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Smaller Gap Sought

FCC Tiered NGSO Reg Plan Raises Hackles, Uncertainty

FCC-proposed two-tier regulatory fees for non-geostationary orbit (NGSO) systems (see 2012100078) are dividing the satellite industry, stirring controversy and leaving stakeholders uncertain if the agency might change course, many involved in the proceeding told us. They agreed it's not clear what the FCC might do next. Industry is lobbying bureau personnel and agency staffers.

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Satellite Industry Association is usually unable to find consensus on reg fee issues, since one group paying less usually means another pays more, said President Tom Stroup. He said there have been some coalitions formed to support different perspectives, but SIA hasn't been involved. Docket 21-190 has pushback from satellite system operators. An outside counsel for one operator that lobbied against the plan said the apportionment would be more palatable if it was closer to 50/50 than 20/80.

The 2020 regulatory fee order adopted last August (see 2008310056) included an NPRM seeking comment on NGSO regulatory fee subcategories for FY 2021. At the time, the FCC said it hasn't been the agency's experience "that certain broad categories of NGSO systems require substantially more time to process than others under the current rules." By the order and NPRM adopted in May, the FCC concluded that most of its NGSO regulatory activity could be divided into two types of systems -- "less complex" ones involving 20 or fewer earth stations used for earth exploration satellite service or automatic identification systems, and everybody else. It said it agrees with commenters "that we should differentiate within the NGSO space station category for regulatory fees." The NPRM proposing the 20/80 split said, "based on our current experience and considering our costs reasonably related to regulating and overseeing all NGSO systems, we think that a 20/80 percent split between less complex systems and other NGSO systems would be appropriate."

Asked about the stance change, an FCC spokesman told us the agency's order and accompanying NPRM spoke for itself.

A regulatory attorney for another satellite operator opposed to the fee proposal said it's tough to judge what the agency might do since the eighth-floor makeup is in flux.

The agency proposal has some NGSO support. The 20/80 tiers are "well reasoned and fair" and the agency "should reject the proposals to change the apportionment of fees," Loft Orbital said. Nearly identical filings have come from operators including Astro Digital (see here) and HawkEye 360 (see here). "Less complex systems require far fewer Commission resources to regulate," BlackSky Global said, saying systems like its, involving shared spectrum and coordination, consume fewer FCC resources and full-time-employee time. The companies didn't comment.