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ATC Dead?

Inmarsat CEO Voices Concern for MSS Spectrum Changes

The push to use terrestrially the S-band and other mobile satellite services spectrum around the world may be a precursor for efforts in other bands, said Rupert Pearce, CEO of Inmarsat. “The risk is: Is this the thin edge of the wedge,” he said. “As pressure builds to free up spectrum, MSS bands look like really low hanging fruit” due to the number of consumers per bit, especially compared to terrestrial service. It will be important for the industry to work together to convince regulators of the services’ importance, said Pearce.

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Globalstar plans to engage in the FCC’s consideration of rules for potentially allowing for terrestrial use of the S-band to make sure the company is afforded similar abilities in its spectrum, said Globalstar CEO Jay Monroe. “It’s important to our long-term financial health and therefore a very important aspect to our business,” he said. Monroe and several other MSS CEOs spoke on a panel at the Satellite 2012 conference Wednesday. The FCC has said it plans to propose spectrum-use rules for the S-band, now controlled by Dish Network.

"We believe in terrestrialization of the MSS spectrum for a myriad of additional reasons,” Monroe said. “We're very bullish that the FCC will deal with this Dish proceeding in a way that is helpful to us long term.” Satellite and terrestrial services can coexist, and the addition of terrestrial use would make for far more efficient use of the spectrum, he said. Monroe voiced support for Dish’s efforts even if it were to largely leave the MSS world. Globalstar hopes to get FCC approval to provide some terrestrial service through its ATC authority this year following several satellite launches this year. The company’s authority was stopped by the agency for failing to stay compliant with MSS/ATC rules.

The ATC concept as originally envisioned by operators and regulators hasn’t been successful and is “dead,” said Brian Weimer, a lawyer at Sheppard Mullin who represents TerreStar creditors. Weimar spoke as part of a a panel on MSS spectrum late Tuesday. Diane Cornell, Inmarsat vice president for government affairs, agreed that ATC has been “difficult to implement,” but said it still makes sense from a public policy perspective. The problem with ATC has been with the financial commitment to build out a terrestrial network, rather than problems with the concept itself, she said.

Globalstar remains committed to its MSS services, with the company now in the process of launching its new constellation of satellites, said Barbee Ponder, Globalstar’s general counsel. The company hopes to eventually regain FCC authority to provide terrestrial service through ATC, “but it’s not our focus right now,” said Ponder. Given the company’s MSS push, there isn’t much concern that the FCC would seek to move more spectrum from MSS to straight terrestrial, he said.

The new spectrum expected to come online through broadcast spectrum incentive auctions will also lessen some pressure on the agency to find spectrum, said Jonathan Atkin, an analyst at RBC Capital Markets. Ponder gave a relatively optimistic view of the fight over LightSquared, saying the L-band spectrum could be put to use terrestrially within 2 or 3 years, as long as engineers are left to figure it out rather than lawyers. Weimer and Atkin said it could take a decade or more.