[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 376 Referred in House (RFH)]

  1st Session
                                 S. 376


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 12, 1999

                 Referred to the Committee on Commerce

_______________________________________________________________________

                                 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''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to promote a fully competitive 
domestic and international market for satellite communications services 
for the benefit of consumers and providers of satellite services by 
fully encouraging the privatization of the intergovernmental satellite 
organizations, INTELSAT and Inmarsat, and reforming the regulatory 
framework of the COMSAT Corporation.

SEC. 3. FINDINGS.

    The Congress finds that:
            (1) International satellite communications services 
        constitute a critical component of global voice, video and data 
        services, play a vital role in the integration of all nations 
        into the global economy and contribute toward the ability of 
        developing countries to achieve sustainable development.
            (2) The United States played a pivotal role in stimulating 
        the development of international satellite communications 
        services by enactment of the Communications Satellite Act of 
        1962 (47 U.S.C. 701-744), and by its critical contributions, 
        through its signatory, the COMSAT Corporation, in the 
        establishment of INTELSAT, which has successfully established 
        global satellite networks to provide member countries with 
        worldwide access to telecommunications services, including 
        critical lifeline services to the developing world.
            (3) The United States played a pivotal role in stimulating 
        the development of international satellite communications 
        services by enactment of the International Maritime Satellite 
        Telecommunications Act (47 U.S.C. 751-757), and by its critical 
        contributions, through its signatory, COMSAT, in the 
        establishment of Inmarsat, which enabled member countries to 
        provide mobile satellite services such as international 
        maritime and global maritime distress and safety services to 
        include other satellite services, such as land mobile and 
        aeronautical communications services.
             (4) By statute, COMSAT, a publicly traded corporation, is 
        the sole United States signatory to INTELSAT and, as such, is 
        responsible for carrying out United States commitments under 
        the INTELSAT Agreement and the INTELSAT Operating Agreement. 
        Pursuant to a binding Headquarters Agreement, the United 
        States, as a party to INTELSAT, has satisfied many of its 
        obligations under the INTELSAT Agreement.
             (5) In the 37 years since enactment of the Communications 
        Satellite Act of 1962, satellite technology has advanced 
        dramatically, large-scale financing options have improved 
        immensely and international telecommunications policies have 
        shifted from those of natural monopolies to those based on 
        market forces, resulting in multiple private commercial 
        companies around the world providing, or preparing to provide, 
        the domestic, regional, and global satellite telecommunications 
        services that only INTELSAT and Inmarsat had previously had the 
        capabilities to offer.
             (6) Private commercial satellite communications systems 
        now offer the latest telecommunications services to more and 
        more countries of the world with declining costs, making 
        satellite communications an attractive complement as well as an 
        alternative to terrestrial communications systems, particularly 
        in lesser developed countries.
             (7) To enable consumers to realize optimum benefits from 
        international satellite communications services, and to enable 
        these systems to be competitive with other international 
        telecommunication systems, such as fiber optic cable, the 
        global trade and regulatory environment must support vigorous 
        and robust competition.
             (8) In particular, all satellite systems should have 
        unimpeded access to the markets that they are capable of 
        serving, and the ability to compete in a fair and meaningful 
        way within those markets.
             (9) Transforming INTELSAT and Inmarsat from 
        intergovernmental organizations into conventional satellite 
        services companies is a key element in bringing about the 
        emergence of a fully competitive global environment for 
        satellite services.
            (10) The issue of privatization of any State-owned firm is 
        extremely complex and multifaceted. For that reason, the sale 
        of a firm at arm's length does not automatically, and in all 
        cases, extinguish any prior subsidies or government conferred 
        advantages.
             (11) It is in the interest of the United States to 
        negotiate the removal of its reservation in the Fourth Protocol 
        to the General Agreement on Trade in Services regarding 
        INTELSAT's and Inmarsat's access to the United States market 
        through COMSAT as soon as possible, but such reservation cannot 
        be removed without adequate assurance that the United States 
        market for satellite services will not be disrupted by such 
        INTELSAT or Inmarsat access.
             (12) The Communications Satellite Act of 1962, and other 
        applicable United States laws, need to be updated to encourage 
        and complete the pro-competitive privatization of INTELSAT and 
        Inmarsat, to update the domestic United States regulatory 
        regime governing COMSAT, and to ensure a competitively neutral 
        United States framework for the provision of domestic and 
        international telecommunications services via satellite 
        systems.

SEC. 4. ESTABLISHMENT OF SATELLITE SERVICES COMPETITION; PRIVATIZATION.

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

      ``TITLE VI--SATELLITE SERVICES COMPETITION AND PRIVATIZATION

           ``Subtitle A--Transition to a Privatized INTELSAT

``SEC. 601. POLICY OF THE UNITED STATES.

    ``It is the policy of the United States to--
            ``(1) encourage INTELSAT to privatize in a pro-competitive 
        manner as soon as possible, but not later than January 1, 2002, 
        recognizing the need for a reasonable transition and process to 
        achieve a full, pro-competitive restructuring; and
            ``(2) work constructively with its international partners 
        in INTELSAT, and with INTELSAT itself, to bring about a prompt 
        restructuring that will ensure fair competition, both in the 
        United States as well as in the global markets served by the 
        INTELSAT system; and
            ``(3) encourage Inmarsat's full implementation of the terms 
        and conditions of its privatization agreement.

``SEC. 602. ROLE OF COMSAT.

    ``(a) Advocacy.--As the United States signatory to INTELSAT, COMSAT 
shall act as an aggressive advocate of pro-competitive privatization of 
INTELSAT. With respect to the consideration within INTELSAT of any 
matter related to its privatization, COMSAT shall fully consult with 
the United States Government prior to exercising its voting rights and 
shall exercise its voting rights in a manner fully consistent with any 
instructions issued. In the event that the United States signatory to 
INTELSAT is acquired after enactment of this section, the President and 
the Commission shall assure that the instructional process safeguards 
against conflicts of interest.
    ``(b) Annual Reports.--The President and the Commission shall 
report annually to the Committee on Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate, respectively, on the progress being made 
by INTELSAT and Inmarsat to privatize and complete privatization in a 
pro-competitive manner.

``SEC. 603. RESTRICTIONS PENDING PRIVATIZATION.

    ``(a) INTELSAT shall be prohibited from entering the United States 
market directly to provide any satellite communications services or 
space segment capacity to carriers (other than the United States 
signatory) or end users in the United States until July 1, 2001 or 
until INTELSAT achieves a pro-competitive privatization pursuant to 
section 613 (a) if privatization occurs earlier.
    ``(b) Notwithstanding subsection (a), INTELSAT shall be prohibited 
from entering the United States market directly to provide any 
satellite communications services or space segment capacity to any 
foreign signatory, or affiliate thereof, and no carrier, other than the 
United States signatory, nor any end user, shall be permitted to invest 
directly in INTELSAT.
    ``(c) Pending INTELSAT's privatization, the Commission shall ensure 
that the United States signatory is compensated by direct access users 
for the costs it incurs in fulfilling its obligations under this Act.
    ``(d) The provisions of subsections (b) and (c) shall remain in 
effect only until INTELSAT achieves a pro-competitive privatization 
pursuant to section 613 (a).

   ``Subtitle B--Actions to Ensure Pro-Competitive Satellite Services

``SEC. 611. PRIVATIZATION.

    ``(a) In General.--The President shall seek a pro-competitive 
privatization of INTELSAT as soon as practicable, but no later than 
January 1, 2002. Such privatization shall be confirmed by a final 
decision of the INTELSAT Assembly of Parties and shall be followed by a 
timely initial public offering taking into account relative market 
conditions.
    ``(b) Ensure Continuation of Privatization.--The President and the 
Commission shall seek to ensure that the privatization of Inmarsat 
continues in a pro-competitive manner.

``SEC. 612. PROVISION OF SERVICES IN THE UNITED STATES BY PRIVATIZED 
              AFFILIATES OF INTERGOVERNMENTAL SATELLITE ORGANIZATIONS.

    ``(a) In General.--With respect to any application for a satellite 
earth station or space station under title III of the Communications 
Act of 1934 (47 U.S.C 301 et seq.) or any application under section 214 
of that Act (47 U.S.C. 214), or any letter of intent to provide service 
in the United States via non-United States licensed space segment, 
submitted by a privatized IGO affiliate or successor, the Commission--
            ``(1) shall apply a presumption in favor of entry to an IGO 
        affiliate or successor licensed by a WTO Member for services 
        covered by United States commitments under the WTO Basic 
        Telecom Agreement;
            ``(2) may attach conditions to any grant of authority to an 
        IGO affiliate or successor that raises the potential for 
        competitive harm; or
            ``(3) shall in the exceptional case in which an application 
        by an IGO affiliate or successor would pose a very high risk to 
        competition in the United States satellite market, deny the 
        application.
    ``(b) Determination Factors.--In determining whether an application 
to serve the United States market by an IGO affiliate raises the 
potential for competitive harm or risk under subsection (a)(2), the 
Commission shall determine whether any potential anti-competitive or 
market distorting consequences of continued relationships or 
connections exist between an IGO and its affiliates including--
            ``(1) whether the IGO affiliate is structured to prevent 
        anti-competitive practices such as collusive behavior or cross-
        subsidization;
            ``(2) the degree of affiliation between the IGO and its 
        affiliate;
            ``(3) whether the IGO 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 and whether the 
        affiliate is independent of IGO signatories or former 
        signatories who control telecommunications market access in 
        their home territories;
            ``(5) the existence of clearly defined arm's-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 and generally accepted accounting 
        principles;
            ``(7) the existence of common marketing;
            ``(8) the availability of recourse to IGO assets for credit 
        or capital;
            ``(9) whether an IGO registers or coordinates spectrum or 
        orbital locations on behalf of its affiliate; and
            ``(10) whether the IGO affiliate has corporate charter 
        provisions prohibiting reaffiliation with the IGO after 
        privatization.
    ``(c) Sunset.--The provisions of subsection (b) shall cease to have 
effect upon approval of the application pursuant to section 613.
    ``(d) Public Interest Determination.--Nothing in this Act affects 
the Commission's ability to make a public interest determination 
concerning any application pertaining to entry into the United States 
market.

``SEC. 613. PRESIDENTIAL NEGOTIATING OBJECTIVES AND FCC CRITERIA FOR 
              PRIVATIZED IGOS.

    ``(a) In General.--Upon a final decision of the INTELSAT Assembly 
of Parties creating the legal structure and characteristics of the 
privatized INTELSAT and recognizing that Inmarsat transitioned into a 
private company on April 15, 1999, the President shall within 30 days 
report to the Congress on the extent to which such privatization 
framework meets each of the criteria in subsection (c), and whether 
taking into consideration all other relevant competitive factors, entry 
of a privatized INTELSAT or Inmarsat into the United States market will 
not be likely to distort competition.
    ``(b) Purpose of Privatization Criteria.--The criteria provided in 
subsection (c) shall be used as--
            ``(1) the negotiation objectives for achieving the 
        privatization of INTELSAT no later than January 1, 2002, and 
        also for Inmarsat;
            ``(2) the standard for measuring, pursuant to subsection 
        (a), whether negotiations have resulted in an acceptable 
        framework for achieving the pro-competitive privatization of 
        INTELSAT and Inmarsat; and
            ``(3) licensing criteria by the Commission in making its 
        independent determination of whether the certified framework 
        for achieving the pro-competitive privatization of INTELSAT and 
        Inmarsat has been properly implemented by the privatized 
        INTELSAT and Inmarsat.
    ``(c) Privatization Criteria.--A pro-competitively privatized 
INTELSAT or Inmarsat--
            ``(1) has no privileges or immunities limiting legal 
        accountability, commercial transparency, or taxation and does 
        not unfairly benefit from ownership by former signatories who 
        control telecommunications market access to their home 
        territories;
            ``(2) has submitted to the jurisdiction of competition and 
        independent regulatory authorities of a nation that is a 
        signatory to the World Trade Organization Agreement on Basic 
        Telecommunications and that has implemented or accepted the 
        agreement's reference paper on regulatory principles;
            ``(3) can offer assurance of an arm's-length relationship 
        in all respects between itself and any IGO affiliate;
            ``(4) has given due consideration to the international 
        connectivity requirements of thin route countries;
            ``(5) can demonstrate that the valuation of assets to be 
        transferred post-privatization is in accordance with generally 
        accepted accounting principles;
            ``(6) has access to orbital locations and associated 
        spectrum post-privatization in accordance with the same 
        regulatory processes and fees applicable to other commercial 
        satellite systems;
            ``(7) conducts technical coordinations post-privatization 
        under normal, established ITU procedures;
            ``(8) has an ownership structure in the form of a stock 
        corporation or other similar and accepted commercial mechanism, 
        and a commitment to a timely initial public offering has been 
        established for the sale or purchase of company shares;
            ``(9) shall not acquire, or enjoy any agreements or 
        arrangements which secure, exclusive access to any national 
        telecommunications market; and
            ``(10) will have accomplished a privatization consistent 
        with the criteria listed in this subsection at the earliest 
        possible date, but not later than January 1, 2002, for INTELSAT 
        and Inmarsat.
    ``(d) FCC Independent Determination on Implementation.--After the 
President has made a report to Congress pursuant to subsection (a), 
with respect to any application for a satellite earth station or space 
station under title III of the Communications Act of 1934 (47 U.S.C. 
301) or any application under section 214 of the Communications Act of 
1934 (47 U.S.C. 214), or any letter of intent to provide service in the 
United States via a non-United States licensed space segment, submitted 
by a privatized affiliate prior to the privatized IGO, or by a 
privatized IGO, the Commission shall determine whether the enumerated 
objectives for a pro-competitive privatization of INTELSAT and Inmarsat 
under this section have been implemented with respect to the privatized 
IGO, but in making that consideration, may neither contract or expand 
the privatization criteria in subsection (c).
    ``(e) Authority to Deny an Application.--Nothing in this section 
affects the Commission's authority to condition or deny an application 
on the basis of the public interest.

``SEC. 614. FAILURE TO PRIVATIZE IN A TIMELY MANNER.

    ``(a) Report.--In the event that INTELSAT fails to fully privatize 
as provided in section 611 by January 1, 2002, the President shall--
            ``(1) instruct all instrumentalities of the United States 
        Government to grant a preference for procurement of satellite 
        services from commercial private sector providers of satellite 
        space segment rather than IGO providers;
            ``(2) immediately commence deliberations to determine what 
        additional measures should be implemented to ensure the rapid 
        privatization of INTELSAT;
            ``(3) no later than March 31, 2002, issue a report 
        delineating such other measures to the Committee on Commerce of 
        the House of Representatives, and Committee on Commerce, 
        Science, and Transportation of the Senate; and
            ``(4) withdraw as a party from INTELSAT.
    ``(b) Reservation Clause.--The President may determine, after 
consulting with Congress, that in consideration of privatization being 
imminent, it is in the national interest of the United States to 
provide a reasonable extension of time for completion of privatization.

             ``Subtitle C--COMSAT Governance and Operation

``SEC. 621. ELIMINATION OF PRIVILEGES AND IMMUNITIES.

    ``(a) Comsat.--COMSAT shall not have any privilege or immunity on 
the basis of its status as a signatory or a representative of the 
United States to INTELSAT and Inmarsat, except that COMSAT retains its 
privileges and immunities--
            ``(1) for those actions taken in its role as the United 
        States signatory to INTELSAT or Inmarsat upon instruction of 
        the United States Government; and
            ``(2) for actions taken when acting as the United States 
        signatory in fulfilling signatory obligations under the 
        INTELSAT Operating Agreement.
    ``(b) 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 
responsibility, as determined by the trier of fact.
    ``(c) Prospective Effect of Elimination.--The elimination of 
privileges and immunities contained in this section shall apply only to 
actions or decisions taken by COMSAT after the date of enactment of the 
Open-market Reorganization for the Betterment of International 
Telecommunications Act.

``SEC 622. ABROGATION OF CONTRACTS PROHIBITED.

    ``Nothing in this Act or the Communications Act of 1934 (47 U.S.C. 
151 et seq.) shall be construed to modify or invalidate any contract or 
agreement involving COMSAT, INTELSAT, or any terms or conditions of 
such agreement in force on the date of enactment of the Open-market 
Reorganization for the Betterment of International Telecommunications 
Act, or to give the Commission authority, by rule-making or any other 
means, to invalidate any such contract or agreement, or any terms and 
conditions of such contract or agreement.

``SEC. 623. PERMITTED COMSAT INVESTMENT.

    ``Nothing in this Act shall be construed as precluding COMSAT from 
investing in or owning satellites or other facilities independent from 
INTELSAT, or from providing services through reselling capacity over 
the facilities of satellite systems independent from INTELSAT. This 
section 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.

                    ``Subtitle D--General Provisions

``SEC. 631. PROMOTION OF EFFICIENT USE OF ORBITAL SLOTS AND SPECTRUM.

    ``All satellite system operators authorized to access the United 
States market should make efficient and timely use of orbital and 
spectrum resources in order to ensure that these resources are not 
warehoused to the detriment of other new or existing satellite system 
operators. Where these assurances cannot be provided, satellite system 
operators shall arbitrate their rights to these resources according to 
ITU procedures.

``SEC. 632. PROHIBITION ON PROCUREMENT PREFERENCES.

    ``Except pursuant to section 615 of this Act, nothing in this title 
or the Communications Act of 1934 (47 U.S.C. 151 et seq.) shall be 
construed to authorize or require any preference in Federal Government 
procurement of telecommunications services, for the satellite space 
segment provided by INTELSAT or Inmarsat, nor shall anything in this 
title or that Act be construed to result in a bias against the use of 
INTELSAT or Inmarsat through existing or future contract awards.

``SEC. 633. SATELLITE AUCTIONS.

    ``Notwithstanding any other provision of law, the Commission shall 
not 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 
Telecommunications Union and in other bilateral and multilateral 
negotiations any assignment by competitive bidding of orbital 
locations, licenses, or spectrum used for the provision of such 
services.

``SEC. 634. RELATIONSHIP TO OTHER LAWS.

    ``Whenever the application of the provisions of this Act is 
inconsistent with the provisions of the Communications Act of 1934, the 
provisions of this Act shall govern.

``SEC. 635. EXCLUSIVITY ARRANGEMENTS.

    ``(a) In General.--No satellite operator shall acquire or enjoy the 
exclusive right of handling traffic 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 subsection, 
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 
        traffic, if the Commission determines the public interest, 
        convenience, and necessity so requires.

                       ``Subtitle E--Definitions

``SEC. 641. DEFINITIONS.

    ``(a) In General.--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.
            ``(2) Inmarsat.--The term `Inmarsat' means the 
        International Mobile Satellite Organization established 
        pursuant to the Convention on the International Maritime 
        Satellite Organization and may also refer to INMARSAT Limited 
        when appropriate.
            ``(3) COMSAT.--The term `COMSAT' means the corporation 
        established pursuant to title III of this Act and its 
        successors and assigns.
            ``(4) Signatory.--The term `signatory' means the 
        telecommunications entity designated by a party that has signed 
        the Operating Agreement and for which such Agreement has 
        entered into force.
            ``(5) Party.--The term `party' means, in the case of 
        INTELSAT, a nation for which the INTELSAT agreement has entered 
        into force or been provisionally applied, and in the case of 
        INMARSAT, a nation for which the Inmarsat convention entered 
        into force.
            ``(6) Commission.--The term `Commission' means the Federal 
        Communications Commission.
            ``(7) International telecommunication union; ITU.--The 
        terms `International Telecommunication Union' and `ITU' mean 
        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 
        orbital arc.
            ``(8) Privatized INTELSAT.--The term `privatized INTELSAT' 
        means any entity created from the privatization of INTELSAT 
        from the assets of INTELSAT.
            ``(9) Privatized Inmarsat.--The term `privatized Inmarsat' 
        means any entity created from the privatization of Inmarsat 
        from the assets of Inmarsat, namely INMARSAT, Ltd.
            ``(10) Orbital location.--The term `orbital location' means 
        the location for placement of a satellite in geostationary 
        orbits as defined in the International Telecommunication Union 
        Radio Regulations.
            ``(11) Spectrum.--The term `spectrum' means the range of 
        frequencies used to provide radio communication services.
            ``(12) 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 and 
        Inmarsat or an IGO successor or affiliate.
            ``(13) INTELSAT agreement.--The term `INTELSAT agreement' 
        means the agreement relating to the International 
        Telecommunications Satellite Organization, including all of its 
        annexes (TIAS 7532, 23 UST 3813).
            ``(14) 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.
            ``(15) Headquarters agreement.--The term `headquarters 
        agreement' means the binding international agreement, dated 
        November 24, 1976, between the United States and INTELSAT 
        covering privileges, exemptions, and immunities with respect to 
        the location of INTELSAT's headquarters in Washington, D.C.
            ``(16) Direct-to-home satellite services.--The term 
        `direct-to-home satellite services' means the distribution or 
        broadcasting of programming or services by satellite directly 
        to the subscriber's premises without the use of ground 
        receiving or distribution equipment, except at the subscriber's 
        premises or in the uplink process to the satellite.
            ``(17) IGO.--The term `IGO' means the Intergovernmental 
        Satellite organizations, INTELSAT and Inmarsat.
            ``(18) IGO affiliate.--The term `IGO affiliate' means any 
        entity in which an IGO owns or has owned an equity interest of 
        10 percent or more.
            ``(19) IGO successor.--The term `IGO Successor' means an 
        entity which holds substantially all the assets of a pre-
        existing IGO.
            ``(20) Global maritime distress and safety services.--The 
        term `global maritime distress and safety services' 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, permitting the worldwide alerting of vessels, 
        coordinated search and rescue operations, and dissemination of 
        maritime safety information.
    ``(b) Common Terms.--Except as otherwise provided in subsection 
(a), terms used in this title that are defined in section 3 of the 
Communications Act of 1934 (47 U.S.C. 153) have the meaning provided in 
that section.''.

SEC. 5. CONFORMING CHANGES.

    (a) Repeal of Federal Coordination and Planning Provisions.--
Section 201 of the Communications Satellite Act of 1962 (47 U.S.C. 721) 
is amended to read as follows:

``SEC. 201. IMPLEMENTATION OF POLICY.

    ``The Federal Communications Commission, in its administration of 
the Communications Act of 1934, shall make rules and regulations to 
carry out the provisions of this Act.''.
    (b) Repeal of Government-Established Corporation Provisions.--
            (1) In general.--Section 301 of the Communications 
        Satellite Act of 1962 (47 U.S.C. 731) is amended to read as 
        follows:

``SEC. 301. CORPORATION.

    ``The corporation organized under the provisions of this title, as 
this title existed before the enactment of the Open-market 
Reorganization for the Betterment of International Telecommunications 
Act, known as COMSAT, and its successors and assigns, are subject to 
the provisions of this Act. The right to repeal, alter, or amend this 
Act at any time is expressly reserved.''.
            (2) Conforming changes.--Title III of the Communications 
        Satellite Act of 1962 (47 U.S.C. 731 et seq.) is amended--
                    (A) by striking ``CREATION OF A COMMUNICATIONS 
                SATELLITE'' in the caption of title III;
                    (B) by striking sections 302, 303, and 304;
                    (C) by redesignating section 305 as section 302; 
                and
                    (D) by striking subsection (c) of section 302, as 
                redesignated.
    (c) Repeal of Certain Miscellaneous Provisions.--Title IV of the 
Communications Satellite Act of 1962 (47 U.S.C. 741 et seq.) is 
amended--
            (1) by striking section 402;
            (2) by striking subsection (a) of section 403 and 
        redesignating subsections (b) and (c) as subsections (a) and 
        (b), respectively; and
            (3) by striking section 404.

SEC. 6. INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS ACT 
              AMENDMENTS.

    (a) Repeal of Superseded Authority.--Title V of the Communications 
Satellite Act of 1962 (47 U.S.C. 751 et seq.) is amended--
            (1) by striking sections 502, 503, 504, and 505; and
            (2) by inserting after section 501 the following:

``SEC. 502. GLOBAL SATELLITE SAFETY SERVICES AFTER PRIVATIZATION OF 
              BUSINESS OPERATIONS OF INMARSAT.

    ``In order to ensure the continued provision of global maritime 
distress and safety satellite telecommunications services after 
privatization of the business operations of Inmarsat, the President may 
maintain membership in the International Mobile Satellite Organization 
on behalf of the United States.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date on which the International Mobile Satellite 
Organization ceases to operate directly a global mobile satellite 
system.

            Passed the Senate July 1, 1999.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.