DA 04-2509

August 11, 2004

**INTERNATIONAL AUTHORIZATIONS GRANTED**

**In re Applications of The News Corporation Limited and The DIRECTV
Group, Inc. (Transferors) and Constellation, LLC, Carlyle PanAmSat I,
LLC, Carlyle PanAmSat II, LLC, PEP PAS, LLC and PEOP PAS, LLC
(Transferees) for Authority to Transfer Control of PanAmSat Licensee
Corp.**

**IB Docket No. 04-209**

**By the Chief, International Bureau:**

On May 18 and May 27, 2004, The News Corporation Limited ("News Corp.")
and The DIRECTV Group, Inc., f/k/a Hughes Electronics Corporation ("The
DIRECTV Group" and, together with News Corp., "Transferors") and
Constellation, LLC ("Constellation"), Carlyle PanAmSat I, LLC ("Carlyle
PanAmSat I"), Carlyle PanAmSat II, LLC ("Carlyle PanAmSat II"), PEP PAS,
LLC ("PEP PAS") and PEOP PAS, LLC ("PEOP PAS" and, together with
Constellation, Carlyle PanAmSat I, Carlyle PanAmSat II and PEP PAS,
"Transferees") filed ten applications ("Applications") pursuant to
section 310(d) of the Communications Act of 1934, as amended.[^1] The
unopposed Applications seek consent to transfer control of various
non-common carrier fixed satellite service space station and earth
station licenses and authorizations held by PanAmSat Licensee Corp.
("PanAmSat LC") to the five Transferees, each of which is a limited
liability company organized under the laws of the State of Delaware.[^2]
The five Transferees are owned by private equity partnerships (the
"Private Equity Funds") associated with three U.S. private investment
firms: Kohlberg Kravis & Roberts Co. L.P. ("KKR"); TC Group, L.L.C.,
d/b/a The Carlyle Group ("Carlyle"); and Providence Equity Partners,
Inc. ("Providence"). Through the transaction, the Transferees will
become the owners of more than 99 percent of the stock of PanAmSat
Corporation ("PanAmSat"), the parent company of PanAmSat LC.[^3]

The International Bureau finds, upon consideration of the record, that
grant of the Applications will serve the public interest, convenience,
and necessity.[^4] Based on our review of the record, we find no
evidence to suggest that the Transferees lack the basic qualifications
to control PanAmSat LC.[^5] Further, the record contains no evidence
that the proposed transfer would harm competition in any relevant
product or geographic market. [^6] The Transferees have no ownership
investments in any other satellite operator and the other communications
investments held by the private equity funds associated with KKR,
Carlyle and Providence do not present competitive concerns.[^7]
Moreover, the private equity investments are intended to provide a more
flexible capital structure to facilitate PanAmSat's efforts to expand
its customer base and develop new products and services.[^8]

Therefore, pursuant to section 310(d) of the Communications Act of 1934,
as amended, and section 0.261 of the Commission's rules,[^9] the
International Bureau hereby grants the Applications listed in Attachment
A to this Public Notice, effective upon release of this Public Notice.
As requested by Applicants, our approval of the transfer of control of
PanAmSat LC includes authority for the new shareholders of PanAmSat to
acquire control with respect to authorizations granted from May 18, 2004
until consummation of the grant.[^10] Further, as requested by
Applicants,[^11] we confirm that the new procedures adopted in the
*First Space Station Reform Order* apply to PanAmSat's pending
applications.[^12]

The transfers of control shall be completed within 60 days from the date
of authorization.[^13] Following consummation of the transaction,
Applicants shall update any pending applications to reflect the
transaction approved by this public notice.[^14] Within 30 days of
consummation, the Commission shall be notified by letter of the date of
consummation and the file numbers of the applications involved in the
transaction.[^15] As applicable, the Applicants shall follow the
Commission's procedures for changes of ownership of satellites on the
Permitted List.[^16]

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 this Public
Notice.

-   FCC --

**Attachment A**

+-----------------+----------------------------------------------------+
| **PANAMSAT      |                                                    |
| LICENSEE        |                                                    |
| CORP.**         |                                                    |
+-----------------+----------------------------------------------------+
| **[Space        |                                                    |
| Station         |                                                    |
| Licenses]       |                                                    |
| {.underline}:** |                                                    |
+-----------------+----------------------------------------------------+
| ***File         | ***Call Signs***                                   |
| Number***       |                                                    |
+-----------------+----------------------------------------------------+
| SAT-T/C         | CS91004 (PAS-5); PAS-4; PAS-2R; S2359 (PAS-8B);    |
| -20040518-00100 | S2368 (PAS-1R); S2380 (PAS-23); PAS-6; S2382       |
|                 | (PAS-24); S2378 (Galaxy X-R); Galaxy V; S2146      |
|                 | (Galaxy IX); S2131 (Galaxy I-R(S)); SBS-6; S2253   |
|                 | (Galaxy XI); S2381 (Galaxy III-C); Galaxy III-R;   |
|                 | Galaxy VIII(I); S2377 (Galaxy IV-R); S2422 (Galaxy |
|                 | XII); S2386 (Galaxy XIII); S2423 (SBS-6R); S2385   |
|                 | (Galaxy XIV); PAS-4R; PAS-9; PAS-21                |
+-----------------+----------------------------------------------------+
| SAT-T/C         | KS39 (SBS-4)                                       |
| -20040527-00108 |                                                    |
+-----------------+----------------------------------------------------+
| **[Space        |                                                    |
| Station Special |                                                    |
| Temporary       |                                                    |
| Authorizations] |                                                    |
| {.underline}:** |                                                    |
+-----------------+----------------------------------------------------+
| ***File         | ***Call Signs***                                   |
| Number***       |                                                    |
+-----------------+----------------------------------------------------+
| SAT-STA         | PAS-9                                              |
| -20040518-00099 |                                                    |
+-----------------+----------------------------------------------------+
| SAT-STA         | S2460 (PAS-5)                                      |
| -20040518-00098 |                                                    |
+-----------------+----------------------------------------------------+
| SAT-STA         | S2146 (Galaxy IX)                                  |
| -20040518-00097 |                                                    |
+-----------------+----------------------------------------------------+
| SAT-STA         | S2422 (Galaxy XII)                                 |
| -20040518-00096 |                                                    |
+-----------------+----------------------------------------------------+
| SAT-STA         | Galaxy VIII(I)                                     |
| -20040518-00094 |                                                    |
+-----------------+----------------------------------------------------+
| **[Satellite    |                                                    |
| Earth Station   |                                                    |
| Licenses]       |                                                    |
| {.underline}:** |                                                    |
+-----------------+----------------------------------------------------+
| ***File         | ***Call Signs***                                   |
| Number***       |                                                    |
+-----------------+----------------------------------------------------+
| SES-T/C         | E010280 (VSAT Transmit/Receive)                    |
| -20040518-00692 |                                                    |
+-----------------+----------------------------------------------------+
| SES-T/C         | E970051; E950067; E000063; E000363; E010113;       |
| -20040518-00694 | E010131; E010133; E4132; E900089; E920340;         |
|                 | E920377; E930088; E940368; E950502; E959508:       |
|                 | E980501; E980503; E990091; E990323; E990334;       |
|                 | E990364; E990365; E2178; E3943; E860175; E881304;  |
|                 | E900621; E900757; KL92; E000048; E000049; E000274; |
|                 | E000364; E000488; E010019; E010112; E7465;         |
|                 | E881286; E890530; E940333; E940532; E950267;       |
|                 | E950307; E970352; E970391; E970392; E980460;       |
|                 | E980467; E980502; E990092; E990093; E990214;       |
|                 | E990223; E990224; E990363; E990433; KA244; KA245;  |
|                 | KA391; KA450; KA71; E020309; E030012; E990024;     |
|                 | E030106; E030096; E030232; E030072; E030073;       |
|                 | E030174; E030175; E030306; E030307; E990441;       |
|                 | E020260; E030182; E960411; E980069; KA416;         |
|                 | E990056; E970189 (Transmit/Receive)                |
+-----------------+----------------------------------------------------+
| SES-T/C         | E990055; E010118                                   |
| -20040518-00693 |                                                    |
|                 | (Temporary-fixed; transmit/receive authorization)  |
+-----------------+----------------------------------------------------+

[^1]: 47 U.S.C. § 310(d). On June 2, 2004, the International Bureau
    placed the Applications on public notice as acceptable for filing.
    *See The News Corporation Limited and The DIRECTV Group, Inc.
    (Transferors) and Constellation, LLC, Carlyle PanAmSat I, LLC,
    Carlyle PanAmSat II, LLC, PEP PAS, LLC and PEOP PAS, LLC
    (Transferees) Seek Approval to Transfer Control of FCC Licenses and
    Authorizations Held by PanAmSat Licensee Corp., Pleading Cycle
    Established*, IB Docket No. 04-209, Public Notice, DA 04-1605 (Int'l
    Bur. June 2, 2004). No comments were filed in response to the June
    2, 2004 public notice. Moreover, we received no comment from the
    Executive Branch after advising it of the Applications.

[^2]: ^?^ Pursuant to section 1.65 of the rules, 47 C.F.R. § 1.65, on
    June 24, 2004, Applicants updated the information provided in the
    Applications. *See* Letter from Counsel for Applicants to Secretary,
    Federal Communications Commission, IB Docket 04-209 (dated June 24,
    2004) ("June 24 Letter") (adding two new officers).

[^3]: ^?^ *See, e.g.,* Application of The News Corporation Limited and
    The DIRECTV Group, Inc. (Transferors) and Constellation, LLC,
    Carlyle PanAmSat I, LLC, Carlyle PanAmSat II, LLC, PEP PAS, LLC and
    PEOP PAS, LLC (Transferees) for Authority to Transfer Control of
    PanAmSat Licensee Corp., File No. SAT-T/C-20040518-00100, FCC Form
    312, Exhibit 3, Consolidated Application for Authority to Transfer
    Control ("Consolidated Application"), at 12. The remainder of the
    stock will be held by certain PanAmSat employees who have agreed not
    to have certain of their equity interests in PanAmSat cashed out in
    the transaction. *See id.*

[^4]: ^?^ *See* 47 U.S.C. § 310(d*).*

[^5]: ^?^ We note that section 310 is not applicable to the licenses and
    authorizations involved in the transfer of control. *See* 47 U.S.C.
    § 310(a), (b)(1)-(4). *See also General Motors Corporation and
    Hughes Electronics Corporation, Transferors, and The News
    Corporation Limited, Transferee*, Memorandum Opinion and Order, MB
    Docket 03-124, FCC 03-330, 19 FCC Rcd 473, 490 ¶ 31 (2004)
    ("*Hughes/News Order*") (section 310(a) and (b) does not apply to
    any of the non-common carrier earth and space station licenses
    transferred to News Corp., including those held by PanAmSat LC).

[^6]: ^?^ PanAmSat is a major provider of fixed satellite services
    ("FSS") in the United States. *See Hughes/News Order*, 19 FCC Rcd at
    586 ¶ 253. PanAmSat's satellites carry video programming for
    broadcasters and other programmers, as well as Internet backbone
    support, communications network support and pipelines for
    telecommunications providers. *See id*. In the *Hughes/News Order*,
    the Commission noted that there appears to be sufficient excess
    capacity in the FSS market, and found that PanAmSat continues to
    possess limited market power in the provision of FSS capacity. *See
    id*. at 587 ¶ 258.

[^7]: ^?^ *See, e.g.,* Consolidated Application at 6-12 (other
    communications investments). *See also* June 24 Letter at 2
    (Carlyle's acquisition of other communications assets).

[^8]: ^?^ *See, e.g.,* Consolidated Application at 16.

[^9]: ^?^ 47 C.F.R. § 0.261.

[^10]: ^?^ Applicants ask that the grant of the transfer applications
    include authority for the new shareholders of PanAmSat to acquire
    control with respect to: (1) all authorizations issued to PanAmSat
    or any of its subsidiaries during the period following the filing of
    the Applications (that is, beginning May 18, 2004) and the
    consummation of the transaction following Commission approval; (2)
    all construction permits held by such companies that mature into
    licenses during the period following the filing of the Applications
    and the consummation of the transaction following Commission
    approval; and (3) all applications filed after the date of the
    Applications and pending at the time of consummation of the proposed
    transfer. *See, e.g., Consolidated Application* at 20.

[^11]: ^?^ *See, e.g.,* Consolidated Application at 19-20.

[^12]: ^?^ *See Amendment of the Commission's Space Station Licensing
    Rules and Policies,* First Report and Order and Further Notice of
    Proposing Rulemaking, 18 FCC Rcd 10760, 10864 ¶ 276 (2003) ("*First
    Space Station Reform Order*"). *See also General Motors Corporation
    and Hughes Corporation, Transferors, and The News Corporation
    Limited, Transferee,* Supplemental Order, MB Docket No. 03-124, DA
    04-961, 19 FCC Rcd 6309, 6311 ¶ 4 (Int'l Bur., WTB, OET 2004).

[^13]: ^?^ *See* 47 C.F.R. § 25.119(f).

[^14]: ^?^ *See* 47 C.F.R. § 1.65.

[^15]: ^?^ *See* 47 C.F.R. § 25.119(f).

[^16]: ^?^ *See First Space Station Reform Order*, 18 FCC Rcd at 10880
    ¶¶ 326-327; 47 C.F.R. § 25.137(g).