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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Direct Broadcasting Satellite ) Corporation ) File No. 14-SAT-STA-98 ) Application for Special Temporary ) Authority to Operate a Direct ) Broadcast Satellite Over Channels ) 1-21 (odd) and 23-32 (odd and even) ) at 61.5O W.L. ) MEMORANDUM OPINION AND ORDER Adopted: March 20, 1998 Released: March 23, 1998 By the Chief, International Bureau: I. INTRODUCTION 1. By this order we grant the request of Direct Broadcasting Satellite Corporation (DBSC), a wholly-owned subsidiary of EchoStar Communications Corporation, for Special Temporary Authority (STA) to operate a direct broadcast satellite over channels 1-21 (odd) and 22- 32 (odd and even) at 61.50 W.L. DBSC is assigned even numbered channels 2-22 at orbital positions 61.50 W.L. The 11 odd-numbered channels 1-21 have been assigned to R/L DBS and the 8 even and odd numbered channels 25-32 have been assigned to Dominion Video Satellite, Inc. (Dominion). The remaining two channels, 23 and 24, are unassigned. Granting this STA will permit DBSC to operate all 32 transponders on its satellite for 180 days or until either Dominion or R/L DBS Satellite Corporation receives a license to begin service at the 61.50 W.L. orbital location or either of the two unassigned channels are assigned. II. BACKGROUND 2. In 1989, DBSC was authorized to construct a direct broadcast satellite (DBS) system consisting of two or more satellites delivering 11 channels of DBS service to each half of the continental United States, or from one or more satellites delivering 11 channels of DBS service to the entire continental United States. DBSC was later assigned 11 channels numbered 2-22 (even) at 61.50 W.L. The Commission also assigned 11 channels to R/L DBS Satellite Corporation, Inc. (R/L DBS) numbered 1-21 (odd) and 8 consecutive channels to Dominion numbered 25-32 at that location. Neither R/L DBS nor Dominion is currently using their assigned channels at the 61.50 W.L. location. Channels 23 and 24 remain unassigned. 3. In 1995, the Commission granted DBSC an extension of time to construct, launch and operate its system. In August 1996, the Commission approved the merger of DBSC with EchoStar Communications Corporation's wholly-owned subsidiary, DBSC, which is incorporated in Colorado. In September 1997, the Commission granted DBSC authority to launch its DBSC-I space station into the 61.50 W.L. nominal orbital location. At the same time, the Commission granted DBSC's request to make modifications to its satellite design and granted temporary authority to test the satellite on all 32 channels at the 61.50 W.L. orbital location for eight weeks. 4. In its application, DBSC requests special temporary authority to operate its satellite over channels 1-21 (odd) and 23-32 (odd and even) at the 61.50 W.L. orbital location in addition to its assigned channels. DBSC asserts that the Commission's policies in favor of using available spectrum warrant granting the STA request. DBSC states that without the STA, 21 channels of DBS spectrum would remain unused. 5. DBSC asserts that it will offer only pay-per-view programming on its temporary additional channels. DBSC states that offering this type of programming will facilitate ceasing transmissions on the additional channels immediately upon notice that Dominion or R/L DBS plans to launch a satellite into that location. Further, DBSC argues that because of the temporary nature of the pay-per-view service it will offer on these additional channels, DBSC will be able to terminate service at any time without significant impact to Echostar's subscribers. 6. DBSC contends that grant of the STA will serve the public interest by increasing viewing options for Echostar's current and future subscribers, and it states that operation of its satellite over all channels at the 61.50 W.L. orbital location will not cause harmful interference to any other licensed satellites since its operation will comply with the International Telecommunication Union's Plan for this service. III. DISCUSSION 7. We find that grant of DBSC's request for special temporary authority will enable it to provide DBS service on currently unused channels, thus furthering the Commission's objective to make efficient use of available spectrum. Authorizing DBSC to make use of all 32 transponders at the 61.50 W.L. orbital location for a temporary period serves the public interest because it allows EchoStar to provide immediate expanded service to its customers. Use of these channels will also foster competition in the multichannel video program distribution market because the additional revenue from the pay-per-view options will allow DBSC to offer its customers more options in their DBS packages. This grant of temporary authority is conditioned on DBSC not causing harmful interference to any other authorized satellite operations and on DBSC terminating its use of the 21 channels not assigned to it immediately upon either expiration of its STA, or as soon as Dominion or R/L DBS is licensed to provide service from the 61.50 W.L. orbital location. 8. In granting this application, we recognize that the Commission has previously denied a similar request by Echostar. That case, however, differs from the instant application. In that case, we denied EchoStar's request for an extension of its STA to operate on channels 23, 25, 27, 29, and 31 at the 119 0 W.L. orbital location based, in part, on the belief that the reduction in service to subscribers that would result when the STA expired would likely cause consumer confusion. Unlike the previous situation where EchoStar needed significant time to shut down its temporary service, in this case DBSC contends that shutting down its temporary service will not involve complicated changes because EchoStar will simply cease to make available the pay-per-view options from the requested channels. 9. In order to avoid confusion or disruption from the termination of service from these additional 21 channels, DBSC has offered to provide written notice to its customers that the additional programming is being provided on a temporary basis and will terminate upon expiration of the STA. DBSC has suggested this notice: "Pay-per-view channels ___, ___ and ___ are only temporarily available. The DISH Network's regulatory authority to provide these channels will expire on ________ [180 days from day of grant]. In addition, the DISH Network may be required to cease transmitting programming over these channels earlier than that date. Therefore, those channels will cease to be available to you on or before ________ without prior notice. If you have any questions, please call us toll-free at 1-800-333-DISH." We find this language sufficient to avoid consumer confusion. Therefore, DBSC must provide this warning to all customers receiving the additional programming from 61.50 W.L. 10. Under these specific circumstances and under the conditions discussed, we find that grant of DBSC's request will serve the public interest, convenience and necessity. We therefore grant DBSC special temporary authority to operate on channels 1-21 (odd) and 23-32 (odd and even), at the 61.50 W.L. orbital location, for a period of 180 days. IV. ORDERING CLAUSES 11. Accordingly, pursuant to authority delegated by Section 0.261 of the Commission's Rules, 47 C.F.R.  0.261, IT IS ORDERED that Application File No. 14-SAT-STA-98 IS GRANTED and that Direct Broadcasting Satellite Corporation IS AUTHORIZED to operate on channels 1-21 (odd) and 23-32 (odd and even) at the 61.50 W.L. orbital location for a period of 180 days from the date of this Order, subject to the conditions stated below. 12. IT IS FURTHER ORDERED that Direct Broadcasting Satellite Corporation shall cease operations on channels 1-21 (odd) and 23-32 (odd and even) at the 61.50 W.L. orbital location immediately upon the sooner of: (1) expiration of this special temporary authorization; or, with respect to the relevant channels, (2) receipt of a license by Dominion Video Satellite, Inc. or R/L DBS Satellite Corporation to begin service from the 61.5 0 W.L. orbital location or (3) assignment of the two unassigned channels (23 and 24). 13. IT IS FURTHER ORDERED that Direct Broadcasting Satellite Corporation's use of these 21 additional channels at the 61.50 W.L. orbital location shall cause no harmful interference to any other lawfully operated radio station and that Direct Broadcasting Satellite Corporation shall cease operation using those channels immediately upon notification of such interference. 14. IT IS FURTHER ORDERED that Direct Broadcasting Satellite Corporation will provide written notice, consisting of language identical or similar to the warning described in its application, to its customers that such programming is being provided on a temporary basis and will terminate upon expiration of the STA, or as soon as either Dominion or R/L DBS is licensed to operate at the 61.50 W.L. orbital location. FEDERAL COMMUNICATIONS COMMISSION Thomas S. Tycz Chief, Satellite and Radiocommunication Division International Bureau