The FCC International Bureau denied Intelsat’s request to defer n...
The FCC International Bureau denied Intelsat’s request to defer notification of certain Loral customers of Intelsat’s “additional services” restriction. The FCC authorized Intelsat’s purchase of certain assets from Loral Feb. 11, but conditioned the authorization with special temporary authority…
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(STA) for “additional services” (DTH, DBS, Ka- or V-band services) due to an ORBIT Act restriction. The FCC said Intelsat would have to notify those customers within 30 days of the acquisition’s completion that it could only provide “additional services” up to 180 days, at which time the company would have to terminate the services until completing its IPO. The notification deadline was Fri. Intelsat argued the delay would serve public interest, rather than causing confusion, conflicting with the bureau’s reason for granting the STA and disrupting the customer base and anticipated revenue. The bureau said Intelsat also claimed “the issues raised on review have created legal uncertainty regarding the duration of Intelsat’s authority to provide additional services,” and notification should be delayed at least until the Commission resolved legal challenges. The bureau said it wasn’t convinced. While Intelsat said the bureau granted the STA for continuity of service, the bureau said the STA was meant to provide customers “an orderly transition” and “adequate time in which to consider alternative service providers.” Disclosure of the information will allow customers to “make informed decisions as to the need to transition… to avoid disruption in service to their customers,” the Bureau said. If Intelsat wants to alert customers that there are challenges against the order and that the STA ruling could change, it may do so, the bureau said, but Intelsat must also tell customers its STA currently ends Sept. 13. The bureau said its order did give Intelsat the option of delaying the completion of the transaction until it conducted its IPO. A bill has been introduced in the Senate that would extend the company’s IPO deadline to June 30, 2006 (CD April 13 p8).