BEFORE THE Federal Communications Commission WASHINGTON, D.C. 20554 In the Matter of ) ) FWCC Request for Declaratory Ruling on ) Partial-Band Licensing of Earth ) IB Docket No. 00-203 Stations in the Fixed-Satellite Service ) RM-9649 That Share Terrestrial Spectrum ) ) FWCC Petition for Rulemaking to Set ) Loading Standards for Earth Stations ) In the Fixed-Satellite Service that ) Share Terrestrial Spectrum ) ) Onsat Petition for Declaratory Order that ) Blanket Licensing Pursuant to Rule 25.115(c) ) SAT-PDR-19990910-00091 is Available for Very Small Aperture ) Terminal Satellite Network Operations at C- ) Band ) ) Onsat Petition for Waiver of Rule 25.212(d) ) to the Extent Necessary to Permit Routine ) Licensing of 3.7 Meter Transmit and Receive ) Stations at C-Band ) ) Ex Parte Letter Concerning Deployment of ) Geostationary Orbit FSS Earth Stations in the ) Shared Portion of the Ka-band ) REPLY COMMENTS OF VIACOM INC. Viacom Inc. (“Viacom”), by its attorneys and pursuant to Section 1.415 of the Commission’s rules, hereby submits its reply comments in the above-captioned proceeding. Viacom supports the comments filed by the overwhelming majority of parties to this proceeding urging the Commission to reject the proposal that would require fixed-satellite service (“FSS”) earth stations to demonstrate current, recent or imminent use of spectrum shared with the terrestrial fixed service. As these commenters make clear, this requirement is unnecessary and would jeopardize the operational flexibility that is essential to the viability of broadcast and cable networks. I. Introduction As one of the world’s leading distributors of entertainment, news and sports programming, Viacom has a strong interest in the instant proceeding. Through its broadcast and cable operations, Viacom makes extensive use of domestic C- and Ku-band satellites and FSS earth stations in order to distribute programming to tens of millions of viewers everyday. The CBS Television Network (“CBS”), a Viacom broadcast division with more than 200 affiliated stations, currently leases 10 full-time service C-band transponders on Telstar 6 and Telstar 4 and four Ku-band transponders on Telestar 6 and GE5. The Viacom Network Operations Center (“NOC”), located in Hauppauge, New York, distributes the programming of many of Viacom’s cable networks, including MTV Networks (“MTVN”) and Showtime Networks Inc. (“Showtime”). Thirty-eight channels of cable programming are uplinked from the NOC to five domestic and two non-domestic satellites (using a total of 23 transponders) and then downlinked to more than 63,000 affiliates. Black Entertainment Television, Inc. (“BET”), another Viacom cable division, distributes its three channels of programming from its Washington, D.C. headquarters to affiliates both domestically and internationally through earth station facilities located in Washington and Denver, Colorado. 2 For Viacom’s networks to function properly, they must be able to deliver network programming to their affiliates. Program delivery, in turn, requires that the affiliates’ earth stations be licensed across the full allocated band to permit the earth stations to access back-up satellites or transponders quickly in response to primary satellite or transponder failure, a breaking news story, or other unforeseen event. Although the policy favoring such full frequency clearance is well-established, the Fixed Wireless Communications Coalition (“FWCC”) asserts that licensing satellite earth stations to use the entire allocated C- and Ku-bands without inquiring into the amount of traffic to be carried is inequitable in light of the “spectrum conversation obligations” imposed on co-primary terrestrial fixed service users of the same bands.1 The Commission properly rejected the form of relief specifically requested by the FWCC, yet inexplicably proposed a slightly modified version – the “demonstrated use” proposal – intended to address the inequities alleged by the FWCC. II. The Commission’s Proposal Is An Unnecessary Response To Unsubstantiated Concerns. As an initial matter, Viacom believes that the Commission’s “demonstrated use” proposal is unnecessary because, as a number of commenters point out, the FWCC’s claim of inequitable treatment is wholly unsubstantiated.2 Home Box Office and Turner Broadcasting 1 See FWCC Request for Declaratory Ruling on Partial-Band Licensing of Earth Stations in the Fixed-Satellite Service that Share Terrestrial Spectrum, Notice of Proposed Rulemaking, FCC 00-369 (released October 24, 2000) at ¶ 33. 2 See, e.g., Comments of Home Box Office and Turner Broadcasting System, Inc., IB Docket No. 00-203, RM- 9649, SAT-PDR-19990910-00091 (filed January 8, 2001) (“HBO/Turner Comments”) at 6; Comments of the Satellite Industry Association, the Satellite Broadcasting and Communications Association, the World Teleport Association, and the Aerospace Industries Association of America, IB Docket No. 00-203, RM-9649, SAT-PDR-19990910-00091 (filed January 8, 2001) (“Satellite Industry Comments”) at 17-20; Comments of Virtual Geosatellite, LLC, IB Docket No. 00- 203, RM-9649, SAT-PDR-19990910-00091 (filed January 8, 2001) (“Virtual Geo Comments”) at 6-8. 3 System, Inc. (“HBO/Turner”) observes that fixed service microwave operators “have supplied no evidence” to support the claim that fixed service operations are being “unduly restricted by the current frequency coordination rules.”3 The National Cable Television Association (“NTCA”) correctly notes that cable operators and programmers have used the coordination process currently set out in the Commission’s rules “for years to negotiate agreements with competing spectrum users, without significant problems or complaints.”4 Virtual Geosatellite, LLC (“Virtual Geo”) properly questions why the Commission accepts the FWCC concerns regarding inequitable treatment between the services “while simultaneously asking for comment on the extent of the problem it is making admittedly stringent proposals to solve.”5 In sum, Viacom agrees that any proposal addressing the FWCC’s concerns “represents a solution in search of a problem.”6 Significantly, when given a second opportunity (through its own comments) to buttress its claims of inequitable treatment, the FWCC failed to provide any specific support at all for its claims – resorting instead to the bare assertion that “in actual practice the sharing [of spectrum] has been far from equal.”7 Given the lack of any proffered evidence indicating the need 3 HBO/Turner Comments at 6. 4 Comments of the National Cable Television Association, IB Docket No. 00-203, RM-9649, SAT-PDR- 19990910-00091 (filed January 8, 2001) (“NCTA Comments”) at 3. Similarly, Comsearch, the largest frequency coordinator in the Part 101 frequency bands, states that there is virtually no problem in achieving fixed service and FSS coordination and that the Commission’s existing coordination procedures and practices work well. See Comments of Comsearch, IB Docket No. 00-203, RM-9649, SAT-PDR-19990910-00091 (filed January 8, 2001) at 3. 5 Virtual Geo Comments at 7. 6 Satellite Industry Comments at 5. 7 Comments of the Fixed Wireless Communications Coalition, IB Docket No. 00-203, RM-9649, SAT-PDR- 19990910-00091 (filed January 8, 2001) (“FWCC Comments”) at 5. 4 to alter well-settled spectrum sharing policies, Viacom urges the Commission to reject the imposition of any form of a “demonstrated use” requirement on the FSS. III. The Commission’s Proposal Ignores The Need For Broadcast And Cable Network Operational Flexibility. In addition to unnecessarily addressing a problem that has not been shown to exist, the Commission’s proposal, if adopted, would jeopardize the operational flexibility necessary in order to maintain a viable fixed-satellite service. Specifically, the earth stations of Viacom and other FSS users must be licensed over the entire allocated band in order to permit back-up satellites or transponders to be accessed when a primary satellite or transponder is lost or when sudden news events prompt heightened demand for a particular frequency at a particular location. Yet, as many parties to this proceeding explained, the “demonstrated use” requirement would jeopardize the degree to which FSS earth stations could respond in such circumstances by significantly limiting the spectrum availability for emergency use.8 Viacom seconds these comments, and believes that when flexibility is properly seen as an operational necessity – and not as “evidence” of inequitable treatment between licensed services – any justification for the “demonstrated use” proposal necessarily fails. Unfortunately, the Commission’s “initial loading” exemption – applicable to satellite earth stations licensed for less than two years – fails to address the concerns raised by the comments opposing “demonstrated use” because it does not account for the continuing need for 8 See, e.g., Satellite Industry Comments at 33; HBO/Turner Comments at 7. 5 flexibility. 9 In this regard, Viacom agrees with the observation of Teledesic LLC, which properly asks why the “initial loading” exemption should apply two years after earth station licensing when the need for operational flexibility remains as high – if not higher – later in the license term as satellite and transponder equipment age.10 Viacom also reminds the Commission that flexibility is especially important in connection with broadcast and cable network operations. In their comments, HBO/Turner, the NCTA and The Walt Disney Company each demonstrate that full-band licensing is critical