WASHINGTON-TRW Inc. and Motorola Inc. asked the Federal Communications Commission to investigate Mobile Communications Holdings Inc. in connection with alleged lobbying violations aimed at securing industry, congressional and Clinton administration support for a global pocket phone satellite license.
“MCHI has on its own, and in conjunction with several of its putative financial backers, made or solicited ex parte submissions to the commission” and “has solicited members of Congress, as well as the president and vice president of the United States, to intervene with the commission on its behalf, thus causing them to unwittingly violate the commission’s ex parte rules,” TRW told the FCC.
MCHI-which is seeking a big low-earth-orbit satellite license for Ellipso to compete with Motorola, TRW and Loral Corp.-says the charges are commercially motivated and the FCC should investigate the three firms for breaking rules governing the filing of strike pleadings.
“TRW, Motorola and [Loral] have not provided any basis for their allegations of misconduct, and have shown, if anything, the commission big LEO financial standard has attracted substantial concern, by Congress and the Small Business Administration among others, as a potential market entry barrier to small businesses,” said MCHI.
TRW and Motorola, which along with Loral received licenses in January 1995, have raised questions about MCHI’s financial qualifications. The two firms said the loss of $300 million in financing commitments from Artoc Suez for Technical Services and an unknown amount from Westinghouse Corp., puts MCHI’s fiscal fitness in doubt.
Motorola’s big LEO venture, Iridium, began offering stock on the open market last week.
The FCC is examining the financial showings of MCHI and Constellation Communications Inc. for big LEO licenses. The FCC says there is enough spectrum for five big LEO satellite operators.
TRW said MCHI’s claim that it has not solicited support for a big LEO license “is belied by the facts and common sense” and “simply strains credulity.”
TRW said it is aware of illegal lobbying on behalf of MCHI in the following instances:
An April 1996 letter from Jere W. Glover, chief counsel of the Small Business Administration to FCC Chairman Reed Hundt.
An undated facsimile to Cathy Sandoval, FCC, from Sheryll Cashin, Office of the Vice President, enclosing an April 30, 1996, letter to the vice president from Weldon H. Latham, a lawyer with Shaw, Pittman, Potts & Trowbridge and counsel to MCHI.
On May 8, 1996, a letter from W. David Thompson, president of Spectrum Astro Inc., to Kate Carr, special assistant to President Clinton, requesting favorable administration intervention at the FCC on MCHI’s application.
An Aug. 21, 1996, letter to Hundt from Rep. John Conyers (D-Mich.) in support of MCHI and referencing an earlier July 15, 1996, letter sent by him to Hundt.
An Oct. 2, 1996, letter to Hundt from Sens. Kit Bond (R-Mo.), Conrad Burns (R-Mont.), Larry Craig (D-Idaho), Howell Heflin (D-Ala.), Daniel Inouye (D-Hawaii), Connie Mack (R-Fla.) and Richard Shelby (R-Ala.), regarding the FCC’s financial standard for big LEO systems.
On Jan. 7, a letter from Alan R. Diamond, chairman and chief executive officer of Aon Risk Services, to the FCC.
A Feb. 24 letter from Mark Headbush, managing director of Vula Communications, to the FCC via MCHI attorney Jill Abeshouse Stern.
A March 14 letter to Hundt from Rep. Edolphus Towns (D-N.Y.) in support of the MCHI application and referencing an initial inquiry to the FCC’s secretary dated Jan. 13.
On April 11, a Lockheed Martin letter to the FCC regarding its future role in the MCHI system.
On April 16, a letter to the FCC from David Castiel, president and chief executive office of MCHI, indicating changes in financial data previously submitted to the commission.
An April 30 letter from David M. Geary, Vula Communications, to Julius Genachowski, chief counsel to Hundt, urging favorable consideration of MCHI’s application.
TRW said it was not officially notified of several of these communications.
The FCC was not available for comment.
Meanwhile, an industry advisory committee has recommended the United States seek additional spectrum for big LEO and little LEO data satellite services at the 1997 World Radio Communications Conference this fall in Geneva.
