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                                Before the 
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554



In the Matter of      )
     )
LORAL SPACECOM CORP.  )     File No. 58-SAT-LA-97       
     )     
For Authority to Launch and Operate    )     
a Ground Spare Satellite         )


                          ORDER AND AUTHORIZATION


Adopted: May 15, 1998 Released: May 15, 1998


By the Chief, Satellite and Radiocommunication Division:

                             I.  INTRODUCTION

     1.    By this Order, we grant Loral SpaceCom Corp. ("Loral SpaceCom") authority
to launch and operate its ground spare.  This ground spare replaces Telstar 401, which
suffered a catastrophic on-orbit failure on January 11, 1997.  Under a grant of special
temporary authority to launch, test and operate Telstar 7,  Loral SpaceCom launched Telstar 7
(renamed Telstar 5) on May 24, 1997 and the satellite became operational on June 30, 1997. 
This grant will allow Loral SpaceCom to continue meeting the needs of those customers,
including broadcast networks and educational program providers, who had previously been
served by Telstar 401.

                              II.  BACKGROUND

     2.    In May 1996, the Bureau granted AT&T Corp. authority to construct, launch
and operate two hybrid C/Ku-band satellites and to construct a ground spare, Telstar 5. 
These satellites expanded AT&T's existing SKYNET fleet, which was comprised of two
hybrid C/Ku-band satellites, Telstars 401 and 402R, operating at 97ø and 89ø W.L.,
respectively.  On January 11, 1997, Telstar 401 suffered a catastrophic on-orbit failure.  Soon
after, on January 17, 1997, the International Bureau consented to the assignment of all
authorizations used by SKYNET Satellite Services from AT&T to Loral SpaceCom.  The
assignment was completed on March 14, 1997.  Consequently, Loral SpaceCom requested
authority to launch and operate the existing ground spare, Telstar 5, into the 97ø W.L. orbital
location in which Telstar 401 had been operating.  

      3.     Loral SpaceCom states that it will operate the satellite on both a common
carrier and non-common carrier basis.  Specifically, 50 percent of the C-band capacity will be
operated on a common carrier basis.  The rest of the C-band and all of the Ku-band capacity
will operate on a non-common carrier basis.  

      4.     While Telstar 5 is technically identical to the two satellites for which it was
authorized to act as a ground spare, Loral SpaceCom notes that it is not technically identical
to Telstar 401 which was launched in December 1993.  Nevertheless, Loral represents that it
will operate Telstar 5 using the same operational parameters as Telstar 401.  For example,
Telstar 5 will operate at an output power of 20 Watts in the C-band and a nominal 100 Watts
in the Ku-band, consistent with AT&T's Telstar 401 license.  Loral SpaceCom claims that
Telstar's operation should not result in unacceptable interference to adjacent satellites.  No
one opposed the Telstar 5 application.


                              III. DISCUSSION

      5.     It is Commission policy that given the high costs of building and operating
satellite space stations, there should be some assurance that operators will be able to continue
to serve their customers.  Moreover, Commission policy strongly favors continuity of service
and prompt reestablishment of service where capacity is lost due to unanticipated equipment
failures.  The Commission has therefore acted on applications for replacement satellites
without consolidating them into a processing round.  The policy in favor of continuity of
service underlies our decision in this case.

      6.     We must also look at the technical details of the replacement satellite in order
to ensure that the new satellite functions within the relevant parameters of the satellite being
replaced. Telstar 5 meets the power flux density ("PFD") requirements for downlink C-band
operations as defined in Section 25.208 of the Commission's rules.   Loral SpaceCom
acknowledges, however, that the spectral density downlink power level is 6.2 dB over the
limit in the Ku-band as defined in Section 25.212 of the Commission's rules.  We find that
the Ku-band spectral density can be brought into conformance with the rules either by
reducing the spectral density downlink power to the level consistent with Section 25.212 or
by coordinating the higher powers with adjacent satellites.  Beyond the spectral density
downlink power, the technical differences between Telstar 401 and Telstar 5 do not cause
Telstar 5 to exceed the technical parameters authorized for Telstar 401.   Moreover, we do
not find any other indication that the technological differences between Telstar 5 and the now
defunct Telstar 401 are likely to cause additional interference.  Thus, as a result of both
technical and policy analysis, we find that grant of the application to launch and operate an
emergency replacement satellite will serve the public interest, convenience, and necessity.

                           III. ORDERING CLAUSES

      7.     Accordingly, IT IS ORDERED that Application File No. 58-SAT-LA-97 IS
GRANTED, and Loral SpaceCom Corp. IS AUTHORIZED to launch and operate its ground
spare satellite, in accordance with the terms, conditions, and technical specifications set forth
in this authorization and in its application.

      8.     IT IS FURTHER ORDERED that the license term for the space station shall be
ten years from the grant of this Order.

      9.     IT IS FURTHER ORDERED that Loral SpaceCom will either reduce the
spectral density downlink power level or coordinate with adjacent satellites to bring the
downlink power spectral density into conformance with the Commission's rules. 

      10.    IT IS FURTHER ORDERED that Loral SpaceCom will prepare within 90 days
of the release of this Order, the necessary information for submission to the ITU to initiate
the advance publication, international coordination, and notification process of the Loral
SpaceCom satellite in accordance with the ITU Radio Regulations and for consultation in
accordance with Article XIV of the INTELSAT Agreement and Article 8 of the Inmarsat
Convention.  Upon completion of these consultations and notification by the Department of
State that the United States has fulfilled its obligations with respect to INTELSAT and
Inmarsat, no further action by this Commission regarding such consultations will be required. 
This authorization is subject to international coordination between Loral SpaceCom and any
affected non-U.S. licensed system in the authorized frequency bands.  We also remind Loral
SpaceCom that no protection from interference caused by radio stations authorized by other
Administrations is guaranteed unless coordination procedures are timely completed or, with
respect to individual Administrations, by successfully completing coordination agreements. 
Any radio station authorization for which coordination has not been completed may be subject
to additional terms and conditions as required to effect coordination with the frequency
assignment of other Administrations, 47 C.F.R. 25.111(b).

       11.   IT IS FURTHER ORDERED THAT Loral SpaceCom Corp.. is afforded thirty
days from the date of release of this order and authorization to decline this authorization as
conditioned.  Failure to respond within this period will constitute formal acceptance of the
authorization as conditioned.

      12.    This Order is issued pursuant to Section 0.261 of the Commission's rules on
delegated authority, 47 C.F.R.  0.261, and is effective upon adoption.  Petitions for
reconsideration under Section 1.106 or applications for review under Section 1.115 of the
Commission's rules, 47 C.F.R.  1.106, 1.115, may be filed within 30 days of the date of
the release of this order (see 47 C.F.R.  1.4(b)(2)).




      FEDERAL COMMUNICATIONS COMMISSION



      Thomas S. Tycz
      Chief, Satellite and Radiocommunication Division