Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

In re Application of )

)

**USAsia Telecom, LLC** ) File No. SES-LIC-19991029-01895

) Call sign: E990452

For Authority to Operate a )

Transmit/Receive Earth Station )

in Kapolei, Hawaii via JCSAT-3 )

**[ORDER AND AUTHORIZATION]{.underline}**

**Adopted:** April 21, 2000 **Released:** April 24, 2000

**By the Chief, Satellite and Radiocommunication Division, International
Bureau:**

**I. INTRODUCTION**

II. 1\. In this Order, we authorize USAsia Telecom, LLC to operate an
    earth station in Kapolei, Hawaii to communicate with a Japanese
    satellite, JCSAT-3, to provide digital data and internet protocol
    services between United States and the Asia-Pacific region. This
    action represents another step in implementing U.S. market-opening
    commitments to satellites licensed by other countries. Grant of this
    application should stimulate competition in the U.S. fixed-
    satellite services market by providing U.S. customers with increased
    alternatives in choosing communications providers and services.
    Increased competition may also lead to reduced prices for those
    services and further technological innovation.

> **II. BACKGROUND**

2.  In the *DISCO II* *Order*, the Commission established procedures and
    policies for authorizing U.S. earth station licensees to access
    non-U.S. satellites for international and domestic services in order
    to implement 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 procedure requires a U.S. earth station operator seeking to
    communicate with a non-U.S. satellite to file an earth station
    application for an initial license or for a modification of its
    existing earth station license, listing the foreign satellite as a
    point of communication. The Commission will then conduct a public
    interest analysis set forth in *DISCO II* to determine whether the
    application satisfies the various criteria established for
    evaluating applications to use non-U.S. licensed space stations to
    provide satellite service in the United States.

3\. Because the Commission does not issue duplicative U.S. licenses for
space stations licensed by another administration,[^2] a U.S. earth
station application often represents the Commission's first opportunity
to evaluate whether the foreign space station complies with the
Commission's technical, legal, and financial qualification requirements.
The first earth station applicant seeking to communicate with a
particular foreign satellite must therefore include the same detailed
information about the space station and its operations that the
Commission requires from U.S. space station applicants.[^3] Financial
information is not required if the satellite has already been launched
and technical information is not required if the satellite operator has
already provided the requisite information during international
coordination with the United States.[^4]

4\. USAsia Telecom seeks authority to operate an earth station that will
provide a variety of fixed-satellite services in the conventional
C-band[^5] throughout the Pacific region using the JCSAT-3 satellite
located at 232 W.L. (123 E.L.) JCSAT-3 is a satellite operated by Japan
Satellite Systems, Inc. ("JSS"), which is licensed by the Japanese
government. The application is unopposed.

III. **DISCUSSION**

```{=html}
<!-- -->
```
5.  In the *DISCO II Order*, the Commission set forth the public
    interest analysis applicable in evaluating applications to use
    non-U.S. licensed space stations to provide satellite service in the
    United States. In conducting this analysis, we consider the effect
    on competition in the United States, spectrum availability,
    eligibility requirements and operating (*e.g.,* technical)
    requirements. In addition, we consider issues of national security,
    law enforcement, foreign policy and trade policy, when those issues
    are brought to our attention by the Executive Branch with regard to
    a particular application. After consideration of these issues, we
    find that the public interest would be served by a grant of USAsia
    Telecom's application.

6.  **[Competition Considerations]{.underline}.** In *DISCO II*, the
    Commission established a rebuttable presumption in favor of entry by
    non-U.S. licensed satellites licensed by WTO members to provide
    services covered by U.S. commitments under the WTO Basic Telecom
    Agreement. This means we will presume that WTO-member licensed
    satellites providing WTO-covered services satisfy the competition
    component of the public interest analysis. The Commission concluded
    that the market access commitments made under the WTO Basic Telecom
    Agreement will help ensure the presence and advancement of
    competition in the satellite services market and yield the benefits
    of a competitive marketplace to consumers in the United States and
    other countries.

7\. USAsia Telecom seeks to access a satellite licensed by Japan, a
WTO-member, to provide fixed-satellite service, a WTO-covered service,
in the United States. No public comments were filed that presented any
challenge to this presumption. Consequently, we presume that grant of
USAsia Telecom's application will further competition in the United
States.

8\. **[Spectrum Availability]{.underline}.** In *DISCO II*, the
Commission determined that, given the scarcity of orbit and spectrum
resources, it would consider spectrum availability as a factor in
determining whether to allow a foreign satellite to serve the United
States.[^6] This is consistent with the Chairman's Note to the WTO Basic
Telecom Agreement, which states that WTO Members may exercise their
domestic spectrum/frequency management policies when considering foreign
entry.

9.  Licensing USAsia Telecom to access JCSAT-3 at the 232 W.L. orbit
    location will neither affect operations of any U.S.-licensed
    satellites nor contravene the Commission's spectrum/frequency
    management policies. Indeed, other earth stations have been licensed
    to access this same satellite prior to DISCO II and there have been
    no interference problems to date.[^7]

10\. **[Eligibility Requirements]{.underline}.** The Commission's *DISCO
II Order* requires that space station operators not licensed by the
Commission meet the same legal, financial and technical qualifications
required of U.S. licensed space station operators. Nothing in the record
raises concerns about JSS's legal qualifications to provide satellite
services in the United States. Further, we need not examine JSS's
financial qualifications because JCSAT-3 is already in orbit.

II. 11\. We must, however, review JCSAT-3's technical qualifications.
    The Commission's satellite licensing policy is predicated upon
    two-degree spacing between geostationary satellites.[^8] This policy
    permits the maximum use of the geostationary satellite orbit.[^9]
    Applicants must demonstrate that they comply with the Commission's
    technical requirements, designed to permit two-degree orbital
    spacing, before being authorized to provide service in the United
    States. The Commission may license satellites that are not
    two-degree compliant (or earth stations seeking to access such), but
    only when the applicants can demonstrate that their operations will
    not cause harmful interference to existing two-degree compliant
    satellite operations. Further, non-conforming operations are
    conditioned upon a licensee accommodating future satellite networks
    serving the United States that are two-degree compliant.[^10]

12\. Based on the technical information submitted by USAsia Telecom, we
conclude that JCSAT-3 meets the Part 25 two-degree spacing requirements,
with one exception. Part 25.210 (a) (1) requires C-band domestic
satellites to use orthogonal linear polarization, with one of the planes
defined by the equatorial plane.[^11] On JCSAT-3, the polarization
planes are rotated counterclockwise by 22 relative to the requirement of
§ 25.210 (a) (1).

13. The intent of the C-band polarization requirements is to minimize
    the interference potential when analog video transmissions meet the
    center-frequency constraints of § 25.211 (a) and neighboring
    satellites are orthogonally polarized for co-channel analog video
    transmissions.[^12] In the situation where digital signals of
    uniform power spectral density (*i.e.,* without the spectral density
    peaks characteristic of analog transmissions) are being transmitted
    in both polarizations, the interference potential into a neighboring
    satellite's network is not dependent on the angle of the
    polarization planes relative to the equatorial plane.

14\. Since USAsia Telecom has requested to use digital transmissions
only in its license application, we place no additional conditions on
USAsia Telecom's license, at this time, as a result of JCSAT-3's
non-conforming polarization. In the future, should USAsia Telecom wish
to transmit analog video signals, it must file an application for
license modification. At that time, we will consider whether additional
conditions on USAsia Telecom's operations are necessary.

15\. Further, as with U.S. satellites, the Commission may in the future
authorize services over U.S.-licensed or non-U.S.-licensed space
stations that are two-degree compliant at orbital locations as close as
two degrees from JCSAT-3. Should the Commission do so, JSS would be
required to coordinate, in good faith, with the licensee of that
satellite.

16\. **[Other Issues]{.underline}.** As described above, under *DISCO
II*, national security, law enforcement, foreign policy, and trade
concerns are included in the public interest analysis. Nothing in the
record before us raises any such concerns.

**IV. CONCLUSION**

IV. 17\. We find that USAsia Telecom's proposed communications with
    JCSAT-3 satisfies the Commission's *DISCO II* policies regarding
    U.S. access to space stations licensed by foreign administrations.
    Thus, a grant of the application will serve the public interest.

```{=html}
<!-- -->
```
V.  **ORDERING CLAUSES**

18\. Accordingly, IT IS ORDERED that USAsia Telecom's application, File
No. SAT-LIC-19991029-01895, IS GRANTED and USAsia Telecom is authorized
to operate its 9.3 meter earth station at Kapolei, Hawaii (E990452) to
communicate with the JSAT-3 satellite for the provision of digital data
and internet protocol services between the United States and the
Asia-Pacific region.

19\. IT IS FURTHER ORDERED that USAsia Telecom is authorized to provide
service using the 3700-4200 MHz/5925-6425 MHz frequencies.

20\. IT IS FURTHER ORDERED that this authorization does not authorize
USAsia Telecom to provide any Direct-to-Home ("DTH"), Direct Broadcast
Satellite ("DBS") service or Digital Audio Radio Service ("DARS") to,
from, or within the United States.

21\. IT IS FURTHER ORDERED that this Order is issued pursuant to Section
0.261 of the Commission's rules on delegations of authority, 47 C.F.R. §
0.261. This Order shall be effective upon release. 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 and 1.115,
may be filed within 30 days of public notice of the release of this
Order.

FEDERAL COMMUNICATIONS COMMISSION

Thomas S. Tycz

Chief,

Satellite and Radiocommunication Division

[^1]: *Amendment of the Commission\'s Regulatory Policies to Allow
    Non-U.S. Licensed Space Stations Provide Domestic and International
    Satellite Service in the United States*, IB Docket No. 96-111,
    *Notice of Proposed Rulemaking*, 11 FCC Rcd 18178 (1996), *Report
    and Order*, 12 FCC Rcd 24094 (1997) (\"*DISCO II*\").

[^2]: *Id.* at 24174 (para.188).

[^3]: 47 C.F.R. § 25.137. This regulation requires foreign satellites to
    provide the information required from U.S. space stations under 47
    C.F.R. § 25.114.

[^4]: 47 C.F.R. § 25.137.

[^5]: The C-band refers to the 3700-4200 MHz/5925-6425 MHz frequencies.

[^6]: *DISCO II*, 12 FCC Rcd. at 24158 (para.149).

[^7]: *See Vision Accomplished, Inc.*, 11 FCC Rcd. 3716 (1995).

[^8]: For more information regarding the Commission's two-degree spacing
    policy, see *Licensing Space Stations in the Domestic
    Fixed-Satellite Service,* 48 Fed. Reg. 40233 (Sept. 6, 1983).

[^9]: *Assignment of Orbital Location to Space Stations in the Domestic
    Fixed-Satellite*, 11 FCC Rcd 13788, 13790 (1996). Prior to the
    Commission's adoption of the two-degree spacing policy, satellites
    in the geostationary satellite orbit were usually spaced three or
    four degrees apart. By adopting rules that enabled satellite
    operators to place their space stations two degrees apart, the
    Commission was able to accommodate more geostationary satellites.

[^10]: *See e.g., Systematics General Corporation,* 2 FCC Rcd. 7550,
    7551 (1987); *New Skies Satellites, N.V.*, 14 FCC Rcd 13003, 13038
    (1999).

[^11]: Since *DISCO II* requires that non-U.S. space station meet the
    same technical requirements as U.S.-licensed satellites, the
    requirements of Part 25.210(a) also apply to the JCSAT-3 satellite.

[^12]: 47 C.F.R. § 25.211.