ITSO Takes Sec. 316 Route, Again Seeks Conditions on Intelsat
ITSO took the FCC up on an invitation to petition for conditions on certain Intelsat satellite licenses under Sec. 316 of the Communications Act -- rather than in the now- closed Intelsat/PanAmSat merger proceeding. Late Mon. the 148-state international satellite organization filed a lengthy petition at the FCC, restating concerns raised during the PanAmSat acquisition and calling for Commission and U.S. action. A vestige of the intergovernmental Intelsat charged with oversight of Intelsat’s public service commitments, ITSO wants “modifications” to Intelsat “common heritage” satellite licenses, it said. That involves around 23 slots held by the operator when it privatized in 2001.
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As primary notifying administration for the old Intelsat assets, the U.S. must ensure Intelsat meets public service commitments it made when going private, ITSO’s complaint said. The U.S. commitment to serve as a “trustee” of Intelsat’s common heritage orbital locations is “as binding on the Commission as on any executive branch department,” ITSO said.
ITSO wants Intelsat FCC licenses “linked” to connectivity commitments it made upon privatization, it said. The group also wants any potential successor to Intelsat, and any other satellite operator using Intelsat satellites, to be bound to the same promises, it said. Specifically, ITSO wants the FCC to make Intelsat place a lien, letter of credit or a 3rd-party guarantee on certain satellites to ensure insulation of global connectivity commitments from bankruptcy proceedings should Intelsat ever go under, it said.
The Commission should require Intelsat to place liens on enough common heritage satellites so “ITSO can obtain control of, and finance replacements for,” at least 5 spacecraft, “if conditions warrant such actions,” the group said. By ITSO’s estimate, at least 5 satellites are needed to ensure global connectivity -- one in each of 3 ocean regions and 2 at the poles. ITSO will elaborate for the Commission “the detailed elements of this proposal” at a later date, it said.
Intelsat views ITSO’s petition as “more of the same,” said Gen. Counsel Phillip Spector. The group’s suggestions, largely hinging as they do on a bankrupt Intelsat, “are not rooted in reality and have no merit,” Spector said: “Intelsat will respond in due course at the FCC.”
“Procedurally, this is a more appropriate vehicle [for ITSO’s concerns] than the merger was,” said an FCC official. But Commission action may be slow and it won’t be unilateral due to the foreign policy issues involved, the official said. The 8th floor likely will take cues from the State Dept. on responding to ITSO’s requests, the FCC official said.
Remarks in the recent Intelsat/PanAmSat merger order were similar: “The Commission could consider… a request by ITSO… if advised by the U.S. Department of State that such action would promote the provisions of the ITSO Agreement and U.S. fulfilment of obligations under the ITSO Agreement. Any such relief may focus on actions that would assist Intelsat in fulfilling the core principles in the ITSO Agreement.” Calls to the State Dept. weren’t returned by our deadline.