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 companies  are  technically  compatible,  thereby  allowing  consumers  to  buy  one  radio  to  access  both  companies’  signals. 
 In  the  future  there  will  be  new  internet/  broadband  applications  that  benefit  consumers. 
 Satellite  operators  are  also  finding  new  and  innovative  ways  to  provide  other  services  to  consumers. 


 For  example,  even  today  Hughes  network  systems  offers  “Directway,”  a  two-  way  broadband  internet  access  service  with  speeds  of  half  a  megabit  per  second  using  Ku-band 
 satellites.  As  of  June  2003,  this  service  had  approximately  166,000  consumer  subscribers  in  North  America. 


 In  the  future,  satellites  are  expected  to  offer  a  faster,  more  competitive  broadband  internet  service  through  ka-  band  satellites.  Echostar  launched  a  satellite  WITH  a  ka-  band 
 payload  (“  Echostar  9”)  in  August  2003,  and  we  expect  more  Ka-  band  licensees  to  launch  their  satellites  in  2004. 


 Ka-  band  satellite  systems  have  the  potential  to  provide  a  wide  variety  of  sophisticated  digital  telecommunications  service  alternatives,  including  broadband,  interactive,  direct-to- 
 home  services,  to  all  parts  of  the  country  --  from  cities  and  suburbs,  to  rural  and  isolated  areas.  Ka-  band  licensees  propose  to  provide  a  number  of  services,  including 
 video  teleconferencing,  telemedicine,  distance  learning  and  high-  speed  two-  way  interactive  computer  services. 


 Satellite  technology  is  also  providing  broadband  services  to  places  that  people  may  not  have  thought  possible  (like  ships  and  planes): 
 --  earth  stations  on  board  vessels  (ESV's),  are  making  internet  service  available  on  cruise  ships  in  the  middle  of  the  ocean. 
 --  In  2001,  the  FCC  authorized  Boeing  to  provide  satellite-  based  internet  access  on  passenger  airplanes. 


 Now  I’d  like  to  talk  about  how  the  FCC’s  policies  help  the  satellite  industry  respond  to  customer  needs. 
 The  commission  is  committed  to  fostering  the  growth  of  a  competitive  market  in  which  companies  can  prosper  and  create  a  wide  array  of  consumer  choices.  An  important 
 focus  of  the  work  of  the  international  bureau  is  on  ensuring  the  efficient  use  of  spectrum,  as  well  as  on  expanding  consumer  choice  in  the  satellite  entertainment  area. 
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 The  centerpiece  of  this  work  is  on  the  process  we  use  to  issues  earth-  and  space-  station  licenses.  Over  the  past  three  years,  we  have  completely  reformed  our  licensing  process 
 for  most  non-  DBS  and  non-  DARS  systems.  We  face  less  pressure  to  reform  our  licensing  process  for  DBS  and  DARS  as  they  are  assigned  through  auctions. 


 As  a  prelude  to  this  discussion,  let  me  summarize  the  satellite  licensing  process. 
 First,  the  international  telecommunication  union  (ITU)  determines  whether  to  allocate  spectrum  to  satellite  services  or  to  other  uses  in  world  radiocommunications  conferences, 
 which  are  held  every  three  years. 


 Second,  for  GSO  satellites,  the  ITU  assigns  each  country  priority  over  certain  orbit  locations.  For  DBS  satellites,  orbit  locations  are  spelled  out  in  a  band  plan  in  the  ITU's 
 radio  regulations.  For  other  GSO  satellites,  each  country's  orbit  location  priority  is  determined  on  a  first-  come,  first-  served  basis. 


 Third,  in  response  to  applications  to  it,  the  FCC  decides  whether  or  not  to  issue  satellite  licenses.  The  commission  has  a  number  of  congressionally-  mandated  regulations  that 
 apply  to  DBS  satellite  operators  after  they  are  licensed,  including  content  regulation  (such  as  local-  into-  local  requirements).  However,  I  would  like  to  focus  solely  on  the 
 commission's  facilities  licensing  procedures  here,  because  that  provides  good  examples  of  how  the  commission  tries  to  promote  the  satellite  industry's  efforts  to  expand  service 
 options  for  consumers. 


 For  example,  in  recent  years,  the  commission  has  adopted  dramatic  revisions  to  its  licensing  procedures,  so  that  it  can  issue  satellite  licenses  faster,  thereby  enabling  satellite 
 operators  to  provide  their  services  sooner.  The  international  bureau  has  also  interpreted  those  procedures  in  ways  to  facilitate  new  entry  and  expanded  service  options.  Let's  look 
 at  licensing  procedures  first. 


 Some  of  the  licensing  reforms  we  have  adopted  concern  auctioning  of  DBS  spectrum. 


 The  commission  adopted  DBS  auction  rules  in  1995.  Auctions  enable  the  commission  to  issue  licenses  more  quickly  than  would  be  possible  under  many  other  licensing 
 procedures.  More  importantly,  auctions  provide  a  market-  based  mechanism  that  determines  the  highest  value  of  license. 


 Our  next  planned  auction  for  DBS  licenses  is  now  scheduled  for  July  14,  2004.  Auction  No.  52  will  include  the  three  licenses  for: 
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 principles  on  which  the  FCC’s  work  is  based:  to  promote  market-  based  competition  that  serves  the  public  interest  in  delivery  reliable  communications  services  to  all  Americans. 
 That  is  why,  along  with  my  colleagues  in  the  international  and  media  bureau,  I  am  proud  to  work  with  the  satellite  industry  as  it  continues  to  innovate  and  provide  quality  service 
 throughout  our  nation. 


 Thank  you. 
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