VISIONSTAR WANTS TO TRANSFER KA-BAND LICENSE TO ECHOSTAR
EchoStar could receive valuable Ka-band slot over continental U.S. if FCC approves request from VisionStar to transfer its Ka- band satellite slot to company, VisionStar said in Dec. 15 filing at agency. If Commission agrees, VisionStar/EchoStar partnership would take control of satellite licenses at 113 degrees W, directly over continental U.S. Commission granted VisionStar license for slot in May 1997 in first round of Ka-band allocations.
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EchoStar spokesman confirmed reports DBS operator would take control of slot if license were transferred. He didn’t say what EchoStar planned to do with additional slot. “Right now we aren’t commenting any further than what the filing said,” spokesman said. Ka-band slots have become much more valuable because of scarcity of spectrum (CD May 23 p5). One industry official said lone slot could be “worth hundreds of millions of dollars” because of high demand. EchoStar and filing didn’t say why VisionStar was making transfer at this time or how much money EchoStar would pay. VisionStar, which had been using N.Y. office as hq, was unavailable for comment and its phone number had been disconnected.
Decision by VisionStar isn’t surprising considering none of companies that received first Ka-band licenses has been able to launch spacecraft and Commission is being pressured by other satellite companies to rescind allocations if they aren’t being used. Other companies with slots have been accused of warehousing. FCC revoked 4 licenses, including 2 of PanAmSat, Morning Star and NetSat28 in June for failing to meet milestones (CD June 28 p6). Each of companies since has asked Commission to rescind order. Attorney for PanAmSat said company would have no comment on VisionStar filing until he had chance to review document.
Like others who had licenses suspended, VisionStar had asked FCC for extension because of delays in construction milestones and what company called “lack of clarity” from Commission on spectrum and technical issues, filing said. VisionStar had signed $250 million contract with Orbital Sciences to build 2 Ka-band satellites, industry source said. Company had planned “backbone” satellite service to terrestrial wireless service and terrestrial hard-wired broadband operators, FCC filing said. Project never got off ground because VisionStar ran into problems raising money for construction, Orbital spokesman said. “We do have a contract, but we haven’t talked to them for a long time. If they are successful in raising money, we will be happy to build a satellite for them. We entered a contract with them because when someone comes to you with an orbital slot over U.S., that gives them instant credibility.”