[Congressional Record Volume 145, Number 96 (Thursday, July 1, 1999)]
[Senate]
[Pages S8051-S8053]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OPEN-MARKET REORGANIZATION FOR THE BETTERMENT OF INTERNATIONAL
TELECOMMUNICATIONS ACT
Mr. BURNS. I ask unanimous consent that the Senate now proceed to
consideration of S. 376 as reported by the Commerce Committee.
Mr. LOTT. Reserving the right to object, and I will not object, I
just want to commend the Senator from Montana for his dogged
determination to move this legislation. I am sure that all of its
imperfections will be resolved in conference. I commend him for his
efforts.
I withdraw my reservation.
The PRESIDING OFFICER. The clerk will report.
The legislative assistant read as follows:
A bill (S. 376) a bill to amend the Communication Satellite
Act of 1962 to promote competition and privatization in
satellite communications, and for other purposes.
There being no objection, the Senate proceeded to consider the bill.
Mr. LOTT. Mr. President, today the Senate will pass a measure that
will usher in a new era in the international satellite communications
marketplace. This bill is the result of months of deliberation among
many of my colleagues and builds upon a debate from last Congress.
First and foremost, I extend my appreciation to the distinguished
chairman of the Communications Subcommittee, Senator Conrad Burns, for
his unrelenting diligence in working with all parties involved, both in
the Senate and in the private sector. There were numerous players who
had a stake or an interest in this reform measure. Senator Burns was
willing to accommodate their perspectives while remaining true to his
commitment to move forward. I thank him for that.
Along with Senator Burns, other Members in this Chamber, Senator
Breaux, Senator Hollings, Senator Stevens, and others were actively
engaged in the process. Their contributions enhanced the final product
in many respects and helped produce a more balanced bill. Let me also
recognize Senator John McCain, chairman of the Senate Commerce
Committee. His leadership and his support has been instrumental in
helping to advance this effort, and I want to thank him as well.
Reaching a unified unanimous, Senate position on legislation of this
magnitude was not a simple task. Although the bill garnered widespread
agreement on principle, the technical issues have not been easy. Some
were complex, given the marketplace transition from one dominated by
intergovernmental organizations to one of private sector competition.
Other issues were straightforward but contentious. This made it
necessary to take the time and work through some of these areas in a
fair and open manner. We did, and I am pleased that the Senate has now
moved forward.
S. 376 enacts timely reform of a visionary policy adopted by Congress
in the early 1960s to blaze the trail of a global communications
network. It was the right policy at the right time. A solid foundation
was laid as a result, and commercial satellite service has come of age.
Now, over 35 years later, it is the right time for Congress to enact
another visionary public policy. One that will move us from a
marketplace dominated primarily by intergovernmental organizations to
one of competitive, privately owned companies offering viable
opportunities and real choices. A marketplace that will reflect today's
market realities and encourage robust competition in our new satellite
communications community for years to come. Such services are growing
in demand, and Congress should act on behalf of consumers. They deserve
it.
I always say that nothing could get done in the Senate without
dedicated staff. Several individuals worked hard to prepare this
legislation for passage. They include Mark Ashby, Lloyd Ator, Mark
Buse, Greg Elias, Paula Ford, Leo Giacometto, Carole Grunberg, Maureen
McLaughlin, Mike Rawson, Greg Rhode, Mitch Rose, Ivan Schlager, and
Howard Waltzman. I thank them all for their time and their efforts.
It is my hope this is the year Congress will pass an international
satellite privatization bill.
Mr. LIEBERMAN. Mr. President, I rise today to express my concerns
about S. 376, the international satellite reform legislation. While I
commend my colleagues who have worked hard on this very important
issue, I am concerned that there is still more work to do to ensure
reform that results in a truly competitive market.
Comprehensive satellite reform is long overdue. The 1962
Communications Satellite Act is based on a 1960s
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era notion that telecommunications services must be provided by
national or international monopolies. This thinking gave rise to two
treaty organizations, INTELSAT and Inmarsat, to provide international
satellite communications services. Comsat, a private company, was
created by Congress in 1962 and has been the U.S. representative--known
as the Signatory--to these intergovernmental organizations. Today, we
know that technology and the marketplace demand that this monopoly,
governmental model must give way to private competition.
S. 376 may be a first step toward reaching the goal of privatizing
the treaty organizations and reforming the 1962 Act. But more remains
to be done.
One important issue that is very troubling to me involves the legal
immunity that Comsat enjoys as the U.S. Signatory to INTELSAT. This is
a critical issue. The FCC has found that Comsat's immunity gives it
significant competitive advantages. Comsat is a publicly-traded private
company. Legal immunity is an extraordinary advantage in the
marketplace. It is rare for Congress to grant such a powerful advantage
to a private commercial company. We must be very careful here.
I understand that Comsat might remain as the U.S. Signatory until
INTELSAT is fully privatized, and, therefore, it would retain some
official responsibility to represent the U.S. government. I understand
that, in that capacity, it might need legal immunity when it is acting
at the instruction of the U.S. government. But in every other action it
takes, at INTELSAT or elsewhere, it should not and does not enjoy legal
immunity. S. 376 limits Comsat's legal immunity.
My concern here is a simple one. If Congress by law is bestowing
legal immunity on a private company, Congress has an obligation to be
very clear and precise as to what actions are protected. The provisions
in S. 376 that limits Comsat's immunity is not precise and specific
enough. However, the intent and wording is plain that as long as Comsat
represents the U.S. officially at INTELSAT prior to its privatization,
it may enjoy legal immunity, but that immunity is clearly limited to
the actions it takes pursuant to the written instruction it receives
from the U.S. government.
While the intent is clear that Comsat obtains immunity only when it
is acting under written government instruction, the language in this
bill regarding immunity requires further clarification at conference.
We have a duty to be clear and precise when we grant such an
extraordinary benefit as legal immunity to a private company. I raise
this today because I want this issue to be further resolved in the
Conference Committee, prior to enactment.
I look forward to working with my colleagues, Senators Hollings,
McCain, Lott, Stevens, Burns and others on the Commerce Committee to
ensure that this clarification problem is corrected.
Mr DODD. Mr. President, I am pleased that today we will pass S. 376,
which concerns the important topic of International Satellite Reform. I
have followed the issue with interest for years, in part because in my
Foreign Relations Committee work, we have addressed the market access
concerns that are a critical part of opening up this industry.
Although it is significant to finally have the Senate on record
supporting the need for a competitive restructuring of the
international satellite market, this bill will need some work before it
can achieve that goal. It does not make sense to address this issue for
the first time in over 35 years, and to leave some issues unresolved. I
believe that there is room for improvement with respect to balancing
incentives and leverage in making the international marketplace more
competitive. I also believe we need to move quickly to normalize our
relations with Intelsat, and its U.S. component, Comsat.
I urge the Senate conferees from the Commerce Committee to continue
their good work by tightening up this bill and removing unnecessary
loopholes.
Amendment No. 1221
Mr. BURNS. There is a managers' amendment at the desk, and I ask for
its consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Montana [Mr. Burns], for himself, Mr.
Lott, and Mr. Stevens, proposes an amendment numbered 1221.
Mr. BURNS. I ask unanimous consent that the reading of the amendment
be dispensed.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
Section 4 of S. 376 (as amended by the ``ORBIT''
substitute) is amended by striking proposed
Section 603 of the Communications Satellite Act of 1962 and
inserting the following new section:
``SEC. 603. RESTRICTIONS PENDING PRIVATIZATION.
(a) INTELSAT shall be prohibited from entering the United
States market directly to provide any satellite
communications services or space segment capacity to carriers
(other than the United States signatory) or end users in the
United States until July 1, 2001 or until INTELSAT achieves a
pro-competitive privatization pursuant to section 613 (a) if
privatization occurs earlier.
(b) Notwithstanding subsection (a), INTELSAT shall be
prohibited from entering the United States market directly to
provide any satellite communications services or space
segment capacity to any foreign signatory, or affiliate
thereof, and no carrier, other than the United States
signatory, nor any end user, shall be permitted to invest
directly in INTELSAT.
(c) Pending INTELSAT's privatization, the Commission shall
ensure that the United States signatory is compensated by
direct access users for the costs it incurs in fulfilling its
obligations under this Act.
(d) The provisions of subsections (b) and (c) shall remain
in effect only until INTELSAT achieves a pro-competitive
privatization pursuant to section 613(a).''
On line 21, page 32, Section 612(b), insert ``subsection''
after the word ``under''.
On line 21, page 32, Section 612(b), replace ``consider''
with ``determine whether''.
On line 23, page 32, Section 612(b), insert ``exist'' after
the word ``connections''.
On line 9, page 33, Section 612(b)(4), after ``ownership'',
insert ``and whether the affiliate is independent of IGO
signatories or former signatories who control
telecommunications market access in their home territories.''
On line 19, page 35, section 613(c)(1), after ``taxation'',
insert ``and does not unfairly benefit from ownership by
former signatories who control telecommunications market
access to their home territories.''
On line 13, page 37, Section 613(d), replace ``consider''
with ``determine''.
On line 14, page 37, Section 613(d), insert ``and
Inmarsat'' after ``INTELSAT''.
Mr. BURNS. I ask unanimous consent that the amendment be considered
as read and agreed to, the committee substitute be agreed to, as
amended, and the bill be read for the third time and passed, the motion
to reconsider be laid upon the table, and any statements relating to
the bill be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 1221) was agreed to.
The committee substitute, as amended, was agreed to.
The bill was ordered to be engrossed for a third reading, was read
the third time, and passed.
(The bill will be printed in a future edition of the Record.)
Mr. BURNS. Mr. President, I thank our distinguished Majority Leader
and Senator Stevens for working with me, Senator McCain, Senator
Hollings, and Senator Breaux on the passage of S. 376, the Open-Market
Reorganization for the Betterment of International Telecommunications
Act, better known as ``ORBIT.''
The passage of ORBIT by unanimous consent today clearly indicates the
Senate's overwhelming support for the approach taken in ORBIT to reform
our satellite communications laws. I look forward to working with my
good friend in the other body, Chairman Bliley, on getting this
legislation enacted into law this year.
ORBIT is a truly bipartisan bill that updates the Satellite
Communications Act of 1962, expands competition, and encourages new
market entrants in satellite communications. It will help to secure the
rapid and pro-competitive privatization of INTELSAT by a date certain
of January 1, 2002. The bill provides new incentives for INTELSAT's
privatization, while at the same time, carries tough consequences if
INTELSAT fails to achieve this important objective.
The bill also brings needed reform to the U.S. signatory to INTELSAT,
COMSAT, by removing its special
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privileges and immunities. In addition, the bill eliminates outdated
statutory restrictions on the ownership of COMSAT, which will allow
COMSAT to function like a normal, private commercial company.
ORBIT will enhance competition in satellite communications, bringing
far reaching and long-term benefits to consumers both here and abroad.
I thank my colleagues on both sides of the aisle, and I especially want
to thank the staff. The staff of all parties was involved in this.
There have been long hours and long days devoted to this particular
issue.
I yield the floor.
The PRESIDING OFFICER. The Senator from Georgia.
Mr. COVERDELL. I yield to the Senator from Texas.
The PRESIDING OFFICER. The Senator from Texas.
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