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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 WB Holdings 1 LLC Application for Authority to Construct, Launch, and Operate a Ka-band Satellite System in the Fixed-Satellite Service ) ) ) ) ) ) ) File Nos. 128-SAT-P/LA-95 203-SAT-P/LA-95 ORDER AND AUTHORIZATION Adopted: January 30, 2001 Released: January 31, 2001 By the Chief, International Bureau: I.INTRODUCTION 1. By this Order, we modify WB Holdings 1 LLC's ("WB") license to launch and operate a satellite system in the geostationary-satellite orbit ("GSO") to provide fixed-satellite service ("FSS") in a portion of the Ka-band. In particular, we authorize WB to operate inter-satellite links ("ISLs") and we specify downlink operating frequencies for satellite-to-user transmissions. In addition, we assign milestone requirements for construction, launch, and operation of the satellite system. This will ensure that WB will make timely progress toward launching its satellites and making its advanced broadband communication services widely available to businesses and consumers. Failure by WB to meet these milestones will render this authorization null and void. II. BACKGROUND The WB License 2. In May 1997, as part of the first Ka-band processing round, the International Bureau ("Bureau") authorized WB's predecessor-in-interest, KaStar, to launch and operate a GSO satellite system to provide fixed-satellite services in the Ka-band. WB Holdings intends to use this system to provide electronic messaging, mailboxes, database access, multimedia bridging, software distribution, and voice communications. The system consists of two GSO FSS satellites at two orbital locations. The WB Authorization Order permits WB to operate one satellite in the 19.7-20.2 GHz and 29.5-30.0 GHz frequency bands and one satellite in the 28.35-28.60 GHz and 29.25-29.5 GHz frequency bands. WB's May 1997 Authorization Order did not include operating authority for inter-satellite link service, nor did it include additional downlink spectrum for its second satellite. Inter-Satellite Links 3. By employing ISLs, WB's satellites will be able to communicate directly with each other, which, according to WB, will extend the coverage region of satellites from different orbit locations. In its application, WB proposed to use ISLs in the 60.0 GHz frequency band. When we authorized the system in 1997, we deferred assigning ISL spectrum because this band was not suitable for the inter-satellite service. 1 Specifically, spectrum in the 60 GHz frequency band is shared on a co-equal basis with U.S. Government operations, including ongoing operations in the inter-satellite and Earth exploration-satellite services. The National Telecommunications and Information Administration ("NTIA") expressed concern regarding potential harmful interference between commercial ISL operations and these government services. In 1997, the United States presented proposals to the then-upcoming World Radiocommunication Conference ("WRC-97") concerning ISL operations in the 54.25-59.3 GHz and 64.0-71.0 GHz bands. These proposals were designed to allow us to assign ISLs to all first-round Ka-band system applicants requesting them, while addressing NTIA's interference concerns. In view of the uncertainty surrounding this issue, we deferred awarding ISL frequencies pending the outcome of WRC-97. 2. Among other actions relating to ISL spectrum, the WRC-97 allocated an additional band at 64.0-71.0 GHz for ISLs for both non-geostationary ("NGSO") and GSO systems, including those operating in the FSS. In June 1998, the International Bureau requested that each Ka-band FSS licensee requesting ISL spectrum update its ISL request in light of the actions taken at WRC-97. In addition, the Bureau asked each applicant to provide the Bureau with the specific frequency bands on which it proposes to operate its ISL service and to coordinate its proposed frequency bands with the other Ka-band licensees before it presented its proposal to the Commission. In response, the GSO FSS Ka-band licensees submitted a report in October 1998 (hereinafter the "GSO FSS Sharing Report"), concluding that ISLs of the licensed GSO FSS systems could share the same frequencies with few constraints. 3. At the same time, Teledesic, L.L.C. ("Teledesic"), the only NGSO licensee employing ISLs in the same frequency bands, also submitted a sharing report (hereinafter the "Teledesic Sharing Report"). The Teledesic Sharing Report concluded that its ISLs could operate on the same frequencies as the GSO system ISLs, except for possible mutual interference in the limited case of GSO networks using ISL links among satellites that are separated by 157 to 162 longitudinal degrees. 4. After reviewing the GSO FSS Sharing Report, the Bureau concluded that it needed additional information to support the report's findings. Accordingly, the Bureau sent a letter to the parties, including WB, requesting a description of the ISL arrangement, including which satellites at which licensed orbital locations will communicate with each other through the ISLs, the amount of ISL spectrum required by each satellite, and the justification for the amount of the ISL spectrum requested. In its letter, the Bureau noted that there are additional requests from applicants requesting ISL spectrum in the 40 GHz band and that several of the applicants in the second Ka-band processing round also proposed systems using ISLs. To maximize the number of systems that can operate in the bands available for ISLs, the Bureau said it will only authorize first round Ka-band licensees for the specific amount of ISL spectrum actually required for ISL operations. In response, WB requested use of the 65.0-71.0 GHz frequency band, preferably the 69.0- 71.0 GHz band, for its ISL operations. Service Downlink Bands 5. In addition to the remaining issue regarding its ISL frequencies, there is also an outstanding issue regarding WB's satellite-to-user frequencies for its second satellite. In its original application, WB requested 500 MHz of spectrum at 19.2-19.7 GHz for service downlink transmissions from its second satellite. The Ka-band arrangement in effect at that time, however, did not permit GSO FSS downlink operations in this band. Rather, it designated the 17.7 -18.8/19.7-20.2 GHz bands for this purpose. Because we authorized WB's first satellite to operate in the 19.7-20.2 GHz band, we stated that we would permit WB to operate the service downlinks for its second satellite in 500 megahertz in the 17.7-18.8 GHz band. Nevertheless, because WB had not applied for specific operating frequencies in this band, and because the Ka-band arrangement in effect at that time required GSO FSS operations in this band to be conducted on a co-primary basis with other services, we found it was premature to grant WB operating authority in any portion of this band. Rather, we directed WB to file a license modification application when it determined which 500 MHz it wished to use in the 17.7-18.8 GHz band. Since that time, the Commission has released the 18 GHz Report and Order, which allows GSO FSS operators to use the 18.3- 18.8 GHz and 19.7-20.2 GHz bands for downlink operations, subject to coordination with other co-primary services. Consequently, we are now in a position to assign the additional 500 MHz of downlink spectrum at 18.3-18.8 GHz for WB's second satellite. III.DISCUSSION A. Inter-Satellite Service 2. Given the sharing studies conducted by the licensees and the actions taken at WRC-97, we can now assign specific ISL spectrum to WB's system. First, the ISL sharing analyses performed by the GSO FSS licensees and Teledesic reasonably accommodate all of the first round licensees that requested ISLs. Second, the WRC-97 allocated WB's requested bands at 69.0-71.0 GHz for ISLs for both NGSO and GSO systems operating in the FSS. Recognizing that this band was allocated on a co-primary basis for various Government services, NTIA suggested that implementing the WRC-97 allocations domestically would better accommodate existing Government and proposed non-Government satellite systems. Therefore, the Commission conducted a rulemaking proceeding to implement the WRC-97 Final Acts with respect to the 50.2-71.0 GHz frequency bands, specifically designating the 65.0-71.0 GHz band segment for non- Government ISL use. 3. WB proposes to conduct ISL operations within the 69.0-71.0 GHz band based on its constellation deployment scenario. The WB constellation will consist of two satellites located at 73§ W.L. and 109.2§ W.L. with each satellite using 500 MHz spectrum for its ISL transmit channel and 500 MHz of spectrum for its ISL receive channel, a total of 1000 MHz of spectrum for ISL operations. The 500 MHz of spectrum per ISL channel will be required to support four 155 Mbps sub-channels using QPSK modulation. Therefore, the 1000 MHz of ISL spectrum requested by WB is reasonable given the transmission data rate and the modulation scheme employed by WB's system. Moreover, the use of dual polarization by WB's system implies that each satellite will be capable of reusing the same frequency assignments at different orbital locations. We will therefore authorize WB to conduct ISL operations on 1000 megahertz of spectrum at 69.0-70.0 GHz, subject to coordination among the licensees, and with U.S. Government (non- ISL) operations through NTIA's Interdepartment Radio Advisory Committee's Frequency Assignment Subcommittee. If WB prefers to operate on a different 1000 megahertz within its preferred 69.0-71.0 GHz band, it may file a request for license modification. D. Downlink Frequency Bands 5. Recently, the Commission adopted rules for the deployment of services in the 17.7-20.2 GHz band ("18 GHz band"). These rules are designed to reduce potential interference among the terrestrial and satellite services allocated in the band. The new band arrangement redesignates much of the spectrum that had been designated for co-primary satellite and terrestrial use as exclusive spectrum for either service. This should reduce the need to coordinate with other services. Under the band arrangement adopted in the 18 GHz Report and Order, the Commission retained the 19.7-20.2 GHz band for GSO FSS primary use, and split the 17.7-18.8 GHz band, originally shared on a co-primary basis by GSO FSS and the terrestrial fixed- service ("FS"), into three designations. Specifically, the Commission designated 500 megahertz to FS for primary use in the 17.7-18.3 GHz band, 280 megahertz for co-primary use by GSO FSS and FS in the 18.3- 18.58 GHz band, and 220 megahertz to GSO FSS for primary use in the 18.58-18.8 GHz band. In adopting this band arrangement, the Commission stated that a total 720 megahertz of unshared GSO FSS downlink spectrum (the 18.58-18.8 GHz band along with the 19.7-20.2 GHz band), plus the flexible rules that permit sharing of 280 megahertz at 18.3-18.58 GHz, will enable each system to have ample spectrum and allow multiple systems to operate. 6. In its original application, WB requested 500 MHz of downlink spectrum for its second satellite. At that time, we stated that we were not in a position to grant it operating authority in the 17.7- 18.8 GHz band. The 18 GHz Report and Order designated 500 megahertz of spectrum at 18.3-18.8 GHz for GSO FSS downlink. Consequently, on our own motion, we grant WB's authority to conduct its service downlink operations for its second satellite in the 18.3-18.8 GHz band in accordance with the 18 GHz Report and Order. 7. In addition, WB must coordinate with the U.S. Government systems operating in the 17.7-18.8 GHz band in accordance with footnote US 334 to the Table of Frequency Allocations. We note that Government GSO and NGSO FSS networks are presently operating in the 18.3-18.6 GHz and 19.7-20.2 GHz bands, and plan to operate in accordance with the power flux-density limits contained in the current ITU Radio Regulations. Additionally, we note that WB must also comply with footnote US 255 to the Table of Frequency Allocations which contains power flux-density limits to protect the Earth exploration-satellite service (passive) for the 18.6-18.8 GHz band. C. Milestones 8. When we granted WB its license in 1997, we were not in a position to assign it to a specific range of ISL frequencies. Consequently, we did not require WB to begin building its satellite system by including implementation milestones in its license. We did, however, state that we would impose a strict milestone schedule once ISL frequencies were authorized. 9. In authorizing ISL frequencies, we are now in a position to impose system implementation milestones as a condition of WB's modified license. Requiring licensees to adhere to implementation deadlines prevents the valuable orbit-spectrum resource from being held indefinitely by licensees who are unable or unwilling to proceed with their plans. Specifically, Section 25.145(f) of the Commission's rules requires Ka-band GSO FSS licensees "[1] to begin construction of its first satellite within one year of grant, [2] to begin construction of the remainder within two years of grant, [3] to launch at least one satellite into each of its assigned orbit locations within five years of grant, and [4] to launch the remainder of its satellites by the date required by the International Telecommunication Union [ITU] to assure international recognition and protection of those satellites." Failure to meet any of these construction milestones will render those satellite authorizations null and void. 10. The dates by which the WB licensed satellites must be "brought into use" to protect the date priority of the U.S. ITU filings for its service links are June 2005 and October 2006. We recognize that, in this case, applying this ITU "bringing into use" date to the last implementation milestone has the incongruous result of our rules requiring WB to launch a satellite into the 109.2§ W.L. orbit location by January 2006, i.e., after the date WB is required to bring its satellite location "into use" to protect the date priority of the U.S. ITU filings (i.e., June 2005). To address this misalignment, we require WB to launch its satellite into the 109.2§ W.L. orbit location, which "brings into use" all of the frequency assignments it plans to operate at that orbit location, by the ITU "bringing into use" date. This will protect the United States' and thus, WB's ability to coordinate and gain international recognition for the satellites at this assigned orbit location. Moreover, we do not anticipate that meeting this milestone will present undue difficulties. First, it is consistent with WB business plan. Second, WB has had almost four years since we granted its license in May 1997 to refine its system design for everything except its ISLs. Third, the launch milestone imposed here still provides WB with more than four years to incorporate ISLs into its system and launch the satellites. Further, in light of the actions taken at WRC-97 regarding ISLs and licensees' 1998 studies demonstrating that they can share ISL spectrum, we expect that WB will have already made significant progress in incorporating its requested ISLs frequencies into its system. XI.CONCLUSION 12. Accordingly, upon review, we modify WB's Ka-band system license to include ISL frequencies and additional downlink frequencies. In addition, we assign milestone requirements for the construction, launch and operation of the satellite system. These actions provide WB with the opportunity to provide a variety of advanced broadband communications services to businesses and consumers. V. ORDERING CLAUSES 13. Accordingly, IT IS ORDERED that the license granted to WB Holdings 1 LLC by Order and Authorization, 13 FCC Rcd 1366 (1997) IS MODIFIED to assign the 69.0-70.0 GHz bands for inter-satellite link operations, in accordance with Amendment of Part 2 of the Commission's Rules to Allocate Additional Spectrum to the Inter-Satellite, Fixed, and Mobile Services and to Permit Unlicensed Devices to Use Certain Segments in the 50.2-50.4 GHz and 51.4-71.0 GHz Bands, ET Docket No. 99-261, Report and Order, FCC 00-442 (rel. December 22, 2000). 14. IT IS FURTHER ORDERED that WB Holdings 1 LLC must coordinate its inter-satellite link operations in accordance with the report submitted to the Commission entitled, "Sharing of Various Frequency Bands Allocated to the Inter-Satellite Service," (October 9, 1998) and "Interference Between Teledesic and GSO Inter-Satellite Links" (October 9, 1998), with the other Ka-band licensees that are included in the reference reports. 15. IT IS FURTHER ORDERED that WB Holding 1 LLC shall coordinate the inter-satellite link operations in the 69.0-70.0 GHz bands through NTIA's Interdepartment Radio Advisory Committee's Frequency Assignment Subcommittee. 16. IT IS FURTHER ORDERED that WB Holdings 1 LLC is authorized provide its downlink operations for its second satellite in the 18.3-18.8 GHz band in accordance with the Report and Order, In the Matter of Redesignation of the 17.7-19.7 GHz Frequency Band, Blanket Licensing of Satellite Earth Stations in the 17.7-20.2 GHz and 27.5-30.0 GHz Frequency Bands, and the Allocation of Additional Spectrum in the 17.3-17.8 GHz and 24.75-25.25 GHz Frequency Bands for Broadcast Satellite Use, Report and Order, 15 FCC Rcd 13430 (2000). 17. IT IS FURTHER ORDERED that WB Holdings 1 LLC must coordinate all of its Ka-band downlink operations with the U.S. government systems in accordance with footnote US 334 to the Table of Frequency Allocations, 47 C.F.R.  2.106. 18. IT IS FURTHER ORDERED that WB Holdings 1 LLC's authorization shall become NULL and VOID with no further action on the Commission's part in the event the space stations are not constructed, launched, and placed into operation in accordance with the technical parameters and terms and conditions of the authorization by the following dates: Commence Construction First Satellite January 2002 Remaining Satellites January 2003 Launch and Operate Satellite licensed at 109.2 W.L. June 25, 2005 Satellite licensed at 73 W.L. October 7, 2006 19. IT IS FURTHER ORDERED that WB Holdings 1 LLC is subject to all terms and conditions in its Authorization Order, 13 FCC Rcd 1366 (1997). 20. IT IS FURTHER ORDERED that the license term for each space station is ten years and that each license will begin to run on the date WB Holdings 1 LLC certifies to the Commission that a satellite has been successfully placed into orbit and the operations fully conform to the terms and conditions of this authorization. 21. IT IS FURTHER ORDERED that WB Holdings 1 LLC is afforded thirty days from the date of the release of this order and authorization to decline this authorization as conditioned. Failure to respond within that period will constitute formal acceptance of the authorization as conditioned. 22. This Order is issued pursuant to Section 0.261 of the Commission's rule on delegations of authority, 47 C.F.R.  0.261 and is effective upon release. 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 public notice of this Order (see 47 C.F.R.  1.4(b)(2)). FEDERAL COMMUNICATIONS COMMISSION Donald Abelson Chief, International Bureau