Steve Mehs
04-18-03, 02:43 AM
The Federal Communications Commission is considering a requirement for future satellite licensees that would force them to post a performance bond in order to secure an orbital slot.
A handful of commercial satellite operators recently approached staff with the FCC's International Bureau on the bond issue. According to their joint filing at the commission, the FCC is studying a requirement for a satellite applicant to post a performance bond amounting to $10 million for each orbital slot.
The bond's aim is to encourage companies to utilize their orbital resources within the milestone requirements, and not sit on an empty orbital location.
The companies told the FCC the proposed bond would not encourage growth within the U.S. satellite industry. They said the U.S. marketplace for satellite communications has flourished under the commission’s policy of open skies, and the bond would hinder that effort.
A $10 million performance bond also would create financial barriers for new entrants and small businesses that want to enter "an already risky business," the companies said. In addition, they said the bond may compel established U.S. companies to file for orbital resources through foreign administrations, which would reduce U.S. jurisdictional oversight that aims to resolve policy and security concerns.
The companies that approached the FCC's International Bureau on the bond subject are Hughes Network Systems, Lockheed Martin, Loral, Panamsat and SES Americom.
The bond proposal is part of the FCC's effort to reform space station licensing. The issue will be taken up at the commission's next meeting, scheduled for Wednesday, April 23.
From SkyReport (http://www.skyreport.com) (Used with Permission)
A handful of commercial satellite operators recently approached staff with the FCC's International Bureau on the bond issue. According to their joint filing at the commission, the FCC is studying a requirement for a satellite applicant to post a performance bond amounting to $10 million for each orbital slot.
The bond's aim is to encourage companies to utilize their orbital resources within the milestone requirements, and not sit on an empty orbital location.
The companies told the FCC the proposed bond would not encourage growth within the U.S. satellite industry. They said the U.S. marketplace for satellite communications has flourished under the commission’s policy of open skies, and the bond would hinder that effort.
A $10 million performance bond also would create financial barriers for new entrants and small businesses that want to enter "an already risky business," the companies said. In addition, they said the bond may compel established U.S. companies to file for orbital resources through foreign administrations, which would reduce U.S. jurisdictional oversight that aims to resolve policy and security concerns.
The companies that approached the FCC's International Bureau on the bond subject are Hughes Network Systems, Lockheed Martin, Loral, Panamsat and SES Americom.
The bond proposal is part of the FCC's effort to reform space station licensing. The issue will be taken up at the commission's next meeting, scheduled for Wednesday, April 23.
From SkyReport (http://www.skyreport.com) (Used with Permission)