Sec. 25.140  Qualifications of fixed-satellite space station licensees.

    (a) New fixed-satellites shall comply with the requirements 
established in Report and Order, CC Docket No. 81-704 (available at 
address in Sec. 0.445 of this chapter.) Applications must also meet the 
requirements in paragraphs (b) through (d) of this section. The 
Commission may require additional or different information in the case 
of any individual application. Applications will be unacceptable for 
filing and will be returned to the applicant if they do not meet the 
requirements referred to in this paragraph.
    (b) Each applicant for a space station authorization in the fixed-
satellite service must demonstrate, on the basis of the documentation 
contained in its application, that it is legally, financially, 
technically, and otherwise qualified to proceed expeditiously with the 
construction, launch and/or operation of each proposed space station 
facility immediately upon grant of the requested authorization. Each 
applicant must provide the following information:
    (1) The information specified in Sec. 25.114;
    (2) An interference analysis to demonstrate the compatibility of its 
proposed system 2 degrees from any authorized space station. An 
applicant should provide details of its proposed r.f. carriers which it 
believes should be taken into account in this analysis. At a minimum, 
the applicant must include, for each type of r.f. carrier, the link 
noise budget, modulation parameters, and overall link performance 
analysis. (See, e.g., appendices B and C to Licensing of Space Stations 
in the Domestic Fixed-Satellite Service (available at address in 
Sec. 0.445 of this chapter));
    (3) The estimated costs of proposed construction and/or launch, and 
any other initial expenses for the space station(s); and
    (4) Estimated operating expenses for one year after launch of the 
proposed space station(s).
    (c) Each application for authority to construct and/or launch and 
operate a space station shall demonstrate the applicant's current 
financial ability to meet the costs specified in paragraphs (b)(3) and 
(b)(4) of this section by submitting the following financial information 
verified by affidavit:
    (1) A balance sheet current for the latest fiscal year and 
documentation of any financial commitments reflected in the balance 
sheet (such as, for example, loan agreements and service contracts) 
together with an exhibit demonstrating that the applicant has current 
assets and operating income sufficient to meet the costs specified in 
paragraphs (b)(3) and (b)(4) of this section. If the applicant is owned 
by more than one corporate parent, it must submit evidence of a 
commitment to the proposed satellite program by management of the 
corporate parent upon whom it is relying for financial resources;
    (2) If the submissions of paragraph (c)(1) of this section do not 
reflect sufficient financial resources to meet the costs specified in 
paragraphs (b)(3) and (b)(4) of this section, the applicant shall submit 
additional information as listed below:
    (i) The terms of any fully negotiated loan or other form of credit 
arrangement intended to be used to finance the proposed construction, 
acquisition, or

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operation of the requested facilities including such information as the 
identity of the creditor (or creditors), the amount committed, letters 
of commitment, detailed terms of the transaction, including the details 
of any contingencies, and a statement that the applicant complies with 
paragraph (d) of this section;
    (ii) The terms of any fully negotiated sale or placement of any 
equity or other form of ownership interest, including the sale, or long-
term lease for the lifetime of the satellite, of proposed satellite 
transponder capacity in the level of detail as specified in paragraph 
(c)(2)(i) of this section;
    (iii) The terms of any grant or other external funding commitment 
intended to be used to finance the proposed construction, acquisition, 
or operation of the requested facilities, including such information as 
the identity of the grantor(s), the amount committed, letters of 
commitment, and detailed terms of the transaction, including the details 
of any contingencies; or
    (iv) Any financing arrangements contingent on further performance by 
either party, such as marketing of satellite capacity or raising 
additional financing, will not be considered in evaluating an 
applicant's financial qualifications; and
    (3) Whatever other information or details the Commission may require 
with regard to a specific application or applicant.
    (d) Any loan or other credit arrangement providing for a chattel 
mortgage or secured interest in any proposed facility must include a 
provision for a minimum of ten (10) days prior written notification to 
the licensee or permittee, and to the Commission, before any such 
equipment may be repossessed under any default provision of the 
agreement.
    (e) An applicant found to be qualified pursuant to this section may 
be initially assigned up to two orbital locations in each pair of 
frequency bands proposed. Authorizations to construct ground spares are 
at the applicant's risk that launch authorization will not be granted by 
the Commission.
    (f) Each applicant found to be qualified pursuant to this section 
may be assigned no more than one additional orbital location beyond its 
current authorizations in each frequency band in which it is authorized 
to operate, provided that its in-orbit satellites are essentially filled 
and that it has no more than two unused orbital locations for previously 
authorized but unlaunched satellites in that band.
    (g) In the event that one or more applications satisfying the 
requirements of this section are ready for grant, any orbital location 
occupied by a satellite that is determined to be a part of a system that 
is not essentially filled may be cancelled and collocation of in-orbit 
satellites may be required. The Commission may take this action if, in 
so doing, it would allow the grant of pending applications that satisfy 
the requirements of this section. If a cancellation is made, the 
licensee will be afforded a period of 30 days to notify the Commission 
which of its assigned locations should be cancelled.
[ 62 FR 5929 , Feb. 10, 1997]