[Satellite News 03-30-10] Google, Verizon Communications and AT&T have joined forces to challenge the reach of certain U.S. Federal Communications Commission (FCC) regulations involving the mobile satellite industry, which were outlined in the National Broadband plan released in February.
    In addition to complaining about relaxing requirements on satellite providers to deliver broadband service through consumer market devices, Verizon and AT&T claim that the merger between SkyTerra and Harbinger, which was approved by the FCC, would make it more difficult for AT&T and Verizon to lease spectrum from the satellite company and that the FCC “overstepped its authority to impose that condition,” the companies said.
    In September, Harbinger announced that it had reached a deal with SkyTerra to acquire the mobile service provider through an affiliate for $262.5 million in cash, transforming SkyTerra into a private company with a total enterprise value of about $1.84 billion. The telecoms argued that the deal results in Harbinger owning 100 percent of SkyTerra and stakes in MSS providers Inmarsat and TerreStar.
    The FCC defended its decision to approve the merger while recognizing some of its potential side effects. In its approval order, the FCC wrote, “We find Harbinger’s acquisition of SkyTerra does pose some risk of anticompetitive harm for users of MSS in the near future, although we conclude that the harm is unlikely to be significant.”
    Harbinger said its post-acquisition plans include leveraging its ancillary terrestrial component (ATC) authority, granted by the FCC’s broadband plan, to construct an LTE terrestrial wireless network integrated with satellite for wholesale 4G data services on a wholesale basis. The network would be built using 23 MHz of spectrum in 1.4 GHz, 1.6 GHz and MSS/ATC L-band satellite spectrum. Following a March 29 announcement that it had completed the SkyTerra acquistion, Harbinger also said it is working with Inmarsat to acquire access to additional 30 MHz of ATC spectrum. The move surprised some analysts as a bold challenge to Google, which was left out of the deal as a network operator.
    The FCC defended Harbinger’s plan against antitrust complaints. “We find that Harbinger’s plans to provide 4G mobile wireless broadband are a significant public-interest benefit, both because of the competition it will bring in mobile wireless broadband services and because it will provide mobile wireless broadband service to traditionally underserved areas,” according to the FCC.
    Harbinger and SkyTerra plan to support these services by launching its first next-generation satellite between August and October and a second satellite in the first quarter of 2011. The business plan aims to connect a potential market of 9 million to the service, with networks operational by the end of the second quarter of 2013.
    Some industry analysts said they believe the telecoms are trying to avoid competition with LTE hybrid networks, but AT&T Senior Executive Vice President Jim Cicconi said that the issue is a matter of legality. “The commission is setting a very disturbing precedent when it implies that it may use allocation of spectrum to manipulate the wireless market. … This action is manifestly unwise and potentially unlawful.”
    In a joint statement released March 29, CEO Eric Schmidt and Verizon CEO Ivan Seidenberg made it clear that the telecom giants intend to use everything from law to net neutrality policy to protect their businesses. “The Internet has thrived in an environment of minimal regulation. While our two companies don’t agree on every issue, we do agree generally as a matter of policy that the framework of minimal government involvement should continue,” Schmidt and Seidenberg said.