Before the

**FEDERAL COMMUNICATIONS COMMISSION**

# Washington, D.C. 20554

)

)

In the Matter of )

)

Columbia Communications Corporation )

)

Authorization to Launch ) File No. SAT-LOA-20000407-00080

and Operate a Geostationary C-band )

Replacement Satellite in the )

Fixed-Satellite Service at 37.5° W.L. )

)

)

# MEMORANDUM OPINION AND ORDER

Adopted: November 13, 2001 Released: November 14, 2001

By the Chief, International Bureau:

**I. INTRODUCTION**

1 By this Order, we grant Columbia Communications Corporation (Columbia)
authority to launch and operate a satellite in the Fixed-Satellite
Service (FSS) in the C-band,[^1] to replace its Columbia 515 satellite
located at 37.7° W.L.[^2] By this action, we enable Columbia to provide
the certainty of service continuity to its C-band customers.

**II. BACKGROUND**

2 In 1991, the Commission authorized Columbia to offer international
C-band service in the Northern Hemisphere via leased capacity on the
National Aeronautics and Space Administration's (NASA's) TDRS-4
satellite located at 41° W.L., subject to coordination with
INTELSAT.[^3] As part of the coordination agreement it reached with
INTELSAT in December 1997, INTELSAT transferred its hybrid
C-band/Ku-band INTELSAT 515 satellite to Columbia. This satellite,
renamed Columbia 515, was to operate at 37.5° W.L.[^4] In September
1998, the Bureau granted Columbia\'s request to modify its license so
that it had authority to move Columbia 515 to 37.7° W.L., and to operate
it in the C-band.[^5] Also in 1998, Columbia ceased its operation of
TDRS-4 at 41° W.L. and transitioned its customers to Columbia 515.[^6]

3 Loral Space and Communications Ltd. (Loral) holds a license to operate
a Ku-band satellite at the 37.5° W.L. orbit location.[^7] In May 1998,
prior to the time Columbia filed this application for a replacement
satellite, Loral filed an application for authority to launch and
operate a hybrid C/Ku-band replacement satellite at 37.5° W.L. We
granted Loral authority to launch a Ku-band replacement satellite, but
denied its request for C-band authority because such authority would
conflict with Columbia\'s C-band authorization at the 37.7° W.L. orbit
location.[^8]

4 On April 7, 2000, Columbia filed an application for authority to
launch and operate a replacement satellite in the C-band at the 37.5°
W.L. orbit location.[^9] Columbia plans to provide voice, video, and
data services from the satellite.[^10] Its proposed spacecraft would
have 72 conventional C-band transponders with 36 MHz of useable
bandwidth each, and will cover North America, South America, Europe, and
Africa.[^11]

5 We placed Columbia\'s application on public notice on April 27, 2000.
Loral filed a petition to deny the application, Columbia filed an
opposition, and Loral filed a reply. Columbia filed subsequent *ex
parte* statements to update its application to reflect its merger with
GE Americom.[^12] For the reasons discussed below, we grant Columbia\'s
application.

**III. DISCUSSION**

**A. Procedural Issues**

6 Loral asserts that we cannot consider Columbia\'s replacement
application before we act on Loral\'s application for replacement
authority at 37.5° W.L.[^13] We have since considered Loral\'s
application, and denied its request for C-band authority at that
location.[^14] Therefore, this issue is now moot. We consider
Columbia\'s application on its merits below.

**B. Replacement Expectation**

7 The Commission has stated that, given the huge costs of building and
operating satellite space stations, there should be some assurance that
operators will be able to continue to serve their customers.[^15] The
Commission has therefore stated that, when the orbit location remains
available for a U.S. satellite with the technical characteristics of the
proposed replacement satellite, it will generally authorize the
replacement satellite at the same location.[^16] It has also acted on
applications for replacement satellites as they are filed, without
consolidating them into a processing group.[^17]

8 Loral claims, however, that, because Columbia was originally
authorized to lease C-band capacity on a NASA satellite on a temporary
basis, Columbia cannot have a reasonable expectation of
replacement.[^18] Columbia responds that neither the conditions included
in the original 1991 license nor the conditions in the subsequent
modifications of its license provide any basis for concluding that
Columbia does not have a reasonable expectation of replacement.[^19]

9 We conclude that Columbia\'s expectation of replacement is reasonable.
The Commission adopted its replacement satellite policy in part to help
ensure that satellite service customers can rely on continuity of a
service provider.[^20] Columbia has been providing C-band service to its
customers since we authorized it to do so in 1991. We conclude that
Loral\'s argument does not provide sufficient justification for obliging
Columbia\'s customers to find another satellite service provider or risk
a disruption of service.

10 Columbia requested authority to operate its satellite at 37.5° W.L.,
rather than the 37.7° W.L. orbit location where it is currently
authorized to operate.[^21] We conclude that we should authorize
Columbia to operate its replacement satellite at 37.5° W.L. for several
reasons. First, the 37.5° W.L. orbit location is consistent with orbit
spacings for other frequency bands. The Commission regularly assigns
satellites operating in different frequency bands to the same orbit
location.[^22] Second, Columbia will be able to continue to serve its
customers from 37.5° W.L. Last, the Bureau assigned Columbia 515 to
37.7° W.L. in 1998 only because Loral expressed concerns that a
co-located satellite was at risk of colliding with Loral\'s Ku-band
satellite operating at 37.5° W.L., and because Columbia agreed to
operate at 37.7° W.L.[^23] In its petition to deny Columbia\'s
application, Loral did not comment on Columbia\'s request to operate at
37.5° W.L. Given the large number of co-located in-orbit satellites
operating without incident over the last decade, we see no reason to
deny Columbia\'s request to operate its replacement satellite at 37.5°
W.L.

**C. Qualifications**

11 All applicants must demonstrate technical, legal, and financial
qualifications to hold a satellite license.[^24] The Commission\'s
financial qualification rules require applicants to demonstrate that
they have sufficient funds to cover construction, launch, and first-year
operating costs of the proposed satellite.[^25]

12 Columbia initially requested a waiver of the financial qualification
rules based in part on its then-pending merger with GE Americom.[^26]
This request has become moot, however. Columbia\'s merger with GE
Americom has been completed, and Columbia has provided a copy of GE
Americom\'s parent company\'s balance sheet, showing total assets of
\$405 billion and net earnings of \$10.7 billion in 1999.[^27] Columbia
estimates that the costs of constructing, launching, and operating its
replacement satellite for one year to be \$280 million.[^28] We find
that the information Columbia provides in its *September 25 Letter* is
sufficient to show that it is financially qualified to construct and
launch a satellite, and to operate it for one year.

**D. Milestone Schedule**

13 Columbia proposed beginning construction of its satellite one year
after authorization, completing construction four years after
authorization, and launching four months after completion of
construction.[^29] Loral claims that the Columbia 515 satellite is
expected to reach the end of its useful life in the 2001-2002 timeframe,
and that Columbia\'s proposed deployment schedule would result in at
least a three-year interruption of service.[^30] Loral argues that
Columbia\'s proposed satellite cannot be considered a replacement
satellite for Columbia 515 because it will not provide continuity of
service.[^31] Columbia explains that its proposed milestone schedule was
intended to reflect the typical milestone schedule adopted by the
Commission for other licensees, and does not preclude a shorter
construction period.[^32] Columbia also states that it has started
constructing its replacement satellite.[^33]

14 We agree with Loral that Columbia should be required to bring its
replacement satellite into service before its current satellite reaches
the end of its useful life, to ensure continuity of service to
Columbia\'s customers. We disagree, however, that Columbia\'s proposed
four-year milestone schedule warrants denial of Columbia\'s application.
Rather, we will adopt the milestone schedule Columbia proposes in its
application,[^34] but also condition Columbia\'s license on bringing its
replacement satellite into service before the end of the useful life of
the Columbia 515 satellite, in the event that the end of the useful life
of the Columbia 515 satellite occurs before the launch milestone
deadline we adopt here.

**IV. ORDERING CLAUSES**

15 We conclude that Columbia Communications Corporation is legally,
technically, financially, and otherwise qualified to construct, launch,
and operate a replacement C-band satellite at 37.5° W.L., and that
authorizing Columbia to construct, launch, and operate this replacement
C-band satellite at 37.5° W.L. will serve the public interest,
convenience, and necessity.

16 Accordingly, IT IS ORDERED that, pursuant to Section 309(a) of the
Communications Act, as amended, 47 U.S.C. § 309(a), the application
filed by Columbia Communications Corporation for authority to launch and
operate a satellite in the C-band at the 37.5° W.L. orbit location IS
GRANTED, and Columbia Communications Corporation IS AUTHORIZED to launch
and operate a replacement satellite in the Ku-band at the 37.5° W.L.
orbit location in accordance with the terms, conditions, and technical
specifications set forth in its application and this Order.

17 IT IS FURTHER ORDERED that Columbia Communications Corporation is
obliged to comply with the applicable laws, regulations, rules, and
licensing procedures in those countries it proposes to serve.

18 IT IS FURTHER ORDERED that, unless extended by the Commission for
good cause shown, this authorization shall become NULL AND VOID in the
event the space station is not constructed and launched by the following
dates:

[Commence Construction]{.underline} [Complete Construction]{.underline}
[Launch]{.underline}

November 2002 November 2005 February 2006

19 IT IS FURTHER ORDERED that, notwithstanding the milestone schedule
set forth above, this authorization is conditioned on Columbia
Communications Corporation bringing a space station into service at the
37.5° W.L. orbit location before the Columbia 515 satellite reaches the
end of its useful life, in the event that this end-of-useful life date
occurs before the launch deadline set forth above.

20 IT IS FURTHER ORDERED that the license term for the satellite is ten
years and will begin to run on the date the licensee certifies to the
Commission that the space station has been successfully placed in orbit
and operations fully conform to the terms and conditions of our
authorization.

21 IT IS FURTHER ORDERED that assignment of any orbital location is
subject to change by summary Order of the Commission on 30 days notice
and does not confer any permanent right to the use of the orbit or
spectrum.

22 IT IS FURTHER ORDERED that Columbia Communications Corporation is
afforded 30 days from the date of release of this Order to decline any
authorization granted in this Order as conditioned. Failure to respond
within this period will constitute formal acceptance of the
authorization as conditioned.

23 This 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
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, 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

Donald Abelson

Chief, International Bureau

[^1]: For purposes of this Order, \"C-band\" denotes the 3700-4200 MHz
    and 5925-6425 MHz frequency bands.

[^2]: On June 27, 2000, after Columbia filed its replacement satellite
    application, the International Bureau (Bureau) granted Columbia\'s
    application to merge with GE American Communications, Inc. (GE
    Americom). Columbia is now a wholly-owned subsidiary of GE Americom.
    GE American Communications, Inc., CCC Merger Sub, Inc., and Columbia
    Communications Corp., Application for Consent to Transfer of Space
    Station Licenses of Columbia Communications Corporation, *Order and
    Authorization*, 15 FCC Rcd 11590 (Int\'l Bur., 2000) (*GE
    Americom/Columbia Merger Order*). On October 2, 2001, the Bureau and
    the Wireless Telecommunications Bureau released a joint Order
    granting GE Americom\'s application to merge with SES Global S.A.
    Application of General Electric Capital Corporation, Transferors,
    and SES Global, S.A., Transferees, *Order and Authorization*, DA
    01-2100 (Int\'l Bur. and Wireless Bur., released Oct. 2, 2001).

[^3]: ^?^ Columbia Communications Corporation, Application for Authority
    to Use and Offer for Lease the C-band Transponders on the NASA TDRSS
    Satellites at 41° W.L. and 174° W.L. for the Provision of
    International Fixed-Satellite Services, *Memorandum Opinion, Order
    and Authorization*, 7 FCC Rcd 122, 122 (paras. 3-5) (1991)
    (*Columbia Authorization Order*). Columbia requested authority to
    operate this as a \"separate system,\" meaning international
    satellite systems separate from INTELSAT.

[^4]: For more on these coordination negotiations, *see* Columbia
    Communications Corporation, Application for Special Temporary
    Authority to Remove Conditions on Its Existing Authorization to
    Operate C-Band Transponder Capacity on the National Aeronautics and
    Space Administration ("NASA") Tracking and Data Relay Satellite
    System ("TDRSS") Space Station at 41° West Longitude, *Order and
    Authorization*, 11 FCC Rcd 13710, 13712 n.8 (Int'l Bur., 1996).

[^5]: Columbia Communications Corp., *Memorandum Opinion, Order, and
    Authorization*, 13 FCC Rcd 17772 (Int'l Bur., 1998) (*Columbia 1998
    Modification Order*). The Bureau assigned Columbia 515 to 37.7° W.L.
    after Loral expressed concerns that a co-located satellite was at
    risk of colliding with Loral\'s Ku-band satellite operating at 37.5°
    W.L. and Columbia agreed to operate at 37.7° W.L.

[^6]: ^?^ *Columbia 1998 Modification Order*, 13 FCC Rcd at 17773 (para.
    3).

[^7]: This license was originally granted to Loral\'s predecessor in
    interest, Orion Atlantic L.P. (Orion). Orion and Loral merged in
    1998. *See* Loral Space & Communication Ltd. and Orion Network
    Systems, Inc. International Private Satellite Partners, L.P. (d/b/a)
    Orion Atlantic, L.P., Application for the Transfer of Control of
    Various Space Station, Earth Station, and Section 214
    Authorizations, *Order and Authorizations*, 13 FCC Rcd 4592 (Int'l
    Bur., 1998). For consistency, we refer to this company as "Loral"
    throughout this Order. For more on Loral\'s authorization at the
    37.5° W.L. orbit location, *see* Orion Satellite Corporation,
    Request for Final Authority to Construct, Launch, and Operate an
    International Communications Satellite System, *Memorandum Opinion,
    Order, and Authorization*, 5 FCC Rcd 4937 (1990) (*Loral Technical
    Requirements Order*) (concluding that Loral had satisfied the
    Commission\'s technical requirements for satellite licensees, and
    directing Loral to demonstrate its financial qualifications); Orion
    Satellite Corporation, Request for Final Authority to Construct,
    Launch, and Operate an International Communications Satellite
    System, *Order*, 6 FCC Rcd 4201 (1991) (*Loral Authorization Order*)
    (concluding that Loral had adequately demonstrated its financial
    qualifications and authorizing it to operate a Ku-band satellite at
    37.5° W.L.). We granted Loral Ku-band replacement authority in June
    2001. Application of Loral Space & Communication Ltd., f/k/a Orion
    Atlantic, L.P., for Authority to Launch and Operate a Hybrid
    Ku-band/C-band Satellite System at the 37.5° W.L. Orbit Location,
    *Memorandum Opinion And Order*, 16 FCC Rcd 12490 (Int\'l Bur, 2001).

[^8]: Application of Loral Space & Communication Ltd., f/k/a Orion
    Atlantic, L.P., for Authority to Launch and Operate a Hybrid
    Ku-band/C-band Satellite System at the 37.5° W.L. Orbit Location,
    *Memorandum Opinion And Order*, 16 FCC Rcd 12490, 12493 (para. 5)
    (Int\'l. Bur., 2001) (*Loral Replacement Order*).

[^9]: Columbia Application at 5.

[^10]: ^?^ Columbia Application at 5. Columbia originally planned to
    operate in portions of the extended C-band outside of North America.
    Columbia Application, App. 1 at 33. Columbia later withdrew its
    request for extended C-band authority. Letter from Karis A.
    Hastings, Counsel for GE Americom, to Magalie Roman Salas,
    Secretary, FCC (dated Nov. 27, 2000) (*November 27 Letter*) at 3.

[^11]: ^?^ Columbia Application at 5. The conventional C-band is
    comprised of the 3700-4200 and 5925-6425 MHz frequency bands.

[^12]: Letter from Karis A. Hastings, Counsel for GE Americom, to
    Magalie Roman Salas, Secretary, FCC (dated Sept. 25, 2000)
    (*September 25 Letter*); *November 27 Letter*; *GE Americom/Columbia
    Merger Order*, 15 FCC Rcd 11590.

[^13]: Loral Petition at 5.

[^14]: *Loral Replacement Order* at para. 5.

[^15]: *See* Assignment of Orbital Locations to Space Stations in the
    Domestic Fixed-Satellite Service, *Memorandum Opinion and Order*, 3
    FCC Rcd 6972, 6976 n.31 (1988) (*1988 Orbit Assignment Order*); GE
    American Communications, Inc., *Order and Authorization*, 10 FCC Rcd
    13775, 13775-76 (para. 6) (Int\'l Bur. 1995) (*GE Americom
    Replacement Order*).

[^16]: *1988 Orbit Assignment Order*, 3 FCC Rcd at 6976 n.31; *GE
    Americom Replacement Order*, 10 FCC Rcd at 13775-76 (para. 6).

[^17]: *GE Americom Replacement Order*, 10 FCC Rcd at 13775-76 (para.
    6); Loral Spacecom Corp., *Order and Authorization*, 13 FCC Rcd
    16348, 16440 (para. 5) (Int\'l Bur., Sat. and Rad. Div., 1995).

[^18]: Loral Petition at 3-4.

[^19]: Columbia Opposition at 2-8.

[^20]: *1988 Orbit Assignment Order*, 3 FCC Rcd at 6976 n.31; *GE
    Americom Replacement Order*, 10 FCC Rcd at 13775-76 (para. 6).

[^21]: ^?^ Columbia Application at 5.

[^22]: ^?^ *See*, *e.g.*, *1988 Orbit Assignment Order*, 3 FCC Rcd at
    6975 (Table of Orbital Assignments in Appendix to the Order).

[^23]: ^?^ *Columbia 1998 Modification Order,* 13 FCC Rcd at 17776
    (para. 11).

[^24]: ^?^ 47 C.F.R. §§ 25.114, 25.140.

[^25]: ^?^ 47 C.F.R. § 25.140(c).

[^26]: Columbia Application at 8-10. *See also* Columbia Opposition at
    14-17.

[^27]: GE Annual Report, 1999, at 55, *attached to September 25 Letter*.

[^28]: ^?^ Columbia Application at 8.

[^29]: Columbia Application at 11.

[^30]: Loral Petition at 2, *citing Columbia 1998 Modification Order*,
    13 FCC Rcd at 17777-78 (paras. 15, 17).

[^31]: Loral Petition at 2-3; Loral Reply at 1-4.

[^32]: Columbia Opposition at 8-9.

[^33]: *November 27 Letter* at 3-4.

[^34]: Columbia Application at 11.