Since then, the FCC has taken charge of licensing and regulating all privately-owned US communications satellites and has developed an elaborate set of regulations, rules, and policies to guide this effort. A license from the FCC to operate a satellite comprises a frequency assignment and also, in the case of geostationary satellites, an orbital location assignment. The FCC reserves the right to request the satellite operator to move the satellite to a different orbital location, a right the FCC has exercised on occasion. The license only allows for a temporary right to use frequency and orbit resources. Restrictions apply to the transfer of a license, the primary objective here being to prevent trafficking in licenses.
Spectrum availability is a severe constraint, however.
Although the FCC continues to open up new spectrum for satellite communications, the demand appears to exceed supply. To promote efficiency and fairness in the licensing proceedings, the FCC processes satellite applications in groups. Of these criteria, the financial qualification requirement has been the most controversial and is of particular interest to investors in, or lenders to, entrepreneurial ventures. This usually means that the applicant must show, at the time the application is filed, current ability to finance the construction, launch, and one-year operation of the proposed satellite system. The FCC's rationale for imposing this tough standard is that forcing applicants to show that they have the funds to build and launch their systems prevents warehousing of valuable frequencies and orbital resources.