5924 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations

Step 1.C.—Adjustment for Inflation or

Deflation

(1) In making projections of future

expenses, expenses that are subject to

inflationary or deflationary pressures

are adjusted. Costs not subject to

inflation or deflation are not adjusted.

Annual cost inflation or deflation rates

will be projected to the succeeding

navigation season, reflecting the gradual

increase or decrease in costs throughout

the year. The inflation adjustment will

be based on the preceding year’s change

in the Consumer Price Index for the

North Central Region of the United

States.

* * * * *

Step 5: Determination of Target Rate of

Return on Investment

* * * * *

(2) The allowed Return on Investment

(ROI) is based on the preceding year’s

average annual rate of return for new

issues of high grade corporate securities.

* * * * *

Issued at Washington, D.C. on February 4,

1997.

Saint Lawrence Seaway Development

Corporation

Gail C. McDonald,

Administrator.

[FR Doc. 97–3176 Filed 2–7–97; 8:45 am]

BILLING CODE 4910–61–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 25

[IB Docket No. 95–117; FCC 96–425]

Satellite Application and Licensing

Procedures

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission has adopted

rules and policies to streamline

application and licensing requirements

for satellite space and earth stations

under the Commission’s rules regarding

satellite communications. Among other

things, the Commission waives the

construction permit requirement for

satellite space stations and modifies the

license term for temporary fixed earth

stations and the implementation period

for Very Small Aperture Terminal

(‘‘VSAT’’) earth stations. The Report and

Order amends minor modifications for

earth station and inclined orbit

operations of space stations, and

application and licensing forms.

EFFECTIVE DATE: The adopted rule

changes will become effective upon

approval by the Office of Management

and Budget of the modified information

collection requirements, but no sooner

than April 11, 1997. When approval is

received, the Federal Communications

Commission will publish a document

announcing the effective date.

FOR FURTHER INFORMATION CONTACT:

Tracey Weisler, International Bureau,

Satellite Policy Branch, (202) 418–0744;

Frank Peace, International Bureau,

Satellite Engineering Branch, (202) 418–

0730; Kathleen Campbell, International

Bureau, Satellite Policy Branch (202)

418–0753. For additional information

concerning the information collection

contained in this NPRM contact Dorothy

Conway at (202) 418–0217, or via the

Internet at dconway@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Report

and Order in IB Docket No. 95–117; FCC

96–425, adopted October 29, 1996 and

released December 16, 1996. The

complete text of this Report and Order

is available for inspection and copying

during normal business hours in the

FCC Reference Center (Room 239), 1919

M Street, N.W. Washington, D.C., and

also may be purchased from the

Commission’s copy contractor,

International Transcription Service,

(202) 857–3800, 2100 M Street, N.W.,

Suite 140, Washington, D.C. 20037.

This Report and Order contains

modifications to approved collections

and will be submitted to the Office of

Management and Budget for review

under Section 3507(d) of the Paperwork

Reduction Act (44 U.S.C. 3507(d)). For

copies of the submissions contact

Dorothy Conway at (202) 418–0217 or

access our fax on demand system at

202–418–0177 from the handset on your

fax machine and using the document

retrieval number 6000000. A copy of

any comments filed with the Office of

Management and Budget should also be

sent to the following address at the

Commission: Federal Communications

Commission, Records Management

Division, Room 234, Paperwork

Reduction Project, Washington, D.C.

20554. For further information contact

Judy Boley, (202) 418–0210.

Title: Streamlining the Commission’s

Rules and Regulations for Satellite

Application and Licensing Procedures.

Form No.: FCC Form 312.

Type of Review: Revision of existing

collections.

Respondents: Businesses or other for

profit, including small businesses.

Number of Respondents: 1,275.

Estimated Time Per Response: The

Commission estimates all respondents

will hire an attorney or legal assistant to

complete the form. The time to retain

these services is 2 hours per respondent.

Total Annual Burden: 2,550 hours.

Estimated Costs Per Respondent: This

includes the charges for hiring an

attorney, legal assistant, or engineer at

$150 an hour to complete the

submissions. The estimated average

time to complete the Form 312 is 10

hours per response. The estimated

average time to complete space station

submissions is 20 hours per response.

The estimated average time to complete

the ASIA submission is 24 hours per

response. Earth station submissions:

$1935. ($1500 for Form 312; $375

remainder of application; $60 for

outside hire.) Space station

submissions: $4560 ($1500 for Form

312; $3000 for remainder of submission;

$60 for outside hire). ASIA submissions:

$3,660 ($3,600 for submission; $60 for

outside hire). Fee amounts vary by type

of service and application. Total fee

estimates for industry: $4,956,255.00.

Needs and Uses: In accordance with the

Communications Act, the information

collected will be used by the

Commission in evaluating applications

requesting authority to operate pursuant

to Part 25 of the Commission’s rules.

The information will be used to

determine the legal, technical, and

financial ability of the applicants and

will assist the Commission in

determining whether grant of such

authorizations are in the public interest.

Summary of Report and Order

1. In light of the evolving satellite

technology, the Commission

commenced a review of its operations in

order to eliminate outdated regulations

and unnecessary burdens that impede

the introduction of satellite services to

the public and the efficient processing

of satellite applications and licenses. As

a result of this review, the Commission

created the International Bureau. Soon

after its creation, the new International

Bureau held a roundtable discussion in

February 1995 with representatives of

industry and members of the public to

solicit suggestions on ways to improve

satellite application and licensing

policies and procedures. Many of the

recommendations made during that

roundtable discussion were

incorporated in Notice of Proposed

Rulemaking to streamline satellite

licensing procedures. Notice of

Proposed Rulemaking, 60 FR 46252,

September 9, 1995.

2. The Report and Order amends or

eliminates existing requirements, and

codifies in Part 25 of the Commission’s

rules, various technical and procedural

policies and guidelines that have not yet

been specifically codified. Among other

things, the Commission waives the

construction permit requirement for
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations 5925

1Subtitle II of the CWAAA is ‘‘The Small

Business Regulatory Enforcement Fairness Act of

1996’’ (SBREFA), codified at 5 U.S.C. 601 et seq.

2See ‘‘A Guide to the Regulatory Flexibility Act’’

(U.S. Small Business Administration) May 1996.

3Source: A.T. Kearny, Industry Reports.

4 13 CFR 121.201, Standard Industrial

Classification (SIC) Code 4899.

5U.S. Bureau of the Census, U.S. Department of

Commerce, 1992 Census of Transportation,

Communications, and Utilities, UC92–S–1, Subject

Series, Establishment and Firm Size, Table 2D,

Employment Size of Firms: 1992, SIC Code 4899

(issued May 1995).

6See ‘‘Financing the Final Frontier: Funding

Commercial Space Activities’’ Bear Stearns, Global

Space & Satellite Finance Report.

7American Mobile Satellite Corp. is reported to

have 45 employees by the Satellite Industry

Association; 317 employees by Satellite Industry

Analyst ‘‘BZW’’.

satellite space stations; increases the

license term, from one year to ten years,

for temporary fixed earth stations

operating in the C-band; eliminates the

four year implementation period for

VSATs allowing VSAT licensees to

construct their network over the course

of their ten year license term; eliminates

the annual reporting requirement for

VSATs; simplifies the earth and space

station application process by revising

and consolidating FCC Forms 430, 493,

702, and 704; eliminates redundant

reporting requirements for earth and

space stations; allows earth station

operators to make minor technical

modifications to their stations without

prior authorization from the

Commission; and allows satellites to

operate in inclined orbits without prior

authorization from the Commission.

3. Given the large outlay of capital

and long-term planning necessary to

establish satellite systems, it is

necessary to ensure that potential

applicants and service providers are not

hampered by unnecessary and

sometimes redundant regulations. This

action by the Commission recognizes

the need of the satellite industry to

operate in an environment defined by

growth, innovation, efficiency, and

competition.

Ordering Clauses

4. Accordingly, it is ordered that Part

25 of the Commission’s rules, 47 CFR

Part 25, the Commission’s forms, and

the Commission’s policies are amended

as specified in this Report and Order.

5. It is further ordered that the

amendments to Part 25 of the

Commission’s rules, 47 CFR Part 25, the

Commission’s forms and the

Commission’s policies as specified in

this Report and Order will become

effective upon approval by the Office of

Management and Budget of the revised

information collection requirements

adopted herein, but no sooner than

April 11, 1997. This action is taken

pursuant to Sections 4 and 303(r) of the

Communications Act of 1934, as

amended, 47 U.S.C. 154, 303(r), and

Section 201(c) of the Communications

Satellite Act of 1962, 47 U.S.C. 721(c).

Final Regulatory Flexibility Analysis

6. As required by Section 603 of the

Regulatory Flexibility Act, 5 U.S.C. 603

(RFA), an Initial Regulatory Flexibility

Analysis (IRFA) was incorporated in the

Notice of Proposed Rulemaking (NPRM)

in IB Docket 95–117. Written comments

on the proposals in the Notice,

including the Initial Regulatory

Flexibility Analysis, were requested.

The Commission’s Final Regulatory

Flexibility Analysis (FRFA) in this

Report and Order conforms to the RFA,

as amended by the contract With

America Advancement Act of 1996

(CWAAA), Public Law 104–121, 110

Stat. 847 (1996). 1

7. The Regulatory Flexibility Act

(RFA), first enacted in 1980, recognizes

that the size of a business or

organization has a bearing on its ability

to comply with federal regulations and

forces the government to ensure that

their regulations do not unduly inhibit

the ability of small businesses to

compete. 2

I. Need for and Objectives of the Rules

8. With this Report and Order the

Commission eliminates a number of

application and licensing requirements

for satellite and earth stations under

Part 25 of our rules. The last substantial

review of our satellite regulations

occurred in the late 1980’s. Much has

changed in the industry since then,

necessitating a modification of Part 25

of our rules.

9. In this proceeding, the Commission

adopts rule changes and deletions that

promote efficiency and innovation in

the licensing and use of the

electromagnetic spectrum. These

modified rules reflect the changing

nature of the satellite industry and

remove unnecessary regulatory burdens

from large and small service providers.

10. The Commission’s objective is to

identify and eliminate outdated and

cumbersome regulations, to reduce

unnecessary paperwork, and to increase

efficiency in this market which is

expected to grow, worldwide, from

$13.8 to $37 billion in revenue by the

year 2000.3 This objective is consistent

with the Commission’s continuing effort

to review and revise, as necessary, its

rules. In addition, we expect these rule

changes to aid in the development of

competitive and innovative

telecommunications systems.

II. Summary of Significant Issues Raised

by the Public Comments in Response to

the IRFA

11. No comments were received in

direct response to the Initial Regulatory

Analysis. However, a cross section of

satellite industry members, including

two self-identified small entities, CTA

Incorporated (CTA) and Orion Network

Systems, Inc. (Orion), filed comments to

the NPRM and, in general, strongly

supported the proposed changes.

III. Description and Estimate of the

Number of Small Entities To Which

Rule Will Apply

12. The Commission has not

developed a definition of small entities

relevant to satellite services licensees.

Therefore the applicable definition of

small entity in the satellite services

industry is the definition under the

Small Business Administration (SBA)

rules applicable to Communications

Services ‘‘Not Elsewhere Classified.’’ 4

This definition provides that a small

entity is expressed as one with $11

million or less in annual receipts.

According to Census Bureau data, there

are 848 firms that fall under the category

of Communications Services, Not

Elsewhere Classified. Of those,

approximately 775 reported annual

receipts of $11 million or less and

qualify as small entities.5 The Census

Bureau category is very broad and

commercial satellite services constitute

only a subset of its total.

13. Describing and estimating the

number of small entities these rules will

impact is made difficult by a number of

factors. First of all, information from the

Satellite Industry Association and

financial analysts who specialize in this

market indicate there are few firms that

could be traditionally thought of as

small businesses. They point to the fact

that this is a capital intensive industry

that requires ‘‘significant partner

funding and/or contract commitments

prior to approaching commercial

financing sources.’’ 6 In addition,

estimates of employment in the

commercial satellite service industry,

another measure of small business

status, can vary widely.7

14. There are, however, a number of

firms who identify themselves as small

entities including: Columbia

Communications Corp., CTA, Mobile

Communications Holdings, Inc. (MCHI),

Orion, TelQuest Ventures, L.L.C., and

possibly others. Several of these

companies have submitted comments to

the Commission’s Section 257

proceeding to identify and eliminate

market entry barriers for small
5926 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations

8 GN Docket 96–113.

9Comments of Loral Qualcomm at p. 3.

10CTA reply comments at p. 2.

11Comments of Orion at p. 4.

12Comments of Orion at p. 5.

13See Supra at N66.

business 8 and as previously noted, two

of these firms filed comments in this

proceeding.

15. While no reliable estimate exists

of the number of small businesses to

which these rule changes will apply, to

the extent that a business could be

identified as a small entity, we believe

that these proposed rules will have a

positive effect on their ability to

compete in this business sector by

eliminating unnecessary regulatory

burdens and constraints.

IV. Description of Projected Reporting,

Recordkeeping and Other Compliance

Requirements

16. The proposed rules will eliminate

the need for the filing of approximately

thirty-six space station construction

permits; fifteen 319(d) waiver requests;

five Mobile Satellite Station (MSS) earth

station construction permits; six STAs

and two modification applications for

operation of space stations in inclined

orbit, 400 license renewals for

temporary fixed earth stations, 25

applications for extension of time to

complete construction of a Very Small

Aperture Terminal (VSAT) network, and

300 applications for minor modification

annually.

17. In addition, the proposed rules

would consolidate the satellite

application information currently

collected from Forms 702, 704, 493 and

430 into a single form. This streamlines

the Commission’s satellite application

and licensing procedures, making the

entire process more user-friendly and

allowing for faster provision of service

to end users. In addition to the new,

consolidated, Form 312, this item lays

the groundwork for the eventual

development of an electronic filing

system that will streamline and

automate processing further.

18. The Commission also plans to

make technical databases, software, and

other data available on the Internet as

well as through the International Bureau

reference room. These actions should

significantly reduce the cost of

compliance, specifically in the areas of

staff time, recordkeeping, regulatory and

legal fees.

V. Significant Alternatives and Steps

Taken By Agency to Minimize

Significant Economic Impact on a

Substantial Number of Small Entities

Consistent With Stated Objectives

19. The Commission considered all

alternatives submitted by commenters.

We accepted those that lead to

simplification, clarification and

streamlining of the rules. We rejected

those inconsistent with streamlining

objectives. For instance we rejected

Loral Qualcomm’s suggestion that we

defer action on waiver of construction

permit requirements.9 The elimination

of the construction permit waiver was

strongly supported by CTA, who urged

the Commission ‘‘to move forward

expeditiously with the elimination of

the construction permit requirement.’’ 10

We agreed with CTA and others that

this action will reduce delay and

increase flexibility for all entities.

20. Other actions proposed in this

proceeding seek to reduce industry costs

and minimize negative economic

impacts and will benefit the efforts of

any small businesses who may currently

be operating in this industry or those

who seek to enter. Indeed, since the

Report and Order significantly reduce

administrative, regulatory and

paperwork burdens these rule changes

will have a positive effect on small

entities and supports our objective to

eliminate outdated and cumbersome

regulations, reduce unnecessary

paperwork, and increase efficiency in

the satellite services market.

21. We proposed a number of rule

changes that could prove beneficial to

any identifiable small entity or

entrepreneurs providing satellite

services. These actions not only reduce

administrative burdens but also they

provide businesses with increased

flexibility in their operations and are

consistent with our public interest

mandate under the Communications

Act.

22. For instance, as previously noted,

we will eliminate the construction

permit requirement. This, in turn, will

diminish the administrative burdens on

applicants and the potential delays

associated with the processing of

construction permit applications and

requests for Section 319(d) waivers. We

rejected suggestions to delay

implementation of this policy and

suggestions to require notice that

construction had begun. The

construction waiver will allow

companies to move forward with

business plans at their own risk.

23. We will increase the license

renewal term for C-band transportables.

This allows applicants to engage in

long-term business planning and

reduces the administrative and

regulatory burdens associated with

processing license renewals and could

provide significant benefits to small

entities.

24. We will eliminate the

requirements that a VSAT applicant

complete construction of its network

within forty eight months of the date we

grant, and instead, permit VSAT

licensees to complete construction over

the course of their ten-year license term.

As with the extended license renewal

term for C-band, the extended

construction term will serve small

entities and entrepreneurs because it

allows greater flexibility in financial

and construction planning.

25. We will allow licensees making

minor modifications to simply notify us

by letter within thirty days after the

modifications are completed—

eliminating the need to gain prior

authorization from the Commission.

26. We will eliminate unnecessary

and redundant requirements for space

station applications including

‘‘estimated annual revenue

requirements.’’ Deleting this

requirement eliminates controversy

surrounding confidentiality of sensitive

business information and will reduce

the number of petitions for

confidentiality filed with the

Commission and the associated labor

hours and legal fees.

27. We will eliminate the bandwidth

limitation for digital VSAT carriers and

will not impose bandwidth limitations

on other carriers. A change supported

by another self-identified small entity—

Orion.11

28. We will adopt ASIA (Adjacent

Satellite Interference Analysis), a widely

used computer database as the standard

program for analyzing interference with

regard to earth station applications. This

database will be made available via the

Internet and the International Bureau

reference room.

29. Orion expressed concern in their

comments that the ASIA database has

not proven to be the industry standard

and that reporting requirements ‘‘could

impinge upon the proprietary interests

of various satellite operators.’’ 12 In

response we noted that in 1985, the

Reduced Orbital Spacings Advisory

Committee, comprised of both

government and industry

representatives, pronounced ASIA as

the generally accepted procedure for

calculating adjacent satellite

interference.13 In order to protect

proprietary information we plan to

present the database information on an

aggregate basis. This will allow the

Commission to increase public

accessibility of information while

maintaining transparent regulatory

functions.
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations 5927

30. We believe that the rules, as

modified by this Report and Order,

reflect the minimum requirements

necessary to carry out our duties under

the Communications Act and other

Federal statutes including the

Regulatory Flexibility Act. We will,

however, in the future continue to

consider alternatives with the objective

of eliminating unnecessary regulations

and minimizing economic impact on

small businesses.

VI. Commission’s Outreach Efforts to

Learn of and Respond to the Views of

Small Entities Pursuant to 5 U.S.C. 609

31. This rulemaking reflects a new,

collaborative, approach to reinventing

the classic regulatory structure. Prior to

issuing the Notice in this proceeding

and this Report and Order, Commission

staff worked closely with interested

industry members to analyze in detail

each administrative and technical

aspect of the FCC’s Part 25 rules

governing satellite application and

licensing procedures.

32. Beginning in 1994 the

International Bureau has held a series of

roundtable discussions with industry

and the public and issued public notices

soliciting ideas for streamlining

licensing. All entities and interested

parties were invited to participate and a

number of initiatives, including this

proceeding resulted. Indeed, through

our ‘‘Open Skies’’ policy, the FCC seeks

to encourage new players by allowing

any business, regardless of size, who has

a plan and the ability to implement the

plan, a fair chance to succeed in the

satellite service market.

VII. Report to Congress

33. The Commission shall send a copy

of this Final Regulatory Flexibility

Analysis, along with this Report and

Order, to Congress pursuant to the

Small Business Regulatory Enforcement

Fairness Act of 1996, 5 U.S.C.

801(a)(1)(A).

List of Subjects in 47 CFR Part 25

Communications common carriers,

Reporting and recordkeeping

requirements, Satellites.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Part 25 of the Commission’s Rules and

Regulations (Chapter I of Title 47 of the

Code of Federal Regulations) is

amended as follows:

PART 25—SATELLITE

COMMUNICATIONS

1. The authority citation for Part 25

continues to read as follows:

Authority: Secs. 25.101 to 25.601 issued

under Sec. 4, 48 Stat. 1066, as amended; 47

U.S.C. 154. Interpret or apply secs. 101–104,

76 Stat. 419–427; 47 U.S.C. 701–744; 47

U.S.C. 554.

2. Section 25.113 is amended by

revising the section heading and

paragraphs (a), (b), and (f) and adding

new paragraph (g) to read as follows:

§ 25.113 Construction permits, station

licenses, launch authority.

(a) Except as provided in paragraph

(b) of this section or in § 25.131,

construction permits must be obtained

for all fixed, temporary fixed or mobile

earth stations governed by this part.

Simultaneous application for a

construction permit and station license

may be made for all earth station

facilities governed by this part.

(b) Construction permits are not

required for fixed, temporary fixed or

mobile satellite earth stations that

operate with INTELSAT or INMARSAT

space stations or for fixed, temporary

fixed or mobile earth stations that

operate with U.S.-licensed space

stations. Construction of such stations

may commence prior to grant of a

license at the applicant’s own risk.

Applicants must comply with the

provisions of 47 CFR 1.1312 relating to

environmental processing prior to

commencing construction.

* * * * *

(f) Construction permits are not

required for U.S.-licensed space

stations. Construction of such stations

may commence, at the applicant’s own

risk, prior to grant of a license. Prior to

commencing construction, however,

applicants must notify the Commission

in writing that they plan to begin

construction at their own risk.

(g) A launch authorization and station

license (i.e., operating authority) must

be applied for and granted before a

space station may be launched and

operated in orbit. Request for launch

authorization may be included in an

application for space station license.

However, an application for authority to

launch and operate an on-ground spare

satellite will be considered to be a

newly filed application for cut-off

purposes, except where the space

station to be launched is determined to

be an emergency replacement for a

previously authorized space station that

has been lost as a result of a launch

failure or a catastrophic in-orbit failure.

3. Section 25.114 is revised as to read

as follows:

§ 25.114 Applications for space station

authorizations.

(a) A comprehensive proposal shall be

submitted for each proposed space

station on FCC Form 312, Main Form,

together along with attached exhibits as

described in paragraph (c) of this

section. If an applicant is proposing

more than one space station,

information common to all space

stations may be submitted in a

consolidated system proposal.

(b) Each application for a new or

modified space station authorization

must constitute a concrete proposal for

Commission evaluation, although the

applicant may propose alternatives that

increase flexibility in accommodating

the satellite in orbit. Each application

must also contain the formal waiver

required by Section 304 of the

Communications Act, 47 U.S.C. 304.

The technical information for a

proposed satellite system need not be

filed on any prescribed form but should

be complete in all pertinent details. The

format of the applications should

conform to the specifications of § 1.49 of

this chapter.

(c) The following information in

narrative form shall be contained in

each application:

(1) Name, address, and telephone

number of the applicant;

(2) Name, address, and telephone

number of the person(s), including

counsel, to whom inquiries or

correspondence should be directed;

(3) Type of authorization requested

(e.g., launch authority, station license,

modification of authorization);

(4) General description of overall

system facilities, operations and

services;

(5) Radio frequencies and polarization

plan (including beacon, telemetry, and

telecommand functions), center

frequency and polarization of

transponders (both receiving and

transmitting frequencies), emission

designators and allocated bandwidth of

emission, final amplifier output power

(identify any net losses between output

of final amplifier and input of antenna

and specify the maximum EIRP for each

antenna beam), identification of which

antenna beams are connected or

switchable to each transponder and

TT&C function, receiving system noise

temperature, the relationship between

satellite receive antenna gain pattern

and gain-to-temperature ratio and

saturation flux density for each antenna

beam (may be indicated on antenna gain

plot), the gain of each transponder

channel (between output of receiving

antenna and input of transmitting

antenna) including any adjustable gain

step capabilities, and predicted receiver
5928 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations

and transmitter channel filter response

characteristics;

(6)(i) For satellites in geostationarysatellite orbit, orbital location, or

locations if alternatives are proposed,

requested for the satellite, the factors

that support such an orbital assignment,

the range of orbital locations from

which adequate service can be provided

and the basis for determining that range

of orbital locations, and a detailed

explanation of all factors that would

limit the orbital arc over which the

satellite could adequately serve its

expected users;

(ii) For satellites in non-geostationarysatellite orbits, the number of space

stations and applicable information

relating to the number of orbital planes,

the inclination of the orbital plane(s),

the orbital period, the apogee, the

perigee, the argument(s) of perigee,

active service arc(s), and right ascension

of the ascending node(s); and

(iii) For 1.6/2.4 GHz Mobile-Satellite

Service space stations, the feeder link

frequencies requested for the satellite,

together with the demonstration

required by § 25.203 (j) and (k);

(7) Predicted space station antenna

gain contour(s) for each transmit and

each receive antenna beam and nominal

orbital location requested. These

contour(s) should be plotted on an area

map at 2 dB intervals down to 10 dB

below the peak value of the parameter

and at 5 dB intervals between 10 dB and

20 dB below the peak values, with the

peak value and sense of polarization

clearly specified on each plotted

contour;

(8) A description of the types of

services to be provided, and the areas to

be served, including a description of the

transmission characteristics and

performance objectives for each type of

proposed service, details of the link

noise budget, typical or baseline earth

station parameters, modulation

parameters, and overall link

performance analysis (including an

analysis of the effects of each

contributing noise and interference

source);

(9) For satellites in geostationarysatellite orbit, accuracy with which the

orbital inclination, the antenna axis

attitude, and longitudinal drift will be

maintained;

(10) Calculation of power flux density

levels within each coverage area and of

the energy dispersal, if any, needed for

compliance with § 25.208;

(11) Arrangement for tracking,

telemetry, and control;

(12) Physical characteristics of the

space station including weight and

dimensions of spacecraft, detailed mass

(on ground and in-orbit) and power

(beginning and end of life) budgets, and

estimated operational lifetime and

reliability of the space station and the

basis for that estimate;

(13) Detailed information

demonstrating the financial

qualifications of the applicant to

construct and launch the proposed

satellites. Applications shall provide the

financial information required by

§ 25.140 (b) through (e), § 25.142(a)(4),

or § 25.143(b)(3), as appropriate;

(14) A clear and detailed statement of

whether the space station is to be

operated on a common carrier basis, or

whether non-common carrier

transactions are proposed. If noncommon carrier transactions are

proposed, describe the nature of the

transactions and specify the number of

transponders to be offered on a noncommon carrier basis;

(15) Dates by which construction will

be commenced and completed, launch

date, and estimated date of placement

into service;

(16) Public interest considerations in

support of grant;

(17) Applications for authorizations

for domestic fixed-satellite space

stations shall also include the

information specified in § 25.140;

(18) Applications for authorizations in

the Radiodetermination Satellite Service

shall also include the information

specified in § 25.141;

(19) Applications for authorizations in

the Mobile-Satellite Service in the

1545–1559/1646.5–1660.5 MHz

frequency bands shall also provide all

information necessary to comply with

the policies and procedures set forth in

Rules and Policies Pertaining to the Use

of Radio Frequencies in a Land Mobile

Satellite Service, 2 FCC Rcd 485 (1987)

(Available at address in § 0.445 of this

chapter.);

(20) Applications to license multiple

space station systems in the non-voice,

non-geostationary mobile-satellite

service under blanket operating

authority shall also provide all

information specified in § 25.142; and

(21) Applications for authorizations in

the 1.6/2.4 GHz Mobile-Satellite Service

shall also provide all information

specified in § 25.143.

(d) Applicants requesting authority to

launch and operate a system comprised

of technically identical, nongeostationary satellite orbit space

stations may file a single ‘‘blanket’’

application containing the information

specified in paragraph (c) of this section

for each representative space station.

4. Section 25.115 is revised to read as

follows:

§ 25.115 Application for earth station

authorizations.

(a) Transmitting earth stations. Except

as provided under § 25.113(b),

Commission authorization must be

obtained for authority to construct and/

or operate a transmitting earth station.

Applications shall be filed on FCC Form

312, Main Form and Schedule B, and

include the information specified in

§ 25.130.

(b) Receive-only earth stations.

Applications to license or register

receive only earth stations shall be filed

on FCC Form 312, Main Form and

Schedule B, and conform to the

provisions of § 25.131.

(c) Large Networks of Small Antennas

operating in the 12/14 GHz bands with

U.S. satellites for domestic services.

Applications to license small antenna

network systems operating in the 12/14

GHz frequency band under blanket

operating authority shall be filed on

FCC Form 312, Main Form and

Schedule B, for each large (5 meters or

larger) hub station, and Schedule B for

each representative type of small

antenna (less than 5 meters) operating

within the network.

(d) User transceivers in the NVNG and

1.6/2.4 GHz Mobile-Satellite Service

need not be individually licensed.

Service vendors may file blanket

applications for transceivers units using

FCC Form 312, Main Form and

Schedule B, and specifying the number

of units to be covered by the blanket

license. Each application for a blanket

license under this section shall include

the information described in § 25.135.

5. Section 25.117 is amended by

revising the introductory text of

paragraph (a) to read as follows:

§ 25.117 Modification of station license.

(a) Except as provided for in § 25.118

(Modifications not requiring prior

authorization), no modification of a

radio station governed by this part

which affects the parameters or terms

and conditions of the station

authorization shall be made except

upon application to and grant of such

application by the Commission. No

license modification will be required if

the licensee seeks to access another

U.S.-licensed fixed satellite provided:

* * * * *

6. Sections 25.118 through 25.120 are

redesignated as §§ 25.119 through

25.121 and a new § 25.118 is added to

read as follows:

§ 25.118 Modifications not requiring prior

authorization.

(a) Equipment in an authorized earth

station may be replaced without prior

authorization or prior notification if the
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations 5929

new equipment is electrically identical

to the existing equipment. Licensees

must notify the Commission using FCC

Form 312, Main Form, within 30 days

after the new equipment is installed.

(b) A licensee providing service on a

private carrier basis may change its

operations to common carrier status

without obtaining prior Commission

authorization. The licensee must notify

the Commission using Form 312 within

30 days after the completed change to

common carrier status.

(c) Licensees may make changes to

their authorized earth stations without

obtaining prior Commission

authorization if frequency coordination

procedures, as necessary, are complied

with in accordance with § 25.251, and

the modification does not involve:

(1) An increase in EIRP or EIRP

density (both main lobe and side lobe);

(2) An increase in transmitted power;

(3) A change in coordinates of more

than 1 second for stations operating in

C-Band or 10.95 to 11.7 GHz;

(4) A change in coordinates of 10

seconds or greater for stations operating

in Ku-band; or

(5) An addition to an antenna facility,

including hub earth stations and remote

terminals, that is already licensed,

except for VSAT remote terminals.

(d) Licensees must notify the

Commission using FCC Form 312

within 30 days after the modification is

completed.

7. In newly redesignated § 25.119,

paragraphs (c), (d) and (f) are revised to

read as follows:

§ 25.119 Assignment or transfer of control

of station authorization.

* * * * *

(c) Assignment of license. FCC Form

312, Main Form and Schedule A, shall

be submitted to assign voluntarily (as

by, for example, contract or other

agreement) or involuntarily (as by, for

example, death, bankruptcy, or legal

disability) the station authorization. In

the case of involuntary assignment, the

application should be filed within 10

days of the event causing the

assignment. FCC Form 312, Main Form,

and Schedule A shall also be used for

non-substantial (pro forma)

assignments.

(d) Transfer of control of corporation

holding license. FCC Form 312, Main

Form and Schedule A, shall be

submitted in order to transfer

voluntarily or involuntarily (de jure or

de facto) control of a corporation

holding any licenses. In the case of

involuntary transfer of control, the

applications should be filed within 10

days of the event causing the transfer of

control. FCC Form 312, Main Form and

Schedule A shall also be used for nonsubstantial (pro forma) transfers of

control.

* * * * *

(f) Assignments and transfers of

control shall be completed within 60

days from the date of authorization.

Within 30 days of consummation, the

Commission shall be notified by letter of

the date of consummation and the file

numbers of the applications involved in

the transaction.

8. In newly redesignated § 25.120, the

last sentence of paragraph (a) is revised

to read as follows:

§ 25.120 Application for special temporary

authorization.

(a) * * * A copy of the request for

special temporary authority also shall be

forwarded to the Commission’s

Columbia Operations Center in

Columbia, Maryland.

* * * * *

9. In newly redesignated § 25.121,

paragraph (a) is revised to read as

follows:

§ 25.121 License term and renewals.

(a) License term. Licenses for facilities

governed by this part will be issued for

a period of 10 years.

* * * * *

10. Section 25.130 is amended by

revising paragraph (a) to read as follows:

§ 25.130 Filing requirements for

transmitting earth stations.

(a) Application for a new or modified

transmitting earth station facility shall

be submitted on FCC Form 312, Main

Form and Schedule B, accompanied by

any required exhibits.

* * * * *

11. Section 25.131 is amended by

revising paragraphs (a), (d), and (j) to

read as follows:

§ 25.131 Filing requirements for receiveonly earth stations.

(a) Except as provided in paragraphs

(b) and (j) of this section, applications

for a license for a receive-only earth

station shall be submitted on FCC Form

312, Main Form and Schedule B,

accompanied by any required exhibits.

* * * * *

(d) Applications for registration shall

be filed on FCC Form 312, Main Form

and Schedule B, accompanied by the

coordination exhibit required by

§ 25.203, and any other required

exhibits. Any application that is

deficient or incomplete in any respect

shall be immediately returned to the

applicant without processing.

* * * * *

(j) Receive-only earth stations

operating with INTELSAT space

stations, or U.S.-licensed and non-U.S.

space stations for reception of services

from other countries; shall file an FCC

Form 312, Main Form and Schedule B,

requesting a license for such station.

Receive-only earth stations used to

receive INTELNET I services from

INTELSAT space stations need not file

for licenses. See Deregulation of

Receive-Only Satellite Earth Stations

Operating with the INTELSAT Global

Communications Satellite System,

Declaratory Ruling, RM No. 4845, FCC

86–214 (released May 19, 1986).

12. Section 25.134 is amended by

revising the first sentences of

paragraphs (a) and (b) and adding

paragraph (d) to read as follows:

§ 25.134 Licensing Provisions of Very

Small Aperture Terminal (VSAT) Networks.

(a) All applications for digital VSAT

networks with a maximum outbound

downlink EIRP density of +6.0 dBW/4

kHz per carrier and earth station

antennas with maximum input power

density of ¥14 dBW/4 kHz and

maximum hub EIRP of 78.3 dBW will be

processed routinely. * * *

(b) Each applicant for digital and/or

analog VSAT network authorization

proposing to use transmitted satellite

carrier EIRP densities in excess of +6.0

dBW/4 kHz and +13.0 dBW/4 kHz,

respectively, and/or maximum antenna

input power densities of ¥14.0 dBW/4

kHz and maximum hub EIRPs of 78.3

dBW and ¥8.0 dBW/ 4 kHz per carrier,

respectively, shall conduct an

engineering analysis using the Sharp,

Adjacent Satellite Interference Analysis

(ASIA) program. * * *

* * * * *

(d) An application for VSAT

authorization shall be filed on FCC

Form 312, Main Form and Schedule B.

A VSAT licensee applying to renew its

license must include on FCC Form 405,

the number of constructed VSAT units

in its network.

13. Section 25.140 is revised to read

as follows:

§ 25.140 Qualifications of fixed-satellite

space station licensees.

(a) New fixed-satellites shall comply

with the requirements established in

Report and Order, CC Docket No. 81–

704 (available at address in § 0.445 of

this chapter.) Applications must also

meet the requirements in paragraphs (b)

through (d) of this section. The

Commission may require additional or

different information in the case of any

individual application. Applications

will be unacceptable for filing and will

be returned to the applicant if they do

not meet the requirements referred to in

this paragraph.
5930 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations

(b) Each applicant for a space station

authorization in the fixed-satellite

service must demonstrate, on the basis

of the documentation contained in its

application, that it is legally, financially,

technically, and otherwise qualified to

proceed expeditiously with the

construction, launch and/or operation of

each proposed space station facility

immediately upon grant of the requested

authorization. Each applicant must

provide the following information:

(1) The information specified in

§ 25.114;

(2) An interference analysis to

demonstrate the compatibility of its

proposed system 2 degrees from any

authorized space station. An applicant

should provide details of its proposed

r.f. carriers which it believes should be

taken into account in this analysis. At

a minimum, the applicant must include,

for each type of r.f. carrier, the link

noise budget, modulation parameters,

and overall link performance analysis.

(See, e.g., appendices B and C to

Licensing of Space Stations in the

Domestic Fixed-Satellite Service

(available at address in § 0.445 of this

chapter));

(3) The estimated costs of proposed

construction and/or launch, and any

other initial expenses for the space

station(s); and

(4) Estimated operating expenses for

one year after launch of the proposed

space station(s).

(c) Each application for authority to

construct and/or launch and operate a

space station shall demonstrate the

applicant’s current financial ability to

meet the costs specified in paragraphs

(b)(3) and (b)(4) of this section by

submitting the following financial

information verified by affidavit:

(1) A balance sheet current for the

latest fiscal year and documentation of

any financial commitments reflected in

the balance sheet (such as, for example,

loan agreements and service contracts)

together with an exhibit demonstrating

that the applicant has current assets and

operating income sufficient to meet the

costs specified in paragraphs (b)(3) and

(b)(4) of this section. If the applicant is

owned by more than one corporate

parent, it must submit evidence of a

commitment to the proposed satellite

program by management of the

corporate parent upon whom it is

relying for financial resources;

(2) If the submissions of paragraph

(c)(1) of this section do not reflect

sufficient financial resources to meet the

costs specified in paragraphs (b)(3) and

(b)(4) of this section, the applicant shall

submit additional information as listed

below:

(i) The terms of any fully negotiated

loan or other form of credit arrangement

intended to be used to finance the

proposed construction, acquisition, or

operation of the requested facilities

including such information as the

identity of the creditor (or creditors), the

amount committed, letters of

commitment, detailed terms of the

transaction, including the details of any

contingencies, and a statement that the

applicant complies with paragraph (d)

of this section;

(ii) The terms of any fully negotiated

sale or placement of any equity or other

form of ownership interest, including

the sale, or long-term lease for the

lifetime of the satellite, of proposed

satellite transponder capacity in the

level of detail as specified in paragraph

(c)(2)(i) of this section;

(iii) The terms of any grant or other

external funding commitment intended

to be used to finance the proposed

construction, acquisition, or operation

of the requested facilities, including

such information as the identity of the

grantor(s), the amount committed,

letters of commitment, and detailed

terms of the transaction, including the

details of any contingencies; or

(iv) Any financing arrangements

contingent on further performance by

either party, such as marketing of

satellite capacity or raising additional

financing, will not be considered in

evaluating an applicant’s financial

qualifications; and

(3) Whatever other information or

details the Commission may require

with regard to a specific application or

applicant.

(d) Any loan or other credit

arrangement providing for a chattel

mortgage or secured interest in any

proposed facility must include a

provision for a minimum of ten (10)

days prior written notification to the

licensee or permittee, and to the

Commission, before any such

equipment may be repossessed under

any default provision of the agreement.

(e) An applicant found to be qualified

pursuant to this section may be initially

assigned up to two orbital locations in

each pair of frequency bands proposed.

Authorizations to construct ground

spares are at the applicant’s risk that

launch authorization will not be granted

by the Commission.

(f) Each applicant found to be

qualified pursuant to this section may

be assigned no more than one additional

orbital location beyond its current

authorizations in each frequency band

in which it is authorized to operate,

provided that its in-orbit satellites are

essentially filled and that it has no more

than two unused orbital locations for

previously authorized but unlaunched

satellites in that band.

(g) In the event that one or more

applications satisfying the requirements

of this section are ready for grant, any

orbital location occupied by a satellite

that is determined to be a part of a

system that is not essentially filled may

be cancelled and collocation of in-orbit

satellites may be required. The

Commission may take this action if, in

so doing, it would allow the grant of

pending applications that satisfy the

requirements of this section. If a

cancellation is made, the licensee will

be afforded a period of 30 days to notify

the Commission which of its assigned

locations should be cancelled.

14. Section 25.141 is amended by

revising paragraph (c) to read as follows:

§ 25.141 Licensing provisions for the

radiodetermination satellite service.

* * * * *

(c) User transceivers. Individual user

transceivers will not be licensed.

Service vendors may file blanket

applications for transceiver units using

FCC Form 312, Main Form and

Schedule B, and specifying the number

of units to be covered by the blanket

license. Each application must

demonstrate that transceiver operations

will not cause interference to other

users of the spectrum.

* * * * *

15. Section 25.142 is amended by

revising the introductory text of

paragraph (c) to read as follows:

§ 25.142 Licensing provisions for the nonvoice, non-geostationary mobile-satellite

service.

* * * * *

(c) Reporting requirements. All

operators of non-voice, nongeostationary mobile-satellite service

systems shall, on June 30 of each year,

file a report with the International

Bureau and the Commission’s Columbia

Operations Center in Columbia,

Maryland, containing the following

information current as of May 31st of

that year:

* * * * *

16. Section 25.143 is amended by

revising paragraph (e)(1) to read as

follows:

§ 25.143 Licensing provisions for the 1.6/

2.4 GHz Mobile-Satellite Service.

* * * * *

(e) Reporting requirements. (1) All

operators of 1.6/2.4 GHz mobile-satellite

systems shall, on June 30 of each year,

file with the International Bureau and

the Commission’s Columbia Operations

Center, Columbia, Maryland, a report
Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations 5931

containing the following information

current as of May 31st of that year:

* * * * *

17. Section 25.155 is amended by

revising paragraph (b) to read as follows:

§ 25.155 Mutually exclusive applications.

* * * * *

(b) A space station application will be

entitled to comparative consideration

with one or more conflicting

applications only if:

(1) The application is mutually

exclusive with another application; and

(2) The application is received by the

Commission in a condition acceptable

for filing by the ‘‘cut-off’’ date specified

in a public notice.

18. Section 25.210 is amended by

revising the introductory text of

paragraph (j) and revising paragraph

(j)(3), to read as follows:

§ 25.210 Technical requirements for space

stations in the Fixed-Satellite Service.

* * * * *

(j) All operators of space stations

shall, on June 30 of each year, file a

report with the International Bureau and

the Commission’s Columbia Operations

Center in Columbia, Maryland,

containing the following information

current as of May 31st of that year:

* * * * *

(3) A detailed description of the

utilization made of each transponder on

each of the in-orbit satellites. This

description should identify the total

capacity or the percentage of time each

transponder is actually used for

transmission, and the amount of unused

system capacity in the transponder. This

information is not required for those

transponders that are sold on a noncommon carrier basis. In that case,

operators should indicate the number of

transponders sold on each in-satellite

orbit.

* * * * *

19. Section 25.211 is amended by

revising the section heading and adding

paragraph (d), to read as follows:

§ 25.211 Video Transmissions in the FixedSatellite Service.

* * * * *

(d) In the 6 GHz band, an earth station

with an equivalent diameter of 9 meters

or smaller may be routinely licensed for

transmission of full transponder

services if the maximum power into the

antenna does not exceed 450 watts (26.5

dBW). In the 14 GHz band, an earth

station with an equivalent diameter of 5

meters or smaller may be routinely

licensed for transmission of full

transponder services if the maximum

power into the antenna does not exceed

500 watts (27 dBW).

20. Section 25.212 is amended by

adding paragraphs (c) and (d), to read as

follows:

§ 25.212 Narrowband transmissions in the

Fixed-Satellite Service.

* * * * *

(c) In the 14 GHz band, an earth

station with an equivalent diameter of

1.2 meters or greater may be routinely

licensed for transmission of narrowband

analog services with bandwidths up to

200 kHz if the maximum input power

density into the antenna does not

exceed ¥8 dBW/4 kHz and the

maximum transmitted satellite carrier

EIRP density does not exceed 13 dBW/

4 kHz, and for transmission of

narrowband and/or wideband digital

services, if the maximum input power

density into the antenna does not

exceed ¥14 dBW/4 kHz and the

maximum transmitted satellite carrier

EIRP density does not exceed +6.0

dBW/kHz.

(d) In the 6 GHz band, an earth station

with an equivalent diameter of 4.5

meters or greater may be routinely

licensed for transmission of SCPC

services if the maximum power

densities into the antenna do not exceed

+0.5 dBW/4 kHz for analog SCPC

carriers with bandwidths up to 200 kHz,

and do not exceed ¥2.7 dBW/4 kHz for

narrow and/or wideband digital SCPC

carriers.

21. Section 25.251 is revised to read

as follows:

§ 25.251 Special requirements for

coordination.

(a) The administrative aspects of the

coordination process are set forth in

§§ 21.100(d) and 21.706 (c) and (d) of

this chapter in the case of coordination

of terrestrial stations with earth stations,

and in § 25.203 in the case of

coordination of earth stations with

terrestrial stations.

(b) The technical aspects of

coordination are based on Appendix 28

of the International

Telecommunications Union Radio

Regulations and certain

recommendations of the ITU

Radiocommunication Sector (‘‘ITU–R’’)

(available at the International Bureau

Reference Center, Room 102, 2000 M

Street, NW., Washington, DC 20554.).

§§ 25.252 through 25.256 [Removed]

22. Sections 25.252 through 25.256

are removed.

23. Section 25.272 is amended by

revising the first sentence of paragraph

(b) to read as follows:

§ 25.272 General inter-system

coordination procedures.

* * * * *

(b) Each space station licensee shall

maintain on file with the Commission

and with its Columbia Operations

Center in Columbia, Maryland a current

listing of the names, titles, addresses

and telephone numbers of the points of

contact for resolution of interference

problems. * * *

* * * * *

24. Section 25.274 is amended by

revising the first sentence of paragraph

(f) to read as follows:

§ 25.274 Procedures to be followed in the

event of harmful interference.

* * * * *

(f) At any point, the system control

center operator may contact the

Commission’s Columbia Operations

Center in Columbia, Maryland to assist

in resolving the matter. * * *

* * * * *

25. Section 25.277 is amended by

revising the introductory text of

paragraph (c) to read as follows:

§ 25.277 Temporary fixed earth station

operations.

* * * * *

(c) The licensee of an earth station

which is authorized to conduct

temporary fixed operations in bands

shared co-equally with terrestrial fixed

stations shall provide the following

information to the Director of the

Columbia Operations Center at 9200

Farmhouse Lane, Columbia, Maryland

21046 and to the licensees of all

terrestrial facilities lying within the

coordination contour of the proposed

temporary fixed earth station site before

beginning transmissions:

* * * * *

26. A new Section 25.280 is added to

subpart D to read as follows:

§ 25.280 Inclined orbit operations.

(a) Satellite operators may commence

operation in inclined orbit mode

without obtaining prior Commission

authorization provided that the

Commission is notified by letter within

30 days after operators commence. The

notification shall include:

(1) The operator’s name;

(2) The date of commencement of

inclined orbit operation;

(3) The initial inclination;

(4) The rate of change in inclination

per year; and

(5) The expected end-of-life of the

satellite accounting for inclined orbit

operation.

(b) Licensees operating in inclinedorbit are required to:

(1) Periodically correct the satellite

altitude to achieve a stationary

spacecraft antenna pattern on the

surface of the Earth and centered on the

satellite’s designated service area;
5932 Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / Rules and Regulations

(2) Control all interference to adjacent

satellites, as a result of operating in an

inclined orbit, to levels not to exceed

that which would be caused by the

satellite network operating without an

inclined orbit;

(3) Not claim protection in excess of

the protection that would be received by

the satellite network operating without

an inclined orbit; and

(4) Continue to maintain the space

station at the authorized longitude

orbital location in the geostationary

satellite arc with the appropriate eastwest station-keeping tolerance.

§ 25.308 [Redesignated as § 25.281]

27. Section 25.308 is redesignated as

§ 25.281 and transferred to subpart D.

Subpart E—[Removed and Reserved]

28. Subpart E is removed and

reserved.

[FR Doc. 97–2081 Filed 2–7–97; 8:45 am]

BILLING CODE 6712–01–P