FCC denied motion by Litigation Recovery Trust (LRT) requesting s...
FCC denied motion by Litigation Recovery Trust (LRT) requesting stay of Commission’s authorization issued Dec. 18 that allowed Lockheed Martin Global Telecommunications and Comsat, together with Telenor, to assign various satellite earth, private land mobile radio and experimental licences…
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and Sec. 214 authorizations held by Comsat to Telenor. Commission said LRT hadn’t met legal standards for stay based on 4-prong test that warrants stay. LRT said Commission exceeded its jurisdiction by: (1) Failing to present any interpretation of Act that would establish its authority to authorize assignment of licenses to company that is 79% owned and controlled by foreign govt. (2) Violated notice and comment requirements of Administrative Procedure Act (APA) by modifying existing rule. (3) Acted arbitrarily and capriciously by failing to present any rationale for its departure from established Commission policy. LRT also said it had new evidence on contract recently secured by Telenor to provide communications services to NATO. LRT said Telenor underbid incumbent carrier by $8 million and bid raised questions of subsidization of Telenor’s business operation by Norway. Commission said LRT didn’t provide sufficient evidence to warrant further investigation. It also said its decision was within its jurisdiction because Communications Act prohibits grant of licenses to any corporation directly or indirectly controlled by any other corporation of which more than 25% of capital stock was owned by foreign govt. FCC said it made no such finding. It said it found no merit in LRT’s claim that agency had violated notice and comment requirements of APA. Commission said allegation by LRT on contract that Telenor obtained through bidding process to provide NATO communications services wasn’t sufficient to indicate LRT would succeed in reconsideration proceeding. Commission also said LRT wouldn’t suffer irreparable harm in absence of stay, but grant of stay would cause harm to both Telenor and Comsat.