June 29, 2012

Director General Engineering, Planning and Standards Branch Industry Canada 19th Floor 300 Slater Street Ottawa, Ontario K1A 0C8

Re: Consultation on the Licensing Framework for Fixed-Satellite Service (FSS) and Broadcasting-Satellite Service (BSS) in Canada, Canada Gazette, Part I, March 2012 (SMSE-003-12)

Dear Director General,

The Satellite Industry Association (SIA)1 welcomes the opportunity to provide Reply Comments in this proceeding. SIA is encouraged by the alignment of views among those commenting. We urge Industry Canada to take note of the strong consensus on several issues and to proceed quickly in implementing needed reforms to its licensing process and satellite license fee structure.

SIA notes that the filed comments contain no support for the use of auctions to assign satellite spectrum. SIA is among the many voices encouraging Industry Canada to adopt a first-come, first-served (FCFS) process to assign satellite spectrum at orbital positions for FSS and BSS. In their filings, SIA, Telesat, Ciel,

1 SIA Executive Members include: Artel, Inc.; The Boeing Company; The DIRECTV Group; EchoStar Satellite Services LLC; Harris CapRock Communications; Hughes Network Systems, LLC; Intelsat, S.A.; Iridium Communications Inc.; Kratos Defense & Security Solutions; LightSquared; Lockheed Martin Corporation.; Northrop Grumman Corporation; Rockwell Collins Government Systems; SES S.A.; and Space Systems/Loral. SIA Associate Members include: ATK Inc.; Cisco; Cobham SATCOM Land Systems; Comtech EF Data Corp.; DRS Technologies, Inc.; Eutelsat, Inc.; GE Satellite; Globecomm Systems, Inc.; Glowlink Communications Technology, Inc.; iDirect Government Technologies; Inmarsat, Inc.; Marshall Communications Corporation.; MTN Government Services; NewSat America, Inc.: Orbital Sciences Corporation; Panasonic Avionics Corporation; Spacecom, Ltd.; Spacenet Inc.; TeleCommunication Systems, Inc.; Telesat Canada; Ultisat, Inc.; ViaSat, Inc., and XTAR, LLC. Additional information about SIA can be found at www.sia.org. Xplornet and 95WCanSatCo all explicitly supported the implementation of a FCFS process. In addition, comments submitted by Hughes Network Systems (“Hughes”) supported FCFS implicitly by urging Industry Canada to emulate the Ofcom FCFS model. Transition to a FCFS process is also supported by comments submitted by Shaw; however, in its filing, Shaw proposed that a right-of-first- refusal be granted to direct-to-home (DTH) incumbents in certain circumstances. SIA believes that this would be unnecessary and that market forces, rather than regulatory constraints, will ensure adequate capacity for DTH providers.

Implementation of reasonable financial and administrative measures is strongly supported in the majority of the comments filed in this proceeding. In their comments, SIA, Telesat, Ciel, Hughes and Xplornet all strongly opposed the imposition of license fees prior to the operation of a satellite. The position voiced in 95WCanSatCo’s filing appears to be self-contradictory. While 95WCanSatCo opposed “all financial measures” to discourage spectrum warehousing, they also suggested that fees be assessed upon grant of license at 33% of the normal rate for the first three years. SIA urges Industry Canada not to impose a financial disincentive to investment for Canadian-licensed operators. Such financial burdens imposed before costs can be offset from revenues will ultimately raise costs to Canadian end-users.

The comments were consistent in asserting that the current Canadian satellite licensing fee structure is cumbersome and in need of reform; however, many interested parties urged Industry Canada to reconsider its proposal for reform. SIA, Telesat, Ciel, Xplornet and Hughes all expressed concern regarding the proposed three-tier fee structure and, while details of the individual comments vary, all recommended fewer tiers and lower fees. A fee structure that encourages spectral efficiency and results in fees that are broadly consistent with those imposed by other major satellite licensing administrations will make Canada attractive as a filing administration, which will benefit the Canadian public.

SIA again applauds Industry Canada for its efforts to modify and simplify the current licensing framework. We reiterate our support for a FCFS process in which license fees are due at the commencement of operations, and we look

forward to a fee structure more closely aligned with other jurisdictions which utilize a FCFS process.

Respectfully submitted,

SATELLITE INDUSTRY ASSOCIATION

Patricia Cooper, President 1200 18th St NW Suite 1001 Washington, D.C. 20036