refusal to grant Loral and VisionStar extra time to meet milestones (CD May 29 p4), attorney Bruce Jacobs told us: “We don’t know what the Commission has in store for us, but we need 2 slots.” He said company was hoping for “some good Conus slots,” but Commission order “didn’t shake one loose.” Pegasus, perhaps most active of 2nd-round applicants at Commission, is one of several companies trying to obtain prime orbital slot from first round licensee that failed to meet milestones. “Clearing out the underbrush will open up” 2nd round, Pegasus Vp Cheryl Crate said: “We don’t yet know what it all means… It’s a very positive thing that they have taken action.”
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PanAmSat attorney Henry Goldberg disagreed with FCC decision, based on historical precedent. “I'm still not convinced,” he said: “The FCC still hasn’t said anything that makes us feel any easier about the distinctions they have made in this case about meeting milestones when compared to other cases. They are drawing some very fine lines to reach some very different results. It’s one of those things that you scratch your head about.” Order will make companies that are “interested” in Ka-band “seriously assess what they are going to do with their business plans,” Goldberg said: “There ought to be a lot of soul-searching going on now.”
Several issues remain to be resolved, Jacobs and Crate said. Among them are transfers of licenses held by VisionStar, Motorola and NetSat 28 where action by Commission still is pending. VisionStar is seeking to transfer control of its license to EchoStar, Motorola is trying to work out similar arrangement with Teledesic and NetSat 28 has agreed to allow EMS to take ownership of its license. Celsast, KaStarCom, Pacific Century Group, Pegasus and TRW and Hughes filed opposition to Motorola transfer.
Crate wants FCC to “strictly enforce” transfer of control policies and “more actively investigate” whether Loral and Orion can realistically meet milestones by deadline next year. “If they can’t meet them, why wait, the Commission can take action now,” Jacobs said. “No need to wait until they lapse… Spectrum is too scarce a resource.” Jacobs said parties that received licenses by default would need time to construct satellites before ITU deadline in 2004.
Morning Star and PanAmSat slots that have opened up are “not good slots” for Pegasus, Jacobs complained. Pegasus set its sights on companies with multiple Conus slots such as Motorola (4), Loral (4) EchoStar (4 with interest in 2 others) and Hughes- PanAmSat (3). Jacobs wants Commission to reinstate rule that prohibited companies from owning more than 2 slots before first- round licenses were granted in May 1997. Jacobs said 2nd-round slots should be given to companies that would be “more aggressive” in using slots.
Goldberg said Commission would be wrong to take away slots under those conditions, at least in case of PanAmSat and Hughes. “These slots were received when Hughes and PanAmSat were separate companies,” he said: “When we filed our applications no one said we would have to give up” Ka-band spectrum. “Pegasus has come along years after standards were set.”