Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matters of )

)

EchoStar Satellite LLC ) File Nos. SAT-STA-20050321-00068

) Call Sign: S2621

Application for Special Temporary Authority )

to Conduct Telemetry, Tracking, and Command )

Operations during the Relocation of EchoStar 4 )

To the 77º W.L. Orbital Location; )

)

EchoStar Satellite LLC ) File Nos. SAT-STA-20060126-00010

) SAT-STA-20060303-00020

Special Temporary Authority to Conduct Tracking, )
SAT-STA-20060331-00037

Telemetry, and Command Necessary to Maintain )

the EchoStar 4 satellite at the 77º W.L. Orbital Location )

)

EchoStar Satellite LLC ) File Nos. SES-LFS-20050701-00852

) SES-AMD-20051118-01603

Application for Blanket Authorization Of 1,000,000 ) Call Sign: E050196

Receive-Only Earth Stations to Provide DBS Service )

in the U.S. Using the Mexican-Authorized Satellite )

EchoStar 4 at 77° W.L. )

**ORDER AND AUTHORIZATION**

**Adopted: April 18, 2006 Released: April 18, 2006**

By the Chief, Satellite Division, International Bureau:

# INTRODUCTION

1.  In this Order, we grant in part the request for special temporary
    authority filed by EchoStar Satellite LLC (EchoStar) insofar as it
    seeks authority to transfer control of EchoStar 4 to QuetzSat, S. de
    R.L. de C.V. (QuetzSat) in connection with the operation of the
    satellite at the 77º W.L. orbital location.[^1] QuetzSat holds a
    concession from Mexico to operate a satellite at the 77º W.L.
    orbital location, and would control the satellite pursuant to that
    concession.[^2] By this action, we support cooperation between U.S.
    and Mexican satellite operators in meeting capacity needs. We also
    grant an application for blanket authorization of 1,000,000
    receive-only earth stations that will allow EchoStar to provide DBS
    service in the U.S. using the Mexican-authorized satellite EchoStar
    4 at 77° W.L.

# BACKGROUND

## The Transaction Between EchoStar and SES

2.  Under an agreement between EchoStar and SES GLOBAL Latin America,
    S.A. and SES GLOBAL, S.A. (collectively SES), EchoStar has agreed to
    move the EchoStar 4 satellite to the 77° W.L. orbital location,
    subject to necessary governmental approvals, pending the launch and
    placement of a new satellite (QuetzSat 1) at the 77° W.L. orbital
    location. The agreement provides that the service term for EchoStar
    4 at the 77° W.L. orbital location will run from the date that
    EchoStar 4 begins service at the 77° W.L. orbital location (the
    \"in-service\" date) until the earliest of: (1) the End-of-Life of
    EchoStar 4; (2) the date that EchoStar 4 fails; (3) the in-service
    date of QuetzSat 1 at the orbital location; (4) the date that
    EchoStar removes EchoStar 4 from the 77° W.L. location to replace
    capacity of its fleet lost due to catastrophic failure in its fleet;
    or, (5) upon certain events related to the future operations of
    QuetzSat 1.

3.  The agreement contemplates that, once EchoStar 4 is at the 77° W.L.
    orbital location, it will be under the direction and control of
    SES/QuetzSat. EchoStar will perform telemetry, tracking, and control
    functions, under the direction and control of SES/QuetzSat, for the
    entire Service Term at the 77° W.L. orbital location.

## Procedural History

4.  EchoStar filed its STA Request on March 21, 2005. On May 13, 2005,
    EchoStar also filed a request to modify its authorization for the
    157° W.L. orbital location, so that, despite the removal of the
    EchoStar 4 satellite from that location, EchoStar's license would
    not automatically lapse.[^3] On May 23, 2005, the comment period
    closed on the EchoStar STA request. The only comment filed was a
    letter from DIRECTV dated May 4, 2005, requesting additional
    technical information concerning the planned operations of EchoStar
    4 at the 77° W.L. orbital position. EchoStar filed a response
    providing additional information on May 10, 2005. On May 27, 2005,
    EchoStar filed a request to modify an earth station authorization to
    list the EchoStar 4 satellite at the 77° W.L. orbital location as an
    authorized point of communication. On June 3, 2005, the
    International Bureau (Bureau) denied EchoStar's STA Request and
    dismissed both the application to permit long-term cessation and the
    application for modification of earth station authorization.[^4] The
    Bureau concluded that moving EchoStar 4 to the 77° W.L. orbital
    location to meet an ITU deadline was not a sufficient public
    interest reason to grant the request.[^5]

5.  On June 8, 2005, EchoStar filed its petition for reconsideration of
    the Bureau's *Denial Order*. The petition for reconsideration noted
    that (1) the Secretaria de Comunicaciones y Transportes (SCT) would
    grant a license to QuetzSat Directo, an affiliate of SES GLOBAL
    Latin America S.A., to provide Direct-to-Home (DTH) service to the
    Mexican public from EchoStar 4, and (2) that EchoStar 4 could
    provide service to parts of the U.S. as well. On June 9, 2005,
    Mexico's SCT and Comision Federal de Telecomunicaciones (COFETEL)
    submitted a letter supporting EchoStar's request.[^6] EchoStar then
    filed a Supplement to the Petition for Reconsideration on June
    14, 2005. On June 14, 2005, EchoStar also filed an STA request to
    begin drifting EchoStar 4 from its licensed position at 157° W.L.
    toward the 61.35° W.L. orbital position.[^7] The Bureau granted this
    request on June 17, 2005. DIRECTV filed comments on the Petition for
    Reconsideration on June 20, 2005, and EchoStar replied to DIRECTV's
    comments on June 22, 2005. On July 1, 2005, EchoStar filed a second
    Supplement to the Petition for Reconsideration and filed an
    application for blanket receive-only earth station authorization, to
    receive signals from the EchoStar 4 satellite at the 77° W.L.
    orbital location to provide DTH service to U.S. subscribers.[^8]
    Also on July 1, 2005, EchoStar filed a request to alter the drift of
    EchoStar 4, and to place it at the 77° W.L. orbital location and
    operate it under a U.S. license pending action on the STA Request.
    This July 1, 2005 request was granted on July 6, 2005.[^9]

6.  On July 20, 2005, the Bureau reinstated EchoStar's request to
    transfer control of the operation of EchoStar 4 at the 77° W.L.
    orbital location to QuetzSat.[^10] The Bureau also reinstated
    EchoStar's application for modification of the EchoStar 4 space
    station license and the application for modification of an earth
    station authorization, concluding that the additional information
    provided in the petition for reconsideration warranted further
    consideration of the three applications.[^11] DIRECTV filed comments
    on August 26, 2005, to which EchoStar replied on September 6,
    2005.[^12] On September 21, 2005, EchoStar withdrew the modification
    application and relinquished the underlying space station
    authorization[^13] that allowed EchoStar 4 to operate at the 157°
    W.L. orbital location on channels 1, 7, and 11. On November 18,
    2005, EchoStar filed an amendment to its blanket earth station
    application to include an orbital debris mitigation plan.[^14] On
    December 1, 2005, Mexico's SCT issued a concession to QuetzSat
    Directo to provide DTH service to the Mexican public from EchoStar
    4.[^15]

# DISCUSSION

7.  We find that both EchoStar's STA request and request for a blanket
    earth station authorization are in the public interest. In order to
    grant a request for authority, the Commission must find that such a
    grant would serve the public interest.[^16] When EchoStar submitted
    the STA Request, EchoStar proposed to relocate the EchoStar 4
    satellite to 77º W.L. but did not propose to provide service to the
    United States. EchoStar 4 was also unable to provide DTH service to
    Mexico, since further authorization from the Mexican government
    would have been required before service to Mexico could be provided.
    Further information is now available to indicate that EchoStar 4
    will be able to provide service to both the United States and Mexico
    from the 77º W.L. orbital location.

8.  Issuing authorizations that will facilitate consumers receiving
    transmissions from EchoStar 4 at the 77º W.L. orbital location could
    serve the public interest by providing service to areas in the
    Southern U.S., including additional Spanish language programming to
    areas with significant Spanish-speaking populations.[^17] This
    authorization is consistent with the Commission's action in the
    *DIRECTV 5 Order*.[^18] Moving the DIRECTV 5 satellite to the 72.5º
    W.L. orbital location was determined to be in the public interest
    because of the benefits associated with increasing the number of
    U.S. markets able to receive local-into-local programming.[^19] We
    further note that in EchoStar 4's case, the U.S. and Mexico have a
    relevant bilateral agreement in place related to the provision of
    DTH services.[^20]

9.  *Exchange of Letters with SCT.* We have exchanged letters with SCT
    in order to ensure that there is a mutual understanding regarding
    the operation of the EchoStar 4 satellite. The understandings, and
    the factual background for these understandings, are provided as
    Annex A and are material considerations for the authorization
    contained in this Order. In general, the exchange of letters
    indicates that EchoStar 4 space station operations at the 77° W.L.
    orbital location will be pursuant to authorization of QuetzSat by
    SCT.

# CONCLUSION AND ORDERING CLAUSES

10. Based on the foregoing, we find that the granting of EchoStar's
    application will serve the public interest by providing additional
    competitive telecommunications services in both the U.S. and Mexico.

11. Accordingly, IT IS ORDERED, that EchoStar Satellite L.L.C.'s
    application, File No. SAT-STA-20050321-00068 (Call Sign S2621), IS
    GRANTED, and EchoStar Satellite L.L.C. is authorized to transfer
    control of EchoStar 4 to QuetzSat, S. de R.L. de C.V.

12. IT IS FURTHER ORDERED that the applications for Special Temporary
    Authority to operate Telemetry, Tracking, and Command necessary to
    maintain the EchoStar 4 satellite at the 77º W.L. orbital location,
    File Nos. SAT-STA-20060126-00010, SAT-STA-20060303-00020, and
    SAT-STA-20060331-00037, ARE GRANTED.

13. IT IS FURTHER ORDERED, that, pursuant to Section 25.137 (c) of the
    Commission's rules, the application of EchoStar Satellite L.L.C.
    File No. SES-LFS-20050701-00852 (Call Sign E050196), as amended by
    File No. SES-AMD-20051118-01603, IS GRANTED, and EchoStar Satellite
    L.L.C. IS AUTHORIZED to use 1,000,000 receive-only Earth stations to
    receive transmissions in the 12.2-12.7 GHz frequency band from the
    EchoStar 4 satellite at the 77° W.L. orbital location, which is
    authorized to QuetzSat, S. de R.L. de C.V. by SCT, consistent with
    the technical parameters specified in its application, and subject
    to the following condition:

    Operations shall be consistent with applicable coordination
    agreements; to the extent such agreements have not been reached,
    operations:

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a)  shall not exceed, under any conditions and taking into account all
    variations in satellite attitude, the parameters specified in
    Attachment A of the Letter, dated May 10, 2005, from Pantelis
    Michalopoulos to the Secretary, FCC,

b)  shall be on a non-harmful interference basis, i.e., operations of
    the EchoStar 4 satellite shall not cause interference to, and shall
    not claim protection from, interference caused to it by any other
    lawfully operating satellites.

```{=html}
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```
14. EchoStar Satellite LLC is afforded thirty days to decline this
    authorization as conditioned. Failure to respond within this period
    will constitute formal acceptance of the authorizations as
    conditioned.

15. This Order is issued pursuant to Section 0.261 of the Commission's
    rules, 47 C.F.R. §0.261 and is effective upon release.

> FEDERAL COMMUNICATIONS COMMISSION
>
> Robert G. Nelson
>
> Chief, Satellite Division
>
> International Bureau

**Appendix A**

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height="8.365972222222222in"}

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height="8.280555555555555in"}

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height="8.535416666666666in"}

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height="8.381944444444445in"}

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height="8.295833333333333in"}

**\[N.B.: This english translation is provided by the FCC as an aid to
english speakers in understanding the preceding letter from Mexico. This
translation has not been reviewed or approved by either the SCT or
COFETEL.\]**

\[seal:\] MEXICAN UNITED STATES FORM C.G.2

SECRETARIAT OF COMMUNICATION

& TRANSPORTATION

UNDERSECRETARY OF COMMUNICATIONS

TELECOMMUNICATIONS POLICY DIVISION

COORDINATION OF INTERNATIONAL MATTERS OF THE FEDERAL COMMUNICATIONS
COMMISSION

DIVISION OF INTERNATIONAL REGULATIONS OF AGENCIES

112\. **5718**

Mexico, D.F., November 21, 2005

**Ms. Cassandra C. Thomas**

Acting Chief, Satellite Division

International Bureau

Federal Communications Commission

445 12^th^ Street SW

Washington, D.C. 20554

U.S.A.

Re: Operations of EchoStar 4 Space Station

We make reference to your letter dated the 16^th^ of November of 2005 in
which you informally confirm the understanding between the Secretariat
of Communications and Transportation (the Secretariat) and the Federal
Communications Commission (the FCC) with respect to certain technical
matters related to the operation of the satellite known as EchoStar 4 in
orbital position 77º W.L. pursuant to the license granted the Mexican
company Quetzsat, S de R.L. de C.V. (Quetzsat), in accordance with the
agreement between the company Echo Star Satellite LLC (EchoStar) and the
companies SES GLOBAL Latin America, S.A. and SES GLOBAL, S.A. (jointly
SES).

In this regard, this Administration wishes to inform you that it concurs
with your appraisal regarding the definition of the term Service Period
and the conditions applicable to the different cases of termination
thereof; we also concur with respect to EchoStar\'s responsibility to
perform the duties of tracking, telemetry and control for the EchoStar 4
satellite, under the direction and control of SES/Quetzsat during the
entire Service Period in orbital position 77º W.L.

Similarly, we confirm that the Mexican company Quetzsat has a concession
that allows it to occupy orbital position 77º W.L. and to exploit the
associated frequency bands, granted by this Secretariat on the 2^nd^ of
February of 2005. Said concession allows Quetzsat to offer satellite
capability for the conduction of signals of the Broadcasting-Satellite
Service (BSS) and of the Fixed-Satellite Service (FSS) to any Mexican
company or person that has a public telecommunications network license
or a land station permit that authorizes the use of said satellite
capability for the BSS or the FSS.

1/3

**5718**

\[seal:\] MEXICAN UNITED STATES

SECRETARIAT OF COMMUNICATION

& TRANSPORTATION

Additionally, it is important to point out that Quetzsat\'s license
obligates it to offer satellite capability reserved for the State for
services of public safety and social coverage, specifically in order to
provide wide band services to rural zones throughout the country.

We also understand that initially EchoStar had requested authorization
from the FCC to transfer the EchoStar 4 satellite from orbital position
157º W.L. to position 77º W.L. where control of the satellite would go
to Quetzsat (the Complete Authorization) and in addition, it has
requested and obtained from the FCC, authorization to move said
satellite from position 157º W.L. to position 61.5º W.L. Similarly, we
understand that subsequently EchoStar requested and obtained FCC
authorization to modify the displacement of the EchoStar 4 satellite in
such a way that it would be located and operate from position 77º W.L.
(the Temporary Authorization). Similarly, we confirm that the Echo Star
4 satellite has been operating in position 77º W.L. since the 9^th^ of
July of 2005.

We also state our agreement with respect to the following technical
aspects that form part of the informal understanding between the SCT and
FCC:

1.  Once the FCC authorizes the Complete Authorization for the EchoStar
    4 satellite to be located in position 77º W.L., said satellite will
    be operating under the authority of the SCT in accordance with the
    applicable provisions of the ITU Radio Regulations (RR).

2.  Any operation outside its normal position of 77º W.L. shall be
    carried out subject to FCC authority.

3.  In the event of expiration or early termination of the license to
    occupy position 77º W.L. granted to Quetzsat, the SCT will give
    written notification to the FCC a minimum of 4 days prior to such
    action.

4.  In accordance with Recommendation S.1003-1 of the ITU, Quetzsat will
    be obligated through its Concession to maintain the capability to
    decommission the EchoStar 4 satellite, except in the event of a
    catastrophic failure of the satellite components to the minimum
    height of perigee specified in said recommendation.

Similarly, we agree with your statements regarding the fact that the
informal understanding contained in this letter does not constitute any
agreement between the Administration of the U.S.A. and the
Administration of Mexico with respect to any matter being processed
before the Radiocommunication Bureau of the ITU related to position 77º
W.L. under Appendices 30 and 30A of the RR. Additionally, we agree that
any procedure related to the obtainment of subsequent coordination
agreements between both administrations, should they be needed, related
to the operation of the EchoStar 4 satellite or any other satellite in
position 77º W.L. shall be treated as a separate matter between the FCC
and SCT.

We also understand that this exchange of letters does not constitute any
authorization by the FCC to EchoStar with respect to the relocation of
the EchoStar 4 satellite to position 77º W.L.

2/3

**5718**

\[seal:\] MEXICAN UNITED STATES

SECRETARIAT OF COMMUNICATION

& TRANSPORTATION

We confirm to the FCC that the application of our laws and regulations,
including the international obligations of our administration, in regard
to the occupation of position 77º W.L. is governed by the license that
has been granted to the company Quetzsat, conditions which are
applicable exclusively to Quetzsat and not to any other company, be it
Mexican or foreign. Therefore, in this case there are no provisions in
the license, in our laws or in our regulation that may be applied to
directly hinder or limit EchoStar from exercising its contractual rights
with SES.

With respect to notifications, consultations and correspondence between
our agencies, we take note of the contact information for the FCC and
confirm the corresponding contact information for the SCT.

Finally, allow me to express that the contents of your letter, together
with what has been stated above, correspond to our understanding of the
informal agreement between our respective agencies in relation to the
various technical aspects related to the operation of the EchoStar 4
satellite.

Sincerely,

\[Signature- illegible\] \[Signature- illegible\]

Ing. Leonel Lopez Celaya Ing. Fernando Carillo Valderrabano

General Director of General Director of International Telecommunications
Policy Regulation of Agencies

Secretariat of Communication & Transportation Federal Telecommunications
Commission

CC: Mr. Jorge Alvarez Hoth - Deputy Secretary of Communications SCT

Mr. Jorge Arredondo Martinez - President COFETEL

Mr. Ricardo Rios Ferrer - Legal Representative of Quetzsat, S. de R.L.
of C.V.

3/3

[^1]: File No. SAT-STA-20050321-00068 ("EchoStar STA Request"). The
    portion of the STA requesting authority to move EchoStar 4 to the
    77° W.L. orbital position is moot in light of a separate action,
    granted on July 6, 2005, under File No. SAT-STA-20050701-00142, as
    described in detail below.

[^2]: QuetzSat, a Mexican entity, obtained the concession from the
    Mexican Secretariat of Communications and Transportation (SCT) on
    February 2, 2005.

[^3]: *See* 47 C.F.R. § 25.161(c) (providing for the automatic
    termination of a station authorization upon "\[t\]he removal or
    modification of the facilities which renders the station not
    operational for more than 90 days, unless specific authority is
    requested").

[^4]: EchoStar Satellite LLC, *Memorandum Opinion and Order*, DA 05-1581
    (rel. June 3, 2005) (*Denial Order*).

[^5]: *Denial Order* at ¶ 6.

[^6]: Letter from Jorge Alvarez Hoth, Subsecretario de Comunicaciones,
    SCT and Jorge Aredondo Martinez, Presidente, COFETEL to Kevin J.
    Martin, Chairman, FCC (June 9, 2005).

[^7]: SAT-STA-20050614-00124.

[^8]: File No. SES-LFS-20050701-00852.

[^9]: SAT-STA-20050701-00142, for a 30-day period. This STA has since
    been renewed. *See* Stamp Grant, SAT-STA-20050803-00157 (granted
    August 5, 2005), Stamp Grant, SAT-STA-20050826-00167 (granted
    September 10, 2005), and Stamp Grant, SAT-STA-20051018-00202
    (granted October 27, 2005). *See also* SAT-STA-20051027-00207,
    SAT-STA-20051128-00255, and SAT-STA-20051222-00268 (requesting
    further renewals of this STA grant).

[^10]: EchoStar Satellite LLC, *Order on Reconsideration*, DA 05-2067
    (*Reconsideration Order*).

[^11]: *Id.*

[^12]: Comments of DIRECTV Enterprises, LLC, filed August 26, 2005;
    EchoStar Satellite L.L.C. Reply Comments, filed September 6, 2005.
    In its comments, DIRECTV states that even though EchoStar 4's
    location at 77° W.L. is within 4.5 degrees of DIRECTV's current
    satellite at 72.5° W.L., neither its satellite nor EchoStar 4 is
    capable of operating on all 32 DBS channels. DIRECTV states that as
    long as it can coordinate with EchoStar 4, there should be no
    interference concern in this particular circumstance even though
    DIRECTV generally opposes DBS satellites being separated by only 4.5
    degrees. EchoStar responds that it is optimistic that an informal
    agreement can be reached with DIRECTV concerning the operation of
    EchoStar 4 at 77° W.L.

[^13]: *See* File No. SAT-MOD-20031219-00372.

[^14]: File No. SES-AMD-20051118-01603.

[^15]: *See* Concesión par instalar, operar y explotar una red pública
    de telecomunicaciones, que otorga el Gobierno Federal por conducto
    de la Secretaria de Comunicaciones y Transportes, en lo sucesivo la
    Secretaria, a favor de QUETZSAT DIRECTO, S. DE R.L. DE C.V., al
    tenor de siguientes antecedentes y conditiones, dated December 1,
    2005 (QuetzSat Directo Concession).

[^16]: 47 U.S.C. § 309; 47 C.F.R. § 25.120.

[^17]: *See* EchoStar Supplement to Petition for Reconsideration, at 5.

[^18]: DIRECTV, Inc., *Order and Authorization*, 19 FCC Rcd 15529 (2004)
    (*DIRECTV 5 Order*).

[^19]: *Id.* at ¶ 8.

[^20]: Agreement between the Government of the United States of American
    and the Government of the United Mexican States Concerning the
    Transmission and Reception from Satellites for the Provision of
    Satellite Services to Users in the United States of America and the
    United Mexican States, April 28, 1996, Article I and Protocol
    Concerning the Transmission and Reception of Signals from Satellites
    for the Provision of Direct-to-Home Satellite Services in the United
    States of America and the United Mexican States, November 8, 1996.
    Generally, in evaluating requests by U.S. earth station operators to
    access a non-U.S.-licensed space station, the Commission adopted a
    public interest framework that considers the effect on competition
    in the United States and assesses reciprocal "market access" to the
    other nation by the U.S. *See* Amendment of the Commission\'s
    Regulatory Policies to Allow Non-U.S. Licensed Satellites Providing
    Domestic and International Service in the U.S., *Report and Order*,
    IB Docket No. 96-111, 12 FCC Rcd 24094, 24107-56 (¶¶ 30-145) (1997)
    (*DISCO II*). However, *DISCO II* contemplates that a bilateral
    agreement, as is present here, " . . . acts as a gateway to, and a
    guarantee of, increased competition in the two countries at both
    ends of the agreement." *DISCO II*, 12 FCC Rcd at 24157 (para. 143).
    Thus no further market access analysis is required.