In a 3-2 decision, the FCC agreed to waive its satellite bond rules to permit Rainbow DBS—the operator of the now-defunct VOOM direct broadcast satellite service—to reclaim $11.25 million in posted bonds that the company would have forfeited for failure to launch and operate five Ka-band satellites licensed in 2003 and 2004. After failing to attract enough subscribers, Rainbow DBS sold its sole operating satellite to EchoStar in 2005 and discontinued the VOOM service shortly thereafter. In a January 30 filing seeking release of the bonds, Rainbow told the FCC that it had acquired the Ka-band licenses in question “to supplement and complement its VOOM DBS service” and was forced ultimately to withdraw its construction contract for the Ka-band satellites upon terminating the VOOM service. Finding that “Rainbow is unique in that it undertook a substantial effort, both in terms of finances and good faith, to establish a satellite system during a period of time when comparable [Kaband] spectrum was available for use by other potential operators,” a majority of the Commission reasoned that a waiver of the bond rules “will not undermine the three ways in which the bond requirement works to expedite service to the public in an environment of scarce spectrum, i.e., ensuring the licensee’s financial ability to establish the licensed service, ensuring its good faith to provide the service, and discouraging the warehousing . . . of scarce spectrum.” Asserting, however, that “the bond requirement should not rise or fall on how many dollars a licensee incurs in development or whether similarly situated spectrum may or may not be available,” FCC Commissioners Michael Copps and Jonathan Adelstein dissented, observing: “the Commission created the bond requirement in the first place to avoid these very questions.”