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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 ) ) STRATOS MOBILE NETWORKS (USA), LLC) ) Application for Authority to Provide U.S.-) Originated Fixed-to-Mobile Inmarsat-B and -M) File No. ITC-TAO-19980701-00916 Services to the U.S. Department of Defense) via Foreign Land earth Stations at Laurentides,) Quebec, Canada and Perth, Australia ) ORDER Adopted: February 26, 1999 Released: March 1, 1999 By the Chief, International Bureau: I. Introduction 1. In this Order, we grant a request by Stratos Mobile Networks (USA), LLC (Stratos) for special temporary authority (STA) to provide U.S.-originated fixed-to-mobile Inmarsat-B and -M services with Secure Telephone Unit (STU-III) capabilities to the U.S. Department of Defense (DOD) via the foreign land earth stations (LESs) at Laurentides, Canada and Perth, Australia. This authority is granted pending Commission action on Stratos' underlying application for permanent operating authority and will allow Stratos to satisfy DOD's urgent need for a critical service that is not available via any U.S. LESs. II. Background 2. Stratos is authorized under Section 214 of the Communications Act of 1934, as amended, to provide international maritime satellite services, international aeronautical satellite services, international land mobile satellite services, and international basic switched and private line services to various international points on both a facilities and resale basis. Stratos is a subsidiary of Stratos Wireless, Inc., a Canadian company that was recently designated the Canadian Signatory of Inmarsat. 3. Stratos' application states that this STA is warranted by unique circumstances. In letters filed in support of its request, officials from DOD indicate that there are no U.S. LESs, including COMSAT's, capable of providing DOD with the STU-III capabilities in the fixed-to-mobile direction that DOD requires. In particular, the different branches of the Department of Defense have an urgent need for Inmarsat-B and Inmarsat-M services with the following STU-III capabilities in the fixed-to-mobile direction: (1) Inmarsat-B 9.6 kilobits per second; (2) Inmarsat-M 4.8 kilobits per second, and (3) Inmarsat-mini-M 2.4 kilobits per second. DOD states that these STU-III capabilities "are an essential requirement in order to ensure the security of critical and sensitive U.S. Government communications." In a letter dated January 15, 1999 from Admiral Mayo, Chief of Naval Operations, he adds that the U.S. Navy requires the ability to send STU-III communications on a terminal-to-terminal basis and the ability to go secure in a rapid and transparent nature. He states that the Secure Inter-Working function (SIWF) protocol offered by Stratos in conjunction with the Canadian and Australian Land Earth Stations provides this capability while U.S. LESs cannot. Stratos also has informed us that the U.S. Navy again has reiterated its urgent need by next month for Inmarsat STU-III at 9.6 kilobits per second and they can only obtain this service from Stratos. 4. COMSAT filed a petition to deny Stratos' special temporary authority application, arguing the following five points: 1) the Inmarsat Act bars Stratos' request for an STA; 2) there is no "urgent need" for Stratos' to use foreign LESs; 3) Stratos has a contractual obligation with COMSAT, through its subsidiary IDB Mobile Communications, Inc., to route all U.S.-originated Inmarsat-M and -B traffic through COMSAT's LESs; 4) Stratos' use of STU-III technology is the subject of a patent infringement lawsuit; and 5) Stratos' STA request is unduly broad. As discussed below, we find that COMSAT's arguments are without merit, and the granting of Stratos' STA request will serve the public interest, pending action on Stratos application for permanent authority. III. Discussion 5. Stratos has provided ample evidence in support of its request for special temporary authority. The record clearly shows that DOD, and in particular the U.S. Navy, has an urgent need for the type of Inmarsat -B and -M STU-III services Stratos is requesting authority to provide. COMSAT states that it can provide an alternative type of STU-III service, but the record does not support this claim. Both DOD and the U.S. Navy have clearly stated that they need the type of STU-III capabilities offered by Stratos, and there is no evidence to support COMSAT's claim that it can offer a viable substitute. Instead, COMSAT offers a higher cost, slower speed service that DOD states does not meet its needs. Therefore, we find that Stratos has met its threshold burden of demonstrating the urgent need for grant of its request for special temporary authority. 6. We do not find persuasive COMSAT's arguments that the Maritime Satellite Act does not permit authorization of Stratos to provide these services, even on a temporary basis. When alternative U.S. facilities have not been available, the Commission has routinely issued authorizations for the provision of U.S.-originated Inmarsat services, including Inmarsat-B and -M, from foreign land earth stations operated by foreign Signatories of Inmarsat. Stratos has clearly demonstrated that alternative facilities are not available to meet DOD's needs. Therefore, the public interest would be served by granting Stratos' request for special temporary authority to use foreign LESs to provide the services DOD needs. 7. Finally, COMSAT argues that the STA request must be denied because of contractual obligations between COMSAT and Stratos, and because of a patent dispute between COMSAT and the U.S. Government. We agree with Stratos that COMSAT's arguments are outside of the scope of issues we should consider in this proceeding. Whether Stratos is barred from providing this service due to a contractual agreement between IDB Mobile and COMSAT is a matter best left to the courts to decide. COMSAT has already brought similar contractual claims against Stratos before the courts which have ruled in favor of Stratos. Likewise we will not consider the patent dispute within the context of this proceeding. 8. We emphasize, however, that our actions here are without prejudice to whatever action we might take on Stratos' underlying Section 214 application for permanent authority to provide U.S. originated Inmarsat -B and -M services from foreign earth stations. We note that Inmarsat will be privatized, as early as April 15, 1999, and many of COMSAT's arguments in the context of Stratos' Section 214 application might become moot. Also, our grant of special temporary authority is narrowly tailored to grant Stratos authority to serve only the needs of DOD, and therefore is not unduly broad as COMSAT claims. IV. Ordering Clauses 9. Accordingly, IT IS HEREBY CERTIFIED that the present and future public interest, convenience, and necessity require a grant of the present application. Therefore, IT IS ORDERED that application File No. ITC-TAO-19980701-00916 IS GRANTED, and Stratos is given special temporary authority to provide U.S.-originated fixed-to-mobile Inmarsat-B and -M services with STU-III capabilities to the U.S. Department of Defense (DOD) via the foreign land earth stations (LESs) at Laurentides, Canada and Perth, Australia. 10. IT IS FURTHER ORDERED that this STA is subject to change in any of its terms or to cancellation in its entirety at any time upon notice, but without hearing, if in the opinion of the Commission circumstances should so require. 11. IT IS FURTHER ORDERED that this STA will automatically expire should the underlying application for permanent authority be dismissed or denied; and is effective upon grant and will remain in effect until further order of the Commission, but not beyond November 22, 1999. 12. This Order is issued under Section 0.261 of the Commission's Rules 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 may be filed within 30 days of the date of public notice of this Order (see Section 1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Regina M. Keeney Chief, International Bureau