Attachment DA 05 667

DA 05 667

ORDER submitted by FCC,IB

DA 05 667

2005-03-14

This document pretains to SAT-STA-20050228-00052 for Special Temporal Authority on a Satellite Space Stations filing.

IBFS_SATSTA2005022800052_421890

                                Federal Communications Commission                         Da 0s—667

                                                    Before the
                                       Federal Communications Commission
                                             Washington, D.C. 20554
    In the mater of                                     )
                                                        )
    Intlsat North America, LC                           )
    Request for Extension of                            )     File No. SAT—STA—20050228—00052
    Special Temporary Authority                         )

                                                   orper

     Adopted:. March 14, 2005                                     Released: March 14, 2005
    By the Chiet, Satelite Division:
           1.      n this Order, we grant,pursuant to Section 25.120(b)(4)oour rules, a requestfiled by
Intelsat North America, LLC ("Intelsa") for a 30—day extension of a grant of Special Temporary
Authority (‘STA") that permitsIntelsat to provide "additional services,"as defined in the Open—Market
Rearganization for the Betterment of Interational Telecommunications Act (°ORBIT Act‘).. Grant of
the extension request will maintain the status quo ofservice to certain Intelsatcustomers while the
Commission considers pending maters directly relate to Imelsat‘s provision of addtional services.
          2.      The STA was granted to ntelsat ithe LoralZimelsat Order; and allows Intelsatto
continue providing "additional services" to former customers of LoralSatellt, Inc. (Debtor—in—
Possession) and Loral SpaceCom Corporation (Debtor—in—Possession)(callctively "Loral"), acquired by
Intelsat as a result of the Loral/Intelsat assignment transaction." The Commission found that requiring
Hntelsat toterminate provision of "additional services" to customers it had acquired from Loral would
cause costly disruption of service, and would likely leave customers in remote locations without an
alterative provider for these services. Thus, he Bureau granted Intlsatan STA for 180 days,to
September 13, 2004, to permit Intlsat to continue providing "additional services" to the former Loral
customers. The Bureau‘s STA grant did not extend to additionalservices that were not previously
s orny2s.2000).
* inclsaNorth America,LLC, Requestfor Extension ofTemporary Authority ("SFA Extension Request"), File No:
SAT—STA—20050228—0082 (filed Febrwary 28, 2005). Intesat also requests that we vacate porions of the order
granting the STA asitreltesto its provsion of additinal services under the ORBT Act. We deny thatrequest. As
discussed berein,issues concerning Intesa‘s provision of additonalsrvices are pending before the Commission
and will be properly addvessed by the Commission thcontextof those proceedings
* Contress amended theStelite Communications Act of 1962, 47 U.S.C.$701 etseq. (Satelite AcQ by adopting
the ORBIT Act, Pub. L. No. 106—180, 114 Stat 48 (2000), codifed at 47 U.S.C. § 761 etsep.(berein, ORBTT Act
with reference to the stautory section numbersof the Satelite Act, as amended by the ORBIT Acd. ‘Under the
ORBIT Act, additonal services, for Inelat,are defined as directto—home or direct broadcastsrelite video
services, orservices ithe a or V bands. See ORBTT Act as amended. $ 681(@(12)(B)«
*      Loral Satelte, Ic. (Debtorin—Possession) and Lorel SpaceCom Corporation (Debtor—in—Pomession), and
Antelsat North America, LLC, Appliationfor Consent o AssignmentsofSpace Sution Authorizations and Pettion
Jor Decluratory Ruling Under Setion 310(b¥4) of the Communications Act of 1934, as Amended, Order and
Authorization, 19 FCC Red 2404 2004) (‘Loreifintesar Order")
* LoraUAnicsat Order,19 FCC Red at2430.


                                   Federal Communications Commission                            pa os—ee?

 provided by Loral, and did not authorize Intelsat to provide additional services to any new customers ®
 \We subsequently granted Intelsa‘s equest for extension ofthe STA for an aditional 180 days, until
 March 14, 2005." We found thatan extension was warranted to maintain the status quo of service to
 customers while the Commission reviewed the Applicationfor Review of the LoralZnrelsat Order fled
 by SES AMERICOM, Inc. which raised objectionstothe grant of the STA as well as the approval ofthe
 transactionas a whole"
          3.     We find that granting Intelsat an addiional extension is warranted at this time. Under the
 ORBIT Act, Itelsat may not provide addtionalservices unt meets certain privatization requirements
 under provisions of Section 621, as amended." Section 621 requires that the Commissionfind that
 Intelsathas achieved full privatization by (1) conducting an TPO to substantilly diutethe ageregate
 ownership of ts former Signatories;" or in th altemative,(2) certifying to the Commission that(2)it has
 achieved substantial dilution othe agereeate amount of financialinterest by former Signatories;(b) no
 intergovemmental organization has any ownership interest in Intelsat; and (e) any former Signatories that
 retain a financial interesin Intlsatdo not possess together, o individually, effective control othe
 companies."" On December 23, 2004, in light of the Commission‘s approval othe transfer of ontrol of
 Intlsat to Zeus Holdings Limited, a private equity roup," Intelsatfiled a Certification and Petiion for
 Declartory Ruling requesting that the Commission fid it has complied with Section 621 ofh ORBIT
 Act.

         4.      Both the Application for Review of the LoralIntelsatOrder and Intelsat‘s Cenifieation
and related Periion for Declaratory Ruling pursuant to Section 621(SXF) of the ORBIT Actare pending
before the Commission. These pending matiers are directly reated to the ssue of Intelsat‘s status with
respect to provision of "additional services" under the ORBT Act. We find that good cause exists to
extend the STA in order to ensure that customers are not adversely impacted during the regulatory review
process on matters relted to these pending matters. Thus, we find that it i reasonable to maintain the
status que, pending the Commission‘s ruling on the matter related to Intelsat‘s legalstatus under he
ORBIT Act to provide "additionalservices." Our decision to extend the STA is without prejudice to the
Commission‘s esolution of reated issues pending in the Application for Review of the Loral/imelsar
Order. nd Inelsat‘s Pettion for Declaratory Ruling and ORBT Act Certification. Accordingly, we
grant Intelsa‘s S7A Extersion Requestfor an additional30 days, from March 14, 2004 to April 13, 2005,
oras othervise directed by the Commission

* LoreUMntesat Order, 19 FCC Red at2430.
* see Inelat North America, LLC Requestfor Etension ofSpecial Tenporary Auhority, Order, DA 04—2445, rel.
Juby 30, 2004
" SES Americom, Inc. ApplicationforReview, ile Nos. SAT—ASG—20030728—0013800139 (March 12, 2004
* ORBIT Act as amended, § 621
" ORBIT Actas amended, 68 6210) and 621G)(A)0)
" See ORBT Act, asamended. 621(SX(P.
: See ntesat, Lad. Transferor, and Zeus Holdings Linied,Transferee, Consolidated Aplicatinfor Consent to
Transfer Conrol of Holders of Tite It and Tite lt Axthorizations and Pettion for Declaratory Rating under
Sections 310 ofhe Communications Act of1934, as anended, Order and Aubborization,IB Docket No.04—366, DA
04—4034 (In‘l Bur. el. Dec. 22, 2004Ematum, rel. an 28, 005. See alo, Satllte Communications Services
Information, Actions Taken,Public Notice, Report No. SES—00682, Feb 2, 2005.
® See Inelsat, Li. Files Pettion for Declaratory Ruling and Certfication Parsuant to Section 621GT) of the
Oven—Market Reorganization for the Beterment of Inermtional Telccommunications Act,as amended CORBIT
Act), Public Notie, DA 05—88, Janvary 14, 2005. The pleating cyele has closed and the Commission is currenty
reviewingtherecord in that proceeding


                              Federal Communications Commission                       wa os—6e7

         5.      Accordingly, TT JS ORDERED, pursuant to Sections 4), 303()and 309 (D of the
Communications Act, 47 U.S.C. §§ 1540), 303(and 309(and Section 25.120(b)(4)of the Commission
rules, 47 CR. § 25.120(b)(4),thatthe Requestfor Extension of Special Temporary Authority filed by
Intelsat North America, LLC on Rebrusry 28, 2008 is GRANTED to the extent specified herein.

                                     FEDERAL COMMUNICATIONS COMMISSION

                                 %M ST“?SX
                                     Thomas S. Tyc
                                     ChietSatelite Division
                                     Interational Bureau



Document Created: 2005-03-14 10:50:10
Document Modified: 2005-03-14 10:50:10

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