ECHOSTAR LOSES WESTERN ORBITAL SLOT
FCC denied EchoStar extension of time to launch DBS service at 175 degrees W. orbit location. Permits for 175 W. were issued in 1989 and no progress has been made toward implementation of service, and authorizations to operate 22 channels were cancelled, Commission said, and spectrum will be reassigned. EchoStar had requested extension of operation milestones until Dec., but were required to start DBS operations by Aug. 15, 1999, and Nov. 30, 1998. In 1993, Commission determined EchoStar met first due diligence requirement and assigned company 22 channels 175 W. Original deadline to begin operations was Aug. 1995. EchoStar can appeal decision. It’s one of first times major DBS company has been denied “routine extension,” industry source said: “I don’t know what you could write into it, but it could portend bad things to come” for EchoStar. Industry lawyer said decision shows Commission “is tightening up” on milestones.
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EchoStar said extension was needed because of circumstances beyond its control, particularly technical problems with EchoStar 4 that had been scheduled to provide full-Conus service at 119 degrees W. Despite launching 2 other satellites, EchoStar also argued unsuccessfully must- carry rules required company to divert its attention from launch of satellite at 175 degrees W. to meeting legal mandate. EchoStar also said 175 degrees W. orbital location would allow it to serve many Pacific Rim countries, including Japan and parts of Australia and China, but until it received authority from foreign govts., it would lack revenue to operate successful DBS service.
FCC said EchoStar admitted it didn’t take any steps toward initiation of service at 175 degrees W. Technical difficulties arising from EchoStar 4 didn’t impede ability to move forward with construction of satellite system. Instead, EchoStar elected to defer construction of satellite for 175 degrees W. in favor of full-Conus location. Compliance with must-carry rules doesn’t justify additional time to comply with operation milestones, Commission said. EchoStar also hasn’t attempted to obtain landing rights from Pacific Rim countries, FCC said. EchoStar’s failure to make progress during 10 years in which it has held channel assignments at 175 degrees W. creates doubt about extent to which it will implement service if extension were granted.
Meanwhile FCC did approve assignment for 2 EchoStar channels at western orbit location after finding company met due diligence obligation. EchoStar must select location and advise Commission within 10 days. EchoStar must also submit revised construction milestone schedule showing specific dates for stages of construction and payments for satellite systems. Company has 3 years to begin service.