New Satellite Two-Degree Spacing Rules Seen as 'Middle Ground' in Contentious Issue

The FCC's new two-degree spacing rules for satellites are "a middle ground" between extremes that had been staked out by different parties in the satellite industry, said Jose Albuquerque, chief of the International Bureau's satellite division, Thursday. The Part 25 Report and Order passed 5-0 Thursday follows a similar set of Part 25 rules changes approved in 2013 and was aimed at relieving regulatory burdens on applicants and deterring spectrum warehousing, IB Chief Mindel De La Torre said. The FCC will undertake a rulemaking in the future specifically on the two-degree spacing changes to assess their impact, Commissioner Jessica Rosenworcel said.

The two-degree spacing issue had seen the bulk of Part 25 overhaul-related filings and lobbying in recent months in docket 12-267. Intelsat had pushed repeatedly for eliminating two-degree spacing rules altogether, arguing they made the U.S. uncompetitive compared with better alternatives such as ITU filing priority (see 1511180052). In a statement Thursday, Intelsat said it "commends the FCC for examining and revising its satellite licensing rules. The steps the agency has taken to modernize its rules will improve the licensing process for satellite operators that elect to file satellite license applications through the United States.” Meanwhile, numerous satellite companies had pushed for maintaining the status quo, saying only Intelsat would benefit from the rules' elimination (see 1508210020). An executive at one of those companies didn't comment.

Demand is growing for satellite services to small-user equipment, such as those involving moving vehicles, that require satellites operating at higher power, said Clay DeCell, IB policy branch attorney adviser. Rather than requiring satellites operating at higher power to power down when a neighboring satellite comes into the orbital arc two degrees away, the new rules let those previously coordinated power levels remain unchanged for the incumbent satellite while also letting in new satellites by allowing operation at the baseline two-degree power levels and by updating those baseline levels and extending them to other frequency bands, DeCell said.

Another particularly significant Part 25 rules change is a new licensing process that coordinates a preliminary FCC application with the ITU before a full application goes to the FCC, DeCell said. Currently, geostationary fixed satellite service applicants have to disclose their designs with more detail than is needed for international coordination, he said. Under the FCC's new two-step application process, a satellite operator's FCC coordination request is forwarded to the ITU, thus establishing a place for it in the FCC licensing queue and giving the applicant two years to file a completed application, DeCell said. Applicants also must file a $500,000 bond at that time, he said.

Another major Part 25 change is a simplification of the milestone policy, eliminating the need for demonstrating proof of such interim milestones as signing contracts, completing designs and construction, DeCell said. Now operators just need to demonstrate the final milestone -- launch and operation, he said. Along with that comes an escalating bond requirement with an increasing financial liability the longer an applicant holds a spectrum license without deploying the satellite system, DeCell said. The FCC said for geostationary satellites the bond goes from $1 million to $3 million over five years, while for non-GSO satellites the bond increases from $1 million to $5 million over six years.

The order "will amend, clarify or eliminate numerous unnecessary or outmoded rule provisions, reducing the regulatory burden on the satellite industry and allowing companies to bring new and innovative services to U.S. consumers more quickly and efficiently," the Satellite Industry Association said in a statement Thursday. The group didn't publicly state a position on two-degree spacing. Commissioner Ajit Pai said he was pleased the order goes beyond what he had first suggested last year of making interim milestones optional, as well as streamlining the licensing of small earth stations by letting operators increase the number of stations under a blanket license without seeking authorization first.