*Pages 1--7 from þÿ* 1 1 8th Satel Conseil Symposium 8th Satel Conseil Symposium Sharing Orbital and Spectrum Sharing Orbital and Spectrum Resources Resources Thomas S. Tycz Thomas S. Tycz Chief Chief Satellite Division Satellite Division Federal Communications Commission Federal Communications Commission December 10,2002 December 10,2002 1 2 2 The Rules are Changing The Rules are Changing Spectrum Policy Reform Spectrum Policy Reform – – Increasing service demand straining spectrum policies Increasing service demand straining spectrum policies – – Technological advances enable spectrum policy changes Technological advances enable spectrum policy changes ITU Rule Changes ITU Rule Changes – – Different technologies sharing band Different technologies sharing band NGSO / GSO systems NGSO / GSO systems – – Time reduced to bring systems into use Time reduced to bring systems into use – – ITU cost recovery ITU cost recovery – – Due Diligence Requirements Due Diligence Requirements WTO Requirements WTO Requirements – – Equal access to markets Equal access to markets Corporate Developments Corporate Developments – – Privatized International Operators Privatized International Operators – – International mergers International mergers – – Filings through multiple administrations Filings through multiple administrations 2 3 3 International Implications for the Regulator International Implications for the Regulator WTO obligations in conjunction with ITU First Come First WTO obligations in conjunction with ITU First Come First Served Filing procedures impact domestic assignment Served Filing procedures impact domestic assignment procedures. procedures. – – Orbital locations may not be available in processing round Orbital locations may not be available in processing round – – US Process is slow to meet new environment US Process is slow to meet new environment Satellite companies filing through multiple Satellite companies filing through multiple administrations administrations – – Definition of domestic company blurred Definition of domestic company blurred – – Flag of convenience vs. flag of administration Flag of convenience vs. flag of administration Shortened Due Diligence Cycle further speeds process Shortened Due Diligence Cycle further speeds process – – Faster licensing required Faster licensing required – – Construction Milestone Requirements Strengthened Construction Milestone Requirements Strengthened 3 4 4 Licensing Process Needs Reform Licensing Process Needs Reform Current Processing Round Procedure Current Processing Round Procedure Inadequate to meet current needs Inadequate to meet current needs – – Delays in process impose real economic Delays in process impose real economic costs on customers and operators costs on customers and operators – – Time frames required create difficulty in Time frames required create difficulty in meeting ITU requirements meeting ITU requirements – – Keeps spectrum unused, inefficient spectrum Keeps spectrum unused, inefficient spectrum usage usage – – Not compatible with new satellite system Not compatible with new satellite system designs designs 4 5 5 Licensing Process in Transition Licensing Process in Transition Spectrum Policy Task Force Report Spectrum Policy Task Force Report – – No single regulatory model applies to all spectrum No single regulatory model applies to all spectrum – – Models based on clear definitions of interference rights and Models based on clear definitions of interference rights and responsibilities of spectrum users responsibilities of spectrum users – – Migrate from command and control to market oriented exclusive Migrate from command and control to market oriented exclusive rights models rights models Space Station Streamlining Proposed Rule Making Space Station Streamlining Proposed Rule Making – – Offered alternative licensing methods Offered alternative licensing methods First Come First Come – – First Served: First Served: – – Consider all applications in the order they are filed Consider all applications in the order they are filed – – Grant each qualified application that is not mutually exclusive Grant each qualified application that is not mutually exclusive with a with a previous license. previous license. Streamline Processing Rounds: Streamline Processing Rounds: – – Divide available spectrum / orbit resource among qualified appli Divide available spectrum / orbit resource among qualified applicants. cants. – – Can one procedure work with all types of networks? Can one procedure work with all types of networks? Does one Does one size fit all? size fit all? 5 6 6 Licensing Process in Transition Licensing Process in Transition – – Review possible enhancing procedures Review possible enhancing procedures Review License transfer rules Review License transfer rules – – “Trafficking”: “Trafficking”: – – FCC currently prohibits the sale of a "bare license" for FCC currently prohibits the sale of a "bare license" for profit. profit. – – Possible barrier in transferring a license to another party Possible barrier in transferring a license to another party more able to provide timely service. more able to provide timely service. Consider restrictions to limit speculation and excessive Consider restrictions to limit speculation and excessive spectrum acquisition: spectrum acquisition: – – Limit number of pending satellite applications for one Limit number of pending satellite applications for one applicant applicant – – Ownership attribution rules Ownership attribution rules – – License sale contingent on buyer meeting original License sale contingent on buyer meeting original milestones milestones 6 7 7 Potential Outcome Potential Outcome Faster access to US market for all Faster access to US market for all operators operators International and domestic rule International and domestic rule convergence convergence Domestic and international operators Domestic and international operators on an equal footing on an equal footing Faster decisions should clear the Faster decisions should clear the International filing fog International filing fog 7