[Federal Register Volume 62, Number 212 (Monday, November 3, 1997)]
[Rules and Regulations]
[Pages 59293-59297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28995]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket No. 96-220; FCC 97-370]


Non-Voice, Non-Geostationary Mobile Satellite Service

AGENCY: Federal Communications Commission.
ACTION: Final rule.

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SUMMARY: The Commission has adopted rules and policies to govern the 
second processing round for the non-voice, non-geostationary mobile 
satellite service (``NVNG MSS'') also referred to as the ``Little LEO'' 
service. The Commission's rules adopted include a spectrum sharing plan 
that permits licensing five NVNG MSS applicants; financial 
qualification rules; rules requiring NVNG MSS licensees to time-share 
spectrum with existing commercial and government licensees; and a rule 
requiring second processing round applicants to file amendments to 
their applications to conform their applications to the rules adopted 
in the Report and Order.
EFFECTIVE DATE: January 2, 1998.
ADDRESSES: Office of the Secretary, Federal Communications Commission, 
1919 M Street, N.W., Washington, D.C. 20554.
FOR FURTHER INFORMATION CONTACT: Daniel Connors, International Bureau, 
Satellite Policy Branch, (202) 418-0755; or Kathleen Campbell, 
International Bureau, Satellite Policy Branch (202) 418-0753.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in IB Docket No. 96-220; FCC 97-370, adopted October 8, 1997, 
and released October 15, 1997. 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 from the Commission's world-wide-web page on the 
Internet (http://www.fcc.gov), 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. 
Because this Report and Order contains information collections that 
affect less than 10 persons and, therefore, is not subject to the 
Paperwork Reduction Act of 1995, Public Law No. 104-13. As required by 
Section 603 of the Regulatory Flexibility Act, the Commission has 
prepared a Regulatory Flexibility Analysis (``RFA'') of the expected 
impact on small entities of the proposals suggested in this document.

Summary of the Report and Order

    1. This Report and Order (``R&O'') reflects the Commission's 
commitment to licensing applicants in the second processing round to 
provide Little LEO service and the Commission's continued efforts to 
promote competition in the U.S. satellite services market. With this 
R&O, we adopt a spectrum sharing plan and service rules and polices for 
the licensing of five applicants in the second processing round.
    2. Because the second processing round applicants filed a mutually 
agreed upon spectrum sharing plan with the Commission that accommodates 
all of their proposed systems, we decline to adopt our proposed new 
entrant rule. The spectrum sharing plan that we adopt achieves the same 
pro-competitive objectives as our proposed new entrant rule with the 
additional benefit of permitting the licensing of all five second 
processing round applicants. Therefore, our proposed new entrant rule 
is unnecessary.
    3. As a result of the spectrum sharing plan agreed to by the second 
processing round applicants, all applicants can be accommodated in the 
available spectrum being licensed. Consequently, our proposed strict 
financial qualification standard is unnecessary to prevent an under-
financed applicant from preventing a fully capitalized applicant from 
going forward. Therefore, we adopt a relaxed financial qualification 
standard that requires that second processing round applicants 
demonstrate finances sufficient to construct and launch two satellites 
in their proposed systems and to operate two satellites in their system 
for one year after their launch.
    4. We adopt a spectrum sharing plan that permits licensing five 
second processing round applicants: three new Little LEO systems and 
two existing Little LEO licensees. One new Little LEO applicant 
(``System 1'') can operate a system in the 148-150.05 MHz uplink band 
and the 137-137.025 MHz, 400.15-401 MHz downlink bands. A second new 
Little LEO applicant (``System 2'') can operate a system in the 148-
150.05 MHz uplink band and in parts of the 400.15-401 MHz and 137-138 
MHz downlink bands. A third new Little LEO applicant (``System 3'') can 
operate a system in the 148-148.905 MHz uplink band and the 137.0725-
137.9275 MHz downlink band. Orbital Communications Corporation, an 
existing Little LEO licensee (``Orbcomm''), can expand its Little LEO 
system by sharing approximately 355 kHz of spectrum in the 148-148.855 
MHz uplink band with Systems 1, 2 and 3. Orbcomm will also operate in 
parts of the 137-138 MHz downlink band not being used by Systems 1 or 
2. Finally, Volunteers in Technical Assistance, Inc. (``VITA''), also 
an existing Little LEO licensee, can expand its authorized Little LEO 
system to operate in the 400.5983-400.645 MHz downlink band on a time-
shared basis with System 2. In the 137-138 MHz band, System 2 will

[[Page 59294]]

be required to time-share spectrum with meteorological satellites of 
the National Oceanic and Atmospheric Administration (``NOAA''). In the 
400.15-400.505 MHz and 400.645-401 MHz bands, System 1 will be required 
to time-share the spectrum with meteorological satellites of the 
Department of Defense (``DoD'').
    5. Because System 2 will be unable to implement its system fully in 
the spectrum available in the second processing round, the Commission 
has adopted a rule that makes the System 2 licensee eligible to apply 
for and use up to 210 kHz of downlink spectrum subsequently allocated 
to the Little LEO service on a worldwide and domestic basis, subject to 
operating conditions and other restrictions imposed by the Commission. 
This priority will enable the System 2 licensee to implement its 
proposed system.
    6. The R&O requires System 1 and System 2 to time-share parts of 
their downlink spectrum with the meteorological satellite systems of 
DoD and NOAA, respectively. Consequently, we have adopted rules 
permitting System 1 and System 2 to time-share this spectrum with DoD 
and NOAA, respectively, subject to certain elevation angle, 
transmission termination, satellite shut-off and frequency 
demonstration and change requirements imposed by the Commission to 
protect the DoD and NOAA meteorological satellite systems from harmful 
interference from the operations of System 1 and System 2, 
respectively.
    7. We also adopted a rule prohibiting a NVNG licensee from entering 
into exclusive agreements or arrangements with other countries 
concerning communications to and from the United States. An exclusive 
agreement or arrangement may foreclose other United States Little LEO 
licensees from serving a foreign market and preventing that licensee 
from providing global service.
    8. Finally, we adopted a rule requiring second processing round 
applicants to amend their applications within 15 days after the release 
of the R&O in order to conform their applications with the rules and 
policies adopted in the R&O. Ordering Clauses
    9. Accordingly, It Is Ordered pursuant to sections 1, 4, 303(r), 
and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 
Secs. 151, 154, 303(r), and 309(j), that Part 25 of the Commission's 
Rules, 47 CFR 25, and the Commission's policies are amended as 
specified in this R&O.
    10. It is further ordered that second round applicants shall file 
amended applications on or before October 30, 1997. We find good cause 
to make this rule effective within 15 days after the release of this 
R&O. This rule will enable the five second round applicants to expedite 
the amendment of their second round applications which have been 
pending for approximately three years. This will enable the Commission 
to expedite the processing of second round applications in order to 
issue licenses to qualified applicants. Continued delay in the 
processing of second round applications will increase the headstarts 
already given to existing first round licensees and other providers of 
competitive services. Further delay in issuing second processing round 
licenses will undermine the public interest by delaying the entry of 
new competitors in the markets for Little LEO services. Moreover, we 
find that good cause exists to waive additional notice and comment upon 
this rule because it is unnecessary and contrary to the public 
interest. This rule has already been subject to notice and comment in 
this rulemaking proceeding and the second round applicants that are 
directly affected by this rule are urging the Commission to take prompt 
action in this R&O that will expedite the issuance of second round 
licenses. It would be contrary to the public interest for the 
Commission to delay further the processing of second round applications 
now that the second round applicants have mutually agreed upon a 
spectrum sharing plan and are urging the Commission to expedite the 
issuance of second round licenses.
    11. The analysis required pursuant to the Regulatory Flexibility 
Act, 5 U.S.C. Sec. 604, is set forth below.
    12. The Paperwork Reduction Act does not apply to the rules adopted 
herein because such rules apply to less than 10 persons.
    13. Except for the rule requiring the filing of amended 
applications by second round applicants within 15 days after the 
release of this R&O, It is further ordered that amendments to Part 25 
of the Commission's Rules, 47 CFR part 25, and the Commission's 
policies, as specified in this R&O, Will Become Effective January 2, 
1998.

Final Regulatory Flexibility Act Statement

    14. As required by Section 603 of the Regulatory Flexibility Act, 
the Commission has prepared a final Regulatory Flexibility Analysis 
(``FRFA'') of the expected impact on small entities of the proposals 
suggested in this document. The Secretary shall send a copy of this 
R&O, including the Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with paragraph 603(a) of the Regulatory Flexibility Act, Public Law No. 
96-354, 94 Stat. 1164, 5 U.S.C. Sec. 601 et seq. (1981).

Final Regulatory Flexibility Analysis

    15. As required by RFA, an Initial Regulatory Flexibility Analysis 
(``IRFA'') was incorporated in the Notice of Proposed Rulemaking (the 
``Notice''). The Commission sought written public comment on the 
proposals in the Notice, including comment on the IRFA. This FRFA, 
concerning the R&O, conforms to the RFA.

I. Need for and Objectives of the R&O

    16. In this decision, the Commission, adopts a spectrum licensing 
plan and service rules and policies for second processing round 
applicants for NVNG MSS systems that will operate in frequency bands 
below 1 GHz. The purpose of this action is to develop rules and 
policies for licensing new NVNG MSS systems and existing NVNG licensees 
seeking to expand the service capability of their systems in order to 
(a) promote competition in the emerging NVNG MSS service markets and 
(b) spur the rapid delivery of new services to the public at reasonable 
prices. NVNG MSS systems provide near real-time data services worldwide 
and are global systems. In order to ensure the rapid and successful 
implementation of new NVNG MSS systems, the Commission has worked 
closely with the National Telecommunications and Information 
Administration (``NTIA'') to develop innovative technical service rules 
that permit new NVNG MSS systems to time-share the licensed spectrum 
with existing United States government systems that will be operating 
in the same downlink spectrum. The R&O adopts rules and policies that 
promote efficiency in licensing and use of the electromagnetic 
spectrum. In addition, we expect that the licensing framework we have 
set out for NVNG MSS systems will aid in the development of competitive 
and innovative satellite systems.

II. Summary of Significant Issues Raised by Public Comments in Response 
to the Initial Regulatory Flexibility Analysis

    17. No comments were received specifically in response to the IRFA. 
However, in order to minimize the entry barriers for new Little LEO 
systems seeking to provide NVNG MSS systems, the Commission staff spent 
months working with NTIA and the applicants to fashion a spectrum 
licensing plan that was proposed in the Notice. Before release of the 
R&O, we, again, worked

[[Page 59295]]

closely with second round applicants and encouraged them to develop a 
mutually acceptable spectrum licensing plan. All of the second 
processing round applicants were able to reach agreement regarding a 
spectrum sharing plan and that plan has been adopted in the R&O. The 
spectrum sharing plan accommodates the system designs of all second 
round applicants, including existing NVNG MSS licensees. Therefore, we 
will not adopt our new entrant eligibility requirements and will apply 
our relaxed financial standard, rather than the strict financial 
standard proposed in the Notice. In addition, because all second round 
applicants can be accommodated in the available spectrum, the spectrum 
sharing plan we adopt avoids mutual exclusivity. Consequently, it will 
be unnecessary for the Commission to employ an auction to choose among 
mutually exclusive applicants. Finally, the R&O adopts eligibility 
rules for the use of future MSS spectrum and for receiving a second 
processing round authorization. By licensing all second round NVNG MSS 
applicants, we enable small entities and start-up companies the 
opportunity to compete in the capital intensive satellite industry.

III. Description and Estimate of the Number of Small Entities to Which 
Rules Will Apply

    18. The Commission has not developed a definition of small entities 
applicable to satellite service licensees. Therefore, the applicable 
definition of small entity is the definition under the Small Business 
Administration rules applicable to Communications Services ``Not 
Elsewhere Classified.'' This definition provides that a small entity is 
one with $11 million or less in annual receipts.<SUP>1</SUP>
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    \1\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
Code 4899.
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    19. Of the five applicants in the second processing round, two are 
small entities: Volunteers in Technical Assistance, Inc. and LEO One 
USA Corporation. The remaining three second round applicants, Orbital 
Communications Corporation, Final Analysis Communications, Inc. and E-
Sat, are not small entities because they each have revenues in excess 
of $11 million annually or have parent companies or investors that have 
revenues in excess of $11 million annually.
    20. The service rules adopted in the R&O will not apply to other 
small entities currently providing NVNG MSS types of services. The 
services rules apply only to second round NVNG MSS licensees that time-
share spectrum in the 400.15-401 MHz and 137-138 MHz frequency bands 
with existing United States government satellite systems.

IV. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    21. The rules adopted in the R&O require that all second processing 
round applicants file amendments to their pending applications to 
conform to the rules and policies adopted in the R&O. Such amendments 
are required in order to provide the Commission with updated technical 
and financial information about each applicant so that the Commission 
can determine whether or not an applicant is technically and 
financially qualified to receive a license to operate in the applied 
for spectrum.
    22. In this R&O, we also adopt certain compliance requirements for 
second round NVNG MSS licensees that time-share spectrum in the 400.15-
401 MHz and 137-138 MHz frequency bands with United States government 
satellite systems. The Commission may terminate the operations of NVNG 
MSS licensees determined to be interfering with the operations of 
United States government satellite systems. NVNG MSS licensees will 
also be required to comply with technical operational parameters 
relating to elevation angle, system demonstration requirements and 
satellite fail-safe procedures.

V. Steps Taken to Minimize Significant Economic Burden on Small 
Entities, and Significant Alternatives Considered

    23. The Commission proposed in the Notice applying a strict 
financial standard to second round NVNG MSS applicants. In order to 
minimize any barriers for entry into this new satellite market for 
small entities, Commission staff spent months encouraging and working 
with all of the NVNG MSS second round applicants to develop a spectrum 
sharing plan that could accommodate all second round applicants. As 
discussed in the R&O, all second round applicants can be accommodated 
under the spectrum licensing plan that we adopt. Therefore, we will 
apply the same relaxed financial standard to second processing round 
applicants that we applied to first processing round licenses. By 
developing a spectrum sharing plan that accommodates all second round 
applicants, we enable small entities and start-up companies the 
opportunity to compete in the capital intensive satellite industry.

VI. Report to Congress

    24. The Commission shall send a copy of this FRFA, along with the 
R&O, in a report to Congress pursuant to the Small Business Regulatory 
Enforcement Fairness Act of 1996, 5 U.S.C. 801(a)(1)(A). A copy of this 
FRFA will also be published in the Federal Register.

List of Subjects in 47 CFR Part 25

    Satellites.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Part 25 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. Paragraphs (d) and (e) are added to Sec. 25.142 to read as 
follows:


Sec. 25.142  Licensing provisions for the non-voice, non-geostationary 
mobile-satellite service.

* * * * *
    (d) Prohibition of certain agreements. No license shall be granted 
to any applicant for a non-voice, non-geostationary mobile-satellite 
service system if that applicant, or any companies controlling or 
controlled by the applicant, shall acquire or enjoy any right, for the 
purpose of handling traffic to or from the United States, its 
territories or possessions, to construct or operate space segment or 
earth stations in the non-voice, non-geosynchronous mobile-satellite 
service, or to interchange traffic, which is denied to any other United 
States company by reason of any concession, contract, understanding, or 
working arrangement to which the licensee or any persons or companies 
controlling or controlled by the licensee are parties.
    (e) Spectrum priority. (1) The non-voice, non-geosynchronous 
mobile-satellite service system that is authorized in the second 
application processing round to operate in the 148-148.25 MHz, 148.75-
148.855 MHz, 148.905-149.81 MHz and 150-150.05 MHz uplink frequency 
bands and the 400.505-400.5517 MHz, 400.5983-400.645 MHz, 137.025-
137.175 MHz, 137.333-137.4125 MHz, 137.475-

[[Page 59296]]

137.525 MHz, 137.595-137.645 MHz, 137.753-137.787 MHz and 137.825-138 
MHz downlink frequency bands (the ``System 2 licensee'') will have a 
first priority to apply for and use a limited amount of downlink 
spectrum duly allocated worldwide and domestically to the non-voice, 
non-geosynchronous mobile-satellite service by the ITU, at WRC-97 or a 
subsequent World Radiocommunication Conference, and by the Commission, 
respectively (the ``Future Spectrum''). The System 2 licensee will be 
eligible to apply for and use the first 210 kHz of Future Spectrum plus 
spectrum sufficient to account for Doppler frequency shift in the 
Future Spectrum (the ``Supplemental Spectrum'') to implement its non-
voice, non-geosynchronous mobile-satellite service system. The System 2 
licensee's application for and use of the Supplemental Spectrum is 
subject to the Commission's Rules and policies, such reasonable 
operating conditions as may be imposed by the Commission, and 
international spectrum coordination requirements. For so long as the 
System 2 licensee is permitted by the Government of France to operate 
in the 400.5517-400.5983 MHz band coordinated with the French system 
S80-1, the Supplemental Spectrum shall be reduced to an amount 
equivalent to 150 kHz of Future Spectrum plus spectrum sufficient to 
account for Doppler frequency shift in the Future Spectrum.
    (2) The System 2 licensee's priority to apply for and use the 
Supplemental Spectrum is conditioned on the System 2 licensee's 
compliance with the terms and conditions of its second processing round 
authorization, including, but not limited to, its system construction, 
launch and operation milestones, and any modifications thereto, and the 
Commission's Rules. The System 2 licensee's priority to apply for and 
use the Supplemental Spectrum shall automatically terminate upon the 
occurrence of any of the following events:
    (i) The System 2 licensee being permitted to operate in the 
Supplemental Spectrum;
    (ii) The expiration or revocation of the System 2 licensee's second 
processing round authorization;
    (iii) The discontinuance of use of the spectrum assigned to the 
System 2 licensee under its second processing round authorization; or
    (iv) The surrender of the System 2 licensee's second processing 
round authorization to the Commission.
    3. Section 25.201 is amended by adding the following definition, in 
alphabetical order, to read as follows:


Sec. 25.201  Definitions.

* * * * *
    Protection areas. The geographic regions on the surface of the 
Earth where United States Department of Defense (``DoD'') 
meteorological satellite systems or National Oceanic and Atmospheric 
Administration (``NOAA'') meteorological satellite systems, or both 
such systems, are receiving signals from low earth orbiting satellites.
* * * * *
    4. Add Secs. 25.259 and 25.260 to subpart C to read as follows:


Sec. 25.259  Time sharing between NOAA meteorological satellite systems 
and non-voice, non-geostationary satellite systems in the 137-138 MHz 
band.

    (a) A non-voice, non-geostationary mobile-satellite service system 
licensee (``NVNG licensee'') time-sharing spectrum in the 137-138 MHz 
frequency band shall not transmit signals into the ``protection areas'' 
of National Oceanic and Atmospheric Administration (``NOAA'') satellite 
systems. When calculating the protection areas for a NOAA satellite in 
the 137.333-137.367 MHz, 137.485-137.515 MHz, 137.605-137.635 MHz and 
137.753-137.787 MHz bands, a NVNG licensee shall use an earth station 
elevation angle of five degrees towards the NOAA satellite and will 
cease its transmissions prior to the NVNG licensee's service area, 
based on an elevation angle of zero degrees towards the NVNG licensee's 
satellite, overlapping the NOAA protection area. When calculating the 
protection areas for a NOAA satellite in the 137.025-137.175 MHz and 
137.825-138 MHz bands, a NVNG licensee shall use an earth station 
elevation angle of zero degrees, or less if reasonably necessary, 
towards the NOAA satellite and will cease its transmissions prior to 
the NVNG licensee's service area, based on an elevation angle of zero 
degrees towards the NVNG licensee's satellite, overlapping the NOAA 
protection area. A NVNG licensee is responsible for obtaining the 
necessary ephemeris data. This information shall be updated system-wide 
on at least a weekly basis. A NVNG licensee shall use an orbital 
propagator algorithm with an accuracy equal to or greater than the 
NORAD propagator used by NOAA.
    (b) A NVNG licensee time sharing spectrum in the 137-138 MHz band 
shall establish a 24-hour per day contact person and telephone number 
so that claims of harmful interference into NOAA earth station users 
and other operational issues can be reported and resolved 
expeditiously. This contact information shall be made available to NOAA 
or its designee. If the National Telecommunications and Information 
Administration (``NTIA'') notifies the Commission that NOAA is 
receiving unacceptable interference from a NVNG licensee, the 
Commission will require such NVNG licensee to terminate its interfering 
operations immediately unless it demonstrates to the Commission's 
reasonable satisfaction, and that of NTIA, that it is not responsible 
for causing harmful interference into the worldwide NOAA system. A NVNG 
licensee assumes the risk of any liability or damage that it and its 
directors, officers, employees, affiliates, agents and subcontractors 
may incur or suffer in connection with an interruption of its non-
voice, non-geostationary mobile-satellite service, in whole or in part, 
arising from or relating to its compliance or noncompliance with the 
requirements of this paragraph (b). The Commission will not hesitate to 
impose sanctions on a NVNG licensee time-sharing spectrum in the 137-
138 MHz band with NOAA, including monetary forfeitures and license 
revocations, when appropriate.
    (c) Each satellite in a NVNG licensee's system time-sharing 
spectrum with NOAA in the 137-138 MHz band shall automatically turn off 
and cease satellite transmissions if, after 72 consecutive hours, no 
reset signal is received from the NVNG licensee's gateway earth station 
and verified by the satellite. All satellites in such NVNG licensee's 
system shall be capable of instantaneous shutdown on any sub-band upon 
command from such NVNG licensee's gateway earth station.


Sec. 25.260  Time sharing between DoD meteorological satellite systems 
and non-voice, non-geostationary satellite systems in the 400.15-401 
MHz band.

    (a) A non-voice, non-geostationary mobile-satellite service system 
licensee (``NVNG licensee'') time-sharing spectrum in the 400.15-401.0 
MHz band shall not transmit signals into the ``protection areas'' of 
Department of Defense (``DoD''). When calculating the protection areas 
for a DoD satellite in the 400.15-401 MHz band, a NVNG licensee shall 
use an earth station elevation angle of five degrees towards the DoD 
satellite and will shut off its transmissions prior to the NVNG 
licensee's service area, based on an elevation angle of zero degrees 
towards the NVNG licensee's satellite, overlapping the DoD protection 
area. A NVNG licensee is responsible for obtaining the necessary 
ephemeris data. This information shall be updated system-wide at least 
once per week. A NVNG licensee shall use an orbital

[[Page 59297]]

propagator algorithm with an accuracy equal to or greater than the 
NORAD propagator used by DoD.
    (b) A NVNG licensee time sharing spectrum in the 400.15-401 MHz 
band shall establish a 24-hour per day contact person and telephone 
number so that claims of harmful interference into DoD earth station 
users and other operational issues can be reported and resolved 
expeditiously. This contact information shall be made available to DoD 
or its designee. If the National Telecommunications and Information 
Administration (``NTIA'') notifies the Commission that DoD is receiving 
unacceptable interference from a NVNG licensee, the Commission will 
require such NVNG licensee to terminate its interfering operations 
immediately unless it demonstrates to the Commission's reasonable 
satisfaction, and that of NTIA, that it is not responsible for causing 
harmful interference into the worldwide DoD system. A NVNG licensee 
assumes the risk of any liability or damage that it and its directors, 
officers, employees, affiliates, agents and subcontractors may incur or 
suffer in connection with an interruption of its non-voice, non-
geostationary mobile-satellite service, in whole or in part, arising 
from or relating to its compliance or noncompliance with the 
requirements of this paragraph (b). The Commission will not hesitate to 
impose sanctions on a NVNG licensee time-sharing spectrum in the 
400.15-401 MHz band with DoD, including monetary forfeitures and 
license revocations, when appropriate.
    (c) Each satellite in a NVNG licensee's system time-sharing 
spectrum with DoD in the 400.15-401 MHz band shall automatically turn 
off and cease satellite transmissions if, after 72 consecutive hours, 
no reset signal is received from the NVNG licensee's gateway earth 
station and verified by the satellite. All satellites in such NVNG 
licensee's system shall be capable of instantaneous shutdown on any 
sub-band upon command from such NVNG licensee's gateway earth station.
    (d) Initially, a NVNG licensee time-sharing spectrum with DoD in 
the 400.15-401 MHz band shall be able to change the frequency on which 
its system satellites are operating within 125 minutes of receiving 
notification from a DoD required frequency change in the 400.15-401 MHz 
band. Thereafter, when a NVNG licensee constructs additional gateway 
earth stations located outside of North and South America, it shall use 
its best efforts to decrease to 90 minutes the time required to 
implement a DoD required frequency change. A NVNG licensee promptly 
shall notify the Commission and NTIA of any decrease in the time it 
requires to implement a DoD required frequency change.
    (e) Once a NVNG licensee time-sharing spectrum with DoD in the 
400.15-401 MHz band demonstrates to DoD that it is capable of 
implementing a DoD required frequency change within the time required 
under paragraph (d) of this section, thereafter, such NVNG licensee 
shall demonstrate its capability to implement a DoD required frequency 
change only once per year at the instruction of DoD. Such 
demonstrations shall occur during off-peak hours, as determined by the 
NVNG licensee, unless otherwise agreed by the NVNG licensee and DoD. 
Such NVNG licensee will coordinate with DoD in establishing a plan for 
such a demonstration. In the event that a NVNG licensee fails to 
demonstrate to DoD that it is capable of implementing a DoD required 
frequency change in accordance with a demonstration plan established by 
DoD and the NVNG licensee, upon the Commission's receipt of a written 
notification from NTIA describing such failure, the Commission shall 
impose additional conditions or requirements on the NVNG licensee's 
authorization as may be necessary to protect DoD operations in the 
400.15-401 MHz downlink band until the Commission is notified by NTIA 
that the NVNG licensee has successfully demonstrated its ability to 
implement a DoD required frequency change. Such additional conditions 
or requirements may include, but are not limited to, requiring such 
NVNG licensee immediately to terminate its operations interfering with 
the DoD system.

[FR Doc. 97-28995 Filed 10-31-97; 8:45 am]
BILLING CODE 6712-01-P