Attachment ex parte

ex parte

Ex PARTE PRESENTATION NOTIFICATION LETTER submitted by Lockheed Martin Corp.

ex parte

2004-06-07

This document pretains to SAT-ASG-20030728-00139 for Assignment on a Satellite Space Stations filing.

IBFS_SATASG2003072800139_379475

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                                                                                              kzachem@wbklaw.com



                                                       June 1,2004            RECEIVED
              Ms. Marlene H. Dortch                                            JUN - 1 2004
              Secretary
              Federal Communications Commission                          EDERAL COMMUNICATIONS COMMlSlOrd

              445 - 12th Street, SW                                           OFFICE OF THE SECRETARY
              Room TW-A325
              Washington, DC 20554

                            Re:    Loral/Intelsat Order - File Nos. SAT-ASG-20030728-00138,
                                   SAT-ASG-20030728-00139- Notice of Ex Parte Presentation                      ,




              Dear Ms. Dortch:

                     On Friday, May 28,2004, representatives of Lockheed Martin Corporation (Jennifer A.
              Warren, Senior Director, Trade and Regulatory Affairs, and the undersigned), met with Sheryl J.
              Wilkerson, Legal Advisor to Chairman Michael K. Powell, and Bethany Smocer, intern to Sheryl
              Wilkerson, Office of Chairman Michael K. Powell.

                     We summarized the FCC’s statutory authority under the ORBIT Act to grant, in the first
              instance, and renew an STA for “additional services” as set forth in Attachment I hereto.

                     If you have any questions, please contact the undersigned.




              cc:    Sheryl J. Wilkerson
                     Bethany Smocer


                                                                           ATTACHMKNT I

THE FCC HAS STATUTORY AUTHORITY UNDER THE ORBIT ACT TO GRANT
          AND RENEW AN STA FOR “ADDITIONAL SERVICES”


 SEC. 602. INCENTIVES; LIMITATION ON EXPANSION PENDING
 PRIVATIZATION.

            (a) LIMITATION. -- [ 1) Until INTELSAT, Inmarsat, and their
            successors or separate entities are privatized in accordance with
            the requirements of this title, INTELSAT, Inmarsat and their
            successor or separate entities respectively, shall not be permitted to
            provide additional services. [2] The Commission shall take all
            necessary measures to implement this requirement, including
            denial by the Commission of licensing for such services.

 Section 602(a) of ORBIT addresses the conditions under which Intelsat can offer “adtionz i
 services.” That section requires only that Intelsat be (1) “privatized” and (2) “in accordance
 with the requirements of this title.”

 Section 621(1) of ORBIT requires “privatization” to have occurred as of April 1,2001
 (extended to July 18,2001), and the FCC already has found Intelsat to be privatized. See
 Intelsat Extension Order 16 FCC Rcd 18185 7 1 (2001); FCC Report to Congress, 18 FCC
 Rcd 12525,12527 (2003).

    e       “Privatization” requires independence, corporatization and elimination of
            privileges and immunities, but not an PO. As the FCC confirmed (Intelsat
            Compliance Order, 16 FCC Rcd 12280,12303 77 72,76 (2001)), the P O
            requirement is a condition subsequent to the privatization date.

     e      The provision of additional services does not require Intelsat to be “fully
            privatized,” that is, having had an P O . “Fully privatized” is a separate statutory
            term found in Sections 2 and 681(a)(8) of ORBIT and is not used in Section
            602(a).

 The phrase “in accordance with the requirements of this title” also should not be read to
 impose obligations earlier than required by the Act. ORBIT requires Intelsat to take a series
 of steps, not immediately or all at once. The first step is privatization. Then, Section 621(5)
 contemplates that a successor entity, already privatized, conduct an P O . Because the P O
 date has been extended until June 30,2005 (which the FCC has statutory authority to extend
 until December 2005), Intelsat will continue to be in compliance (and thus be “in accordance
 with”) “the requirements of this title” even following the September 13th expiration date of
 the STA.

 Congress, the courts and the Commission all treat “in accordance with” and “consistent with”
 as interchangeable. Therefore, it follows that that the phrase “in accordance with” -just like
 the phrase “consistent with” - confers the FCC with flexibility and discretion when



Document Created: 2004-06-08 15:19:40
Document Modified: 2004-06-08 15:19:40

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