[Congressional Record Volume 144, Number 103 (Tuesday, July 28, 1998)]
[Senate]
[Page S9138]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BURNS:
  S. 2365. 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.


       international satellite communications reform act of 1998

  Mr. BURNS. Mr. President, I rise today to introduce the 
``International Satellite Communications Reform Act of 1998,'' a bill 
to update our nation's policies regarding the provision of 
international satellite services.
  During the final days of the First Session of the 105th Congress, I 
announced that I would engage in an effort to eliminate outdated 
regulations and foster competition in the global satellite market. 
Since that time, I have met with industry representatives and officials 
from the Administration, and my office has conducted a series of open 
briefings intended to fully educate Members and their staff on the 
competing interests and opposing views surrounding this complicated 
debate. The ``International Satellite Communications Reform Act of 
1998'' represents the culmination of a great deal of hard work, and I 
would like to thank the Members and staff, industry representatives, 
and Administration officials who worked with me to develop a consensus 
bill for their efforts. It is my intention to hold a hearing on this 
legislation when the Senate returns in early September.
  Currently, the satellite policies of the United States are based upon 
the Communications Satellite Act of 1962, a bill drafted in the midst 
of the Cold War, when the United States was engaged in the ``Space 
Race'' with the Soviet Union. At that time, America wanted to 
demonstrate to the rest of the world its commitment to the peaceful 
uses of outer space and to bring the benefits of space technology to 
all the people of the world.
  In that effort, we have succeeded magnificently. The 1962 Act led to 
the formation of Comsat Corporation, and then later of INTELSAT, which 
today provides global connectivity from the United States to virtually 
every point on the globe. The 1962 Act has paid the United States 
enormous dividends, to the point where the policy framework established 
by Congress in 1962 has been eclipsed by the success of these ventures, 
and by the development of healthy marketplace competition.
  The ``International Satellite Communications Reform Act of 1998'' is 
designed to establish a new policy framework for international 
satellite communications for the 21st Century. It is designed to build 
on the success of the 1962 Act in a manner that preserves the benefits 
of that Act, while unleashing the power of private enterprise to 
provide new and innovative services to the people of the world.
  The ``International Satellite Communications Reform Act of 1998'' 
will help to bring about the privatization of INTELSAT and Inmarsat, so 
that market forces may shape the services and prices available to 
American consumers. This bill is also designed to open foreign markets 
to competition--but to do so in a way that does not harm consumers nor 
reduce the number of competitors in the marketplace. It requires that 
all satellite service providers be subject to the same regulatory 
requirements while preserving lifeline services to those countries that 
do not generate enough revenues to entice the entrepreneurs to offer 
service. This will ensure that universal service and global 
connectivity will always be available to U.S. consumers.
  Achieving the goal of drafting a thoughtful, balanced bill was not 
easy. I have worked with my colleagues on the Commerce Committee to 
draft a bill that is fair in its approach, consistent with our 
international obligations, and which maintains universal service. At 
the same time the bill relies upon free enterprise, market forces, and 
competition.
  In my view, the ``International Satellite Communications Reform Act 
of 1998'' builds upon the successes of the 1962 Act, while recognizing 
that satellite technology has been successfully commercialized and that 
the old policy framework is no longer appropriate.
  I hope that my colleagues will join me in cosponsoring this 
legislation, in which I have tried to balance competing policy 
objectives. I look forward to continuing to work with my colleagues to 
enact this legislation, and update our international satellite policy 
for the 21st Century.
                                 ______