Sec. 25.143  Licensing provisions for the 1.6/2.4 GHz mobile-satellite 
          service.

    (a) System License: Applicants authorized to construct and launch a 
system of technically identical non-geostationary satellite orbit 
satellites will be awarded a single ``blanket'' license covering a 
specified number of space stations to operate in a specified number of 
orbital planes.
    (b) Qualification Requirements. (1) General Requirements: Each 
application for a space station system authorization in the 1.6/2.4 GHz 
mobile-satellite service shall describe in detail the proposed satellite 
system, setting forth all pertinent technical and operational aspects of 
the system, and the technical, legal, and financial qualifications of 
the applicant. In particular, each application shall include the 
information specified in Sec. 25.114.
    (2) Technical Qualifications: In addition to providing the 
information specified in paragraph (b)(1) of this section, each 
applicant shall demonstrate the following:
    (i) That the proposed system employs a non-geostationary 
constellation or constellations of satellites;
    (ii) That the proposed system be capable of providing mobile 
satellite services to all locations as far north as 70 deg. latitude and 
as far south as 55 deg. latitude for at least 75% of every 24-hour

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period, i.e., that at least one satellite will be visible above the 
horizon at an elevation angle of at least 5 deg. for at least 18 hours 
each day within the described geographic area;
    (iii) That the proposed system is capable of providing mobile 
satellite services on a continuous basis throughout the fifty states, 
Puerto Rico and the U.S. Virgin Islands, U.S., i.e., that at least one 
satellite will be visible above the horizon at an elevation angle of at 
least 5 deg. at all times within the described geographic areas;
    (iv) That operations will not cause unacceptable interference to 
other authorized users of the spectrum. In particular, each application 
shall demonstrate that the space station(s) comply with the requirements 
specified in Sec. 25.213.
    (3) Financial Qualifications: Each applicant for a space station 
system authorization in the 1.6/2.4 GHz mobile-satellite service must 
demonstrate, on the basis of the documentation contained in its 
application, that it is financially qualified to meet the estimated 
costs of the construction and launch of all proposed space stations in 
the system and the estimated operating expenses for one year after the 
launch of the initial space station. Financial qualifications must be 
demonstrated in the form specified in Sec. 25.140 (c) and (d). In 
addition, applicants relying on current assets or operating income must 
submit evidence of a management commitment to the proposed satellite 
system. Failure to make such a showing will result in the dismissal of 
the application.
    (c) Replacement of Space Stations Within the System License Term. 
Licensees of 1.6/2.4 GHz mobile-satellite systems authorized through a 
blanket license pursuant to paragraph (a) of this section need not file 
separate applications to construct, launch and operate technically 
identical replacement satellites within the term of the system 
authorization. However, the licensee shall certify to the Commission, at 
least thirty days prior to launch of such replacement(s) that:
    (1) The licensee intends to launch a space station that is 
technically identical to those authorized in its system authorization, 
and
    (2) Launch of this space station will not cause the licensee to 
exceed the total number of operating space stations authorized by the 
Commission.
    (d) In-Orbit Spares. Licensees need not file separate applications 
to operate technically identical in-orbit spares authorized as part of 
the blanket license pursuant to paragraph (a) of this section. However, 
the licensee shall certify to the Commission, within 10 days of bringing 
the in-orbit spare into operation, that operation of this space station 
did not cause the licensee to exceed the total number of operating space 
stations authorized by the Commission.
    (e) Reporting requirements. (1) All operators of 1.6/2.4 GHz mobile-
satellite systems shall, on June 30 of each year, file with the 
International Bureau and the Commission's Columbia Operations Center, 
Columbia, Maryland, a report containing the following information 
current as of May 31st of that year:
    (i) Status of satellite construction and anticipated launch dates, 
including any major problems or delays encountered;
    (ii) A listing of any non-scheduled space station outages for more 
than 30 minutes and the cause or causes of the outage;
    (iii) A detailed description of the utilization made of the in-orbit 
satellite system. That description should identify the percentage of 
time that the system is actually used for U.S. domestic or transborder 
transmission, the amount of capacity (if any) sold but not in service 
within U.S. territorial geographic areas, and the amount of unused 
system capacity; and
    (iv) Identification of any space stations not available for service 
or otherwise not performing to specifications, the cause or causes of 
these difficulties, and the date any space station was taken out of 
service or the malfunction identified.
    (2) All operators of 1.6/2.4 GHz mobile-satellite systems shall, 
within 10 days after a required implementation milestone as specified in 
the system authorization, certify to the Commission by affidavit that 
the milestone has been met or notify the Commission by letter that it 
has not been met. At its

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discretion, the Commission may require the submission of additional 
information (supported by affidavit of a person or persons with 
knowledge thereof) to demonstrate that the milestone has been met.
    (f) Safety and distress communications. (1) Stations operating in 
the 1.6/2.4 GHz Mobile-Satellite Service that are voluntarily installed 
on a U.S. ship or are used to comply with any statute or regulatory 
equipment carriage requirements may also be subject to the requirements 
of sections 321(b) and 359 of the Communications Act of 1934. Licensees 
are advised that these provisions give priority to radio communications 
or signals relating to ships in distress and prohibits a charge for the 
transmission of maritime distress calls and related traffic.
    (2) Licensees offering distress and safety services should 
coordinate with the appropriate search and rescue organizations 
responsible for the licensees service area.
    (g) Considerations involving transfer or assignment applications. 
(1) ``Trafficking'' in bare licenses issued pursuant to paragraph (a) of 
this section is prohibited, except with respect to licenses obtained 
through a competitive bidding procedure.
    (2) The Commission will review a proposed transaction to determine 
if the circumstances indicate trafficking in licenses whenever 
applications (except those involving pro forma assignment or transfer of 
control) for consent to assignment of a license, or for transfer of 
control of a licensee, involve facilities licensed pursuant to paragraph 
(a) of this section. At its discretion, the Commission may require the 
submission of an affirmative, factual showing (supported by affidavits 
of a person or persons with personal knowledge thereof) to demonstrate 
that no trafficking has occurred.
    (3) If a proposed transfer of radio facilities is incidental to a 
sale of other facilities or merger of interests, any showing requested 
under paragraph (g)(2) of this section shall include an additional 
exhibit which:
    (i) Discloses complete details as to the sale of facilities or 
merger of interests;
    (ii) Segregates clearly by an itemized accounting, the amount of 
consideration involved in the sale of facilities or merger of interest; 
and
    (iii) Demonstrates that the amount of consideration assignable to 
the facilities or business interests involved represents their fair 
market value at the time of the transaction.
    (h) Prohibition of certain agreements. No license shall be granted 
to any applicant for a space station in the mobile satellite service 
operating at 1610-1626.5/2483.5-2500 MHz if that applicant, or any 
persons or companies controlling or controlled by the applicant, shall 
acquire or enjoy any right, for the purpose of handling traffic to or 
from the United States, its territories or possession, to construct or 
operate space segment or earth stations, or to interchange traffic, 
which is denied to any other United States company by reason of any 
concession, contract, understanding, or working arrangement to which the 
Licensee or any persons or companies controlling or controlled by the 
Licensee are parties.
[ 59 FR 53328 , Oct. 21, 1994, as amended at  61 FR 9945 , Mar. 12, 1996;  62 FR 5930 , Feb. 10, 1997]