~ULlUSGENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION March 23, 2012 The Honorable Greg Walden Chainnan Subcommittee on Communications and Technology Committee on Energy and Commerce U.S. House of Representatives 2125 Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Walden: Your letter of February 28, 2012, asked for responses to several questions regarding the interference dispute between LightSquared and the Global Positioning System (GPS) community. In addition to the written responses below, my staff has briefed Committee staffon these issues and is working to respond fully to your February 28 letter. The history relevant to the LightSquared matter goes back more than a decade. am attaching a summary chronology for the Committee's information. As the chronology reflects, the Commission has taken very seriously all interference issues raised by the Ancillary Terrestrial Component (ATe) to Mobile Satellite Service (MSS), including potential interference from LightSquared's proposed commercial service. At the same time, the Commission has also emphasized the critical importance to our Nation's economic growth and global competitiveness of making spectrum available for mobile broadband. That goal is vital and must be achieved without compromising national security or public safety. Accordingly, as interference concerns regarding MSS/ATC operations have been raised, the Commission has consistently worked to address and resolve them. Ln 2003, for instance, when the FCC established industry-wide rules authorizing the ATC offerings that recently have been at issue in the LightSquared matter, it adopted a regulation stating that "[i]f harmful interference is caused to other services by ancillary MSS ATC operations, either from ATC base stations or mobile tenninals, the MSS ATC operator must resolve any such interference.,,1 Consistent with that longstanding rule, the Commission has taken effective steps to ensure that GPS interference concerns are resolved before LightSquared can offer commercial terrestrial service using the former SkyTerra L-Band spectrum. In March 2010, the Commission's International Bureau authorized the modification of SkyTerra's fonner MSS/ATC license to accommodate LightSquared's wholesale business plan. It I 47 C.F.R. § 25.255. 445 12TH STREETS.W. WASHINGTON. D.C. 20554 • 202-418-1000 Page 2-The Honorable GregWalden did so only after all interference concerns raised at that time by the GPS industry had been resolved.' Similarly, after LightSquared sought a modification of its MSS/ATC authority in November 20 I0 to better reflect its wholesale business model, and the GPS industry raised a new "overload" interference concern for the first time, the International Bureau explicitly conditioned any commercial terrestrial operations by LightSquared under a waiver of the MSS/ATC rules on resolution ofthese concerns. Specifically, the Bureau required LightSquared, before it could commence its planned commercial operations, to participate in testing and analysis conducted by a technical working group to address "the interference concerns regarding GPS ... to the Commission's satisfaction.,,3 Last month, after the National Telecommunications and Information Administration (NTIA) informed the Commission ofthe results of government interference testing, the International Bureau issued a Public Notice seeking comment on whether to vacate its January 20II Conditional Waiver Order "due to LightSquared's inability to address satisfactorily the legitimate interference concerns.'''' The proceeding initiated by that Public Notice remains open and provides all interested parties a full . 5 opportUl1lty to comment. The Commission has employed thorough, public, and fair processes throughout its LightSquared proceedings. In particular, in response to your Question I, it was appropriate for the Commission's International Bureau to issue the orders your letter identifies. Under Parts 0 and I ofthe Commission's rules, the International Bureau and the other FCC bureaus and offices are delegated authority to address a wide range of matters in the first instance, subject to review by the full Commission. Applications for approval oftransfers of control of FCC licenses, as well as petitions for interpretation or waiver of rules, are decided at the staff level on delegated authority where the action involved is consistent with general Commission policy. Disposition ofsuch licensing 2 These interference issues, which related to out-of-band emissions, are different from the receiver overload issues that GPS providers later raised. In Augu t 2009, the U.S. GPS Industry Council and SkyTerra (LightSquared's predecessor) jointly filed with the FCC a letter indicating that the out-of-band emissions interference issue had been resolved. See Letter from Raul Rodriguez, Counsel for the U.S. GPS Industry Council (GPSIC) to Marlene H. Dortch, Secretary, FCC, No. SAT-MOD-20090429-00047 (dated Aug. 17,2009). 3 LightSquared Subsidiary LLC Request for Modification ofits Authorityfor an Ancillary Terrestrial Component, Order and Authorization ("Conditional Waiver Order"), 26 FCC Rcd 566,~41 (Int'l Bur., 2011). These concerns were documented in GPSIC's December 2 comments in the proceeding, which included as an attachment a September 15, 20 I0 filing by GPSIC raising similar concerns in ET Docket No. 10-142, Notice ofProposed Rulemaking and Notice ofInquiry, Fixed and Mobile Services in the Mobile Satellite Service Bands at 1525-1559 MHz and 1626.5-1660.5 MHz, 1610-1626.5 MHz and 2483.5-2500 MHz, and 2000-2020 MHz and 2180-2200 MHz. 4 International Bureau Invites Comment on NTIA Leller Regarding LightSquared Conditional Waiver, Public Notice, IB Docket No. 11-109, at 4 (Inl'l Bur., reI. Feb. 15,2012). I The attached chronology provides a more detailed timeline and responds more fully to your inquiry (Question 5) as to when the Commission became aware of potential interference with GPS devices. Page 3-The Honorable GregWalden matters on delegated authority is a practical necessity for timely and efficient completion ofthe Commission's business, while the opportunity for further review by the full Commission ensures that unresolved issues can be addressed by the Commissioners themselves. Similarly, in response to your Question 2, the time periods for comment on LightSquared's request for modification ofits ATC authority in November 2011 were consistent with the Commission's rules and procedures, and they were sufficient to enable the GPS industry and many other commenters to participate actively in the modification proceeding. Only one party, CTIA, requested an extension oftheori~inal filing deadlines, and the Bureau extended the deadlines in response to that request. Moreover, there was good reason for the International Bureau to avoid undue delay in considering a requested action that could facilitate the deployment of broadband services on under-utilized spectrum. LightSquared's filing involved familiar MSS/ATC operations and technologies and did not involve any change to the technical parameters of LightSquared's satellite and ATC transmitters. LightSquared's proposal involved only whether consumer devices would need to have both satellite and terrestrial capability in all cases and thus did not require significant technical or engineering review - with one exception. That one exception - presented during the comment period on the requested modification - was the newly raised concern about overload interference from LightSquared's ATC transmitters to GPS devices. Notably, the interference concerns were based on transmissions from LightSquared's base stations, yet LightSquared's request did not seek relief from any ofthe base station requirements. Nevertheless, the Bureau promptly and effectively addressed these overload interference concerns by creating an interference resolution process, so that any commercial service would not be permitted without prior resolution ofthe GPS interference issues. This process has yielded important information about GPS interference that the Commission and the public are now able to assess. Your letter further inquires (Question 3) as to the Commission staff's reasons for adopting, in March 20 I0, two conditions on the SkyTerra/LightSquared transaction that required FCC approval before LightSquared could lease spectrum or make more than 25% of its network capacity available to the two largest wireless providers. Absent such conditions, LightSquared would have been able to avoid Commission review of wholesale transactions that could raise significant public interest issues. The Commission has rules, codified at 47 C.F.R. §§ 1.9001-1.9080, that generally provide for a review process for spectrum leasing and wholesaling by wireless providers. But at the time of the SkyTerra/LightSquared transaction, there were no comparable rules for MSS spectrum. The conditions proposed by LightSquared were accepted by the staffas part of its public interest analysis of this particular transaction because they helped to address this gap, which existed at the time. The Commission has since adopted a rule ofgeneral applicability that addresses the spectrum-leasing issue on an industry-wide basis and 6 UghtSquared Subsidiary LLC Requestfor Modification ofits Authorityfor an Ancillary Terrestrial Component, Order, SAT-MOD-20 101118-00239 (Int'l Bur., reI. Nov. 26, 20 I0). Page 4-The Honorable GregWalden without reference to the market positions ofthe carriers involved in the lease arrangement. 7 You asked (Question 4) why the International Bureau waived the integrated service rule for MSSIATC devices as to LightSquared. The Bureau explained the reasons for this action in its January 2011 Conditional Waiver Order. Those reasons included that LightSquared was (1) "already a significant and substantial provider" ofMSS; (2) making significant efforts to rationalize narrow, interleaved portions of L-Band spectrum with Inrnarsat which operates in the same band, thus supporting deployment of broadband MSS and MSS/ATC services in the band; (3) investing over $50 million in dual-mode (that is, terrestrial and satellite) service and devices; (4) subject to "significant terrestrial buildout milestones"; and (5) commining as part ofthe waiver decision to take further actions that would "ensure consistency" with the underlying purposes ofthe FCC rule requiring integration ofATC and MSS operations, by requiring that LightSquared continue actively to market its MSS and to offer dual-mode devices at prices "competitive with similar terrestrial-only devices."s Finally, in response to your inquiry (Question 6) whether the Commission has independently evaluated the recent NTIA recommendations and related materials, the Commission has put out for public comment the questions raised by those materials. Initial comments were filed on March 16,2012, and reply comments are due on March 30. After receiving those comments, the Commission and its expert technical staff will review the relevant materials, and the comments regarding them, as part ofthe ordinary decision-making process. I appreciate this opportunity to respond to your questions. - Enclosure 7 Fixed and Mobile Services in the Mobile Satellite Service Bands at /525·1559 MHz and /626.5 1660.5 MHz, /610-/626.5 MHz and 2483.5-2500 MHz, and 2000·2020 MHz alld 2180-2200 MHZ, ET Docket No. 10-142, Report and Order, 26 FCC Red 5710 (2011). 8Conditional Waiver Order, 26 FCC Red 3t581-83,~~29-35. FEDERAL COMMUNICATIONS COMMISSION March 23, 2012 ,JULIUS GENACHOWSKI CHAIRMAN The Honorable Fred Upton Chairman Committee on Energy and Commerce U.S. House ofRepresentatives 2125 Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Upton: Your letter of February 28, 2012, asked for responses to several questions regarding the interference dispute between LightSquared and the Global Positioning System (GPS) community. In addition to the written responses below, my staff has briefed Committee staff on these issues and is working to respond fully to your February 28 letter. The history relevant to the LightSquared matter goes back more than a decade. I am attaching a summary chronology for the Committee's information. As the chronology reflects, the Commission has taken very seriously all interference issues raised by the Ancillary Terrestrial Component (ATC) to Mobile Satellite Service (MSS), including potential interference from LightSquared's proposed commercial service. At the same time, the Commission has also emphasized the critical importance to our Nation's economic growth and global competitiveness of making spectrum available for mobile broadband. That goal is vital and must be achieved without compromising national security or public safety. Accordingly, as interference concerns regarding MSS/ATC operations have been raised, the Commission has consistently worked to address and resolve them. In 2003, for instance, when the FCC established industry-wide rules authorizing the ATC offerings that recently have been at issue in the LightSquared matter, it adopted a regulation stating that "[i]f harmful interference is caused to other services by ancillary MSS ATC operations, either from ATC base stations or mobile terminals, the MSS ATC operator must resolve any such interference.'" Consistent with that longstanding rule, the Commission has taken effective steps to ensure that GPS interference concerns are resolved before LightSquared can offer commercial terrestrial service using the former SkyTerra L-Band spectrum. In March 2010, the Commission's International Bureau authorized the modification of SkyTerra's former MSSIATC license to accommodate LightSquared's wholesale business plan. It did so only after all interference concerns raised at that time by the GPS industry had 147 C.F.R. § 25.255. 445 12TH 5TREET S.W. WASHINGTON. D.C. 20554 • 202-418-1000 Page 2-The Honorable Fred Upton been resolved 2 Similarly, after LightSquared sought a modification of its MSS/ATC authority in November 2010 to better reflect its wholesale business model, and the GPS industry raised a new "overload" interference concern for the first time, the International Bureau explicitly conditioned any commercial terrestrial operations by LightSquared under a waiver of the MSS/ATC rules on resolution ofthese concerns. Specifically, the Bureau required LightSquared, before it could commence its planned commercial operations, to participate in testing and analysis conducted by a technical working group to address "the interference concerns regarding GPS ... to the Commission's satisfaction.,,3 Last month, after the National Telecommunications and Information Administration (NTIA) informed the Commission ofthe results ofgovernment interference testing, the International Bureau issued a Public Notice seeking comment on whether to vacate its January 2011 Conditional Waiver Order "due to LightSquared's inability to address satisfactorily the legitimate interference concerns.'''' The proceeding initiated by that Public Notice remains open and provides all interested parties a full opportunity to commentS The Commission has employed thorough, public, and fair processes throughout its LightSquared proceedings. In particular, in response to your Question 1, it was appropriate for the Commission's International Bureau to issue the orders your letter identifies. Under Parts 0 and I of the Commission's rules, the International Bureau and the other FCC bureaus and offices are delegated authority to address a wide range of matters in the first instance, subject to review by the full Commission. Applications for approval oftransfers ofcontrol ofFCC licenses, as well as petitions for interpretation or waiver of rules, are decided at the staff level on delegated authority where the action involved is consistent with general Commission policy. Disposition ofsuch licensing matters on delegated authority is a practical necessity for timely and efficient completion 2 These interference issues, which related to out-of-band emissions, are different from the receiver overload issues that GPS providers later raised. In August 2009, the U.S. GPS Industry Council and SkyTerra (LightSquared's predecessor) jointly filed with the FCC a letter indicating that the out-of-band emi sions interference issue had been resolved. See Letter from Raul Rodriguez, Counsel for the U.S. GPS Industry Council (GPSIC) to Marlene H. Dortch, Secretary, FCC, No. SAT-MOD-20090429-00047 (dated Aug. 17,2009). 3 UghtSquared Subsidiary LLC Requestfor Modificatioll ofits Authorityfor all Allcillary Terrestrial Compollellt, Order alld Authorizatioll ("Collditiollal Waiver Order"), 26 FCC Rcd 566,~41 (Int'l Bur., 2011). These concerns were documented in GPSIC's December 2 comments in the proceeding, which included as an attachment a September 15, 20 I0 filing by GPSIC raising similar concerns in ET Docket No. 10-142, Notice ofProposed Rulemakillg alld Notice ofIllquiry, Fixed and Mobile Services in the Mobile Satellite Service Bands at 1525-1559 MHz and 1626.5-1660.5 MHz, 1610-1626.5 MHz and 2483.5-2500 MHz, and 2000-2020 MHz and 2180-2200 MHz. 4 Illternatiollal Bureau Illvites Commelll all NTIA Leller Regardillg UghtSquared COllditiollal Waiver, Public Notice, 18 Docket No. 11-109, at 4 (Int'l Bur., reI. Feb. 15,2012). , The attached chronology provides a more detailed timeline and responds more fully to your inquiry (Question 5) as to when the Commission became aware of potential interference with GPS devices. Page 3-The Honorable Fred Upton ofthe Commission's business, while the opportunity for further review by the full Commission ensures that unresolved issues can be addressed by the Commissioners themselves. Similarly, in response to your Question 2, the time periods for comment on LightSquared's request for modification of its ATC authority in November 20 II were consistent with the Commission's rules and procedures, and they were sufficient to enable the GPS industry and many other commenters to participate actively in the modification proceeding. Only one party, CTIA, requested an extension oftheori~inal filing deadlines, and the Bureau extended the deadlines in response to that request. Moreover, there was good reason for the International Bureau to avoid undue delay in considering a requested action that could facilitate the deployment ofbroadband services on under-utilized spectrum. LightSquared's filing involved familiar MSS/ATC operation and technologies and did not involve any change to the technical parameters of LightSquared's satellite and ATC transmitters. LightSquared's proposal involved only whether consumer devices would need to have both satellite and terrestrial capability in all cases and thus did not require significant technical or engineering review - with one exception. That one exception - presented during the comment period on the requested modification - was the newly raised concern about overload interference from LightSquared's ATC transmitters to GPS devices. Notably, the interference concerns were based on transmissions from LightSquared's base stations, yet LightSquared's request did not seek relief from any of the base station requirements. Nevertheless, the Bureau promptly and effectively addressed these overload interference concerns by creating an interference resolution process, so that any commercial service would not be permitted without prior resolution ofthe GPS interference issues. This process has yielded important information about GPS interference that the Commission and the public are now able to assess. Your letter further inquires (Question 3) as to the Commission staff's reasons for adopting, in March 20 I 0, two conditions on the SkyTerraiLightSquared transaction that required FCC approval before LightSquared could lease spectrum or make more than 25% of its network capacity available to the two largest wireless providers. Absent such conditions, LightSquared would have been able to avoid Commission review of wholesale transactions that could raise significant public interest issues. The Commission has rules, codified at 47 C.F.R. §§ 1.9001-1.9080, that generally provide for a review process for spectrum leasing and wholesaling by wireless providers. But at the time ofthe SkyTerraiLightSquared transaction, there were no comparable rules for MSS spectrum. The conditions proposed by LightSquared were accepted by the staffas part of its public interest analysis ofthis particular transaction because they helped to address this gap, which existed at the time. The Commission has since adopted a rule ofgeneral applicability that addresses the spectrum-leasing issue on an industry-wide basis and 6 UghtSquared Subsidiary LLC Requestfor Modification ofils Authorityfor an Ancillary Terrestrial Component, Order, SAT-MOD-20 101118-00239 (Int'l Bur., reI. Nov. 26, 2010). Page 4-The Honorable Fred Upton without reference to the market positions ofthe carriers involved in the lease arrangement. 7 You asked (Question 4) why the International Bureau waived the integrated service rule for MSS/ATC devices as to LightSquared. The Bureau explained the reasons for this action in its January 20 I I Conditional Waiver Order. Tho e reasons included that LightSquared was (1) "already a significant and substantial provider" of MSS; (2) making significant efforts to rationalize narrow, interleaved portions of L-Band spectrum with Inmarsat which operates in the same band, thus supporting deployment of broadband MSS and MSS/ATC services in the band; (3) investing over $50 million in dual-mode (that is, terrestrial and satellite) service and devices; (4) subject to "significant terrestrial buildout milestones"; and (5) committing as part ofthe waiver decision to take further actions that would "ensure consistency" with the underlying purposes ofthe FCC rule requiring integration ofATC and MSS operations, by requiring that LightSquared continue actively to market its MSS and to offer dual-mode devices at prices "competitive with similar terrestrial-only devices."g Finally, in response to your inquiry (Question 6) whether the Commission has independently evaluated the recent NTIA reconunendations and related materials, the Commission has put out for public comment the questions raised by those materials. Initial comments were filed on March 16,2012, and reply comments are due on March 30. After receiving those comments, the Commission and its expert technical staff will review the relevant materials, and the comments regarding them, as part ofthe ordinary decision-making process. I appreciate this opportunity to respond to your questions. Sincerely, • Julius Genachowski Enclosure 7 Fixed and Mobile Services in the Mobile Satellite Service Bands at /525-/559 MHz alld 1626.5 /660.5 MHz, 1610-/626.5 MHz alld 2483.5-2500 MHz, alld 2000-2020 MHz alld 2/80-2200 MHZ, ET Docket No. 10-142, Report alld Order, 26 FCC Red 5710 (20 II). 8COllditiollai Waiver Order, 26 FCC Red at 581-83,~~29-35. JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION March 23, 2012 The Honorable CliffStearns Chairman Subcommittee on Oversight and Investigations Committee on Energy and Commerce U.S. House of Representatives 2125 Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Stearns: Your letter ofFebruary 28, 2012, asked for responses to several questions regarding the interference dispute between LightSquared and the Global Positioning System (GPS) community. In addition to the written responses below, my staffhas briefed Committee staff on these issues and is working to respond fully to your February 28 letter. The history relevant to the LightSquared matter goes back more than a decade. am attaching a summary chronology for the Committee's information. As the chronology reflects, the Commission has taken very seriously all interference issues raised by the Ancillary Terrestrial Component (ATC) to Mobile Satellite Service (MSS), including potential interference from LightSquared's proposed commercial service. At the same time, the Commission has also emphasized the critical importance to our Nation's economic growth and global competitiveness ofmaking spectrum available for mobile broadband. That goal is vital and must be achieved without compromising national security or public safety. Accordingly, as interference concerns regarding MSS/ATC operations have been raised, the Commission has consistently worked to address and resolve them. In 2003, for instance, when the FCC established industry-wide rules authorizing the ATC offerings that recently have been at issue in the LightSquared matter, it adopted a regulation stating that "[i]f harmful interference is caused to other services by ancillary MSS ATC operations, either from ATC base stations or mobile terminals, the MSS ATC operator must resolve any such interference.'" Consistent with that longstanding rule, the Commission has taken effective steps to ensure that GPS interference concerns are resolved before LightSquared can offer commercial terrestrial service using the former SkyTerra L-Band spectrum. In March 2010, the Commission's International Bureau authorized the modification ofSkyTerra's former MSS/ATC license to accommodate LightSquared's wholesale business plan. It '47 C.F.R. § 25.255. 445 12TH STREET S.W. WASHINGTON. D.C. 20554 • 202-418-1000 Page 2-The Honorable CliffSteams did so only after all interference concerns raised at that time by the GPS industry had been resolved. 2 Similarly, after LightSquared sought a modification of its MSSIATC authority in November 20I0 to better reflect its wholesale business model, and the GPS industry raised a new "overload" interference concern for the first time, the International Bureau explicitly conditioned any commercial terrestrial operations by LightSquared under a waiver ofthe MSS/ATC rules on resolution ofthese concerns. Specifically, the Bureau required LightSquared, before it could commence its planned commercial operations, to participate in testing and analysis conducted by a technical working group to address "the interference concerns regarding GPS ... to the Commission's satisfaction.,,3 Last month, after the National Telecommunications and Information Administration (NTIA) informed the Commission ofthe results of government interference testing, the International Bureau issued a Public Notice seeking comment on whether to vacate its January 2011 Conditional Waiver Order "due to LightSquared's inability to address satisfactorily the legitimate interference concerns.'''' The proceeding initiated by that Public Notice remains open and provides all interested parties a full opportunity to comment.S The Commission has employed thorough, public, and fair processes throughout its LightSquared proceedings. In particular, in response to your Question I, it was appropriate for the Commission's International Bureau to issue the orders your letter identifies. Under Parts 0 and I ofthe Commission's rules, the International Bureau and the other FCC bureaus and offices are delegated authority to address a wide range of matters in the first instance, subject to review by the full Commission. Applications for approval oftransfers ofcontrol ofFCC licenses, as well as petitions for interpretation or waiver ofrules, are decided at the staff level on delegated authority where the action involved is consistent with general Commission policy. Disposition ofsuch licensing 2 These interference issues, which related to out-of-band emissions, are different from the receiver overload issues that GPS providers later raised. In August 2009, the U.S. GPS Industry Council and SkyTerra (LightSquared's predecessor) jointly filed with the FCC a letter indicating that the out-of-band emissions interference issue had been resolved. See Letter from Raul Rodriguez, Counsel for the U.S. GPS Industry Council (GPSIC) to Marlene H. Dortch, Secretary, FCC, No. SAT-MOD-20090429-00047 (dated Aug. 17,2009). 3 UghtSquared Subsidiary LLC Requestfor Modification ofits Authorityfor an Ancillary Terrestrial Component, Order and Authorization ("Conditional Waiver Order"), 26 FCC Rcd 566,141 (Int'l Bur., 2011). These concerns were documented in GPSIC's December 2 comments in the proceeding, which included as an attachment a September 15,2010 filing by GPSIC raising similar concerns in ET Docket No. 10-142, Notice ofProposed Rulemaking and Notice ofInquiry, Fixed and Mobile Services in the Mobile Satellite Service Bands at 1525-1559 MHz and 1626.5-1660.5 MHz, 1610-1626.5 MHz and 2483.5-2500 MHz, and 2000-2020 MHz and 2180-2200 MHz. 4 International Bureau Invites Comment on NTIA Leller Regarding UghtSquared Conditional Waiver, Public Notice, IB Docket No. 11-109, at 4 (Int'l Bur., reI. Feb. 15,2012). , The attached chronology provides a more detailed timeline and responds more fully to your inquiry (Question 5) as to when the Commission became aware of potential interference with GPS devices. Page 3-The Honorable Cliff Stearns matters on delegated authority is a practical necessity for timely and efficient completion ofthe Commission's business, while the opportunity for further review by the full Commission ensures that unresolved issues can be addressed by the Commissioners themselves. Similarly, in response to your Question 2, the time periods for comment on LightSquared's request for modification of its ATC authority in November 2011 were consistent with the Commission's rules and procedures, and they were sufficient to enable the GPS industry and many other commenters to participate actively in the modification proceeding. Only one party, CTtA, requested an extension oftheori~inal filing deadlines, and the Bureau extended the deadlines in response to that request. Moreover, there was good reason for the International Bureau to avoid undue delay in considering a requested action that could facilitate the deployment ofbroadband services on under-utilized spectrum. LightSquared's filing involved familiar MSS/ATC operations and technologies and did not involve any change to the technical parameters of LightSquared's satellite and ATC transmitters. LightSquared's proposal involved only whether consumer devices would need to have both satellite and terrestrial capability in all cases and thus did not require significant technical or engineering review - with one exception. That one exception - presented during the comment period on the requested modification - was the newly raised concern about overload interference from LightSquared's ATC transmitters to GPS devices. Notably, the interference concerns were based on transmissions from LightSquared's base stations, yet LightSquared's request did not seek relief from any ofthe base station requirements. Nevertheless, the Bureau promptly and effectively addressed these overload interference concerns by creating an interference resolution process, so that any commercial service would not be permitted without prior resolution ofthe GPS interference issues. This process has yielded important information about GPS interference that the Commission and the public are now able to assess. Your letter further inquires (Question 3) as to the Commission staff's reasons for adopting, in March 2010, two conditions on the SkyTerralLightSquared transaction that required FCC approval before LightSquared could lease spectrum or make more than 25% of its network capacity available to the two largest wireless providers. Absent such conditions, LightSquared would have been able to avoid Commission review of wholesale transactions that could raise significant public interest issues. The Commission has rules, codified at 47 C.F.R. §§ 1.9001-1.9080, that generally provide for a review process for spectrum leasing and wholesaling by wireless providers. But at the time ofthe SkyTerra/LightSquared transaction, there were no comparable rules for MSS spectrum. The conditions proposed by LightSquared were accepted by the staffas part of its public interest analysis ofthis particular transaction because they helped to address this gap, which existed at the time. The Commission has since adopted a rule ofgeneral applicability that addresses the spectrum-leasing issue on an industry-wide basis and 6 UghtSquared Subsidiary LLC Requestfor Modification ofits Authorityfor an Ancillary Terrestrial Component, Order, SAT-MOD-20101118-00239 (Inl'l Bur., reI. Nov. 26, 2010). Page 4-The Honorable Cliff Stearns without reference to the market positions ofthe carriers involved in the lease arrangement. 7 You asked (Question 4) why the International Bureau waived the integrated service rule for MSSIATC devices as to LightSquared. The Bureau explained the reasons for this action in its January 2011 Conditional Waiver Order. Those reasons included that LightSquared was (I) "already a significant and substantial provider" of MSS; (2) making significant efforts to rationalize narrow, interleaved portions of L-Band spectrum with lnrnarsat which operates in the same band, thus supporting deployment of broadband MSS and MSSIATC services in the band; (3) investing over $50 million in dual-mode (that is, terrestrial and satellite) service and devices; (4) subject to "significant terrestrial buildout milestones"; and (5) commining as part ofthe waiver decision to take further actions that would "ensure consistency" with the underlying purposes ofthe FCC rule requiring integration of ATC and MSS operations, by requiring that LightSquared continue actively to market its MSS and to offer dual-mode devices at prices "competitive with similar terrestrial-only devices."g Finally, in response to your inquiry (Question 6) whether the Commission has independently evaluated the recent NTIA recommendations and related materials, the Commission has put out for public comment the questions raised by those materials. Initial comments were filed on March 16,2012, and reply comments are due on March 30. After receiving those comments, the Commission and its expert technical staff will review the relevant materials, and the comments regarding them, as part ofthe ordinary decision-making process. I appreciate this opportunity to respond to your questions. Sincerely, - ulius Genachowski Enclosure 7 Fixed alld Mobile Services ill the Mobile Satellite Service Bands at 1525-1559 MHz alld 1626.5 1660.5 MHz, 1610-1626.5 MHz and 2483.5-2500 MHz, and 2000-2020 MHz alld 2180-2200 MHZ, ET Docket No. 10-142, Reportemd Order, 26 FCC Red 5710 (20 II). 8Collditional Waiver Order, 26 FCC Red at 581-83,~~29-35. LIGHTSOUARED MSS/ATC CHRONOLOGY 2001 • Commission issues Notice 0/Proposed Rulemaking to pennit mobile satellite service providers to offer an ancillary component in response to requests filed by Mobile Satellite Ventures Inc. (predecessor ofSkyTerra/LightSquared) and New ICO Global Communications. ~Invites comment on whether the proposed rules would protect GPS systems. See Flexibility for Delivery ofCommunications by Mobile Satellite Service Providers in the 2 GHz Band, the L-Band and the 1.6/2.4 GHz band, 1B Docket No. 01-185, Notice o/Proposed Rlilemaking, 16 FCC Rcd. 15,532 (2001). 2003 • Commission adopts rules pennitting MSS licensees to integrate ATC into their satellite networks to provide mobile service to areas where satellite signals are degraded or blocked (e.g., urban areas and inside ofbuildings). See Flexibility for Delivery ofCommunications by Mobile Satellite Service Providers in the 2 GHz Band, the L-Band, and the 1.6/2.4 GHz Bands, 1B Docket Nos. 01-185,02-364, Report and Order and Notice 0/Proposed Rlilemaking, 18 FCC Rcd. 1962 (2003) (2003 Order), as modified by Order on Reconsideration, 18 FCC Rcd. 13,590 (2003). ~Rules require MSS licensees to offer an integrated satellite and terrestrial service - they must maintain a viable satellite service and cannot offer terrestrial service separately. ~Rules also allowed up to 1,725 terrestrial base stations to be deployed in the L-Band, including spectrum adjacent to and below the GPS band. 2004 • International Bureau authorizes SkyTerra (fonnedy Mobile Satellite Ventures), to offer an integrated MSSIATC service to users equipped with dual-mode MSSIATC mobile devices. ~Consistent with 2003 Order, SkyTerra is authorized to operate expansive ATC, including up to 1,725 terrestrial base stations in the L-Band. See Mobile Satellite Ventures Subsidiary LLC Application for Minor Modification ofSpace Station License for AMSC-I, File Nos. SAT-MOD 200311 18-00333, SAT-AMD-200311 18-00332, SES-MOD-20031118-01879, Order and Authorization, 19 FCC Rcd. 22,144 (lB 2004). 2005 • Commission modifies the MSS/ATC rules in response to petitions for reconsideration of the 2003 Order. See IB Docket No. 01-185, Memorandum Opinion and Order and Second Order on Reconsideration, 20 FCC Rcd. 4616 (2005) (ATe Reconsideration Order). }:> Removes the 2003 Order's limitation on the number ofterrestrial base stations (1,725) that may be deployed, provided operations remain within specified technical parameters. }:> Revised rules are consistent with the recommendations ofthe GPS industry and the Executive Branch (including input from the Department ofDefense). }:> Commission extensively discusses potential overload interference from SkyTerra's L-Band ATC base stations to lnmarsat mobile satellite terminals, as well as potential overload interference from 2 GHz ATC mobile devices operating above 1995 MHz to PCS mobile receivers operating in the adjacent band below 1995 MHz. }:> No one raises GPS receiver overload interference issue. March-April 2009 • Harbinger and SkyTerra together file an application for transfer ofcontrol of SkyTerra to Harbinger. • SkyTerra files an application on April 29 for modification of its authority for an ancillary terrestrial component, including requests for waivers ofa number ofthe Commission's rules for MSS/ATC operation. • Commission invites public comment on both requests, triggering extensive comments. July-August 2009 • GPS industry raises concerns about SkyTerra's application for ATC modifications, stating that the existing out-of-band emissions limits would be insufficient to protect against interference to GPS from LightSquared's planned low power base stations and indoor "femto-cells." }:> Out-of-band emissions are not the same as receiver overload, which is the basis ofthe current controversy. }:> No one raises GPS receiver overload issue. • SkyTerra and the U.S. GPS Industry Council submit a joint letter to the Commission stating that the out-of-band emissions interference issues had been resolved. No commenter raises any other concerns about GPS interference. March IS, 2010 • National Broadband Plan Recommendation 5.8.4 calls for the FCC to accelerate terrestrial deployment in the MSS spectrum. March 26, 2010 • Commission's bureaus and offices issue two orders addressing the 2009 Harbinger and SkyTerra requests and comments: License Transfer Order (SkyTerra Communications, Inc., Transferor and Harbinger Capital Partners Funds, Transferee Applications for Consent to Transfer Control of 2 SkyTerra Subsidiary, LLC, IB Docket No. 08-184, Memorandum Opinion and Order and Declaratory Ruling, 25 FCC Rcd 3059 (IB, OET, WTB 2010)). » Authorizes the transfer ofcontrol from SkyTerra to Harbinger, explaining Harbinger's plans to construct a hybrid-satellite-terrestrial network that provides wholesale capacity, and noting Harbinger's plans to deploy a network that will cover 100 percent ofthe U.S. population via the satellite component and ultimately over 90 percent ofthe population via its terrestrial component. » Observes that if Harbinger successfully deploys its integrated satellite/terrestrial network, it would be able to provide mobile broadband communications in areas where it is difficult or impossible to provide coverage by terrestrial base stations. » Imposes conditions designed to ensure promised public interest benefits by requiring (I) build-out of MSS/ATC network and (2) Commission review of agreement involving a spectrum lease or provision ofmore than 25% of LightSquared's network capacity to top two wireless providers. » First Order does not waive or alter MSS/ATC rules. License Modification Order (SkyTerra Subsidiary LLC Application for Modification Authority for an Ancillary Terrestrial Component, Order and Authorization, 25 FCC Rcd 3043 (IB 20 I0)). » Modifies SkyTerra's authorization to provide MSS/ATC, applying conditions to address all technical concerns raised in the comment cycle and granting a request to increase the power level ofthe base stations. » Commission's bureaus coordinate with relevant Executive Branch agencies. Second Order notes DoD's concerns about potential interference to national security systems in certain circumstances and instructs the licensee to continue to work with DoD to resolve these concerns. » No one raises GPS receiver overload interference issue. July 15,2010 • Commission follows National Broadband Plan recommendations and initiates a rulemaking to provide greater flexibility to deploy terrestrial service in the mobile satellite service. See Fixed and Mobile Services in the Mobile Satellite Service Bands at 1525-1559 MHz and 1626.5-1660.5 MHz, 1610-1626.5 MHz and 2483.5-2500 MHz, and 2000-2020 MHz and 2180-2200 MHz, ET Docket No. 10 142, Notice ojProposed Rulemaking and Notice ojInquiry, 25 FCC Rcd. 9481 (2010); see also Report and Order, ET Docket No. 10-142,26 FCC Rcd 5710 (20 II) (subsequent Order). September 15,2010 • GPS Industry Council files comments in MSS rulemaking proceeding that raise the possibility of receiver overload interference to GPS receivers at a distance of about 100 meters from ATC base stations based on state-of-the-art filtering, and state that for much of the mobile consumer GPS devices in use, including public 3 safety (e.g., 911 cellphones), the harmful interference effect would be somewhat worse. ~Council further states that "[i)n earlier Commission proceedings, the Council has worked collaboratively with MSS operators ofATC to seek mutual agreements that facilitate successful MSS ATC operations and avoid interference to the GPS installed base. The Council believes that solutions are available to mitigate the otherwise unavoidable harmful effects described in these comments and looks forward to working collaboratively with interested parties to explore these issues and potential solutions." Sept. 15,2010 Comments, ET Docket No. 10-142, at iii. November-December 2010 • November 15: LightSquared announces the successful launch of its first next generation satellite, SkyTerra I. • November 18: LightSquared files a request to modify its MSS/ATC authority, consistent with the MSSIATC rules, to accommodate its business plan of selling data network capacity at wholesale to other terrestrial service providers. The request seeks to allow those service providers to offer terrestrial-only handsets at the same power levels and conditions previously granted. See LightSquared Subsidiary LLC Request for Modification of its Authority for an Ancillary Terrestrial Component, SAT-MOD-20 I0 1118-00239. • International Bureau places LightSquared's November 18 request on Public No/ice, with 10-day period for initial comments. See Policy Branch Information, Satellite Space Applications Accepted for Filing, Report No. SAT-00738, Public No/ice (reI. Nov. 19, 20 I0). • In response to an extension request from CTIA, Bureau extends comment deadline to December 2, 2010, with replies due December 9,2010. See LightSquared Subsidiary LLC Request for Modification of its Authority for an Ancillary Terrestrial Component, SAT-MOD 20101118-00239, Order (IB, Sat. Div., reI. Nov. 26,2010). • In their filed comments, GPS industry, GPS users and federal interests object to LightSquared's planned MSS/ATC deployment based on a concern about potential GPS interference due to "receiver overload"; argue that the under a wholesale business model, LightSquared would no longer be motivated to protect its own satellite service. ~GPS community submits limited technical data and no mitigation proposal. January 26, 2011 • International Bureau issues Conditional Waiver Order modifying LightSquared's authorization. See LightSquared Subsidiary LLC Request for Modification of its Authority for an Ancillary Terrestrial Component, SAT-MOD-201 0 1118-00239, 4 Order andAuthorization, 26 FCC Rcd 566 (18 Jan 2011)(Conditional Waiver Order). ~Denies LightSquared's request for a determination that LightSquared's proposal is consistent with existing MSSIATC mobile terminal rules. ~Provides a conditional waiver ofthe MSSIATC "integrated services" rule to allow LightSquared's wholesale customers to offer their retail users mobile terminals with only terrestrial capability, rather than "dual mode" handset capability (i.e., the ability to communicate in a single handset or terminal via either a satellite or a terrestrial network). , Imposes conditions to ensure that LightSquared will continue to provide a commercially competitive satellite service and will continue to develop and make available dual mode MSSIATC-capable devices. ~Establishes a process to investigate the GPS overload interference issue and stipulates that UghtSquared may not offer commercial service until the process is complete and the risk ofharmful interference has been resolved. June-August 2011 • Technical Working Group submits report concerning results oftesting on the GPS receiver overload issues. ~Commission issues Public Notice requesting comment on the report. See Comment Deadlines Established Regarding the LightSquared Technical Working Group Report, IB Docket No. 11-109, Public Notice (reI. June 30, 2011). • LightSquared states it will not utilize the upper 10 MHz ofthe L-Band in order to satisfy interference concerns. • Commission receives over 3,000 comments in the interference resolution proceeding. September 2011 • Commission releases Public Notice requiring additional testing. See Status of Testing in Connection with LightSquared's Request for ATC Commercial Operating Authority, IB Docket No. 11-109, Public Notice (reI. Sept. 13,2011). February 2012 • NTIA files letter in the interference resolution proceeding stating that it has monitored the testing done through the interference resolution process and has coordinated additional testing of LightSquared's equipment by other federal agencies. NTIA concludes that LightSquared's proposed mobile broadband network will impact GPS services and there currently is no practical way to mitigate the potential harmful interference from LightSquared's planned terrestrial operations in the) 525-1559 MHz band. • International Bureau issues Public Notice seeking comment on whether it should (I) vacate the January 2011 Conditional Waiver Order "due to LightSquared's 5 inability to address satisfactorily the legitimate interference concerns surrounding its planned terrestrial operations" and (2) modify LightSquared's license "to suspend indefinitely LightSquared's underlying ATC authorization, first granted in 2004, to an extent consistent with the NTIA Leller." International Bureau Invites Comment on NTIA Letter Regarding LightSquared Conditional Waiver, IB Docket No. 11-109, Public Notice (reI. Feb 15,2012). ~Comments on Public Notice due (after extension) on March 16; replies due on March 30. See LightSquared Technical Working Group Report, IB Docket No. 11-109, Order (lB reI. Feb. 29,2012). 6