Tim Warren

The FCC’s proposal to block LightSquared’s ability to provide terrestrial service would violate the company’s constitutional rights, LightSquared said in an FCC filing Friday. The agency has said it plans to rescind the waiver and suspend the company’s underlying ancillary terrestrial component. Sprint Nextel also said Friday it will terminate its network sharing agreement with LightSquared.

The government’s delay in releasing a report on export control reforms continues to prevent movement on legislation that would relax regulation of satellite components, House Foreign Affairs Committee staffer David Fite told the Satellite 2012 conference late Wednesday. HR-3288, introduced last year by House Foreign Affairs Ranking Member Howard Berman, D-Calif. (CD Nov 3 p13), remains in limbo as a result of the slowness, Fite said. The bill would give the Executive Office of the President authority to remove commercial satellites and components from a munitions list closely regulated by the State Department.

The push to use terrestrially the S-band and other mobile satellite services spectrum around the world may be a precursor for efforts in other bands, said Rupert Pearce, CEO of Inmarsat. “The risk is: Is this the thin edge of the wedge,” he said. “As pressure builds to free up spectrum, MSS bands look like really low hanging fruit” due to the number of consumers per bit, especially compared to terrestrial service. It will be important for the industry to work together to convince regulators of the services’ importance, said Pearce.

The satellite industry made some short-term regulatory strides this year at the World Radiocommunication Conference, though problems remain on the horizon, said Romain Bausch, CEO of SES. Growing concern from smaller nations over their access to spectrum and orbital slots may need to be addressed in coming years, he said Tuesday at the Satellite 2012 conference.

FCC cancellation of LightSquared’s ancillary terrestrial component (ATC) authorization won’t be the end of the LightSquared saga, said Executive Vice President Jeff Carlisle, speaking at the Satellite 2012 conference Monday. The FCC has proposed pulling LightSquared’s ATC authorization and an associated waiver that would have allowed the company to sell terrestrial service without including satellite component. Comments on the proposals are due Friday.

Congressional authorization for the FCC to begin incentive auctions seems unlikely to affect fixed satellite service spectrum, said industry executives. There’s more potential for action within the mobile satellite service spectrum band, though the FCC’s plans for that spectrum remain unclear, they said. The spectrum bill (CD Feb 24 p10) gives the agency very broad authority to auction broadcast and other spectrum. The general incentive auction ability is limited to where “the Commission conducts a reverse auction to determine the amount of compensation that licensees would accept in return for voluntarily relinquishing spectrum usage rights” and “at least two competing licensees participate in the reverse auction.”

Congressional authorization for the FCC to begin incentive auctions seems unlikely to affect fixed satellite service spectrum, said industry executives. There’s more potential for action within the mobile satellite service spectrum band, though the FCC’s plans for that spectrum remain unclear, they said. The spectrum bill (CD Feb 24 p10) gives the agency very broad authority to auction broadcast and other spectrum. The general incentive auction ability is limited to where “the Commission conducts a reverse auction to determine the amount of compensation that licensees would accept in return for voluntarily relinquishing spectrum usage rights” and “at least two competing licensees participate in the reverse auction."

FCC plans to consider a rulemaking notice (CD March 1 p9) this month on flexible terrestrial use of 2 GHz mobile satellite service spectrum seem to complicate Dish Network’s plans for using that spectrum, said analysts. While there is disagreement over the actual impact to Dish, it may give the company some more regulatory certainty in terms of FCC expectations, they said. Dish is seeking FCC approval to take over 2 GHz licenses from DBSD and TerreStar and use the spectrum for terrestrial service through waivers of MSS rules.

A key definition within the new spectrum law has raised questions among communications lawyers about possible drafting errors and/or congressional intent, the lawyers said. The concerns are with the definition within the bill of “reverse auction,” which seemed to limit the authority to only broadcast spectrum, said the lawyers. The confusion is largely due to a misunderstanding of legislation and the bill is meant to allow FCC interpretation, said House and Senate aides.

LightSquared’s failure to satisfy the FCC’s requirements for the company to begin terrestrial service makes LightSquared’s request for a declaratory ruling moot, said Deere in comments at the FCC on the request (http://xrl.us/bmwc3o). LightSquared asked the agency to issue a declaratory ruling spelling out the legal protections afforded to GPS. That request was made before the FCC proposed to pull LightSquared’s terrestrial authorization, which means it’s unnecessary for the FCC to take up the issue, said Deere. Other filers urged the FCC to wait for a Comptroller General receivers report before taking on receiver standards.