The FCC should dismiss petitions from EchoStar and SES Americom c...
The FCC should dismiss petitions from EchoStar and SES Americom concerning the proposed transaction between Intelsat and Loral, and instead grant the assignment applications, said Loral and Intelsat. SES didn’t ask the Commission to deny the application, but to…
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condition it so Intelsat won’t be able to offer bundled services to include international and domestic capacity (CD Sept 16 p9). EchoStar said the lack of an Intelsat IPO raises issues that should result in the denial of the application (CD Sept 19 p8). In separate filings, Intelsat and Loral said neither petition provided any evidence of their claims. SES’s proposals “would serve SES’s self-interest in protecting its ‘preeminent’ position in the provision of service to the Federal [Govt.] by hamstringing a potential new, stronger competitor -- they would not serve the public interest… SES mischaracterizes market realities, misrepresents the availability of international market access opportunities, and underestimates the ability of the Federal [Govt.] to procure services on competitive terms and conditions,” Intelsat said. The company said SES mischaracterizes certain routes as dominated by Intelsat, when in reality, those are “routes where SES and other competitors have made a commercial decision not to provide service.” Loral said EchoStar wants the application denied so its potential bid for the assets can be considered by the Commission, but the Commission is expressly restricted from doing that: “To consider the assignment at issue, not on its own merits, but in comparison with an alternative, hypothetical transaction that is not before the Commission for approval would be contrary to the [Communications] Act and to the Commission’s precedent.” As far as EchoStar’s concerns about Intelsat’s IPO, the latter said those concerns should be a part of a different proceeding: “Moreover, contrary to EchoStar’s claims, Intelsat is in full compliance with the ORBIT Act.”