- The FCC will vote on its Space Modernization Order on July 22
- It says the order is necessary to streamline the license application process
- This is necessary because of the overwhelming number of LEO applications
The Federal Communications Commission (FCC) wants to speed up the licensing process for satellite applications. It’s been taking comments on its proposed Space Modernization Order, and it plans to vote on this order at its July 22 open meeting. Since the FCC currently consists of only three commissioners and two of them are Republican, the order is virtually guaranteed to pass.
The goal of the Space Modernization Order is to turn the approval of applications, for both satellites and earth stations, into an “assembly line process,” according to FCC Chairman Brendan Carr.
The draft order circulated today would eliminate a large swath of unnecessary licensing and operating rules, per the FCC’s Delete, Delete, Delete program. It would also cut red tape to increase the speed of application processing. And it would establish “bright-line criteria” as to when an application serves the public interest and when exceptional circumstances warrant closer review.
In a call with media today, an FCC spokesperson defended the Space Modernization Order. He said the agency has been working on processing its space licensing backlog, but outdated procedures are slowing things down.
The problem stems from the fact that low-Earth-orbit (LEO) satellites have taken the world by storm. Back in the day, the space division at the FCC was only dealing with the occasional application for a geostationary-Earth-orbit (GEO) satellite. But these days, companies such as SpaceX and Amazon Leo are filing thousands of applications. And LEO satellites have only relatively short lives, which means these companies are constantly filing new applications to replace outdated satellites. In addition, they’re filing applications to make modifications to the licenses they already have.
The days of slowly scrutinizing each application via a custom process are over.
The FCC is moving forward with its Space Modernization Order even though a bill — The Satellite Streamlining Act — which shares many of the same goals and processes, is working its way through the U.S. Senate.
The FCC spokesperson said the agency has built its order to jibe with the Senate bill. In the event the Senate bill does become law, it would take precedence over the Space Modernization Order, but then, the FCC would align its rules with the law. He didn’t see any big conflicts between the two.
The FCC’s Space Modernization Order will apply to all space-related applications whether for broadband, direct-to-device (D2D) or orbital data centers.
If the FCC processes satellite applications faster, that could mean that space junk proliferates much faster as well.
The spokesperson said the proposed order continues to maintain rules related to space junk that the FCC has implemented over the years.
In addition, the new order goes one step further and requires licensees to provide data through a situational awareness system.
Impact to terrestrial broadband providers
The FCC says satellite broadband is critical to help connect all Americans to the internet, and the agency also wants the U.S. to beat other countries in the space economy.
But for the terrestrial broadband industry, satellite is a competitive threat.
In a note to investors today, analyst Peter Supino with Wolfe Research, wrote, “Over the past three months, U.S. connectivity stocks are down -21.2%. SpaceX's June IPO has reinforced management's intent to expand into broadband and mobility. Starlink's broadband opportunity is already credible and represents a clear substitute for cable and fixed wireless access.”
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