[Satellite News 05-27-09] As a result of a May 15 decision from the European Commission (EC) awarding Inmarsat and Solaris Mobile exclusive licenses to operate S-band mobile satellite services (MSS) in Europe, the commission now faces legal challenges filed by companies that were passed over.
   ICO Global Communications, fresh off of a longstanding lawsuit against Boeing, claims that the EC’s decision is illegal because the commission did not take its legal proceeding against Boeing that prevented ICO from filing its completed application by the October 2008 deadline into account. ICO also contends that the EU lacks the authority to award spectrum on a trans-national basis.
   “We believe the just-concluded EU process jeopardizes years of international cooperation and coordination that has governed satellite communications worldwide … ICO will continue assessing its options in defending its international legal rights,” said ICO CEO Michael Corkery, in a statement.
    The EC decision could not have come at a worse time for ICO. On May 16, ICO subsidiary DBSD North America, formerly known as ICO North America, filed for Chapter 11 bankruptcy protection in the United States in order to complete a restructuring of its $750 million of convertible notes are due in August, ICO said in a statement.
DBSD North America and ICO Global have entered into agreements with holders of about 57 percent of the Notes to implement a plan of recapitalization. DBSD said it would continue to operate as-usual during the restructuring process, subject to court approval.
   While ICO Global is not involved in the Chapter 11 filing, ICO CEO Tim Bryan said in November statement that the extension of its $707 million legal battle against Boeing could affect the timetable of ICO’s S-band mobile satellite spectrum application filed with the EC in early October. At that time, ICO had not yet ordered a ground spare satellite, according to Bryan.
    Bryan resigned as CEO in February and was replaced by Corkery.
    ICO also is bringing legal action against U.K. telecoms regulator, Ofcom, over its decision to instruct the International Telecommunication Union (ITU) in Geneva to deregister spectrum already reserved and awarded for ICO mobile satellite service in February, according to a May 26 statement from ICO.
   In a response statement, Ofcom confirmed it wrote to the ITU recommending the spectrum that Ofcom previously had asked to be allocated to ICO be deregistered and reallocated to the winners of the EC’s S-band award. But the company claims the letter was never sent because ICO applied for a judicial review of the situation.
On May 25, TerreStar Europe joined the S-band battle by filing a lawsuit in a Luxembourg high court against the EC seeking the annulment of the EC’s decision.
In a statement, TerreStar said the EC’s review process was “prompt and narrowly focused,” and the EC excluded TerreStar Europe on a technicality at a preliminary stage of the selection procedure.
    TerreStar also claims that the EC misread its submission and failed to investigate what the commission claimed were inconsistencies in TerreStar’s submission.
    The European Union Telecoms Commission reiterated its justification for the decision. In a statement, EU Commissioner Viviane Reding hailed the decision-making process. “This was possible thanks to the first pan-European selection procedure. … A Europe-wide market for mobile satellite services is now becoming a reality. I call on the member states to take without any delay all the required follow up steps in order to allow a timely and proper launch of mobile satellite services,” she said.