DIRECTV 2011 Annual Report Download - page 39

DIRECTV
EAS alerts be provided in multiple languages or via text messages, which DIRECTV U.S., from orbital positions located in between those now
could also prove difficult and costly. assigned to the DBS service. Under rules that the FCC is considering, a
provider could operate a satellite in between two orbital locations where we
•Spectrum Allocation and License Assignment Rules. We depend upon the have already positioned DIRECTV U.S.’ satellites without completing
FCC’s allocation of DBS/DTH frequencies and assignment of DBS/DTH coordination of its operations and without demonstrating that such
licenses. DBS frequencies and available DBS orbital locations capable of operations would not ‘‘affect’’ the DIRECTV service. We have opposed this
supporting our business have become increasingly scarce. While we continue proposal, and believe that tweener satellites as proposed by applicants would
to explore new sources of DBS/DTH capacity, there can be no assurance cause interference to current and planned operations and impose a
that we will obtain further capacity. significant constraint on the further growth of our DIRECTV U.S. service.
In 2007, the FCC adopted new service and licensing rules for the BSS in We cannot predict what if any action the FCC may take or the effect of
the 17.3-17.8 GHz and 24.75-25.25 GHz bands, or 17/24 GHz BSS. This such a proceeding on our business.
spectrum, also known as the ‘‘reverse band’’ (in that transmissions from The FCC has also adopted rules that require satellite operators to take
these satellites to consumers would occur in spectrum currently used for certain measures to mitigate the dangers of collision and orbital debris.
uplinking programming to traditional DBS satellites), could provide a new Among other things, these rules impose certain requirements for satellite
source of additional DTH capacity. DIRECTV currently holds design and end-of-life disposal maneuvers, which apply to eight of our
authorizations for satellites in this band at two orbital locations. However, in-orbit satellites and may in the future be applied to others. We believe
foreign operators who may have international priority have indicated an that we are in compliance with all of these requirements, but the
interest in using slots that may conflict with one or both of these licenses. requirements could result in a slight reduction in the operational life of each
•Rules Governing Co-Existence With Other Satellite and Terrestrial new satellite.
Services and Service Providers in the MVPD Industry. The FCC has •Geographic Service Rules. The FCC requires DBS and 17/24 GHz BSS
adopted rules to allow non-geostationary orbit fixed satellite services to licensees to comply with certain geographic service obligations intended to
operate on a co-primary basis in the same frequency band as the one used foster the provision of DTH service to subscribers residing in Alaska and
by direct broadcast satellite and Ku-Band-based fixed satellite services. In the Hawaii. We believe that we are in compliance with these rules. The FCC
same proceeding, the FCC concluded that multi-channel video and data has not acted on petitions filed several years ago by the State of Hawaii and
distribution services, or MVDDS, can share spectrum with DBS operators an Alaska satellite television dealer claiming a violation of those rules. We
on a non-interference basis, and adopted rules and a method for assigning cannot be sure that the FCC will not require us to make potentially
licenses in that service. While the FCC has established service and technical cumbersome and costly changes to our business.
rules to protect DBS operations from harmful interference, these rules may
not be sufficient to prevent such interference, and such services may have a • FCC Conditions Imposed In Connection With the Liberty Media and
material adverse impact on our operations. In addition, one MVDDS News Corporation Transactions. In approving Liberty Media’s 2008
operator recently received a conditional waiver of the applicable rules so that acquisition of News Corporation’s equity investment in us, the FCC
it could operate its system in Albuquerque, New Mexico at substantially imposed a number of regulatory conditions on us, some of which affected
higher power levels, which may have a material adverse impact on our our business. In granting authority for subsequent transactions in 2009 and
operations in that market. 2010, the FCC conditioned its approval on continued compliance with
those conditions. Accordingly, the FCC has imposed on us program carriage
In 2006, the FCC released a notice of proposed rulemaking regarding the conditions intended to prevent discrimination against all forms of
possible operation of ‘‘tweener’’ or ‘‘short spaced’’ satellites that would unaffiliated programming; and conditions intended to ensure
operate in the same DBS uplink and downlink frequency bands as
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