DIRECTV 2005 Annual Report Download - page 26

THE DIRECTV GROUP, INC.
Union, or ITU, a specialized agency of the United Nations within which governments and the private
sector coordinate global telecommunications networks and services. Depending upon the circumstances,
noncompliance with legislation or regulations promulgated by these entities could result in the
suspension or revocation of our licenses or registrations, the termination or loss of contracts or the
imposition of contractual damages, civil fines or criminal penalties.
This section sets forth a summary of regulatory issues pertaining to our operations and is not
intended to describe all present and proposed government regulation and legislation affecting the
MVPD industry or our business.
FCC Regulation Under the Communications Act. The Communications Act gives the FCC broad
authority to regulate the operations of our company.
The ownership and operation of our DBS/DTH system is regulated by the FCC primarily for:
• the licensing of DBS and DTH satellites, earth stations and ancillary authorizations;
• the assignment of frequencies and orbital slots, the relocation of satellites to different orbital
locations or the replacement of an existing satellite with a new satellite;
• compliance with the terms and conditions of assignments and authorizations, including required
timetables for construction and operation of satellites;
• avoidance of interference by and to DBS/DTH operations with operations of other entities that
make use of the radio spectrum; and
• compliance with the Communications Act and FCC rules governing U.S.-licensed DBS and DTH
systems.
The FCC grants authorizations to satellite operators that meet its legal, technical and financial
qualification requirements. The FCC conditions such authorizations on satisfaction of ongoing due
diligence, construction, reporting and related obligations.
All of our satellites and earth stations are licensed by the FCC. While the FCC generally issues
DTH space station licenses for a fifteen-year term, DBS space station and earth station licenses are
generally issued for a ten-year term, which is less than the useful life of a healthy direct broadcast
satellite. Upon expiration of the initial license term, the FCC has the option to renew a satellite
operator’s license or authorize an operator to operate for a period of time on special temporary
authority, or decline to renew the license. If the FCC declines to renew the operator’s license, the
operator is required to cease operations and the frequencies it was previously authorized to use would
revert to the FCC.
Currently we have several applications pending before the FCC, including applications to launch
and operate DIRECTV 9S, a next-generation hybrid satellite with spot beams in both Ku and
Ka-Bands, and DIRECTV 13, a Ku-Band satellite optimized for service to mobile platforms. In
general, the FCC’s approval of these applications is required for us to continue to expand our range of
service offerings while increasing the robustness of our satellite fleet. We may not obtain these
approvals in a timely fashion or at all.
As a DBS/DTH licensee and operator we are subject to a variety of Communications Act
requirements, FCC regulations and copyright laws that could materially affect our business. They
include the following:
•Local-into-Local Service and Limitation on Retransmission of Distant Broadcast Television
Signals. The Satellite Home Viewer Improvement Act, or SHVIA, allows satellite carriers to
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