As part of the Federal Communications Commission (FCC)’s “Space Month” initiative, the FCC has released a Notice of Proposed Rulemaking (NPRM) designed to overhaul the existing framework for space and earth station licensing.  The FCC’s stated goal is to create the “friendliest regulatory environment in the world” for the space industry.

The proposed framework would create a modular “licensing assembly line” aimed at promoting speed, predictability, and flexibility in the licensing application process, while ensuring the FCC’s compliance with its statutory obligations.  The framework is designed to route applications along different paths and to segment them for targeted review based on the specific aspects of each request.

  1. Purpose and Structure

The NPRM pivots away from prescriptive rules toward performance-based standards and is guided by three main features: 1) a review process designed to facilitate permissionless innovation, 2) an overhaul of the application materials for more efficient processing, and 3) greater freedom for applicants and licensees to design and operate their systems.

Presumed Acceptable Criteria. The NPRM proposes a new set of space system features that the FCC would presume to be acceptable. This framework would focus more on outcomes and performance of the system, rather than on prescriptive rules for designing a system. This would entail certain bright-line performance measures and characteristics of systems that the FCC would presumably find to be in the public interest. The intended purpose of this change is to support expedited review of any portions of applications that meet bright-line rules, and to allow for more targeted review.

Enhanced Application Design. The proposed framework seeks to increase processing speeds and decrease administrative burdens by using standardized, modular certifications. The application would be designed so that the FCC could easily determine completeness and then appropriately route the request for expedited processing or targeted review. The FCC expects that this application design will allow for increased automation of licensing over time.

Increased Freedom for Applicants and Licensees. The proposal seeks to increase licensees’ freedom to design, build, and operate systems by allowing licensees to create and authorize systems more easily. The FCC would not require approvals for system upgrades that create no harm and would give operators greater flexibility to continuously upgrade their systems.

The FCC proposes implementation of the new framework by replacing and reorganizing the existing rules in Part 25 with a new Part 100, with four subparts—General; Applications and Licenses; Operational Rules; and Compliance.  This approach is designed to separate application requirements from operating obligations and enforcement.

  1. Earth Station Licensing Reform

The NPRM proposes creating a new class of “Immovable” earth station and permitting nationwide blanket licensing, or “Nationwide, Non-Site Licensing,” with registration requirements and specific showings required for certain types.  Applicants fully conforming to rules could begin temporary, unprotected operations once placed on public notice, thus reducing reliance on Special Temporary Authorizations (STAs). Registrations would expire if operations do not begin within 365 days.  

The nationwide blanket licensing option would entail a two-step licensing process for operators: “the first step is a license for specific frequencies; the second step is registering and certifying to meeting all coordination requirements at the site prior to operations.”

  1.   The Licensing “Assembly Line”

The proposed licensing “assembly line” model aims to standardize application review processes to promote greater efficiency.  The proposed modular approach would allow the FCC to quickly route applications for either expedited processing or targeted review.  After submission, applicants would provide schedules tailored to their specific requests, including new schedules with orbital and frequency information.

Modular forms.  Under the proposed modular approach, applicants would only need to complete the portions of the relevant forms that pertain to their requested operations. Applicants filing Form 312s would include new schedules in their submissions: Schedule O for orbital data and certifications and Schedule F for frequency data and technical certifications.  Though a description of the proposed system would still be required, the new approach is intended to substantially reduce the narratives required in the application.

Processing timelines.  The Space Bureau would determine completeness within 30 days. Complete applications would go on 7-day public notice if no exceptions apply, 15 days otherwise, and 30 days for Section 309(b) categories.  If no action occurs within 60 days after a notice closes, the FCC would be required to explain the outstanding issues.

Expedited path and exceptions.  Applications meeting specified bright-line criteria and requesting no waivers would be presumed to be in the public interest.  These applicants are eligible for expedited processing.  Circumstances triggering targeted review include negative certifications, waiver requests, foreign ownership, processing rounds, spectral constraints, federal coordination, and market access.  

Conditional grants.  The NPRM would allow conditional grants for early operations under defined conditions, along with the option to opt into priority status for processing by posting a surety bond.  Conditional grants for expedited applications would be permitted for applications with no objections, orbital-debris deferral (ODMP filed at least 6 months before launch), and commercial coordination scenarios. Operations under conditional grants would be at the applicant’s risk on a non-interference basis.

Special Temporary Authorizations (STAs).  The FCC proposes a major overhaul of STAs.  STAs would be limited to two types: 60 or 180 days, with limited requests for extension without public notice.  Certain short-term earth station STAs would be deemed granted upon filing and fee payment. These authorizations would be streamlined for emergencies.  The goal is to incentivize applications for STAs only when necessary, in order to shorten processing timelines.

  1.  New Licensing Categories

Variable Trajectory Spacecraft Systems (VTSS).   The FCC proposes creating a new licensing category for areas of space and satellite innovation that fall outside the scope of GSO or NGSO.  The new category, VTSS, would create a pathway for spacecraft with unpredictable trajectories, including lunar missions and orbital transfer vehicles.

Other Licensing Changes.  The proposal further seeks to modify the framework for Geostationary Satellite Orbit (GSO) licensing to allow operators to file a single application requesting authority for multiple GSO satellites. This modification would permit applicants to file for and receive a GSO space station license for multiple GSO satellites.

  1. Bright-Line Application Criteria

Orbital safety.  The FCC proposes requiring applicants to submit certifications as to whether their satellite systems will comply with specific orbital debris criteria, including collision risks and human casualty risks.  The FCC would further require that all Non-Geostationary Satellite Orbit (NGSO) satellites be trackable, and that operators review and take all possible steps to assess and mitigate collision risks.  Finally, the proposal would impose affirmative obligations to limit operational debris.

Ephemeris sharing.   Ephemeris is defined as a representation of an object’s position and velocity over time, or coordinates derived from that. Under the proposed regulations, all space station licensees would be required to share ephemeris data and VTSS applicants would have to certify whether they will share propagated ephemeris and covariance data before any planned maneuvers or instead provide alternative government approvals.

Spectrum compliance.  Schedule F would contain frequency information related to the space station application.  It consolidates frequency showings and adds certifications for technical rule compliance and International Telecommunication Union (ITU) coordination. The NPRM does not propose any changes to Supplemental Coverage from Space (SCS) rules.

  1.  Processing Rounds and Priority

For NGSO systems, the FCC proposes annual, band-specific processing rounds opening January 1 and closing December 31, largely replacing any ad hoc cut-offs. Priority would be based on grant date, rather than date of filing. Spectrum-sharing protections under Part 25 would remain unchanged, with GSO systems retaining a first-come, first-served processing system.

Applicants who do not meet the surety bond criteria but who seek to operate in a processing round-eligible band may request an application to be included in the processing round to receive priority status.

  1. Milestones, Bonds, and License Terms

Milestones.  The proposal would simplify and reduce the costs associated with milestones by eliminating the milestone requirement for GSO space station licensees.  The FCC would retain interim and final milestone requirements only for NGSO satellite systems and recipients of U.S. market access grants. Recipients of an initial authorization for an NGSO satellite system, other than a Satellite Digital Audio Radio Service (SDARS) system, would be required to deploy at least one satellite in the authorized system no later than seven years after the date of the license grant.  Milestone requirements will not be imposed for recipients of a VTSS license.

Surety bonds.  Applicants seeking priority in a processing round will be held to a bonding requirement.  Specifically, an NGSO satellite system seeking authorization for 200 or more satellites would be required to post a surety bond to the U.S. Treasury in the event of a default.  The FCC proposes revising the surety bond formula by shifting from an escalating bond to a deescalating bond calculation.  Bonds would decrease with deployment and reach $0 when 90% of the authorized satellites have been deployed.

License terms.  The FCC proposes extending the license term for most space stations and earth stations, as well as NGSO and VTSS satellites, to 20 years from the date the license is granted.  Replacement space stations could be added without new applications if changes do not trigger major modifications. The goal is to reduce the number of times licensees will be required to renew their licenses and to reduce administrative burdens.

  1.  Implementation, Transition, and Enforcement

The FCC proposes delegating transition mechanics and authority for ongoing regulatory cleanup to the Space Bureau. The proposal seeks to reorganize and streamline certain technical and operational requirements to promote efficiency.

The FCC proposes applying all procedural aspects of part 100 prospectively to every licensee, while maintaining substantive obligations included in existing license authorizations.

Enforcement mechanisms would include automatic termination for failure to operate within a specified timeframe or milestone failure, revocation, forfeitures, and targeted information requests.  Consequences for penalties would be imposed, especially for materially false statements and failure to certify or notify.  

The deadline for initial comments is 45 days after Federal Register publication and the deadline for reply comments is 75 days after publication.

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Photo of Gerard J. Waldron Gerard J. Waldron

Gerry Waldron represents communications, media, and technology clients before the Federal Communications Commission and Congress, and in commercial transactions. Gerry served as chair of the firm’s Communications and Media Practice Group from 1998 to 2008. Prior to joining Covington, Gerry served as the…

Gerry Waldron represents communications, media, and technology clients before the Federal Communications Commission and Congress, and in commercial transactions. Gerry served as chair of the firm’s Communications and Media Practice Group from 1998 to 2008. Prior to joining Covington, Gerry served as the senior counsel on the House Subcommittee on Telecommunications. During his work for Congress, he was deeply involved in the drafting of the 1993 Spectrum Auction legislation, the 1992 Cable Act, the Telephone Consumer Protection Act (TCPA), CALEA, and key provisions that became part of the 1996 Telecommunications Act.

Gerry’s practice includes working closely on strategic and regulatory issues with leading IT companies, high-quality content providers in the broadcasting and sports industries, telephone and cable companies on FCC proceedings, spectrum entrepreneurs, purchasers of telecommunications services, and companies across an array of industries facing privacy, TCPA and online content, gaming, and online gambling and sports betting-related issues.

Gerry has testified on communications and Internet issues before the FCC, U.S. House of Representatives Energy & Commerce Committee, the House Judiciary Committee, the Maryland Public Utility Commission, and the Nevada Gaming Commission.

Photo of John Bowers John Bowers

John Bowers is an associate in the firm’s Washington, DC office. He is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

John advises clients on a wide range of privacy and communications issues…

John Bowers is an associate in the firm’s Washington, DC office. He is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

John advises clients on a wide range of privacy and communications issues, including compliance with telecommunications regulations and U.S. state and federal privacy laws.

Photo of Rosie Moss Rosie Moss

Rosie Moss is an associate in the firm’s Washington, DC office. She is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

Rosie advises clients on a wide range of data privacy and technology…

Rosie Moss is an associate in the firm’s Washington, DC office. She is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

Rosie advises clients on a wide range of data privacy and technology regulatory issues, including emerging artificial intelligence compliance matters. She assists clients in complying with federal and state privacy laws and Federal Communications Commission (FCC) regulations. Rosie also maintains an active pro bono practice.