**Before the**

**FEDERAL COMMUNICATIONS COMMISSION**

**Washington, D.C. 20554**

In the Matter of )

)

PANAMSAT LICENSEE CORP. ) File No. 111-SAT-P/LA-97

) SAT-AMD-19990615-00067

Application for authority to launch )

and operate a C/Ku-band hybrid )

Fixed-Satellite Service space station )

[ORDER AND AUTHORIZATION]{.underline}

Adopted: February 25, 2000 Released: February 25, 2000

By the Chief, Satellite and Radiocommunication Division:

I. [INTRODUCTION]{.underline}

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level71. By this Order, we grant PanAmSat Licensee Corp.
(\"PanAmSat\") authority to operate its Galaxy XI satellite, first, on
an interim basis at 99° W.L., and, ultimately, at its assigned 91° W.L.
orbit location. This will allow PanAmSat to continue to provide service
to customers who have come to rely on satellite facilities that Galaxy
XI will replace.

II\. [BACKGROUND]{.underline}

2\. In August 1997, PanAmSat filed an application for authority to
launch and operate a C/Ku-band hybrid communications satellite known as
Galaxy II(H) at 74° W.L.[^1] In June 1999, PanAmSat amended the
application to rename the satellite Galaxy XI and to relocate Galaxy XI
from 74° W.L. to 91° W.L.[^2] PanAmSat states that the most efficient
use of Galaxy XI\'s capacity would be to station it at 91° W.L. as a
replacement for the Galaxy VII satellite. Because of the untimely loss
of the Galaxy IV satellite in May 1998, however, PanAmSat further

requests authority to locate Galaxy XI, on an interim basis, at the 99°
W.L. orbital location previously occupied by Galaxy IV.[^3] PanAmSat
also proposes to modify its spacecraft to add the use of "extended
Ku-band frequencies" for both domestic and international services and to
expand the spacecraft's coverage area for both standard and extended
Ku-band to include South America.[^4]According to PanAmSat, this would
allow it to continue to provide services to its customers from that
location pending the launch of the Galaxy IV-R satellite in the year
2000. Once Galaxy IV-R commences service, PanAmSat will relocate Galaxy
XI to 91° W.L. Galaxy XI will provide a wide range of communications
services, including programming distribution, VSAT service, video
backhaul, satellite news gathering, teleconferencing, and high-speed
image transmissions, to satellite users in North, South, and Central
America. Galaxy XI was launched on December 21, 1999.[^5]

III\. [DISCUSSION]{.underline}

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level73. We find that PanAmSat is legally, financially,
technically and otherwise qualified to launch and operate the Galaxy XI
satellite and that a grant of its application will serve the public
interest.[^6] PanAmSat\'s legal qualifications are a matter of record
and the Commission has on several occasions found that PanAmSat
possesses the necessary legal qualifications to be a Commission
licensee. With respect to financial qualifications, PanAmSat provided a
balance sheet and income statements of its parent, Hughes Electronic
Corporation (\"HEC\"), demonstrating adequate funds to finance the
construction, launch, and operation for one year of Galaxy XI.[^7]
HEC\'s balance sheet as of December 31, 1998 shows total current assets
of \$3.8 billion which is more than adequate to cover PanAmSat\'s
projected cost of \$297 million to construct, launch, and operate Galaxy
XI for one year.[^8] Further, we find that Galaxy XI complies with all
Commission technical requirements.

4\. To ensure service continuity to both operators and their customers,
the Commission will generally authorize replacement satellites at the
same location as the satellites they are replacing.[^9] Here, the Galaxy
XI satellite will replace the Galaxy VII satellite at 91° W.L. when it
reaches its end-of-life in 2000 but, in the interim, will replace the
Galaxy IV satellite at 99° W.L until the Galaxy IV-R satellite is
operational. Thus, use of Galaxy XI at these locations will ensure
continuity of service to PanAmSat customers.

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level75. Harris Corporation-Farinon Division (\"Harris\") and
Digital Microwave Corporation (\"DMC\") filed joint comments in response
to PanAmSat\'s application, noting their concern that PanAmSat\'s
proposed fixed-satellite service (\"FSS\") system could cause harm to
existing and potential fixed service operations.[^10] According to
Harris and DMC, if PanAmSat provides FSS in the United States in the
10.95-11.2 GHz and 11.7-12.2 GHz bands, its operations may cause harmful
interference to fixed-service operations in these bands. Consequently,
Harris and DMC argue that a grant of the application must be deferred
until a study is conducted to determine whether FSS and fixed
terrestrial service systems can operate compatibly in these frequency
bands.[^11] Harris and DMC also argue that to facilitate co-primary use
of the 11 GHz band in the United States satellite applicants must
include the following additional information in their applications: (1)
earth station deployment plans, antenna size and elevation, receiver
noise floor, orbit, antenna, transmit power, and bandwidth
characteristics, and (2) the number of satellites in its system,
elevation, orbit, antenna, transmit power, and bandwidth characteristics
of the satellites.

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level76. PanAmSat states that its proposed operations in the
10.95-11.2 GHz and 11.7-12.2 GHz bands are in accord with the Table of
Frequency Allocations. Specifically, PanAmSat notes that the 11.7-12.2
GHz band is allocated to the FSS on a primary basis.[^12] PanAmSat also
notes that Commission rules expressly contemplate sharing between
co-primary terrestrial and satellite operations in the 10.95-11.2 GHz
band.[^13] PanAmSat states that because it will comply with the power
flux density limit specified in the Commission\'s rules for satellite
systems operating in these bands, its operations will not interfere with
co-primary terrestrial systems operating in the same band.

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level77. We find no basis for Harris and DMC\'s argument that we
should defer grant of PanAmSat\'s application because operation of
Galaxy XI in the 11.7-12.2 GHz frequency band will result in harmful
interference to existing or planned fixed-service operations in that
band. PanAmSat\'s proposed use of "conventional" Ku-band frequencies is
in accord with the primary allocation to FSS set forth in the Table of
Frequency Allocations. The fixed services operate in the 11.7-12.1 GHz
frequency bands on a secondary basis and are not protected against
potential interference from primary services.[^14] Moreover, there is no
allocation in the international Radio Regulations to the fixed-services
in the12.1-12.2 GHz band in Region 2. We also note that the PanAmSat
satellites that Galaxy XI will replace are already operating in the
11.7-12.2 GHz frequency band, with no reported cases of interference to
terrestrial stations.

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level78. There is also no basis for Harris and DMC\'s concern
about the potential for interference between fixed service systems and
FSS systems in the 10.95-11.2 GHz frequency band. Domestically and
internationally, the 10.7-11.7 GHz frequency band is allocated to the
fixed service and to the FSS on a co-primary basis for space-to-Earth
transmissions. Given the power flux density limits specified in the
Commission\'s rules for operations in these bands, we do not believe
that operation of Galaxy XI will cause interference to other co-primary
services in this band.[^15]

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level79. Since PanAmSat\'s proposed operation of the Galaxy XI
satellite in the 10.95-11.2 GHz and 11.7-12.2 GHz bands is in accord
with the Table of Frequency Allocations and other Commission rules, we
find no need to condition this authorization on the completion of future
FSS/fixed service sharing studies or the submission of additional
information by PanAmSat.[^16] Harris and DMC\'s request for a study and
additional information is based on its desire to facilitate co-primary
use of the conventional Ku-band in the future.[^17] This consideration
is outside the scope of our action here and has no bearing on whether
PanAmSat should be authorized to launch and operate Galaxy XI to replace
existing satellites. We also note that Section 25.251(b) of the
Commission\'s Rules, 47 C.F.R. § 25.251(b), which the commenters cite as
support for its argument that PanAmSat should supply the Commission with
additional information, pertains to the coordination of earth stations
with terrestrial stations. These rules will be addressed when
considering earth station applications that propose to operate with
Galaxy XI.

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level710. [13.75-14.0 GHz Frequency Band]{.underline}. The
13.75-14.0 GHz band has been allocated domestically and internationally
to the fixed-satellite service (FSS), subject to restrictions embodied
in certain footnotes to the regulations. In particular, footnote S5.503A
to the International Telecommunication Union (ITU) Radio Regulations
requires that, prior to 1 January 2000, the FSS shall not cause harmful
interference to non-geostationary space stations in the space research
and Earth exploration-satellite services.[^18] There are further
restrictions placed on the FSS in footnotes S5.502 and S5.503.[^19] In
addition, concerning domestic allocations, footnote US337 to 47 C.F.R. §
2.106 requires that coordination of earth stations operating in the
13.75-13.80 GHz band through the National Telecommunications and
Information Administration (NTIA) Interdepartment Radio Advisory
Committee's Frequency Assignment Subcommittee in order to minimize
interference to the forward space-to-space link of the National
Aeronautics and Space Administration\'s Tracking and Data Relay
Satellite System.[^20] In this regard, we have received a letter from
the NTIA requesting that we identify these requirements in any grant of
authority to operate a satellite in the 13.75-14.0 GHz band.[^21] We,
therefore, will require that the operations of the Galaxy XI satellite
in the band 13.75-14.0 GHz be consistent with these international and
domestic regulatory footnotes.

11\. Finally, we grant PanAmSat's request to include coverage of South
America from the Galaxy XI spacecraft. We note that DISCO I changed the
policy that previously limited domestic fixed-satellites from providing
international service.[^22] The new policy, instead, eliminated the
distinction between U.S.-licensed domestic fixed-satellites and
international separate system satellites.[^23] Therefore, Galaxy XI may
serve South America in this situation, subject to the usual requirements
of § 25.211 concerning international coordination and the requirement to
comply with applicable laws regulations, rules, and licensing procedures
in the countries it wishes to serve.[^24]

IV\. [CONCLUSION AND ORDERING CLAUSES]{.underline}

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level712. As set forth above, PanAmSat possesses the requisite
legal, financial, and technical qualifications to construct, launch and
operate the Galaxy XI satellite. We also find that a grant of
PanAmSat\'s application will serve the public interest by ensuring
continuity of service for the customers of those satellites that Galaxy
XI will replace.

13\. Accordingly, IT IS ORDERED that PanAmSat\'s application, File No.
SAT-AMD-19990615-00067, as amended, IS GRANTED and PanAmSat is
authorized to launch and operate its Galaxy XI satellite at 99° W.L. on
an interim basis pending launch and operation of the Galaxy IV-R
satellite into that location, and then operate at 91° W.L. in accordance
with terms, conditions, and technical specifications set forth in its
application.

14\. IT IS FURTHER ORDERED that, PanAmSat shall prepare the necessary
information, as may be required, for submission to the ITU to initiate
and complete the advance publication, international coordination, and
notification process of this space station in accordance with the ITU
Radio Regulations. We also remind all licensees that no protection from
interference caused by radio stations authorized by other
administrations is guaranteed unless coordination procedures are timely
completed or, with respect to individual administrations, by
successfully completing coordination agreements. Any radio station
authorization for which coordination has not been completed may be
subject to additional terms and conditions as required to effect
coordination of the frequency assignments of other administrations.
*See* 47 C.F.R. § 25.111(b).

15\. IT IS FURTHER ORDERED that the operation of the Galaxy XI satellite
network in the 13.75-14.0 GHz band shall be in accordance with footnotes
S5.502 and S5.503 to the international Radio Regulations and footnote
US337 to 47 C.F.R. § 2.106.

16\. IT IS FURTHER ORDERED that the operation of the Galaxy XI satellite
network in the 13.75-14.0 GHz band shall be in accordance with footnote
S5.503A to the international Radio Regulations.

17\. IT IS FURTHER ORDERED that the operation of the Galaxy XI satellite
network in the 10.95-11.2 GHz band is limited to international
operations in accordance with NG104.

18\. IT IS FURTHER ORDERED that PanAmSat is obliged to comply with the
applicable laws, regulations, rules, and licensing procedures in those
countries it proposes to serve.

19\. IT IS FURTHER ORDERED that the license term for the Galaxy XI
satellite is ten years and will begin to run on the date the licensee
certifies to the Commission that the satellite has been successfully
placed into orbit and its operation fully conforms to the terms and
conditions of this authorization.

20\. PanAmSat is afforded thirty days from the date of release of this
order and authorization to decline this authorization as conditioned.
Failure to respond within this period will constitute formal acceptance
of the authorization as conditioned.

21\. The Order is issued pursuant to Section 0.261 of the Commission\'s
rules on delegated authority, 47 C.F.R. § 0.261, and is effective upon
adoption. 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
the release of this order (*See* 47 C.F.R. § 1.4(b)(2)).

FEDERAL COMMUNICATIONS COMMISSION

Thomas S. Tycz

Chief

Satellite and Radiocommunication Division

[^1]: ^?^ *See* PanAmSat Application, File No. 111-SAT-P/LA-97, filed on
    August 29, 1997. The C-band refers to the 3700-4200/5925-6425 MHz
    frequency bands. The Ku-band refers to both the "conventional"
    11.7-12.2 GHz/14.0-14.5 GHz frequency bands, and the \"extended\"
    13.75-14.0 GHz and 10.95-11.2 GHz bands.

[^2]: ^?^ PanAmSat Amendment to Application, File No.
    SAT-AMD-19990615-00067, filed on June 15, 1999.

[^3]: ^?^ PanAmSat states that the C-band Galaxy VI satellite has been
    operating at 99° W.L. on an interim basis pursuant to a grant of
    special temporary authority. *See PanAmSat Corp.,* DA-98-969
    (released May 20, 1998). Once Galaxy XI commences operation at 91°
    W.L., PanAmSat states that Galaxy VI will be relocated to another
    orbit location assigned to PanAmSat based on the requirements of
    PanAmSat\'s customers at that time. *See* PanAmSat Amendment to
    Application, p. 2, note 2.

[^4]: ^?^ *See Amendment to the Commission\'s Regulatory Policies
    Governing Domestic Fixed-*

    > *Satellites and Separate International Satellite Systems,* Report
    > and Order, 11 FCC Rcd 2429 (1996)(\"DISCO I\"). DISCO I removed
    > the distinctions between domestic fixed-satellites and
    > international separate system satellites. Therefore, international
    > coverage, including South American coverage, by a domestic
    > fixed-satellite licensee is now routinely available, subject to
    > appropriate international coordination, in accordance with the ITU
    > Radio Regulations. *Id.*, 11 FCC Rcd at 2430-2434. In particular,
    > coordination with domestic and foreign-licensed systems is
    > required, including the requirement that U.S.-licensed systems
    > coordinate with domestic systems that may want to serve
    > international markets, such as South America.

[^5]: ^?^ The Commission granted PanAmSat special temporary authority to
    launch Galaxy XI and conduct in-orbit testing at 78.5° W.L. *See*
    Letter from Thomas S. Tycz, Chief, Satellite and Radiocommunication
    Division to Joseph A. Godles, Attorney for PanAmSat (December 21,
    1999).

[^6]: ^?^ See Licensing Space Stations in the Domestic Fixed-Satellite
    Service, 58 R.R.2d (P&F) 1267, 1272-3 (1985) (*1985 Orbit Assignment
    Order)*.

[^7]: ^?^ See Letter from Joseph A. Godles, Esq., Attorney for PanAmSat,
    to FCC Secretary Magalie Salas (August 12, 1999). On September 8,
    1999, PanAmSat provided updated cost information. *See* Letter from
    Joseph A. Godles, Esq., Attorney for PanAmSat, to FCC Secretary
    Magalie Salas (September 8, 1999).

[^8]: ^?^ An applicant relying on internal financing must submit a
    balance sheet documenting current assets and operating income
    sufficient to cover its costs. Current assets \-- which include
    cash, inventory, and accounts receivable \-- provide a general
    measure of a company\'s ability to raise funds on the basis of its
    on-going operations. *See* 47 C.F.R. § 25.114(c)(13); *1985 Orbit
    Assignment Order* at 1272.

[^9]: ^?^ *AT&T Corp.,*11 FCC Rcd. 15038 (1996). *See also Hughes
    Communications Galaxy, Inc.,* 3 FCC Rcd. 6989 (1988).

[^10]: ^?^ Harris and DMC are major manufacturers of terrestrial fixed
    point-to-point microwave radio service equipment.

[^11]: ^?^ Harris and DMC believe that satellite and terrestrial sharing
    studies are needed because the International Telecommunication Union
    (\"ITU\") Radio Regulations, that include coordination criteria for
    earth stations and terrestrial stations that are also contained in
    Section 25.251(b) of the Commission\'s Rules, 47 C.F.R. § 25.251(b),
    are being changed. We see no connection between prospective changes
    in the ITU Radio Regulations for earth station coordination with
    terrestrial stations and our consideration of PanAmSat's application
    to launch and operate a replacement satellite.

[^12]: ^?^ *See* 47 C.F.R. § 25.208(b). Allocation of a given frequency
    band for a particular service on a primary basis entitles operators
    to protection against harmful interference from stations of
    \"secondary\" services. Further, secondary services cannot claim
    protection from harmful interference caused by stations of a primary
    service. *See* 47 C.F.R. §§ 2.104(d) and 2.105(c).

[^13]: ^?^ Services allocated to particular frequency bands on
    \"co-primary\" basis have equal rights to operate in those
    frequencies.

[^14]: ^?^ In ITU Region 2, which includes the United States, the
    11.7-12.1 GHz frequency band is allocated to FSS on a primary basis.
    Footnote 837 to the Table of Frequency Allocations specifies that in
    Canada, Mexico and the United States use of the 11.7-12.1 GHz
    frequency band for FS is on a secondary basis. 47 C.F.R. § 2.106.

[^15]:
    > Use of the 10.7-11.7 GHz frequency band by the FSS in the United
    > States is subject to certain restrictions. Specifically,
    > non-Government footnote NG104 to the U.S. Table of Frequency
    > Allocations states that the use of the bands 10.7-11.7 GHz in the
    > fixed-satellite service is limited to international systems,
    > *i.e*. \"other than domestic systems.\" The Commission interpreted
    > this language to mean that U.S.-licensed systems may use the
    > 10.7-11.7 GHz band to provide international service only. *See*
    > PanAmSat Licensee Corp., DA 99-948 (released May 18, 1999).

[^16]: ^?^ We note that PanAmSat\'s application complies with Section
    25.114 of the Commission\'s rules, which lists the information that
    must accompany space station applications.

[^17]: ^?^ PanAmSat also argues that Harris and DMC\'s comments are
    misplaced because they address frequencies listed in the
    Commission\'s initial Public Notice (Report No. SPB-11) and those
    frequencies were inadvertently omitted and added in an erratum to
    that public notice. According to PanAmSat, only those frequencies
    that were inadvertently omitted (10.95-11.2 GHz) should be the
    subject of its comments. Given the nature of Harris and DMC\'s
    comments, and the need to clarify the rights of FSS and fixed
    service operators in the conventional and extended Ku-bands, we
    believe the public interest is best served in this instance by
    addressing all of issues raised by Harris and DMC. *See* Public
    Notice Report No. SPB-125 (May 20, 1998).

[^18]: ^?^ Footnote S5.503A further states that: \"\...when planning
    earth stations in the fixed-satellite service to be brought into
    service between 1 January 2000 and 1 January 2001, in order to
    accommodate the needs of spaceborne precipitation radars operating
    in the band 13.793-13.805 GHz, advantage should be taken of the
    consultation process and the information given in Recommendation
    ITU-R SA.1071.\"

[^19]: ^?^ In particular, footnote S5.502 to the international Radio
    Regulations places certain restrictions on the minimum equivalent
    isotropically radiated power (e.i.r.p.) and minimum antenna size for
    earth stations operating in this band. Footnote S5.503 places a
    limit on FSS earth station e.i.r.p. spectral density in the
    13.772-13.778 GHz band until those geostationary space stations in
    the space research service for which advance publication information
    was received by the ITU prior to 31 January 1992 cease to operate in
    this band.

[^20]: ^?^ 47 C.F.R. § 2.106 footnote US337 specifically states the
    following: \"In the band 13.75-13.80 GHz, earth stations in the
    fixed-satellite service shall be coordinated on a case-by-case basis
    through the frequency assignment subcommittee in order to minimize
    harmful interference to the Tracking and Data Relay Satellite
    System\'s forward space-to-space link (TDRSS forward link-to-LEO)\".

[^21]: ^?^ *See* letter from William Hatch, Acting Associate
    Administrator, Office of Spectrum Management, NTIA, to Roderick
    Porter, Acting Chief, International Bureau, FCC (May 11, 1999).

[^22]: ^?^ *See* DISCO I, 11 FCC Rcd at 2430-2432.

[^23]: ^?^ *Id* at 2440.

[^24]:
    > On February 24, 2000, PanAmSat Corporation filed a request for
    > special temporary authority, for up to 180 days, to relocate
    > Galaxy XI to 99° W.L., conduct KU-band in-orbit testing and
    > commence operation of the satellite. This Order and Authorization
    > renders PanAmSat\'s February 24, 2000 request moot.