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Fourteenth Orbit Act Report to Congress

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Released: June 7, 2013

Federal Communications Commission

FCC 13-80

FCC REPORT TO CONGRESS

AS REQUIRED BY THE ORBIT ACT

FOURTEENTH REPORT

Adopted: June 5, 2013

Released:

June 7, 2013

By the Commission: Commissioner Pai issuing a statement.

Federal Communications Commission

FCC 13-80

FCC REPORT TO CONGRESS AS REQUIRED BY THE ORBIT ACT

FOURTEENTH REPORT

This report is submitted in accordance with the requirements of the Open-Market
Reorganization for the Betterment of International Telecommunications Act (the "ORBIT Act" or
"Act")1 which has an objective of ensuring that INTELSAT and Inmarsat are privatized in a pro-
competitive manner. To this end, the Act requires the submission of annual reports to Congress
as noted below.
Section 646 states:
(a) ANNUAL REPORTS - The President and the Commission shall
report to the Committees on Commerce and International Relations of the House
of Representatives and the Committees on Commerce, Science, and
Transportation and Foreign Relations of the Senate within 90 calendar days of
the enactment of this title, and not less than annually thereafter, on the progress
made to achieve the objectives and carry out the purposes and provisions of this
title. Such reports shall be made available immediately to the public.
(b) CONTENTS OF REPORTS - The reports submitted pursuant to
subsection (a) shall include the following:
(1) Progress with respect to each objective since the most recent
preceding report.
(2) Views of the Parties with respect to privatization.
(3) Views of the industry and consumers on privatization.
(4) Impact privatization has had on United States industry,
United States jobs, and United States industry's access to the global
marketplace.2

I.

Progress as to Objectives and Purposes

The purpose of the ORBIT Act is "to promote a fully competitive global market for
satellite communication services for the benefit of consumers and providers of satellite services
and equipment by fully privatizing the intergovernmental satellite organizations, INTELSAT3 and
Inmarsat."4

1 Open-Market Reorganization for the Betterment of International Telecommunications Act, Pub. L. No.
106-180, 114 Stat. 48 (2000), as amended, Pub. L. No. 107-233, 116 Stat. 1480 (2002) (codified at 47
U.S.C. 701 et seq.).
2 47 U.S.C. 765(e).
3 The intergovernmental satellite body INTELSAT later created Intelsat LLC, a privately-held U.S.
corporation that became the licensee of satellite assets formerly held by INTELSAT. See infra p.3 and note
18. As a result of an internal reorganization consummated in January 2011, Intelsat LLC was eliminated as
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The ORBIT Act, as originally passed in 2000, (1) mandates the privatization of INTELSAT
and Inmarsat, (2) establishes criteria to ensure a pro-competitive privatization, (3) requires the
Commission to determine whether INTELSAT, Inmarsat, and the INTELSAT spin-off New Skies
Satellites N.V. (New Skies), have been privatized in a manner that will harm competition in the
United States, (4) requires the Commission to use the privatization criteria specified in the ORBIT
Act as a basis for making its competition determination, and (5) directs the Commission to "limit
through conditions or deny" applications or requests to provide "non-core" services to, from, or
within the United States, if it finds that competition will be harmed.5 The Act provides for certain
exceptions to limitations on non-core services in the event of such a determination. The Act also
prohibits the Commission from authorizing certain "additional" services pending privatization
consistent with the criteria in the Act.6 In addition, the Act directs the Commission to undertake a
rulemaking proceeding to assure users in the United States the opportunity for direct access to the
INTELSAT system.
In October 2004, Congress amended the ORBIT Act, adding Sections 621(5)(F) and (G), to
provide a certification process as an alternative to the initial public offering (IPO) requirements
under Sections 621(5)(A) and (B).7 In July 2005, Congress further amended the ORBIT Act,
striking certain privatization criteria for INTELSAT separated entities, removing certain restrictions
on separated entities and successors to INTELSAT and for other purposes.8 Congress also added a
requirement that the Commission submit to Congress a separate annual report that analyzes the
competitive market conditions with respect to domestic and international satellite
communications services (Satellite Competition Report).9

(Continued from previous page)
a subsidiary company, and the majority of licenses are now held by Intelsat License LLC. See infra pp.7-8
and note 38.
4 47 U.S.C. 761 NOTE.
5 The Act defines "non-core" services as "services other than public-switched network voice telephony and
occasional-use television" with respect to INTELSAT, and as "services other than global maritime distress
and safety services or other existing maritime or aeronautical services for which there are not alternative
providers" with respect to Inmarsat. 47 U.S.C. 769(a)(11).
6 The Act defines "additional" services as direct-to-home or direct broadcast satellite video services, or
services in the Ka- or V- bands for INTELSAT and as "those non-maritime or non-aeronautical mobile
services in the 1.5 and 1.6 GHz band on planned satellites or the 2 GHz band" for Inmarsat. 47 U.S.C.
769(a)(12).
7 Pub. L. No. 108-228, 118 Stat. 644 (2004), as amended, Pub. L. No. 108-371, 118 Stat. 1752 (Oct. 25,
2004).
8 Pub. L. No. 109-34, 119 Stat. 377 (July 12, 2005).
9 The most recent satellite competition annual report was released on December 13, 2011. Third Report and
Analysis of Competitive Market Conditions with Respect to Domestic and International Satellite
Communications Services
, IB Docket No. 09-16, and International Satellite Communications Services and
Report and Analysis of Competitive Market Conditions with Respect to Domestic and International Satellite
Communications Services
, IB Docket No. 10-99, Third Report, 26 FCC Rcd 17284 (2011) (Third Satellite
Competition Report
).
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The Commission made its first annual report to Congress on its actions to implement the
ORBIT Act on June 15, 2000, following enactment of the Act on March 17, 2000, and submitted
additional reports every year since. 10 In anticipation of this fourteenth report, the Commission
issued a Public Notice on February 4, 2013, inviting comments related to the development of this
Report.11 Intelsat License LLC12 (Intelsat), Inmarsat PLC13 (Inmarsat), and Robert L. Lindsey IV
(Robert Lindsey) filed comments.14 Intelsat filed reply comments.15

A. Commission Actions and Activities

Since August of 2000, the Commission has undertaken a number of actions either
required by the ORBIT Act, or related to its objectives and purposes. The Commission has taken
the actions described below to ensure that INTELSAT, Inmarsat, and New Skies have been
privatized in a pro-competitive manner, consistent with the privatization criteria of the ORBIT
Act.16 The Commission has also taken actions to implement certain deregulatory measures in the
ORBIT Act.17

INTELSAT


In August 2000, the Commission granted conditional licensing authority to Intelsat
LLC (Intelsat), a separate, privately held U.S. corporation, created by INTELSAT to
hold U.S. satellite authorizations and associated space segment assets.18 Under this

10 FCC Report to Congress as Required by the ORBIT Act, Report, 15 FCC Rcd 11288 (2000); FCC
Report to Congress as Required by the ORBIT Act,
Report, 17 FCC Rcd 11458 (2002); FCC Report to
Congress as Required by the ORBIT Act,
Report, 18 FCC Rcd 12525 (2003); FCC Report to Congress as
Required by the ORBIT Act,
Report, 19 FCC Rcd 10891 (2004); FCC Report to Congress as Required by
the ORBIT Act,
Report, 20 FCC Rcd 11382 (2005); FCC Report to Congress as Required by the ORBIT
Act,
Report, 21 FCC Rcd 6740 (2006); FCC Report to Congress as Required by the ORBIT Act, Report, 22
FCC Rcd 11347 (2007); FCC Report to Congress as Required by the ORBIT Act, Report, FCC 08-152
(2008); FCC Report to Congress as Required by the ORBIT Act, Report, 24 FCC Rcd 8686 (2009); FCC
Report to Congress as Required by the ORBIT Act
, Report, 25 FCC Rcd 7834 (2010) (Eleventh ORBIT Act
Report
); FCC Report to Congress as Required by the ORBIT Act, Report, 26 FCC Rcd 8998 (2011)
(Twelfth ORBIT Act Report); FCC Report to Congress as Required by the ORBIT Act, Report, 27 FCC Rcd
7832 (2012) (Thirteenth ORBIT Act Report).
11 International Bureau Information: Report to Congress Regarding the ORBIT Act, DA 13-65, Public
Notice (Int'l Bur., rel. Feb. 4, 2013). See also Appendix.
12 Comments of Intelsat License LLC, filed on Mar. 4, 2013 (Intelsat Comments).
13 Comments of Inmarsat PLC, filed on Mar. 4, 2013- (Inmarsat Comments).
14 Comments of Robert Lindsey IV, filed on Feb. 11, 2013 (Robert Lindsey Comments).
15 Reply Comments of Intelsat, filed on Mar. 18, 2013 (Intelsat Reply Comments). On April 8, 2013,
Chris Wilfong filed comments urging the Commission to maintain its current television and radio
indecency standards, and to oppose any changes that would allow expletives and nudity on "the public
airwaves." These comments address topics that are outside the scope of the ORBIT Act and are not
addressed in this report.
16 47 U.S.C. 761, 763, 763a, 763b, 763c, and 765g.
17 47 U.S.C. 765 and 765d(1).
18 Application of Intelsat LLC for Authority to Operate, and to Further Construct, Launch, and Operate C-
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licensing authority, the Commission permitted Intelsat's licenses to become effective
upon "privatization," meaning the transfer of INTELSAT's satellites and associated
assets to Intelsat and the transfer of its International Telecommunication Union (ITU)
network filings to the U.S. registry. Intelsat received conditional U.S. authorizations
for INTELSAT's existing satellites, planned satellites, and planned system
modifications associated with INTELSAT's frequency assignments in the Fixed-
Satellite Service (FSS) C- and Ku-bands existing as of privatization.19
Later in 2000, INTELSAT adopted plans to distribute shares in Intelsat to its
Signatories on July 18, 2001.20 In May 2001, the Commission found that, although
the IPO required under the privatization requirements of the ORBIT Act had not yet
been completed, INTELSAT would privatize in a manner consistent with the non-
IPO privatization provisions of the ORBIT Act, upon completion of its plans to
distribute Intelsat shares to its Signatories.21 INTELSAT later distributed shares to
its Signatories, as it had planned.
On July 28, 2003, Loral Satellite Inc. (Debtor-in-Possession or DIP), and Loral
SpaceCom Corporation (DIP), and Intelsat North America, LLC, filed an application
seeking authority to assign five non-common carrier space station licenses to Intelsat
North America. On February 11, 2004, the Commission granted authority to assign
those licenses subject to certain conditions and limitations.22 Loral was providing

(Continued from previous page)
band and Ku-band Satellites that Form a Global Communications System in Geostationary Orbit,
Memorandum Opinion, Order and Authorization, 15 FCC Rcd 15460, recon. denied, 15 FCC Rcd 25234
(2000), further proceedings, 16 FCC Rcd 12280 (2001) (Intelsat Licensing Order).
19 See id. The conventional C-band refers to the 3700-4200/5925-6425 MHz frequency bands. Intelsat
was also authorized to operate in the extended C-band frequencies 3625-3700/5850-5925/6425-6650 MHz
on certain satellites at certain orbital locations. In addition, Intelsat was authorized to operate in the
extended C-band frequencies 3420-3625 MHz on the Intelsat-805 satellite at 55.5 W.L. and in the 3400-
3625 MHz band on the Intelsat 25 satellite at 31.5 W.L. for service to non-U.S. locations. The 3400-3600
MHz portion of this frequency band is not a satellite band in the United States and is operated by Intelsat
outside the United States subject to potential interference from worldwide shipborne U.S. military radar
operations. The conventional Ku-band refers to the 11.7-12.2/14.0-14.5 GHz frequency bands. Intelsat
was also authorized to operate in the extended Ku-frequency bands 10.95-11.2/11.45-11.7/12.5-
12.75/13.75-14.0 GHz on certain satellites at certain orbital locations.
20 Upon privatization, former INTELSAT Signatories and non-Signatory investing entities were issued
shares in Intelsat according to their March 2001 investment shares in INTELSAT.
21 Application of Intelsat LLC for Authority to Operate, and to Further Construct, Launch, and Operate C-
band and Ku-band Satellites that Form a Global Communications System in Geostationary Orbit
,
Memorandum Opinion, Order and Authorization, 16 FCC Rcd 12313, 12290, 71 (2001).
22 Loral Satellite, Inc. (Debtor-in-Possession) and Loral SpaceCom Corporation (Debtor-in-Possession),
and Intelsat North America, LLC, Applications for Consent to Assignments of Space Station Authorizations
and Petition for Declaratory Ruling Under Section 310(b)(4) of the Communications Act of 1934, as
amended,
Authorization and Order, 19 FCC Rcd 2404 (Int'l Bur. 2004) (Loral/Intelsat Order). On March
4, 2004, the Commission adopted a Supplemental Order clarifying the start date for the Special Temporary
Authority that allowed Intelsat to continue providing "additional services," such as Direct-To-Home (DTH)
services, to Loral's existing customers. Loral Satellite, Inc. (Debtor-in-Possession) and Loral SpaceCom
(continued ...)
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services, such as Direct-to-Home (DTH), that are "additional services" as defined in
the ORBIT Act. Intelsat was granted authority to provide additional services to the
then-existing Loral customers.23
Intelsat was originally required by the ORBIT Act to conduct an IPO by October 1,
2001, in order to "substantially dilute" ownership by former INTELSAT
Signatories.24 Subsequently, in 2002 and 2004, Congress amended the ORBIT Act to
extend the deadline for Intelsat to conduct its IPO.25 In October 2004, Congress
added Sections 621(5)(F) and (G) to the ORBIT Act, to provide a certification
process as an alternative to the IPO requirements under Sections 621(5)(A) and (B).26
On December 22, 2004, the Commission authorized the transfer of control of
Intelsat's licenses and authorizations to Zeus Holdings Limited (Zeus),27 a private
equity group, organized under the law of Bermuda, which would acquire 100 percent
of the equity and voting interests of Intelsat (Zeus/Intelsat Transaction).28

(Continued from previous page)
Corporation (Debtor-in-Possession), and Intelsat North America, LLC, Applications for Consent to
Assignments of Space Station Authorizations and Petition for Declaratory Ruling Under Section 310(b)(4)
of the Communications Act of 1934, as amended,
Supplemental Order, 19 FCC Rcd 4029 (Int'l Bur. 2004).
23 Loral/Intelsat Order, 19 FCC Rcd at 2429, 65.
24 Pub. L. No. 106-180, 114 Stat. 48 (2000). Congress also gave the Commission discretion to extend the
IPO deadline to no later than December 31, 2002. INTELSAT Request for Extension of Time Under Section
621(5) of the ORBIT Act
, Order, 16 FCC Rcd 18185 (2001).
25 Pub. L. No. 107-233, 116 Stat. 1480 (2002) (extending Intelsat's IPO deadline to Dec. 31, 2003, and
giving the Commission the discretionary authority to further extend the deadline to no later than June 30,
2004); Public Law No. 108-228, 118 Stat. 644 (2004) (extending Intelsat's IPO deadline to June 30, 2005,
and giving the Commission the discretionary authority to further extend the deadline to no later than Dec.
31, 2005).
26 Public Law No. 108-371, 118 Stat. 1752 (2004).
27 Zeus Holdings Limited subsequently changed its name to Intelsat Holdings, Ltd. See note 28, infra.
28 Intelsat, Ltd., Transferor, and Zeus Holdings Limited, Transferee, Consolidated Application for Consent
to Transfers of Control of Holders of Title II and Title III Authorizations and Petition for Declaratory
Ruling Under Section 310 of the Communications Act of 1934, As Amended
, IB Docket No. 04-366, Order
and Authorization, 19 FCC Rcd 24820 (Int'l Bur., Wireless Tel. Bur., and Office of Eng. Tech. 2004). In
early 2005, the Commission granted authority to interpose Intelsat Subsidiary Holding Company Ltd. into
the chain of ownership and modified its foreign ownership ruling to include new Bermuda-based
intermediate parent Intelsat Subsidiary Holding Company Ltd. Intelsat, Ltd., International Bureau Filing
System (IBFS) File No. ISP-PDR-20050203-00004, Grant of Authority, Public Notice, Report No. TEL-
00884, DA 05-479, 20 FCC Rcd 4052, 4053 (Int'l Bur., 2005); Intelsat North America LLC, IBFS File No.
SAT-T/C-20050203-00022, and Intelsat LLC, IBFS File No. SAT-T/C-20050203-00023, Grant of
Authority, Public Notice, Report No. SAT-00276, DA 05-594 (Int'l Bur., 2005), at 1-2; Intelsat LLC, IBFS
File Nos. SES-T/C-20050203-00138, -00139 and -00140, and Intelsat MTC LLC, IBFS File No. SES-T/C-
20050203-00141, Grant of Authority, Report No. SES-00691 (Int'l Bur., 2005), at 26-27; Intelsat USA
License Corp
., IBFS File No. ITC-T/C-20050418-00279, Intelsat General Corporation, IBFS File No.
ITC-T/C-20050418-00280, and Intelsat MTC LLC, IBFS File No. ITC-T/C-20050418-0281, Grant of
Authority, Public Notice, Report No. TEL-00931, DA 05-2192 (Int'l Bur., 2005), at 3-4. During 2005,
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On April 8, 2005, the Commission determined that (a) Intelsat was in compliance
with the alternative certification process under Sections 621(5) (F) and (G) of the
ORBIT Act; (b) that Intelsat could forgo the requirement for an IPO and the public
listing of securities; and that (c) Intelsat was no longer subject to the provisions of
Section 602 that prohibited Intelsat from providing "additional services."29
On May 24, 2005, the Commission granted Intelsat's request for approval of the pro
forma assignments of space station authorizations and related Tracking, Telemetry
and Control (TT&C) earth station licenses, from Intelsat to Intelsat North America
LLC.30
On June 19, 2006, the Commission approved the merger of Intelsat Holdings, Ltd.
with PanAmSat Holding Corporation (PanAmSat).31 The FCC action approving the
transaction granted applications for the transfer of control, to Intelsat, of
Commission-issued licenses and authorizations held by PanAmSat and its
subsidiaries. Upon consummation of the transaction on July 3, 2006, PanAmSat
became a wholly-owned subsidiary of Intelsat continuing operation as a separate
corporate entity.
On December 19, 2007, the Commission granted a series of applications filed by
Intelsat Holdings, Ltd. and Serafina Holdings Limited (Serafina) seeking consent to
transfer of control of Intelsat Holdings, Ltd., and its six subsidiary licensees from
Intelsat's existing control group of four private equity firms to Serafina, a then
newly-formed Bermuda company indirectly controlled by BC Partners Holdings
Limited, a U.K.-based investment firm organized under the laws of Guernsey, a
British Crown Dependency.32 Serafina and Intelsat subsequently consummated the
proposed transaction.
On February 21, 2008, the Commission released an order33 modifying certain space
station licenses held by Intelsat North America to include two conditions requested

(Continued from previous page)
Zeus Holdings Limited changed its name to Intelsat Holdings, Ltd. See, e.g., Intelsat USA License Corp.,
Report No. TEL-00931, at 3.
29 Intelsat, Ltd. Petition for Declaratory Ruling that Intelsat, Ltd. Complies With Section 621(5) (F) of the
ORBIT Act,
IB Docket No. 05-18, Memorandum Opinion and Order, 20 FCC Rcd 8604 (2005).
30 Intelsat LLC, Assignor, and Intelsat North America LLC, Assignee, Applications for Consent to Pro
Forma Assignment of Space Station Authorizations and Related TT&C Earth Station Licenses
, DA-05-
1545, Report No. SAT-00294, Public Notice (Int'l Bur., rel. Mar. 27, 2005).
31 Constellation, LLC, Carlyle PanAmSat I, LLC, Carlyle PanAmSat II, LLC, PEP PAS, LLC, PEOP PAS,
LLC, Transferors, Intelsat Holdings, LTD, Transferee, Consolidated Application for Authority to Transfer
Control of PanAmSat Licensee Corp. and PanAmSat H-2 Licensee Corp.,
Memorandum Opinion and
Order, 21 FCC Rcd 7368 (2006).
32 Intelsat Holdings, Ltd., Transferor, and Serafina Holdings Limited, Transferee, Consolidated Application
for Consent to Transfer Control of Holders of Title II and Title III Authorizations
, IB Docket No. 07-181,
Memorandum Opinion and Order, 22 FCC Rcd 22151 (2007).
33 Petition of the International Telecommunications Satellite Organization under Section 316 of the
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jointly by Intelsat and the International Telecommunications Satellite Organization
(ITSO).34 The conditions were two of three conditions initially proposed by ITSO.35
The adoption of the two conditions was supported by the State Department, after
consultations with NTIA.36
On January 20, 2010, Intelsat General Corporation was granted a pro forma transfer
of control of Intelsat General Corporation's international Section 214 authority from
Intelsat Global, Ltd. (Bermuda) to Intelsat Global, S.A. (Luxembourg), effective
December 15, 2009. All of Intelsat's (Bermuda) direct and indirect subsidiaries were
migrated from Bermuda and reorganized as Luxembourg entities. There was no
change in the ultimate ownership and control of Intelsat General Corporation.37
In December 2010 and January 2011, the FCC authorized a number of internal
transfers and assignments that resulted in the majority of Intelsat and its affiliated
corporate entities' FCC licenses and authorizations being held by a single subsidiary

(Continued from previous page)
Communications Act, as Amended, IB Docket No. 06-137, Order of Modification, 23 FCC Rcd 2764 (Int'l
Bur., 2008) (Order of Modification). The modification implemented a Commission order, pursuant to
Section 316 of the Communications Act of 1934, as amended, to impose the two conditions. See Petition
of the International Telecommunications Satellite Organization under Section 316 of the Communications
Act, as Amended
, IB Docket No. 06-137, Order Proposing Modification, 22 FCC Rcd 20093 (Int'l Bur.
2007). Intelsat North America, while stating that it did not object to the proposed conditions in principle,
filed a Limited Protest to Seek Clarification as to the circumstances in which the conditions would apply.
Intelsat North America Limited Protest to Seek Clarification, IB Docket No. 06-137 (filed Jan. 10, 2008), at
1-2. The request for clarification was granted in part, and denied in part, in the Order of Modification.
34 ITSO is the residual, post-privatization intergovernmental organization, governed by international
agreement that oversees the Intelsat public service obligations established as part of the 2001 privatization.
See Agreement Relating to the International Telecommunications Satellite Organization (ITSO Agreement)
(November 17, 2000), Art. III(a) ("[T]he main purpose of ITSO is to ensure, through the Public Services
Agreement, that the Company provides, on a commercial basis, international public telecommunications
services, in order to ensure performance of the Core Principles."), available at http://www.itso.int. The
United States is a party to the ITSO Agreement, with the State Department serving as the U.S.
representative. See Order of Modification, 23 FCC Rcd at 2764. The two conditions explicitly obligate
Intelsat to remain a signatory to the Public Services Agreement between Intelsat and ITSO approved by the
ITSO Twenty-fifth Assembly of Parties, and provide, for licensing purposes, that no entity can be
considered a successor-in-interest to Intelsat under the ITSO Agreement unless the entity has undertaken to
perform the obligations of the Public Services Agreement.
35 Petition of ITSO, IB Docket No. 06-137 (filed July 10, 2006).
36 Letter from Ambassador David A. Gross, United States Coordinator, International Communications and
Information Policy, U.S. Department of State, to the Honorable Kevin J. Martin, Chairman, Federal
Communications Commission, IB Docket No. 06-137 (dated Mar. 15, 2007) at 1, 3-4. See also Letter from
Steven W. Lett, Deputy United States Coordinator, International Communications and Information Policy,
U.S. Department of State to Helen Domenici, Chief, International Bureau, Federal Communications
Commission, IB Docket No. 06-137 (dated Feb. 1, 2008).
37 International Authorizations Granted, DA10-110, Public Notice (Int'l Bur., rel. Jan. 21, 2010).
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company, Intelsat License LLC.38 These transfers and assignments were
consummated on January 12, 2011.39
On November 23, 2011, Intelsat submitted applications seeking Commission
approval to transfer control of all of its licenses and authorizations (held by Intelsat
License LLC, Intelsat New Dawn Company, Ltd., Intelsat USA License LLC, and
Intelsat General) pursuant to a public offering of newly issued voting shares by
Intelsat Global Holdings S.A.40 The Commission granted these applications, subject
to conditions, on May 16, 2012.41 Intelsat conducted its IPO on April 18, 2013.
Pursuant to U.S. obligations as the notifying administration to the ITU42 for Intelsat's
FSS C- and Ku-band space station networks transferred at privatization, the
Commission has participated in a number of international satellite coordination
negotiations as Intelsat's licensing Administration. Since the Thirteenth ORBIT Act
Report
, the Commission has participated in coordination meetings with Cyprus and
Indonesia on behalf of Intelsat and a number of other U.S. licensees.
The United States has a separate process whereby U.S. operators may reach
operational arrangements with operators of other Administrations. These operational
arrangements are then submitted to the operators' respective Administrations for
approval. Once approved by both Administrations, the operational arrangements
become, or form the basis for, a coordination agreement between the Administrations
under the ITU procedures. Since the Thirteenth ORBIT Act Report, Intelsat has
concluded operational arrangements with operators licensed by Bolivia, Brazil,
France, Intersputnik (an intergovernmental organization), Japan, Kazakhstan,
Luxembourg, Malaysia, Mexico, the Netherlands, Papua New Guinea, Russia, Spain,
the United Arab Emirates, and the United Kingdom. In due course, this process will
lead to coordination agreements between the United States and the pertinent foreign
Administrations.

38 IBFS File Nos. SES-ASG-20101203-01501, SES-ASG-20101206-01502, SES-T/C-20101203-01503,
SES-ASG-20101203-01504, SES-ASG-20101206-01512, SAT-ASG-20101203-00251, SAT-ASG-
20101203-00252, SAT-T/C-20101203-00253, SAT-T/C-20101203-00254, and 0004520968. References to
"Intelsat" in this document are, for the period following January 12, 2011, to Intelsat License LLC.
39 Letter from Jennifer D. Hindin, Counsel to Intelsat, to Marlene H. Dortch, Secretary, FCC, IBFS File
No. SAT-ASG-20101203-00251 (dated Jan. 18, 2011).
40 Intelsat Global Holdings S.A. Applications to Transfer Control of Intelsat Licenses and Authorizations
From BC Partners Holdings Limited to Public Ownership
, Public Notice, 26 FCC Rcd 16895 (Int'l Bur.,
2011).
41 Intelsat Global Holdings S.A. Applications to Transfer Control of Intelsat Licenses and Authorizations
From BC Partners Holdings Limited to Public Ownership
, Order, IB Docket No. 11-205, 27 FCC Rcd
5226 (2012). In particular, the Commission conditioned grant of the Intelsat applications upon Intelsat's
continued compliance with commitments and undertakings set forth in letters from Intelsat to the
Department of Justice, Federal Bureau of Investigation, Department of Defense, and the Department of
Homeland Security, which were dated Feb. 14, 2012, and Oct. 9, 2007.
42 As the Notifying Administration on behalf of Intelsat, the Commission is responsible for discharging the
obligation undertaken in the Constitution of the ITU, in the Convention of the ITU, and in the
Administrative regulations. Article 1, Section 1.2, ITU Radio Regulations.
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Since the Thirteenth ORBIT Act Report, Intelsat has filed a number of requests for
license authorizations and modifications. The Commission has reviewed these
requests and acted on them consistent with the Commission's licensing rules and
processes.43

Inmarsat


Inmarsat privatized on April 15, 1999, prior to enactment of the ORBIT Act. The
ORBIT Act specified a number of criteria for determining whether Inmarsat's
privatization is pro-competitive. On October 9, 2001, the Commission released an
Order in which it concluded that Inmarsat had privatized in a manner consistent with
the non-IPO requirements of Sections 621 and 624 of the ORBIT Act.44
In its decision, having found that Inmarsat had privatized in a manner consistent with
the non-IPO requirements of the Act,45 the Commission granted Comsat Corporation,
Stratos Mobile Networks, LLC, SITA Information Computing Canada, Inc.,
Honeywell, Inc., Marisat Communications Network, Inc., and Deere & Company
regular earth station authority to use certain Inmarsat satellites for communications
services to, from, or within the United States.
The ORBIT Act originally required Inmarsat to conduct an IPO no later than October
1, 2000.46 Subsequently, Congress amended the ORBIT Act several times to extend
the deadline for Inmarsat to conduct an IPO.47 Ultimately, in October 2004,
Congress amended the ORBIT Act, extending the IPO deadline until June 30, 2005,

43 See, e.g., Intelsat License LLC, IBFS File No. SAT-RPL-20120326-00061, Request to launch and
operate a replacement C-/Ku-band satellite, to be known as Intelsat 21, DA 12-1126 (grant of authority on
July 12, 2012); Intelsat License LLC, Request for authority to launch and operate a replacement C-/Ku-
/Ka-band satellite, to be known as Intelsat 20, IBFS File No. SAT-LOA-20111024-00208, DA 12-1560
(grant of authority on July 26, 2012); Intelsat License LLC, Request to modify the authorization for the
Galaxy 12 satellite, IBFS File No. SAT-MOD-20111011-00197, DA 12-1560 (grant of authority on Sept.
25, 2012); Intelsat License LLC, Request for a license extension, through June 30, 2021, of the Galaxy 25
satellite, IBFS File No. SAT-MOD-20120320-00057, DA 12-1560 (grant of authority on Sept. 27, 2012);
Intelsat License LLC, Request for authority to launch and operate a replacement satellite with new
frequencies, to be known as Intelsat 27, IBFS File No. SAT-LOA-20110610-00105, DA 12-1629 (grant of
authority on Oct. 9, 2012); Intelsat License LLC, Request to modify authorization to offer domestic service
using the INTELSAT 707 satellite, IBFS File No. SAT-MOD-20050610-00121, DA 05-2670 (grant of
authority on Jan. 16, 2013); Intelsat License LLC, Request to modify the authorization for the Intelsat 19
satellite, IBFS File No. SAT-MOD-20120628-00107, DA 13-73 (grant of authority on Jan. 17, 2013).
44 Comsat Corporation et al., Memorandum Opinion, Order and Authorization, 16 FCC Rcd 21661 (2001).
45 47 U.S.C. 761(a), which precludes Commission authorization of additional services by Inmarsat until
Inmarsat has privatized in accordance with the Act.
46 Pub. L. No. 106-180, 114 Stat. 48 (2000).
47 On June 30, 2003, Congress extended Inmarsat's IPO deadline to June 30, 2004, and gave the
Commission discretion to further extend this deadline to no later than December 31, 2004. ORBIT
Technical Corrections Act of 2003, Pub. L. No. 108-39, 763, 117 Stat. 835 (2003). Inmarsat Ventures
Limited Request for Extension of Time under Section 621(5) of the Communications Satellite Act of 1962,
as amended by the Open-Market Reorganization for the Betterment of International Telecommunications
Act
, Order, 19 FCC Rcd 11387 (2004).
9

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and adding Sections 621(5)(F) and (G) to provide a certification process as an
alternative to the IPO requirements under Sections 621(5)(A) and (B).48
On June 14, 2005, the Commission determined that Inmarsat was in compliance with
the alternative certification process under Sections 621(5)(F) and (G) of the ORBIT
Act, that Inmarsat could forgo the requirement for an IPO and the public listing of
securities, and that Inmarsat was no longer subject to the provisions of Section 602
that prohibited Inmarsat from providing additional services.49
Beginning in 2005, resellers of Inmarsat satellite services filed applications to
continue or, in some cases, to commence operations of mobile earth terminals
(METs) and gateway land earth stations (LESs) in the United States via various
Inmarsat satellites not covered by existing coordination agreements for the L-band
over North America, including Inmarsat's fourth generation (I-4) satellites.50 These
applications were opposed by Mobile Satellite Ventures Subsidiary LLC (MSV), the
U.S.-licensed mobile satellite service (MSS) operator in the L-band.51
On December 21, 2007, Inmarsat and MSV signed a "Spectrum Coordination and
Cooperation Agreement" that resolved outstanding differences between the parties
regarding use of the L-band.52 According to the parties, the agreement addresses
operations in the L-band in North America, including re-banding of spectrum,
coordination of next generation Inmarsat and MSV satellites, resolution of pending
regulatory issues in the United States and Canada, and greater system technical
flexibility.
On March 26, 2008, the Commission reached government-to-government satellite
coordination agreements with the United Kingdom and Canada, based upon the
"Spectrum Coordination and Cooperation Agreement" of Inmarsat and MSV. In
light of these developments, on March 27, 2008, the Commission granted nearly all

48 Public Law No. 108-371, 118 Stat. 1752 (Oct. 25, 2004).
49 Inmarsat Group Holdings Limited Petition for Declaratory Ruling that Intelsat, Ltd. Complies With
Section 621(5)(F) of the ORBIT Act,
IB Docket 04-439, Memorandum Opinion and Order, 20 FCC Rcd
11366 (2005). Section 681(2) of the ORBIT Act defines "additional services" for Inmarsat as the non-
maritime and non-aeronautical services in the 1.5 and 1.6 GHz bands on planned satellites in the 2 GHz
band. See Pub. L. 106-180 602(a) (precluding Commission authorization of additional services by
Inmarsat until it has privatized in accordance with the Act).
50 The first two Inmarsat I-4 satellites were launched in 2005. See "About Inmarsat: Our Satellites,"
available online at http://www.inmarsat.com/About/Our_satellites/default.aspx. The third I-4 satellite was
launched on August 18, 2008. Press Release, "Successful Launch for Third Inmarsat-4 Satellite," dated
Aug. 18, 2009, available online at http://www.inmarsat.com/corporate/media-
centre/newsroom/SuccessfullaunchforthirdInmarsat4satellite.htm.
51 MSV subsequently changed its name, first to SkyTerra, and then to its current name, LightSquared. See
Press Release, "Introducing LightSquared: Revolutionizing the U.S. Wireless Industry," dated July 20,
2010, available online at http://www.lightsquared.com/press-room/press-releases/introducing-lightsquared-
revolutionizing-the-u-s-wireless-industry-2/.
52 Press Release, "SkyTerra, Mobile Satellite Ventures and Inmarsat Sign Spectrum Coordination and
Cooperation Agreement," dated Dec. 21, 2007.
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pending applications for regular authority to continue existing services via Inmarsat
satellites.53 The Commission also granted one reseller's applications for regular
authority to provide new Broadband Global Area Network (BGAN) services via the
I-4F2 satellite on April 1, 2008.54 An additional reseller's application for regular
authority to provide BGAN services via the I-4F2 was granted on January 14, 2009.55
In June 2008, Inmarsat filed an application seeking approval of the indirect transfer
of control of Stratos Global Corporation and its wholly-owned subsidiaries from an
irrevocable trust to Inmarsat. In January 2009, the Bureau granted this application
for transfer of control.56 In April 2009, Inmarsat's prior distribution arrangements
expired and Inmarsat entered into new arrangements with its distributors.57 Inmarsat
also completed the acquisition of the shares of Stratos Global Corporation.58 In 2012,
Inmarsat conducted an internal reorganization that eliminated the use of Stratos as
brand name.59
On October 21, 2008, the Commission made administrative changes to the way in
which the Commission specifies authorized points of communication in licenses for
L-band MSS user terminals using Inmarsat space stations.60 Specifically, the
Commission established a list of Inmarsat satellites approved to serve the United
States in the L-band (the "ISAT List"). The list includes all Inmarsat satellites that
have been found to meet the Commission's legal, technical, and policy requirements
to access the U.S. market. As a result, earth station licensees and applicants may
seek authority to communicate with all Inmarsat satellites on the ISAT List by listing
"ISAT" as the point of communication, rather than having to seek authorization to

53 Actions Taken, Satellite Communications Services Information, Public Notice, Report No. SES-01021
(Int'l Bur., rel. Apr. 2, 2008).
54 Id. BGAN provides both simultaneous voice and data, globally.
http://www.inmarsat.com/services/types/broadband.
55 Actions Taken, Satellite Communications Services Information, Public Notice, Report No. SES-01103
(Int'l Bur., rel. Jan. 14, 2009) (granting authority to provide BGAN services via Inmarsat 4F2 to MVS Fed,
LLC).
56 Application of Robert M. Franklin (transferor) and Inmarsat plc (transferee) Consolidated Application
for Consent to Transfer of Control of Stratos Global Corporation and Its Subsidiaries from an Irrevocable
Trust to Inmarsat, plc.,
Memorandum Opinion and Order and Declaratory Ruling, 24 FCC Rcd 449 (Int'l
Bur. 2009).
57 Inmarsat Group Limited, Form 20-F, Annual Report Pursuant to Section 13 or 15(d) of the Securities
and Exchange Act of 1934 for the fiscal year ended December 31, 2008,
Apr. 29, 2009, at 22, 41, available
at http://www.sec.gov/Archives/edgar/data/1291396/000119312509091361/d20f.htm.
58 Inmarsat Press Release, "Inmarsat completes acquisition of Stratos Global and implements new
distribution terms with partners," Apr. 15, 2009, available at
http://www.stratosglobal.com/About%20Stratos/Newsroom/News%20Releases/2009/Acquisition%20of%2
0Stratos%20by%20Inmarsat.aspx.
59 Inmarsat Press Release, "Inmarsat reorganization focuses on partners and customers," Jan. 3, 2012,
available at http://www.inmarsat.com/corporate/media-
centre/newsroom/Inmarsatreorganisationfocusesonpartnersandcustomers.htm.
60 Inmarsat, Inc., Order, 23 FCC Rcd 15268 (Int'l Bur. 2008).
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communicate with Inmarsat satellites on a satellite-by-satellite and orbital-location-
by-orbital-location basis.
Four Inmarsat satellites were included in the original ISAT List.61 Since the creation
of the ISAT List, three Inmarsat satellites have been added to the ISAT List,62 and the
orbital location of one satellite on the ISAT List has been changed to a different
location.63 In addition, on October 22, 2009, Inmarsat's application to operate METs
with satellites on the ISAT List was granted.64
Inmarsat has announced a contract with Boeing to build three Inmarsat-5 satellites
that will operate in the Ka-band, independent from Inmarsat's existing L-band
satellites.65 Inmarsat states that the first Inmarsat-5 satellite is scheduled for launch
in the second half of 2013, with the entire constellation expected to be deployed in
2014.66 Inmarsat has a pending application to operate a fixed-satellite gateway earth
station in Lino Lakes, Minnesota, to communicate with the Inmarsat 5F2 space
station.67
Since the Thirteenth ORBIT Act Report, the Commission has granted several earth
station applications to communicate with Inmarsat's satellites as points of
communication.68

61 The Inmarsat satellites included in the original ISAT List were the I-3F2 at 15.5 W.L., the I-3F3 at 178
E.L., the I-3F4 at 142 W.L., and the I-4F2 satellite at 52.75 W.L. See id.
62 Satellite Communications Services Information Re: Actions Taken, Public Notice, Report No. SES-
01097 (Int'l Bur., rel. Dec. 24, 2008) (adding Inmarsat 4F1 at 143.5 E.L. and Inmarsat 4F3 at 97.65 W.L.
to ISAT List). On September 8, 2009, Inmarsat 2F1 at 142 W.L. was added, subject to conditions, to the
ISAT list. See IBFS File Nos. SAT-PPL-20081219-00235 and SAT-APL-20090609-00068 (grant of
authority on Sept. 8, 2009).
63 Inmarsat plc, Petition for Declaratory Ruling to Modify ISAT List to Reflect Resumed Operations of I-
3F4 at 54 W.L., IBFS File No. SAT-PPL-20090107-00003; SAT-APL-20090115-00005 (grant of
authority on Apr. 6, 2009).
64 Inmarsat Hawaii Inc., Application for Inmarsat Hawaii Blanket MET License, IBFS File No. SES-LIC-
20090217-00184 (grant of authority on Oct. 22, 2009).
65 Inmarsat website, "Satellites," available at http://www.igx.com/introduction_to_satellites. The term
"Ka-band" generally refers to the space-to-Earth (downlink) frequencies at 17.7-20.2 GHz and the
corresponding Earth-to-space (uplink) frequencies at 27.5-30.0 GHz.
66 Id.
67 Inmarsat Hawaii, Inc., Application for License, IBFS File No. SES-LIC-20120426-00397 (filed on Apr.
24, 2012). See also Satellite Communications Services re: Satellite Radio Applications Accepted for Filing,
Report No. SES-01479, Public Notice (Int'l Bur., rel. Aug. 29, 2012).
68 See, e.g., Denali 20020, LLC, Application for License, IBFS File No. SES-LIC-20120228-00223 (grant
of authority on June 20, 2012), Intelsat License LLC, Application for License, IBFS File No. SES-LIC-
20120308-00249 (grant of authority on June 21, 2012), GLOBECOMM Systems, Inc., Application for
Modification, IBFS File No. SES-MOD-20120426-00398 (grant of authority on June 22,2012), Intelsat
License LLC, Application for Modification, IBFS File No. SES-MFS-20120319-00276 (grant of authority
on July 11, 2012), MTN License Corp., Application for Modification, IBFS File No. SES-MFS-20120409-
00344 (grant of authority on July 11, 2012), MTN License Corp., Application for Modification, IBFS File
(continued ...)
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New Skies


New Skies is the Netherlands-based INTELSAT spin-off, created in 1998 as
INTELSAT's first step toward privatization. On March 29, 2001, the International
Bureau's Satellite and Radiocommunication Division added four satellites operated
by New Skies to the Commission's C- and Ku-band Permitted Space Station List69
(Permitted List) with conditions to remove secondary status requirements for certain
New Skies satellites.70 This action enabled New Skies to provide satellite services to,
from, and within the United States via all routinely authorized U.S. earth stations.71
On June 25, 2004, the Commission granted an application to transfer control of
Commission licenses and authorizations held by New Skies Satellites N.V. and New
Skies Networks, Inc. to New Skies Satellites B.V.72
On March 29, 2006, the Commission approved the transfer of control from New
Skies Networks, Inc. to SES GLOBAL S.A. of licenses for six non-common carrier
earth stations for communication with non-U.S. licensed satellites that have been

(Continued from previous page)
No. SES-MFS-20120409-00345 (grant of authority on July 11, 2012), MTN License Corp., Application for
Modification, IBFS File No. SES-MFS-20120409-00346 (grant of authority on July 11, 2012), HNS
License Sub, LLC, Application for Modification, IBFS File No. SES-MFS-20120426-00394 (grant of
authority on July 11, 2012), KVH Industries, Inc., Application for License, IBFS File No. SES-LIC-
20120328-00307 (grant stamp on July 31, 2012), Globecomm Systems, Inc., Application for Modification,
IBFS File No. SES-MOD-20120913-00824 (grant of authority on Sept. 19, 2012), Intelsat License LLC,
Application for Modification, IBFS File No. SES-MFS-20111115-01355 (grant of authority on Sept. 27,
2012), SES Americom, Inc., Application for Modification, IBFS File No. SES-MOD-20120824-00783
(grant of authority on Oct. 19, 2012), Global Data Systems, Inc., Application for License, IBFS File No.
SES-LIC-20120730-00704 (grant of authority on Jan. 11, 2013), Rockwell Collins Satellite
Communications Systems, Inc, Application for Modification, IBFS File No. SES-MOD-20130130-00127
(grant of authority on Mar. 14, 2013), Raysat Antenna Systems, LLC, Application for Modification, IBFS
File No. SES-MFS-20120517-00447 (grant of authority on Apr. 1, 2013), Raysat Antenna Systems, LLC,
Application for Modification, IBFS File No. SES-MFS-20120517-00448 (grant of authority on Apr. 1,
2013), Raysat Antenna Systems, LLC, Application for Modification, IBFS File No. SES-MFS-20120517-
00449 (grant of authority on Apr. 1, 2013).
69 The Permitted List denotes all satellites and services with which U.S. earth stations with "routinely"
authorized technical parameters operating in the conventional C- and Ku-bands ("ALSAT" earth stations)
are permitted to communicate, without additional Commission action. Those communications must fall
within the same technical parameters and conditions established in the earth stations' licenses. Amendment
of the Commission's Regulatory Policies to Allow Non-U.S.-Licensed Space Stations to Provide Domestic
International Satellite Service in the United States,
First Order on Reconsideration, 15 FCC Rcd 7207
(1999).
70 New Skies Satellites, N.V., Order, 16 FCC Rcd 7482 (Int'l Bur., Sat. and Rad. Div. 2001).
71 New Skies Satellites, N.V., Petition for Declaratory Ruling, Order, 16 FCC Rcd 6740 (Int'l Bur., Sat. and
Rad. Div. 2001).
72 Application of New Skies Satellites N.V. (Transferor) and New Skies Satellites B.V. (Transferee)
Transfer Control of FCC Licenses and Authorizations Held by New Skies Satellites N.V. and New Skies
Networks, Inc
., Public Notice, 19 FCC Rcd 21232 (2004).
13

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added to the Commission's Permitted List.73 The Commission also approved the
transfer of control of three non-U.S. satellites operated by New Skies that the
Commission authorized to provide service to the United States pursuant to the
Permitted List.74 The merger was consummated on March 30, 2006.
On September 7, 2009, SES S.A. announced that the operations of its subsidiaries
New Skies Satellites B.V. and SES Americom would be conducted under the single
brand name, SES WORLD SKIES.75 This change did not affect the underlying legal
entities that hold Commission authorizations or U.S. market access rights. In
September 2011, SES S.A. announced that all subsidiary companies, including SES
WORLD SKIES, would do business under the SES brand name.76
Currently, four New Skies satellites are on the C- and Ku-band Permitted List.77
Earth station operators with ALSAT authority have authority to access New Skies
satellites on the Permitted List.78
An earth station must seek specific authority to communicate with a space station if
the earth station does not meet the technical requirements for an ALSAT designation
and/or if the earth station seeks to communicate with a satellite in frequency bands
other than the conventional C- and Ku-bands. In the last year, the Commission
granted numerous earth stations specific authority to communicate with a New Skies
satellite.79

73 The Permitted List is available online at http://transition.fcc.gov/ib/sd/se/permitted.html.
74 New Skies Satellites Holdings LTD, Transferor, and SES Global S.A., Transferee, Applications to
Transfer Control of Authorizations Held By New Skies Networks, Inc. and Notification of Change to
Permitted Space Station List,
Public Notice, 21 FCC Rcd 3194 (Int'l Bur. 2006).
75 See http://www.ses.com/4337028/history. SES also has an ownership interest in regional satellite
operators Ciel, QuetzSat, YahLive, O3b Networks, and Solaris Mobile. See
http://www.ses.com/4336990/companies.
76 SES Press Release, "SES sets signs for further growth," Sept. 9, 2011, available at
http://www.ses.com/4233325/news/2011/7725000.
77 The four New Skies satellites on the Permitted List are: NSS-7 at 20 W.L., NSS-703 at 47.05 W.L.,
NSS 806 at 40.5 W.L., and NSS-9 at 177 W.L.
78 Any of the 7873 earth stations that have ALSAT authority can communicate with New Skies satellites
that appear on the Permitted List, in the conventional C- and Ku- bands, without any further authorization.
See note 69, supra.
79 See, e.g., Knight Sky Consulting and Associates, Application for License, IBFS File No. SES-LIC-
20120427-00399 (grant of authority on June 21, 2012), Globecomm Systems, Inc., Application for
Modification, IBFS File No. SES-MOD-20120426-00398 (grant of authority on June 22, 2012), MTN
License Corp., Application for Modification, IBFS File No. SES-MFS-20120409-00346 (grant of authority
on July 11, 2012), SES Americom, Inc., Application for Modification, IBFS File No. SES-MFS-20120525-
00476 (grant of authority on Sept. 6, 2012), Globecomm Systems, Inc., Application for Modification, IBFS
File No. SES-MOD-20120913-00824 (grant of authority on Sept. 19, 2012), SES Americom, Inc.,
Application for Modification, IBFS File No. SES-MOD-20120824-00783 (grant of authority on Oct. 19,
2012), Stratos Offshore Services Company, Application for Modification, IBFS File No. SES-MOD-
20121019-00945 (grant of authority on Dec. 4, 2012), Americom Government Services, Inc., Application
(continued ...)
14

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Status of Comsat


The ORBIT Act terminated ownership restrictions on COMSAT Corporation
(Comsat), as mandated by the Communications Satellite Act of 1962. As a result,
Lockheed Martin and Comsat jointly filed an application with the Commission for
transfer of control of Comsat's various licenses and authorizations. On July 31,
2000, the Commission found that Lockheed Martin's purchase of Comsat was in the
public interest and authorized Comsat to assign its FCC licenses and authorizations to
a wholly-owned subsidiary of Lockheed Martin Corporation.80
On December 18, 2001, the Commission granted requests by Lockheed Martin
Global Telecommunications, COMSAT Corporation, and COMSAT General
Corporation, together with Telenor Satellite Services Holdings, Inc., Telenor
Satellite, Inc., and Telenor Broadband Services, to assign certain Title II common
carrier authorizations and Title III radio licenses held by COMSAT to Telenor.81 The
assignment was in connection with Telenor's acquisition of Comsat Mobile
Communications (CMC), a business unit of COMSAT Corporation. On January 11,
2002, Telenor completed its purchase of substantially all of the assets of CMC, and
all of CMC's licenses and authorizations were transferred to Telenor pursuant to
Commission authorization.82
On October 25, 2002, the Commission granted Comsat and Lockheed Martin's
jointly filed applications to assign four non-common carrier earth station licenses and
an Experimental License to Intelsat.83

(Continued from previous page)
for License, IBFS File No. SES-LIC-20120829-00790 (grant of authority on Jan. 10, 2013), Knight Sky
Consulting and Associates, Application for License, IBFS File No. SES-LIC-20130118-00064 (grant of
authority on Mar. 19, 2013).
80 Lockheed Martin Corporation, Comsat Government Systems, LLC, and Comsat Corporation,
Applications for Transfer of Control of Comsat Corporation and Its Subsidiaries, Licensees of Various
Satellite, Earth Station, Private Land Mobile Radio and Experimental Licenses, and Holders of
International Section 214 Authorizations,
Order and Authorization, 15 FCC Rcd 22910 (2000), erratum, 15
FCC Rcd 23506 (2000); recon. denied, 17 FCC Rcd 13160 (2002).
81 Lockheed Martin Global Telecommunications, Comsat Corporation, and Comsat General Corporation,
Assignor and Telenor Satellite Mobile Services, Inc. and Telenor Satellite, Inc., Assignee, Applications for
Assignment of Section 214 Authorizations, Private Land Mobile Radio Licenses, Experimental Licenses,
and Earth Station Licenses and Petition for Declaratory Ruling Pursuant to Section 310(b)(4) of the
Communications Act,
Order and Authorization, 16 FCC Rcd 22897 (2001), erratum, 17 FCC Rcd 2147
(2002).
82 Comments Invited on Telenor Satellite Services Holdings, Inc. Petition for Declaratory Ruling on
Inapplicability of Cost Accounting Requirements
, Public Notice, 17 FCC Rcd 2444 (Int'l Bur. 2002).
83 Lockheed Martin Corporation, COMSAT Corporation, and COMSAT Digital Teleport, Inc., Assignors,
and Intelsat, Ltd., Intelsat (Bermuda), Ltd., Intelsat LLC and Intelsat USA License Corp., Application for
Assignment of Earth Station and Wireless Licenses and Section 214 Authorizations and Petition for
Declaratory Ruling,
IB Docket No. 02-87, Order and Authorization, 17 FCC Rcd 27732 (Int'l Bur. &
Wireless Tel. Bur. 2002).
15

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On October 29, 2004, Intelsat, Ltd completed the acquisition of the COMSAT
General businesses from COMSAT General Corporation, COMSAT New Services,
Inc., and Lockheed Martin.84 The Commission approved the acquisition subject to
compliance by Intelsat subsidiaries with the terms of the Intelsat Commitment letter
with the Criminal Division of the U.S. Department of Justice, the U.S. Department of
Homeland Security, and the Federal Bureau of Investigation.85

Direct Access


Section 641(a) of the ORBIT Act requires that users and service providers be
permitted to obtain Level 3 direct access to INTELSAT capacity.86 Previously, the
Commission decided in a rulemaking proceeding, that Level 3 direct access is in the
public interest.87 The concept of direct access became moot with INTELSAT
privatization on July 18, 2001, because Intelsat, as a private company, does not have
Signatories.
Prior to INTELSAT's privatization, the Commission implemented the requirement in
Section 641(b) of the ORBIT Act that the Commission complete a rulemaking "to
determine if users or providers of telecommunications services have `sufficient
opportunity' to access INTELSAT space segment directly from INTELSAT to meet
their service or capacity requirements."88 In September 2000, the Commission
released a Report and Order requiring Comsat to "enter into negotiation with direct
access customers on options to make capacity available where it is clear that there is
insufficient capacity available that is not controlled by Comsat."89
On March 13, 2001, Comsat submitted a report detailing the results of its
negotiations and maintaining that direct access opportunities are increasing for those
who want them. For example, the negotiations resulted in a commercial agreement

84 Intelsat, Ltd. Form 20-F, Annual Report Pursuant to Section 13 or 15(d) of the Securities and Exchange
Act of 1934 for the fiscal year ended December 31, 2004
, at 94.
85 Applications of Comsat General Corporation, Lockheed Martin Global Telecommunications LLC,
Comsat New Services, Inc., Intelsat LLC, and Intelsat MTC LLC to Assign Licenses and Authorizations and
Request for a Declaratory Ruling on Foreign Ownership, Authorizations Granted
, Public Notice, 19 FCC
Rcd 21216 (Int'l Bur. 2004).
86 47 U.S.C. 765(a). "(a) ACCESS PERMITTED.--Beginning on the date of enactment of this title, users
or providers of telecommunications services shall be permitted to obtain direct access to INTELSAT
telecommunications services and space segment capacity through purchases of such capacity or services
from INTELSAT. Such direct access shall be at the level commonly referred to by INTELSAT, on the date
of enactment of this title, as `Level III'." Level 3 direct access permits non-signatory users and service
providers to enter into contractual agreements with INTELSAT for space segment capacity at the same
rates that INTELSAT charges its Signatories without having to use a Signatory as a middleman. Direct
Access to the INTELSAT System,
IB Docket No. 98-192, Report and Order, 15 FCC Rcd 15703 (1999)
(Direct Access Order).
87 See generally Direct Access Order, note 86, supra.
88 47 U.S.C. 765(b).
89 Availability of INTELSAT Space Segment Capacity to Users and Service Providers Seeking to Access
INTELSAT Directly,
IB Docket No. 00-91, Report and Order, 15 FCC Rcd 19160 (2000).
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between Comsat and WorldCom. The Commission placed Comsat's report on public
notice, including Comsat's request to terminate the proceeding.90 With INTELSAT's
privatization and Intelsat Ltd.'s purchase of Comsat,91 on November 21, 2002, the
Commission released an Order that concluded that the underlying basis for Section
641(b) no longer existed, and terminated the proceeding.92 In terminating the
proceeding, the Commission noted that the termination does not imply any abdication
of the Commission's appropriate oversight of Intelsat Ltd., and that as a U.S.
licensee, Intelsat Ltd. will be subject to the same Commission oversight as any
similarly-situated company authorized to provide services in the United States.

Regulatory Fees


The ORBIT Act authorizes the Commission "to impose similar regulatory fees on the
United States signatory which it imposes on other entities providing similar
services."93 On July 10, 2000, the Commission released an Order concluding that
Comsat should pay a proportionate share of the fees applicable to holders of Title III
authorizations to launch and operate geosynchronous space stations.94 Consistent
with past decisions, the Commission stated that the costs attributable to space station
oversight include costs directly related to INTELSAT signatory activities and are
distinct from those recovered by other fees that Comsat pays, such as application
fees, fees applicable to international bearer circuits, fees covering Comsat's non-
Intelsat satellites, and earth station fees.95 In 2002, the Circuit Court of Appeals for
the District of Columbia held that the Commission's actions to impose regulatory
fees on Comsat were justified on the basis that the underlying policy of Section 9 of
the Communications Act of 1934, as amended, favoring recovery of regulatory costs
gave the Commission good reason to require Comsat to bear its proportionate share
of space station fees.96
Post-privatization, Intelsat, as a U.S. licensee, has paid the required regulatory fees
mandated by Section 9 of the Communications Act of 1934.

90 Satellite Policy Branch Information: Availability of Intelsat Space Segment Capacity to Users and
Service Providers Seeking to Access Intelsat Directly
, Public Notice, Report No. SPB-166 (Int'l Bur., rel.
Apr. 6, 2001).
91 On October 25, 2002, the Commission approved the assignment of various earth station licenses, private
land mobile radio licenses and international 214 applications from Comsat Corporation to Intelsat, Ltd.
92 Availability of INTELSAT Space Segment Capacity to Users and Service Providers Seeking to Access
INTELSAT Directly,
IB Docket No. 00-91, Order, 17 FCC Rcd 24242 (2002).
93 47 U.S.C. 765a(c). A 1999 decision of the United States Court of Appeals for the District of Columbia
Circuit in PanAmSat Corp. v. FCC, 198 F.3d 890 (D.C. Cir. 1999) set aside and remanded the
Commission's 1998 fee order, which did not assess a fee against Comsat.
94 In re Assessment and Collection of Regulatory Fees for Fiscal Year 2000, MD Docket No. 00-58,
Report and Order, 15 FCC Rcd 14478 17 (2000).
95 Id.
96 See Comsat Corporation v. FCC and PanAmSat Corp., 283 F.3d 344 (D.C. Cir. 2002).
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B. Status of INTELSAT Privatization

Intelsat privatized and became a U.S. licensee as of July 18, 2001, transferring its assets
to a commercial corporation. Pursuant to international agreement, an intergovernmental
organization known as the International Telecommunications Satellite Organization (ITSO)
remained. ITSO, through a "Public Services Agreement" with Intelsat, monitors the performance
of the company's public service obligations to maintain global connectivity and global coverage,
provide non-discriminatory access to the system, and honor the lifeline connectivity obligation to
certain customers, specifically, those customers in poor or underserved countries that have a high
degree of dependence on Intelsat.97 Under these commitments, the privatized Intelsat has made
capacity available to lifeline users at fixed pre-privatization costs for approximately 12 years.
ITSO has no operational or commercial role.
Upon privatization, substantially all of INTELSAT's operational assets and liabilities
were transferred to several companies within an affiliated group with a holding company
structure. The record before the Commission showed that the companies created fiduciary
Boards of Directors and the selection procedure for members of the Board of Directors of Intelsat,
Ltd. resulted in a Board that is compliant with the ORBIT Act. The Commission found that
privileges and immunities enjoyed by the pre-privatized INTELSAT had been terminated
consistent with the requirements of the ORBIT Act.98 The licensed companies have licenses
through notifying Administrations in countries (the United States and the United Kingdom) that
have effective competition laws and have commitments under the WTO Agreement that include
non-discriminatory access to their satellite markets.99 These companies are subject to U.S. or
U.K. licensing authorities and conduct satellite coordinations according to ITU procedures under
the auspices of these authorities.

97 INTELSAT Assembly of Parties Record of Decisions of the Twenty-Fifth (Extraordinary) Meeting, AP-
25-3E FINAL W/11/00, at 6-8 (Nov. 27, 2000).
98 47 U.S.C. 763(3) states that "such preferential treatment includes
(A) privileged or immune treatment by national governments;
(B) privileges or immunities or other competitive advantages of the type accorded INTELSAT and
Inmarsat and their signatories through the terms and operation of the INTELSAT Agreement and the
associated Headquarters Agreement and the Inmarsat Convention; and
(C) preferential access to orbital locations.
Access to new, or renewal of access to, orbital locations shall be subject to the legal or regulatory processes
of a national government that applies due diligence requirements intended to prevent the warehousing of
orbital locations.
See also Intelsat Licensing Order, 15 FCC Rcd at 15464, 7 ("As an intergovernmental organization,
INTELSAT is immune from taxes and suits in national courts, unless it waives its immunity. Its treaty
status helps ensure its access to the national markets of member countries.").
99 Applications of Intelsat LLC for Authority to Operate, and to Further Construct, Launch and Operate C-
band and Ku-band Satellites that form a Global Communications System in Geostationary Orbit
, Intelsat
LLC Supplemental Information, at 3 (Aug. 17, 2001).
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Additionally, as detailed above, at the end of 2004, the Commission authorized the
transfer of control of Intelsat's licenses and authorizations to Zeus, and the transaction was
consummated in 2005.100 Also in 2005, the Commission determined that Intelsat's certification
complied with the ORBIT Act and it could forgo an IPO and listing of securities.101 Thus, the
Commission concluded that the provisions relating to additional services under Section 602 of the
ORBIT Act were no longer applicable to Intelsat.102

II.

Views of INTELSAT Parties on Privatization

The Commission, in response to the Public Notice for this Report, has not received any
views directly from the INTELSAT Parties103 regarding privatization.

III.

Views of Industry and Consumers on Privatization

Inmarsat, Intelsat, and Robert Lindsey IV filed comments in response to the
Commission's February 4, 2013, Public Notice inviting comments related to the development of
this Report.104 Intelsat filed reply comments.

A. Inmarsat Privatization Comments

Inmarsat and Robert Lindsey IV commented on Inmarsat's privatization. Mr. Lindsey
states that Inmarsat's privatization appears to have had a positive impact on the domestic satellite
market.105 Inmarsat notes that in June 2005, the Commission found that Inmarsat had satisfied
the requirement to effectuate a substantial dilution of former Signatory financial interests.
Inmarsat further states that, shortly thereafter, Inmarsat completed a successful IPO, and that
Inmarsat's shares are traded on the London Stock Exchange. According to Inmarsat, no former
Inmarsat Signatory owns five percent or more of the company, and the aggregate ownership of
foreign governments is nominal.106
Inmarsat outlines its investments in new technologies, including its deployment of its
fourth generation, Inmarsat 4 (I-4) satellite network107 and new or evolved services that are being

100 See note 28, supra, and accompanying text.
101 See supra p.6 and note 29.
102 See note 6, supra, for the definition of "additional services."
103 The INTELSAT Parties are nations for which the INTELSAT agreement has entered into force. 47
U.S.C. 769(a)(4)(A). Following privatization, the ITSO Agreement defines "Party" to mean a State for
which the ITSO Agreement has entered into force or has been provisionally applied. See Agreement
Relating to the International Telecommunications Satellite Organization, As Amended by the Twenty-Fifth
(Extraordinary) Assembly of Parties in Washington, D.C. (Nov. 17, 2000), at Art. I(p).
104 International Bureau Information: Report to Congress Regarding the ORBIT Act, Pleading Cycle
Established,
DA 11-333, IB Docket No. 11-30, Report No. SPB-236, Public Notice, (Int'l Bur., rel. Feb.
25, 2011).
105 Robert Lindsey Comments at 1.
106 Inmarsat Comments at 1-2.
107 Id. at 2.
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offered through that network. Inmarsat also cites its announced investment in three new Ka-band
satellites to be launched in 2013 for a high bandwidth service.108

B. Intelsat Privatization Comments

Intelsat and Robert Lindsey IV filed comments regarding Intelsat's privatization. Intelsat
states that the privatization goals of the ORBIT Act have been fulfilled in that Intelsat: (1)
operates as a fully privatized company; (2) no longer claims the privileges and immunities of an
intergovernmental organization; (3) is neither directly nor indirectly owned or controlled by any
government or former signatory; and (4) is regulated by the Commission on the same basis as the
Commission regulates other providers of fixed satellite services.109
As further evidence of its transformation to a fully privatized entity, Intelsat states that
the Commission has authorized the transfer of control from Intelsat's private equity owners to a
public company.110 Intelsat states that its privatization has had a positive impact on the
communications services marketplace, and that it faces numerous and legitimate competitors,
including fiber optic cable, broadband-enabled IP applications, and terrestrial wireless
platforms.111 Intelsat also states that, in response to these competitive forces, it completed a
"capital expenditure satellite investment program" totaling $3.75 billion during the period of
2008-2012. According to Intelsat, it faces robust competition which proves that it does not enjoy
any market advantages resulting from its days as an intergovernmental organization.112
In his comments, Robert Lindsey IV requests that the House of Representatives
Committees on Commerce and International Relations, the Senate Committees on Commerce,
Science, and Transportation and Foreign Relations and the Commission conduct an investigation
into the anticompetitive allegations raised in the Eleventh ORBIT Act Report against Intelsat and
Intelsat General, its wholly-owned subsidiary.113 Mr. Lindsey also requests that Congress specify
certain conduct that would "automatically warrant immediate revocation of a license or permit
without requiring the Commission to conduct a hearing before an administrative law judge."114
Intelsat objects to Mr. Lindsey's request, stating that the ORBIT Act is not the appropriate forum
for such an investigation, and that Mr. Lindsey presents no new evidence to support these three-
year old allegations.115 Intelsat requests that the Commission disregard Mr. Lindsey's
comments.116

108 Id. at 5. See also http://www.inmarsat.com/corporate/media-
centre/newsroom/InmarsattoinvestUS1.2bninKabandnetwork.htm.
109 Intelsat Comments at 1-2.
110 Id. at 2.
111 Id. at 2-3.
112 Id.
113 Robert Lindsey Comments at 3.
114 Id.
115 Intelsat Reply Comments at 1.
116 Id.
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IV.

Impact of Privatization

Section 646 requires that the Commission report on the impact of privatization on U.S.
industry, jobs, and industry access to the global market.

A. Inmarsat

From the record, Inmarsat's privatization appears to have had a positive impact on the
domestic market.117 Inmarsat states that it has continued to invest in new technologies for mobile
satellite service customers.118 As an example of this investment, Inmarsat points to its $1.5
billion investment in its fourth-generation I-4 satellite network, which is currently providing
mobile broadband services to the United States and globally, including its BGAN service.119
Inmarsat also describes its $1.2 billion investment in three new I-5 Ka-band satellites to be
launched beginning in 2013 that will provide high-bandwidth service offerings.120
Inmarsat states that it continues to introduce new services, including its IsatPhone Pro
handheld and Low Data Rate services. In addition, Inmarsat states that its BGAN service is being
utilized in innovative ways by its customers, including in response to recent natural disasters.121
In this regard, Inmarsat also states that it has a formal agreement with the ITU to help nations
better prepare for and respond to natural disasters, and that its BGAN technology has been used
to support government and non-governmental organizations.122

B. Intelsat

In prior ORBIT Act reports, we acknowledged that Intelsat successfully transitioned from
an intergovernmental organization to a fully privatized entity, and that privatization has enabled it
to more effectively compete in providing services to U.S. commercial and governmental
customers. INTELSAT's privatization enabled it to compete freely for U.S. satellite business
opportunities, led to more competitive choices in the U.S. market than existed before
privatization, and continues to encourage the development of service offerings to U.S. customers.
As noted in the Eleventh, Twelfth, and Thirteenth ORBIT Act Reports, the Commission
received comments alleging that certain practices of Intelsat post-privatization are
anticompetitive, and therefore, the market for global satellite communications services is not fully
competitive.123 Intelsat disputes these claims. In response, the Commission stated that going

117 Inmarsat is the only commenter that discussed with detail the impact of Inmarsat's privatization.
118 Inmarsat Comments at 2, 4-5.
119 See note 54, supra, and accompanying text. BGAN provides voice and broadband service with speeds
of almost half a megabit per second using "notebook sized" antennas that are one-third the size, weight and
price of traditional Inmarsat antennas. See Inmarsat Comments at 2.
120 Id. at 5.
121 For example, Inmarsat states that its BGAN technology played a critical role in supporting government
and non-government agencies as well as international news organizations in response to global disasters
including the recent Guatemala earthquake, Philippines typhoon, and humanitarian crisis in Timbuktu,
Mali. Id. at 3.
122 Id. at 3.
123 See Section III.B., supra.
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forward, it will consider the appropriate options for addressing the anticompetitive issues raised
by commenters, consistent with our jurisdiction under the ORBIT Act and other laws. Many of
the same allegations regarding anticompetitive conduct by Intelsat were raised by commenters in
the Third Satellite Competition Report. In that Report, the Commission concluded that additional
information was needed before the anticompetitive allegations against Intelsat could be fully
addressed,124 and that this matter would be considered in a further proceeding.125 Significantly,
however, the Commission did not reach a conclusion in the Third Satellite Competition Report
regarding allegations that that Intelsat had engaged in anticompetitive conduct.126
Consequently, the Commission committed to conducting a follow-up proceeding, which
would allow us to develop a more complete record regarding the anticompetitive allegations
raised in the ORBIT Act and Satellite Competition Report proceedings.127 On June 7, 2013, the
Commission released a Notice of Inquiry that requests detailed information regarding allegations
that certain satellite operators, including Intelsat, are "warehousing" satellite orbital locations and
frequency assignments, and foreclosing competitors from purchasing bandwidth capacity on their
satellites.128

V.

Summary

The Commission has undertaken a number of proceedings required by or related to the
ORBIT Act. While the Commission believes that U.S. policy goals regarding the promotion of a
fully competitive global market for satellite communications services are being met in accordance
with the ORBIT Act, there are allegations of anticompetitive conduct that the Commission will
explore in the Notice of Inquiry. The Commission will continue to inform Congress of the
actions it takes to implement the requirements of the ORBIT Act and the impact of those actions
in its next annual report.

124 Third Satellite Competition Report, 26 FCC Rcd at 17359, 199-202.
125 Id.
126 Id. at 17359, 199-202.
127 Third Satellite Competition Report, 26 FCC Rcd at 17286, 17359, 3, 202.
128 Issues Related to Allegations of Warehousing and Vertical Foreclosure in the Satellite Space Segment,
IB Docket No. 13-13, Notice of Inquiry, FCC 13-80 (rel. June 7, 2013).
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APPENDIX
Index of Filings
Comments, filed February 11, 2013
Comments of Robert L. Lindsey IV, available at
http://apps.fcc.gov/ecfs/comment/view?id=6017163203
Comments, filed March 4, 2013
Comments of Inmarsat PLC, available at
http://apps.fcc.gov/ecfs/comment/view?id=6017166588
Comments of Intelsat License LLC, available at
http://apps.fcc.gov/ecfs/comment/view?id=6017166586
Comments, filed March 18, 2013
Comments of Intelsat License LLC, available at
http://apps.fcc.gov/ecfs/comment/view?id=6017168560
Comments, filed April 8, 2013
Comments of Chris Wilfong, available at
http://apps.fcc.gov/ecfs/comment/view?id=6017174306
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STATEMENT OF

COMMISSIONER AJIT PAI

Re:
Report to Congress Regarding the Open-Market Reorganization for the
Betterment of International Telecommunications Act (ORBIT Act)
, IB Docket No.
13-13.
Section 646 of the Open-Market Reorganization for the Betterment of
International Telecommunications Act (ORBIT Act) requires the Commission to
annually update Congress on the agency's progress in implementing the Act, even though
that statute's goal--the privatization of the satellite companies INTELSAT and
Inmarsat--has long since been achieved. This fourteenth report exemplifies why I
support efforts in Congress to pass the Federal Communications Commission
Consolidated Reporting Act (Consolidated Reporting Act). That legislation would
modernize and streamline the Commission's numerous disparate reporting obligations by,
among other things, repealing the ORBIT Act's obsolete reporting requirement. The
Consolidated Reporting Act would enable the Commission to make better use of its
limited resources. It would more closely align the Commission's responsibilities with
today's marketplace. And it would give Congress and the public a one-stop shop for
(more) relevant and comprehensive data, facilitating better oversight and more informed
policymaking.
24

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