Over the last few years the U.S. Federal Communications Commission (FCC) has streamlined its rules in order to expedite the process of authorizing the operation of satellites in the United States. The review process for a satellite application used to take two to three years but now can take as little as a year. 

The Bifurcated Review Approach

The FCC places incoming satellite applications in a queue and then classifies them as either geosynchronous orbit (GSO) and non-geosynchronous orbit (NGSO) satellites. GSO applications are reviewed on a “first-come, first-served” basis, while NGSO applications are reviewed in groups for a given frequency band. 

GSO Applications

Applications for GSO satellites are reviewed on a first-come, first-serve basis. When someone files an application, the FCC places this application, known as the lead application, on public notice and invites comment. Subsequently filed, mutually exclusive applications are included in the queue according to their filing date and time. If for any reason the FCC cannot grant the lead application, it will dismiss it and begin review of the next application in the queue. This process continues until an application is granted.

The winner receives authorization to operate on the entire requested frequency band(s), and because GSO satellites are spaced 2 degrees apart, it is possible to obtain authorization for an entire band as the satellite orbital separation allows for frequency reuse. 

NGSO Applications

Applications for NGSO satellites are reviewed in groups for a given frequency band. The review process starts when someone files an application to use spectrum. At this point, the FCC issues a public notice inviting comment and establishing a cut-off date for additional applications to be considered together with the lead application.

Once the cutoff date passes and all applications are reviewed, the FCC dismisses unacceptable applications such as when the application does not demonstrate that the applicant is qualified to operate a satellite system. After the short list of successful applications is complete, the spectrum is divided equally among those applicants.

NGSO satellites communicate primarily with omnidirectional ground antennas, therefore, it is not possible to reuse frequency bands as is the case with GSO satellites where directional ground antennas can point to a single satellite. For this reason, dividing spectrum equally among the qualified NGSO applicants seems to be the most equitable solution. Keep in mind that it is possible for the parties to negotiate their bandwidth assignments before the final licenses are granted, and even to purchase spectrum rights from one another after the licenses are granted. 

Frequency Allocations and Service Rules

The first-come, first-serve approach as well as the group review approach assume three things: (1) that there is an international frequency allocation by the International Telecommunications Union (ITU); (2) that there is a domestic frequency allocation by the FCC; and (3) that there exist FCC service rules for the frequency allocation.

If an application if filed before there is an ITU allocation, the FCC will dismiss the application as premature. In turn, if an application is filed after there is an ITU allocation but before an FCC allocation, the applicant must file a waiver of the domestic Table of Frequency Allocations.

Finally, if an application is filed after allocations are in place, but before FCC service rules, the FCC will allow the operation of the satellite under default rules until rules are enacted. 

To Prevent Speculative Applications

To help deter speculative applications and to ensure that applicants make a financial commitment to construct and launch their satellites, the FCC requires the posting of a multi-million dollar bond. In additional to the bond, applicants are required to meet certain milestones which include contract execution, a design review, commencement of satellite construction and launch. The bond requirement is reduced proportionally after each milestone is met.

Raul Magallanes runs a Houston-based law firm focusing on telecommunications law. He may be reached at +1 (281) 317-1397 or by email at raul@ rmtelecomlaw.com.