FCC Grants License Transfer to DBSI for Meter Reading Satellites

The United States Federal Communications Commission (FCC) granted the application of EchoStar Communications Corporation and DBS Industries, Inc. (DBSI) to transfer control of E-SAT, Inc.'s mobile satellite service license to DBSI. This is the culmination of a licensing process that started in the early 1990's. DBSI is the only company licensed to provide commercial two-way data messaging using store and forward CDMA technology in conjunction with "Little LEO" low-earth-orbiting satellites. DBSI will offer a wide range of low-cost business applications, under a service called NewStar, that will include remote control and data management of distant metering and monitoring devices. Its initial focus will be on the energy sector, and in particular automated reading of energy meters in remote or hard-to-access locations. This market niche has been conservatively estimated to include more than 130 million units worldwide.

In June 2000 DBSI, in a joint venture with Surrey Satellite Technology Ltd. (SSTL), launched a secondary payload aboard the SNAP 1 (Surrey Nanosatellite Applications Platform) spacecraft to validate critical design elements required for the successful deployment of DBSI’s NewStar commercial satellite services in 2002. Surrey completed the payload from design to commissioning in only seven months. The mission, formally licensed by the FCC as ESAT-1, brings into use the United States LEOTELCOM-2 International Telecommunication Union (ITU) filing.

EchoStar and DBSI formed E-SAT in 1994 to seek authority from the FCC to launch satellites to provide low-cost satellite to Internet data services to and from fixed locations around the world. EchoStar held 80% of E-SAT and DBSI held 20%. In 1998, E-SAT was successful in obtaining a license which authorizes it to provide two-way data messaging via a constellation of low-earth-orbiting satellites. In 1999, EchoStar and DBS concluded an agreement whereby DBSI acquired an additional 60.1% of E-SAT, and that results in EchoStar holding 19.9% of E-SAT and DBSI holding 80.1%. In consideration for the sale, EchoStar was granted, among other things, rights to use up to 20% of the satellite capacity of the E-SAT system for its own purposes. This agreement was subject, among other things, to the FCC approval of the transfer of control, which was granted on November 21. DBSI anticipates completing the transfer during the next 60 days.  
  

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