[Federal Register Volume 62, Number 233 (Thursday, December 4, 1997)]
[Rules and Regulations]
[Pages 64167-64173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31800]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 25
[IB Docket No. 96-111; CC Docket No. 93-23; FCC 97-399]
Non-U.S.-Licensed Satellites Providing Domestic and International
Service in the United States
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this final rule, the Federal Communications Commission
(Commission) adopts a new standard for foreign participation in the
U.S. satellite services market consistent with the United States'
obligations under the WTO Basic Telecom Agreement. The common sense
rules and procedures we establish will provide opportunities for
foreign entities to deliver satellite services in this country. The
liberalized market conditions that will result from the WTO Basic
Telecom Agreement will allow U.S. companies to enter previously closed
foreign markets. These joint initiatives will benefit U.S. consumers by
increasing the availability of various satellite services, providing
more alternatives, reducing prices, and facilitating technological
innovation. This new environment will encourage a more competitive
satellite market in the United States, as well as spur development of
broader, more global satellite systems. It will also foster greater
opportunity for communications across national boundaries by making it
easier for consumers worldwide to gain access to people, places,
information, and ideas.
DATES: These amendments contain information collection requirements
which are not effective until approved by the Office of Management and
Budget, subject to 5 U.S.C. 801(a)(3). FCC will publish a document in
the Federal Register announcing the effective date. Public and agency
comments on the modifications to the information collections are due on
or before February 2, 1998.
FOR FURTHER INFORMATION CONTACT: Linda Haller at (202) 418-0760, Tania
Hanna at (202) 418-0762, or Laurie Sherman at (202) 418-0429 of the
International Bureau. For additional information concerning the
information collections contained in this Report and Order, contact
Judy Boley at (202) 418-0214, or via the Internet at jboley@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order in IB Docket No. 96-111; CC Docket No. 93-23; FCC 97-399,
adopted November 25, 1997 and released November 26, 1997. The complete
text of this Report and Order is available for inspection and copying
during normal business hours in the FCC Reference Center (Room 239),
1919 M Street, N.W. Washington, D.C., and also may be purchased from
the Commission's copy contractor, International Transcription Service,
Inc. (ITS, Inc.), 1231 20th Street, N.W., Washington, DC 20036,
telephone: 202-857-3800; facsimile: 202-857-3805.
This Report and Order contains a modified information collection.
The Commission, as part of its continuing effort to reduce paperwork
burdens, invites the general public and the Office of Management and
Budget (OMB) to comment on the information collections contained in
this Report and Order, as required by the Paperwork Reduction Act of
1995, Public Law 104-13. Public and agency comments are due on or
before February 2, 1998; OMB notification of action is due February 2,
1998. Comments should address: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information shall have practical
utility; (b) the accuracy of the Commission's burden estimates; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on the respondents, including the use of automated
collection techniques or other forms of information technology.
This Report and Order contains modifications to approved
collections and has been submitted to the Office of Management and
Budget for review under Section 3507(d) of the Paperwork Reduction Act
(44 U.S.C. 3507(d)). For copies of the submissions contact Judy Boley
at (202) 418-0214. A copy of any comments filed with the Office of
Management and Budget should also be sent to the following address at
the Commission: Federal Communications Commission, Performance
Evaluation and Records Management Branch, Room 234, Paperwork Reduction
Project, OMB No. 3060-0678, Washington, D.C. 20554. For further
information contact Judy Boley, (202) 418-0214.
OMB Approval Number: 3060-0678.
[[Page 64168]]
Title: Commission's Rules and Regulations for Satellite
Applications and Licensing Procedures.
Form Number: 312.
Type of Review: Revision of existing collections.
Respondents: Businesses or other for profit organizations,
including small businesses, governments.
Number of Respondents: 1,310.
Estimated Time Per Response: The Commission estimates that all
respondents will hire an attorney or legal assistant to complete the
form. The time to retain these services is 2 hours per respondent.
Total Annual Burden: 2,620 hours.
Estimated Costs Per Respondent: This includes the charges for
hiring an attorney, legal assistant, or engineer at $150 an hour to
complete the submissions. The estimated average time to complete the
Form 312 is 11 hours per response. The estimated average time to
complete space station submissions is 20 hours per response. The
estimated average time to prepare submissions using non-U.S. licensed
satellites is 22 hours per response. The estimated average time to
complete the ASIA submission is 24 hours per response. Fee amounts vary
by type of service and application. Total fee estimates for industry
are approximately $5,800,000.00.
Needs and Uses: In accordance with the Communications Act, the
information collected will be used by the Commission in evaluating
applications requesting authority to operate pursuant to part 25 of the
Commission's rules. The information will be used to determine the
legal, technical, and financial ability of the applicants and will
assist the Commission in determining whether grant of such
authorizations are in the public interest.
Summary of Report and Order
1. In this Report and Order, the Commission takes an historic step
by implementing the market opening commitments made by the United
States in the World Trade Organization (WTO) Agreement on Basic
Telecommunications Services (WTO Basic Telecom Agreement).1
The WTO Basic Telecom Agreement, which will take effect on January 1,
1998,2 is the culmination of the efforts of the United
States and 68 other WTO Members to bring competition to global markets
for telecommunications services, including satellite services. The WTO
Basic Telecom Agreement is centered on the principles of open markets,
private investment, and competition. It covers nations that account for
90 percent of worldwide telecommunications services revenues. By
opening markets worldwide, the WTO Basic Telecom Agreement will allow
new entrants to deploy innovative, cost-effective technologies, and
thereby advance the growth of satellite services around the globe.
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\1\ The results of the WTO basic telecommunications services
negotiations are incorporated into the General Agreement on Trade in
Services (GATS) by the Fourth Protocol to the GATS (April 30, 1996),
36 I.L.M. 336 (1997) (the ``Fourth Protocol to the GATS''). These
results, as well as the basic obligations contained in the GATS, are
referred to in this summary as the ``WTO Basic Telecom Agreement.''
\2\ See para.3 of the Fourth Protocol to the GATS.
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2. The Commission is optimistic that global implementation of the
WTO Basic Telecom Agreement will result in significant worldwide
benefits to consumers and providers. At the same time, it recognizes
that much work needs to be done to ensure that the promise of the WTO
Basic Telecom Agreement is fulfilled. With this Report and Order and
the companion Foreign Participation in the U.S. Telecommunications
Market Report and Order,3 the Commission has implemented the
letter and the spirit of the market opening commitments made by the
United States. The Commission expects that foreign entities will begin
to enter and compete in the U.S. market soon after January 1, 1998. The
Commission also expects that U.S. providers will likewise be able to
enter and compete in previously-closed foreign markets.
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\3\ Foreign Participation in the U.S. Telecommunications Market
Report and Order, FCC 97-398 (released November 26, 1997) (Foreign
Participation Order).
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3. Under the terms of the WTO Basic Telecom Agreement, the United
States has committed to allow foreign suppliers to provide a broad
range of basic telecommunications services, including satellite
services, in the United States. In return, most of the world's major
trading nations have made binding commitments to move from monopoly
provision of basic telecommunications services to open entry and
procompetitive regulation of these services. In this Report and Order,
the Commission implements the United States' commitments to provide
access to the U.S. market for satellite services by establishing a
framework for assessing applications by non-U.S. licensed satellite
systems to serve the United States.
4. The common sense policies and rules the Commission adopts will
produce substantial public interest benefits for U.S. consumers. First,
they will facilitate greater competition in the U.S. satellite services
market. Enhanced competition in the U.S. market, in turn, will provide
users more alternatives in choosing communications providers and
services, as well as reduce prices and facilitate technological
innovation. In addition to encouraging a more competitive satellite
market in the United States, this new environment will spur development
of broader, more global satellite systems. These advancements will
foster greater global community benefits by providing users, ranging
from individual consumers and businesses to schools and hospitals,
increased access to people, places, information, and ideas worldwide.
5. In the companion Foreign Participation Order, the Commission
takes parallel steps to carry out the market opening commitments made
by the United States in the WTO Basic Telecom Agreement. That order
establishes a framework for facilitating entry into the U.S. market by
foreign entities for provision of telecommunications services (other
than satellite services). As in the companion order, in this Report and
Order the Commission adopts for satellite services an approach that
encourages foreign entry. Both decisions are guided by the common
objective of promoting competition in the U.S. market, and achieving a
more competitive global market for all basic telecommunications
services.
6. While the United States was negotiating the WTO Basic Telecom
Agreement, the Commission was exploring measures to increase
opportunities for foreign entry in the United States satellite services
market. The Commission began this proceeding in May 1996 by issuing a
Notice of Proposed Rulemaking.4 The NPRM proposed a uniform
framework for permitting foreign-licensed satellite systems to serve
the United States. Adopted when only a few of the world's satellite
markets were open to competition by U.S. providers, the NPRM proposed
to evaluate the effective competitive opportunities (ECO) in the
country in which the foreign satellite was licensed (the ECO-Sat test)
prior to granting an application to serve the United States. After the
conclusion of the WTO Basic Telecom Agreement, the Commission issued a
Further Notice of Proposed Rulemaking revising its proposals based on
the
[[Page 64169]]
market-opening changes that should result from the
Agreement.5 Both the NPRM and the FNPRM reflect the
Commission's continuing objective to foster development of innovative
satellite communications services for U.S. consumers through fair and
vigorous competition among multiple service providers, including
foreign-licensed satellites.
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\4\ In the Matter of Amendment of the Commission's Regulatory
Policies to Allow Non-U.S. licensed Space Stations to Provide
Domestic and International Satellite Service in the United States,
Notice of Proposed Rulemaking, 11 FCC Rcd 18178 (1996), 61 FR 32398
(June 24, 1996) (NPRM).
\5\ Amendment of the Commission's Regulatory Policies to Allow
Non-U.S.-Licensed Space Stations to Provide Domestic and
International Satellite Service in the United States, Further Notice
of Proposed Rulemaking, FCC 97-252 (released July 18, 1997), 62 FR
40494 (July 29, 1997) (FNPRM).
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7. Specifically, in this Report and Order, the Commission adopts a
framework under which it will consider requests for access by non-U.S.
licensed satellites 6 into the United States. As required by
Title III of the Communications Act of 1934, as amended (Communications
Act), we will examine all requests to determine whether grant of
authority is consistent with the public interest, convenience and
necessity.7 In making this determination, we will consider
public interest factors such as the effect on competition in the United
States, spectrum availability, eligibility and operating requirements,
as well as national security, law enforcement, and trade and foreign
policy concerns raised by the Executive Branch. The Commission adopts a
presumption that entry by WTO Member satellite systems will promote
competition in the U.S. satellite services market. Opposing parties may
rebut the presumption by showing that granting the application would
cause competitive harm in the U.S. satellite services market. Although
we find that license conditions will generally provide sufficient
protection against anticompetitive conduct, we recognize the
possibility that circumstances might arise in which conditions might
not adequately constrain the potential for anticompetitive harm in the
U.S. market. In such cases, the Commission reserves the right to attach
additional conditions to a license grant, or in the exceptional case in
which grant would lose a very high risk to competition, deny an
application.
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\6\ The phrase ``non-U.S.'' licensed satellite system or
operator means one that does not hold a commercial space station
license from the Commission. By contrast, a ``U.S.'' satellite
system or operator means one whose space station is licensed by the
Commission.
\7\ 47 U.S.C. 301, et. seq.
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8. The Commission will apply the presumption that entry will
promote competition to affiliates of intergovernmental satellite
organizations (IGO) licensed by WTO Members. For applications from
COMSAT to provide U.S. domestic service via INTELSAT or Inmarsat, the
Commission will require COMSAT to waive its immunity from suit and
demonstrate that the service will enhance competition in the U.S.
market. For satellites licensed by non-WTO Members and for all
satellites providing Direct-to-Home (DTH), Direct Broadcasting
Satellite (DBS), and Digital Audio Radio Services (DARS), we will
examine whether U.S. satellites have effective competitive
opportunities in the relevant foreign markets to determine whether
allowing the foreign-licensed satellite to serve the United States
would satisfy the competition component of the public interest
analysis.
9. This new framework is based on consideration of over 100
comments submitted from parties around the world over the course of
more than a year, is grounded in the public interest requirements of
the Communications Act and the procompetitive principles of the WTO
Basic Telecom Agreement, sets forth clear criteria for entry into the
United States by various types of non-U.S. satellites, delineates the
applicable Commission rules and describes in detail the procedures for
applications to provide service in the United States using a non-U.S.
licensed satellite. This framework will largely replace the
Commission's current approach of reviewing applications involving non-
U.S. licensed satellites based on the individual circumstances before
it. The Commission expects that our new framework will encourage and
ease entry by non-U.S. satellites into the U.S. market and that the
occasional request the Commission receives today involving a non-U.S.
licensed satellite will become more common. At the same time, the
Commission plans to continue to look carefully at market opening
measures enacted by the rest of the world.
10. Policy Objectives. The purpose of this Report and Order is to
establish a new framework to facilitate competitive entry in the U.S.
satellite services market by non-U.S. licensed satellites, consistent
with the WTO Basic Telecom Agreement. Providing opportunities for non-
U.S. licensed satellites to deliver services in this country should
bring U.S. consumers the benefits of enhanced competition and afford
greater opportunities for U.S. companies to enter previously closed
foreign markets, thereby stimulating a more competitive global
satellite services market.
11. WTO Members. The Commission adopts an open entry standard for
applicants seeking to access satellite systems licensed by WTO Members
to provide satellite services covered under the WTO Basic Telecom
Agreement. An open entry policy will enable U.S. consumers to enjoy the
benefits of increased competition in U.S. markets. The Commission
presumes that entry will enhance competition in light of the fact that
so many WTO Members have committed to lifting entry restrictions and
adopting competitive safeguards. Where necessary to constrain the
potential for anticompetitive harm in the U.S. market for satellite
services, the Commission reserves the right to attach conditions to a
grant of authority, and in the exceptional case in which an application
poses a very high risk to competition, to deny an application.
12. Non-WTO Members. The Commission continues to be concerned about
effective competitive opportunities for U.S. satellite systems in non-
WTO Member markets. It finds that the market conditions that existed
when the Commission proposed to adopt an ECO-Sat test, which determines
whether there are effective competitive opportunities for U.S.
satellites in the foreign market, have not changed sufficiently with
respect to countries that are not members of the WTO. The Commission
therefore finds that it will serve the goals of our international
satellite policy to apply the ECO-Sat test in the context of
applications from non-WTO Member entities and encourage such countries
to open their markets to competition.
13. Services Not Covered by the WTO Basic Telecom Agreement. The
Commission finds that circumstances that existed when it proposed to
adopt an ECO-Sat test have not changed sufficiently with respect to DTH
services, DBS services, and DARS. Commitments made as part of the WTO
Basic Telecom Agreement were not sufficient to enable it to adopt a
presumption of entry for these services. The Commission will apply the
ECO-Sat test to applications to provide these services through all
satellite systems, whether or not they are systems of WTO Members.
14. Intergovernmental Satellite Organizations (IGOs) and IGO
Affiliates. Prior to acting on any application from COMSAT to provide
domestic service via INTELSAT or Inmarsat, the Commission will require
COMSAT to make an appropriate waiver of its immunity from suit,
including suit under the U.S. antitrust laws. The Commission will then
look to COMSAT to show that entry into the domestic market would
promote competition and would otherwise be in the public interest. The
Commission will treat IGO
[[Page 64170]]
affiliates that are licensed by WTO Members as it would similar systems
licensed by WTO Members. In evaluating the competition component of an
application involving an IGO affiliate, the Commission will consider
any potential anticompetitive or market distorting consequences of a
continued relationship or connection between an IGO and its affiliate.
15. Additional Public Interest Factors and Operating Requirements.
In evaluating requests to serve the United States using a non-U.S.
satellite, the Commission also will consider additional public interest
factors, including spectrum availability, eligibility requirements such
as legal, technical and financial qualifications, operating
requirements, and national security, law enforcement, foreign policy
and trade policy concerns. In applying these factors, the Commission
will treat non-U.S. satellites as it would U.S. licensed satellites at
the request stage, as well as after a system is operational. Thus, non-
U.S. systems will be required to comply with the same financial,
technical and legal qualifications, observe the prohibition against
exclusive service arrangements and comply with other generally-
applicable service rules.
16. Access Procedures. In implementing this framework, the
Commission will not require space stations licensed by another country
or administration to obtain separate and duplicative U.S. space station
licenses. Rather, the Commission will license earth stations in the
United States to operate with these satellites. Further, the Commission
will permit operators of existing or planned non-U.S. space stations to
participate in U.S. space station processing rounds, where the
Commission considers competing applications to operate space stations
that will offer a specific satellite service in particular frequency
bands. In addition, earth station entities may file an earth station
application either in a processing round or separately where the non-
U.S. satellite is already in orbit.
17. This Report and Order contains a modified information
collection. As part of its continuing effort to reduce paperwork
burdens, the Commission invites the general public and the Office of
Management and Budget (OMB) to comment on the information collections
contained in this Report and Order, as required by the Paperwork
Reduction Act of 1995, Public Law 104-13. Public and agency comments
are due on or before February 2, 1998. OMB comments are due on or
before February 2, 1998. Comments should address: (a) Whether the
proposed collection of information is necessary for the proper
performance of the functions of the Commission, including whether the
information shall have practical utility; (b) the accuracy of the
Commission's burden estimates; (c) ways to enhance the quality,
utility, and clarity of the information collected; and (d) ways to
minimize the burden of the collection of information on the
respondents, including the use of automated collection techniques or
other forms of information technology.
18. Written comments by the public on the proposed and/or modified
information collections are due to Commission on or before February 2,
1998. In addition to filing comments with the Secretary, a copy of any
comments on the information collections contained herein should be
submitted to Judy Boley, Federal Communications Commission, Performance
Evaluation and Records Management Branch, Room 234, 1919 M Street,
N.W., Washington, D.C. 20554, or via the Internet to jboley@fcc.gov and
to Timothy Fain, OMB Desk Officer, 10236 NEOB, 725 17th Street, N.W.,
Washington, DC 20503 or via the Internet to fain__t@al.eop.gov. NOTE:
OMB is required to make a decision concerning the modified collection
of information contained in this Report and Order between 30 and 60
days after publication of this document in the Federal Register.
Therefore, a comment to OMB is best assured of having its full effect
if OMB receives it within 30 days of publication.
Final Regulatory Flexibility Analysis
19. As required by Section 603 of the Regulatory Flexibility Act, 5
U.S.C. Sec. 603 (RFA), the Commission prepared an Initial Regulatory
Flexibility Analysis (IRFA) in the NPRM in IB Docket No. 96-
111.8 After the conclusion of the WTO Basic Telecom
Agreement, the Commission released the FNPRM requesting comment on the
proposals in the FNPRM, including the IRFA.9 The
Commission's Final Regulatory Flexibility Analysis (FRFA) in this
Report and Order conforms to the RFA, as amended by the Contract with
America Advancement Act of 1996 (CWAAA), Public Law 104-121, 110 Stat.
847 (1996).10
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\8\ See supra n.4.
\9\ See supra n.5.
\10\ See 5 U.S.C. Sec. 603. The RFA, see 5 U.S.C. Sec. 601 et.
seq., has been amended by the Contract with America Advancement Act
(CWAAA) of 1996, Public Law 104-121, 110 Stat. 847 (1996). Title II
of the CWAAA is the Small Business Regulatory Enforcement Fairness
Act of 1996 (SBREFA).
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I. Need for, and Objectives of, the International Satellite
Services Report and Order
20. In this Report and Order, the Commission promulgates rules for
non-U.S. licensed satellites to provide satellite services in the
United States. This action will advance the growth of global satellite
services and create greater competition in the U.S. satellite market.
Enhanced competition in the U.S. market will benefit U.S. consumers,
including small businesses, by increasing the availability of various
satellite services, providing more alternatives in the selection of
communications services, reducing prices, and facilitating
technological innovation. The Commission adopts these rules in part to
reflect the liberalized market environment that will result from the
WTO Basic Telecom Agreement. Specifically, the Commission adopts an
open entry standard for applicants seeking to access satellite systems
from WTO Members providing satellite services covered by the U.S.
Schedule of Commitments under the WTO Basic Telecom Agreement (Fixed
Satellite Services and Mobile Satellite Services (MSS)).11
The Commission presumes that entry will be competitive in these cases.
The Commission reserves the right, however, to attach conditions to a
grant of authority or, in exceptional circumstances, where conditions
may not adequately constrain the potential for anticompetitive harm in
the U.S. market, to deny an application. In deciding whether to grant
non-WTO country satellites access to the U.S. market or whether to
allow any non-U.S. satellite to provide non-covered services in the
United States, the Commission adopts the ``ECO-Sat test.'' This test
requires that U.S. satellite operators have ``effective competitive
opportunities'' in the foreign market before allowing a satellite
licensed by that country access into the United States.
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\11\ Non-covered services are those not contained in the U.S.
Schedule of Commitments in the WTO Basic Telecom Agreement--Direct
to Home (DTH), Direct Broadcast Service (DBS) or Digital Audio
Service (DARS).
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II. Summary of Significant Issues Raised by Public Comments in
Response to the IRFA
21. No comments were filed in direct response to the questions
posed in the IRFA in either the NPRM or the FNPRM. In reply comments to
the NPRM, however, NATSAT argues that the Commission should not apply
the ECO-Sat test to applications filed on or before
[[Page 64171]]
July 15, 1996 by ``designated entities'' to resell MSS service in the
United States.12 It claims that such an exemption would be
consistent with the directive Section 309(j) to ensure that small
businesses and minority entrepreneurs have the chance to participate in
the provision of spectrum-based services. In the Report and Order, the
Commission does not adopt an ECO-Sat test with respect to WTO-Member
satellites providing WTO-covered services. Thus, small entities may
access a large percentage of non-U.S. satellites without conducting an
ECO-Sat analysis. Moreover, an ECO-Sat analysis is a minimal burden
when compared to the possibility that unrestricted entry by foreign-
licensed satellite systems would distort competition in the United
States market.
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\12\ NATSAT NPRM Reply Comments at 11-15 citing 47 U.S.C.
Sec. 309(j).
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III. Description and Estimate of the Number of Small Entities
Subject to the Rules
22. The Commission has not developed its own definition of ``small
entity'' for purposes of licensing satellite-delivered services.
Accordingly, we rely on the definition of ``small entity'' provided
under the Small Business Administration (SBA) rules applicable to
Communications Services, Not Elsewhere Classified.13 A
``small entity'' under these SBA rules is defined as an entity with
$11.0 million or less in annual receipts.
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\13\ 1987 Standard Industrial Classification Manual; 13 CFR part
121.
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IV. Summary of Projected Reporting, Record Keeping and Other
Compliance Requirements
23. This Report and Order requires foreign-licensed systems serving
the United States to comply with the same public interest standards
that the Commission applies to U.S. satellites. First, foreign-licensed
satellite systems must comply with the same technical requirements as a
U.S.-licensed satellite system. Without examining its technical
compatibility with U.S.-licensed satellites, a foreign-licensed
satellite system may cause unacceptable interference with U.S. systems
and possible service disruptions to customers.14 Second, the
Commssion requires foreign-satellite system applicants to comply with
our financial rules, established under Section 308(b) of the
Communications Act.15 Reserving orbit locations or spectrum
for future satellites without examining whether the operator is
financially qualified to build a system, which often costs hundreds of
millions of dollars, could block entry by other United States or
foreign companies that have the financial capability to proceed,
ultimately delaying service to the public. Third, foreign-licensed
satellite systems must comply with the Commissions legal qualifications
consistent with Sections 308 and 309 of the Communications
Act.16 The purpose of requiring compliance with legal
requirements is to ensure that entities providing satellite services in
the United States will abide by Commission rules. For example, certain
information may provide relevant indicia of compliance. Violations of
law by an applicant, particularly those relating to credibility, may be
evidence that it will not comply with Commission rules. Thus, it is
vital that the Commission obtain assurance that an applicant will
follow the rules that the Commission has established over the years to
maximize the development of efficient, compatible, and innovative
satellite systems.
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\14\ Report and Order at Section III.B.3.b.
\15\ Id.
\16\ Id.
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V. Significant Alternatives and Steps Taken By Agency to Minimize
Significant Economic Impact on a Substantial Number of Small
Entities Consistent with Stated Objectives
24. The Commission will apply the same rules to foreign-licensed
systems as have been applied to U.S. licensed systems. This approach
will not impose any additional burdens on foreign-licensed satellite
systems, small or large. Earth station operators seeking to access a
non-U.S. satellite will be required to provide the same information
regarding the satellite that U.S. satellite applicants must provide.
This information is needed to ensure that transmissions from the space
station into the United States do not cause technical interference into
existing U.S. operations and that other Commission public interest
objectives are met. The Commission expects, however, that the satellite
information will be provided by the satellite operator to the earth
station applicant because of their mutual business objectives. Thus,
there will be no economic impact on small businesses because there are
no additional burdens being imposed. Certain information will not be
required. First, where the international technical coordination process
has been completed between the United States and the foreign satellite,
additional technical information about that foreign satellite is not
necessary. This is because the United States and the relevant foreign
administration exchange extensive technical data about their respective
systems during the course of the bilateral negotiations that lead up to
a coordination agreement. This technical information is sufficient for
us to determine whether the foreign satellite complies with Commission
technical rules. The Commission finds that this new framework will
benefit small businesses because earth station entities will have
greater choice of space stations to access and opportunity to benefit
from the other advantages of a more competitive market, such as reduced
prices. In addition, small, local programmers will have access to a
more competitive selection of satellite service providers. In this
regard, our measures will advance the small business goals of Section
257 of the 1996 Act.
25. Report to Congress: The Commission will send a copy of the
Report and Order including this FRFA, in a report to be sent to
Congress pursuant to the Small Business Regulatory Enforcement Fairness
Act of 1996, see 5 U.S.C. 801(a)(1)(A). A summary of the Report and
Order and this FRFA will also be published in the Federal Register, see
5 U.S.C. 604(b), and will be sent to the Chief Counsel for Advocacy of
the Small Business Administration.
Paperwork Reduction Act
26. This Report and Order contains new or modified information
collections. A request for clearance of the information collections
proposed in the FNPRM was submitted to Office of Management and Budget
(OMB) and approved on October 13, 1997.17 The changes to the
approved information collection adopted in this Report and Order will
be submitted to OMB and will become effective upon approval by OMB.
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\17\ See OMB No. 3060-0678.
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Conclusion
27. In this Report and Order, the Commission adopts a new framework
for foreign participation in the U.S. satellite services market,
consistent with the United States' obligations under the WTO Basic
Telecom Agreement. The common sense rules and procedures the Commission
establishes will provide opportunities for non-U.S. entities to deliver
satellite services in this country. The liberalized market conditions
that should result from the WTO Basic Telecom Agreement will allow U.S.
companies to enter previously closed foreign markets. These joint
initiatives will benefit U.S. consumers by increasing the availability
of various
[[Page 64172]]
satellite services, providing more alternatives, reducing prices, and
facilitating technological innovation. This new environment will
encourage a more competitive satellite market in the United States, as
well as spur development of broader, more global satellite systems. It
will also foster greater opportunity for communications across national
boundaries by making it easier for consumers worldwide to gain access
to people, places, information, and ideas.
Ordering Clauses
28. Accordingly, it is Ordered that, pursuant to Sections 1, 2,
4(i), 303(r), 308, 309, and 310 of the Communications Act of 1934, as
amended, 47 U.S.C. Secs. 151, 152, 154(i), 303(r), 308, 309, and 310,
the policies, rules and requirements discussed herein are adopted and
part 25 of the Commission's rules, 47 CFR part 25, is amended as set
forth below.
29. It is further ordered that authority is delegated to the Chief,
International Bureau as specified herein, to effect the decisions as
set forth above.
30. It is further ordered that the Commission's Office of Managing
Director shall send a copy of this Report and Order, including the
Final Regulatory Flexibility Analysis, to the Chief Counsel for
Advocacy of the Small Business Administration.
31. It is further ordered that the amendments to part 25 of the
Commission's rules, 47 CFR part 25, FCC Form 312 and the Commission's
policies, rules and requirements established in this Report and Order
shall take effect January 5, 1998, or in accordance with the
requirements of 5 U.S.C. Sec. 801(a)(3) and 44 U.S.C. Sec. 3507,
whichever is later. The Commission will publish a notice, following
publication of this Report and Order in the Federal Register,
announcing the effective date. The Commission reserves the right to
reconsider the effective date of this decision if the WTO Basic Telecom
Agreement does not take effect on January 1, 1998.
List of Subjects in 47 CFR Part 25
Satellites.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
Rule Changes
Part 25 of Chapter I of title 47 of the Code of Federal Regulations
is amended as follows:
PART 25--SATELLITE COMMUNICATIONS
1. The authority citation for part 25 continues to read as follows:
Authority: Secs. 25.101 to 25.601 issued under Sec. 4, 48 Stat.
1066, as amended; 47 U.S.C. 154. Interpret or apply secs. 101-104,
76 Stat. 419-427; 47 U.S.C. 701-744; 47 U.S.C. 554.
2. Section 25.113 is amended by revising the first sentence of
paragraph (b) to read as follows:
Sec. 25.113 Construction permits, station licenses, launch authority.
* * * * *
(b) Construction permits are not required for satellite earth
stations that operate with U.S.-licensed or non-U.S. licensed space
stations. * * *
* * * * *
3. Section 25.115 is amended by revising the first sentence of
paragraph (c) to read as follows:
Sec. 25.115 Application for earth station authorizations.
* * * * *
(c) Large Networks of Small Antennas operating in the 12/14 GHz
frequency bands with U.S.-licensed or non-U.S. licensed satellites for
domestic services. * * *
* * * * *
4. Section 25.130 is amended by revising the first sentence of
paragraph (d) to read as follows:
Sec. 25.130 Filing requirements for transmitting earth stations.
* * * * *
(d) Transmissions of signals or programming to non-U.S. licensed
satellites, and to and/or from foreign points by means of U.S.-licensed
fixed satellites may be subject to restrictions as a result of
international agreements or treaties. * * *
* * * * *
5. Section 25.131 is amended by revising paragraphs (b) and (j) to
read as follows:
Sec. 25.131 Filing requirements for receive-only earth stations.
* * * * *
(b) Except as provided in paragraph (j) of this section, receive-
only earth stations in the fixed-satellite service that operate with
U.S.-licensed satellites may be registered with the Commission in order
to protect them from interference from terrestrial microwave stations
in bands shared co-equally with the fixed service in accordance with
the procedures of Secs. 25.203 and 25.251 through 25.256 of this part.
* * * * *
(j) Receive-only earth stations operating with non-U.S. licensed
space stations shall file an FCC Form 312 requesting a license or
modification to operate such station. Receive-only earth stations used
to receive INTELNET I service from INTELSAT space stations need not
file for licenses. See Deregulation of Receive-Only Satellite Earth
Stations Operating with the INTELSAT Global Communications Satellite
System, Declaratory Ruling, RM No. 4845, FCC 86-214 (released May 19,
1986) available through the International Reference Center, FCC, 2000 M
St. NW., Washington, DC 20554.
6. A new Sec. 25.137 is added to read as follows:
Sec. 25.137 Application requirements for earth stations operating with
non-U.S. licensed space stations.
(a) Earth station applicants or entities filing a ``letter of
intent'' requesting authority to operate with a non-U.S. licensed space
station to serve the United States must attach an exhibit with their
FCC Form 312 application with information demonstrating that U.S.-
licensed satellite systems have effective competitive opportunities to
provide analogous services in:
(1) The country in which the non-U.S. licensed space station is
licensed; and
(2) All countries in which communications with the U.S. earth
station will originate or terminate. The applicant bears the burden of
showing that there are no practical or legal constraints that limit or
prevent access of the U.S. satellite system in the relevant foreign
markets. The exhibit required by this paragraph must also include a
statement of why grant of the application is in the public interest.
This paragraph shall not apply with respect to requests for authority
to operate using a non-U.S. licensed satellite that is licensed by or
seeking a license from a country that is a member of the World Trade
Organization for services covered under the World Trade Organization
Basic Telecommunications Agreement.
(b) Earth station applicants, or entities filing a ``letter of
intent,'' requesting authority to operate with a non-U.S. licensed
space station must attach to their FCC Form 312 an exhibit providing
legal, financial, and technical information for the non-U.S. licensed
space station in accordance with part 25 and part 100 of this Chapter.
If the non-U.S. licensed space station is in orbit and operating, the
applicant need not include the financial information specified in
Secs. 25.114 (c)(17) and (c)(18) of this part. If the international
coordination process for the non-U.S.
[[Page 64173]]
licensed space station has been completed, the applicant need not
include the technical information specified in Secs. 25.114 (c) (5
through 11) and (c)(14) of this part, unless the technical
characteristics differ from the characteristics established in that
process.
(c) A non-U.S. licensed satellite system seeking to serve the
United States can be considered contemporaneously with other U.S.
satellite systems if it is:
(1) In orbit and operating;
(2) Has a license from another administration; or
(3) Has been submitted for coordination to the International
Telecommunication Union.
[FR Doc. 97-31800 Filed 12-3-97; 8:45 am]
BILLING CODE 6712-01-P
