FCC WILL OVERHAUL SATELLITE LICENSING SYSTEM
FCC proposed plans to revamp satellite licensing system in action at agenda meeting Thurs. International Bureau (IB) said new system was response to increased global competition and need to change what had become long and cumbersome process. New rules should help expedite licensing process and reduce costs associated with regulatory delay, FCC said. Many satellite operators have complained about long wait -- sometimes more than 5 years -- to receive licenses in market that’s rapidly changing. Process has been particularly “troublesome” for companies attempting to launch new services, industry attorney said. Commission said proposed reforms would promote spectrum efficiency and technological innovation.
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“It’s about time they decided to do something about the process,” Coudert Bros. analyst Timothy Logue said: “You can’t take 3 to 5 years to get license and still have an industry that provides services that the American public wants. The 2 proposals look like reasonable alternatives, but we have to look at specifics.” Settling licensing and interference issues has long been “touchy subject” at FCC, industry official said: “No one really seems to have a grip on the best way to handle these issues. Northpoint is a great example. Despite months of promises, we're still waiting for an answer.”
FCC should “re-examine licensing approaches,” Comr. Abernathy said. She said answers wouldn’t be easy to find, but “solutions are vital” to U.S. satellite companies’ “maintaining competitive edge.” She said current system “appears to put our interests at risk if the satellite licensing process drags on too long or creates too much uncertainty.” Citing case of David Otten, who waited 10 years for Celsat license, Abernathy said Commission shouldn’t expect all applicants “to have such patience and tenacity” to get license: “It is unclear exactly what changes to our licensing system will yield the greatest efficiencies and benefits to the public.”
New Commission plan also would address recurring issue of interference by applicants seeking to operate satellite systems in same band. Currently, applicants seeking to use service in same band are considered together in processing rounds. Commission also uses cut-off date for other applicants to file mutually exclusive applications that are considered along with lead applications, IB Deputy Chief Rod Porter said. To resolve interference issues, Commission also gives applicants opportunity to negotiate settlement. Negotiations often delay licensing by months, Commission said.
Under proposed rulemaking, Commission is giving choice of 2 solutions that includes replacing or modifying processing round. First proposes to replace processing rounds with new procedure called “first-come, first-served.” That proposal would consider first application for specific spectrum and/or orbit location. Applications would be placed in queue according to date of filing. If Commission can’t or doesn’t grant lead application, it would be dismissed and next application in queue would be considered, Porter said. Process would continue until qualified applicant was found. Purpose of proposal is to expedite satellite licensing by avoiding need to consider multiple applications together or for applicants to resolve complex issues among themselves.
Second proposal would modify current processing round approach. FCC would like to establish 60-day deadline for completing negotiations. Rulemaking also seeks comment on criteria to select applicants that can’t reach agreements within 60-day limit and proposal to equally divide spectrum among qualified applicants in spectrum round.
Other proposals would attempt to streamline licensing process with several reforms of current procedure, including: (1) Eliminating financial qualifications. (2) Strengthening milestone requirements. (3) Eliminating satellite antitrafficking rule. (4) Streamlining replacement satellite application. (5) Making electronic filing mandatory. Commission also would like to expand technical information for satellite applicants.
“The overall Commission initiative is a very good thing, but I'm concerned about some of the proposals,” SES Americom attorney Phil Spector said: “First-come, first-served doesn’t strike me as a good idea.” He said just because applicant filed first didn’t mean it was “most qualified.” Spector also opposes elimination of financial requirements. He said FCC had seen many “unqualified applicants receive licenses and not have money to build systems.”
Satellite Industry Assn. doesn’t have “preferred position,” Exec. Dir. Richard DalBello said, but NPRM isn’t “unexpected.” Representatives of satellite industry have held 14 meetings over last year considering “alternatives for regulatory reform,” he said. “We worked hard on this. It’s going to take us a little while to figure out a response.” Aerospace Industries Assn. Mgr..-Space Operations David Logsdon said many in satellite industry “feel as though system is broken” and “taking a fresh look at process won’t hurt.”