United States Satellite Broadcasting Co. v. Federal Communications Commmission

740 F.2d 1177, 239 U.S. App. D.C. 74
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 24, 1984
DocketNos. 83-1692, 83-1693 and 83-1834
StatusPublished
Cited by1 cases

This text of 740 F.2d 1177 (United States Satellite Broadcasting Co. v. Federal Communications Commmission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Satellite Broadcasting Co. v. Federal Communications Commmission, 740 F.2d 1177, 239 U.S. App. D.C. 74 (D.C. Cir. 1984).

Opinion

Opinion for the court filed by Circuit Judge DAVIS.

DAVIS, Circuit Judge:

Petitioner-appellant, United States Satellite Broadcasting Co., Inc. (USSB), seeks review of three related decisions by the Federal Communications Commission (FCC or Commission). In No. 83-1692, USSB challenges the FCC’s denial of USSB’s Peti-’ tion for Reconsideration of an earlier order granting GTE Satellite Corporation’s (GSAT's) application to lease transponders1 on a Canadian communications satellite, Anik-C2. The transponders were to be used by GSAT's customer, United States Satellite Communications, Inc. (USCI) (formerly United States Satellite Television (USTV)) to receive television signals and retransmit them back to earth in the 11.7-12.2 GHz band. In No. 83-1693, USSB appeals the FCC’s grant of authority to GSAT to construct and operate a telemetry, tracking, and command earth station at Terre Haute, Indiana, for the purpose of controlling the Anik-C satellite. In No. 83-1834, USSB seeks review of the FCC’s adoption of a rule permitting broadcast satellite television service in the 11.7-12.2 GHz band which had previously been reserved for fixed (point-to-point) satellite service. GSAT and USCI have intervened in support of the FCC. We affirm the FCC’s action in all three cases, except for that aspect of its opinion on reconsideration of GSAT’s grant which indicates that USCI’s proposed satellite-to-home television service is a “fixed satellite service” rather than a “broadcasting satellite service.” In light of our holding in the companion case, National Association of Broadcasters, et al. v. FCC, 740 F.2d 1190 (D.C.Cir. decided today), that the statutory definition of broadcasting should be applied as written, we reverse the FCC’s denial of USSB’s Petition for Reconsideration on that one issue and remand so that the FCC may determine whether GSAT or USCI should bear the burden of ensuring that statutory broadcasting obligations are fulfilled on USCI’s satellite-to-home television channels.

I

Background

USSB is one of the eight companies which the FCC has authorized to construct and operate a high-powered direct-to-home satellite television system in the 12.2-12.7 GHz band. That system will involve earth stations beaming up television signals to satellite transponders (the “uplink”) which will then retransmit the signals back to earth (in the 12.2-12.7 GHz band) (the “downlink”) where they will be received by American residents using small dish-shaped antennas. The FCC calls this service the “Direct Broadcast Satellite Service” or “DBS.” USSB’s DBS service will compete once it becomes operational with the lower-powered satellite-to-home video service which GSAT’s customer, USCI, plans to offer in the 11.2-11.7 GHz (described infra).

In February 1982, GSAT filed with the Commission an application for authority under Section 214 of the Communications [77]*77Act of 1934 (47 U.S.C. § 214)2 to lease and utilize ten transponders on a Canadian Anik-C satellite, scheduled to be launched later that year and to become operational in mid-January 1983. Application of GTE Satellite Corporation, Feb. 17, 1982. The purpose of the lease, as stated by GSAT in its application, was “to provide interim facilities necessary for GSAT to meet customer demand prior to the launch of GSAT’s own ... satellite system in 1984.”3 According to GSAT, the leased transponders would “retransmit ... signals to and from earth stations owned by GSAT’s customers within the [northern and central] contiguous United States." GSAT said that the transponders “operate in the Ku (12-14 GHz) band” and that the type of communication signals which the transponders would retransmit “may include television, voice, data and facsimile.” GSAT stated that it had “received firm customer commitments for service on each of the proposed RF (radio or radar frequency) channels” from customers who had “placed reservations for similar ... services on GSAT’s authorized independent GSTAR system” when it became operational in 1984. GSAT also said that it did “not now provide services of the type to be provided by [the Canadian transponders] although other U.S. carriers ... [did] and additional domestic services of this type have been authorized by the Commission.” .GSAT’s application did not identify its customers or thé precise nature of its customers’ proposed service(s).

The GSAT application appeared in a FCC public notice titled Common Carrier Domestic Facilities Applications and dated March 3, 1982:

Conus [contiguous United States] ... GTE Satellite Corp. (GSAT) FORMAL (Section 63.01) Applicant requests authority to acquire by lease and operate a satellite transponder capacity of 54 Mb/s on each of 10 unprotected preemptible transponders on ANIK C satellite of Telesat Canada (Telesat) which is to be launched in late 1982 and become operational in mid-January 1983. Telesat will submit appropriate .request to the Canadian Dept, of Communications for authority to enter into the lease agreement with GSAT. Canadian satellite capacity is requested because of the unavailability of U.S. domestic satellite capacity. The use of the facility will be to provide communications services into areas not now directly served by GSAT. Communications to be provided may include television, voice, data and fascimile. The subject transponder capacity is to provide interim facilities necessary to meet customer demand prior to the launch and operation of GSAT’s own GSTAR satellite system in 1984.

The notice stated that comments or petitions could be filed by April 3, 1982, within thirty days of the date of the notice. USSB did not file a petition to deny GSAT’s application, nor did any other entity.

In June 1982, GSAT amended its application to notify the Commission of a postponement of the scheduled date of commencement of its service. GSAT characterized this change as “not major” and said that it did not require another public notice to be issued. In that amendment, GSAT disclosed that it had signed an agreement to lease capacity to United Satellite Television (USTV)4 which planned to provide television programming to “small CATV [78]*78[cable-TV] systems, hotels, motels, hospitals, low power TV and STV [subscription television or “pay TV”]5 and MDS [multipoint distribution service] operations as well as multiple and single dwellings.” According to a letter from USTV (now USCI), submitted by GSAT with its amendment, USTV planned to use frequencies in the 11.7-12.2 GHz band.6 GSAT requested expedited consideration of its application because of the financial difficulties faced by its customer, USTV. USTV’s letter repeated this request, saying that continued delay would threaten the viability of USTV’s plans.

The Commission granted the GSAT application in August 1982. GTE Satellite Corporation, 90 F.C.C.2d 1009 (1982).

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Bluebook (online)
740 F.2d 1177, 239 U.S. App. D.C. 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-satellite-broadcasting-co-v-federal-communications-cadc-1984.