ࡱ > S U R y =- bjbjEE 7> ' ' +% + + + 8 c , + > " d % 4 u= w= w= w= w= w= w= ? B r w= . " . . w= ? = 8 / / / . v u= / . u= / / < | 9= ~ + . | = a= = < > '= C y/ 4 C $ 9= C 9= ( F& D( l / ) $ * F& F& F& w= w= / F& F& F& > . . . . C F& F& F& F& F& F& F& F& F& : BEFORE THE
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
________________________________
)
In the Matter of: )
)
SES AMERICOM, Inc. )
) SAT-PDR-20020425-00071
Petition for Declaratory Ruling )
To Serve the U.S. Market Using )
BSS Spectrum from the 105.5 W.L. )
Orbital Location )
________________________________)
To the Commission:
COMMENTS OF THE
UNITED STATES INTERNET
INDUSTRY ASSOCIATION ("USIIA")
David P. McClure
President & CEO
US Internet Industry Association
815 Connecticut Ave. NW, Suite 620
Washington, DC 20006
(703) 924-0006 Voice
(703) 924-4203 Fax
(703) 851-4784 Mobile
dmcclure@usiia.org
http://www.usiia.org
TABLE OF CONTENTS
SUMMARY 3
STATEMENT OF STANDING 3
STATEMENT OF FACTS 4
COMMENTS OF THE USIIA 4
SUMMARY OF FILING
The US Internet Industry Association ("USIIA"), the leading national trade association of companies engaged in Internet commerce, content, and connectivity; submits on behalf of its members and the industry it serves these comments in response to the petition for declaratory ruling filed by SES Americom with regard to satellite services in North America.
USIIA believes that the approval of this petition will have a beneficial effect on the national capability to deliver broadband Internet services to rural America, and will provide substantial benefits to consumers and the Internet Service Providers who serve them.
USIIA requests that the Federal Communications Commission act with all due speed to approve the Petition for Declaratory Ruling To Serve the U.S. Market Using BSS Spectrum from the 105.5 W.L. Orbital Location.
STATEMENT OF STANDING
USIIA is a national trade association of competitive companies engaged in Internet commerce, content and connectivity. Its 300 members constitute a cross-section of the Internet industry, providing consensus on policy issues that breach the competitive interests of any single member or segment of the industry.
USIIA members, through their annual dues and membership status, entrust the Association to represent their interests before regulatory and legislative bodies at the international, national and local levels. The Associations positions on issues represent a consensus of the opinions of its members, expressed through the USIIA Public Policy Committee, membership in which is open to all members in good standing; and through its Board of Directors, elected from among the membership. As the appointed representative of its members charged with advancing their economic interests and assisting in achieving and maintaining their legal and competitive parity, USIIA has standing to file these comments.
USIIA has no financial interest in the outcome of the proceedings. The comments presented are based on a consensus of the best interests of the Internet industry and its members, and are not subject to change or withdrawal due to any contracts, agreements, competitive pressures, market valuations or corporate strategies.
STATEMENT OF FACTS AND BACKGROUND
On May 17, 2002, the Commission accepted for filing a petition by SES Americom, Inc. for the operation of a new service to provide broadband Internet and other content to the US market.
In its petition, SES AMERICOM, Inc. (SES AMERICOM) requests a declaratory ruling that it is in the public interest for SES AMERICOM to offer satellite capacity to third parties that will provide direct-to-home services to consumers in the United States and certain British Overseas Territories in the Caribbean. SES AMERICOM proposes to offer this capacity on a satellite licensed by the Government of Gibraltar at 105.5 West Longitude (W.L.). The satellite, to be known as AMC-14, will use the 12.2-12.7 GHz downlink frequencies and the 17.3-17.8 GHz feeder link frequencies.
SES AMERICOM will also have a Ku/Ka-band satellite at 105 which will provide two-way Internet and broadband services direct-to-home. Consumers will require only one satellite dish to receive both the direct-to-home video and broadband services. SES AMERICOM proposes to lease capacity on AMC-14 and the satellite to be located at 105 to various companies that own and/or distribute television programming and other content, including broadband Internet services provided by independent Internet Service providers. SES AMERICOM will not itself offer any retail or consumer services.
Grant of the Petition will serve the public interest because the new SES AMERICOM service, called AMERICOM2Home, will provide more choices for consumers, provide alternative distribution channels for content owners, and enhance spectrum efficiency by taking advantage of DBS spectrum that is currently under utilized in the United States. In addition, because SES Satellites (Gibraltar) Ltd., a company formed under the laws of Gibraltar, and a wholly-owned, indirect subsidiary of SES AMERICOM, has the necessary approval from Gibraltar to employ the orbital location and frequencies specified in this Petition, the Commissions foreign license requirement is satisfied. Grant of this Petition also satisfies the public interest test because the markets of the licensing authority and the routes to be served by AMC-14 satisfy the ECO-Sat test.
In accordance with ITU procedures, the United Kingdom Administration (on behalf of Gibraltar) will need to coordinate with affected Administrations to resolve any interference issues. As evidenced in the attached Technical Appendix, studies indicate that the AMC-14 satellite can be coordinated successfully to co-exist with neighboring satellites operating at 101 W.L. and 110 W.L.
SES AMERICOM intends to commence spacecraft construction promptly after receipt of the declaratory ruling sought in this Petition. If this ruling is issued during 2002, AMC-14 could be launched as early as 2004.
COMMENTS OF THE USIIA
At present, the competitive landscape for Broadband Internet services is divided between the cable companies and the telephone companies, with cable holding a two-to-one lead for deployment at present, but with the telephone industry expected to catch up rapidly as technological issues are resolved with DSL or more advanced fiber-optic services.
While both cable and DSL have strengths as a delivery mechanism for Broadband Internet, neither of these technologies are capable of easily or economically serving the extensive rural areas of the United States that together comprise more than 30 percent of the market for Broadband. Telephone Broadband solutions are hampered by distance restrictions, and cable by the economics of delivery. Only wireless or satellite services have demonstrated the capability to deliver affordable, high-speed Internet access to the most remote rural areas, and only satellite has available sufficient spectrum bandwidth to achieve the goal of Broadband deployment nationwide in the immediate future.
Satellite services offer an opportunity to effectively compete with cable and telephone Broadband solutions in urban regions, stimulating competition. And they offer the ability to curb the negative impacts of the Digital Divide by reaching into geographic regions that can not be easily or affordably served by other platforms.
The nations 4,000-plus Internet Service Providers find themselves in a difficult position as the nation moves toward full deployment of Broadband Internet services. Current policy has virtually excluded them from participation in cable Internet, with the exception of a small handful of selected partners required under the merger conditions of AT&T/TCI and AOL/Time Warner.
ISPs do have the ability to participate as active partners in the deployment of DSL, but this deployment has not been rapid or technologically easy to effect. In addition, current proceedings before the Commission may serve to eliminate or limit the participation of ISPs in some facets of telephony-based Broadband.
Satellite services offer any ISP a low-cost alternative to deployment that also strengthens the customer relationship with rural customers and allows a reasonable return on investment. It affords a secondary channel for deployment that could be the difference between survival and extinction for service providers in this decade and the only hope of seeing Broadband connectivity for the 70 percent of the United States geography not located near major population centers.
Satellites have had difficulty competing in the broadband field because they have not been able to offer bundled video and broadband services, like that provided by the cable companies. The Americom2Home service will provide an alternative to cable using one satellite dish. The launch and operation of [a new satellite] the Americom2Home service [ that is specifically tailored to the needs of Internet Service Providers] will establish a resource that will stimulate competition, will have the resources to offer expanded products and services, will reach rural areas better than any other existing platform, and will offer expanded choices to Internet Service Providers and their customers.
USIIA strongly recommends approval of the petition as it is integral to launch of the Americom2Home service.
Respectfully submitted,
June 17, 2002
David P. McClure
President & CEO
US Internet Industry Association
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