Next Stop on the Licensing Assembly Line: FCC Opens Comment on Part 100 Follow-On Reforms

The Federal Communications Commission (FCC) on October 26, 2026, published a summary of its further notice of proposed rulemaking (FNPRM) in the Space Modernization for the 21st Century proceeding (SB Docket No. 25-306), formally opening the comment cycle on the next round of reforms to its new Part 100 space and earth station licensing rules. Comments are due November 25, 2026, and reply comments are due December 28, 2026.

The FNPRM was adopted alongside the FCC's July 22, 2026, Report and Order to replace Part 25 with a new Part 100 "licensing assembly line," which Holland & Knight analyzed in a previous alert. For a companion to an already sweeping reform measure, the FNPRM maintains a remarkable breadth of its own, featuring a legion of proposals touching matters from new earth station definitions to space safety to potential renewal reforms intended to deter spectrum and orbital resource warehousing. Two proposals stand out in their connection to other recent executive branch initiatives and the scope of changes that could be in the works: streamlining the use of satellite connectivity for drones and a potential ground-up overhaul of space-related experimental licensing.

Drones as ESIMs: A Satellite Pathway for UAS Connectivity

Drone operators have long looked to satellites to provide data links beyond the reach of terrestrial networks. The FNPRM seeks comment on ways to streamline licensing, noting that drones do not fit neatly into any existing license category. The FCC thus confirms that a drone may qualify as an earth station in motion (ESIM) and "utilize eligible spectrum under our part 25 and [part] 100 rules to the extent that it sends or receives radiofrequency (RF) signals to or from an authorized fixed-satellite service (FSS) satellite system." In other words, satellite-connected unmanned aircraft systems (UAS) currently have a recognized home in the FCC's earth station framework, without waiting for further rule changes.

At the same time, the FCC acknowledges that its past decisions have not specifically considered a UAS as a "discrete species of ESIM" given the nascency of the drone industry, and it asks whether it should now do so. The questions posed include:

• whether the prescriptive technical requirements adopted for earth stations aboard aircraft (ESAA), largely designed for commercial and private aviation, are appropriate for UAS
• whether drones, given their lower operating altitude and proximity to the ground, are better regulated or classified as vehicle-mounted earth stations (VMES)
• whether UAS present different or fewer interference considerations than ESAA or VMES
• whether, given their ubiquity and lower cost, UAS are more akin to consumer-facing equipment such as user terminals or supplemental coverage from space (SCS) handsets, as well as what licensing requirements, if any, should apply beyond those governing user terminals

The FCC observes that existing ESIM definitions could be read to sweep in a cell phone communicating with a satellite from a vessel, vehicle or aircraft, and that the motor-linked VMES definition could arguably reach a person using a satellite-connected device from a motorized wheelchair. The agency suggests a new "Nomadic Terminals" category, which could encompass ESIMs, user terminals, consumer handsets, Internet of Things devices and other portable equipment. The FCC would regulate such devices based on how they are used. The agency further requests input on whether user terminals and handsets should be treated as "earth stations" at all or instead authorized in bulk through equipment authorization.

The FCC states that its overarching goal is to provide spectrum access to a diverse array of UAS operators "using all eligible frequencies, without the need for individualized licensing or a heavyweight technical envelope," to foster a competitive drone connectivity market with minimal barriers to entry. It seeks comment on "any and all changes," including definitional changes, to enable UAS to have an abundance of available spectrum, and delegates authority to the Space Bureau to clarify how existing rules apply to UAS.

Other Drone Actions

The ESIM questions arrive as the FCC pursues terrestrial spectrum access for drones on a parallel track. At its October 29, 2026, open meeting, the FCC adopted a Report and Order that amends 47 C.F.R. Section 22.925 to exempt UAS from the decades-old 800 megahertz (MHz) Cellular airborne use prohibition and adds a primary mobile footnote allocation for UAS in the 824-849 MHz and 869-894 MHz bands. This action unlocks 50 megahertz of licensed, nationwide low-band spectrum for UAS. The order retains the prohibition on passengers using mobile devices aboard airborne aircraft.

That same day, the FCC adopted a Notice of Proposed Rulemaking (released October 30, 2026), proposing to modernize its rules for direct-to-device (D2D) services under its Supplemental Coverage from Space (SCS) framework rules. In it, the FCC clarified that UAS operations are permitted under the existing SCS framework in bands where there are no airborne prohibitions under the terrestrial rules. Citing the Space Modernization Report and Order and FNPRM, the FCC recognized that UAS could qualify as an ESIM generally while expressly declining to seek comment on the classification questions pending in the Space Modernization proceeding. The FCC also acknowledged that additional standardization and coexistence analysis, which may be specific to some bands, satellite deployments and configurations, may still be needed. Furthermore, at its November 19, 2026, open meeting, the FCC will consider 1) a Report and Order that would amend the rules governing the 450 MHz band, the 24.45-24.65 GHz band and the 849-851/894-896 MHz air-to-ground band to support UAS, counter-UAS technologies and expanded aviation broadband connectivity, and 2) an order opening up additional spectrum for non-geostationary orbit (NGSO) ESIMs, including UAS.

Read together, these items signal that the FCC is working to open satellite and terrestrial connectivity pathways for drones that increasingly rely on hybrid solutions. That effort parallels the U.S. Department of Transportation's Mobile Network Aviation Assessment Program, which is testing whether commercial cellular networks can support drone safety services, as described in a previous Holland & Knight Transportation Blog post. For UAS operators, satellite operators and mobile network operators, the FCC's actions and proposals provide an opportunity to shape how these pathways fit together.

Experimental Licensing Reform

The FNPRM proposes to create a new type of space and earth station license for developing experimental technologies, providing "a clear and predictable pathway to a short-term license" to test new technology or prove a concept before moving to commercial operations. Such a proposal targets a familiar challenge: Currently, space-related experiments are licensed under 47 C.F.R. Part 5 through the Experimental Licensing System, while commercial authorizations sit under 47 C.F.R. Part 25 (now Part 100). Because an operator may be testing a new satellite for a service in which it is already commercially licensed, it is often unclear which rule part applies, leading to multiple iterations and ongoing correspondence with FCC staff.

Key elements of the proposal include:

• Conversion to Commercial Authority. Perhaps most significant, the FCC proposes a process to convert an experimental license into a regular Part 100 authorization, eliminating the need to file an entirely new application or fold Part 5 satellites into a commercial license. Conversion requests would be treated as major modifications and placed on public notice, but the FCC expects that conversions not seeking additional interference protection could be granted quickly based on successful experimental operations.
• Unified Processing in the Space Bureau. The FCC proposes to consolidate all space-related experimental applications into a single process, with initial processing handled by the Space Bureau rather than split with the Office of Engineering and Technology. The FCC's primary proposal would create a new Subpart J within Part 5, with substantive space-specific rules residing in Part 100 and cross-referenced in Part 5, but it asks whether the rules instead should reside in Part 100 and whether applicants should have a choice. The FCC estimates the shift would save roughly $66,000 per year in staff review costs.
• Broad Eligibility. The pathway would cover true experiments of new technology and testing of upgrades and features further along in development. Applicants would certify that operations are only for testing, experimentation, demonstration or validation. The FCC asks whether experiments under contract with the U.S. government should be expressly included and whether Part 5 market trial rules, which require trial devices to be rendered inoperable or retrieved at the end of a trial, are practical for satellites and earth stations.
• Term and Protection. Licenses would be issued on an unprotected, non-interference basis. The Federal Register summary describes the general Part 5 term (two years, extendable to five years with justification) and a two-year term with up to one two-year renewal; commenters should address which approach should govern. Operators seeking interference protection would need a regular Part 100 license.
• No Public Notice. Consistent with current experimental practice, applications would not be placed on public notice before grant, though they would be publicly accessible. Applicants would submit the information needed to describe their system type – earth station, NGSO, GSO or variable trajectory space station (VTSS) – and the FCC asks whether a reduced subset of Part 100 information would suffice.

The FNPRM also asks practical questions that deserve careful attention from applicants: 1) how to license an experiment combining space and terrestrial or aeronautical operations (one license or two), 2) which Part 5 provisions (including Subparts A, B, C and H) should or should not apply, and 3) a global request on any modifications necessary to better accommodate space operations. Companies with experimental programs, including those supporting federal agencies, should consider how these answers might affect their development-to-commercialization timelines.

Other Key FNPRM Proposals

The FNPRM covers a wide range of additional topics, including:

• NGSO Call Sign Merging. The FCC would allow NGSO operators to consolidate satellites authorized under multiple call signs into a single NGSO satellite system under one call sign, at the licensee's option, without affecting existing license terms unless a change is requested.
• Other Earth Station Reforms. The FCC asks whether to adopt a uniform definition of "site" for the purpose of its new earth station licensing rules and whether to align Part 100 technical showings with those required under Part 2. It also asks whether to retain its receive-only earth station rules and whether licenses should be available when certain waivers are requested. Finally, the FCC asks whether to create an expedited path for U.S. market access via earth station for limited uses such as TT&C-only operations, data-only downlinks and contacts with only a limited set of teleports outside of the contiguous U.S.
• Modifications and Hosted Payloads. The FCC seeks comment on allowing RF sensing capabilities to be added or changed through a minor modification or notification, streamlining the major modification list, extending the hosted space station framework to non-U.S.-licensed hosts and payloads, and accommodating software-defined payloads shared by multiple licensees.
• Space Safety. The FCC seeks comment on several space safety proposals, including whether it should:
  • require more frequent ephemeris sharing than the eight-hour cadence encouraged in the Order for low Earth orbit (LEO) satellites
  • impose even tighter data sharing requirements on certain missions (such as those involving rendezvous and proximity operations and servicing)
  • establish a process by which the Space Bureau certifies private ephemeris tracking systems for use in complying with the new data sharing rules
  • expand the information required in space system safety reports
  • require LEO spacecraft to maintain collision avoidance capabilities through re-entry
  • adopt a one-meter presumed-trackability threshold for medium Earth orbit and geostationary Earth orbit satellites
  • require trackability in highly elliptical orbits, cislunar space and beyond the moon
  • clarify de-orbit phase collision avoidance criteria
• Intersatellite Links (ISLs). The FCC asks how to license ISLs between U.S.-licensed and non-U.S.-licensed satellites, including whether foreign systems need market access and whether a modification application or a pre-operation notification could address security concerns.
• Spectrum and GSO Reforms. The FCC 1) proposes to require full frequency reuse for all FSS and broadcasting-satellite service operations, 2) seeks a technical record on two-degree spacing earth station antenna and off-axis effective isotropic radiated power standards, and 3) proposes a rule automatically making a vacated GSO orbital location and spectrum available for reassignment unless a replacement is already in place or another in-orbit satellite is relocated within one year.
• Processing Rounds and Secondary Markets. The FCC proposes that the 10-year priority period for a processing round will begin on January 1 of the following year (e.g., a 2027 round would carry priority from January 1, 2028, to January 1, 2038) and asks whether processing round status could be exchanged on the secondary market.
• Renewals. The FCC proposes a single renewal standard for space and earth stations based on certifications of continued use and compliance and asks whether GSO licenses should now carry renewal expectancies in light of life-extension servicing and in-orbit refueling.
• National Security and Transactions. The FCC tentatively concludes that all FCC-licensed space stations should maintain a U.S.-based control point, asks whether cybersecurity requirements are warranted and seeks comment on broadening deemed-granted or immediate approval procedures for transfers of control and assignments, likely excluding transactions with greater than 10 percent foreign ownership.
• Housekeeping. The FCC proposes to close moot satellite dockets, including the orbital debris docket, to further separate application and operational rules within Part 100 and to modernize GSO application processing.

All stakeholders should note that the FCC repeatedly invites proposed rule text, cost-benefit data and specific examples. With this proposal, the FCC sets forth an opportunity to shape the operational envelopes that will define Part 100's flexibility in practice.

For additional information about the FNPRM, preparing comments due November 25, 2026, or any other FCC proceedings relating to commercial space activities and drone spectrum access, please contact the authors or another member of Holland & Knight's Satellite and Space Technology Team.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.