[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5829]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 25 and 94
[CC Docket No. 92-166; FCC No. 94-11]
Licensing Policies and Procedures, Domestic Common Carrier
Satellite Service
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: On January 19, 1994, the Commission adopted a Notice of
Proposed Rulemaking seeking comments on its proposed rules to govern
the licensing and regulation of mobile satellite systems operating in
the 1610-1626.5/2483.5-2500 MHz frequency bands (1.6/2.4 GHz MSS). The
proposed qualification requirements and technical rules are intended to
facilitate the provision of new domestic and international satellite
services.
DATES: Comment date: May 5, 1994; Reply comment date: June 6, 1994.
ADDRESSES: Federal Communications Commission, 1919 M Street, NW.,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT:
Fern Jarmulnek, Common Carrier Bureau, (202) 634-1682; Kathleen
Campbell, Common Carrier Bureau, (202) 634-1952.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking adopted January 19, 1994, and released February
18, 1994. The full text of this Commission decision is available for
inspection and copying during normal business hours in the FCC
Reference Center (room 239), 1919 M Street, NW., Washington, DC 20554.
A complete text of this decision also may be purchased from the
Commission's copy contractor, International Transcription Service,
Inc., (202) 857-3800, 2100 M Street, NW., suite 140, Washington, DC
20037.
The following collection of information contained in this proposed
rule has been submitted to the Office of Management and Budget for
review under section 3504(h) of the Paperwork Reduction Act (44 U.S.C.
3504(h)). Copies of the submission may be purchased from the
Commission's copy contractor, International Transcription Service,
Inc., (202) 857-3800, 2100 M Street, NW., suite 140, Washington, DC
20037. Persons wishing to comment on this collection of information
should direct their comments to Timothy Fain, (202) 395-3561, Office of
Management and Budget, room 3235 NEOB, Washington, DC 20503. 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, Records Management Division, room 234,
Paperwork Reduction Project, Washington, DC 20554. For further
information contact Judy Boley, (202) 632-7513.
Title: Amendment of the Commission's Rules to Establish Rules and
Policies Pertaining to a Mobile Satellite Service in the 1610-1626.5/
2483.5-2500 MHz Frequency Bands, CC Docket No. 92-166.
OMB Number: None.
Action: Proposed new and revised collection.
Respondents: Businesses or other for profit, including small
businesses.
Frequency of Response: On occasion, annually.
----------------------------------------------------------------------------------------------------------------
No. of Hours per
Reporting requirements responses response Total
----------------------------------------------------------------------------------------------------------------
Proposed Sections 25.143(b), 25.213, 25.203 (j), (k)............ 6 900 5400
Proposed Section 25.143(e)(1)................................... 5 15 65
Proposed Section 25.143(e)(2)................................... 5 3 15
Proposed Section 25.143 (c), (d)................................ 5 2 10
Proposed Sections 25.115, 25.130, 25.213........................ 10 320 3200
Proposed Section 25.133(b)...................................... 10 2 20
-----------------------------------------------
Total....................................................... 41 .............. 8710
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Note: These requirements will not all be triggered in the same
year.
Needs and Uses: The Notice of Proposed Rulemaking solicits public
comment on the Commission's proposals for rules and policies to govern
the licensing and provision of service by voice and data mobile
satellite service (MSS) systems in the 1610-1626.5/2483.5-2500 MHz band
(1.6/2.4 GHz MSS).
As required by section 603 of the Regulatory Flexibility Act, the
Commission has prepared an Initial Regulatory Flexibility Analysis
(IRFA) of the expected impact on small entities of the proposals
suggested in this document.
Summary of Notice of Proposed Rulemaking
This Notice of Proposed Rulemaking represents the next step in the
process of licensing the world's first commercial low-earth orbit
satellites offering both voice and data mobile satellite services
(MSS). These satellites are to operate in the 1610-1626.5/2483.5-2500
MHz frequency bands (1.6/2.4 GHz bands). The proposed systems are to
provide a wide range of services, including cellular-like mobile
services to users anywhere, telephone service to remote areas that are
not linked to a communications network, position location services,
search and rescue communications, disaster management communications,
environmental monitoring, paging services, facsimile transmission
services, cargo tracking, educational communications, and industrial
monitoring. In addition to offering these services to users in the
United States, the proposed low-earth orbit systems have the capability
to extend these offerings throughout the world. This can potentially
expand markets for U.S.-developed goods and services and to make a
major contribution to U.S. global competitiveness. It also offers the
potential for significant economic and social advances in developing
countries by providing an ``instant'' telecommunications infrastructure
at minimum cost.
Six applications to construct satellite systems in these frequency
bands were filed by the cut-off date. Five proposed low-Earth orbit
(LEO) systems. These were filed by Ellipsat Corporation, Motorola
Satellite Communications Inc., Constellation Communications, Loral/
Qualcomm Corporation, and TRW, Inc. The other application was filed by
American Mobile Satellite Corporation. AMSC proposed to add the
additional MSS frequencies to its geostationary satellite orbit (GSO)
MSS system that was authorized in 1989. An international allocation for
MSS in these frequency bands was made in February 1992; a domestic
allocation was adopted in December 1993.
A negotiated rulemaking was undertaken from January through April
1993 to assist the Commission in establishing technical and operational
rules to govern this new service (hereinafter 1.6/2.4 GHz MSS) and in
developing an arrangement by which all six pending system proposals
could be accommodated. Neither the Commission nor the applicants were
able to fashion a spectrum sharing compromise that was acceptable to
all. The Committee did, however, reach consensus regarding other major
technical issues. After the Negotiated Rulemaking was concluded, the
LEO applicants, in two new ``partial settlement'' groups, submitted two
new sharing proposals they assert would permit all LEO applications to
be granted. Both proposals are premised on excluding GSO systems from
consideration for licensing in these frequency bands.
Licensing Procedure
If the applicants can develop or agree to an engineering solution
or sharing scheme by which all proposed systems can be accommodated,
the Commission generally adopts this approach if it is otherwise in the
public interest. In situations where all applicants' proposed systems
cannot be accommodated, the Commission must devise a method consistent
with the public interest for choosing among them. In such cases, the
Commission has, as an initial matter, imposed rigorous financial and
technical requirements as a means of ensuring that those granted
licenses are capable of expeditiously implementing state-of-the-art
systems that will serve the public interest. If it is not possible to
accommodate all qualified applicants, a further processing mechanism
must be selected.
Qualification Requirements
As a means of encouraging new technology and of realizing the
unique benefits that a global system can provide, the Commission
proposes a LEO design requirement (proposed rule Sec. 25.143(b)(2)(i)).
It solicits comment on this proposal from both applicants and potential
users, requesting that commenters address the potential for 1.6/2.4 GHz
MSS systems to generate social, economic, and technical benefits, both
domestically and globally, and the extent to which these benefits are
realizable with LEO and GSO satellites. The Commission further proposes
that systems be capable of serving all areas of the world, except for
the polar regions, for at least 75% of each day. Specifically, the
Commission proposes that satellite systems be designed so that at least
one satellite is visible above the horizon at an elevation angle of at
least 5 deg. for at least 18 hours each day at latitudes less than
80 deg. (proposed rule Sec. 25.143(b)(2)(11)). To provide efficient and
ubiquitous service to users throughout the United States, the
Commission also proposes to require systems to be capable of providing
continuous voice services to all areas of the United States (proposed
rule Sec. 25.143(b)(2)(iii)). That is, satellite systems must be
designed so that at least one satellite is visible above the horizon at
elevation angles of at least 5 deg. at any given time in all areas of
the United States.
Further, the Commission proposes strict financial qualification
requirements identical to those in the domestic fixed-satellite
service, where applications to implement space stations regularly
exceed the number that can be accommodated (proposed
Sec. 25.143(b)(3)). Specifically, the Commission proposes that MSS
applicants be required to provide evidence of current assets or
irrevocably committed debt or equity financing sufficient to meet the
estimated costs of constructing and launching all planned satellites
and operating the system for one year. These requirements stem from the
Commission's repeated experience that licensees without sufficient
resources spend a significant amount of time attempting to raise the
capital needed to finance a satellite system (here, $97 million to $2
billion), that these attempts often end unsuccessfully, and that
qualified fully-financed applicants may be blocked from entry during
this several-year period.
All applicants will be given the opportunity to amend their
applications to bring them into compliance with any final rules.
Processing Alternatives
While a sharing solution could not be developed during the
Negotiated Rulemaking, the Commission believes that the recent LEO
sharing proposals may form the basis for allowing it to proceed
expeditiously with licensing. Both of the LEO applicants' proposals
appear to allow up to five LEO systems to be accommodated in the 16.5
MHz of spectrum allocated to MSS in each transmission direction. This
may be sufficient to allow all qualified applicants to be licensed.
The Commission proposes to assign licensees implementing code-
division multiple access (CDMA) systems to 11.35 MHz of shared
bandwidth at 1610-1621.35 MHz. It further proposes to assign a
frequency division multiple access (FDMA)/time division access (TDMA)
system to 5.15 MHz of dedicated bandwidth at 1621.35-1626.5 MHz. When a
system is launched and read to begin operating, it will be permitted to
operate over the entire assigned bandwidth for that technology. Any in-
orbit CDMA system will be required to operate compatibly with any newly
launched CDMA system. If only one CDMA system is implemented, the plan
proposes to adjust the assignments for the system to 8.25 MHz at 1610-
1618.25 MHz, leaving the freed spectrum available for possible
reassignment to the FDMA licensee or for new entry. The Commission
believes that 8.25 MHz should be ample to support a first-generation
system and should provide some flexibility in coordinating the system
internationally.
The plan includes the 1.6 GHz band only. While CDMA systems will
use the 2.4 GHz band for downlink transmissions, an FDMA/TDMA system
will use the 1.6 GHz band for both uplink and downlink transmissions.
This may free some spectrum in the 2.4 GHz band and provide some
flexibility in assigning specific downlink spectrum segments to CDMA
licensees. For example, the Commission may decide to avoid licensing in
those portions of the 2.4 GHz band that are especially susceptible to
inter-service interference. Thus, while the Commission proposes to
license CDMA operators to share the same amount of 2.4 GHz downlink
spectrum as 1.6 GHz uplink spectrum, it does not propose specific
frequencies for downlink operations at this time.
The commission requests comment on all aspects of its sharing
proposal.
Other Alternatives if Mutual Exclusivity is Not Resolved
If the Commission's spectrum sharing plan, or some variation of it,
does not permit the applications of all qualified applicants to be
granted, the Commission must devise a procedure for choosing among
those applicants. Possibilities include a comparable hearing, an
auction, or a lottery. These alternatives are briefly discussed and, to
expedite licensing if mutual exclusivity is not resolved, the
Commission proposes structures for both an auction and a lottery.
The Commission's experience with comparative hearings has shown
they usually are prolonged. Here, they would not only delay the
provision of needed service to the United States public, but the delay
could disadvantage the United States in coordinating a licensed system
internationally. For these reasons, it may not be advisable to hold a
comparative hearing.
The 1993 Budget Act gives the Commission the authority to employ
competitive bidding procedures to select licensees from among two or
more mutually exclusive applicants provided that certain criteria are
met. The Commission believes it mutual exclusivity among the applicants
cannot be resolved, an auction may be considered. Specifically, MSS
licensees will be providing a commercial subscription-based service
that will enable subscribers to transmit or receive MSS transmissions
in the frequencies on which the MSS space stations will be licensed to
operate. A competitive bidding system should permit a new service to be
more rapidly introduced than would a comparative hearing. It should
also allow the public to recover the value of the public spectrum
resource being made available for commercial use. Further, it should
encourage efficient use of the electromagnetic spectrum by encouraging
applicants to bid on only the minimum amount of spectrum needed. The
Commission recognizes that the statute also directs it to promote
economic opportunity by disseminating licenses to a wide variety of
licensees, including small and minority businesses. It requests comment
on the manner in which this statutory obligation can be taken into
account. The Commission also recognizes that an auction may have
unintended consequences internationally by encouraging other countries
to impose licensing costs on MSS systems. The Commission will carefully
consider these concerns.
The Commission envisions that if an auction is employed, it will be
conducted pursuant to the general framework adopted in its Competitive
Bidding Implementation Proceeding (PP Docket No. 93-253). The
Commission also proposes service-specific criteria. To maximize
multiple entry and to encourage applicants to bid only for the minimum
amount of spectrum they require, the Commission proposes to auction the
16.5 MHz of bandwidth in each transmission direction in eight paired
2.0625 MHz uplink and downlink segments. Based on the applicants'
proposals, it appears that some MSS systems could be implemented with
as little as 2 to 4 MHz of spectrum in each transmission direction. To
afford licensees some flexibility, however, the Commission proposes to
allow applicants to big successfully on up to four segments, for a
total of 8.25 MHz of bandwidth in each transmission direction. Given
the CDMA applicants' proposals to share spectrum, the Commission also
questions whether it should permit successful bidders to agree to pool
their spectrum and implement co-frequency systems.
Section 309(i) of the Budget Act also authorizes the use of a
lottery to select from among one or more mutually exclusive applicants
if the applications are accepted for filing before July 26, 1993. The
Commission tentatively concludes that if mutual exclusivity cannot be
resolved, the statutory requirements for a system of random selection
are met. The Commission proposes to implement a lottery in a manner
similar to its proposed auction framework. Specifically, eight 2.0625
MHz paired segments would be offered, and each selectee would be
limited to four segments. The Commission questions whether it may be
advisable to permit applicants to agree among themselves that they will
implement co-frequency systems if one of them is chosen as the
tentative selectee, allowing the Commission to grant licenses to all
qualified applicants in the pool.
The Commission requests comment on all aspects of these alternative
processing mechanisms.
Interservice Sharing
The radioastronomy service (RAS), the aeronautical radionavigation
service (ARS), the instructional television fixed-service (ITFS), a
variety of terrestrial services, and industrial, scientific and medical
(ISM) equipment all operate in portions of the bands allocated to MSS
or in adjacent bands. The Committee studied the potential for
interference between MSS and these services.
The Committee, which included an RAS representative, reached a
consensus regarding MSS-RAS sharing. These recommendations, which form
the basis for the Commission's proposed rules (Sec. 25.213(a)),
establish fixed radius protection zones around the sixteen radio
astronomy sites in the United States and set technical requirements for
MSS downlink transmissions.
GLONASS, the Russian Global Navigation Satellite System, is
operating in the 1610-1616 MHz band pursuant to International Radio
Regulation RR 732. MSS stations may not cause harmful interference to
or claim protection from stations operating under RR 732. During the
Negotiated Rulemaking, the FAA indicated that it sought to use GLONASS
in conjunction with the U.S. Global Positioning System (GPS) to provide
aircraft ground approach and terminal communications. The Committee
determined that MSS can coexist with GLONASS now, but if GLONASS were
used as proposed by the FAA, the GLONASS/MSS interference problems at
1610-1616 MHz would be unresolvable. The Committee proposed that
GLONASS be moved below the 1610 MHz band or, in the alternative, that
U.S. reliance on GLONASS be lessened or eliminated. Both inter-agency
and international negotiations have been initiated on this issue. We
are encouraged that even if GLONASS is used for aircraft approach
communications, it will be moved to frequencies below 1610 MHz. The
Committee's proposed rules regarding e.i.r.p. limits pursuant to RR
731F and limitations on the use of MSS terminals on aircraft fall
within accepted international standards and are set forth for comment
(proposed Sec. 25.213(c)).
The Committee also suggested a variety of solutions to the likely
interference problems between MSS and other services, ranging from
relocating existing licensees (e.g., ``grandfathered'' terrestrial
stations operating in the 2483.5-2500 MHz band) to imposing stricter
suppression requirements on transmissions in adjacent frequency bands
(e.g., ITFS stations operating above 2500 MHz). However, these
interests were not represented on the Committee, nor were the interests
of ISM operators in the 2483.5-2500 MHz band. In these cases, the
Commission does not believe that it can propose sharing rules without
developing the record more fully. It therefore requests comment on the
interference environment and possible solutions from affected
operators.
Feeder Links
Since the fixed-satellite frequencies to be used for LEO MSS feeder
links may also be used by GSO satellites, the Committee studied the
sharing potential between LEO and GSO satellites. It concluded that
sharing was feasible. The Committee also studied the obligations of the
United States under RR 2613, which essentially requires a LEO operator
to cease operations when unacceptable interference is cause to a GSO
system. To afford LEO operators some protection, the Committee
suggested that the U.S. seek international agreement that RR 2613 will
not be invoked to require a LEO operator to terminate transmissions
unless: (1) The affected administrations reach agreement as to a level
of ``accepted interference,'' (2) the LEO system is operating in excess
of these levels, and (3) the excess interference is caused by the LEO
satellite's failure to maintain sufficient angular separation between
the satellites.
The Commission accepted the Committee's analysis that sharing
between LEO feeder links and GSO systems is feasible with coordination.
Further, the Commission agrees with the Committee's interpretation of
RR 2613 and has already begun to explore, in international forums,
issues relating to international coordination of and protection for LEO
system feeder links.
Several applicants request feeder links in the 5/6 GHz frequency
bands (C-band); other request the 20/30 GHz bands (Ka-band). The FAA
opposes feeder links at 5 GHz, arguing that feeder link operations
would be incompatible with its intended use of the band for new
navigation aids. In a related Further Notice of Proposed Rulemaking
regarding the Local Multi-point Distribution Service (CC Docket No. 92-
297; FCC No. 94-12) 59 FR 7964, February 17. 1994 adopted the same day
as this Notice, the Commission proposes to conduct a negotiated
rulemaking to assist it in assigning the 27.5-30.0 GHz frequency band.
It expects, in the context of that proceeding, to be able to identify
sufficient spectrum to satisfy 1.6/2/4 GHz MSS operators. The
Commission will, however, continue to pursue feeder links at 5 GHz and
will allow applicants to incorporate these bands or other bands if they
become available.
Intersatellite Links
Motorola's proposed system system includes intersatellite links in
the 23.18-23.38 GHz band. The Committee concluded that Motorola's use
of this band would be compatible with other operations in the band. The
Committee's recommended rules regarding intersatellite service
frequencies, coordination with government agencies, and sharing
criteria are contained in proposed rule Sec. 25.279.
Service Rules
Regulatory Classification
The 1993 Budget Act requires that the provision of space segment
capacity directly to commercial mobile radio service (CMRS) providers
be treated as common carriage. However, the Act gives the Commission
the discretion to determine whether the provision of space segment
capacity to CMRS providers should be treated as common carriage. (Most
of the pending applicants propose to offer service through resellers.)
The Commission tentatively concludes that 1.6/2.4 GHz MSS offering
will, in most cases, fall within the definition of CMRS. The Commission
requests comment on whether 1.6/2.4 GHz MSS space station licensees
making satellite capacity available to CMRS providers should be
required to operate as common carriers. Specifically, the Commission
requests comment regarding whether there may be any public interest
reasons to impose a legal compulsion upon 1.6/2.4 GHz MSS operators to
serve the public indifferently, and whether a decision to exempt
operators from common carriage requirements will allow them to engage
in unreasonable or anticompetitive practices. The Commission recognizes
that requiring common carriage may limit the amount of foreign
participation in these inherently global systems, potentially impeding
international coordination of these satellites. The Commission requests
comment on the extent to which applicants are seeking foreign
investment and the extent to which a common carriage requirement may
impact their plans. The Commission also requests comment regarding the
likelihood that 1.6/2.4 GHz MSS space station capacity will inherently
be offered as an indifferent holding out to the public.
System License and License Term
The Commission also proposes licensing and service rules (proposed
rules Secs. 25.143(a), (c) and (d), 25.120(e), and 25.143(e) and (g)).
These include blanket licensing for the space segment, a ten year
operating license that begins to run when the first LEO satellite is
launched, authority to replace older satellites as they are retired, a
filing window for next-generation system proposals, system
implementation milestones, and an annual reporting requirement.
Mobile Earth Station Licensing
The Commission proposes to license gateway and tracking, telemetry
and control (TT&C) stations as fixed-satellite earth stations under
part 25 of the Commission's Rules. It also proposes a blanket licensing
approach for mobile user transceivers under which a service vendor
would hold the authorization for a specified number of technically
identical units. The Commission's proposals for earth station licensing
are contained in Secs. 25.115(d) (applications for earth station
authorizations); 25.130(b) (filing requirements for transmitting earth
stations); 25.133(b) (period of construction; commencement of
construction); 25.136 (operating provisions for earth station networks
in the 1.6/2.4 GHz mobile-satellite service); and 25.213 (technical
requirements for the 1.6/2.4 GHz mobile-satellite service). The
Commission requests comment on these proposals.
To help maintain an interference-free environment, the Commission
proposes to require an end user to obtain the authorization of the
space station operator, either directly or through an authorized
service vendor, before the user may transmit to that system. The
Commission believes that this approach will facilitate roaming by
international user while still protecting the domestic electromagnetic
environment.
The regulatory treatment of earth station licensees will depend
upon whether they will be providing CMRS, although the Commission
expects that they will. Earth station licensees that provide CMRS must
be regulated as common carriers.
International Coordination
All space segment licensees will be required to provide the
Commission with all information required for international
coordination. The Commission will follow the coordination procedures
prescribed by the International Telecommunication Union and will work
with the global community to promote mobile satellite services through
the development of sharing techniques and the exploration of other
technical issues. The Commission will also require United States
licensees to meet all international obligations any national
requirements imposed by other licensing administrations regarding
operations within their borders. All decisions relating to implementing
1.6/2.4 GHz MSS within a country's territory will remain solely within
that country's jurisdiction and control.
Procedural Matters
This is a non-restricted notice and comment rulemaking proceeding.
Ex parte presentations are permitted, except during the Sunshine Agenda
period, provided that they are disclosed in accordance with Commission
rules. See generally 47 CFR 1.1202, 1.1203 and 1.1206(a).
Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 603,
this proceeding could affect the marketing opportunities of potential
new service providers or equipment manufacturers, who may be small
entities, in the voice mobile-satellite services. As this is a new
service, the number of such small businesses is unknown. Public comment
is requested on the initial regulatory flexibility analysis set out in
full, in the Commission's complete decision.
Pursuant to applicable procedures set forth in Secs. 1.415 and
1.1415 of the Commission's rules, 47 CFR 1.415 and 1.419, interested
parties may file comments on or before May 5, 1994, and reply comments
on or before June 6, 1994. All relevant and timely comments will be
considered by the Commission before final action is taken in this
proceeding.
Ordering Clauses
Accordingly, pursuant to authority contained in sections 4(i) and
303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 154(i)
and 303(r), we hereby give notice of our intent to adopt the
regulations and licensing policies described above.
It is ordered that the Secretary shall send a copy of this Notice
of Proposed Rulemaking to the Chief Counsel for Advocacy of the Small
Business Administration in accordance with 5 U.S.C. 601 et seq. (1981).
List of Subjects
47 CFR Part 25
Communications common carriers, Radio, Reporting and recordkeeping
requirements, Satellites.
47 CFR Part 94
Communications equipment, Radio, Reporting and recordkeeping
requirements.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-5829 Filed 3-11-94; 8:45 am]
BILLING CODE 6712-01-M
