# Before the

# Federal Communications Commission

# Washington, D.C. 20554

)

In the Matter of )

)

PANAMSAT CORPORATION ) File No. SAT-LOA-19990518-00054 )

Application for Authority to Launch and )

Operate a Replacement C/Ku Hybrid Fixed )

Satellite Service Space Station at 123º W.L. )

)

# ORDER AND AUTHORIZATION

**Adopted: January 14, 2000 Released: January 18, 2000**

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

## INTRODUCTION

1\. By this Order, we grant PanAmSat Corporation authority to launch and
operate the Galaxy X-R replacement satellite at the 123° W.L. orbit
location. Grant of this application will permit PanAmSat to provide
continuity of service to customers whose communications requirements are
currently satisfied by an in-orbit satellite that has reached the end of
its useful life and by a satellite providing service from the 123° W.L.
orbit location on an interim basis.

# BACKGROUND

2\. PanAmSat requests authority to launch and operate the Galaxy X-R
satellite at the 123° W.L orbit location previously assigned to the
Galaxy X satellite.[^1] On August 8, 1998, the Galaxy X satellite
suffered a launch failure which led to the filing of the instant
application. PanAmSat states that Galaxy X-R is technically identical to
the failed Galaxy X satellite and will operate in both C and Ku
frequency bands.[^2] PanAmSat currently operates the Ku-band SBS-5 and
C-band Galaxy IX satellites at the 123° W.L orbit location.[^3] Galaxy
X-R will replace the SBS-5 satellite that has reached the end of its
useful life, and the Galaxy IX satellite that will assume its regularly
assigned orbital location at 127° W.L. Galaxy X-R will continue
providing video, audio and data services currently offered by SBS-5 and
Galaxy IX to satellite users in North, South and Central America, with
increased service to Mexico and southern Canada. Galaxy X-R is currently
scheduled for launch on January 24, 2000.

**III. DISCUSSION**

3\. We find that PanAmSat is legally, financially, technically and
otherwise qualified to launch and operate the Galaxy X-R satellite and
that a grant of its application will serve the public interest.[^4]
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 X-R. 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 estimated cost of \$200
million to construct, launch, and operate Galaxy X-R for one year.[^5]
Further, we find that Galaxy X-R complies with all Commission technical
requirements.

4\. We also find that grant of PanAmSat's application will serve the
public interest. Galaxy X-R will replace the failed Galaxy X satellite
which was scheduled to replace the SBS-5 satellite that has reached the
end of its design life and the Galaxy IX satellite that will be
relocated to 127° W.L.[^6] Replacement will ensure continuity of service
to PanAmSat's C- and Ku-band customers currently accessing the SBS-5 and
Galaxy IX satellites, and will permit PanAmSat to further implement its
system plan by freeing the Galaxy IX satellite to assume its regularly
assigned 127° W.L. orbital location.[^7]

**IV. CONCLUSION AND ORDERING CLAUSES**

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level75. As set forth above, PanAmSat possesses the requisite
legal, financial, and technical qualifications to construct, launch and
operate the Galaxy X-R 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
X-R will replace.

6\. Accordingly, IT IS ORDERED that PanAmSat\'s application, File No.
SAT-LOA-19990518-00054 IS GRANTED and PanAmSat is authorized to launch
and operate its Galaxy X-R satellite at 123° W.L. in accordance with
terms, conditions, and technical specifications set forth in its
application.[^8]

7\. 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).

8\. 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.

9.  IT IS FURTHER ORDERED that the license term for the Galaxy X-R

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.

10\. IT IS FURTHER ORDERED that PanAmSat shall relinquish any right to
the continued operation of SBS-5 at the time it begins commercial
operations of Galaxy X-R. PanAmSat shall inform the Commission when
commercial operation of Galaxy X-R has begun.

11\. 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.

12\. 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
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]{.underline} 47 C.F.R. § 1.4(b)(2)).

FEDERAL COMMUNICATIONS COMMISSION

Thomas S. Tycz

Chief, Satellite and Radiocommunication Division

[^1]: ^?^ See Hughes Communications Galaxy, Inc, 11 FCC Rcd. 16425
    (1996).

[^2]: ^?^ The C-band refers to the 3700-4200/5925-6425 MHz frequency
    bands. The Ku-band refers to the 11.7-12.2 GHz/14.0-14.5 GHz
    frequency bands.

[^3]: ^?^ The Galaxy IX satellite was assigned the 127° W.L. orbital
    location, but was allowed to provide C-band services from the 123°
    W.L. orbital location on an interim basis pending the successful
    launch of the Galaxy X satellite. See note 1, supra. Upon the
    successful launch and operation of the Galaxy X satellite, Galaxy IX
    was to assume its regularly assigned orbital location at 127° W.L.
    With the Galaxy X launch failure, Galaxy IX will assume its
    regularly assigned orbital location upon the successful launch and
    operation of the Galaxy X-R satellite.

[^4]: ^?^ See Licensing Space Stations in the Domestic Fixed-Satellite
    Service, 58 R.R.2d (P&F) 1267, 1272-3 (1985) (1985 Orbit Assignment
    Order).

[^5]: ^?^ 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.

[^6]: ^?^ The Commission will generally authorize replacement satellites
    at the same location as the satellites they are replacing to ensure
    continuity of service. See AT&T Corp.,11 FCC Rcd. 15038 (1996). See
    also Hughes Communications Galaxy, Inc., 3 FCC Rcd. 6989 (1988).

[^7]:

[^8]: ^?^ On January 14, 2000, we granted PanAmSat's request for Special
    Temporary Authority (SAT-STA-19991215-00123) to conduct in-orbit
    testing of the Galaxy X-R satellite at the 127° W.L. orbit location.
    *See* letter from Thomas S. Tycz, Chief, Satellite and
    Radiocommunication Division to Joseph A. Godles, Esq., Attorney for
    PanAmSat. (January 14, 2000).