*Pages 1--7 from Microsoft Word - 39588* PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 445 TWELFTH STREET, S. W. WASHINGTON, D. C. 20554 News media information 202/ 418- 0500 Fax- On- Demand 202/ 418- 2830 Internet: http:// www. fcc. gov ftp. fcc. gov DA 04- 1873 Released: June 25, 2004 COMSAT GENERAL CORPORATION, LOCKHEED MARTIN GLOBAL TELECOMMUNICATIONS LLC, COMSAT NEW SERVICES, INC., INTELSAT LLC, AND INTELSAT MTC LLC, SEEK FCC CONSENT TO ASSIGN LICENSES AND AUTHORIZATIONS AND A DECLARATORY RULING ON FOREIGN OWNERSHIP PLEADING CYCLE ESTABLISHED IB Docket No. 04- 235 Petitions Due: July 26, 2004 Oppositions Due: August 5, 2004 Replies Due: August 10, 2004 I. INTRODUCTION COMSAT General Corporation (“ COMSAT General”), Lockheed Martin Global Telecommunications, LLC (“ LMGT”), and COMSAT New Services, Inc. (“ CNSI”) (collectively, “COMSAT General Businesses” or “Assignors”) and Intelsat LLC and Intelsat MTC LLC (together, “Assignees,” and collectively with COMSAT General Business, the “Applicants”) have filed a series of applications pursuant to sections 214, 308, and 310( d) of the Communications Act of 1934, as amended (the “Act”) 1 and a petition for declaratory ruling under section 310( b)( 4) of the Act. 2 In the applications, the Applicants seek Commission approval for assignment of various licenses and authorizations from the COMSAT General Businesses to Intelsat LLC and Intelsat MTC LLC, which result from an Asset Purchase Agreement entered into by and among the Applicants. These applications pertain to special temporary authority and licenses for earth stations, a geostationary satellite space station, a private land mobile radio license, and an international section 214 authorization. Intelsat LLC and Intelsat MTC LLC also request a declaratory ruling that their indirect foreign investment is consistent with the public interest. 1 47 U. S. C. §§ 214, 308, 310( d). 2 47 U. S. C. § 310( b)( 4). 1 2 II. THE PARTIES COMSAT General and LMGT are wholly- owned subsidiaries of Lockheed Martin Corporation. CNSI is a wholly- owned subsidiary of COMSAT Corporation, which is a wholly-owned subsidiary of LMGT. The COMSAT General Businesses sell integrated service packages, combining resale of satellite capacity with value- added services such as bandwidth management and host nation agreement management. They purchase satellite capacity from Intelsat and other satellite operators. Their customers include commercial and government users. Intelsat LLC and Intelsat MTC LLC are both indirect wholly- owned subsidiaries of Intelsat (Bermuda), Ltd., which is in turn wholly- owned by Intelsat, Ltd. Intelsat is a global provider of satellite communications services, supplying voice, video and data communications. It owns and operates a global system that provides space segment capacity used for a wide array of communications services, including voice, video, data, and Internet connections. Intelsat’s fleet of satellites offers service in more than 200 countries, serving customers that range from large telecommunications carriers and broadcasters to corporate networks and Internet service providers. III. DESCRIPTION OF TRANSACTION Intelsat LLC and Intelsat MTC LLC seek authority to acquire certain assets from the COMSAT General Businesses pursuant to an Asset Purchase Agreement entered into by the Applicants on May 11, 2004. Under the proposed assignment, Intelsat LLC will purchase a private land mobile radio license, a geostationary satellite space station license, and six satellite earth station licenses. Intelsat MTC LLC will purchase authorizations and licenses for earth stations and an international section 214 authorization. IV. PUBLIC INTEREST SHOWING The Applicants state that the approval of the assignments will serve the public interest. They state specifically that the proposed transaction will enhance Intelsat’s ability to provide end- to- end satellite communications to its customers. According to the application, incorporating the COMSAT General Businesses’ assets, customer base and expertise into Intelsat’s businesses will allow them to offer their customers a greater range of end- to- end solutions to meet their international communications needs. In addition, the combination will yield economies of scale and scope, enhancing Intelsat’s ability to provide quality innovative service. The Applicants further state that because the proposed assignments will allow Intelsat to better provide the end- to- end, integrated services that its rivals currently offer to their customers, the assignments will further U. S. policy under the ORBIT Act. 3 3 Open- Market Reorganization Act for the Betterment of International Telecommunications Act, Pub. L. No. 106- 180, 114 Stat. 48 (Orbit Act). 2 3 Applicants state that the proposed assignments will have no adverse effect on competition. They state that Intelsat faces competition for both commercial and government customers from a number of other global providers of satellite capacity, and that there is strong competition in the earth station market. The Applicants conclude that the proposed assignments will not give Intelsat any power to foreclose or otherwise harm the international telecommunications market. V. PETITION FOR DECLATORY RULING UNDER SECTION 310( b)( 4) The Assignees request a declaratory ruling that their indirect foreign investment is consistent with the public interest standard under section 310( b)( 4) of the Act 4 (File Number ISP- PDR- 20040528- 00005). Intelsat LLC and Intelsat MTC LLC are both indirect wholly- owned subsidiaries of Intelsat (Bermuda), Ltd., and in turn Intelsat, Ltd., both of which are incorporated under the laws of Bermuda. Bermuda is a World Trade Organization (“ WTO”) member country. In 2000, the Commission reviewed and approved the indirect foreign ownership of Intelsat LLC, in the Intelsat LLC Licensing Order. 5 The Commission has also approved indirect foreign ownership in other Intelsat subsidiaries on several occasions. Most recently, the International Bureau granted Intelsat North America, LLC, a wholly- owned subsidiary of Intelsat LLC, a section 310( b)( 4) ruling. 6 According to the petition, Intelsat MTC LLC was specifically created for the purpose of holding various assets, licenses, and authorizations to be acquired through the proposed assignments. The Assignees state that there have been no significant changes to the foreign ownership of Intelsat, Ltd. since the Intelsat/ Loral Order. They state that Lockheed Martin Corporation, a U. S. company, is Intelsat’s largest minority shareholder with more than 20 percent of the total Intelsat, Ltd. shares. The remaining ownership interests in Intelsat, Ltd. remain widely dispersed among more than 220 entities, representing more than 145 nations. They further state that entities from WTO member countries hold approximately 94 percent of Intelsat shares, and that indirect foreign government ownership is approximately 30 percent. 4 47 U. S. C. § 310( b)( 4). 5 Applications of Intelsat LLC for Authority to Operate, and to Further Construct, Launch, and Operate C- band and Ku- band Satellites that Form a Global Communications System in Geostationary Orbit, Memorandum Opinion and Order, 15 FCC Rcd 15460, 15483, paras. 44- 55 (Intelsat LLC Licensing Order). 6 Loral Satellite, Inc. (Debtor- in- Possession) and Loral SpaceCom Corporation (Debtor- in- Possession), Assignors and Intelsat North America, LLC, Assignee, Applications for Consent to Assignments of Space Station Authorizations and Petition for Declaratory Ruling Under Section 310( b)( 4) of the Communications Act of 1934, as Amended, Order and Authorization, 19 FCC Rcd 2404, 2415 (IB 2004) (Intelsat/ Loral Order). 3 4 VI. SECTION 310 APPLICATIONS A. Part 25 – Satellite Communications The following file numbers have been assigned to the earth and space station applications: File Number Assignor Assignee Call Sign SES- ASG- 20040528- 00744 Lockheed Martin Global Telecommunications, LLC Intelsat MTC LLC E960186 E960187 SES- ASG- 20040528- 00750 Comsat General Corp. Intelsat LLC E970053 SES- ASG- 20040528- 00751 Comsat General Corp. Intelsat LLC E980015 E980016 E980019 E980217 E990303 SAT- ASG- 20040528- 00109 Comsat General Corp Intelsat LLC MARISAT F2 B. Part 90 -- Private Land Mobile License The following file number has been assigned to the Private Land Mobile Radio Service assignment application: . File Number Assignor Assignee Call Sign 0001743676 COMSAT General Corporation Intelsat LLC WPYJ473 V. INTERNATIONAL SECTION 214 AUTHORIZATION The following file number has been assigned to the international section 214 authorization application: File Number Assignor Assignee Authorization Number ITC- ASG- 20040528- 00235 Lockheed Martin Global Telecommunications, LLC Intelsat MTC LLC ITC- 214- 19961230- 00657 VI. GENERAL INFORMATION The assignment applications filed by the Applicant have been found, upon initial review, to be acceptable for filing. The Commission reserves the right to return any application if, upon further examination, it is determined to be defective and not in conformance with the 4 6 One copy of each pleading must be delivered electronically, by e- mail or facsimile, or if delivered as paper copy, by hand or messenger delivery, by commercial overnight courier, or by first- class or overnight U. S. Postal Service mail (according to the procedures set forth above for paper filings), to: (1) the Commission's duplicating contractor, Best Copy and Printing, Inc., at fcc@ bcpiweb. com or (202) 488- 5563 (facsimile); (2) JoAnn Lucanik, Satellite Division, International Bureau, at JoAnn. Lucanik@ fcc. gov, or (202) 418- 0748 (facsimile); (3) Jeanette Spriggs, Satellite Division, International Bureau, at Jeanette. Spriggs@ fcc. gov, or (202) 418- 0748 (facsimile); (4) Kathleen Campbell, Satellite Division, International Bureau, at Kathleen. Campbell@ fcc. gov, or (202) 418- 0748 (facsimile); (5) David Krech, Policy Division, International Bureau, at David. Krech@ fcc. gov or (202) 418- 1460 (facsimile); (6) Jennifer Gorny, Policy Division, International Bureau, at Jennifer. Gorny@ fcc. gov or (202) 418- 1460 (facsimile); (7) Jeff Tobias, Public Safety and Critical Infrastructure Division, Wireless Telecommunications Bureau, at Jeff. Tobias@ fcc. gov, or (202) 418- 2643 (facsimile); and, (8) Neil Dellar, Transaction, Team, Office of General Counsel, at Neil. Dellar@ fcc. gov, or (202) 418- 1234 (facsimile). Copies of the applications and any subsequently- filed documents in this matter may be obtained from Best Copy and Printing, Inc., in person at 445 12th Street, S. W., Room CY- B402, Washington, D. C. 20554, via telephone at (202) 488- 5300, via facsimile at (202) 488- 5563, or via e- mail at fcc@ bcpiweb. com. The applications and any associated documents are also available for public inspection and copying during normal reference room hours at the following Commission office: FCC Reference Information Center, 445 12th Street, S. W., Room CY-A257, Washington, D. C. 20554. The applications are also available electronically through the Commission’s ECFS, which may be accessed on the Commission’s Internet website at http:// www. fcc. gov. Alternate formats of this public notice (computer diskette, large print, audio recording, and Braille) are available to persons with disabilities by contacting Brian Millin at (202) 418- 7426 (voice), (202) 418- 7365 (TTY), or send an e- mail to access@ fcc. gov. For further information, contact JoAnn Lucanik, Satellite Division, International Bureau, at (202) 418- 0719 or David Krech, Policy Division, International Bureau, at (202) 418- 1460. -FCC- 6 7 7