FCC Lifts '3-License' Presumption for NGSO Applications

One frequency band isn't the same as a marketplace, and having fewer than three licensees in a band doesn't reflect some lack of market competition needing remedy, the FCC said, lifting its "three-license presumption" in its non-geostationary orbit-like (NGSO) satellite processing round procedures in an order on reconsideration to be published Monday in the Federal Register after approval Aug. 16. The three-license presumption requires the agency withhold spectrum for use in a subsequent processing round if two or fewer qualified applicants apply in the initial processing round. In the order, the FCC also clarified the procedures for redistribution of spectrum among other NGSO-like systems after authorization of one has been canceled, saying it will then issue a public notice or order and propose to modify the remaining grants to redistribute the spectrum among remaining system operators that have asked to use the spectrum. The FCC said the returned spectrum "will generally be redistributed equally" among the other operators that requested it. The commission also clarified that it will continue its "three-strikes" rule -- which limits additional satellite applications if a licensee misses three milestones in any three-year period -- and that while it revised its milestone rules last year (see 1512170036), it kept one milestone requirement and any authorizations surrendered prior to fulfilling that milestone will continue to be subject to the "three-strikes" rule. The FCC also said it disagreed with a Hughes petition arguing that the limit on pending applications and licensed-but-unlaunched satellites wasn't needed for orbital locations not covering the U.S. and against the bond requirement for applicants for satellites to operate at non-U.S. orbital locations, with the agency opting to keep them as safeguards against speculation. It also clarified that NGSO-like licensees getting spectrum rights from other NGSO-like licensees are allowed to build a single, integrated NGSO-like system under one milestone schedule and that non-U.S. satellite operators can notify the agency of a change in satellite ownership after the fact. The rules changes will be effective 30 days after publication, said the order.