[Congressional Record Volume 146, Number 32 (Tuesday, March 21, 2000)]
[Senate]
[Pages S1504-S1505]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        LEVEL III DIRECT ACCESS

  Mr. SARBANES. Mr. President, I would like to clarify an important 
issue contained in the conference agreement on S. 376, the satellite 
reform bill, with respect to ``Level III direct access.''
  The conference agreement provides authority for so-called ``Level III 
direct access''--which is the ability of customers other than INTELSAT 
signatories to enter into agreements with INTELSAT for ordering, 
receiving and paying for space segment capacity--but it says nothing 
about the signatory fee that COMSAT is entitled to receive from direct 
access users as determined by the FCC's direct access order made 
effective December 6, 1999. I understand it is the intent of the 
conferees to preserve this signatory fee to compensate COMSAT for the 
costs it incurs as the U.S. signatory to INTELSAT during its brief 
transition to a procompetitive privatization.
  Nothing in the conference agreement is intended to vacate the FCC's 
``Level III direct access'' order made effective December 6, 1999, 
including its assessment of a signatory fee to be charged

[[Page S1505]]

to direct access users to offset COMSAT's signatory costs. I would also 
add that Congress is addressing direct access to INTELSAT before it 
privatizes. After privatization, when INTELSAT become a commercial 
company like any other, it can make whatever business decisions it 
wants with respect to marketing or distribution arrangements--again, 
just as other companies do. Once privatized, the government should not 
be interfering, let alone dictating, these arrangements one way or 
another.

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