The FCC issued a notice of inquiry and...
The FCC issued a notice of inquiry and is seeking comment on whether incumbent satellite operators are operating in ways that inhibit competition. The commission seeks information on whether fixed satellite service providers that have vertically integrated are engaging in…
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vertical foreclosure “or other conduct that has harmed consumers of satellite communication services,” it said in the NOI (http://bit.ly/16Q5q6T). The NOI stemmed from allegations among some satellite operators in the 11th Open Market Reorganization for the Betterment of International Telecommunications Act report that Intelsat has become vertically integrated and is stifling competition from its former resellers (CD May 9 p3). The FCC said it wants commenters to help it address gaps in service, older replacement satellites, license extensions, and underutilized satellites. For commenters claiming that harmful foreclosure has occurred, commenters should detail factors like “the time period the allegations cover, the geographic routes involved, and the amount and type of space segment capacity involved,” it said. The questions are aimed at figuring out how to strike a balance “between a satellite operator’s need for flexibility in managing its fleet of space stations and the public interest benefits of protecting against warehousing,” it said. Comments are due 30 days after publication in the Federal Register, with replies due 60 days after that date. The FCC also released Friday its 14th ORBIT Act report to Congress. Inmarsat’s privatization appears to have had a positive impact on the domestic market, the report said (http://fcc.us/13qxHMw). Inmarsat said it continues to introduce new services and to invest in new technologies for mobile satellite service customers, the report said. Intelsat’s privatization allowed it to compete freely for U.S. satellite business opportunities, “led to more competitive choices in the U.S. market than existed before privatization,” and encourages development of service offerings, it said. The FCC said it plans to inform Congress of the impact of the actions addressed in the NOI in its next ORBIT Act report.