**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | * | File No.                     |
|                                  | * | SES-LIC-19990217-00241       |
| National Systems & Research Co.  | ) |                              |
|                                  | * |                              |
| For Blanket Authorization to     | * |                              |
| operate up to                    |   |                              |
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| 40,000 mobile satellite earth    | * |                              |
| terminals (E990083)              | ) |                              |
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| though Canadian-licensed         | * |                              |
| satellite MSAT-1 at              |   |                              |
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| 106.5 degrees W.L. in frequency  | * |                              |
| bands 1530-1559 MHz (receive)    | ) |                              |
| and 1631.5 -- 1660.5 MHz         | * |                              |
| (transmit) throughout the        | * |                              |
| Continental United States,       |   |                              |
| United States Territories,       | * |                              |
| Alaska, and Hawaii               | * |                              |
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+----------------------------------+---+------------------------------+

**ORDER AND AUTHORIZATION**

**Adopted: June 27, 2002 Released: June 28, 2002**

By the Deputy Chief, Satellite Division:

**I.** **Introduction**

1.  By this Order and Authorization, we grant National Systems &
    Research Co. (NSR) blanket authority, subject to certain conditions,
    to operate up to 40,000 mobile earth terminals (METs) to provide
    mobile satellite service (MSS) in the United States via a
    Canadian-licensed satellite operating in portions of the L-band
    spectrum.[^1] Grant of this application will facilitate increased
    competition in the MSS market, providing U.S. consumers and users,
    including federal and state governments and agencies, businesses and
    individual consumers with the benefits of competition, such as lower
    prices, innovation, and additional service options.

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II. **Background**

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2.  On February 17, 1999, NSR, a U.S. corporation, filed an application
    requesting blanket authority to operate up to 40,000 full-duplex[^2]
    METs throughout the United States to communicate with the
    Canadian-licensed MSAT-1 satellite at 106.5° W.L.. MSAT-1 operates
    in frequency bands 1626.5-1660.5 MHz (transmit) and 1525-1559 MHz
    (receive). The METs will be used to provide two satellite services,
    Mobile Data Service (MDS) and Track and Manage Service (TAMS), in
    the international coordinated frequency ranges of 1530-1559 MHz and
    1631.5-1660.5 MHz. NSR proposes to provide these services on a
    non-common carrier basis. According to NSR, a mobile terminal used
    for MDS consists of an antenna, radio transceiver and one or more
    user interface devices such as mobile telephone handsets, facsimile
    equipment, or data terminal devices. The MDS mobile terminals will
    be used to provide packet data services to land vehicles, maritime
    and aeronautical vessels, and temporary fixed stations. A mobile
    terminal used for TAMS consists of an integrated antenna and radio
    transceiver unit to which sensors are attached to provide the
    tracking or asset management information. The TAMS mobile terminals
    will be used to provide tracking and asset management data services
    to land vehicles and maritime and aeronautical vessels. [^3]
    Motient[^4] and Norcom Networks Corporation (Norcom) filed petitions
    to deny NSR's application. Comments generally supporting these
    petitions were filed by Space System License, Inc. and Iridium LLC
    (collectively Motorola) and Globalstar, L.P. (Globalstar),
    respectively.

**III. Discussion**

3.  In 1997, the United States signed the World Trade Organization (WTO)
    Agreement on Basic Telecommunication Services.[^5] In the WTO
    Agreement, the United States committed to open its satellite market
    to foreign satellite systems licensed by WTO-member countries to
    provide fixed and mobile satellite services (excluding
    Direct-to-Home Service, Direct Broadcast Satellite Service, and
    Digital Audio Radio Service). The Commission thereafter adopted the
    *DISCO II Order*, implementing a framework to examine requests by
    non-U.S. licensed satellite systems licensed by other WTO-members to
    serve the U.S. market.[^6] In making a public interest
    determination, the Commission stated in *DISCO II* that it would
    take into account factors such as the effect of the pending
    application on competition in the United States, spectrum
    availability, eligibility requirements, technical requirements, and
    national security, law enforcement, foreign policy and trade
    issues.[^7]

4.  [Competition Issues]{.underline}: In *SatCom/TMI*, the Commission
    evaluated the effect foreign entry by the Canadian licensed MSAT-1
    satellite will have on competition in the U.S. satellite market.[^8]
    In that decision, the Commission found that grant of the SatCom/TMI
    mobile earth station applications to use the Canadian licensed
    MSAT-1 satellite to provide service in the U.S. would pose no
    competitive harm or very high risk to competition in the U.S.
    satellite market.[^9] The record in this proceeding does not present
    any reason to deviate from this previous finding.

5.  [Other Public Interest Factors]{.underline}: Each of the opposing
    parties contends that NSR has not demonstrated that its operations
    will be consistent with the public interest factors in *DISCO II,*
    including spectrum availability, technical requirements, and issues
    related to law enforcement and national security.

6.  Motient asserts that grant of the application would prevent Motient,
    the sole U.S. MSS L-band space station licensee, from gaining access
    to sufficient spectrum to operate its MSS system to serve the United
    States, and that NSR will unfairly benefit from enhanced pricing
    flexibility due to subsidies the Canadian government provides to
    TMI.[^10] Norcom agrees with Motient that grant of NSR's proposal
    would effectively deprive Motient from gaining the spectrum it
    needs.[^11] Norcom also asserts that TMI rather than NSR will
    control the proposed METs, and thus, effect compliance with all
    Communication for Law Enforcement Act (CALEA) and E911
    requirements.[^12] Hence, Norcom submits that TMI will be solely
    responsible for satisfying these regulatory requirements.[^13]
    Norcom further contends, as do Motorola and Globalstar, that NSR's
    application should be denied because it violates the Commission's
    so-called "freeze" on accepting applications for spectrum
    coordinated for the lower L-band.[^14]

7.  We note that identical arguments made by the opposing parties
    concerning (1) the Commission's L-band spectrum management
    policy, (2) issues relating to alleged enhanced pricing flexibility
    due to subsidization of TMI by the Canadian government, and (3)
    issues related to TMI exercising *de facto* control of earth station
    facilities have been raised and addressed fully in other L-band
    blanket authorization orders. [^15] Generally, we find no reason to
    deviate from findings reached in those decisions. In addition, the
    Commission separately addressed the so-called "lower L-band freeze"
    in the *Lower L-band Report and Order*.[^16] In view of the
    Commission's action, issues related to the so-called "freeze" are
    moot. With regard to emergency communications, there is no
    requirement that MSS operators provide E911 services.[^17]
    Nevertheless, we strongly encourage MSS providers to begin taking
    steps to provide routing for emergency communications to the
    appropriate public safety answering points. With regard to law
    enforcement and national security requirements, these issues have
    been addressed through agreements with Executive Branch national
    security and law enforcement agencies noted in the *MSV Assignment
    Order.* Norcom has not raised any concerns that would cause us to
    deviate from that decision.

8.  [Technical Requirements]{.underline}: In conformance with U.S.
    spectrum and use regulations regarding Aeronautical Mobile Satellite
    (Route) Service (AMS(R)S)[^18] in the upper L-band, MSS operators
    must comply with Footnote US 308 to the U.S. Table of Frequency
    Allocation and a provision in the ITU's Radio Regulations regarding
    priority and preemptive access for AMS(R)S operation in a portion of
    this band (ITU Radio Regulation §5.357A).[^19] Opposing parties
    claim that NSR does not meet these technical requirements. We
    disagree. We find that consistent with these requirements, NSR's
    operation in the bands 1545-1558.5 and 1646-1660 MHz is on a
    secondary basis to the U.S. AMS(R)S requirements of other
    U.S.-authorized MSS providers operating in these bands. We will
    impose conditions to this authorization to ensure conformance with
    U.S. spectrum and use requirements regarding priority and preemptive
    access for (AMS(R)S) operating in a portion of the upper L-band. In
    addition, the level of out-of-band and spurious emissions from NSR's
    METs must be consistent with the Commission's recently adopted
    out-of-band emission limits specified in Section 25.216 of the
    Commission's Rules, 47 C.F.R. § 25.216.[^20] We will also impose
    conditions to ensure that these requirements are met These
    conditions should address Motorola's concerns regarding out-of-band
    emissions from the NSR terminals to Motorola's MSS system operating
    on nearby frequencies.[^21] We also note that the National
    Telecommunications Information Administration (NTIA) concurs in
    authorizing the operation of NSR's proposed METs, subject to the
    conditions specified in this Order and Authorization.[^22]

**IV. Conclusion**

9.  NSR has demonstrated that its operations will be consistent with the
    Commission's policies permitting service in the United States over
    space stations licensed by foreign administrations. Therefore, we
    find that NSR is qualified to hold the blanket earth station
    authorizations requested. Consequently, we grant NSR's application,
    subject to the conditions set forth below, authorizing NSR to
    provide MSS service in the United States over the MSAT-1 satellite
    using spectrum coordinated by Canada.

**V. Ordering Clauses**

10. Accordingly, IT IS ORDERED that Application File
    No.SES-LIC-19990217-00241 IS GRANTED and National Systems & Research
    Co. IS AUTHORIZED to operate up to 40,000 mobile earth terminals
    (METs) through the Canadian licensed MSAT-1 space station in the
    1530-1559 and 1631.5-1660.5 MHz band to the extent indicated herein,
    in accordance with the technical specifications set forth in its
    application and its Radio Station Authorization, and consistent with
    the Commission's rules, subject to the conditions set forth below.

11. IT IS FURTHER ORDERED that National Systems & Research Co.'s MET
    operations shall be limited to the portions of the 1525-1559 and
    1626.5-1660.5 MHz band coordination for the satellite being accessed
    in the most recent annual L-band operator-to-operator agreement.

12. IT IS FURTHER ORDERED that in the absence of a continuing annual
    operator-to-operator coordination agreement, National Systems &
    Research Co.'s operation in the 1525-1530 MHz, 1530-1544 MHz,
    1626.5-1645.5 MHz frequency bands (lower L-band) and the 1545-1559
    MHz and 1646.5-1660.5 MHz (upper L-band) frequency bands will be on
    a non-interference basis until a future operator-to-operator
    agreement is concluded. National Systems & Research Co. shall not
    cause harmful interference to any other lawfully operating satellite
    or radio facility and shall cease operations upon written
    notification of such interference. Furthermore, National Systems &
    Research Co. must notify all other operators in these frequency
    bands that it will be operating on a non-interference basis.
    National Systems & Research Co. must also notify its customers in
    the United States that its operations are on a non-harmful
    interference basis

13. IT IS FURTHER ORDERED that the full duplex METs operating in the
    1525-1530 MHz, 1530-1544 MHz and 1626.5-1645.5 MHz bands shall have
    the following minimum set of capabilities to ensure compliance with
    Footnote US 5.353A and the priority and real-time preemption
    requirements imposed by US Footnote 315 to Section 2.106 of the
    Commission's Rules, 47 C.F.R. § 2.106 and ITU Radio Regulation
    5.357.

> a\. All MET transmissions shall have a priority assigned to them that
> preserves the priority and preemptive access given to maritime
> distress and safety communications sharing the band;
>
> b\. Each MET with a requirement to handle maritime distress and safety
> data communications shall be capable of either (1) recognizing message
> and call priority identification when transmitted from its associated
> Land Earth Station (LES) or (2) accepting message and call priority
> identification embedded in the message or call when transmitted from
> its associated LES and passing the identification to shipboard data
> message processing equipment;
>
> c\. Each MET shall be assigned access to a unique technical
> identification number that will be transmitted upon any attempt to
> gain access to a system;
>
> d\. After a MET has gained access to a system the mobile terminal
> shall be under the control of a LES and shall obtain all channel
> assignments from it;
>
> e\. All METs that do not continuously monitor a separate signaling
> channel or signaling within the communications channel shall monitor
> the signaling channel at the end of each transmission;
>
> f\. Each MET shall automatically inhibit its transmissions if it is
> not correctly receiving a separate signaling channel or signaling
> within the communications channel from its associated LES;
>
> g\. Each MET shall automatically inhibit its transmissions on any or
> all channels upon receiving a channel-shut-off command on a signaling
> or communications channel from its associated LES; and
>
> h\. Each MET with a requirement to handle maritime distress and safety
> communications shall have the capability within the station to
> automatically preempt lower precedence traffic.

14. IT IS FURTHER ORDERED that National Systems & Research Co. must
    operate its mobile earth terminals in a full-duplex mode and have
    the following minimum set of capabilities to ensure compliance with
    US Footnote 308 to Section 2.106 of the Commission's rules, 47
    C.F.R. § 2.106, and ITU Radio Regulations 5.357:

> a\. All MET transmissions shall have a priority assigned to them that
> preserves the priority and preemptive access given to aeronautical
> distress and safety-related communications sharing the band;
>
> b\. Each MET with a requirement to handle distress and safety-related
> communications shall be capable of recognizing message and call
> priority identification when transmitted from its associated LES;
>
> c\. Each MET shall be assigned access to a unique technical
> identification number that will be transmitted upon any attempt to
> gain access to a system;
>
> d\. After a MET has gained access to a system the mobile terminal
> shall be under control of a Land Earth Station and shall obtain all
> channel assignments from it;
>
> e\. All METs that do not continuously monitor a separate signaling
> channel shall have provisions for signaling within the communications
> channel;
>
> f\. Each MET shall automatically inhibit its transmissions if it is
> not correctly receiving a separate signaling channel or signaling
> within the communications channel from its associated Land Earth
> Station;
>
> g\. Each MET shall automatically inhibit its transmissions on any or
> all channels upon receiving a channel-shut-off command on a signaling
> or communications channel it is receiving from its associated Land
> Earth Station; and

h.  Each MET with a requirement to handle distress and safety-related
    communications shall have the capability within the station to
    automatically preempt lower precedence traffic

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15. IT IS FURTHER ORDERED that, in accordance with US Footnote 308, the
    operation of National Systems & Research Co.'s METs, in the bands
    1545-1558.5 and 1646.5-1660 MHz, is on a secondary basis to U.S.
    AMS(R)S requirements of other U.S.-authorized MSS providers
    operating in the 1545-1559 and 1646.5-1660 MHz bands.

16. IT IS FURTHER ORDERED that National Systems & Research Co. must
    comply with the out-of-band emission limits set forth in Section
    25.216 of the Commission's rules. *See Out-of-Band Emission Order,*
    FCC 02-34 (rel. May 14, 2002).

17. IT IS FURTHER ORDERED that this authorization does not permit
    National Systems & Research Co. to provide commercial mobile radio
    service (CMRS) to end users, either the public or such classes of
    users as to be effectively available to a substantial portion of the
    public, for profit and for interconnection with the public switched
    network. If National Systems & Research Co. wishes to provide CMRS,
    which is classified as a common carrier service, it must obtain
    authority under Section 214 of the Communications Act of 1934, as
    amended, 47 U.S.C. § 214, before providing such service.

18. IT IS FURTHER ORDERED that National Systems & Research Co. is not
    authorized to operate the 1544-1545 MHz and 1645.5-1646.5 MHz bands
    that are limited in the United States exclusively for distress and
    safety communications. *See* 47 C.F.R. Section 2.106nn. S5.356,
    S5.375.

19. IT IS FURTHER ORDERED that the Petitions to Deny of Motient
    Services, Inc. and Norcom Networks Corporation and the Comments of
    Space System Licensee, Inc. and Iridium LLC, and Globalstar, L.P.
    ARE DENIED.

20. IT IS FURTHER ORDERED that this license shall not vest in the
    licensee any right to operate Earth stations or use the assigned
    frequencies beyond the term thereof or in any manner other than
    authorized herein, and neither the licensee nor the rights granted
    thereunder shall be assigned or otherwise transferred in violation
    of the Communications Act.

21. IT IS FURTHER ORDERED that the license term for the METs that are
    authorized by this *Order and Authorization* is a period of 15
    years.

22. IT IS FURTHER ORDERED that National Systems & Research Co. be
    afforded thirty days to decline this *authorization*. Failure to
    respond within this period will constitute formal acceptance of the
    authorization.

> **FEDERAL COMMUNICATIONS COMMISION**

Cassandra C. Thomas

Deputy Chief, Satellite Division

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height="6.944444444444445e-4in"}

[^1]: The "L-band" is a general designation for frequencies from 1 to 2
    GHz. In this Order and Authorization, however, the term "L-band"
    denotes only the 1545-1559 MHz and 1646.5-1660.5 MHz frequency band
    ("upper L-band") and the 1525-1530 MHz, 1530-1544 MHz, and
    1626.5-1645.5 MHz frequency bands ("lower L-band"). The United
    States is the only country that distinguishes between the "upper"
    and "lower" L-band.

[^2]: A full-duplex MET can receive a data message while transmitting
    one. Conversely, a half-duplex cannot receive and transmit data
    messages simultaneously. It must finish transmitting before it can
    receive an incoming message.

[^3]: *See* NSR Application Exhibit 3.

[^4]: When the petition was filed, Motient was referred to as AMSC
    Subsidiary Corporation (AMSC). Motient has since entered into a
    joint venture with TMI Communications and Company, LP (TMI).

[^5]: The results of the WTO basic telecommunications services
    negotiations are incorporated into the General Agreement on Trade in
    Services (GATS) by the Fourth Protocol to the GATS (April 30, 1996),
    36 I.L.M. 336 (1997). These results, as well as the basic
    obligations contained in the GATS, are referred to herein as the
    "WTO Agreement."

[^6]: *See Amendment of the Commission's Regulatory Policies to Allow
    Non-U.S. Licensed Space Stations to Provide Domestic and
    International Service in the United States,* Report and Order, 12
    FCC Rcd 24094 (1997) (*DISCO II*).

[^7]: *Id.* at 24100.

[^8]: *See SatCom Systems, Inc.* 14 FCC Rcd 20798 (1999), *aff'd sub
    nom. AMSC V. FCC,* 216 F.3d 1154 (D.C. Cir. 2000) (*SatCom/TMI).*

[^9]: *Id.* at 20807.

[^10]: *See* Motient Petition to Deny at 1-4.

[^11]: *See* Norcom Petition to Deny at 5.

[^12]: *See* 47 U.S.C. § 1001 *et seq.; Revision of the Commission's
    Rules to Ensure Compatibility with Enhanced 911 Emergency Calling
    System,* Report and Order, 11 FCC Rcd 18676 (1996).

[^13]: *See* Norcom Petition to Deny at 6-7.

[^14]: *Id.* at 4; *see also* Motorola Comments at 3-4, and Globalstar
    Comments at 3.

[^15]: *See, e.g., Infosat Communications, Inc.,* 17 FCC Rcd 1610
    (2002), *SatCom/TMI,* 14 FCC Rcd 20789 (1999).

[^16]: *See In the Matter of Establishing Rules and Policies for the Use
    of Spectrum for Mobile Satellite Service in the Upper and Lower
    L-band,* Report and Order, 17 FCC Rcd 2704 (2002) (*Lower L-band
    Report and Order*).

[^17]: *See, e.g., SatCom/TMI,* 14 FCC Rcd at 20823.

[^18]: AMS(R)S is a mobile satellite service using mobile terminals
    on-board aircraft. This service can be use to support domestic and
    international air traffic, including air traffic control. The (R)
    indicates that the spectrum is used for aeronautical communications
    related to the safety and regularity of flights primarily along
    national and international civil air routes.

[^19]: Footnote US 308 of the U.S. Table of Frequency Allocations, 47
    C.F.R. § 2.106, states: "In the frequency bands 1549.5-1558.5 MHz
    and 1651-1660 MHz, the Aeronautical-Mobile-Satellite(R) requirements
    that cannot be accommodated in the 1545-1549.5 MHz, 1558-1559 MHz,
    1646.5-1651 MHz and 1660-1660.5 MHz bands shall have priority access
    with real-time capability for communications in the mobile satellite
    service. Systems not interoperable with the services shall operate
    on a secondary basis." 5.357A in the ITU's Radio Regulations has a
    similar priority and preemptive access requirement. *See also
    SatCom/TMI,* 14 FCC Rcd 20798 (1999).

[^20]: *See Amendment of Part 2 and 25 to Implement the Global Mobile
    Personal Communications by Satellite (GMPCS) Memorandum of
    Understanding and Arrangements; Petition of the National
    Telecommunications and Information Administration to Amend Part 25
    of the Commission's Rules to Establish Emissions Limits for Mobile
    and Portable Earth Stations Operating in the 1610-1660.5 MHz Band,*
    Report and Order and Further Notice of Proposed Rulemaking, FCC
    02-134 (rel. May 14, 2002) (*Out-of-Band Emissions Order).*

[^21]: *See* Motorola Comments at 5-6.

[^22]: *See **"***Summary of L-band Emission Information for
    Coordination with NTIA," dated May 18, 2001. *See also* Memorandum
    from James Vorhies, NTIA to Sylvia Lam, FCC, dated March 28, 2001.