[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 376 Reported in Senate (RS)]





                                                       Calendar No. 189

106th CONGRESS

  1st Session

                                 S. 376

                          [Report No. 106-100]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             June 30, 1999

        Reported with an amendment in the nature of a substitute





                                                       Calendar No. 189
106th CONGRESS
  1st Session
                                 S. 376

                          [Report No. 106-100]

     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

                            February 4, 1999

    Mr. Burns (for himself, Mr. McCain, Mr. Dorgan, Mr. Bryan, Mr. 
 Brownback, Mr. Cleland, Mrs. Hutchison, Mr. Wyden, Ms. Mikulski, Ms. 
  Collins, Mr. Ashcroft, Mr. Frist, Mr. Rockefeller, Mr. Abraham, Ms. 
Snowe, Mr. Kerry, and Mr. Inouye) introduced the following bill; which 
was read twice and referred to the Committee on Commerce, Science, and 
                             Transportation

                             June 30, 1999

Reported by Mr. McCain, with an amendment in the nature of a substitute
 [Strike all after the enacting clause and insert the part printed in 
                                italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Open-market Reorganization 
for the Betterment of International Telecommunications Act''.</DELETED>

<DELETED>SEC. 2. PURPOSE.</DELETED>

<DELETED>    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 COMSAT Corporation.</DELETED>

<DELETED>SEC. 3. FINDINGS.</DELETED>

<DELETED>    The Congress finds that:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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; hereinafter the 
        ``Satellite Act''), and by its critical contributions, through 
        its signatory, COMSAT Corporation (hereinafter ``COMSAT''), 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.</DELETED>
        <DELETED>    (3) 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.</DELETED>
        <DELETED>    (4) In the 37 years since enactment of the 
        Satellite Act, 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 had previously had the capabilities to 
        offer.</DELETED>
        <DELETED>    (5) 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 alternative to terrestrial communications systems, 
        particularly in lesser developed countries.</DELETED>
        <DELETED>    (6) 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.</DELETED>
        <DELETED>    (7) 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.</DELETED>
        <DELETED>    (8) Transforming INTELSAT from an 
        intergovernmental organization into a conventional satellite 
        services company is a key element in bringing about the 
        emergence of a fully competitive global environment for 
        satellite services.</DELETED>
        <DELETED>    (9) Consistent with United States obligations 
        under the WTO Basic Agreement on Telecommunications Services 
        and to prevent the potential distortion of competition in the 
        United States market, a pro-competitive privatization of 
        INTELSAT is an appropriate prerequisite to granting INTELSAT 
        direct access to users in the United States market.</DELETED>
        <DELETED>    (10) It is in the interest of the United States to 
        remove, by January 1, 2002, the reservation in the Fourth 
        Protocol to the General Agreement on Trade in Services 
        regarding INTELSAT's access to the United States market through 
        COMSAT, but such reservation cannot be removed without adequate 
        assurance that the U.S. market for satellite services will not 
        be disrupted by such INTELSAT access.</DELETED>
        <DELETED>    (11) The Satellite Act, and other applicable 
        United States laws, need to be updated to encourage the pro- 
        competitive privatization of INTELSAT 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.</DELETED>

<DELETED>SEC. 4. REVISION OF COMMUNICATIONS SATELLITE ACT OF 
              1962.</DELETED>

<DELETED>    (a) Creation of Corporation.-- Section 301 of the 
Communications Satellite Act of 1962 (47 U.S.C. 731) is amended to read 
as follows:</DELETED>

<DELETED>``SEC. 301. CREATION OF CORPORATION.</DELETED>

<DELETED>    ``The corporation shall be subject to the provisions of 
this Act. The right to repeal, alter, or amend this Act at any time is 
expressly reserved.''.</DELETED>
<DELETED>    (b) Satellite Services Competition and Privatization.--The 
Communications Satellite Act of 1962 (47 U.S.C. 701) is amended by 
adding at the end the following:</DELETED>

        <DELETED>``TITLE VI--SATELLITE SERVICES COMPETITION AND 
                        PRIVATIZATION</DELETED>

  <DELETED>``Subtitle A--Transition to a Privatized INTELSAT</DELETED>

<DELETED>``SEC. 601. POLICY OF THE UNITED STATES.</DELETED>

<DELETED>    ``It is the policy of the United States to--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>

<DELETED>``SEC. 602. ROLE OF COMSAT.</DELETED>

<DELETED>    ``(a) Advocacy.-- As the sole United States signatory to 
INTELSAT, COMSAT shall act as an advocate of a pro-competitive 
privatization of INTELSAT, and shall exercise its voting rights with 
INTELSAT consistent with that mission and the United States 
instructional process.</DELETED>
<DELETED>    ``(b) Annual Reports.-- COMSAT shall report annually to 
the Committee on Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate on the 
progress being made by INTELSAT to privatize in a pro-competitive 
manner.</DELETED>

<DELETED>``SEC. 603. RESTRICTIONS PENDING PRIVATIZATION.</DELETED>

<DELETED>    ``(a) INTELSAT Access to United States Market.--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, COMSAT) or end 
users in the United States prior to achieving a pro-competitive 
privatization certified by the President pursuant to section 
612.</DELETED>
<DELETED>    ``(b) Service Restrictions.--Until the President makes a 
certification pursuant to section 612, the following services provided 
by the INTELSAT system shall not be authorized in the United States by 
the Federal Communications Commission: direct-to-home satellite 
services, direct broadcast satellite services, satellite digital audio 
radio services, and satellite communications services in the Ka Band. 
The preceding sentence may be waived by the President if the President 
finds that the provision of such service would enhance national 
security or serve a vital public interest. This provision is not 
intended to disrupt or otherwise jeopardize the continuing provision of 
existing authorized services in the United States via the INTELSAT 
system.</DELETED>

       <DELETED>``Subtitle B--Privatization of INTELSAT</DELETED>

<DELETED>``SEC. 611. PRIVATIZATION.</DELETED>

<DELETED>    ``The President shall secure 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.</DELETED>

<DELETED>``SEC. 612. PROVISION OF SERVICES IN THE UNITED STATES BY 
              INTERGOVERNMENTAL SATELLITE ORGANIZATION 
              AFFILIATES.</DELETED>

<DELETED>    ``(a) In General.--In order to achieve the objectives and 
carry out the purposes of the Open-market Reorganization for the 
Betterment of International Telecommunications Act, the Commission--
</DELETED>
        <DELETED>    ``(1) shall 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;</DELETED>
        <DELETED>    ``(2) may attach conditions to any grant of 
        authority to an IGO affiliate that raises the potential for 
        competitive harm; or</DELETED>
        <DELETED>    ``(3) shall 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.</DELETED>
<DELETED>    ``(b) Determination Factors.--In determining whether an 
application to serve the United States market by an IGO affiliate 
raises the potential for competitive harm under (a)(2), the FCC shall 
consider any potential anti- competitive or market distorting 
consequences of continued relationships or connections between an IGO 
and its affiliates, including:</DELETED>
        <DELETED>    ``(1) whether the affiliate is structured to 
        prevent practices such as collusive behavior or cross-
        subsidization;</DELETED>
        <DELETED>    ``(2) the degree of affiliation between the IGO 
        and its affiliate;</DELETED>
        <DELETED>    ``(3) whether the affiliate can directly or 
        indirectly benefit from IGO privileges and 
        immunities;</DELETED>
        <DELETED>    ``(4) the ownership structure of the affiliate and 
        the effect of IGO and other Signatory ownership;</DELETED>
        <DELETED>    ``(5) the existence of clearly defined arms-length 
        conditions governing the affiliate-IGO relationship including 
        separate officers, directors, employees, and accounting 
        systems;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(7) the existence of common marketing;</DELETED>
        <DELETED>    ``(8) the availability of recourse to IGO assets 
        for credit or capital; and</DELETED>
        <DELETED>    ``(9) whether an IGO to registers or coordinates 
        spectrum or orbital locations on behalf of its 
        affiliate.</DELETED>
<DELETED>    (c) Sunset.--The provisions of this section shall cease to 
have effect upon the certification by the President pursuant to section 
613(b).</DELETED>

<DELETED>``SEC. 613. CERTIFICATION.</DELETED>

<DELETED>    ``(a) Application.--Upon a final decision of the INTELSAT 
Assembly of Parties creating the legal structure and characteristics of 
the privatized INTELSAT, INTELSAT shall file a request with the 
President for certification that the privatized INTELSAT's entry into 
the United States market for satellite services will not distort 
competition in that market.</DELETED>
<DELETED>    ``(b) Certification.--Upon application by INTELSAT, the 
President shall make such determination in accordance with the pro-
competitive criteria in subsection (c), and shall take into 
consideration all other relevant competitive factors, including factors 
related to other competitors in the United States and global market for 
satellite services.</DELETED>
<DELETED>    ``(c) Criteria.--In making a determination pursuant to 
subsection (b), the President shall determine that a privatized 
INTELSAT--</DELETED>
        <DELETED>    ``(1) has no privileges or immunities limiting 
        legal accountability, commercial transparency or 
        taxation;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(3) can offer assurance of an arms-length 
        relationship in all respects between itself and any affiliate, 
        including New Skies, and in particular with respect to 
        technical, financial, and management contracts;</DELETED>
        <DELETED>    ``(4) can demonstrate that the valuation of assets 
        to be transferred post-privatization is in accordance with 
        generally accepted accounting principles;</DELETED>
        <DELETED>    ``(5) has access to orbital locations and 
        associated spectrum post-privatization in accordance with the 
        same regulatory processes applicable to other commercial 
        satellite systems;</DELETED>
        <DELETED>    ``(6) conducts technical coordinations post-
        privatization under normal, established ITU 
        procedures;</DELETED>
        <DELETED>    ``(7) 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;</DELETED>
        <DELETED>    ``(8) does not enter into agreements or 
        arrangements to secure exclusive access to any national 
        telecommunications market; and</DELETED>
        <DELETED>    ``(9) will have accomplished a privatization 
        consistent with the criteria listed in this subsection at the 
        earliest possible date, but not later that January 1, 
        2002.</DELETED>

<DELETED>``SEC. 614. FCC REVIEW OF LICENSE APPLICATIONS.</DELETED>

<DELETED>    ``(a) Application.--If the President makes such a 
certification pursuant to section 613, the following applications and 
Letters of Intent to provide satellite communications services by or 
via the privatized INTELSAT, internationally or within the domestic 
United States, otherwise permitted by law, may be filed with the 
Commission provided that no instrument of authorization may be granted 
prior to the implementation of the certified privatization:</DELETED>
        <DELETED>    ``(1) Applications for a satellite earth station 
        or space station under title III of the Communications Act of 
        1934 (47 U.S.C. 301 et. seq.).</DELETED>
        <DELETED>    ``(2) Letters of Intent to provide service in the 
        United States via non-U.S.-licensed space segment.</DELETED>
        <DELETED>    ``(3) Applications under section 214 of the 
        Communications Act of 1934 (47 U.S.C. 214).</DELETED>
<DELETED>    ``(b) Public Interest Determination.--Except as provided 
in subsection (c), nothing in this Act shall restrict or expand the 
Commission's ability to make a public interest determination concerning 
any application pertaining to a privatized INTELSAT's entry into the 
United States market.</DELETED>
<DELETED>    ``(c) Effect of Presidential Certification on Commission 
Deliberations.--The Commission shall be bound by the President's 
privatization certification made pursuant to section 613 for purposes 
of any license application, including space segment and earth station 
applications, pending before the Federal Communications Commission 
which pertains to a privatized INTELSAT's entry into the United States 
market.</DELETED>

<DELETED>``SEC. 614. FAILURE TO PRIVATIZE IN A TIMELY MANNER.</DELETED>

<DELETED>    ``(a) Report.--In the event that INTELSAT fails to fully 
privatize as provided in sections 611 and 612 by January 1, 2002, the 
President shall--</DELETED>
        <DELETED>    (1) immediately commence deliberations to 
        determine what additional measures should be implemented to 
        ensure the rapid privatization of INTELSAT;</DELETED>
        <DELETED>    (2) no later than March 31, 2002, issue a report 
        delineating such measures to the Committee on Commerce of the 
        House of Representatives, and Committee on Commerce, Science, 
        and Transportation of the Senate; and</DELETED>
        <DELETED>    (3) withdraw as a Party from INTELSAT.</DELETED>
<DELETED>    ``(b) Reservation Clause.--The President may determine 
that, in consideration of progress made, it is in the national interest 
of the United States to provide a reasonable extension of time for 
completion of privatization.</DELETED>

    <DELETED>``Subtitle C--COMSAT Governance and Operation</DELETED>

<DELETED>``SEC. 621. ELIMINATION OF PRIVILEGES AND 
              IMMUNITIES.</DELETED>

<DELETED>    ``(a) In General.--COMSAT shall not have any privilege or 
immunity on the basis of its status as a signatory or a representative 
of the Party to INTELSAT, except that COMSAT retains its privileges and 
immunities--</DELETED>
        <DELETED>    ``(1) for those actions taken in its role as the 
        United States signatory to INTELSAT upon instruction of the 
        United States Government;</DELETED>
        <DELETED>    ``(2) for actions taken when acting as the United 
        States signatory in fulfilling obligations under the INTELSAT 
        Operating Agreement;</DELETED>
        <DELETED>    ``(3) for INTELSAT signatory activities which 
        COMSAT does not support; and</DELETED>
        <DELETED>    ``(4) in accordance with any other exceptions as 
        the President shall make in accordance with subsection 
        (b).</DELETED>
<DELETED>    ``(b) Exceptions.--The President, or the President's 
designee, shall ensure that any action authorized by the exception is 
consistent with the purposes of this Act and COMSAT's responsibilities 
as the United States signatory.</DELETED>
<DELETED>    ``(c) 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.</DELETED>
<DELETED>    ``(d) 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 
this section.</DELETED>

<DELETED>``SEC. 622. ABROGATION OF CONTRACTS PROHIBITED.</DELETED>

<DELETED>    ``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.</DELETED>

<DELETED>``SEC. 623. PERMITTED COMSAT INVESTMENT.</DELETED>

<DELETED>    ``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.</DELETED>

          <DELETED>``Subtitle D--General Provisions</DELETED>

<DELETED>``SEC. 631. PROMOTION OF EFFICIENT USE OF ORBITAL SLOTS AND 
              SPECTRUM.</DELETED>

<DELETED>    ``All satellite system operators authorized to access the 
United States market shall 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 relinquish their rights to these resources.</DELETED>

<DELETED>``SEC. 632. PROHIBITION ON PROCUREMENT PREFERENCES.</DELETED>

<DELETED>    ``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, nor 
shall anything in this title or the Communications Act of 1934 be 
construed to result in a bias against the use of INTELSAT through 
existing or future contract awards.</DELETED>

<DELETED>``SEC. 633. SATELLITE AUCTIONS.</DELETED>

<DELETED>    ``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 fora any assignment by competitive bidding of orbital 
locations or spectrum used for the provision of such 
services.</DELETED>

<DELETED>``SEC. 634. RELATIONSHIPS TO OTHER LAWS.</DELETED>

<DELETED>    ``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.</DELETED>

              <DELETED>``Subtitle E--Definitions</DELETED>

<DELETED>``SEC. 641. DEFINITIONS.</DELETED>

<DELETED>    ``(a) In General.--In this title:</DELETED>
        <DELETED>    ``(1) INTELSAT.--The term `INTELSAT' means the 
        International Telecommunications Satellite Organization 
        established pursuant to the Agreement Relating to the 
        International Telecommunications Satellite Organization 
        (INTELSAT).</DELETED>
        <DELETED>    ``(2) COMSAT.--The term `COMSAT' means the 
        corporation established pursuant to title III of this 
        Act.</DELETED>
        <DELETED>    ``(3) Signatory.--The term `signatory' means a 
        Party, or the telecommunications entity designed by a Party, 
        that has signed the Operating Agreement and for which such 
        Agreement has entered into force or to which such Agreement has 
        been provisionally applied.</DELETED>
        <DELETED>    ``(4) 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.</DELETED>
        <DELETED>    ``(5) Commission.--The term `Commission' means the 
        Federal Communications Commission.</DELETED>
        <DELETED>    ``(6) International telecommunication union.--The 
        term `International Telecommunication Union' (ITU) 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 
        orbital arc.</DELETED>
        <DELETED>    ``(7) Privatized INTELSAT.--The term `privatized 
        INTELSAT' means any entity created from the privatization of 
        INTELSAT from the assets of INTELSAT.</DELETED>
        <DELETED>    ``(8) 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.</DELETED>
        <DELETED>    ``(9) 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.</DELETED>
        <DELETED>    ``(10) INTELSAT agreement.--The term `INTELSAT 
        agreement' means the agreement relating to the International 
        Telecommunications Satellite Organization (`INTELSAT'), 
        including all of its annexes (TIAS 7532, 23 UST 
        3813).</DELETED>
        <DELETED>    ``(11) Operating agreement.--The term `operating 
        agreement' means, 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.</DELETED>
        <DELETED>    ``(12) 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.</DELETED>
        <DELETED>    ``(13) 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.</DELETED>
        <DELETED>    ``(14) Satellite digital audio radio service.--The 
        term `satellite digital audio radio service' means a radio 
        communication service in which audio programming is digitally 
        transmitted by one or more space stations directly to fixed, 
        mobile, or portable earth stations, and which may involve 
        complementary repeating terrestrial transmitters, telemetry, 
        tracking and control facilities.</DELETED>
        <DELETED>    ``(15) Direct broadcast satellite service.--The 
        term `direct broadcast satellite service' means a radio 
        communication service in which signals transmitted or 
        retransmitted by space stations are intended for direct 
        reception by the general public. In the Direct Broadcast 
        Satellite Service the term `direct reception' shall encompass 
        both individual reception and community reception.</DELETED>
        <DELETED>    ``(16) Existing authorized services.--All services 
        authorized to be provided by COMSAT via the INTELSAT system as 
        of January 1, 1999.</DELETED>
        <DELETED>    ``(17) IGO.--The term `IGO' means the 
        Intergovernmental Satellite organizations, INTELSAT, and 
        INMARSAT.</DELETED>
        <DELETED>    ``(18) IGO Affiliate.--The term `IGO affiliate' 
        means any entity in which an IGO owns an equity interest of 10 
        percent or more.</DELETED>
<DELETED>    ``(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 such section.''.</DELETED>

<DELETED>SEC. 5. REPEAL OF OWNERSHIP AND STRUCTURAL 
              PROVISIONS.</DELETED>

<DELETED>    Effective as of the date of the enactment of this Act, the 
following provisions of the Communications Satellite Act of 1962 (47 
U.S.C. 701 et seq.) shall cease to be effective:</DELETED>
        <DELETED>    (1) Subsections (a) and (b) of section 
        201.</DELETED>
        <DELETED>    (2) Paragraphs (1) through (10) of section 201 
        (c).</DELETED>
        <DELETED>    (3) Sections 302, 303, and 304.</DELETED>
        <DELETED>    (4) Section 305 (c).</DELETED>
        <DELETED>    (5) Section 402.</DELETED>
        <DELETED>    (6) Section 403 (a).</DELETED>
        <DELETED>    (7) Section 404.</DELETED>

<DELETED>SEC. 6. INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS 
              ACT AMENDMENTS.</DELETED>

<DELETED>    (a) Continuing Provision of Global Satellite Safety 
Services After Privatization of Business Operations of International 
Mobile Satellite Organization.--</DELETED>
        <DELETED>    (1) Authority.--The International Maritime 
        Satellite Telecommunications Act (47 U.S.C. 751 et seq.) is 
        amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 506. GLOBAL SATELLITE SAFETY SERVICES AFTER 
              PRIVATIZATION OF BUSINESS OPERATIONS OF 
              INMARSAT.</DELETED>

<DELETED>    ``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 on behalf of the United States membership in the 
International Mobile Satellite Organization.''.</DELETED>
<DELETED>    (b) Repeal of Superseded Authority.--</DELETED>
        <DELETED>    (1) Repeal.--That Act is further amended by 
        striking sections 502, 503, 504, and 505 (47 U.S.C. 751, 752, 
        753, and 757).</DELETED>
        <DELETED>    (2) Effective Date.--The amendments made by 
        paragraph (1) shall take effect on the date on which the 
        International Mobile Satellite Organization ceases to operate 
        directly a global mobile satellite system.</DELETED>

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 
        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 U.S. 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.

    ``INTELSAT is 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, 
COMSAT) or end users in the United States prior to achieving 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 (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 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;
            ``(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;
            ``(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 consider whether the enumerated 
objectives for a pro-competitive privatization of INTELSAT 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.