[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2365 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2365

     To amend the Communications Satellite Act of 1962 to promote 
  competition and privatization in satellite communications, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 28, 1998

   Mr. Burns introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
     To amend the Communications Satellite Act of 1962 to promote 
  competition and privatization in satellite communications, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Satellite 
Communications Reform Act of 1998''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to promote a competitive global 
market for satellite communications services for the benefit of 
consumers and providers of satellite services and equipment and to 
provide encouragement for the continued restructuring, on a privatized 
basis, of the intergovernmental satellite organizations, INTELSAT and 
INMARSAT.

SEC. 3. FINDINGS.

    The Congress finds that--
            (1) the Communications Satellite Act of 1962 (47 U.S.C. 
        701-744; hereinafter the ``Satellite Act'') and the 
        International Maritime Satellite Telecommunications Act (47 
        U.S.C. 751-757, hereinafter the ``Maritime Act'') were enacted 
        by Congress to create global satellite communications systems;
            (2) the Satellite Act and the Maritime Act led to the 
        creation of two intergovernmental satellite organizations 
        (IGO's), the International Telecommunications Satellite 
        Organization (INTELSAT) and the International Mobile Satellite 
        Organization (INMARSAT), bodies whose memberships have grown 
        from to 143, and 26 to 82 countries respectively;
            (3) consistent with the purposes enumerated by Congress in 
        the Satellite Act and the Maritime Act, these IGO's, with 
        critical U.S. participation through its signatory, COMSAT, have 
        successfully established global satellite networks to provide 
        member countries with worldwide access to telecommunications 
        services, including critical lifeline services to the 
        developing world, and to provide distress and safety services 
        for vessels on the high seas;
            (4) by statute, COMSAT corporation (COMSAT) is the sole 
        United States signatory to INTELSAT and INMARSAT, and, as such, 
        is responsible for carrying out United States commitments under 
        the INTELSAT Agreement the INMARSAT Convention, and the 
        INTELSAT and INMARSAT Operating Agreements;
            (5) over the last 36 years, technology has radically 
        advanced, large-scale financing options immensely improved, 
        market conditions quickly matured, and international 
        telecommunications policies have shifted from those of natural 
        monopolies to those based on market forces, resulting in 
        multiple private commercial companies able to provide the 
        domestic, regional, and global satellite telecommunications 
        services that only INTELSAT and INMARSAT had previously been 
        able to offer;
            (6) the warehousing by any party of scarce satellite 
        orbital locations and limited spectrum constitutes a barrier to 
        competitive entry by new providers of satellite 
        telecommunications services;
            (7) private commercial satellite communications systems are 
        increasingly offering the latest telecommunications services to 
        more and more countries of the world with declining costs, 
        making satellite communications an attractive alternative to 
        terrestrial communications systems, particularly in lesser 
        developed countries;
            (8) while international connectivity and global safety 
        services must be ensured for all countries, technological 
        advances, declining costs, and new market opportunities have 
        combined to increase the probability that competitive private 
        commercial communications satellite systems will offer 
        international connectivity and global safety services to all 
        countries and will allow lesser developed countries to better 
        participate in the expanding private commercial satellite 
        networks;
            (9) the Satellite Act, the Maritime Act, and other 
        applicable United States laws need to be updated to encourage 
        the pro-competitive privatization of INTELSAT and INMARSAT, and 
        to ensure a competitively neutral framework for the provision 
of domestic and international telecommunications services using 
satellite systems;
            (10) the increase in competition in the international 
        satellite telecommunications market should be encouraged in 
        order to enhance technological innovation and private 
        investment, and provide benefits to consumers; and
            (11) A continuing restructuring of INTELSAT and INMARSAT, 
        based on privatization and market-oriented principles, is now 
        appropriate and desirable in order to reflect the economic 
        realities of the competitive global environment, the benefits 
        of the free market and the rapid technological change underway 
        in satellite-based services and technologies.

SEC. 4. POLICY OBJECTIVES AND IMPLEMENTATION.

    (a) Overall Objectives.--The overall objectives of the United 
States for the international satellite telecommunications market are 
to--
            (1) foster a competitive, market-based environment in 
        satellite communications where consumers worldwide will reap 
        the benefits of enhanced communications services at competitive 
        rates;
            (2) achieve open, equitable, and reciprocal market access 
        in international satellite telecommunications services;
            (3) reduce or eliminate barriers to market entry and other 
        trade distorting policies and practices in international 
        telecommunications services;
            (4) encourage efficient and economical use of the 
        electromagnetic frequency spectrum and continued technological 
        advances in satellite technology for the benefit of all 
        mankind; and
            (5) recognize the legitimate interests of all nations in 
        having access to adequate international telecommunications 
        satellite services and global connectivity.
    (b) Pro-Competitive Measures, INTELSAT.--The United States party to 
the INTELSAT agreement and the United States Signatory to INTELSAT and 
COMSAT are directed to take all steps necessary and appropriate to--
            (1) achieve the continuing restructuring of the 
        intergovernmental satellite organization, beyond that agreed to 
        by the INTELSAT Assembly of Parties on March 30-31, 1998, that 
        will result in increased private competition in international 
        satellite telecommunications services;
            (2) ensure that the INTELSAT restructuring plan adopted by 
        the INTELSAT Assembly of Parties at its meeting on March 30-31, 
        1998 is implemented in a pro-competitive manner;
            (3) establish safeguards which will ensure that any future 
        INTELSAT privatized successor entity or separated entities are 
        established on pro-competitive terms and conditions, including, 
        but not limited to, the following:
                    (A) any such entity or entities shall be subject to 
                the jurisdiction of regulatory and competition 
                authorities in the countries where such entity or 
                entities offer service and shall compete, consistent 
                with national law and international obligations, on a 
                fair and nondiscriminatory basis with other private 
                entities;
                    (B) for any separated entities, there shall be a 
                clear structural separation between INTELSAT and such 
                entities, including separate officers, directors, 
                employees, headquarters and accounting systems; value 
                for permissible transactions verifiable by an 
                independent audit process as appropriate and consistent 
                with normal commercial practice; no common marketing or 
                recourse to INTELSAT assets for any such entity's 
                credit; and transitional contracts valued at a 
                verifiable fair market price for a limited period of 
                time, after which any such entity would procure such 
                services through open competitive tender;
                    (C) any transactions between INTELSAT and any 
                separated entities for transitional services such as 
                telemetry, tracking, control and monitoring shall be 
                contracted for on commercial, arms-length terms; and
                    (D) any such entity or entities shall not have any 
                privileges and immunities that INTELSAT enjoys as an 
                intergovernmental organization.
    (c) Pro-Competitive Measures, INMARSAT.--The United States party to 
the INMARSAT agreement and the United States Signatory to INMARSAT and 
COMSAT are directed to take all steps necessary and appropriate to--
            (1) achieve a restructuring of the intergovernmental 
        satellite organization that will result in increased private 
        competition in international satellite telecommunications 
        services;
            (2) ensure that the INMARSAT restructuring plan is 
        implemented in a pro-competitive manner;
            (3) establish safeguards which will ensure that any future 
        INMARSAT privatized successor entity or separated entities are 
        established on pro-competitive terms and conditions, including, 
        but not limited to, the following:
                    (A) any such entity or entities shall be subject to 
                the jurisdiction of regulatory and competition 
                authorities in the countries where such entity or 
                entities offer service and shall compete, consistent 
                with national law and international obligations, on a 
                fair and nondiscriminatory basis with other private 
                entities;
                    (B) for any separated entities, there shall be a 
                clear structural separation between INMARSAT and such 
                entities, including separate officers, directors, 
                employees, headquarters and accounting systems; value 
                for permissible transactions verifiable by an 
                independent audit process as appropriate and consistent 
                with normal commercial practice; no common marketing or 
                recourse to INMARSAT assets for any such entity's 
                credit; and transitional contracts valued at a 
                verifiable fair market price for a limited period of 
                time, after which any such entity would procure such 
                services through open competitive tender;
                    (C) any transactions between INMARSAT and any 
                separated entities for transitional services such as 
                telemetry, tracking, control, and monitoring shall be 
                contracted for on commercial, arms-length terms; and
                    (D) any such entity or entities shall not have any 
                privileges and immunities that INMARSAT enjoys as an 
                intergovernmental organization.
    (d) Implementation of Objectives.--In formulating and implementing 
specific policies and positions for international telecommunications--
            (1) the Secretary of State and all other agencies involved 
        shall pursue these objectives, compatible with a well-
        functioning international telecommunications system, through a 
        vigorous program of international negotiation both within 
        established international telecommunications organizations and, 
        as necessary, directly with other interested nations; and
            (2) to the extent that the objectives of this provision 
        have not been realized by January 1, 2003, the President shall 
        take whatever steps are necessary to achieve such objectives, 
        including withdraw the participation of the United States in 
        each such organization for which such efforts were 
        unsuccessful.

SEC. 5. USE OF GOVERNMENTAL SATELLITE ORGANIZATIONS TO PROVIDE 
              SERVICES.

    The Communications Satellite Act of 1962 (47 U.S.C. 701) is amended 
by adding at the end the following new title:

      ``TITLE VI--PROVISION OF TELECOMMUNICATIONS SERVICES USING 
               INTERGOVERNMENTAL SATELLITE ORGANIZATIONS

``SEC. 601. PROVISION OF TELECOMMUNICATIONS SERVICES USING 
              INTERGOVERNMENTAL SATELLITE ORGANIZATIONS.

    ``(a) In General.--Notwithstanding any law, rule, regulation or 
agreement to the contrary, no person may send or receive 
telecommunications services using a satellite owned or operated by an 
intergovernmental satellite organization or any other entity unless 
such person has a license or permit granted by the Commission as 
provided in this section.
    ``(b) Provision of Domestic or International Telecommunications 
Services.--
            ``(1) The Commission may grant an application to provide 
        telecommunications services to, from, or within the United 
        States using satellites owned or operated by an 
        intergovernmental satellite organization only if the person 
        making such application is subject to the same rules and 
        requirements as persons providing the same or similar 
        telecommunications services using United States licensed 
        communications satellite systems.
            ``(2) The Commission shall require COMSAT, in its capacity 
        as a common carrier, to make an appropriate waiver of immunity 
        from any suit as part of its application to provide domestic 
        telecommunications services via INTELSAT or INMARSAT.
            ``(3) The Commission shall not grant a license or permit to 
        any person using satellites owned or operated by an 
        intergovernmental satellite organization for telecommunications 
        services to, from, or within the United States, unless that 
        person--
                    ``(A) waives any privileges and immunities it may 
                possess for the provision of domestic services in the 
                United States; and
                    ``(B) makes a showing that such entry in to the 
                domestic market would promote competition for satellite 
                communications services in the United States.

``SEC. 602. PROVISION OF SERVICES IN THE UNITED STATES BY 
              INTERGOVERNMENTAL SATELLITE ORGANIZATION AFFILIATES.

    ``(a) In General.--In order to achieve the objectives and carry out 
the purposes of the International Satellite Communications Reform Act 
of 1998, the Commission shall--
            ``(1) apply a presumption in favor of entry to an IGO 
        affiliate licensed by a WTO Member for services covered by U.S. 
        commitments under the WTO Basic Telecom Agreement;
            ``(2) attach conditions to the grant of authority of an 
        application by an IGO affiliate that raises the potential for 
        competitive harm; or
            ``(3) in the exceptional case in which an application by an 
        IGO affiliate would pose a very high risk to competition in the 
        U.S. satellite market, deny the application.
    ``(b) Potential Consequences.--In determining whether an 
application to serve the U.S. market by an IGO affiliate raises the 
potential for competitive harm under (a)(2), the Commission shall 
consider any potential anti-competitive or market distorting 
consequences of continued relationships or connections between an IGO 
and its affiliates, including--
            ``(1) whether the affiliate is structured to prevent 
        practices such as collusive behavior or cross-subsidization;
            ``(2) the degree of affiliation between the IGO and its 
        affiliate;
            ``(3) whether the affiliate can directly or indirectly 
        benefit from IGO privileges and immunities;
            ``(4) the ownership structure of the affiliate and the 
        effect of IGO and other Signatory ownership;
            ``(5) the existence of clearly defined arms-length 
        conditions governing the affiliate-IGO relationship including 
        separate officers, directors, employees, and accounting 
        systems;
            ``(6) the existence of fair market valuing for permissible 
        business transactions between an IGO and its affiliate that is 
        verifiable by an independent audit and consistent with normal 
        commercial practice;
            ``(7) the existence of common marketing;
            ``(8) the availability of recourse to IGO assets for credit 
        or capital; and
            ``(9) the ability of an IGO to register or coordinate 
        spectrum or orbital locations on behalf of its affiliate.

``SEC 603. REGULATORY PARITY.

    ``In order to achieve the objectives and carry out the purposes of 
this Act, the Commission shall--
            ``(1) ensure that all persons have reasonable and 
        nondiscriminatory access to communications satellite systems 
        offering telecommunications services to, from, or within the 
        United States;
            ``(2) ensure that all persons providing similar or like 
        telecommunications services for profit by means of 
        communications satellite systems shall be subject to comparable 
        regulatory treatment, and, in particular, shall be treated as 
        common carriers, so as to achieve regulatory parity among 
        competing providers of similar services;
            ``(3) take whatever steps are necessary upon enactment to 
        permit any person to obtain direct access to the facilities and 
        services of any intergovernmental satellite organization to 
        which the United States is a party for the provision of 
        satellite telecommunications services to `thin route' countries 
        and Sub-Saharan Africa countries;
            ``(4) adopt policies designed to ensure that--
                    ``(A) no entity shall be permitted to maintain 
                exclusive rights of access to orbital slots that are 
                not planned for use within a reasonable period by 
                satellites providing commercial services; and
                    ``(B) any orbital slots allocated to any entity 
                which, as of the date of the enactment of this section, 
                are not required for the provision of commercial 
                services by satellites in orbit or under construction, 
                or which are not planned for such use within a 
                reasonable period, shall be made available for 
                reallocation by the International Telecommunications 
                Union; and
            ``(5) revise its rules and regulations to carry out the 
        provisions of this section within 90 days of the enactment of 
        the International Satellite Communications Reform Act of 
        1998.''.

SEC. 6. MODIFICATION OF OBSOLETE PROVISIONS OF THE COMMUNICATIONS 
              SATELLITE ACT OF 1962.

    (a) In General.--The Communications Satellite Act of 1962 (47 
U.S.C. 701 et seq.) is amended by striking the following provisions: 
paragraphs (1), (5) and (6) of section 201(a); section 201(b); 
paragraphs (1) and (8) of section 201(c); section 302; section 303; and 
section 304 except for subsection (d).
    (b) Amendment of 503(b)(2).--Section 503(b)(2) of the 
Communications Satellite Act of 1962 (47 U.S.C. 752 (b)(2)) is amended 
to read as follows:
            ``(2) shall interconnect such stations, and the maritime 
        satellite telecommunications provided by such stations, with 
        the facilities and services of United States domestic common 
        carriers and international common carriers;''.
    (c) Amendment of 503(f).--Section 503(f) of the Communications 
Satellite Act of 1962 (47 U.S.C. 752(f)) is amended to read as follows:
    ``(f) The Commission shall determine the operational arrangements 
under which the corporation shall interconnect its satellite earth 
terminal station facilities and services with United States domestic 
common carriers and international common carriers.''.
    (d) Ineffective Section.--On the date of the initial public 
offering privatizing INMARSAT, section 504(b) of the Communications 
Satellite Act of 1962 (47 U.S.C. 753(b)) shall cease to be effective.
    (e) Ineffective provisions.--On the date of the initial public 
offering privatizing INTELSAT, the following provisions of the 
Communications Satellite Act of 1962 shall cease to be effective:
            (1) paragraphs (2) and (4) of section 201(a);
            (2) section 201(c)(2);
            (3) subsection (a) of section 403; and
            (4) section 404.

SEC. 7. ESTABLISHMENT OF WORKING GROUP.

    The President shall create an interagency Working Group, chaired by 
the Secretary of State, and comprised of representatives from the 
Departments of Treasury, Justice, Commerce, the Office of the United 
States Trade Representative, the Federal Communications Commission, and 
other departments and agencies that the President deems necessary, that 
will advise the President on international satellite telecommunications 
policy matters; coordinate the activities of United States government 
agencies with responsibilities in the field of international satellite 
telecommunications; formulate positions of the United States as a 
member of the intergovernmental satellite organizations; and work 
within INTELSAT to ensure that the restructuring plan approved by the 
INTELSAT Assembly of Parties is implemented in a pro-competitive manner 
that meets the policy objectives of the United States as set forth in 
section 4.

SEC. 8. STUDIES AND REPORTS.

    (a) Working Group Study.--Within one year of enactment, the Working 
Group established by section 7 shall complete a study of the state of 
competition in the international satellite telecommunications market.
    (b) Scope of Study.--The study conducted under subsection (a) shall 
examine--
            (1) progress toward increased deregulation and 
        privatization in international telecommunications;
            (2) competition in the provision of space segment;
            (3) the level of access to international telecommunications 
        facilities by consumers throughout the world, including 
        developing nations;
            (4) market access in international satellite 
        telecommunication services;
            (5) the reduction or elimination of barriers to market 
        entry and other trade distorting policies and practices in 
        international telecommunication services as a result of 
        implementation of the World Trade Organization Basic Telecom 
        Agreement and other measures;
            (6) price, terms and conditions of service for users, 
        including users in remote areas and developing countries; and
            (7) the impact of market liberalization and privatization 
        on competition in the telecommunications market of the United 
        States and on consumers in the United States.
    (c) Additional Issues.--The study conducted under subsection (a) 
shall also, with regard to areas in which the intergovernmental 
satellite organizations have operated, include--
            (1) an assessment of the progress toward privatization and 
        enhanced competition; and
            (2) an evaluation of the implementation of commitments and 
        competitive safeguards adopted as part of INTELSAT's 
        restructuring to ensure structural separation and a commercial, 
        arm's-length relationship between INTELSAT or any successor 
        entity and any separated entity, and to ensure fair competition 
        between any separated entity and its competitors.
    (d) Annual Reports.--On the basis of the study conducted under 
subsection (a), the Chairman of the Working Group shall prepare and 
submit to the President and to the Committee on Commerce, Science and 
Transportation of the Senate and the Committee on Commerce of the House 
of Representatives, a written report containing the Working Group's 
findings regarding competition in the international satellite 
telecommunications services market. Such report shall be transmitted 
within one year of the date of enactment of this Act, and supplemental 
annual reports shall be transmitted annually thereafter until five 
years after date of enactment of this Act.
    (e) Report by Commission.--The Chairman of the Commission shall 
report to the Congress within one year after date of enactment of this 
Act, and annually thereafter until five years after date of enactment 
of this Act, on actions taken by the Commission to implement the United 
States' obligations and commitments for satellite services under the 
Fourth Protocol to the General Agreement on Trade in Services. Such 
report shall focus generally on steps taken to implement the United 
States' market access, most-favored nation and national treatment 
obligations with regard to foreign-based providers seeking to offer 
services in the United States, and specifically shall focus on actions 
taken with regard to applications, authorizations, permits or licenses 
involving any INTELSAT successor or separated entities. Finally, such 
report shall identify those markets where there are market access 
problems and shall make recommendations to the President concerning 
appropriate actions to correct such market access problems.

SEC. 9. CONSULTATIONS WITH CONGRESS.

    The Chairman of the Working Group, at least semi-annually, shall 
consult with the Committee on Commerce, Science and Transportation of 
the Senate and the Committee on Commerce of the House of 
Representatives and such other committees of the House and Senate as 
the President deems appropriate, regarding progress made in achieving 
the objectives and purposes of this Act in fostering increased 
competition in satellite telecommunications and in helping to further a 
pro-competitive restructuring of the international satellite 
organizations.

SEC. 10. PROCUREMENT.

    In procuring telecommunications services from private vendors, the 
Government of the United States shall not favor, nor be prejudiced 
against, the satellite space segment operated by INTELSAT or INMARSAT.

SEC. 11. RELATIONSHIP TO OTHER LAWS.

    Whenever the application of the provisions of this Act shall be 
inconsistent with the provisions of the Communications Act, the 
provisions of this Act shall govern; provided, however, that the 
regulatory reform provisions of section 10 of the Communications Act 
(as amended by the Telecommunications Act of 1996) shall continue to be 
applicable to any provision of this Act and to any regulation applied 
to COMSAT Corporation pursuant to this Act.

SEC. 12. CONTRACTS.

    Nothing in this Act or the Communications Act of 1934 shall be 
construed to modify or invalidate any contract or agreement involving 
COMSAT Corporation, INTELSAT, or INMARSAT, or any terms or conditions 
of such agreement, already in force on the effective date of this Act 
or to give the Commission authority, by rulemaking or any other means, 
to invalidate any such contract or agreement, or any terms and 
conditions of such contract or agreement.

SEC. 13. SATELLITE AUCTIONS.

    The Commission shall not engage in, and the President shall oppose 
at the International Telecommunication Union and in other bilateral and 
multilateral fora, auctions of orbital slots or spectrum assignments 
for satellites that provide international or global communications 
services.

SEC. 14. RESERVATION.

    The right to repeal, alter or amend this Act at any time is 
expressly reserved.

SEC. 15. DEFINITIONS.

    In this Act--
            (1) Communications satellite.--The term ``communications 
        satellite'' means an earth satellite which is intentionally 
        used to relay telecommunications information.
            (2) Communications satellite system.--The term 
        ``communications satellite system'' refers to a system of 
        communications satellites in space whose purpose is to relay 
        telecommunications information between earth stations, together 
        with tracking, telemetry, command, control, monitoring, and 
        related facilities and equipment required to support the 
        operations of such system.
            (3) Earth station.--The term ``earth station'' refers to a 
        complex of communications equipment located on the earth's 
        surface whose purpose is to transmit telecommunications to and/
        or receive telecommunications from a communications satellite 
        system.
            (4) INTELSAT.--The term ``INTELSAT'' means the 
        International Telecommunications Satellite Organization 
        established pursuant to the Agreement Relating to the 
        International Telecommunications Satellite Organization 
        (INTELSAT).
            (5) INMARSAT.--The term ``INMARSAT'' means the 
        International Mobile Satellite Organization established 
        pursuant to the Convention on the International Maritime 
        Satellite Organization (INMARSAT) (TIAS 9605, 31 UST 1).
            (6) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (7) Successor entity.--The term ``successor entity'' means 
        any privatized entity to whom all of the assets owned by 
        INTELSAT are transferred in a full privatization of INTELSAT.
            (8) Separated entity.--The term ``separated entity'' means 
        any privatized entity to whom a portion of the assets owned by 
        INTELSAT are transferred prior to full privatization of 
        INTELSAT, including in particular the entity whose structure 
        was under discussion by the INTELSAT Assembly of Parties at its 
        meeting March 30-31, 1998.
            (9) Party.--The term ``Party'', in the case of INTELSAT, 
        means a nation for which the INTELSAT agreement has entered 
        into force or been provisionally applied.
            (10) Space segment.--The term ``space segment'' means the 
        satellites, and the trafficking, telemetry, command, control, 
        monitoring and related facilities and equipment used to support 
        the operation of satellites owned or leased by INTELSAT, an 
        INTELSAT separated entity, or any other public or privately 
        owned satellite services provider.
            (11) INTELSAT agreement.--The term ``INTELSAT Agreement'' 
        means the Agreement Relating to the International 
        Telecommunications Satellite Organization (`INTELSAT'), 
        including all its annexes (TIAS 7532, 23 UST 3813).
            (12) INTELSAT restructuring.--The term ``INTELSAT 
        restructuring'' plan or process means the ongoing efforts 
        within the intergovernmental organization to change its 
        corporate structure, and the ownership and use of its assets, 
        including the plan approved by the INTELSAT Assembly of Parties 
        at its meeting on March 30-31, 1998.
            (13) Various terms.--The terms ``common carrier'', 
        ``person'', ``State'', ``telecommunications'', 
        ``telecommunications carrier'', ``telecommunications service'', 
        and ``United States'' have the meanings set forth in section 3 
        of the Communications Act of 1934 (47 U.S.C. 153).
            (14) Thin route.--The term ``thin route'' shall have the 
        same meaning as set forth in the Order of the Federal 
        Communications Commission, FCC 98-78 (April 28, 1998), and 
        shall be subject to the modifications to the total number of 
        thin route countries subsequently accepted by the Commission.
            (15) Direct access.--The term ``direct access'' means that 
        users shall have the ability to contract directly with INTELSAT 
        and INMARSAT for space segment capacity, but shall not include 
        an investment access alternative, nor fail to compensate COMSAT 
        for the costs it incurs in securing space segment capacity as 
        the United States Signatory for the benefit of all United 
        States users.

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