NORTHPOINT DETAILS DBS PLANS IN LATEST FCC FILING
Northpoint “has the money,” to launch satellites and its latest filing at FCC (CD March 22 p3) wasn’t ruse to push licensing process further without auction as some rivals have suggested privately, CEO Sophia Collier said Fri. FCC doesn’t use financial considerations in licensing applicants, Northpoint filing said, just milestones. Under Commission rules, Northpoint is under no obligation to disclose financial agreements before license is approved, filing said. It believes new business model puts it in better position to compete against EchoStar and DirecTV. Ironically, latest Northpoint decision may help EchoStar acquisition of DirecTV because revamped business model could give Hill leaders viable competitor they're seeking to preserve competition, particularly in rural areas, industry officials said. Northpoint also said in application that, as company providing global service, it was exempt from spectrum auction. Industry source disagreed: “They are still a terrestrial company trying to use satellite spectrum.”
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Northpoint’s Compass Systems, Inc. (CSI) Fixed Service Satellites (FSS) Southpoint 1 and Southpoint 2 would provide service to U.S., including Hawaii and Alaska, it said in detailing specific plans for network, and will offer global service to Canada, Mexico and Asia-Pacific Region. Both western orbital slots sought by Northpoint at 157 W and 166 W originally were assigned by ITU as part of its Region 2 broadcast satellite service (BSS) plan. Each satellite would have 32 DBS channels. No DBS licensee has provided service from those orbital slots and CSI is first to seek access to them since they became available several years ago, Northpoint said. “Thus no party will be prejudiced” by interim assignment, it said.
Satellites will utilize 48 (24 MHz) transponders to generate fixed beams and steerable spot beams. Southpoint 1 would serve Alaska, Hawaii and continental U.S. except for East Coast, while Southpoint 2 would cover continental U.S. except East Coast, Canada and Mexico. Steerable beams of each satellite would provide services to Region 3, which includes Australia, New Zealand, Papua New Guinea and other population centers, company said. Both satellites will use service links in 12.2-12.7 GHz band and feeder links in 17.3- 17.8 GHz band. They will use return link from Asia Pacific Region in 12-14.5 GHz band that will enable transmissions originating from Region 3 to be delivered to Region 2.
Commission can reduce power of local cable franchises by allowing Northpoint service, filing said, causing downward pressure on pricing. CSI said it also would offer: (1) New national distribution platform to local and national content producers. (2) Individualized services, to every community nationwide, such as local TV and broadband Internet access via network of terrestrial antennas that would use same DBS spectrum as CSI satellites to beam cable networks and superstations. Integrated terrestrial-satellite system is highly efficient and will increase capacity of DBS spectrum, it said.
Northpoint suggested milestones of one year to acquire construction contract, 4 years to complete first satellite, 6 years for satellite to become operational. If Commission divides ancillary terrestrial DBS authority among several terrestrial licensees, potential to gain true competitor to combined EchoStar-DirecTV will be lost, filing said. “Individual companies may be able to obtain blocks of geographical area terrestrial licenses, [but] these licensees nevertheless will be unable to achieve sufficient economies of scale. At best they will be regional operators.”
Northpoint would become first minority/female-owned satellite system in U.S. if FCC issued license. Privately owned company is headed by CEO Sophia Collier, and several executives are female and African-American, including Vp Toni Bush. Technically, Northpoint would be eligible for membership in Satellite Bcstg. & Communications Assn. (SBCA), lobbying organization for industry rivals.