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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 the Application of ) ) VOLUNTEERS IN TECHNICAL ) File Nos. 29-SAT-AMEND-95 ASSISTANCE ) 102-SAT-AMEND-95 ) 9-SAT-AMEND-98 For Authorization to Construct, ) Launch and Operate a Non-Voice, ) Non-Geostationary Mobile Satellite ) System in the 148-150.05 MHz and ) 400.15-401 MHz Frequency Bands ) ORDER AND AUTHORIZATION Adopted: March 31, 1998 Released: March 31, 1998 By the Chief, International Bureau: I. Introduction 1. By this order and authorization ("Order"), we authorize Volunteers in Technical Assistance ("VITA") to launch and operate an additional satellite in its non-voice, non- geostationary mobile satellite service ("NVNG MSS" or "Little LEO") system in low Earth orbit in the 149.81-149.9 MHz uplink and the 400.5983-400.645 MHz downlink frequency bands. VITA is a non-profit, humanitarian aid organization that provides services to developing nations around the world. VITA's Little LEO system will provide educational, health, environmental, disaster relief, and data technical communications services in developing countries. Grant of VITA's application will serve the public interest, convenience and necessity by providing low-cost satellite services for humanitarian purposes to developing countries. II. Background 2. In 1990, Orbital Communications Corporation ("Orbcomm") filed an application to construct, launch and operate a Little LEO system. Subsequently, Starsys Global Positioning, Inc. ("Starsys") and Volunteers In Technical Assistance, Inc. ("VITA") filed applications for Little LEO systems. The Commission considered these three applications together in what is referred to as the first Little LEO processing round (the "first processing round"). In the first processing round, the Commission instituted a negotiated rulemaking committee to consider sharing proposals and technical rules to govern the Little LEO service. During these negotiations, Orbcomm, Starsys and VITA reached agreement on a spectrum sharing plan that would enable all three applicants to implement their systems in the available spectrum. The negotiated rulemaking committee used this spectrum sharing plan to issue a report that became the basis for the rules and policies adopted by the Commission (the "First Processing Round Report and Order") to govern the licensing of Little LEO systems in the first processing round. Orbcomm was issued the first Little LEO license in October 1994. The first processing round concluded when VITA and Starsys were issued Little LEO licenses in July and November 1995, respectively. VITA launched a satellite in conformance with its first processing round authorization (as modified to account for an initial launch failure) on September 23, 1997. The satellite is still in a pre- operational stage and has not yet become fully functioning. 3. Before the conclusion of the first processing round, Leo One USA, L.P. ("Leo One") filed an application requesting authority to construct and operate a Little LEO system in the 148-150.05 MHz uplink and the 137-138 MHz downlink frequency bands to provide Little Leo services to customers world-wide. In September 1994, we placed Leo One's application on public notice. The public notice established a "cut-off" date for filing applications to be considered concurrently with that of Leo One. This action commenced the second Little LEO processing round (the "second processing round"). Several parties filed applications for new Little LEO systems in response to this public notice. In addition, Orbcomm and VITA filed modifications to their proposed first processing round Little LEO systems. In its modification, VITA (i) sought authority to construct, launch, and operate the satellite that had been proposed in the first processing round as a ground spare, and (ii) requested access to all frequencies in the 148-150.05 MHz, 137-138 MHz, and 400.15-401 MHz frequency bands. We accepted the new applications, and modification applications filed by Orbcomm and VITA, in the second processing round. We also deferred to the second processing round consideration of a Starsys amendment to its original application, filed April 25, 1994, after the "cut-off" date for filing applications in the first processing round. 4. Unlike the first processing round, where sufficient spectrum existed to accommodate the requests of all the applicants, insufficient spectrum existed to accommodate the eight Little LEO systems proposed by second processing round applicants. Portions of the available spectrum, the 148-150.05 MHz uplink and 137-138 MHz and 400.15-401 MHz downlink frequency bands, were licensed to Orbcomm, Starsys and VITA in the first processing round. In addition, as addressed previously in the first processing round, the downlink frequency bands were shared with U.S. Government users. Specifically, the National Oceanic and Atmospheric Administration ("NOAA") is operating a meteorological satellite system in the 137- 138 MHz downlink frequency band. Also, the Department of Defense's ("DoD") Department of Air Force has been planning to implement a meteorological satellite system in the 400.15-401 MHz downlink frequency band for national security purposes. Because the U.S. government meteorological satellite service was allocated on a primary or co-primary basis in these bands, second processing round Little LEO licensees would be required to share these bands with the NOAA and DoD meteorological satellite systems. In light of the limited spectrum available to second processing round applicants after the conclusion of the first processing round, and the required sharing between the NOAA and DoD meteorological satellite systems and the second processing round Little LEO systems, we initiated a Notice of Proposed Rulemaking (the "Notice") to develop rules and policies to govern the licensing and operation of second processing round Little LEO systems in this sharing environment. 5. Generally, the Notice proposed to: (i) exclude first processing round licensees from participation in the second processing round in order to open Little LEO service markets to new entrants; (ii) license up to three new Little LEO systems in the second processing round with specific frequency band regimes identified for each of the three systems; (iii) establish procedures that would require second processing round licensees to protect the operations of the NOAA and DoD meteorological satellite systems; and (iv) use auctions to resolve mutual exclusivity among second processing round applicants. All eight applicants and other interested parties commented on the proposals in the Notice. Subsequently, two applicants withdrew from the second processing round and another applicant acquired the satellite operations of a third applicant. 6. On September 22, 1997, the remaining applicants filed with the Commission a mutually agreed upon spectrum sharing plan (the "Joint Proposal") that accommodated all remaining second processing round applicants in the available spectrum. Generally, the spectrum sharing plan requires that the applicants share the 148-150.05 MHz uplink frequency band with the proposed French satellite system S80-1 ("S80-1"), the Russian radionavigation satellite service system ("TSYKADA") and terrestrial users of the band. The applicants agreed to share the 137-138 MHz downlink frequency band with NOAA, S80-1, the proposed Russian Meteor satellite system and terrestrial users of the band. Finally, the applicants agreed to share the 400.15-401 MHz frequency band with DoD. The Joint Proposal expressly recognized that the second processing round applicants will be required to coordinate their operations with the other users of these frequency bands. As part of the Joint Proposal, the applicants agreed to withdraw all petitions and objections against each other's pending applications. 7. On October 15, 1997, the Commission released a Report and Order (the "Report and Order") in which it concluded that with use of appropriate transmission techniques, proper system coordination, time-sharing of frequencies and the adoption of the Joint Proposal, there was sufficient spectrum to license the five remaining second processing round applicants. The Report and Order directed second processing round applicants to amend their applications to conform to the rules and policies adopted in the Report and Order. In response to this requirement, VITA filed an amendment conforming its technical proposal to the rules and policies adopted in the Report and Order (the "Conforming Amendment"). 8. VITA's Conforming Amendment, together with the conforming amendments of the other second processing round applicants, were placed on public notice. No comments were filed in response to VITA's Conforming Amendment. III. Discussion 9. Under the Communications Act of 1934, as amended (the "Act"), no person shall use or operate any apparatus for the transmission of energy or communications or signals by radio within the jurisdiction of the United States, except pursuant to a license granted by Federal authority . The Commission is authorized to grant radio licenses to qualified persons upon written application therefor. In order to grant VITA's application to launch and operate the space segment of its Little LEO system, the Commission must find that the public interest, convenience and necessity will be served by such grant. Before we can make this finding, VITA must demonstrate that it is legally, technically and financially qualified to hold a Commission license A. Qualifications 1. Technical Qualifications 10. Applicants seeking authority to launch, and operate second processing round Little LEO systems must meet the technical requirements adopted in the Report and Order. In the Report and Order, we adopted the sharing plan agreed to by the parties that would accommodate three new Little LEO systems and allow ORBCOMM and VITA to expand their systems. Specifically, we identified particular frequencies and other operating parameters for each of these systems, which we designated as System 1 (Leo One), System 2 (FAI), System 3 (E-Sat), ORBCOMM, and VITA. Consistent with the Report and Order, VITA proposes to operate a narrowband system in the 149.81-149.9 MHz uplink and the 400.5893-400.645 MHz downlink bands. a. Uplink Operations in the 149.81-149.90 MHz Band 11. Consistent with the Joint Proposal, the Report and Order requires second processing round licensees to avoid causing harmful interference to numerous satellite and terrestrial systems in the 148-149.90 MHz band. In its conforming amendment, VITA states that it will operate its second satellite in the same manner as its first satellite. VITA also indicates that its system will be capable of complying with all applicable coordination and operation requirements including Section 2.106, fn. US323, of the Commission's Rules, 47 C.F.R. 2.106. 12. Pursuant to the Report and Order, VITA's second round satellite must share the 149.81-149.90 MHz uplink band with ORBCOMM service uplink operations. VITA intends to implement co-channel sharing with ORBCOMM by using random access protocol (ALOHA) with automatic request-repeat. ORBCOMM has not raised any objections to this technique. No other potentially affected operators have raised concerns regarding VITA's uplink operation. Consequently, we authorize VITA to operate in the 149.81-149.90 MHz uplink band. We expect that any potential interference concerns that may arise can addressed in the coordination process. b. Downlink Operations in the 400.5983-400.645 MHz Band 13. Pursuant to the Report and Order, VITA's system will share the 400.5983 - 400.645 MHz bands with FAI by using time-sharing techniques. Time-sharing requires tje development and exchange of precise ephemeris data in order to predict the contours of a VITA satellite's protection area in advance of its encounter with an FAI satellite footprint operating on the same frequency channel. We expect VITA and FAI to negotiate a time-sharing scheme that would allow interference-free operation of both systems in the shared band. To this end, we will require VITA to provide ephemeris data to FAI to enable FAI to predict accurately the future location and frequency emissions of VITA satellite. We expect FAI and VITA to negotiate the most appropriate means for exchanging the ephemeris data and for establishing the accuracy of the orbital propagator algorithm. 14. VITA certifies that the maximum power flux density ("PFD") produced at the Earth's surface by its satellite in the 400.5983-400.645 MHz band will not exceed -125 dB(W/m2/4 KHz). Because VITA's system does not exceed the PFD threshold requirement for coordination with terrestrial services under the Commission's Rules, it is not required to coordinate its system with terrestrial systems. Consequently, we find VITA's proposed system meets the Commission's technical requirements. 2. Financial Qualifications 15. Consistent with Section 25.142(a)(4) of the Commission's Rules, 47 C.F.R.  25.142(a)(4), applicants for a space station authorization in the second processing round must demonstrate that they have the finances necessary to construct and launch two satellites in their system and to operate those satellite for one year. VITA has requested a waiver of the financial qualification requirement. 16. Generally, the Commission may grant a waiver when the relief requested would not undermine the policy objective of the rule in question and would otherwise serve the public interest. In light of the enormous costs involved in constructing and launching a satellite system, the Commission has always considered financial ability a significant factor in determining whether the applicant is qualified to hold a license. This stems from our repeated experience that licensees without sufficient available resources spend a significant amount of time attempting to raise the necessary financing and that those attempts often end unsuccessfully. Consequently, where a grant to an under-financed applicant may preclude a fully capitalized applicant from implementing its plans, and service to the public may be consequently delayed, we have required a stringent financial showing to ensure that the public interest would be served. 17. VITA proposes to add, in the second Little LEO processing round, one additional satellite to its licensed one-satellite system. The smallest system proposed by another Little LEO applicant is the six satellite system proposed by E-Sat; most of the other systems are comprised of constellations with more than twenty satellites. Given these considerations, it is extremely unlikely that any future applicant would be interested in implementing a one-satellite Little LEO system in the spectrum to be assigned to VITA. Thus, granting VITA a waiver of the Commission's financial qualification requirement will not preclude another fully capitalized applicant from implementing its plans. We recognize that if VITA is not able to proceed with its second satellite, existing licensees may be able to use this spectrum to expand their systems. Indeed, the Joint Proposal, while accommodating VITA's system, contemplates that VITA's spectrum will be used by another licensee if VITA is not able to go forward. Consequently, we find that the policy objectives of the financial qualification standard would not be undermined if we waived the requirement for VITA. 18. Morevoer, we have previously noted the significant public interest benefits to be derived from VITA's non-commerical humanitarian system. We rely on those same public interest benefits now in determining that a waiver of the financial qualification standards to allow VITA an opportunity to expand its licensed system with an additional satellite is in the public interest. 19. In granting this waiver, we note that we will strictly enforce the implementation milestones in this license. If VITA does not construct and launch its second satellite by the required dates, the license will become null and void and we will assign VITA's spectrum to another licensee. B. Exclusive Arrangements 20. As a Little LEO licensee, VITA must comply with the requirements of Section 25.142(d) of the Commission's Rules adopted in the Report and Order. Section 25.142(d) prohibits a Little LEO licensee from entering into exclusive arrangements with other countries concerning communications to and from the United States. The purpose of this rule is to promote competition in the Little LEO service markets in the United States. The prohibition against exclusive arrangements reduces the likelihood that a Little LEO licensee can foreclose other Little LEO licensees from serving a foreign market, providing a global service, and competing effectively with other systems that serve the United States. 21. While we recognize that spectrum coordination and availability as well as market size and commercial opportunities in a particular country may limit the number of systems that can serve a foreign country, our rules are clear that Little LEOs licensees may not acquire or enjoy any exclusive rights created by contracts or working arrangements. C. Construction and Launch Milestones 22. In the First Processing Round Report and Order, the Commission generally required a licensee to commence construction of the first two satellites in its Little LEO system within one year of grant of its license. Construction of the first two satellites must be completed within three years of grant, and launch within four years of grant. 23. Consequently, we will require VITA to adhere to the same milestone schedule required for other Little LEO licensees. Specifically, VITA must begin construction of its second satellite within one year of license grant and must launch and operate this satellite within six years of grant. Failure to meet these milestones will automatically render VITA's license for this satellite null and void. D. International Coordination 24. In general, we will follow the applicable advance-publication, coordination and notification procedures set forth in the ITU Radio Regulations and for consultation pursuant to Article 14 of the INTELSAT Agreement and Article 8 of the Inmarsat Convention in coordinating VITA's satellites and use of the frequency spectrum with other affected administrations. VITA shall provide the Commission with all information necessary to comply with these processes. In view of VITA's intention to locate earth stations and operate mobile user terminals in connection with its Little LEO system outside of the United States, the Commission will retain jurisdiction to require VITA to meet its international obligations and the obligations of other administrations. All authorizations and approvals required in connection with the operation of VITA's Little LEO system, including, but not limited to, its earth stations and mobile user terminals, in another country will remain solely within the host country's jurisdiction. IV. Conclusion 25. We find that VITA is legally, technically and financially qualified under the Commission's Rules to launch and operate one space station of its Little LEO system in those parts of the 148.81-149.9 MHz and 400.5983-400.645 MHz frequency bands that are designated for VITA in the spectrum sharing plan adopted in the Report and Order, subject to the conditions set forth in this Order. Accordingly, VITA is authorized to be a Commission space segment licensee and, pursuant to Section 309 of the Act, we find that grant of VITA's application for a second satellite will serve the public interest, convenience and necessity. V. Ordering Clauses 26. Accordingly, IT IS ORDERED, subject to the conditions set forth in this Order, that application File Nos. 29-SAT-AMEND-95, 102-SAT-AMEND-95, and 9-SAT-AMEND-98 ARE GRANTED, and Volunteers in Technical Assistance IS AUTHORIZED to launch and operate its second Little LEO satellite to provide mobile-satellite service in the United States in accordance with the frequency bands designated for Volunteers in Technical Assistance in the spectrum sharing plan adopted in the Report and Order, FCC 97-370 (released October 15, 1997), generally including the 149.81-149.9 MHz and 400.5983-400.645 MHz frequency bands, in accordance with the technical specifications set forth in its application and subject to compliance with the provisions of Parts 2 and 25 of the Commission's Rules governing frequency allocations and satellite operations, unless expressly waived by the Commission. 27. IT IS FURTHER ORDERED that Volunteers in Technical Assistance IS AUTHORIZED to operate a non-voice, non-geostationary mobile-satellite service system with service uplinks in 149.81-149.90 MHz band. 28. IT IS FURTHER ORDERED that Volunteers in Technical Assistance IS AUTHORIZED to operate a non-voice, non-geostationary mobile-satellite service system with service and feeder downlinks in the 400.5983-400.645 MHz band. 29. IT IS FURTHER ORDERED that, unless extended by the Commission for good cause shown, Volunteers in Technical Assistance's authorization will become NULL AND VOID in the event that the space station is not constructed, launched and successfully placed into operation in accordance with the technical parameters and terms and conditions of this authorization by the following dates: Construction Commenced Construction Completed Launch March 1999 March 2001 March 2002 30. IT IS FURTHER ORDERED that Volunteers in Technical Assistance's authorization to operate is subject to the completion of co-channel and/or adjacent channel frequency sharing coordination with the other Little LEO second processing round licensees operating in the 148-149.9 MHz, and 400.15-401 MHz frequency bands. 31. IT IS FURTHER ORDERED that Volunteers in Technical Assistance's authorization to operate is subject to adjacent channel frequency sharing coordination with government users in the 400.15-401 MHz frequency bands. 32. IT IS FURTHER ORDERED that the term of operation for the space station authorized by this Order, including any replacement space stations authorized by this Order, is a total of five years and will begin to run on the earlier of: (a) the date that Volunteers in Technical Assistance 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; or (b) such date as determined by the Commission. 33. IT IS FURTHER ORDERED that Volunteers in Technical Assistance IS AUTHORIZED to launch and operate technically identical non-voice, non-geostationary mobile satellite service replacement satellites during the license term for the purpose of replacing its low Earth orbiting non-voice, non-geostationary satellite authorized by this Order in accordance with technical specifications set forth in its application and consistent with the Commission's Rules, unless specifically waived by the Commission. At no time shall a replacement satellite be used in such a way as to exceed the authorized number of active satellites in the Little LEO system. 34. IT IS FURTHER ORDERED that 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 and that such transfer, assignment or disposal otherwise complies with the Act and the Commission's Rules. 35. IT IS FURTHER ORDERED that Volunteers in Technical Assistance will prepare, within 90 days of the release of this Order, the necessary information for submission to the ITU to initiate the advance publication, international coordination, and notification process of the Volunteers in Technical Assistance system in accordance with the ITU Radio Regulations and for consultations in accordance with Article XIV of the INTELSAT Agreement and Article 8 of the Inmarsat Convention. Upon completion of these consultations and notification by the Department of State that the United States has fulfilled its obligations with respect to INTELSAT and Inmarsat, no further action by this Commission regarding such consultations will be required. This authorization is subject to coordination between Volunteers in Technical Assistance's Little LEO system and any non-U.S. licensed systems in the authorized frequency bands. We also remind Volunteers in Technical Assistance 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 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). 36. IT IS FURTHER ORDERED that: (a) this license shall not vest in Volunteers in Technical Assistance any right to operate its Little LEO system or any right in the use of the frequencies designated in this license beyond the term thereof nor in any other manner than authorized herein; and (b) this license shall be subject to the provisions of Section 706 of the Communications Act of 1934, as amended, 47 U.S.C.  606. 37. IT IS FURTHER ORDERED that Volunteers in Technical Assistance is afforded 30 days from the date of release of this Order to decline this authorization as conditioned. Failure to respond within that period will constitute formal acceptance of the authorization as conditioned. 38. IT IS FURTHER ORDERED that this Order is issued pursuant to Section 0.261 of the Commission's Rules on Delegations of Authority, 47 C.F.R.  0.261. 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)). 39. IT IS FURTHER ORDERED that this Order is effective upon the date of its release. FEDERAL COMMUNICATIONS COMMISSION Regina M. Keeney Chief, International Bureau