******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect or Word to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. 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 E-SAT, Inc., EchoStar Communications Corporation and DBS Industries, Inc. Application for Consent to Transfer of Control of Authorization to Launch and Operate a Non-voice, Non-geostationary Mobile Satellite System ) ) ) ) ) ) ) ) ) File No. SAT-T/C-20000502-00088 Call Sign S2149 ORDER AND AUTHORIZATION Adopted: November 21, 2000 Released: November 22, 2000 By the Chief, International Bureau: I.Introduction 1. By this Order, we grant the application of EchoStar Communications Corporation (EchoStar) and DBS Industries, Inc. (DBSI) to transfer control of E-SAT, Inc.'s non-voice, non-geostationary mobile satellite service license from EchoStar to DBSI. This restructuring will allow E-SAT to proceed expeditiously with the implementation of its system, enhancing competition and service offerings in the mobile communications market. II.BACKGROUND 3. In 1998, the International Bureau granted E-SAT a license to construct and operate a non- voice, non-geostationary mobile satellite service (Little LEO) system. E-Sat is authorized to operate a six-satellite Little LEO system in the 148-148.905 MHz uplink and the 137.0725-137.9275 MHz downlink frequency bands. EchoStar now owns 80 percent of E-SAT stock, and DBSI owns the remaining 20 percent of the shares. Following the proposed transfer, DBSI will own 80.1 percent of E- SAT's stock, and EchoStar the remaining 19.9 percent. On May 24, 200, the International Bureau placed this transfer of control application on public notice. Satellite Policy Branch Information, Report No. SAT-00043. No comments or oppositions were filed. IV. DISCUSSION 5. Before we can approve this application, the Communications Act requires that we find the proposed transfer serves the public interest, convenience and necessity. To do so, we weigh any potential public interest harms against potential public interest benefits. We especially consider any potential competitive effects of the proposed change. Other public interest factors considered may include the speed with which new service is delivered to the public. Our weighing of these public interest factors is not limited to antitrust issues, but also encompasses the aims of the Communications Act, with its preference for competitive processes and outcomes. We therefore analyze this application by determining whether there are any relevant product markets that might be adversely affected by the proposed transaction, and then considering the competitive effects of the proposed transaction on those markets. 6. Generally, E-SAT and other Little LEO systems provide mobile satellite data services. In this case, however, we need not precisely delineate the product market involved, because DBSI has no significant business interests other than its current 20% interest in E-SAT. Therefore, DBSI's acquisition of control of E-SAT will not result in further market concentration or in diminished competition in any product market. 7. We accept the applicants' uncontradicted statement that the proposed transfer will facilitate the implementation of the E-SAT system, leading to further competition and service offerings in the Little LEO service. VIII.CONCLUSION 9. We find that granting this transfer application will serve the public interest, convenience, and necessity, by expediting the implementation of a Little LEO system, thus increasing competition in the mobile telecommunications market. We therefore grant the application of EchoStar Communications Corporation and DBS Industries, Inc. to transfer control of E-SAT, Inc.'s non-voice, non-geostationary mobile satellite service license to DBS Industries, Inc. X.ORDERING CLAUSES 11. IT IS ORDERED that File No. SAT-T/C-20000502-00088, Application for Consent to Transfer of Control of Authorization to Launch and Operate a Non-voice, Non-geostationary Mobile Satellite System IS GRANTED. 12. This Order is issued under delegated authority, pursuant to Section 0.261 of the Commission's rules, 47 C.F.R. 0.261, and is effective upon release. FEDERAL COMMUNICATIONS COMMISSION Donald Abelson Chief, International Bureau