NEWSReport No. DC- 2660 ACTION IN DOCKET CASE October 14, 1994 COMMISSION ADOPTS FINAL RULES AND POLICIES FOR "BIG LEOS" (CC DOCKET 92-166) The Commission has adopted final rules for the licensing and operation of low earth orbit mobile satellite systems above 1 GHz ("Big LEOs") to provide a variety of voice and data mobile services worldwide. The systems will operate in the 1610-1626.5/2483.5-2500 MHz frequency bands. Big LEO service can offer an almost limitless number of services, including ubiquitous voice and data mobile services, position location services, search and rescue communications, disaster management communications, environmental monitoring, paging services, facsimile transmission services, cargo tracking, and industrial monitoring and control. This service will help meet the demand for a seamless, nationwide, and eventually global communications system that is available to all and that can offer a wide range of voice and data telecommunications services. In addition to enhancing the competitive market for mobile telecommunications services in areas served by terrestrial mobile services, this new mobile satellite service will offer Americans in rural areas that are not otherwise linked to the communications infrastructure immediate access to a feature-rich communications network. Moreover, Big LEO systems can extend these benefits throughout the world, and can provide those countries that have not been able to develop a nationwide communications service with an "instant" global and national telecommunications infrastructure. This network can be used to provide both basic and emergency communications virtually anywhere in the world. Operation outside the United States, however, will be subject to the regulatory requirements of the countries in which these systems may seek to operate. The United States has led the world in developing and implementing satellite technology and the Big LEO service represents an opportunity for the United States to continue its leadership role. The Big LEO service has the potential to stimulate enormous economic growth both here and abroad. It is potentially a multi-billion dollar industry, with opportunities for economic growth in a variety of markets and sub-markets. Estimated costs to construct the space segments range from $97 million to over $2 billion each. Ground segments will cost hundreds of millions of dollars more. As the service becomes operational, there will be research and development, production, marketing and service administration, as well as related jobs in industries manufacturing the necessary hardware. (over) As of the June 1991 cut-off date, the Commission had received six applications for Big LEOs. The applicants are: Ellipsat Corporation (now doing business as Mobile Communications Holdings, Inc.); Motorola Satellite Communications, Inc.; Constellation Communications, Inc.; Loral Cellular Systems Corp. (now doing business as Loral Qualcomm Partnership); TRW, Inc.; and AMSC Subsidiary Corporation. These applicants will be given an opportunity to file amended applications that conform with the new rules. Amended applications, requesting construction, launch and operating authority, must be filed by November 16, 1994, in order to receive continued consideration. However, applicants will be given until January 1996 to demonstrate compliance with the financial standard adopted by the Commission. The Commission noted, however, that complete applications filed on November 16, 1994 will be processed immediately, with action anticipated by January 31, 1995. The Commission adopted the spectrum sharing plan proposed in its Notice of Proposed Rulemaking in this docket, which will allow for licensing of five systems. The plan will assign code-division multiple access (CDMA) systems to 11.35 MHz of shared bandwidth at 1610-1621.35 MHz and a time division/frequency division multiple access (TDMA/FDMA) system to 5.15 MHz of dedicated bandwidth at 1621.35 -1626.5 MHz. The Commission also adopted an interim plan to be used in the event that the operations of GLONASS, the Russian Global Navigation System, interferes with MSS operations in the lower frequency portion of the 1610-1626.5 MHz band. The interim plan will permit the CDMA licensees to expand by 1.25 MHz into the designated TDMA/FDMA band at 1621.35-1622.60 MHz. The Commission also stated that if only one CDMA system is implemented, the system's assignment would not be automatically reduced to 8.25 MHz, as proposed in the Notice. Rather, the Commission stated that any decision would be deferred until, and if, the need arises. The plan also allows CDMA systems to share the entire 16.5 MHz of downlink spectrum at 2483.5-2500 MHz. If all six applicants are found to be qualified, the licenses will be auctioned. The Commission has adopted qualification criteria designed to ensure that those granted licenses are capable of expeditiously implementing state-of-the-art systems that will serve the public interest. The requirements include: -- A low-Earth orbit design; -- The capability of providing global service; -- The capability of providing continuous service throughout the United States; -- A stringent financial showing identical to the one used in the Domestic Fixed- Satellite Service; and (over) -- A construction timetable with a reporting requirement. If an auction is necessary, the Commission will conduct simultaneous multiple round bidding of small (2.0625 MHz) band segments, in which entities will be permitted to acquire up to four band segments each, assuring at least two licensees. The Commission also adopted technical coordination rules to achieve sharing between MSS and other services operating in the band or in adjacent bands. The Commission plans to begin to issue conditional licenses in January 1995, although it probably will not be able to authorize feeder link frequencies at that time. The Commission also determined that Big LEO space segment capacity may be offered to commercial mobile service providers on a non-common carrier basis, provided that the Big LEO service offering does not meet the definition of a common carrier service. Action by the Commission October 13, 1994, by Report and Order (FCC 94-261). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News Media contact: Susan Lewis Sallet or Audrey Spivack at (202) 418-0500. Common Carrier Bureau contact: Fern Jarmulnek at (202) 634-1682.