[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Pages S14914-S14918]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   COMMUNICATIONS SATELLITE COMPETITION AND PRIVATIZATION ACT OF 1999

  Ms. COLLINS. Mr. President, I ask the Chair lay before the Senate a 
message from the House of Representatives on the bill (S. 376) to amend 
the Communications Satellite Act of 1962 to promote competition and 
privatization in satellite communications, and for other purposes.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:

       Resolved, That the bill from the Senate (S. 376) entitled 
     ``An Act to amend the Communications Satellite Act of 1962 to 
     promote competition and privatization in satellite 
     communications, and for other purposes'', do pass with the 
     following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Communications Satellite 
     Competition and Privatization Act of 1999''.

     SEC. 2. 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. 3. REVISION OF COMMUNICATIONS SATELLITE ACT OF 1962.

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

[[Page S14915]]

        ``TITLE VI--COMMUNICATIONS COMPETITION AND PRIVATIZATION
      ``Subtitle A--Actions To Ensure Procompetitive Privatization

     ``SEC. 601. FEDERAL COMMUNICATIONS COMMISSION 
                   LICENSING.

       ``(a) Licensing for Separated Entities.--
       ``(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, leased, 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, leased, 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, 
     leased, 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 April 1, 2001, 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 April 1, 2000, 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 shall 
     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.
       ``(3) Clarification: competitive safeguards.--In making its 
     licensing decisions under this subsection, the Commission 
     shall consider whether users of non-core services provided by 
     INTELSAT or Inmarsat or successor or separated entities are 
     able to obtain non-core services from providers offering 
     services other than through INTELSAT or Inmarsat or successor 
     or separated entities, at competitive rates, terms, or 
     conditions. Such consideration shall also include whether 
     such licensing decisions would require users to replace 
     equipment at substantial costs prior to the termination of 
     its design life. In making its licensing decisions, the 
     Commission shall also consider whether competitive 
     alternatives in individual markets do not exist because they 
     have been foreclosed due to anticompetitive actions 
     undertaken by or resulting from the INTELSAT or Inmarsat 
     systems. Such licensing decisions shall be made in a manner 
     which facilitates achieving the purposes and goals in this 
     title and shall be subject to notice and comment.
       ``(c) Additional Considerations in Determinations.--In 
     making its determinations and licensing decisions under 
     subsections (a) and (b), the Commission shall take into 
     consideration the United States obligations and commitments 
     for satellite services under the Fourth Protocol to the 
     General Agreement on Trade in Services.
       ``(d) Independent Facilities Competition.--Nothing in this 
     section shall be construed as precluding COMSAT from 
     investing in or owning satellites or other facilities 
     independent from INTELSAT and Inmarsat, and successor or 
     separated entities, or from providing services through 
     reselling capacity over the facilities of satellite systems 
     independent from INTELSAT and Inmarsat, and successor or 
     separated entities. This subsection 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.

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

       ``(a) Required Actions.--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 locations for 
     INTELSAT or Inmarsat--
       ``(A) with respect to INTELSAT, after April 1, 2001; and
       ``(B) with respect to Inmarsat, after April 1, 2000; 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.
       ``(b) Exception.--
       ``(1) Replacement and previously contracted satellites.--
     Subsection (a) shall not apply to--
       ``(A) orbital locations for replacement satellites (as 
     described in section 622(2)(B)); and
       ``(B) orbital locations for satellites that are contracted 
     for as of March 25, 1998, if such satellites do not provide 
     additional services.
       ``(2) Limitation on exception.--Paragraph (1) is available 
     only with respect to satellites designed to provide services 
     solely in the C and Ku for INTELSAT, and L for Inmarsat 
     bands.

     ``SEC. 603. ADDITIONAL SERVICES AUTHORIZED.

       ``(a) Services Authorized During Continued Progress.--
       ``(1) Continued authorization.--The Commission may 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, subject to the requirements of this section.
       ``(2) Additional services permitted under new contracts 
     unless progress fails.--If the Commission makes a finding 
     under subsection (b) that conditions required by such 
     subsection have not been attained, the Commission may not, 
     pursuant to paragraph (1), permit such additional services to 
     be provided directly or indirectly under new contracts for 
     the use of INTELSAT or Inmarsat space segment, unless and 
     until the Commission subsequently makes a finding under such 
     subsection that such conditions have been attained.
       ``(3) Prevention of evasion.--The Commission shall, by 
     rule, prescribe means reasonably designed to prevent evasions 
     of the limitations contained in paragraph (2) by customers 
     who did not use specific additional services as of the date 
     of the Commission's most recent finding under subsection (b) 
     that the conditions of such subsection have not been 
     obtained.
       ``(b) Requirements for Annual Findings.--
       ``(1) General requirements.--The findings required under 
     this subsection shall be made, after notice and comment, on 
     or before January 1 of 2000, 2001, and 2002. The Commission 
     shall find that the conditions required by this subsection 
     have been attained only if the Commission finds that--
       ``(A) substantial and material progress has been made 
     during the preceding period at a rate and manner that is 
     probable to result in achieving pro-competitive 
     privatizations in accordance with the requirements of this 
     title; and
       ``(B) neither INTELSAT nor Inmarsat are hindering 
     competitors' or potential competitors' access to the 
     satellite services marketplace.
       ``(2) First finding.--In making the finding required to be 
     made on or before January 1, 2000, the Commission shall not 
     find that the conditions required by this subsection have 
     been attained unless the Commission finds that--
       ``(A) COMSAT has submitted to the INTELSAT Board of 
     Governors a resolution calling for the pro-competitive 
     privatization of INTELSAT in accordance with the requirements 
     of this title;
       ``(B) the United States has submitted such resolution at 
     the first INTELSAT Assembly of Parties meeting that takes 
     place after such date of enactment; and
       ``(C) the INTELSAT Assembly of Parties has created a 
     working party to consider and make recommendations for the 
     pro-competitive privatization of INTELSAT consistent with 
     such resolution.
       ``(3) Second annual finding.--In making the finding 
     required to be made on or before January 1, 2001, the 
     Commission shall not find that the conditions required by 
     this subsection have been attained unless the INTELSAT 
     Assembly of Parties has approved a recommendation for the 
     pro-competitive privatization of INTELSAT in accordance with 
     the requirements of this title.
       ``(4) Third annual finding.--In making the finding required 
     to be made on or before January 1, 2002, the Commission shall 
     not find that the conditions required by this subsection have 
     been attained unless the pro-competitive privatization of 
     INTELSAT in accordance with the requirements of this title 
     has been achieved by such date.
       ``(5) Criteria for evaluation of hindering access.--The 
     Commission shall not make a determination under paragraph 
     (1)(B) unless the Commission determines that INTELSAT and 
     Inmarsat are not in any way impairing, delaying, or denying 
     access to national markets or orbital locations.
       ``(c) Exception for Services Under Existing Contracts If 
     Progress Not Made.--This section shall not preclude INTELSAT 
     or Inmarsat or any signatory thereof from continuing to 
     provide additional services under an agreement with any third 
     party entered into prior to any finding under subsection (b) 
     that the conditions of such subsection have not been 
     attained.
  ``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 
     April 1, 2001; and
       ``(B) Inmarsat as soon as practicable, but no later than 
     April 1, 2000.
       ``(2) Independence.--The successor entities and separated 
     entities of INTELSAT and Inmarsat resulting from the 
     privatization obtained pursuant to paragraph (1) shall--

[[Page S14916]]

       ``(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 through the terms and operation of the 
     INTELSAT Agreement and the associated Headquarters Agreement 
     and the Inmarsat Convention; and
       ``(C) preferential access to orbital locations, including 
     any access to orbital locations that is not subject to the 
     legal or regulatory processes of a national government that 
     applies due diligence requirements intended to prevent the 
     warehousing of orbital locations.
       ``(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) April 1, 2001, for the successor entities of 
     INTELSAT; and
       ``(ii) April 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 locations.--INTELSAT, 
     Inmarsat, and any successor entities and separated entities 
     shall not be permitted to warehouse any orbital location 
     that--
       ``(A) as of March 25, 1998, did not contain a satellite 
     that was providing commercial services, or, subsequent to 
     such date, ceased to contain a satellite providing commercial 
     services; or
       ``(B) as of March 25, 1998, was not designated in INTELSAT 
     or Inmarsat operational plans for satellites for which 
     construction contracts had been executed.

     Any such orbital location of INTELSAT or Inmarsat and of any 
     successor entities and separated entities 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.
       ``(10) Limitation on investment.--Notwithstanding the 
     provisions of this title, COMSAT shall not be authorized by 
     the Commission to invest in a satellite known as K-TV, unless 
     Congress authorizes such investment.

     ``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 markets 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.--
       ``(A) In general.--Pending privatization in accordance with 
     the criteria in this title, INTELSAT shall not expand by 
     receiving additional orbital locations, placing new 
     satellites in existing locations, or procuring new or 
     additional satellites except as permitted by subparagraph 
     (B), and the United States shall oppose such expansion--
       ``(i) in INTELSAT, including at the Assembly of Parties;
       ``(ii) in the International Telecommunication Union;
       ``(iii) through United States instructions to COMSAT;
       ``(iv) in the Commission, through declining to facilitate 
     the registration of additional orbital locations or the 
     provision of additional services (including additional 
     applications of existing services) or additional areas of 
     business; and
       ``(v) in other appropriate fora.
       ``(B) Exception for certain replacement satellites.--The 
     limitations in subparagraph (A) shall not apply to any 
     replacement satellites if--
       ``(i) such replacement satellite is used solely to provide 
     public-switched network voice telephony or occasional-use 
     television services, or both;
       ``(ii) such replacement satellite is procured pursuant to a 
     construction contract that was executed on or before March 
     25, 1998; and
       ``(iii) construction of such replacement satellite 
     commences on or before the final date for INTELSAT 
     privatization set forth in section 621(1)(A).
       ``(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 causes of action that would 
     otherwise generally be permitted against any separated entity 
     shall be eliminated.
       ``(3) Interlocking 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 as of the 
     date of the enactment of this title 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 expand by receiving additional orbital 
     locations, placing new satellites in existing locations, or 
     procuring new or additional satellites, except for specified 
     replacement satellites for which construction contracts have 
     been executed as of March 25, 1998, 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 locations or the 
     provision of additional services (including additional 
     applications of existing services) or additional areas of 
     business; and
       ``(E) in other appropriate fora.
     This paragraph shall not be construed as limiting the 
     maintenance, assistance or improvement of the GMDSS.
       ``(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 as of the date of the 
     enactment of this title 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 
     nondiscriminatory basis and in a manner in which continued 
     availability of the GMDSS is provided; and

[[Page S14917]]

       ``(B) shall not be transferred between Inmarsat and ICO.
       ``(7) Preservation of the gmdss.--The United States shall 
     seek to preserve space segment capacity of the GMDSS.

     ``SEC. 625. ENCOURAGING MARKET ACCESS AND PRIVATIZATION.

       ``(a) NTIA Determination.--
       ``(1) Determination required.--Within 180 days after the 
     date of the enactment of this section, the Secretary of 
     Commerce shall, through the Assistant Secretary for 
     Communications and Information, transmit to the Commission--
       ``(A) a list of Member countries of INTELSAT and Inmarsat 
     that are not Members of the World Trade Organization and that 
     impose barriers to market access for private satellite 
     systems; and
       ``(B) a list of Member countries of INTELSAT and Inmarsat 
     that are not Members of the World Trade Organization and that 
     are not supporting pro-competitive privatization of INTELSAT 
     and Inmarsat.
       ``(2) Consultation.--The Secretary's determinations under 
     paragraph (1) shall be made in consultation with the Federal 
     Communications Commission, the Secretary of State, and the 
     United States Trade Representative, and shall take into 
     account the totality of a country's actions in all relevant 
     fora, including the Assemblies of Parties of INTELSAT and 
     Inmarsat.
       ``(b) Imposition of Cost-Based Settlement Rate.--
     Notwithstanding--
       ``(1) any higher settlement rate that an overseas carrier 
     charges any United States carrier to originate or terminate 
     international message telephone services; and
       ``(2) any transition period that would otherwise apply,

     the Commission may by rule prohibit United States carriers 
     from paying an amount in excess of a cost-based settlement 
     rate to overseas carriers in countries listed by the 
     Commission pursuant to subsection (a).
       ``(c) Settlements Policy.--The Commission shall, in 
     exercising its authority to establish settlements rates for 
     United States international common carriers, seek to advance 
     United States policy in favor of cost-based settlements in 
     all relevant fora on international telecommunications policy, 
     including in meetings with parties and signatories of 
     INTELSAT and Inmarsat.
         ``Subtitle C--Deregulation and Other Statutory Changes

     ``SEC. 641. ACCESS TO INTELSAT.

       ``(a) Access Permitted.--Beginning on the date of the 
     enactment of this title, users or providers of 
     telecommunications services shall be permitted to obtain 
     direct access to INTELSAT telecommunications services and 
     space segment capacity through purchases of such capacity or 
     services from, or through investment in, INTELSAT.
       ``(b) Rulemaking.--Within 180 days after the date of the 
     enactment of this title, the Commission shall complete a 
     rulemaking, with notice and opportunity for submission of 
     comment by interested persons, to determine if users or 
     providers of telecommunications services have sufficient 
     opportunity to access INTELSAT space segment capacity 
     directly from INTELSAT to meet their service or capacity 
     requirements. If the Commission determines that such 
     opportunity to access does not exist, the Commission shall 
     take appropriate action to facilitate such direct access 
     pursuant to its authority under this Act and the 
     Communications Act of 1934. The Commission shall take such 
     steps as may be necessary to prevent the circumvention of the 
     intent of this section.
       ``(c) Contract Preservation.--Nothing in this section shall 
     be construed to permit the abrogation or modification of any 
     contract.

     ``SEC. 642. SIGNATORY ROLE.

       ``(a) Limitations on Signatories.--
       ``(1) National security limitations.--The Federal 
     Communications Commission, after a public interest 
     determination, in consultation with the executive branch, may 
     restrict foreign ownership of a United States signatory if 
     the Commission determines that not to do so would constitute 
     a threat to national security.
       ``(2) No signatories required.--The United States 
     Government shall not require signatories to represent the 
     United States in INTELSAT or Inmarsat or in any successor 
     entities after a pro-competitive privatization is achieved 
     consistent with sections 621, 622, and 624.
       ``(b) Clarification of Privileges and Immunities of 
     COMSAT.--
       ``(1) Generally not immunized.--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.
       ``(2) Limited immunity.--COMSAT and any other company 
     functioning as United States signatory to INTELSAT or 
     Inmarsat shall not be liable for action taken by it in 
     carrying out the specific, written instruction of the United 
     States issued in connection with its relationships and 
     activities with foreign governments, international entities, 
     and the intergovernmental satellite organizations.
       ``(3) Provisions prospective.--Paragraph (1) shall not 
     apply with respect to liability for any action taken by 
     COMSAT before the date of the enactment of the Communications 
     Satellite Competition and Privatization Act of 1999.
       ``(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 title 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 the enactment of this title: Sections 101 and 
     102; paragraphs (1), (5) and (6) of section 201(a); section 
     301; section 303; 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); and section 304.
       ``(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 a 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 CONGRESS.

       ``(a) Annual Reports.--The President and the Commission 
     shall report to the Committees on Commerce and International 
     Relations of the House of Representatives and the Committees 
     on Commerce, Science, and Transportation and Foreign 
     Relations of the Senate within 90 calendar days of the 
     enactment of this title, and not less than annually 
     thereafter, on the progress made to achieve the objectives 
     and carry out the purposes and provisions of this title. 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.
       ``(4) Impact privatization has had on United States 
     industry, United States jobs, and United States industry's 
     access to the global marketplace.

     ``SEC. 647. CONSULTATION WITH CONGRESS.

       ``The President's designees and the Commission shall 
     consult with the Committees on Commerce and International 
     Relations of the House of Representatives and the Committees 
     on Commerce, Science, and Transportation and Foreign 
     Relations 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 locations 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 locations or spectrum used for the provision of 
     such services.

     ``SEC. 649. EXCLUSIVITY ARRANGEMENTS.

       ``(a) In General.--No satellite operator shall acquire or 
     enjoy the exclusive right of handling telecommunications 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 
     section, 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 
     telecommunications, if the Commission determines the public 
     interest, convenience, and necessity so requires.
           ``Subtitle D--Negotiations To Pursue Privatization

     ``SEC. 661. METHODS TO PURSUE PRIVATIZATION.

       ``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:
       ``(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

[[Page S14918]]

     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; 
     and
       ``(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) 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.
       ``(8) Separated entity.--The term `separated entity' means 
     a privatized 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 March 25, 1998, but excluding ICO.
       ``(9) Orbital location.--The term `orbital location' means 
     the location for placement of a satellite on the 
     geostationary orbital arc as defined in the International 
     Telecommunication Union Radio Regulations.
       ``(10) 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.
       ``(11) Non-core services.--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.
       ``(12) Additional services.--The term `additional services' 
     means Internet services, high-speed data, interactive 
     services, non-maritime or non-aeronautical mobile services, 
     Direct to Home (DTH) or Direct Broadcast Satellite (DBS) 
     video services, or Ka-band services.
       ``(13) 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).
       ``(14) Headquarters agreement.--The term `Headquarters 
     Agreement' means the International Telecommunication 
     Satellite Organization Headquarters Agreement (November 24, 
     1976) (TIAS 8542, 28 UST 2248).
       ``(15) 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.
       ``(16) Inmarsat convention.--The term `Inmarsat Convention' 
     means the Convention on the International Maritime Satellite 
     Organization (Inmarsat) (TIAS 9605, 31 UST 1).
       ``(17) 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.
       ``(18) 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.)
       ``(19) ICO.--The term `ICO' means the company known, as of 
     the date of the enactment of this title, as ICO Global 
     Communications, Inc.
       ``(20) Replacement satellite.--The term `replacement 
     satellite' means a satellite that replaces a satellite that 
     fails prior to the end of the duration of contracts for 
     services provided over such satellite and that takes the 
     place of a satellite designated for the provision of public-
     switched network and occasional-use television services under 
     contracts executed prior to March 25, 1998 (but not including 
     K-TV or similar satellites). A satellite is only considered a 
     replacement satellite to the extent such contracts are equal 
     to or less than the design life of the satellite.
       ``(21) Global maritime distress and safety services or 
     GMDSS.--The term `global maritime distress and safety 
     services' or `GMDSS' 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. The GMDSS permits 
     the worldwide alerting of vessels, coordinated search and 
     rescue operations, and dissemination of maritime safety 
     information.
       ``(b) Common Terminology.--Except as otherwise provided in 
     subsection (a), terms used in this title that are defined in 
     section 3 of the Communications Act of 1934 have the meanings 
     provided in such section.''.

  Mr. SCHUMER. Mr. President, I rise today to speak about the Satellite 
Home Viewer Act, which is part of the Intellectual Property and 
Communications Omnibus Reform Act of 1999. There are approximately half 
a million direct broadcast satellite households in New York State that 
have been disadvantaged by the restrictions currently facing satellite 
service providers. There are countless others who would like the 
privilege of having satellite service as a multi-channel video program 
provider.
  Earlier this year, direct broadcast satellite customers in many areas 
of New York State had their local network service shut-off as a result 
of a court order. This meant that satellite service customers were 
unable to receive their local news, weather, and major broadcast 
stations from their local broadcast companies. We now have a bill that 
will allow direct broadcast satellite companies the ability to provide 
their local customers with local programming. For small, rural 
communities, it is imperative that residents be allowed to receive 
notice of local events, like school closings, weather reports, cultural 
happenings, and local business developments. In addition, New York is 
one of the two states that will benefit from retroactive local 
programming via satellites.
  For residents of New York rural counties like Allegheny, Chenango, 
Clinton, Niagara, Ulster, and many others, that rely on distant 
broadcast network programming because they are typically unable to 
receive over-the-air broadcast signals, this bill allows them to 
continue to receive faraway television networks.
  While I am pleased that we were able to pass the Satellite Home 
Viewer Act before it expired on December 31, 1999, I hope we will 
continue to further its progress. The federal loan provision that was 
included during conference, and regrettably taken out of the Senate 
conference report, must be revisited. It is my understanding that the 
Senate Banking committee plans on holding hearings next year to ensure 
that multi-channel service providers are encouraged to extend satellite 
service to rural and underserved communities. I look forward to working 
with my colleagues on that committee to make sure my constituents in 
Western and Northern New York have the same viewing options as those in 
downstate New York.
  Ms. COLLINS. Mr. President, I ask unanimous consent the Senate 
disagree to the amendment of the House, request a conference with the 
House, and the Chair be authorized to appoint conferees on the part of 
the Senate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  There being no objection, the Presiding Officer appointed Mr. McCain, 
Mr. Stevens, Mr. Burns, Mr. Hollings, and Mr.Inouye conferees on the 
part of the Senate.

                          ____________________