[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 376 Enrolled Bill (ENR)]

        S.376

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
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 ``Open-market Reorganization for the 
Betterment of International Telecommunications Act'' or the ``ORBIT 
Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to promote a fully competitive global 
market for satellite communication services for the benefit of 
consumers and providers of satellite services and equipment by fully 
privatizing the intergovernmental satellite organizations, INTELSAT and 
Inmarsat.

SEC. 3. REVISION OF COMMUNICATIONS SATELLITE ACT OF 1962.

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

        ``TITLE VI--COMMUNICATIONS COMPETITION AND PRIVATIZATION
     ``Subtitle A--Actions To Ensure Pro-Competitive Privatization

``SEC. 601. FEDERAL COMMUNICATIONS COMMISSION LICENSING.
    ``(a) Licensing for Separated Entities.--
        ``(1) Competition test.--The Commission may not issue a license 
    or construction permit to any separated entity, or renew or permit 
    the assignment or use of any such license or permit, or authorize 
    the use by any entity subject to United States jurisdiction of any 
    space segment owned, leased, or operated by any separated entity, 
    unless the Commission determines that such issuance, renewal, 
    assignment, or use will not harm competition in the 
    telecommunications market of the United States. If the Commission 
    does not make such a determination, it shall deny or revoke 
    authority to use space segment owned, leased, or operated by the 
    separated entity to provide services to, from, or within the United 
    States.
        ``(2) Criteria for competition test.--In making the 
    determination required by paragraph (1), the Commission shall use 
    the licensing criteria in sections 621 and 623, and shall not make 
    such a determination unless the Commission determines that the 
    privatization of any separated entity is consistent with such 
    criteria.
    ``(b) Licensing for INTELSAT, Inmarsat, and Successor Entities.--
        ``(1) Competition test.--
            ``(A) In general.--In considering the application of 
        INTELSAT, Inmarsat, or their successor entities for a license 
        or construction permit, or for the renewal or assignment or use 
        of any such license or permit, or in considering the request of 
        any entity subject to United States jurisdiction for 
        authorization to use any space segment owned, leased, or 
        operated by INTELSAT, Inmarsat, or their successor entities, to 
        provide non-core services to, from, or within the United 
        States, the Commission shall determine whether--
                ``(i) after April 1, 2001, in the case of INTELSAT and 
            its successor entities, INTELSAT and any successor entities 
            have been privatized in a manner that will harm competition 
            in the telecommunications markets of the United States; or
                ``(ii) after April 1, 2000, in the case of Inmarsat and 
            its successor entities, Inmarsat and any successor entities 
            have been privatized in a manner that will harm competition 
            in the telecommunications markets of the United States.
            ``(B) Consequences of determination.--If the Commission 
        determines that such competition will be harmed or that grant 
        of such application or request for authority is not otherwise 
        in the public interest, the Commission shall limit through 
        conditions or deny such application or request, and limit or 
        revoke previous authorizations to provide non-core services to, 
        from, or within the United States. After due notice and 
        opportunity for comment, the Commission shall apply the same 
        limitations, restrictions, and conditions to all entities 
        subject to United States jurisdiction using space segment 
        owned, leased, or operated by INTELSAT, Inmarsat, or their 
        successor entities.
            ``(C) National security, law enforcement, and public 
        safety.--The Commission shall not impose any limitation, 
        condition, or restriction under subparagraph (B) in a manner 
        that will, or is reasonably likely to, result in limitation, 
        denial, or revocation of authority for non-core services that 
        are used by and required for a national security agency or law 
        enforcement department or agency of the United States, or used 
        by and required for, and otherwise in the public interest, any 
        other Department or Agency of the United States to protect the 
        health and safety of the public. Such services may be obtained 
        by the United States directly from INTELSAT, Inmarsat, or a 
        successor entity, or indirectly through COMSAT, or authorized 
        carriers or distributors of the successor entity.
            ``(D) Rule of construction.--Nothing in this subsection is 
        intended to preclude the Commission from acting upon 
        applications of INTELSAT, Inmarsat, or their successor entities 
        prior to the latest date set out in section 621(5)(A), 
        including such actions as may be necessary for the United 
        States to become the licensing jurisdiction for INTELSAT, but 
        the Commission shall condition a grant of authority pursuant to 
        this subsection upon compliance with sections 621 and 622.
        ``(2) Criteria for competition test.--In making the 
    determination required by paragraph (1), the Commission shall use 
    the licensing criteria in sections 621, 622, and 624, and shall 
    determine that competition in the telecommunications markets of the 
    United States will be harmed unless the Commission finds that the 
    privatization referred to in paragraph (1) is consistent with such 
    criteria.
        ``(3) Clarification: competitive safeguards.--In making its 
    licensing decisions under this subsection, the Commission shall 
    consider whether users of non-core services provided by INTELSAT or 
    Inmarsat or successor or separated entities are able to obtain non-
    core services from providers offering services other than through 
    INTELSAT or Inmarsat or successor or separated entities, at 
    competitive rates, terms, or conditions. Such consideration shall 
    also include whether such licensing decisions would require users 
    to replace equipment at substantial costs prior to the termination 
    of its design life. In making its licensing decisions, the 
    Commission shall also consider whether competitive alternatives in 
    individual markets do not exist because they have been foreclosed 
    due to anticompetitive actions undertaken by or resulting from the 
    INTELSAT or Inmarsat systems. Such licensing decisions shall be 
    made in a manner which facilitates achieving the purposes and goals 
    in this title and shall be subject to notice and comment.
    ``(c) Additional Considerations in Determinations.--In making its 
determinations and licensing decisions under subsections (a) and (b), 
the Commission shall construe such subsections in a manner consistent 
with the United States obligations and commitments for satellite 
services under the Fourth Protocol to the General Agreement on Trade in 
Services.
    ``(d) Independent Facilities Competition.--Nothing in this section 
shall be construed as precluding COMSAT from investing in or owning 
satellites or other facilities independent from INTELSAT and Inmarsat, 
and successor or separated entities, or from providing services through 
reselling capacity over the facilities of satellite systems independent 
from INTELSAT and Inmarsat, and successor or separated entities. This 
subsection shall not be construed as restricting the types of contracts 
which can be executed or services which may be provided by COMSAT over 
the independent satellites or facilities described in this subsection.
``SEC. 602. INCENTIVES; LIMITATION ON EXPANSION PENDING PRIVATIZATION.
    ``(a) Limitation.--Until INTELSAT, Inmarsat, and their successor or 
separate entities are privatized in accordance with the requirements of 
this title, INTELSAT, Inmarsat, and their successor or separate 
entities, respectively, shall not be permitted to provide additional 
services. The Commission shall take all necessary measures to implement 
this requirement, including denial by the Commission of licensing for 
such services.
    ``(b) Orbital Location Incentives.--Until such privatization is 
achieved, the United States shall oppose and decline to facilitate 
applications by such entities for new orbital locations to provide such 
services.

  ``Subtitle B--Federal Communications Commission Licensing Criteria: 
                         Privatization Criteria

``SEC. 621. GENERAL CRITERIA TO ENSURE A PRO-COMPETITIVE PRIVATIZATION 
OF INTELSAT AND INMARSAT.
    ``The President and the Commission shall secure a pro-competitive 
privatization of INTELSAT and Inmarsat that meets the criteria set 
forth in this section and sections 622 through 624. In securing such 
privatizations, the following criteria shall be applied as licensing 
criteria for purposes of subtitle A:
        ``(1) Dates for privatization.--Privatization shall be obtained 
    in accordance with the criteria of this title of--
            ``(A) INTELSAT as soon as practicable, but no later than 
        April 1, 2001; and
            ``(B) Inmarsat as soon as practicable, but no later than 
        July 1, 2000.
        ``(2) Independence.--The privatized successor entities and 
    separated entities of INTELSAT and Inmarsat shall operate as 
    independent commercial entities, and have a pro-competitive 
    ownership structure. The successor entities and separated entities 
    of INTELSAT and Inmarsat shall conduct an initial public offering 
    in accordance with paragraph (5) to achieve such independence. Such 
    offering shall substantially dilute the aggregate ownership of such 
    entities by such signatories or former signatories. In determining 
    whether a public offering attains such substantial dilution, the 
    Commission shall take into account the purposes and intent, 
    privatization criteria, and other provisions of this title, as well 
    as market conditions. No intergovernmental organization, including 
    INTELSAT or Inmarsat, shall have--
            ``(A) an ownership interest in INTELSAT or the successor or 
        separated entities of INTELSAT; or
            ``(B) more than minimal ownership interest in Inmarsat or 
        the successor or separated entities of Inmarsat.
        ``(3) Termination of privileges and immunities.--The 
    preferential treatment of INTELSAT and Inmarsat shall not be 
    extended to any successor entity or separated entity of INTELSAT or 
    Inmarsat. Such preferential treatment includes--
            ``(A) privileged or immune treatment by national 
        governments;
            ``(B) privileges or immunities or other competitive 
        advantages of the type accorded INTELSAT and Inmarsat and their 
        signatories through the terms and operation of the INTELSAT 
        Agreement and the associated Headquarters Agreement and the 
        Inmarsat Convention; and
            ``(C) preferential access to orbital locations.
    Access to new, or renewal of access to, orbital locations shall be 
    subject to the legal or regulatory processes of a national 
    government that applies due diligence requirements intended to 
    prevent the warehousing of orbital locations.
        ``(4) Prevention of expansion during transition.--During the 
    transition period prior to privatization under this title, INTELSAT 
    and Inmarsat shall be precluded from expanding into additional 
    services.
        ``(5) Conversion to stock corporations.--Any successor entity 
    or separated entity created out of INTELSAT or Inmarsat shall be a 
    national corporation or similar accepted commercial structure, 
    subject to the laws of the nation in which incorporated, as 
    follows:
            ``(A) An initial public offering of securities of any 
        successor entity or separated entity--
                ``(i) shall be conducted, for the successor entities of 
            INTELSAT, on or about October 1, 2001, except that the 
            Commission may extend this deadline in consideration of 
            market conditions and relevant business factors relating to 
            the timing of an initial public offering, but such 
            extensions shall not permit such offering to be conducted 
            later than December 31, 2002; and
                ``(ii) shall be conducted, for the successor entities 
            of Inmarsat, on or about October 1, 2000, except that the 
            Commission may extend this deadline in consideration of 
            market conditions and relevant business factors relating to 
            the timing of an initial public offering, but to no later 
            than December 31, 2001.
            ``(B) The shares of any successor entities and separated 
        entities shall be listed for trading on one or more major stock 
        exchanges with transparent and effective securities regulation.
            ``(C) A majority of the members of the board of directors 
        of any successor entity or separated entity shall not be 
        directors, employees, officers, or managers or otherwise serve 
        as representatives of any signatory or former signatory. No 
        member of the board of directors of any successor or separated 
        entity shall be a director, employee, officer or manager of any 
        intergovernmental organization remaining after the 
        privatization.
            ``(D) Any successor entity or separated entity shall--
                ``(i) have a board of directors with a fiduciary 
            obligation;
                ``(ii) have no officers or managers who (I) are 
            officers or managers of any signatories or former 
            signatories, or (II) have any direct financial interest in 
            or financial relationship to any signatories or former 
            signatories, except that such interest may be managed 
            through a blind trust or similar mechanism;
                ``(iii) have no directors, officers, or managers who 
            hold such positions in any intergovernmental organization; 
            and
                ``(iv) in the case of a separated entity, have no 
            officers or directors, who (I) are officers or managers of 
            any intergovernmental organization, or (II) have any direct 
            financial interest in or financial relationship to any 
            international organization, except that such interest may 
            be managed through a blind trust or similar mechanism.
            ``(E) Any transactions or other relationships between or 
        among any successor entity, separated entity, INTELSAT, or 
        Inmarsat shall be conducted on an arm's length basis.
        ``(6) Regulatory treatment.--Any successor entity or separated 
    entity created after the date of enactment of this title shall 
    apply through the appropriate national licensing authorities for 
    international frequency assignments and associated orbital 
    registrations for all satellites.
        ``(7) Competition policies in domiciliary country.--Any 
    successor entity or separated entity shall be subject to the 
    jurisdiction of a nation or nations that--
            ``(A) have effective laws and regulations that secure 
        competition in telecommunications services;
            ``(B) are signatories of the World Trade Organization Basic 
        Telecommunications Services Agreement; and
            ``(C) have a schedule of commitments in such Agreement that 
        includes non-discriminatory market access to their satellite 
        markets.

``SEC. 622. SPECIFIC CRITERIA FOR INTELSAT.

    ``In securing the privatizations required by section 621, the 
following additional criteria with respect to INTELSAT privatization 
shall be applied as licensing criteria for purposes of subtitle A:
        ``(1) Technical coordination under intelsat agreements.--
    Technical coordination shall not be used to impair competition or 
    competitors, and shall be conducted under International 
    Telecommunication Union procedures and not under Article XIV(d) of 
    the INTELSAT Agreement.

``SEC. 623. SPECIFIC CRITERIA FOR INTELSAT SEPARATED ENTITIES.

    ``In securing the privatizations required by section 621, the 
following additional criteria with respect to any INTELSAT separated 
entity shall be applied as licensing criteria for purposes of subtitle 
A:
        ``(1) Date for public offering.--Within one year after any 
    decision to create any separated entity, a public offering of the 
    securities of such entity shall be conducted. In the case of a 
    separated entity created before January 1, 1999, such public 
    offering shall be conducted no later than July 1, 2000, except that 
    the Commission may extend this deadline in consideration of market 
    conditions and relevant business factors relating to the timing of 
    an initial public offering, but such extensions shall not permit 
    such offering to be conducted later than July 31, 2001.
        ``(2) Interlocking directorates or employees.--None of the 
    officers, directors, or employees of any separated entity shall be 
    individuals who are officers, directors, or employees of INTELSAT.
        ``(3) Spectrum assignments.--After the initial transfer which 
    may accompany the creation of a separated entity, the portions of 
    the electromagnetic spectrum assigned as of the date of enactment 
    of this title to INTELSAT shall not be transferred between INTELSAT 
    and any separated entity.
        ``(4) Reaffiliation prohibited.--Any merger or ownership or 
    management ties or exclusive arrangements between a privatized 
    INTELSAT or any successor entity and any separated entity shall be 
    prohibited until 11 years after the completion of INTELSAT 
    privatization under this title.

``SEC. 624. SPECIFIC CRITERIA FOR INMARSAT.

    ``In securing the privatizations required by section 621, the 
following additional criteria with respect to Inmarsat privatization 
shall be applied as licensing criteria for purposes of subtitle A:
        ``(1) Reaffiliation prohibited.--Any merger, ownership of more 
    than one percent of the voting securities, or management ties or 
    exclusive arrangements between Inmarsat or any successor entity or 
    separated entity and ICO shall be prohibited until 15 years after 
    the completion of Inmarsat privatization under this title.
        ``(2) Interlocking directorates or employees.--None of the 
    officers, directors, or employees of Inmarsat or any successor 
    entity or separated entity shall be individuals who are officers, 
    directors, or employees of ICO.
        ``(3) Preservation of the gmdss.--The United States shall seek 
    to preserve space segment capacity of the GMDSS.

``SEC. 625. ENCOURAGING MARKET ACCESS AND PRIVATIZATION.

    ``(a) NTIA Determination.--
        ``(1) Determination required.--Within 180 days after the date 
    of enactment of this section, the Secretary of Commerce shall, 
    through the Assistant Secretary for Communications and Information, 
    transmit to the Commission--
            ``(A) a list of Member countries of INTELSAT and Inmarsat 
        that are not Members of the World Trade Organization and that 
        impose barriers to market access for private satellite systems; 
        and
            ``(B) a list of Member countries of INTELSAT and Inmarsat 
        that are not Members of the World Trade Organization and that 
        are not supporting pro-competitive privatization of INTELSAT 
        and Inmarsat.
        ``(2) Consultation.--The Secretary's determinations under 
    paragraph (1) shall be made in consultation with the Federal 
    Communications Commission, the Secretary of State, and the United 
    States Trade Representative, and shall take into account the 
    totality of a country's actions in all relevant fora, including the 
    Assemblies of Parties of INTELSAT and Inmarsat.
    ``(b) Imposition of Cost-Based Settlement Rate.--Notwithstanding--
        ``(1) any higher settlement rate that an overseas carrier 
    charges any United States carrier to originate or terminate 
    international message telephone services; and
        ``(2) any transition period that would otherwise apply,
the Commission may by rule prohibit United States carriers from paying 
an amount in excess of a cost-based settlement rate to overseas 
carriers in countries listed by the Commission pursuant to subsection 
(a).
    ``(c) Settlements Policy.--The Commission shall, in exercising its 
authority to establish settlements rates for United States 
international common carriers, seek to advance United States policy in 
favor of cost-based settlements in all relevant fora on international 
telecommunications policy, including in meetings with parties and 
signatories of INTELSAT and Inmarsat.

         ``Subtitle C--Deregulation and Other Statutory Changes

``SEC. 641. ACCESS TO INTELSAT.

    ``(a) Access Permitted.--Beginning on the date of enactment of this 
title, users or providers of telecommunications services shall be 
permitted to obtain direct access to INTELSAT telecommunications 
services and space segment capacity through purchases of such capacity 
or services from INTELSAT. Such direct access shall be at the level 
commonly referred to by INTELSAT, on the date of enactment of this 
title, as `Level III'.
    ``(b) Rulemaking.--Within 180 days after the date of enactment of 
this title, the Commission shall complete a rulemaking, with notice and 
opportunity for submission of comment by interested persons, to 
determine if users or providers of telecommunications services have 
sufficient opportunity to access INTELSAT space segment capacity 
directly from INTELSAT to meet their service or capacity requirements. 
If the Commission determines that such opportunity to access does not 
exist, the Commission shall take appropriate action to facilitate such 
direct access pursuant to its authority under this Act and the 
Communications Act of 1934. The Commission shall take such steps as may 
be necessary to prevent the circumvention of the intent of this 
section.
    ``(c) Contract Preservation.--Nothing in this section shall be 
construed to permit the abrogation or modification of any contract.

``SEC. 642. SIGNATORY ROLE.

    ``(a) Limitations on Signatories.--
        ``(1) National security limitations.--The Federal 
    Communications Commission, after a public interest determination, 
    in consultation with the executive branch, may restrict foreign 
    ownership of a United States signatory if the Commission determines 
    that not to do so would constitute a threat to national security.
        ``(2) No signatories required.--The United States Government 
    shall not require signatories to represent the United States in 
    INTELSAT or Inmarsat or in any successor entities after a pro-
    competitive privatization is achieved consistent with sections 621, 
    622, and 624.
    ``(b) Clarification of Privileges and Immunities of COMSAT.--
        ``(1) Generally not immunized.--Notwithstanding any other law 
    or executive agreement, COMSAT shall not be entitled to any 
    privileges or immunities under the laws of the United States or any 
    State on the basis of its status as a signatory of INTELSAT or 
    Inmarsat.
        ``(2) Limited immunity.--COMSAT or any successor in interest 
    shall not be liable for action taken by it in carrying out the 
    specific, written instruction of the United States issued in 
    connection with its relationships and activities with foreign 
    governments, international entities, and the intergovernmental 
    satellite organizations.
        ``(3) No joint or several liability.--If COMSAT is found liable 
    for any action taken in its status as a signatory or a 
    representative of the party to INTELSAT, any such liability shall 
    be limited to the portion of the judgment that corresponds to 
    COMSAT's percentage of the ownership of INTELSAT at the time the 
    activity began which lead to the liability.
        ``(4) Provisions prospective.--Paragraph (1) shall not apply 
    with respect to liability for any action taken by COMSAT before the 
    date of enactment of this title.
    ``(c) Parity of Treatment.--Notwithstanding any other law or 
executive agreement, the Commission shall have the authority to impose 
similar regulatory fees on the United States signatory which it imposes 
on other entities providing similar services.

``SEC. 643. ELIMINATION OF PROCUREMENT PREFERENCES.

    ``Nothing in this title or the Communications Act of 1934 shall be 
construed to authorize or require any preference, in Federal Government 
procurement of telecommunications services, for the satellite space 
segment provided by INTELSAT, Inmarsat, or any successor entity or 
separated entity.

``SEC. 644. ITU FUNCTIONS.

    ``(a) Technical Coordination.--The Commission and United States 
satellite companies shall utilize the International Telecommunication 
Union procedures for technical coordination with INTELSAT and its 
successor entities and separated entities, rather than INTELSAT 
procedures.
    ``(b) ITU Notifying Administration.--The President and the 
Commission shall take the action necessary to ensure that the United 
States remains the ITU notifying administration for the privatized 
INTELSAT's existing and future orbital slot registrations.
``SEC. 645. TERMINATION OF COMMUNICATIONS SATELLITE ACT OF 1962 
PROVISIONS.
    ``Effective on the dates specified, the following provisions of 
this Act shall cease to be effective:
        ``(1) Date of enactment of this title: Paragraphs (1), (5) and 
    (6) of section 201(a); section 201(b); paragraphs (1), (3) through 
    (5), and (8) through (10) of section 201(c); section 303; section 
    304; section 502; section 503; paragraphs (2) and (4) of section 
    504(a); and section 504(c).
        ``(2) Upon the transfer of assets to a successor entity and 
    receipt by signatories or former signatories (including COMSAT) of 
    ownership shares in the successor entity of INTELSAT in accordance 
    with appropriate arrangements determined by INTELSAT to implement 
    privatization: Section 305.
        ``(3) On the effective date of a Commission order determining 
    under section 601(b)(2) that Inmarsat privatization is consistent 
    with criteria in sections 621 and 624: Sections 504(b) and 504(d).
        ``(4) On the effective date of a Commission order determining 
    under section 601(b)(2) that INTELSAT privatization is consistent 
    with criteria in sections 621 and 622: Section 102; section 103(7); 
    paragraphs (2) through (4) and (7) of section 201(a); paragraphs 
    (2), (6), and (7) of section 201(c); section 301; section 302; 
    section 401; section 402; section 403; and section 404.

``SEC. 646. REPORTS TO CONGRESS.

    ``(a) Annual Reports.--The President and the Commission shall 
report to the Committees on Commerce and International Relations of the 
House of Representatives and the Committees on Commerce, Science, and 
Transportation and Foreign Relations of the Senate within 90 calendar 
days of the enactment of this title, and not less than annually 
thereafter, on the progress made to achieve the objectives and carry 
out the purposes and provisions of this title. Such reports shall be 
made available immediately to the public.
    ``(b) Contents of Reports.--The reports submitted pursuant to 
subsection (a) shall include the following:
        ``(1) Progress with respect to each objective since the most 
    recent preceding report.
        ``(2) Views of the Parties with respect to privatization.
        ``(3) Views of industry and consumers on privatization.
        ``(4) Impact privatization has had on United States industry, 
    United States jobs, and United States industry's access to the 
    global marketplace.

``SEC. 647. SATELLITE AUCTIONS.

    ``Notwithstanding any other provision of law, the Commission shall 
not have the authority to assign by competitive bidding orbital 
locations or spectrum used for the provision of international or global 
satellite communications services. The President shall oppose in the 
International Telecommunication Union and in other bilateral and 
multilateral fora any assignment by competitive bidding of orbital 
locations or spectrum used for the provision of such services.

``SEC. 648. EXCLUSIVITY ARRANGEMENTS.

    ``(a) In General.--No satellite operator shall acquire or enjoy the 
exclusive right of handling telecommunications to or from the United 
States, its territories or possessions, and any other country or 
territory by reason of any concession, contract, understanding, or 
working arrangement to which the satellite operator or any persons or 
companies controlling or controlled by the operator are parties.
    ``(b) Exception.--In enforcing the provisions of this section, the 
Commission--
        ``(1) shall not require the termination of existing satellite 
    telecommunications services under contract with, or tariff 
    commitment to, such satellite operator; but
        ``(2) may require the termination of new services only to the 
    country that has provided the exclusive right to handle 
    telecommunications, if the Commission determines the public 
    interest, convenience, and necessity so requires.

           ``Subtitle D--Negotiations To Pursue Privatization

``SEC. 661. METHODS TO PURSUE PRIVATIZATION.

    ``The President shall secure the pro-competitive privatizations 
required by this title in a manner that meets the criteria in subtitle 
B.

                       ``Subtitle E--Definitions

``SEC. 681. DEFINITIONS.

    ``(a) In General.--As used in this title:
        ``(1) INTELSAT.--The term `INTELSAT' means the International 
    Telecommunications Satellite Organization established pursuant to 
    the Agreement Relating to the International Telecommunications 
    Satellite Organization (INTELSAT).
        ``(2) Inmarsat.--The term `Inmarsat' means the International 
    Mobile Satellite Organization established pursuant to the 
    Convention on the International Maritime Organization.
        ``(3) Signatories.--The term `signatories'--
            ``(A) in the case of INTELSAT, or INTELSAT successors or 
        separated entities, means a Party, or the telecommunications 
        entity designated by a Party, that has signed the Operating 
        Agreement and for which such Agreement has entered into force; 
        and
            ``(B) in the case of Inmarsat, or Inmarsat successors or 
        separated entities, means either a Party to, or an entity that 
        has been designated by a Party to sign, the Operating 
        Agreement.
        ``(4) Party.--The term `Party'--
            ``(A) in the case of INTELSAT, means a nation for which the 
        INTELSAT agreement has entered into force; and
            ``(B) in the case of Inmarsat, means a nation for which the 
        Inmarsat convention has entered into force.
        ``(5) Commission.--The term `Commission' means the Federal 
    Communications Commission.
        ``(6) International telecommunication union.--The term 
    `International Telecommunication Union' means the intergovernmental 
    organization that is a specialized agency of the United Nations in 
    which member countries cooperate for the development of 
    telecommunications, including adoption of international regulations 
    governing terrestrial and space uses of the frequency spectrum as 
    well as use of the geostationary satellite orbit.
        ``(7) Successor entity.--The term `successor entity'--
            ``(A) means any privatized entity created from the 
        privatization of INTELSAT or Inmarsat or from the assets of 
        INTELSAT or Inmarsat; but
            ``(B) does not include any entity that is a separated 
        entity.
        ``(8) Separated entity.--The term `separated entity' means a 
    privatized entity to whom a portion of the assets owned by INTELSAT 
    or Inmarsat are transferred prior to full privatization of INTELSAT 
    or Inmarsat, including in particular the entity whose structure was 
    under discussion by INTELSAT as of March 25, 1998, but excluding 
    ICO.
        ``(9) Orbital location.--The term `orbital location' means the 
    location for placement of a satellite on the geostationary orbital 
    arc as defined in the International Telecommunication Union Radio 
    Regulations.
        ``(10) Space segment.--The term `space segment' means the 
    satellites, and the tracking, telemetry, command, control, 
    monitoring and related facilities and equipment used to support the 
    operation of satellites owned or leased by INTELSAT, Inmarsat, or a 
    separated entity or successor entity.
        ``(11) Non-core services.--The term `non-core services' means, 
    with respect to INTELSAT provision, services other than public-
    switched network voice telephony and occasional-use television, and 
    with respect to Inmarsat provision, services other than global 
    maritime distress and safety services or other existing maritime or 
    aeronautical services for which there are not alternative 
    providers.
        ``(12) Additional services.--The term `additional services' 
    means--
            ``(A) for Inmarsat, those non-maritime or non-aeronautical 
        mobile services in the 1.5 and 1.6 Ghz band on planned 
        satellites or the 2 Ghz band; and
            ``(B) for INTELSAT, direct-to-home (DTH) or direct 
        broadcast satellite (DBS) video services, or services in the Ka 
        or V bands.
        ``(13) 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).
        ``(14) Headquarters agreement.--The term `Headquarters 
    Agreement' means the International Telecommunication Satellite 
    Organization Headquarters Agreement (November 24, 1976) (TIAS 8542, 
    28 UST 2248).
        ``(15) Operating agreement.--The term `Operating Agreement' 
    means--
            ``(A) in the case of INTELSAT, the agreement, including its 
        annex but excluding all titles of articles, opened for 
        signature at Washington on August 20, 1971, by Governments or 
        telecommunications entities designated by Governments in 
        accordance with the provisions of the Agreement; and
            ``(B) in the case of Inmarsat, the Operating Agreement on 
        the International Maritime Satellite Organization, including 
        its annexes.
        ``(16) Inmarsat convention.--The term `Inmarsat Convention' 
    means the Convention on the International Maritime Satellite 
    Organization (Inmarsat) (TIAS 9605, 31 UST 1).
        ``(17) National corporation.--The term `national corporation' 
    means a corporation the ownership of which is held through publicly 
    traded securities, and that is incorporated under, and subject to, 
    the laws of a national, state, or territorial government.
        ``(18) COMSAT.--The term `COMSAT' means the corporation 
    established pursuant to title III of the Communications Satellite 
    Act of 1962 (47 U.S.C. 731 et seq.), or the successor in interest 
    to such corporation.
        ``(19) ICO.--The term `ICO' means the company known, as of the 
    date of enactment of this title, as ICO Global Communications, Inc.
        ``(20) Global maritime distress and safety services or gmdss.--
    The term `global maritime distress and safety services' or `GMDSS' 
    means the automated ship-to-shore distress alerting system which 
    uses satellite and advanced terrestrial systems for international 
    distress communications and promoting maritime safety in general. 
    The GMDSS permits the worldwide alerting of vessels, coordinated 
    search and rescue operations, and dissemination of maritime safety 
    information.
        ``(21) National security agency.--The term `national security 
    agency' means the National Security Agency, the Director of Central 
    Intelligence and the Central Intelligence Agency, the Department of 
    Defense, and the Coast Guard.
    ``(b) Common Terminology.--Except as otherwise provided in 
subsection (a), terms used in this title that are defined in section 3 
of the Communications Act of 1934 have the meanings provided in such 
section.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.