[Congressional Record Volume 143, Number 147 (Tuesday, October 28, 1997)]
[Senate]
[Pages S11296-S11299]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  By Mr. INOUYE:
  S. 1328. A bill to amend the Communications Satellite Act of 1962 to 
promote competition and privatization in satellite communications, and 
for other purposes; to the Committee on Commerce, Science, and 
Transportation.


 THE COMMUNICATIONS SATELLITE COMPETITION AND PRIVATIZATION ACT OF 1997

  Mr. INOUYE. Mr. President, today I introduce the Communications 
Satellite Competition and Privatization Act of 1997. This bill amends 
the Communications Satellite Act of 1962 in order to promote full 
competition in the global satellite communication services market by 
fully privatizing satellite communications. It is my intention that the 
introduction of this bill in the Senate will spur debate on this 
important issue. It is my goal to work with all of my colleagues and 
all other interested parties to address the issues presented in this 
bill.
  In 1962, the United States and other countries around the world 
recognized the increasingly important role the new and emerging 
satellite technology could play in facilitating worldwide 
communications. In enacting the Communications Satellite Act of 1962, 
Congress sought to improve the global communications network by 
implementing a global, commercial communications satellite system, 
expeditiously. INTELSAT, Inmarsat, and Comsat emerged as the network 
that would connect Americans to countries throughout the world.
  INTELSATE, Inmarsat, and Comsat have undoubtedly fulfilled their 
missions and have provided us with valuable services. Through their 
communications network, they have connected us whether we are on land 
or on water, by voice, video, and data transmissions, and across 
continents. They have also played a pivotal role in pioneering the 
delivery of satellite communications.
  However, in the 35 years since the act has been adopted, the 
marketplace has changed and the time is now ripe for us to revisit the 
act and put in place a policy that will take the industry and the 
American consumers into the future. Today, many U.S. and foreign 
satellite systems participate in the global satellite marketplace. 
There are also an increasing number of satellite systems seeking 
authority to participate in the marketplace. As additional satellite 
systems enter the marketplace, competition must continue to flourish 
and consumers must obtain needed services at reasonable prices. The 
treaty-based status and intergovernmental structure of INTELSAT, 
Inmarsat, and Comsat must not hinder the ability of these carriers to 
effectively compete in the future and must not distort competition in 
the marketplace.
  Today, many individuals in the government and in industry, nationally 
and worldwide are working on the privatization of INTELSAT and 
Inmarsat. There is a recognition that the status quo will not benefit 
the marketplace nor will it benefit INTELSAT and Inmarsat, or Comsat. 
My introduction of this bill is intended to establish a framework in 
which the Senate can begin a larger discussion of the issues and 
ultimately craft legislation that promotes the delivery of state-of-
the-art satellite communications and brings innovations and cost 
reductions to the public. I encourage my colleagues to join with me in 
supporting a policy that will continue to allow our satellite industry 
to grow and flourish and for consumers to receive the benefits of such 
advancements.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1328

       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 ``Communications Satellite 
     Competition and Privatization Act of 1997''.

      TITLE I--USE OF FEDERAL COMMUNICATIONS COMMISSION LICENSING 
          REQUIREMENTS TO SECURE COMPETITION AND PRIVATIZATION

     SEC. 101. PURPOSE.

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

     SEC. 102. REVISION OF COMMUNICATIONS SATELLITE ACT OF 1962.

       (a) Addition of New Title.--The Communications Satellite 
     Act of 1962 (47 U.S.C. 101) is amended by adding at the end 
     the following new title:

[[Page S11297]]

        ``TITLE VI--COMMUNICATIONS COMPETITION AND PRIVATIZATION

      ``SUBTITLE A--ACTIONS TO ENSURE PROCOMPETITIVE PRIVATIZATION

     SEC. 601. FEDERAL COMMUNICATIONS COMMISSION LICENSING.

       ``(a) Licensing for Separated Entitles.--
       ``(1) Competition test.--The Commission may not issue a 
     license or construction permit to any separated entity, or 
     renew or permit the assignment or use of any such license or 
     permit, or authorize the use by any entity subject to United 
     States jurisdiction of any space segment owned or operated by 
     any separated entity, unless the Commission determines that 
     such issuance, renewal, assignment, or use will not harm 
     competition in the telecommunications market of the United 
     States. If the Commission does not make such a determination, 
     it shall deny or revoke authority to use space segment owned 
     or operated by the separated entity to provide services to, 
     from, or within the United States.
       ``(2) Criteria for competition test.--In making the 
     determination required by paragraph (1), the Commission shall 
     use the licensing criteria in sections 621 and 623, and shall 
     not make such a determination unless the Commission 
     determines that the privatization of any separated entity is 
     consistent with such criteria.
       ``(b) Licensing for INTELSAT, INMARSAT, and successor 
     entities.--
       ``(1) Competition test.--The Commission shall substantially 
     limit, deny, or revoke the authority for any entity subject 
     to United States jurisdiction to use space segment owned or 
     operated by INTELSAT or INMARSAT or any successor entities to 
     provide non-core services to, from, or within the United 
     States, unless the Commission determines--
       ``(A) after January 1, 2002, in the case of INTELSAT and 
     its successor entities, that INTELSAT and any successor 
     entities have been privatized in a manner that will not harm 
     competition in the telecommunications markets of the United 
     States; or
       ``(B) after January 1, 2001, in the case of INMARSAT and 
     its successor entities, that INMARSAT and any successor 
     entities have been privatized in a manner that will not harm 
     competition in the telecommunications markets of the United 
     States.
       ``(2) Criteria for competition test.--In making the 
     determination required by paragraph (1), the Commission use 
     the licensing criteria in sections 621, 622, and 624, and 
     shall not make such a determination unless the Commission 
     determines that such privatization is consistent with such 
     criteria.
       ``(c) Prevention of Expansion.--Pending privatization in 
     accordance with the licensing criteria in subtitle B, the 
     Commission shall not--
       ``(1) issue an authorization, license, or permit to, or 
     renew the license or permit of, any provider of services 
     using INTELSAT or INMARSAT space segment, or authorize the 
     use of such space segment, for additional services (including 
     additional applications of existing services) or additional 
     areas of business; or
       ``(2) otherwise assist the expansion of INTELSAT or 
     INMARSAT services, including through authorizing COMSAT's 
     investment in new INTELSAT or INMARSAT satellites or 
     registering for orbital slots intended for INTELSAT or 
     INMARSAT provision of additional services (including 
     additional applications of existing services) or additional 
     areas of business.

     ``SEC. 602. INTELSAT OR INMARSAT ORBITAL SLOTS.

       ``Unless, in a proceeding under section 601(b), the 
     Commission determines that INTELSAT or INMARSAT have been 
     privatized in a manner that will not harm competition, then--
       ``(1) the President shall oppose, and the Commission shall 
     not assist, any registration for new orbital slots for 
     INTELSAT or INMARSAT orbital slots--
       ``(A) with respect to INTELSAT, after January 1, 2002, and
       ``(B) with respect to INMARSAT, after January 1, 2001, and
       ``(2) the President and Commission shall, consistent with 
     the deadlines in paragraph (1), take all other necessary 
     measures to preclude procurement, registration, development, 
     or use of new satellites which would provide non-core 
     services.

  ``SUBTITLE B--FEDERAL COMMUNICATIONS COMMISSION LICENSING CRITERIA: 
                         PRIVATIZATION CRITERIA

     ``SEC. 621. GENERAL CRITERIA TO ENSURE A PRO-COMPETITIVE 
                   PRIVATIZATION OF INTELSAT AND INMARSAT.

       ``The President and the Commission shall secure a pro-
     competitive privatization of INTELSAT and INMARSAT that meets 
     the criteria set forth in this section and sections 622 
     through 624. In securing such privatizations, the following 
     criteria shall be applied as licensing criteria for purposes 
     of subtitle A:
       ``(1) dates for privatization.--Privatization shall be 
     obtained in accordance with the criteria of this title of--
       ``(A) INTELSAT as soon as practicable, but no later than 
     January 1, 2002, and
       ``(B) INMARSAT as soon as practicable, but no later than 
     January 1, 2001.
       ``(2) Independence.--The successor entities and separated 
     entities of INTELSAT and INMARSAT resulting from the 
     privatization obtained pursuant to paragraph (1) shall--
       ``(A) be entities that are national corporations; and
       ``(B) have ownership and management that is independent 
     of--
       ``(i) any signatories or former signatories that control 
     access to national telecommunications markets; and
       ``(ii) any intergovernmental organization remaining after 
     the privatization.
       ``(3) Termination of privileges and immunities.--The 
     preferential treatment of INTELSAT and INMARSAT shall not be 
     extended to any successor entity or separated entity of 
     INTELSAT or INMARSAT. Such preferential treatment includes--
       ``(A) privileged or immune treatment by national 
     governments;
       ``(B) privileges or immunities or other competitive 
     advantages of the type accorded INTELSAT and INMARSAT and 
     their signatories though the terms and operation of the 
     INTELSAT Agreement and the associated Headquarters Agreement 
     and the INMARSAT Convention; and
       ``(C) preferential access to orbital slots.
       ``(4) Prevention of expansion during transition.--During 
     the transition period prior to full privatization, INTELSAT 
     and INMARSAT shall be precluded from expanding into 
     additional services (including additional applications of 
     existing services) or additional areas of business.
       ``(5) Conversion to stock corporations.--Any successor 
     entity or separated entity created out of INTELSAT or 
     INMARSAT shall be a national corporation established through 
     the execution of an initial public offering as follows:
       ``(A) Any successor entities and separated entities shall 
     be incorporated as private corporations subject to the laws 
     of the nation in which incorporated.
       ``(B) An initial public offering of securities of any 
     successor entity or separated entity shall be conducted no 
     later than--
       ``(i) January 1, 2001, for the successor entities of 
     INTELSAT; and
       ``(ii) January 1, 2000, for the successor entities of 
     INMARSAT.
       ``(C) The shares of any successor entities and separated 
     entities shall be listed for trading on one or more major 
     stock exchanges with transparent and effective securities 
     regulation.
       ``(D) A majority of the board of directors of any successor 
     entity or separated entity shall not be subject to selection 
     or appointment by, or otherwise serve as representatives of--
       ``(i) any signatory or former signatory that controls 
     access to national telecommunications markets; or
       ``(ii) any intergovernmental organization remaining after 
     the privatization.
       ``(E) Any transactions or other relationships between or 
     among any successor entity, separated entity, INTELSAT, or 
     INMARSAT shall be conducted on an arm's length basis.
       ``(6) Regulatory treatment.--Any successor entity or 
     separated entity shall apply through the appropriate national 
     licensing authorities for international frequency assignments 
     and associated orbital registrations for all satellites.
       ``(7) Competition policies in domiciliary country.--Any 
     successor entity or separated entity shall be incorporated 
     and headquartered in a nation or nations that--
       ``(A) have effective laws and regulations that secure 
     competition in telecommunications services;
       ``(B) are signatories of the World Trade Organization Basic 
     Telecommunications Services Agreement; and
       ``(C) have a schedule of commitments in such Agreement that 
     includes non-discriminatory market access to their satellite 
     markets.
       ``(8) Return of unused orbital slots.--INTELSAT, INMARSAT, 
     and any successor entities and separated entities shall not 
     be permitted to warehouse orbital slots that do not have 
     satellites that are providing commercial services, and any 
     orbital slots of INTELSAT or INMARSAT which are not in use or 
     brought into use providing commercial services as of May 12, 
     1997, or thereafter, shall be returned to the 
     International Telecommunication Union for reallocation.
       ``(9) Appraisal of assets.--Before any transfer of assets 
     by INTELSAT or INMARSAT to any successor entity or separated 
     entity, such assets shall be independently audited for 
     purposes of appraisal, at both book and fair market value.

     ``SEC. 622. SPECIFIC CRITERIA FOR INTELSAT.

       ``In securing the privatizations required by section 621, 
     the following additional criteria with respect to INTELSAT 
     privatization shall be applied as licensing criteria for 
     purposes of subtitle A:
       ``(1) Number of competitors.--The number of competitors in 
     the market served by INTELSAT, including the number of 
     competitors created out of INTELSAT, shall be sufficient to 
     create a fully competitive market.
       ``(2) Prevention of expansion during transition.--Pending 
     privatization in accordance with the criteria in this title, 
     INTELSAT shall not expand by receiving additional orbital 
     slots, placing new satellites in existing slots, or procuring 
     new or additional satellites, except for specified 
     replacement satellites for which construction contracts have 
     been executed as of May 12, 1997, and the United States shall 
     oppose such expansion--
       ``(A) in INTELSAT, including at the Assembly of Parties,
       ``(B) in the International Telecommunication Union,

[[Page S11298]]

       ``(C) through United States instructions to COMSAT,
       ``(D) in the Commission, through declining to facilitate 
     the registration of additional orbital slots or the provision 
     of additional services (including additional applications of 
     existing services) or additional areas of business; and
       ``(E) in other appropriate fora.
       ``(3) Technical coordination among signatories.--Technical 
     coordination shall not be used to impair competition or 
     competitors, and coordination under Article XIV(d) of the 
     INTELSAT Agreement shall be eliminated.

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

       ``In securing the privatizations required by section 621, 
     the following additional criteria with respect to any 
     INTELSAT separated entity shall be applied as licensing 
     criteria for purposes of subtitle A:
       ``(1) Date for public offering.--Within one year after any 
     decision to create any separated entity, a public offering of 
     the securities of such entity shall be conducted.
       ``(2) Privileges and immunities.--The privileges and 
     immunities of INTELSAT and its signatories shall be waived 
     with respect to any transactions with any separated entity, 
     and any limitations on private cause of action that would 
     otherwise generally be permitted against any separated entity 
     shall be eliminated.
       ``(3) Interlockig directorates or employees.--None of the 
     officers, directors, or employees of any separated entity 
     shall be individuals who are officers, directors, or 
     employees of INTELSAT.
       ``(4) Spectrum assignments.--After the initial transfer 
     which may accompany the creation of a separated entity, the 
     portions of the electromagnetic spectrum assigned on the date 
     of enactment of this Act to INTELSAT shall not be transferred 
     between INTELSAT and any separated entity.
       ``(5) Reaffiliation prohibited.--Any merger or ownership or 
     management ties or exclusive arrangements between a 
     privatized INTELSAT or any successor entity and any separated 
     entity shall be prohibited until 15 years after the 
     completion of INTELSAT privatization under this title.

     ``SEC. 624. SPECIFIC CRITERIA FOR INMARSAT.

       ``In securing the privatizations required by section 621, 
     the following additional criteria with respect to INMARSAT 
     privatization shall be applied as licensing criteria for 
     purposes of subtitle A:
       ``(1) Multiple signatories and direct access.--Multiple 
     signatories and direct access to INMARSAT shall be permitted.
       ``(2) Prevention of expansion during transition.--Pending 
     privatization in accordance with the criteria in this title, 
     INMARSAT should not expanded by receiving additional orbital 
     slots, placing new satellites in existing slots, or procuring 
     new or additional satellites, except for specified 
     replacement satellites for which construction contracts have 
     been executed as of May 12, 1997, and the United States shall 
     oppose such expansion--
       ``(A) in INMARSAT, including at the Council and Assembly of 
     Parties,
       ``(B) in the International Telecommunication Union,
       ``(C) through United States instructions to COMSAT,
       ``(D) in the Commission, through declining to facilitate 
     the registration of additional orbital slots or providing new 
     services or uses for existing slots, and
       ``(E) in other appropriate fora.
       ``(3) Number of competitors.--The number of competitors in 
     the markets served by INMARSAT, including the number of 
     competitors created out of INMARSAT, shall be sufficient to 
     create a fully competitive market.
       ``(4) Reaffiliation prohibited.--Any merger or ownership or 
     management ties or exclusive arrangements between INMARSAT or 
     any successor entity or separated entity and ICO shall be 
     prohibited until 15 years after the completion of INMARSAT 
     privatization under this title.
       ``(5) Interlocking directorates or employees.--None of the 
     officers, directors, or employees of INMARSAT or any 
     successor entity or separated entity shall be individuals who 
     are officers, directors, or employees of ICO.
       ``(6) Spectrum assignments.--The portions of the 
     electromagnetic spectrum assigned on the date of enactment of 
     this Act to INMARSAT--
       ``(A) shall, after January 1, 2006, or the date on which 
     the life of the current generation of INMARSAT satellites 
     ends, whichever is later, be made available for assignment to 
     all systems (including the privatized INMARSAT) on a non-
     discriminatory basis; and
       ``(B) shall not be transferred between INMARSAT and ICO.

         ``SUBTITLE C--DEREGULATION AND OTHER STATUTORY CHANGES

     ``SEC. 641. DIRECT ACCESS; TREATMENT OF COMSAT AS NONDOMINANT 
                   CARRIER.

       ``The Commission shall take such actions as may be 
     necessary--
       ``(1) to permit providers or users of telecommunications 
     services to obtain direct access to INTELSAT 
     telecommunications services as soon as practicable, but no 
     later than January 1, 2001;
       ``(2) to permit providers or users of telecommunications 
     services to obtain direct access to INMARSAT 
     telecommunications services as soon as practicable, but no 
     later than January 1, 2000; and
       ``(3) to treat COMSAT as a nondominant carrier for the 
     purposes of the Commission's regulations on the effective 
     date of the actions taken pursuant to paragraphs (1) and (2), 
     respectively.

     ``SEC. 642. SIGNATORY ROLE.

       ``(a) Multiple Signatories Permitted.--
       ``(1) INTELSAT.--As soon as practicable, but no later than 
     January 1, 2001, multiple signatories shall be permitted to 
     represent the United States in INTELSAT.
       ``(2) INMARSAT.--As soon as practicable, but not later than 
     January 1, 2000, multiple signatories shall be permitted to 
     represent the United States in INMARSAT.
       ``(b) Elimination of COMSAT Privileges and Immunities.--
     Notwithstanding any other law or executive agreement, COMSAT 
     shall not be entitled to any privileges or immunities under 
     the laws of the United States or any State on the basis of 
     its status as a signatory of INTELSAT or INMARSAT.
       ``(c) Parity of Treatment.--Notwithstanding any other law 
     or executive agreement, the Commission shall have the 
     authority to impose similar regulatory fees on the United 
     States signatory which it imposes on other entities providing 
     similar services.

     ``SEC. 643. ELIMINATION OF PROCUREMENT PREFERENCES.

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

     ``SEC. 644. USE OF ITU TECHNICAL COORDINATION.

       ``The Commission and United States satellite companies 
     shall utilize the International Telecommunication Union 
     procedures for technical coordination with INTELSAT and its 
     successor entities and separated entities, rather than 
     INTELSAT procedures.

     ``SEC. 645. TERMINATION OF COMMUNICATIONS SATELLITE ACT OF 
                   1962 PROVISIONS.

       ``Effective on the dates specified, the following 
     provisions of this Act shall cease to be effective:
       ``(1) Date of enactment of this title: Sections 101 and 
     102; paragraphs (1), (5) and (6) of section 201(a); section 
     301; section 303; section 304; section 502; and paragraphs 
     (2) and (4) of section 504(a).
       ``(2) On the effective date of the Commission's order that 
     establishes direct access to INTELSAT space segment: 
     Paragraphs (1), (3) through (5), and (8) through (10) of 
     section 201(c).
       ``(3) On the effective date of the Commission's order that 
     establishes direct access to INMARSAT space segment: 
     Subsections (a) through (d) of section 503.
       ``(4) On the effective date of the Commission order 
     determining under section 601(b)(2) that INMARSAT 
     privatization is consistent with criteria in sections 621 and 
     624: Section 504(b).
       ``(5) On the effective date of a Commission order 
     determining under section 601(b)(2) that INTELSAT 
     privatization is consistent with criteria in sections 621 and 
     622: Paragraphs (2) and (4) of section 201(a); section 
     201(c)(2); subsection (a) of section 403; and section 404.

     ``SEC. 646. REPORTS TO THE CONGRESS.

       ``(a) Annual Reports.--The President and the Commission 
     shall report to the Congress within 90 calendar days of the 
     enactment of this Act, and not less than annually thereafter, 
     on the progress made to achieve the objectives and carry out 
     the purposes and provisions of this Act. Such reports shall 
     be made available immediately to the public.
       ``(b) Contents of Reports.--The reports submitted pursuant 
     to subsection (a) shall include the following:
       ``(1) Progress with respect to each objective since the 
     most recent preceding report.
       ``(2) Views of the Parties with respect to privatization.
       ``(3) Views of industry and consumers on privatization.

     ``SEC. 647. CONSULTATION WITH CONGRESS.

       ``The President's designees and the Commission shall 
     consult with the Committee on Commerce of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate prior to each meeting of the 
     INTELSAT or INMARSAT Assembly of Parties, the INTELSAT Board 
     of Governors, the INMARSAT Council, or appropriate working 
     group meetings.

     ``SEC. 648. SATELLITE AUCTIONS.

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

           ``SUBTITLE D--NEGOTIATIONS TO PURSUE PRIVATIZATION

     ``SEC. 661. METHODS TO PURSUE PRIVATIZATIONS.

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

                       ``SUBTITLE E--DEFINITIONS

     ``SEC. 681. DEFINITIONS.

       ``(a) In General.--As used in this title:

[[Page S11299]]

       ``(1) INTELSAT.--The term `INTELSAT' means the 
     International Telecommunications Satellite Organization 
     established pursuant to the Agreement Relating to the 
     International Telecommunications Satellite Organization 
     (INTELSAT).
       ``(2) INMARSAT.--The term `INMARSAT' means the 
     International Mobile Satellite Organization established 
     pursuant to the Convention on the International Maritime 
     Organization.
       ``(3) Signatories.--The term `signatories'--
       ``(A) in the case of INTELSAT, or INTELSAT successors or 
     separated entities, means a Party, or the telecommunications 
     entity designated by a Party, that has signed the Operating 
     Agreement and for which such Agreement has entered into force 
     or to which such Agreement has been provisionally applied;
       ``(B) in the case of INMARSAT, or INMARSAT successors or 
     separated entities, means either a Party to, or an entity 
     that has been designated by a Party to sign, the Operating 
     Agreement.
       ``(4) Party.--The term `Party'--
       ``(A) in the case of INTELSAT, means a nation for which the 
     INTELSAT agreement has entered into force or been 
     provisionally applied; and
       ``(B) in the case of INMARSAT, means a nation for which the 
     INMARSAT convention has entered into force.
       ``(5) Commission.--The term `Commission' means the Federal 
     Communications Commission.
       ``(6) International Telecommunication Union.--The term 
     `International Telecommunication Union' means the 
     intergovernmental organization that is a specialized agency 
     of the United Nations in which member countries cooperate for 
     the development of telecommunications, including adoption of 
     international regulations governing terrestrial and space 
     uses of the frequency spectrum as well as use of the 
     geostationary satellite orbit.
       ``(7) Direct Access.--The term `direct access' means 
     arrangements for purchase of space segment capacity from, or 
     investment in (or both), INTELSAT or INMARSAT by means other 
     than through a signatory.
       ``(8) Successor entity.--The term `successor entity'--
       ``(A) means any privatized entity created from the 
     privatization of INTELSAT or INMARSAT or from the assets of 
     INTELSAT or INMARSAT, but
       ``(B) does not include any entity that is a separated 
     entity.
       ``(9) Separated entity.--The term `separated entity' means 
     a privatived entity to whom a portion of the assets owned by 
     INTELSAT or INMARSAT are transferred prior to full 
     privatization of INTELSAT or INMARSAT, including in 
     particular the entity whose structure was under discussion by 
     INTELSAT as of May 12, 1997, but excluding ICO.
       (10) Orbital slot.--The term `orbital slot' means the 
     location for placement of a satellite on the geostationary 
     orbital are as defined in the International Telecommunication 
     Union Radio Regulations.
       ``(11) Space segment.--The term `space segment' means the 
     satellites, and the tracking, telemetry, command, control, 
     monitoring and related facilities and equipment used to 
     support the operation of satellites owned or leased by 
     INTELSAT, INMARSAT, or a separated entity or successor 
     entity.
       ``(12) Non-core.--The term `non-core services' means, with 
     respect to INTELSAT provision, services other than public-
     switched network voice telephony and occasional-use 
     television, and with respect to INMARSAT provision, services 
     other than global maritime distress and safety services or 
     other existing maritime or aeronautical services for which 
     there are not alternative providers.
       ``(13) Additional services.--The term `additional services' 
     means Internet services, high-speed data, non-maritime or 
     non-aeronautical mobile services, Direct to Home (DTH) or 
     Direct Broadcast Satellite (DBS) video services, or Ka-band 
     services.
       ``(14) INTELSAT.--The term `INTELSAT' means the 
     International Telecommunications Satellite Organization.
       ``(15) INTELSAT agreement.--The term `INTELSAT Agreement' 
     means the Agreement Relating to the International 
     Telecommunications Satellite Organization (INTELSAT), 
     including all its annexes (TIAS 7532, 23 UST 3813).
       ``(16) Headquarters agreement.--The term `Headquarters 
     Agreement' means the International Telecommunication 
     Satellite Organization Headquarters Agreement (November 24, 
     1976) (TIAS8542, 28 UST 2248).
       ``(17) 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.
       ``(18) INMARSAT Convention.--The term `INMARSAT Convention' 
     means the Convention on the International Maritime Satellite 
     Organization (INMARSAT) (TIAS 9605, 31 UST 1).
       ``(19) National corporation.--The term `national 
     corporation' means a corporation the ownership of which is 
     held through publicly traded securities, and that is 
     incorporated under, and subject to, the laws of a national, 
     state, or territorial government.
       ``(20) COMSAT.--The term `COMSAT' means the corporation 
     established pursuant to title III of the Communications 
     Satellite Act of 1962 (47 U.S.C. 731 et seq.)
       ``(21) ICO.--The term `ICO' means the company known, as of 
     the date of enactment of this Act, as ICO Global 
     Communications, Inc.
       ``(b) Common terminology.--Except as otherwise provided in 
     subsection (a), terms used in this Act that are defined in 
     section 3 of the Communications Act of 1934 have the meanings 
     provided in such section.'.

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