Finding Balance in LEO Satellite Rules
By Michael O’Rielly
Many people who have followed my career know all too well
that I appreciate the deep-in-the-weeds of policy matters, and few substantive
issues capture that as well as the launch and operations of satellite
constellations. Making these systems a
reality generally requires exorbitant entrepreneurialism while adhering to thorny
and complex public policy. Existing domestic
satellite rules and regulations governed by the Federal Communications
Commission (FCC or the Commission) have proven outdated to sufficiently respond
to the dynamism happening in many parts of the satellite industry. You don’t have to take my word for it, as the
same opinion has been shared by those on Capitol
Hill, within the Commission
itself, and elsewhere.
Consider the impact of the massive interest in Low Earth
Orbit (LEOs) Satellites (a subset of NGSO FSS systems) to deliver Internet
broadband to American families and around the globe. This development has essentially forced a
reconsideration of the traditional processing round regime and how satellite
spectrum bands are shared among competing constellations. In 2016, the FCC opened up a processing round
in which 12 applicants filed to deploy LEO constellations. As is not unusual for complex satellite
projects, most either did not build or returned their licenses, but a handful
did move forward to deploy new broadband systems. In 2020 the FCC opened a second processing
round and found more interest from both new and existing licensees, with a
total of 10 applicants filing. Responsibly, the Commission opened a proceeding
last year to explore, in part, crucial satellite spectrum sharing issues raised
by the plethora of proposed LEO system applications filed over the recent years.
This topic was the subject of an October event
by New America, which I was pleased to attend. With insightful opening statements by
Commissioners Starks and Simington, the real eye-opening portion of the event
was a subsequent expert panel. Comprised
of an academic, public interest advocate, and two satellite company
representatives (SpaceX and Amazon’s Kuiper), panelists debated various aspects
of the FCC’s proceeding. Perhaps most
interesting, especially to policy wonks, was the discussion of a how best to
ensure competition in the LEO marketplace and defining appropriate protections
for all LEO applicants.
FCC Satellite Oversight and Regulatory Functions
Fundamentally, the Commission conducts two main regulatory
functions with regards to satellite applicants.
As duly outlined in the NPRM, the Commission considers whether
applicants are “legally, technically, and otherwise qualified, that the
proposed facilities and operations comply with all applicable rules,
regulations, and policies, and that grant of the application will serve the
public interest, convenience and necessity.”
That is, it seeks to ensure that eventual licensees are capable and
willing to comply with FCC rules and regulations and whether granting of the
license benefits the public interest.
It’s the process by which the Commission separates the serious and
committed from the dreamers and incapable.
Equally important, and oftentimes more complicated, is the
process for crafting the rules for use of spectrum bands allocated for satellite
services. Specifically, the Commission has
for decades opened what is known as “processing rounds” whereby applicants within
a certain window of time can seek to use identified spectrum bands to offer a
particular satellite service. Licensing
systems periodically in large groups, rather than one at a time, reduces the
pressure to be “first to file”—theoretically, resulting in less gamesmanship
and a smaller pool of sincere applications. All applicants understood that the
spectrum would be shared and that new applicants and processing rounds would
come in the future.
The burst of interest in LEOs and rapid innovation over the
last many years, however, essentially fractured this regime. With multiple new applicants filing constellation
proposals, and existing licensees filing both new applications as well as
significant modifications to their earlier filed systems, the Commission’s
processing round structure became strained.
No sooner had the first round been almost set when the Commission and
the prospective industry were already discussing another round. Rather than extend the timing of a pending
round, the Commission decided to move forward with distinct multiple rounds. In some respects, processing rounds also
assume that LEO systems have fixed and stable plans, historically true but not
in the modern age. Today, technology and plans evolve rapidly, and
earlier-licensed systems are modifying their systems even as the FCC is
licensing systems in later processing rounds.
But the messiness of the processing rounds meant that key
decisions were deferred until a later date.
One major example is that central to the processing round framework is
the idea that earlier processing rounds are protected against harmful interference
from later-licensed systems. But the
Commission never explicitly defined what that level of protection is. That is effectively where the Commission’s December
2021 item becomes so important to the discussion. In that item, the agency seeks to investigate,
digest, and determine the proper interference protections that should be given
to systems from within a processing round and from different rounds. The important goal the Commission established
for this rulemaking was that the future rules must be pro-competitive and drive
innovation, while still providing earlier processing round systems with a
reasonable level of protection for their investment backed expectations.
The justification for this line of inquiry is laudable. Historically and here as well, the Commission
is attempting to balance the need to protect investments made by early
applicants with the desire to preserve a competitive market and innovation to
be brought forth by new entrants. In
other words, how do we evaluate potential interference from new systems, and
what happens when that interference threshold is exceeded? And how does this balance with the
expectations of the satellite industry and other participants? Further, even for systems licensed in later
processing rounds—the best and first resort is coordination among operators,
rather than defaulting to the less efficient rules for settling interference
disputes. But how can the rules incentivize all parties to seek coordination
agreements?
From my outsider perspective, the receptivity of the
Commission to alternative ways to benchmark for harmful interference, and the
accumulated record, is notable. At
minimum, the agency seems to take a neutral approach to finding the appropriate
standard. And the record reflects this
as well, as some parties seek to continue an existing measurement of
interference-to-noise (commonly referred to as I/N) which is a static approach
that does not actually even look at whether the customer is impacted; others
advocate for an uneven splitting of spectrum between earlier-round and later
round systems; and the Commission spends considerable time and attention to
tee-up what is known as degraded throughput. But it also appears that the
agency goes one step further to reject the use of petitioner’s suggested solution,
I/N. Had it wanted to bless this in some
form, it could have easily adopted it as a tentative conclusion.
Degraded Throughput: A Better Interference Metric?
Even for someone who appreciates the meaty substance,
the discussion of potential interference metrics is extremely complex. At its heart, however, is the basic premise
that the Commission should adopt a standard that is based on the best available
science. The good news is that modern
technologies allow for more nuance in measuring and responding to interference
concerns among NGSOs. The agency’s
record highlights the differences between the interference-to-noise approach
and one centered on degraded throughput.
The comments submitted in the proceeding seem to
demonstrate that I/N doesn’t provide an analysis to calculate interference that
actually harms customers. Instead, it
looks to be a static threshold that can both overprotect and under-protect the
very systems it is supposed to be designed to help. The Commission’s NPRM cites comments from
various providers that “the I/N limit would reflect generic NGSO system
parameters and not the parameters of the NGSO system to be protected, it could
provide insufficient protection to an NGSO system with especially sensitive
antennas.”
Alternatively, a degraded throughput methodology compares an
actual existing satellite system’s expected and designed-for baseline
performance against the expected performance of the system encountering the
presence of a new system. While an I/N
threshold simply sets a static threshold, the degraded throughput methodology
considers how interference affects the expected performance of the system: the
output that actually affects service to customers and the metric satellite
operators actually care about.
Looking at the impact of performance requires a deeper
consideration of how a system operates to take into account elements like how a
satellite system’s capacity to transmit data might already be affected by
factors like rain, orbital nuances, or interference from other systems. Even without interference from new systems,
existing systems must already manage these challenges, and so are equipped to
do so with technologies like adaptive coding and modulation. A degraded throughput analysis looks to take
these system design choices into account to arrive at a much more accurate
representation of interference caused by a new entrant and the protections
necessary for existing satellite offerings in a band. The result is simply a more precise and
proper reflection of interference caused by a new entrant. This more careful calculation of finding
interference that actually harms customers is critical for creating the
spectrum availability for new and old systems to thrive together.
Apart from being more accurate and fairer, this approach
seems to intuitively make sense: Why
would we ignore how modern NGSO systems operate in the real world, or disregard
a tool ready made to measure impact on their actual performance? That seems nonsensical.
Critics argue that degraded throughout is just not ripe for
consideration or that it is only being advocated for by a few. In Commission parlance, those are traditionally
empty claims when opponents are out of compelling arguments. Degraded throughput is a mathematical
calculation based on certain assumption – just as I/N. Pushing off tough policy issues to another
day doesn’t resolve key issues that all satellite participants have been
seeking since the announcement of the first LEO processing. It’s also antithetical to the Commission
norms: the agency and its staff do the hard work. To the extent there are only a few advocates
for a policy position, that’s neither a rarity nor a problem. The Commission doesn’t operate by popular
opinion or counting heads. Instead, it
focuses on the merit of the arguments and substance presented.
Satellite Policy Fundamentals
No matter where any party is on the interference
metric, it is important to take a slight step back to reflect upon the issue
from a larger context. At its heart,
protections from interference are really about ensuring that spectrum allocated
to satellite is used as efficiently as possible. The more efficiently spectrum is used, the
more satellite systems can operate, and the more customers can get the high-quality
broadband that these exciting systems will bring. While the Commission could limit
satellite entry to only one provider per service (and related bands), doing so
would have drawbacks for spectral efficiency, innovation, and a competitive
marketplace.
Anyone working on spectrum policy in the last many
decades realizes that spectrum is at a premium.
Existing services, be it government or commercial offerings, are constantly
being examined to determine if a band can be reallocated or shared with a new
service. Spectrum designated for
satellite services is no different. This
means that every existing spectrum band must be used as efficiently as possible
– or risk that the Commission decides to do something else with it. Allowing multiple LEO providers to share the
same bands promotes a more defensible spectrum policy. Undeniably, degraded throughput provides an opportunity
for additional satellite providers to operate within the same bands.
Even if there was not a spectrum crunch, promoting multiple
satellite systems is in the best interest of both American national security
and American consumers. Specifically, allowing
more satellite entrants ultimately means added competition. Time and time again in the communications
arena, we have seen the benefits of competition, which tends to lead to healthy
battles to obtain consumers, the development of new innovative services, better
consumer pricing, and expanded market growth.
We also know from experience that first to the market does not always
lead to provider longevity or market security.
If it did, we would all be still using AOL for Internet Access and
email, MySpace for social media, AT&T for long distance service, or
countless other expired offerings. Maybe
even more importantly, American leadership in space technology requires this
competition between many American innovative space companies. Satellite technology, including broadband LEO
systems are already delivering in critical places around the world to maintain
American leadership, and our adversaries are already aggressively working to
narrow the gap. While they select
national champions or use government owned entities, America wins with our
vibrant private sector competing and innovation. Thus, the soundest communications policy has
proven to be ones that do not artificially limit new entrants or impose
unnecessary protections for incumbents.
* * *
I have been particularly impressed by this Commission’s
attention to important satellite matters.
With solid leadership, the agency recognizes the valuable offerings
satellites can bring to the communications marketplace and, more importantly,
consumers. It has also recognized the
need to update its regulatory structure to reflect better information and
practices (and Congress is working on this too). Adopting a new interference protection metric
more accurately determines and sets protections for an incumbent satellite
system’s harmful interference to only that actually caused by a new entrant. And in doing so, more satellite systems would
be able to flourish for consumer use.