WASHINGTON-Sparks are flying weeks before public comments are due at the Federal Communications Commission on applications from six firms seeking licenses to operate global pocket-phone satellite systems.
“I think that some of the competitive systems are basing their financial qualifications on highly speculative investments,” said John Windolph, spokesman for Iridium Inc. Iridium, financed by Motorola Inc. and various foreign firms, is one the companies in the hunt for low-earth-orbit satellite, or big LEO, licenses.
The rest of field includes Loral-Qualcomm Satellite Services Inc., Mobile Communications Holdings Inc., TRW Inc., Constellation Communications Inc. and American Mobile Satellite Corp.
“I believe we will make it,” said Gerald Helman, vice president of MCHI.
The FCC said it intends to license as many as five big LEO applicants by Jan. 31.
Using new technology, each LEO system will circle the planet with a constellation of satellites that are smaller, lighter and less powerful than traditional communications satellites and that orbit at lower altitudes.
The design makes it possible to use small, handheld telephones on the global satellite systems that could cost hundreds of millions, if not billions, of dollars to construct.
Worried that firms that are unprepared to assume the huge capital costs could delay getting service to the public prompted the FCC to set strict financial requirements for big LEO applicants. Thus, applicants are expected to attack each others’ financial qualifications in comments due Dec. 22, though technical aspects of system proposals could be targeted as well.
“Various questions will be raised by the FCC on financial qualifications,” said Windolph, echoing a prediction from another applicant.
Scott Harris, chief of the FCC’s International Bureau stated, “The FCC has so far determined nothing.”
AMSC, which already holds a license to provide mobile satellite service in the United States, submitted a technical proposal but chose to delay its financial showing. The firm also petitioned the FCC to let it use big LEO frequencies (1610-1626.5 MHz and 2483.5-2500 MHz) for the second satellite in its North American system. The system will use a high-powered satellite that maintains a constant footprint over the United States through a geosynchronous orbit at a much higher altitude than big LEO birds.
“I think that some of the competitive systems are basing their financial
qualifications on highly speculative investments.”
By using its option to file a financial statement at a later date, AMSC spared all six applicants from having to bid potentially huge dollars for the spectrum they’ll now get for free. If all six applicants had filed complete applications by the Nov. 16 deadline, and the firms were found to be qualified, the FCC would have auctioned spectrum for five licenses.
U.S. systems may have to compete with a global pocket-phone satellite system being developed by the International Maritime Satellite Organization, but it remains unclear how Comsat Corp., the U.S. signatory to the 75-nation Inmarsat, will participate in that venture.
Legislation is expected to be introduced next year in Congress to privatize Inmarsat as well as the 134-member International Telecommunications Satellite Organization.