Boeing NGSO Applications Transfers Face Opposition
Pointing to FCC Section 25.159(b) rules aimed at preventing spectrum speculation, non-geostationary orbit satellite constellation operators oppose Boeing's ask to substitute OneWeb Chairman Greg Wyler and his SOM1101 for two of its pending NGSO applications (see 1801020007). A satellite lawyer said the FCC likely will dispose of the Boeing petitions quickly as it tries to move on the pending applications, with the agency highly unlikely to go along given how approval goes against rules and implications for other proceedings that involve attributable interest issues, like spectrum auctions. Boeing and Wyler didn't comment Tuesday. The company argued Wyler doesn't have attributable interest in OneWeb (see 1801020007).
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Allowing Wyler's SOM1101 to substitute for Boeing would reward speculative filings, ramp up uncertainty for other processing round applications and jeopardize future NGSO investment, O3b said in a petition to deny Monday. Waiver "would reward precisely the type of behavior" the rule set out to prevent, it said. It said since Boeing isn't pursuing the underlying NGSO applications, its V-band and Ka-band applications should be denied. SpaceX said bypassing the"crystal clear prohibition" against one party with interest in multiple NGSO systems in the same band also raises questions about Boeing's future benefit in the form of implied satellite sales and launch and advisory services. OneWeb and Airbus are in joint venture for satellite production for OneWeb's low earth orbit constellation (see 1706270064).
Wyler's fiduciary duties at OneWeb would presumably preclude him from competing with it, meaning such a waiver wouldn't benefit competition, SpaceX said. It said before any substantive consideration of the waivers, the FCC should fully investigate the extent of compensation between Boeing and OneWeb and require Wyler to state whether the Boeing systems would compete or cooperate with OneWeb. Iridium said if the FCC allows the Wyler substitutions, it should also remove Boeing's applications from the current processing rounds because it constitutes a major amendment filed after applicable cut-off dates. Telesat Canada said the applicants haven't explained why the agency should waive its policies prohibiting multiple ownership.
Section 25.159(b) prohibits NGSO applicants from applying for another system in the same band. O3b said it's clear Wyler holds a controlling interest in OneWeb and in SOM1101, and OneWeb's licensed but unbuilt Ka-band NGSO system and its pending V-band NGSO application bar SOM1101 from either Ka- or V-band networks.
Petitioners disagreed with Boeing/SOM1101 arguments the Section 1.1110(c)(2) rule on spectrum auctions has a different definition of controlling interest. That section doesn't apply in contexts outside of spectrum auctions since it's not cross referenced in Section 25.159, O3b said. The company said it's obvious Wyler has de facto OneWeb control since he often addresses the media on its behalf and testified to the Senate Commerce Committee last year on behalf of it (see 1710250025).
SOM1101 last month in docket 14-177 urged the agency to end its prohibition satellite end-user equipment in the 37.5-40 GHz band. It gave a Hanover, New Hampshire, post office box as SOM1101's address and named Ryan Gardner as manager. Gardner couldn't be reached Tuesday.