**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of Inmarsat        | *  | SAT-MSC-20040210-00027       |
| Ventures Limited Request for     | *) |                              |
| Extension of Time Under Section  | ** |                              |
| 621(5) of the Communications     |    |                              |
| Satellite Act of 1962, as        | *  |                              |
| amended by the Open-Market       | *) |                              |
| Reorganization for the           | ** |                              |
| Betterment of International      |    |                              |
| Telecommunications Act.          | *  |                              |
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**Order**

**Adopted: June 24, 2004 Released: June 25, 2004**

By the International Bureau:

I.  **INTRODUCTION**

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1.  In this Order, we grant the request of Inmarsat Ventures Limited
    ("Inmarsat") for a six-month extension of the June 30, 2004 deadline
    for conducting an initial public offering ("IPO") as set forth in
    Section 621(5)(A)(ii) of the Communications Satellite Act of 1962,
    as amended by the Open-Market Reorganization for the Betterment of
    International Telecommunications Act (the "ORBIT Act").[^1]

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II. **BACKGROUND**

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2.  The International Maritime Satellite Organization was established by
    treaty in 1978 as an intergovernmental satellite organization
    ("IGO") to develop a global maritime satellite system to meet
    commercial maritime and safety communications needs of the United
    States and foreign countries.[^2] The ORBIT Act establishes criteria
    for Commission review of applications to serve the U.S. market by
    "successor entities" of the International Maritime Satellite
    Organization such as Inmarsat.[^3] Inmarsat is, therefore, subject
    to the requirement of Section 621(5)(A)(ii), that it conduct an
    initial public offering by the specific deadline stated under this
    provision of the ORBIT Act. The ORBIT Act initially required an IPO
    to be conducted by October 1, 2000, but Congress has amended the
    ORBIT Act several times to extend the statutory deadline for an
    IPO.[^4] On June 30, 2003, Congress amended Section 621(5)(A)(ii) of
    the ORBIT Act, to require Inmarsat to conduct its IPO by June 30,
    2004 and to grant the Commission discretion to extend this deadline
    to no later than December 31, 2004.[^5]

3.  On February 10, 2004, Inmarsat filed a letter informing the
    Commission of two transactions, which it described as meeting the
    IPO requirements under the ORBIT Act.[^6] The *February 10^th^
    Letter* was placed on public notice on March 5, 2004, and the
    pleading cycle closed on April 5, 2004.[^7] The Commission is
    currently reviewing Inmarsat's filing, along with pleadings filed in
    response to the public notice.[^8] In its filing of April 20, 2004,
    Inmarsat requests that we exercise the discretion granted by
    Congress to provide Inmarsat until December 31, 2004, to satisfy the
    IPO requirements of the ORBIT Act in the event that the Commission
    concludes that its transactions, as set forth in its *February
    10^th^ Letter,* are not consistent with the Act.[^9] In a May 26,
    2004, supplemental filing, Inmarsat explains that market factors and
    relevant business factors support such extension.[^10] Further,
    Inmarsat states that grant of an extension would, among other
    things, allow Inmarsat time to address any issues identified by the
    Commission should the Commission find that Inmarsat has not
    satisfied the IPO requirements of the ORBIT Act.[^11]

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III. **DISCUSSION**

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4.  The ORBIT Act provides that:

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(A) An initial public offering of securities of any successor entity or
    separated entity...

> \(ii\) shall be conducted, for the successor entities of Inmarsat, not
> later than
>
> June 30, 2004, except that the Commission may extend this deadline
>
> to not later than December 31, 2004.[^12]

In the past, the Commission and the Bureau have found that continued due
diligence on the part of Inmarsat in attempting to meet its ORBIT Act
requirements has justified IPO extensions.[^13] Inmarsat states that it
is continuing to take steps to satisfy its ORBIT Act requirements. For
instance, Inmarsat recounts that since the passage of the ORBIT Act in
2000, it has made efforts to satisfy the IPO requirements of the ORBIT
Act despite the difficulties that the stock markets world-wide have
experienced.[^14] Furthermore, while we have made no determination to
date on the merits of Inmarsat's *February 10^th^ Letter* and responsive
pleadings filed in late April, extension of the IPO deadline at this
late date would give the Commission sufficient time to review and
evaluate the entire record and render a decision. Thus, based upon all
circumstances, including Inmarsat's representations and ORBIT Act
revisions giving the Commission discretion in determining whether to
extend Inmarsat's IPO deadlines, we conclude that an extension of the
IPO deadline is warranted. We thereby make clear that services
previously authorized by the Commission, which use the Inmarsat system,
may continue, subject to the conditions in those authorizations*.*[^15]

> **IV. ORDERING CLAUSES**

5.  Accordingly, IT IS ORDERED, pursuant to Sections 621(2) and 621(5)
    of the Satellite Communications Act of 1962, as amended by the
    Open-Market Reorganization for the Betterment of International
    Telecommunications Act, and Section 628 of the Department of
    Commerce, Justice and State, the Judiciary, and Related Agencies
    Appropriations Act, 2002, Pub. L. No. 107-77, 115 Stat. 748, 804
    (2001), 47 U.S.C. §§ 763(2), 763(5), that Inmarsat Ventures Ltd.'s
    request for an extension of the June 30, 2004 deadline to December
    31, 2004 IS GRANTED, as noted above.

6.  IT IS FURTHER ORDERED that this Order shall be effective upon
    release.

> FEDERAL COMMUNICATIONS COMMISSION
>
> Donald Abelson
>
> Chief, International Bureau

[^1]: 47 U.S.C. § 763(5)(A)(ii). Congress amended the Satellite
    Communications Act of 1962, 47 U.S.C. §§ 701 *et seq*. (Satellite
    Act) by adopting the ORBIT Act, Pub. L. No. 106-180, 114 Stat. 48
    (2000), *codified at* 47 U.S.C. § 761 *et seq*. The ORBIT Act adds
    Title VI to the Satellite Act, entitled \"Communications Competition
    and Privatization.\"

[^2]: Convention of the International Maritime Satellite Organization
    and Operating Agreement of the International Maritime Satellite
    Organization (INMARSAT), *opened for signature* September 3, 1976,
    31 U.S.T. 1, T.I.A.S. No. 9605 (entered into force July 16, 1979)
    ("*Inmarsat Convention*").

[^3]: The ORBIT Act also applies to the International Telecommunications
    Satellite Organization ("INTELSAT"). INTELSAT and Inmarsat were
    originally intergovernmental satellite organizations ("IGOs")
    created by international agreements, as a result of initiatives
    undertaken in the early days of development of space technology by
    the United States under the Communications Satellite Act of 1962.

[^4]: Department of Commerce, Justice and State, the Judiciary, and
    Related Agencies Appropriations Act, 2002, Pub. L. No. 107-77, §
    628, 115 Stat. 748, 804 (2001); Orbit Technical Corrections Act of
    2003, Pub. L. No. 108-39 (2003). In addition to extending the IPO
    statutory deadline, in 2001, Congress struck the criteria under
    Section 621(5)(A) of the ORBIT Act, which originally directed the
    Commission to consider "market conditions and relevant business
    factors" when evaluating the timeframe for Inmarsat's initial public
    offering, thereby broadening the scope of the Commission's
    discretion in determining whether it could grant Inmarsat an
    extension of the IPO deadline.

[^5]: *See* Orbit Technical Corrections Act of 2003, Pub. L. No. 108-39
    (2003). The Commission has extended the IPO deadlines for Inmarsat
    on two occasions. *See* *Inmarsat Ventures Ltd., Request for
    Extension of Time Under Section 621(5) of the ORBIT Act*, Memorandum
    Opinion and Order, 15 FCC Rcd 19740 (2000) (*First Inmarsat
    Extension Order*); *Inmarsat Ventures Ltd., Request for Extension of
    Time Under Section 621(5) of the ORBIT Act*, Memorandum Opinion and
    Order, 16 FCC Rcd 13494 (2001) (*Second Inmarsat Extension Order*).
    The International Bureau has also granted an extension to Inmarsat
    pursuant to a delegation of authority by the Commission. *See
    Inmarsat Ventures Ltd, Request for Extension of Time Under Section
    651(5) of the ORBIT Act,* 17 FCC Rcd 25283 (Int'l Bur. 2002) (*Third
    Inmarsat Extension Order*).

[^6]: Letter from Alan Auckenthaler, Inmarsat, to Ms. Marlene H. Dortch,
    Secretary, Federal Communications Commission (filed Feb. 10, 2004)
    ("*February 10th Letter*").

[^7]: Public Notice, Policy Branch Information, Report No. SAT-00197
    (March 5, 2004).

[^8]: *See, e.g.,* Response of Mobile Satellite Ventures Subsidiary LLC
    (filed April 30, 2004)("MSV"). MSV, the only party commenting
    directly on the extension request, argued that Inmarsat Ltd. has
    failed to provide evidence that market conditions warrant such an
    extension.

[^9]: Consolidated Response of Inmarsat at 38 (filed April 20, 2004)
    ("*Inmarsat Consolidated Response*").

[^10]: Letter from Alan Auckenthaler, Inmarsat, to Marlene H. Dortch,
    Secretary, Federal Communications Commission (dated May 26, 2004)
    ("*May 26th Inmarsat Letter*").

[^11]: *Id.*

[^12]: 47 U.S.C. §763(5)(A)(ii).

[^13]: *First Inmarsat Extension Order*, 15 FCC Rcd at 19742-43 ¶¶ 8-10;
    *Second Inmarsat Extension Order*, 16 FCC Rcd at 13499-13500 ¶ 18;
    *Third Inmarsat Extension Order*, 17 FCC Rcd at 25285 ¶ 9.

[^14]: *May 26th Inmarsat Letter* at 2, 4. *See also First Inmarsat
    Extension Order*, 15 FCC Rcd 19740; *Second Inmarsat Extension
    Order*, 16 FCC Rcd; *Third Inmarsat Extension Order,* 17 FCC Rcd
    25283.

[^15]: *See, e.g., Comsat Corporation, d/b/a Comsat Mobile
    Communications,* Memorandum Opinion, Order and Authorization, 16 FCC
    Rcd 21661 (2001)("*Inmarsat Market Access Order")*.