Milestones not Effective Route to Preventing Spectrum Warehousing, EchoStar Says

The FCC doesn't need interim milestones to keep satellite companies from "warehousing" spectrum or orbital resources, and should eliminate them or at least make them optional, EchoStar said in a letter posted Wednesday in docket 12-267. A bond or corporate guarantee, and "a reasonable limit" on the number of licensed satellites that are not yet operational would prevent warehousing, EchoStar said in its filing, which included a list of suggestions as the FCC considers changing its Part 25 rules. EchoStar also suggested eliminating the "three-strike rule" for operators with a pattern of missing milestones and that there shouldn't be a three-strike rule at the ITU stage, arguing it similarly doesn't prevent warehousing but instead motivates applicants not to seek space station authorizations. It argued for letting satellite operators have "a reasonable number" of advanced publication information (API) filings pending before submitting an application, saying such a number -- such as five in each band -- would prevent warehousing but still accommodate larger operators "who may need access to several new orbital locations." The FCC should adopt a reverse/escalating bond because that would motivate licensees to return licenses as soon as it's clear they won't be used, and opt for corporate guarantees instead of bonds in some situations, EchoStar said, though it said it believes the FCC lacks legal authority to impose a bond at the API stage. The company also backed keeping the two-degree spacing rule and made some technical recommendations.