[Congressional Record Volume 146, Number 22 (Thursday, March 2, 2000)]
[House]
[Pages H636-H639]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CONFERENCE REPORT ON S. 376, OPEN-MARKET REORGANIZATION FOR THE 
           BETTERMENT OF INTERNATIONAL TELECOMMUNICATIONS ACT

  Mr. BLILEY submitted the following conference report and statement on 
the Senate bill (S. 376) to amend the Communications Satellite Act of 
1962 to promote competition and privatization in satellite 
communications, and for other purposes:

                  Conference Report (H. Rept. 106-509)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     376), to amend the Communications Satellite Act of 1962 to 
     promote competition and privatization in satellite 
     communications, and for other purposes, having met, after 
     full and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Open-market Reorganization 
     for the Betterment of International Telecommunications Act'' 
     or the ``ORBIT Act''.

     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. 701) is 
     amended by adding at the end the following new title:
        ``TITLE VI--COMMUNICATIONS COMPETITION AND PRIVATIZATION
     ``Subtitle A--Actions To Ensure Pro-Competitive 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.--
       ``(A) In general.--In considering the application of 
     INTELSAT, Inmarsat, or their successor entities for a license 
     or construction permit, or for the renewal or assignment or 
     use of any such license or permit, or in considering the 
     request of any entity subject to United States jurisdiction 
     for authorization to use any space segment owned, leased, or 
     operated by INTELSAT, Inmarsat, or their successor entities, 
     to provide non-core services to, from, or within the United 
     States, the Commission shall determine whether--
       ``(i) after April 1, 2001, in the case of INTELSAT and its 
     successor entities, INTELSAT and any successor entities have 
     been privatized in a manner that will harm competition in the 
     telecommunications markets of the United States; or
       ``(ii) after April 1, 2000, in the case of Inmarsat and its 
     successor entities, Inmarsat and any successor entities have 
     been privatized in a manner that will harm competition in the 
     telecommunications markets of the United States.
       ``(B) Consequences of determination.--If the Commission 
     determines that such competition will be harmed or that grant 
     of such application or request for authority is not otherwise 
     in the public interest, the Commission shall limit through 
     conditions or deny such application or request, and limit or 
     revoke previous authorizations to provide non-core services 
     to, from, or within the United States. After due notice and 
     opportunity for comment, the Commission shall apply the same 
     limitations, restrictions, and conditions to all entities 
     subject to United States jurisdiction using space segment 
     owned, leased, or operated by INTELSAT, Inmarsat, or their 
     successor entities.
       ``(C) National security, law enforcement, and public 
     safety.--The Commission shall not impose any limitation, 
     condition, or restriction under subparagraph (B) in a manner 
     that will, or is reasonably likely to, result in limitation, 
     denial, or revocation of authority for non-core services that 
     are used by and required for a national security agency or 
     law enforcement department or agency of the United States, or 
     used by and required for, and otherwise in the public 
     interest, any other Department or Agency of the United States 
     to protect the health and safety of the public. Such services 
     may be obtained by the United States directly from INTELSAT, 
     Inmarsat, or a successor entity, or indirectly

[[Page H637]]

     through COMSAT, or authorized carriers or distributors of the 
     successor entity.
       ``(D) Rule of construction.--Nothing in this subsection is 
     intended to preclude the Commission from acting upon 
     applications of INTELSAT, Inmarsat, or their successor 
     entities prior to the latest date set out in section 
     621(5)(A), including such actions as may be necessary for the 
     United States to become the licensing jurisdiction for 
     INTELSAT, but the Commission shall condition a grant of 
     authority pursuant to this subsection upon compliance with 
     sections 621 and 622.
       ``(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 determine that competition in the telecommunications 
     markets of the United States will be harmed unless the 
     Commission finds that the privatization referred to in 
     paragraph (1) 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 construe such 
     subsections in a manner consistent with 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. INCENTIVES; LIMITATION ON EXPANSION PENDING 
                   PRIVATIZATION.

       ``(a) Limitation.--Until INTELSAT, Inmarsat, and their 
     successor or separate entities are privatized in accordance 
     with the requirements of this title, INTELSAT, Inmarsat, and 
     their successor or separate entities, respectively, shall not 
     be permitted to provide additional services. The Commission 
     shall take all necessary measures to implement this 
     requirement, including denial by the Commission of licensing 
     for such services.
       ``(b) Orbital Location Incentives.--Until such 
     privatization is achieved, the United States shall oppose and 
     decline to facilitate applications by such entities for new 
     orbital locations to provide such 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 
     April 1, 2001; and
       ``(B) Inmarsat as soon as practicable, but no later than 
     July 1, 2000.
       ``(2) Independence.--The privatized successor entities and 
     separated entities of INTELSAT and Inmarsat shall operate as 
     independent commercial entities, and have a pro-competitive 
     ownership structure. The successor entities and separated 
     entities of INTELSAT and Inmarsat shall conduct an initial 
     public offering in accordance with paragraph (5) to achieve 
     such independence. Such offering shall substantially dilute 
     the aggregate ownership of such entities by such signatories 
     or former signatories. In determining whether a public 
     offering attains such substantial dilution, the Commission 
     shall take into account the purposes and intent, 
     privatization criteria, and other provisions of this title, 
     as well as market conditions. No intergovernmental 
     organization, including INTELSAT or Inmarsat, shall have--
       ``(A) an ownership interest in INTELSAT or the successor or 
     separated entities of INTELSAT; or
       ``(B) more than minimal ownership interest in Inmarsat or 
     the successor or separated entities of Inmarsat.
       ``(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.
     Access to new, or renewal of access to, orbital locations 
     shall be 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 privatization under this 
     title, INTELSAT and Inmarsat shall be precluded from 
     expanding into additional services.
       ``(5) Conversion to stock corporations.--Any successor 
     entity or separated entity created out of INTELSAT or 
     Inmarsat shall be a national corporation or similar accepted 
     commercial structure, subject to the laws of the nation in 
     which incorporated, as follows:
       ``(A) An initial public offering of securities of any 
     successor entity or separated entity--
       ``(i) shall be conducted, for the successor entities of 
     INTELSAT, on or about October 1, 2001, except that the 
     Commission may extend this deadline in consideration of 
     market conditions and relevant business factors relating to 
     the timing of an initial public offering, but such extensions 
     shall not permit such offering to be conducted later than 
     December 31, 2002; and
       ``(ii) shall be conducted, for the successor entities of 
     Inmarsat, on or about October 1, 2000, except that the 
     Commission may extend this deadline in consideration of 
     market conditions and relevant business factors relating to 
     the timing of an initial public offering, but to no later 
     than December 31, 2001.
       ``(B) 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.
       ``(C) A majority of the members of the board of directors 
     of any successor entity or separated entity shall not be 
     directors, employees, officers, or managers or otherwise 
     serve as representatives of any signatory or former 
     signatory. No member of the board of directors of any 
     successor or separated entity shall be a director, employee, 
     officer or manager of any intergovernmental organization 
     remaining after the privatization.
       ``(D) Any successor entity or separated entity shall--
       ``(i) have a board of directors with a fiduciary 
     obligation;
       ``(ii) have no officers or managers who (I) are officers or 
     managers of any signatories or former signatories, or (II) 
     have any direct financial interest in or financial 
     relationship to any signatories or former signatories, except 
     that such interest may be managed through a blind trust or 
     similar mechanism;
       ``(iii) have no directors, officers, or managers who hold 
     such positions in any intergovernmental organization; and
       ``(iv) in the case of a separated entity, have no officers 
     or directors, who (I) are officers or managers of any 
     intergovernmental organization, or (II) have any direct 
     financial interest in or financial relationship to any 
     international organization, except that such interest may be 
     managed through a blind trust or similar mechanism.
       ``(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 created after the date of enactment of this 
     title 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 subject to the 
     jurisdiction of 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.

     ``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) Technical coordination under intelsat agreements.--
     Technical coordination shall not be used to impair 
     competition or competitors, and shall be conducted under 
     International Telecommunication Union procedures and not 
     under Article XIV(d) of the INTELSAT Agreement.

     ``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. In the case 
     of a separated entity created before January 1, 1999, such

[[Page H638]]

     public offering shall be conducted no later than July 1, 
     2000, except that the Commission may extend this deadline in 
     consideration of market conditions and relevant business 
     factors relating to the timing of an initial public offering, 
     but such extensions shall not permit such offering to be 
     conducted later than July 31, 2001.
       ``(2) 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.
       ``(3) 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 enactment of this title to INTELSAT shall not be 
     transferred between INTELSAT and any separated entity.
       ``(4) 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 11 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) Reaffiliation prohibited.--Any merger, ownership of 
     more than one percent of the voting securities, 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.
       ``(2) 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.
       ``(3) 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 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 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 
     INTELSAT. Such direct access shall be at the level commonly 
     referred to by INTELSAT, on the date of enactment of this 
     title, as `Level III'.
       ``(b) Rulemaking.--Within 180 days after the date of 
     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 or any successor in 
     interest 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) No joint or several liability.--If COMSAT is found 
     liable for any action taken in its status as a signatory or a 
     representative of the party to INTELSAT, any such liability 
     shall be limited to the portion of the judgment that 
     corresponds to COMSAT's percentage of the ownership of 
     INTELSAT at the time the activity began which lead to the 
     liability.
       ``(4) Provisions prospective.--Paragraph (1) shall not 
     apply with respect to liability for any action taken by 
     COMSAT before the date of enactment of this title.
       ``(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. ITU FUNCTIONS.

       ``(a) 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.
       ``(b) ITU Notifying Administration.--The President and the 
     Commission shall take the action necessary to ensure that the 
     United States remains the ITU notifying administration for 
     the privatized INTELSAT's existing and future orbital slot 
     registrations.

     ``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: Paragraphs (1), (5) 
     and (6) of section 201(a); section 201(b); paragraphs (1), 
     (3) through (5), and (8) through (10) of section 201(c); 
     section 303; section 304; section 502; section 503; 
     paragraphs (2) and (4) of section 504(a); and section 504(c).
       ``(2) Upon the transfer of assets to a successor entity and 
     receipt by signatories or former signatories (including 
     COMSAT) of ownership shares in the successor entity of 
     INTELSAT in accordance with appropriate arrangements 
     determined by INTELSAT to implement privatization: Section 
     305.
       ``(3) 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: Sections 504(b) and 504(d).
       ``(4) 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: Section 102; section 103(7); paragraphs (2) through 
     (4) and (7) of section 201(a); paragraphs (2), (6), and 
     (7) of section 201(c); section 301; section 302; section 
     401; section 402; 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. SATELLITE AUCTIONS.

       ``Notwithstanding any other provision of law, the 
     Commission shall not have the authority to assign by 
     competitive bidding orbital locations

[[Page H639]]

     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. 648. 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 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; 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; 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--
       ``(A) for Inmarsat, those non-maritime or non-aeronautical 
     mobile services in the 1.5 and 1.6 Ghz band on planned 
     satellites or the 2 Ghz band; and
       ``(B) for INTELSAT, direct-to-home (DTH) or direct 
     broadcast satellite (DBS) video services, or services in the 
     Ka or V bands.
       ``(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.), or the 
     successor in interest to such corporation.
       ``(19) ICO.--The term `ICO' means the company known, as of 
     the date of enactment of this title, as ICO Global 
     Communications, Inc.
       ``(20) 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.
       ``(21) National security agency.--The term `national 
     security agency' means the National Security Agency, the 
     Director of Central Intelligence and the Central Intelligence 
     Agency, the Department of Defense, and the Coast Guard.
       ``(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.''.
       And the House agree to the same.
     Tom Bliley,
     Billy Tauzin,
     Michael G. Oxley,
     John D. Dingell,
     Edward J. Markey,
                                Managers on the Part of the House.

     John McCain,
     Ted Stevens,
     Conrad Burns,
     Fritz Hollings,
     Daniel K. Inouye,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the bill (S. 376) to amend the 
     Communications Satellite Act of 1962 to promote competition 
     and privatization in satellite communications, and for other 
     purposes, submit the following joint statement to the House 
     and the Senate in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying conference report:
       The House amendment struck all of the Senate bill after the 
     enacting clause and inserted a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate bill and the House amendment.
       The managers on the part of the House and Senate met on 
     February 29, 2000, and reconciled the differences between the 
     two bills.
     Tom Bliley,
     Billy Tauzin,
     Michael G. Oxley,
     John D. Dingell,
     Edward J. Markey,
                                Managers on the Part of the House.

     John McCain,
     Ted Stevens,
     Conrad Burns,
     Fritz Hollings,
     Daniel K. Inouye,
     Managers on the Part of the Senate.

                          ____________________