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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 Lockheed Martin Corporation Application for Authority to Construct, Launch, and Operate a Ka-Band Satellite System in the Fixed-Satellite Service File Nos. 182 through 186-SAT-P/LA-95 ORDER AND AUTHORIZATION Adopted: May 8, 1997 Released: May 9, 1997 By the Chief, International Bureau: Introduction 1. With this Order, we authorize Lockheed Martin Corporation ("Lockheed") to launch and operate a satellite system in geostationary-satellite orbit ("GSO") to provide fixed- satellite services ("FSS") in the Ka-band. This will allow Lockheed to provide a variety of advanced broadband communication services to businesses and consumers around the world. Background 2. Lockheed, a Maryland corporation, filed an application for its "Astrolink" system with the Commission in September 1995. In the application, Lockheed proposes to construct, launch, and operate a constellation comprised of nine interconnected GSO FSS satellites located in five orbital locations around the world. It requests authority to co-locate two satellites at each of the following orbital locations: 96ø W.L; 37ø E.L., 115ø E.L. and 29ø W.L. and to locate one satellite at 168ø E.L. 3. Lockheed requests use of spectrum in the 28.35-28.6 and 29.25-30.0 GHz bands for service uplink operations and the bands 18.55-18.8 and 19.45-20.2 GHz for its service downlink operations. It also requests authority to operate inter-satellite links in the 54.25-58.2 or 59-64 GHz bands. It also proposes to operate its tracking, telemetry, and command ("TT&C") in C-band frequencies. 4. Lockheed proposes to offer services such as global Internet service, videoconferencing, distance learning, telemedicine, high-speed data networks and "bandwidth on demand." Lockheed proposes to offer services on a non-common carrier basis. 5. Each Astrolink satellite will support 68 simultaneously active channels (or transponders) on both the uplink and downlink. Sixty-four of these channels, each 125 MHz bandwidth, will be allocated to the user terminal frequency band, and four channels, each 250 MHz will be allocated to the gateway terminal frequency band. Lockheed proposes to use multiple spot beam coverage, on-board processing, and orthogonal polarization. A Time Division Multiplexed (TDM)/Frequency Division Multiple Access (FDMA) scheme is to be used on the user terminal uplinks. On user terminal downlinks, a 130 Mbps TDM signal will be transmitted in each beam from each satellite. 6. Several other GSO FSS applicants filed pleadings in response to Lockheed's application. As further discussed below, these pleadings were subsequently withdrawn by all of the GSO FSS applicants. Motorola Satellite Communications, Inc. also filed a petition to deny all of the GSO FSS Ka-band applications, arguing that grant would conflict with its requested frequencies for feeder links for its "Big LEO" system. These concerns are resolved by the 28 GHz band plan. Relevant Domestic Decisions 1. Orbital Assignments 7. In January 1996, the Commission, in the DISCO I Report and Order, abolished all distinctions between U.S. domestic satellites and international separate system satellites. This allows all U.S.-licensed satellites to provide any mix of domestic or international satellite services they choose, subject only to the licensee obtaining all applicable international approvals and authorizations by other administrations to provide service to, from, or within their respective territories. Therefore, all FSS licensees in the Ka-band are permitted to provide any combination of domestic and international services without obtaining separate approval from the Commission for specific service areas. 2. 28 GHz Band Segmentation Decision 8. In July 1996, the Commission adopted a band plan for U.S. commercial operations in the Ka-band. This band plan designates discrete band segments in the 17.7-20.2 GHz and 27.5-30.0 GHz frequency bands for the Local Multipoint Distribution Service ("LMDS"), the fixed service, the GSO FSS service, the non-geostationary satellite orbit ("NGSO") FSS service, and feeder links for certain NGSO mobile satellite service (MSS) systems. Of the total 2.5 GHz of spectrum available in each transmission direction, we concluded, based on the representations of the GSO FSS applicants, that 1 GHz of spectrum in both transmission directions was needed to support GSO FSS systems. The 28 GHz band plan designates the following frequencies for U.S. commercial GSO FSS systems. We have also noted any other services that are designated in the band plan to share the band on an equal basis: GSO FSS-Designated Band Segment Other Co-Primary Designations 17.7-18.8 GHz (downlink) Fixed 19.7-20.2 GHz (downlink) 28.35-28.6 GHz (uplink) 29.25-29.5 GHz (uplink) NGSO MSS feeder links 29.5-30.0 GHz (uplink) 3. Orbital Assignments 9. In May 1996, the International Bureau, acting on delegated authority, assigned orbit locations to those 28 GHz GSO FSS applicants in the first processing round that proposed to provide international FSS from their GSO systems. This assignment plan was the result of the GSO FSS applicants' successful efforts to resolve their conflicts over orbit locations for satellites in the 62ø W.L. to 175.25ø E.L. region of the orbital arc. In the Assignment Order, we indicated that the assignments were conditioned on the grant of the domestic assignments. Specifically, the May 1996 Ka-Band Assignment Order assigned locations to Lockheed at 21.5ø W.L.; 38ø E.L.; 130ø E.L and 175.25ø E.L. 10. In February 1997, the first-round GSO FSS applicants, due to their continued efforts, reached an agreement regarding conflicts over locations in the remainder of the orbital arc. Specifically, this agreement covered locations between 67ø W.L. to 148ø E.L., which are best suited for providing service to the United States. As part of this agreement, the GSO FSS applicants also agreed to withdraw their petitions to deny and other pleadings filed with respect to each others' 28 GHz band applications. This agreement effectively eliminated all obstacles to quick grant of the GSO FSS applications. By a separate Order issued today, we adopt an Assignment Plan implementing the orbital assignment agreement. The Assignment Plan assigns one additional location to Lockheed at 97ø W.L. Discussion A. Qualifications 11. Before the Commission authorizes any space station applicant, we first need to determine whether an applicant is legally, technically, and financially qualified to hold a Commission license. The rules set forth in Part 25 of the Commission's rules governing the FSS apply, in general, to FSS systems in the Ka-band. We recognize we will need to modify these rules, to some extent, to incorporate operations at 28 GHz. Such modifications are the subject of an ongoing rulemaking. We expect to release a Report and Order in this proceeding shortly. Nevertheless, because Lockheed's system is not mutually exclusive with any other U.S. commercial satellite application on file, and can be evaluated under current Part 25 rules, we do not view the rulemaking as a bar to considering Lockheed's license now. Rather, we will condition any grant to Lockheed on it complying with all rules adopted in the 28 GHz Band Satellite Report and Order. Financial Qualifications 12. Although financial qualification requirements for GSO FSS systems will be discussed in greater detail in the forthcoming 28 GHz Band Satellite Report and Order, the Commission has in the past, based financial requirements for satellite services on the basis of entry opportunities in the particular service being licensed. In cases where we can accommodate all pending applications and where there is sufficient remaining capacity to address additional requests that may arise, we have not looked to current financial ability as a prerequisite to a license grant. This is because the grant of an authorization to one applicant will not prevent another qualified applicant from going forward with a proposal in the same service. We ensure that licensees timely build their systems by requiring them to meet specified implementation milestones. In contrast, where applications for satellites exceed the number of satellites we can accommodate, we have adopted a standard that requires applicants to demonstrate evidence of internal assets or committed financing sufficient to cover construction, launch, and first year operating costs. This is based on our experience that under-financed licensees have significant difficulty in raising the requisite financing. 13. Because all of the first-round 28 GHz GSO applicants agreed to orbit locations, and because other orbit locations remain available for additional GSO FSS satellites, authorization of all proposed systems does not preclude use of this band by other applicants for GSO FSS systems. Consequently, it is not necessary to rule on any of the first-round 28 GHz applicants' financial qualifications. We previously granted a similar waiver to Norris Satellite, Inc., which was awarded a license to provide satellite services in the 28 GHz band in 1992. We intend to rigorously enforce the system milestone schedule to ensure that Lockheed proceeds in a timely manner and does not tie up valuable orbital locations and spectrum to the exclusion of other qualified applicants. Technical Qualifications 14. Applicants for space station authorization also must meet certain technical qualification requirements. In its application, Lockheed represents that it intends to operate under the existing technical rules for the FSS in Part 25 of the Commission's rules. After examining its application, it appears Lockheed can do so. As noted, however, we will need to modify these rules somewhat, to incorporate operations in the 28 GHz band. For example, we envision that we will need to modify the definition of full frequency reuse for systems employing circular polarization. Nothing in Lockheed's application suggests its system will not be able to operate within modified Part 25 technical parameters. Rather than delaying action on Lockheed's application until these modifications are adopted, we condition Lockheed's authorization on it complying with the forthcoming rules concerning technical qualifications for GSO FSS systems in the 28 GHz band. B. Spectrum Issues 15. In the following text we discuss specific issues related to the frequency bands Lockheed proposes for its service uplinks, service downlinks, its inter-satellite links, and its TT&C functions during transfer operations. Service Uplinks 16. As noted, the 28 GHz band plan designates 1000 MHz of spectrum in the 28.35-28.6 and the 29.25-30.0 GHz band for uplink GSO FSS operations. Two hundred fifty megahertz of this spectrum at 29.25-29.5 GHz is to be shared on a co-primary basis with NGSO MSS feeder links. In its application, Lockheed proposes to use spectrum at 28.35-28.6 and 29.25-30 GHz for its service uplinks. 17. Lockheed's request is consistent with the band plan and we therefore grant Lockheed authority to operate in those bands in the United States. Operations in the shared 250 megahertz are, of course, subject to the sharing rules adopted in the 28 GHz Band First Report and Order. Service Downlink Bands 18. The 28 GHz band plan designates the 17.7-18.8 GHz and 19.7-20.2 GHz bands for GSO FSS operations, with the entire 17.7-18.8 GHz band to be shared on a co-primary basis with the fixed service. In adopting the band plan, we noted that GSO FSS operations in the 17.7-18.8 GHz band will be restricted by: the need to protect the broadcast satellite service in the 17.7-17.8 GHz band segment (after April 2007), power flux density limits to protect the earth exploration-satellite service in the 18.6-18.8 GHz band, and the need to coordinate with fixed services throughout the band. We concluded that the GSO FSS systems should be able to coordinate sufficient spectrum with other users within this 1.1 GHz band, to give them, together with the 500 MHz designated at 19.7-20.2 GHz, access to sufficient downlink spectrum to correspond with the 1000 MHz of uplink spectrum designated for GSO FSS in the 27.5-30.0 GHz range. 19. In its application, which it filed before the final band plan was adopted, Lockheed proposes to use 1000 MHz of spectrum at 18.55-18.8 and 19.45-20.2 GHz for its service downlinks. 20. In the interest of expediting the licensing process, we grant here that portion of Lockheed's downlink request that is consistent with the 28 GHz band plan, and where specific operating frequencies can be authorized. Specifically, we authorize Lockheed to operate a system with service downlinks in the 19.7-20.2 GHz band. We will not give Lockheed operating authority in its other requested downlink bands at this time. First, its request to use 19.45-19.7 GHz is inconsistent with the band plan and will be denied. Second, although its request to use 18.55-18.8 GHz is compatible with the plan, it is premature to grant operating authority in any portion of the GSO FSS-designated 17.7-18.8 GHz band. As noted, this 1.1 GHz of spectrum is to be shared on a co-primary basis with other services, constraining GSO FSS operations in this band and requiring coordination with other users. Nevertheless, we anticipate that GSO FSS licensees will be able to identify and coordinate 500 MHz in this band to give these systems a total of up to 1000 MHz in each transmission direction. Lockheed has asked for 1000 MHz of downlink spectrum. We have already authorized it operating authority for 500 MHz at 19.7-20.2. Once Lockheed has determined exactly which 500 MHz it wishes to use in the 17.7-18.8 GHz band, it should file a modification application to operate on these frequencies. In the interim, Lockheed is of course free to begin construction in these bands at its own risk. 21. In addition, Lockheed must coordinate with the U.S. Government systems operating in the 17.7-18.8 and 19.7-20.2 GHz bands in accordance with footnote US 334 to the Table of Frequency Allocations. This footnote requires coordination of commercial systems with U.S. Government systems in the 17.8-20.2 GHz band. Transfer Orbit TT&C 22. Lockheed proposes to conduct its TT&C operations in the C-band during its launch and early operations phase, and during any periods of emergencies. Specifically Lockheed proposes to operate its command signals at 6.425 GHz and its telemetry transmitters at 3.700 and 4.200 GHz. However, Lockheed indicates that all proposed TT&C frequencies are subject to adjustment as a result of frequency coordination with other users. 23. Under the U.S. Table of Frequency Allocations, TT&C operations may be provided in frequency bands allocated to the Space Operations Service or within the bands in which the particular satellite system will be providing service. Lockheed proposes to conduct transfer orbit TT&C functions for its 28 GHz system in the C-band, which is neither allocated to the Space Operations Service nor is the system's service band. Consequently, the proposed TT&C operations would constitute a non-conforming use of the Table of Frequency Allocations. The Commission has, however, permitted non-conforming uses in situations where the non-conforming use would not interfere with any conforming service and grant would otherwise serve the public interest. Here, Lockheed would make only temporary use of the C-band, and would do so because there is no Ka-band global network yet in place by which it can monitor a satellite's launch and early operations. Nevertheless, Lockheed has not provided a technical showing that it can conduct C-band TT&C operations on a non- interference basis. Thus, we will not grant Lockheed's request. If Lockheed wishes to pursue C-band transfer orbit operations, it must file a modification application in which to do so, accompanied by either (1) an exhibit demonstrating Lockheed's operations will not interfere with other conforming operations in the band; or (2) a showing that it has successfully coordinated its proposed operations with all affected operators in the band. Inter-Satellite Links 24. Lockheed plans to use inter-satellite links between adjacent Astrolink satellites to provide connectivity between the coverage regions of different satellite orbit locations. Lockheed proposes either the 54.25-58.2 or 59-64 GHz band for these operations. We are not now in a position, however, to assign specific spectrum to Lockheed for inter-satellite link service. The 59-64 GHz band is allocated domestically and internationally on a co-primary basis to the inter-satellite service, the fixed service, the mobile service, and the radiolocation service. These bands are also shared on a co-equal basis with U.S. Government operations. There appear to be significant interference problems associated with commercial GSO and NGSO operations and U.S. Government operations at 59-64 GHz. 25. Licensing inter-satellite link operations in the 54.25-58.2 GHz band, however, is similarly premature. This band is allocated domestically and internationally on a co- primary basis to the earth exploration-satellite service, fixed, mobile, space research and inter- satellite services. Use of these bands is shared on a co-equal basis between U.S. Government operations and commercial operations. GSO FSS operators must meet a power flux density (pfd) limit at any altitude between 0 and 1000 kilometers in order to protect passive NGSO satellite systems. The appropriate pfd limit is the subject of study within the ITU Radiocommunication Sector and will be finalized at WRC-97. Any GSO FSS inter-satellite link operation in these bands would be subject to coordination with U.S. Government operations in the band and the appropriate pfd limit. 26. The Commission and the National Telecommunications and Information Administration (NTIA), which has primary jurisdiction over U.S. Government use of spectrum, have had discussions regarding the interference problems that would be associated with commercial GSO FSS inter-satellite service operations at 54.25-58.2 GHz and 59-64 GHz. The 54.25-58.25 GHz band appears more promising for commercial GSO FSS inter- satellite service operations. We are also working with NTIA to develop a U.S. proposal for WRC-97 for an allocation in the 65-71 GHz band for inter-satellite service links for NGSO and GSO FSS systems. We are optimistic that we will obtain sufficient spectrum internationally to support the inter-satellite link operations of all licensed 28 GHz band systems. Once suitable spectrum is available, we will allow Lockheed to revise its requested inter-satellite link bands accordingly. 27. Nevertheless, we will not delay Lockheed's license pending the allocation of suitable spectrum for inter-satellite links. We will require Lockheed to apply for operating authority on specific operating frequencies once these frequencies have been identified. Further, because Lockheed will not be able to proceed beyond the initial phases of construction until the inter-satellite link issues are resolved, we will not impose any system implementation milestones until we grant Lockheed authority to launch and operate a GSO FSS system using specific inter-satellite link spectrum. Although we are not imposing specific milestones at this time, we will hold Lockheed to a strict milestone schedule once its inter-satellite links frequencies are authorized. Specific implementation milestones for 28 GHz band satellite systems will be discussed further int he 28 GHz Band Satellite Report and Order. In the interim, Lockheed is, of course, free to begin construction at its own risk. C. Regulatory Treatment 28. In our DISCO I Report and Order, we determined that all fixed-satellite operators in the C-band and Ku-band could elect to operate on a common carrier or non- common carrier basis. As we will discuss in more detail in the 28 GHz Satellite Report and Order, we see no reason to treat Ka-band FSS licensees differently. Lockheed proposes to operate its services on a non-common carrier basis. 29. The Commission traditionally has evaluated requests to operate on a non- common carrier basis using the analysis set forth in National Association of Regulatory Utility Commissioners v. FCC, (NARUC I). Under NARUC I, we may regulate an entity as a private carrier unless: (1) there is or should be any legal compulsion to serve the public indifferently; or (2) there are reasons implicit in the nature of the service to expect that the entity will in fact hold itself out indifferently to the eligible user public. 30. We have already authorized one 28 GHz FSS operator in the United States. Today we are authorizing thirteen more. Dozens of FSS satellites are now operating in the C- and Ku-band. In addition, the recent World Trade Organization agreement will open the U.S. market to foreign licensed satellites. Thus, with respect to the first prong of NARUC I, sufficient competitive capacity is and will continue to be available to assure the U.S. public access to FSS. With regard to the second prong of NARUC I, we see no reasons why 28 GHz operators will hold themselves out indifferently to the public. We will therefore allow Lockheed to operate on a non-common carrier basis. D. International Coordination 31. In general, we will follow the applicable advance-publication, coordination, and notification procedures as set forth in the ITU Radio Regulations in coordinating Lockheed's satellites with other affected administrations. We will discuss in more detail international coordination procedures among U.S.-licensed FSS Ka-band systems, both GSO and NGSO, in the 28 GHz Band Satellite Report and Order. E. Exclusive Arrangements 32. To facilitate global competition, we are planning to adopt limitations on 28 GHz FSS licensees' ability to enter into exclusive arrangements with other countries. These restrictions will be discussed in more detail in the 28 GHz Band Satellite Report and Order on service rules. We intend to construe these arrangements bearing in mind that spectrum coordination and availability in particular countries may limit the ability of 28 GHz licensees to provide service to those countries. Accordingly, Lockheed must comply with any such restrictions adopted. Conclusion 33. Accordingly, upon review of Lockheed's application to implement a global 28 GHz GSO satellite system to provide domestic and international FSS, we find that Lockheed is qualified to be a Commission licensee and that, pursuant to Section 309 of the Communications Act of 1934, as amended, 47 U.S.C.  309, grant of this application will serve the public interest, convenience, and necessity. As specified in the Assignment of Orbital Locations to Space Stations in the Ka-Band, we have assigned Lockheed to the 97ø W.L, 21.5ø W.L, 38ø E.L., 130ø E.L., and 175.25ø E.L. orbital locations. Ordering Clauses 34. IT IS ORDERED that Application File Nos. 182 through 186-SAT-P/LA-95, ARE GRANTED, and Lockheed Martin Corporation IS AUTHORIZED to launch and operate nine GSO FSS satellites, to provide fixed-satellite service in the United States in the frequency bands 19.7-20.2, 28.35-28.6 and 29.25-29.5 GHz, in accordance with the Assignment of Orbital Locations to Space Stations in the Ka-Band, DA 97-967 (adopted May 8, 1997), consistent with the Commission's Part 25 rules governing satellite operations, unless specifically waived herein, and any modifications to our rules that we adopt for 28 GHz GSO FSS systems in the forthcoming 28 GHz Band Satellite Report and Order. 35. IT IS FURTHER ORDERED that Lockheed Martin Corporation must comply with all rules to be adopted for GSO FSS systems in the 28 GHz Band Satellite Report and Order and must file a letter with the Commission, within 60 days of the effective date of this Report and Order, representing that it will construct its system in compliance with any rules adopted in this Report and Order. Failure to submit such a letter within this time frame is grounds for rendering this authorization null and void. 36. IT IS FURTHER ORDERED that Lockheed Martin Corporation must coordinate all of its Ka-band downlink operations with the U.S. Government systems in accordance with footnote US334 to the Table of Frequency Allocations, 47 C.F.R.  2.106. 37. IT IS FURTHER ORDERED that the license term for each space station is ten years and will begin to run on the date Lockheed Martin Corporation certifies to the Commission that the satellite has been successfully placed into orbit and the operations fully conform to the terms and conditions of this authorization. 38. IT IS FURTHER ORDERED that this authorization is subject to the completion of consultations under Article XIV of the INTELSAT Agreement. Upon completion of these consultations, and notification by the Department of State that the United States has fulfilled its international obligations with respect to INTELSAT, no further action by this Commission will be required. 39. IT IS FURTHER ORDERED that Lockheed Martin Corporation will prepare any necessary submissions to the International Telecommunication Union (ITU) and to affected administrations for the completion of the appropriate coordination and notification obligations for these space stations in accordance with the ITU Radio Regulations. We also remind all licensees that no protection from interference caused by radio stations authorized by other Administrations is guaranteed unless coordination procedures are timely completed or, with respect to individual administrations, by successfully completing coordination agreements. Any radio station authorization for which coordination has not been completed may be subject to additional terms and conditions as required to effect coordination of the frequency assignments of other Administrations, 47 C.F.R.  25.111(b). 40. IT IS FURTHER ORDERED that the temporary assignment of any orbital location to Lockheed Martin Corporation is subject to change by summary order of the Commission on 30 days' notice and does not confer any permanent right to use the orbit and spectrum. Neither this authorization nor any right granted by this authorization, shall be transferred, assigned or disposed of in any manner, voluntarily or involuntarily, or by transfer of control of any corporation holding this authorization, to any person except upon application to the Commission and upon a finding by the Commission that the public interest, convenience and necessity will be served thereby. 41. IT IS FURTHER ORDERED that Lockheed Martin Corporation 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. 42. 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 Peter F. Cowhey Chief, International Bureau