[Congressional Record (Bound Edition), Volume 145 (1999), Part 11]
[Senate]
[Pages 15542-15545]
[From the U.S. Government Publishing Office, www.gpo.gov]




    OPEN-MARKET REORGANIZATION FOR THE BETTERMENT OF INTERNATIONAL 
                         TELECOMMUNICATIONS ACT

  The text of S. 376, passed by the Senate on July 1, 1999, follows:

                                 S. 376

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 2. PURPOSE.

       It is the purpose of this Act to promote a fully 
     competitive domestic and international market for satellite 
     communications services for the benefit of consumers and 
     providers of satellite services by fully encouraging the 
     privatization of the intergovernmental satellite 
     organizations, INTELSAT and Inmarsat, and reforming the 
     regulatory framework of the COMSAT Corporation.

     SEC. 3. FINDINGS.

       The Congress finds that:
       (1) International satellite communications services 
     constitute a critical component of global voice, video and 
     data services, play a vital role in the integration of all 
     nations into the global economy and contribute toward the 
     ability of developing countries to achieve sustainable 
     development.
       (2) The United States played a pivotal role in stimulating 
     the development of international satellite communications 
     services by enactment of the Communications Satellite Act of 
     1962 (47 U.S.C. 701-744), and by its critical contributions, 
     through its signatory, the COMSAT Corporation, in the 
     establishment of INTELSAT, which has successfully established 
     global satellite networks to provide member countries with 
     worldwide access to telecommunications services, including 
     critical lifeline services to the developing world.
       (3) The United States played a pivotal role in stimulating 
     the development of international satellite communications 
     services by enactment of the International Maritime Satellite 
     Telecommunications Act (47 U.S.C. 751-757), and by its 
     critical contributions, through its signatory, COMSAT, in the 
     establishment of Inmarsat, which enabled member countries to 
     provide mobile satellite services such as international 
     maritime and global maritime distress and safety services to 
     include other satellite services, such as land mobile and 
     aeronautical communications services.
        (4) By statute, COMSAT, a publicly traded corporation, is 
     the sole United States signatory to INTELSAT and, as such, is 
     responsible for carrying out United States commitments under 
     the INTELSAT Agreement and the INTELSAT Operating Agreement. 
     Pursuant to a binding Headquarters Agreement, the United 
     States, as a party to INTELSAT, has satisfied many of its 
     obligations under the INTELSAT Agreement.
        (5) In the 37 years since enactment of the Communications 
     Satellite Act of 1962, satellite technology has advanced 
     dramatically, large-scale financing options have improved 
     immensely and international telecommunications policies have 
     shifted from those of natural monopolies to those based on 
     market forces, resulting in multiple private commercial 
     companies around the world providing, or preparing to 
     provide, the domestic, regional, and global satellite 
     telecommunications services that only INTELSAT and Inmarsat 
     had previously had the capabilities to offer.
        (6) Private commercial satellite communications systems 
     now offer the latest telecommunications services to more and 
     more countries of the world with declining costs, making 
     satellite communications an attractive complement as well as 
     an alternative to terrestrial communications systems, 
     particularly in lesser developed countries.
        (7) To enable consumers to realize optimum benefits from 
     international satellite communications services, and to 
     enable these systems to be competitive with other 
     international telecommunication systems, such as fiber optic 
     cable, the global trade and regulatory environment must 
     support vigorous and robust competition.
        (8) In particular, all satellite systems should have 
     unimpeded access to the markets that they are capable of 
     serving, and the ability to compete in a fair and meaningful 
     way within those markets.
        (9) Transforming INTELSAT and Inmarsat from 
     intergovernmental organizations into conventional satellite 
     services companies is a key element in bringing about the 
     emergence of a fully competitive global environment for 
     satellite services.
       (10) The issue of privatization of any State-owned firm is 
     extremely complex and multifaceted. For that reason, the sale 
     of a firm at arm's length does not automatically, and in all 
     cases, extinguish any prior subsidies or government conferred 
     advantages.
        (11) It is in the interest of the United States to 
     negotiate the removal of its reservation in the Fourth 
     Protocol to the General Agreement on Trade in Services 
     regarding INTELSAT's and Inmarsat's access to the United 
     States market through COMSAT as soon as possible, but such 
     reservation cannot be removed without adequate assurance that 
     the United States market for satellite services will not be 
     disrupted by such INTELSAT or Inmarsat access.
        (12) The Communications Satellite Act of 1962, and other 
     applicable United States laws, need to be updated to 
     encourage and complete the pro-competitive privatization of 
     INTELSAT and Inmarsat, to update the domestic United States 
     regulatory regime governing COMSAT, and to ensure a 
     competitively neutral United States framework for the 
     provision of domestic and international telecommunications 
     services via satellite systems.

     SEC. 4. ESTABLISHMENT OF SATELLITE SERVICES COMPETITION; 
                   PRIVATIZATION.

       The Communications Satellite Act of 1962 (47 U.S.C. 701) is 
     amended by adding at the end the following:

      ``TITLE VI--SATELLITE SERVICES COMPETITION AND PRIVATIZATION

           ``Subtitle A--Transition to a Privatized INTELSAT

     ``SEC. 601. POLICY OF THE UNITED STATES.

       ``It is the policy of the United States to--
       ``(1) encourage INTELSAT to privatize in a pro-competitive 
     manner as soon as possible, but not later than January 1, 
     2002, recognizing the need for a reasonable transition and 
     process to achieve a full, pro-competitive restructuring; and
       ``(2) work constructively with its international partners 
     in INTELSAT, and with INTELSAT itself, to bring about a 
     prompt restructuring that will ensure fair competition, both 
     in the United States as well as in the global markets served 
     by the INTELSAT system; and
       ``(3) encourage Inmarsat's full implementation of the terms 
     and conditions of its privatization agreement.

     ``SEC. 602. ROLE OF COMSAT.

       ``(a) Advocacy.--As the United States signatory to 
     INTELSAT, COMSAT shall act as an aggressive advocate of pro-
     competitive privatization of INTELSAT. With respect to the 
     consideration within INTELSAT of any matter related to its 
     privatization, COMSAT shall fully consult with the United 
     States Government prior to exercising its voting rights and 
     shall exercise its voting rights in a manner fully consistent 
     with any instructions issued. In the event that the United 
     States signatory to INTELSAT is acquired after enactment of 
     this section, the President and the Commission shall assure 
     that the instructional process safeguards against conflicts 
     of interest.
       ``(b) Annual Reports.--The President and the Commission 
     shall report annually to the Committee on Commerce of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate, respectively, on 
     the progress being made by INTELSAT and Inmarsat to privatize 
     and complete privatization in a pro-competitive manner.

     ``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).

   ``Subtitle B--Actions to Ensure Pro-Competitive Satellite Services

     ``SEC. 611. PRIVATIZATION.

       ``(a) In General.--The President shall seek a pro-
     competitive privatization of INTELSAT as soon as practicable, 
     but no later than January 1, 2002. Such privatization shall 
     be confirmed by a final decision of the INTELSAT Assembly of 
     Parties and shall be followed by a timely initial public 
     offering taking into account relative market conditions.
       ``(b) Ensure Continuation of Privatization.--The President 
     and the Commission shall seek to ensure that the 
     privatization of Inmarsat continues in a pro-competitive 
     manner.

     ``SEC. 612. PROVISION OF SERVICES IN THE UNITED STATES BY 
                   PRIVATIZED AFFILIATES OF INTERGOVERNMENTAL 
                   SATELLITE ORGANIZATIONS.

       ``(a) In General.--With respect to any application for a 
     satellite earth station or space station under title III of 
     the Communications Act of 1934 (47 U.S.C 301 et seq.) or any 
     application under section 214 of that Act (47 U.S.C. 214), or 
     any letter of intent to provide service in the United States 
     via non-United States licensed space segment, submitted by a 
     privatized IGO affiliate or successor, the Commission--

[[Page 15543]]

       ``(1) shall apply a presumption in favor of entry to an IGO 
     affiliate or successor licensed by a WTO Member for services 
     covered by United States commitments under the WTO Basic 
     Telecom Agreement;
       ``(2) may attach conditions to any grant of authority to an 
     IGO affiliate or successor that raises the potential for 
     competitive harm; or
       ``(3) shall in the exceptional case in which an application 
     by an IGO affiliate or successor would pose a very high risk 
     to competition in the United States satellite market, deny 
     the application.
       ``(b) Determination Factors.--In determining whether an 
     application to serve the United States market by an IGO 
     affiliate raises the potential for competitive harm or risk 
     under subsection (a)(2), the Commission shall determine 
     whether any potential anti-competitive or market distorting 
     consequences of continued relationships or connections exist 
     between an IGO and its affiliates including--
       ``(1) whether the IGO affiliate is structured to prevent 
     anti-competitive practices such as collusive behavior or 
     cross-subsidization;
       ``(2) the degree of affiliation between the IGO and its 
     affiliate;
       ``(3) whether the IGO affiliate can directly or indirectly 
     benefit from IGO privileges and immunities;
       ``(4) the ownership structure of the affiliate and the 
     effect of IGO and other Signatory ownership and whether the 
     affiliate is independent of IGO signatories or former 
     signatories who control telecommunications market access in 
     their home territories;
       ``(5) the existence of clearly defined arm's-length 
     conditions governing the affiliate-IGO relationship including 
     separate officers, directors, employees, and accounting 
     systems;
       ``(6) the existence of fair market valuing for permissible 
     business transactions between an IGO and its affiliate that 
     is verifiable by an independent audit and consistent with 
     normal commercial practice and generally accepted accounting 
     principles;
       ``(7) the existence of common marketing;
       ``(8) the availability of recourse to IGO assets for credit 
     or capital;
       ``(9) whether an IGO registers or coordinates spectrum or 
     orbital locations on behalf of its affiliate; and
       ``(10) whether the IGO affiliate has corporate charter 
     provisions prohibiting reaffiliation with the IGO after 
     privatization.
       ``(c) Sunset.--The provisions of subsection (b) shall cease 
     to have effect upon approval of the application pursuant to 
     section 613.
       ``(d) Public Interest Determination.--Nothing in this Act 
     affects the Commission's ability to make a public interest 
     determination concerning any application pertaining to entry 
     into the United States market.

     ``SEC. 613. PRESIDENTIAL NEGOTIATING OBJECTIVES AND FCC 
                   CRITERIA FOR PRIVATIZED IGOS.

       ``(a) In General.--Upon a final decision of the INTELSAT 
     Assembly of Parties creating the legal structure and 
     characteristics of the privatized INTELSAT and recognizing 
     that Inmarsat transitioned into a private company on April 
     15, 1999, the President shall within 30 days report to the 
     Congress on the extent to which such privatization framework 
     meets each of the criteria in subsection (c), and whether 
     taking into consideration all other relevant competitive 
     factors, entry of a privatized INTELSAT or Inmarsat into the 
     United States market will not be likely to distort 
     competition.
       ``(b) Purpose of Privatization Criteria.--The criteria 
     provided in subsection (c) shall be used as--
       ``(1) the negotiation objectives for achieving the 
     privatization of INTELSAT no later than January 1, 2002, and 
     also for Inmarsat;
       ``(2) the standard for measuring, pursuant to subsection 
     (a), whether negotiations have resulted in an acceptable 
     framework for achieving the pro-competitive privatization of 
     INTELSAT and Inmarsat; and
       ``(3) licensing criteria by the Commission in making its 
     independent determination of whether the certified framework 
     for achieving the pro-competitive privatization of INTELSAT 
     and Inmarsat has been properly implemented by the privatized 
     INTELSAT and Inmarsat.
       ``(c) Privatization Criteria.--A pro-competitively 
     privatized INTELSAT or Inmarsat--
       ``(1) has no privileges or immunities limiting legal 
     accountability, commercial transparency, or taxation and does 
     not unfairly benefit from ownership by former signatories who 
     control telecommunications market access to their home 
     territories;
       ``(2) has submitted to the jurisdiction of competition and 
     independent regulatory authorities of a nation that is a 
     signatory to the World Trade Organization Agreement on Basic 
     Telecommunications and that has implemented or accepted the 
     agreement's reference paper on regulatory principles;
       ``(3) can offer assurance of an arm's-length relationship 
     in all respects between itself and any IGO affiliate;
       ``(4) has given due consideration to the international 
     connectivity requirements of thin route countries;
       ``(5) can demonstrate that the valuation of assets to be 
     transferred post-privatization is in accordance with 
     generally accepted accounting principles;
       ``(6) has access to orbital locations and associated 
     spectrum post-privatization in accordance with the same 
     regulatory processes and fees applicable to other commercial 
     satellite systems;
       ``(7) conducts technical coordinations post-privatization 
     under normal, established ITU procedures;
       ``(8) has an ownership structure in the form of a stock 
     corporation or other similar and accepted commercial 
     mechanism, and a commitment to a timely initial public 
     offering has been established for the sale or purchase of 
     company shares;
       ``(9) shall not acquire, or enjoy any agreements or 
     arrangements which secure, exclusive access to any national 
     telecommunications market; and
       ``(10) will have accomplished a privatization consistent 
     with the criteria listed in this subsection at the earliest 
     possible date, but not later than January 1, 2002, for 
     INTELSAT and Inmarsat.
       ``(d) FCC Independent Determination on Implementation.--
     After the President has made a report to Congress pursuant to 
     subsection (a), with respect to any application for a 
     satellite earth station or space station under title III of 
     the Communications Act of 1934 (47 U.S.C. 301) or any 
     application under section 214 of the Communications Act of 
     1934 (47 U.S.C. 214), or any letter of intent to provide 
     service in the United States via a non-United States licensed 
     space segment, submitted by a privatized affiliate prior to 
     the privatized IGO, or by a privatized IGO, the Commission 
     shall determine whether the enumerated objectives for a pro-
     competitive privatization of INTELSAT and Inmarsat under this 
     section have been implemented with respect to the privatized 
     IGO, but in making that consideration, may neither contract 
     or expand the privatization criteria in subsection (c).
       ``(e) Authority to Deny an Application.--Nothing in this 
     section affects the Commission's authority to condition or 
     deny an application on the basis of the public interest.

     ``SEC. 614. FAILURE TO PRIVATIZE IN A TIMELY MANNER.

       ``(a) Report.--In the event that INTELSAT fails to fully 
     privatize as provided in section 611 by January 1, 2002, the 
     President shall--
       ``(1) instruct all instrumentalities of the United States 
     Government to grant a preference for procurement of satellite 
     services from commercial private sector providers of 
     satellite space segment rather than IGO providers;
       ``(2) immediately commence deliberations to determine what 
     additional measures should be implemented to ensure the rapid 
     privatization of INTELSAT;
       ``(3) no later than March 31, 2002, issue a report 
     delineating such other measures to the Committee on Commerce 
     of the House of Representatives, and Committee on Commerce, 
     Science, and Transportation of the Senate; and
       ``(4) withdraw as a party from INTELSAT.
       ``(b) Reservation Clause.--The President may determine, 
     after consulting with Congress, that in consideration of 
     privatization being imminent, it is in the national interest 
     of the United States to provide a reasonable extension of 
     time for completion of privatization.

             ``Subtitle C--COMSAT Governance and Operation

     ``SEC. 621. ELIMINATION OF PRIVILEGES AND IMMUNITIES.

       ``(a) Comsat.--COMSAT shall not have any privilege or 
     immunity on the basis of its status as a signatory or a 
     representative of the United States to INTELSAT and Inmarsat, 
     except that COMSAT retains its privileges and immunities--
       ``(1) for those actions taken in its role as the United 
     States signatory to INTELSAT or Inmarsat upon instruction of 
     the United States Government; and
       ``(2) for actions taken when acting as the United States 
     signatory in fulfilling signatory obligations under the 
     INTELSAT Operating Agreement.
       ``(b) 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 responsibility, as 
     determined by the trier of fact.
       ``(c) Prospective Effect of Elimination.--The elimination 
     of privileges and immunities contained in this section shall 
     apply only to actions or decisions taken by COMSAT after the 
     date of enactment of the Open-market Reorganization for the 
     Betterment of International Telecommunications Act.

     ``SEC 622. ABROGATION OF CONTRACTS PROHIBITED.

       ``Nothing in this Act or the Communications Act of 1934 (47 
     U.S.C. 151 et seq.) shall be construed to modify or 
     invalidate any contract or agreement involving COMSAT, 
     INTELSAT, or any terms or conditions of such agreement in 
     force on the date of enactment of the Open-market 
     Reorganization for the Betterment of International 
     Telecommunications Act, or to give the Commission authority, 
     by rule-making or any other means, to invalidate any such 
     contract or agreement, or any terms and conditions of such 
     contract or agreement.

[[Page 15544]]



     ``SEC. 623. PERMITTED COMSAT INVESTMENT.

       ``Nothing in this Act shall be construed as precluding 
     COMSAT from investing in or owning satellites or other 
     facilities independent from INTELSAT, or from providing 
     services through reselling capacity over the facilities of 
     satellite systems independent from INTELSAT. This section 
     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.

                    ``Subtitle D--General Provisions

     ``SEC. 631. PROMOTION OF EFFICIENT USE OF ORBITAL SLOTS AND 
                   SPECTRUM.

       ``All satellite system operators authorized to access the 
     United States market should make efficient and timely use of 
     orbital and spectrum resources in order to ensure that these 
     resources are not warehoused to the detriment of other new or 
     existing satellite system operators. Where these assurances 
     cannot be provided, satellite system operators shall 
     arbitrate their rights to these resources according to ITU 
     procedures.

     ``SEC. 632. PROHIBITION ON PROCUREMENT PREFERENCES.

       ``Except pursuant to section 615 of this Act, nothing in 
     this title or the Communications Act of 1934 (47 U.S.C. 151 
     et seq.) shall be construed to authorize or require any 
     preference in Federal Government procurement of 
     telecommunications services, for the satellite space segment 
     provided by INTELSAT or Inmarsat, nor shall anything in this 
     title or that Act be construed to result in a bias against 
     the use of INTELSAT or Inmarsat through existing or future 
     contract awards.

     ``SEC. 633. SATELLITE AUCTIONS.

       ``Notwithstanding any other provision of law, the 
     Commission shall not 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 Telecommunications Union 
     and in other bilateral and multilateral negotiations any 
     assignment by competitive bidding of orbital locations, 
     licenses, or spectrum used for the provision of such 
     services.

     ``SEC. 634. RELATIONSHIP TO OTHER LAWS.

       ``Whenever the application of the provisions of this Act is 
     inconsistent with the provisions of the Communications Act of 
     1934, the provisions of this Act shall govern.

     ``SEC. 635. EXCLUSIVITY ARRANGEMENTS.

       ``(a) In General.--No satellite operator shall acquire or 
     enjoy the exclusive right of handling traffic 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 
     subsection, 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 
     traffic, if the Commission determines the public interest, 
     convenience, and necessity so requires.

                       ``Subtitle E--Definitions

     ``SEC. 641. DEFINITIONS.

       ``(a) In General.--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.
       ``(2) Inmarsat.--The term `Inmarsat' means the 
     International Mobile Satellite Organization established 
     pursuant to the Convention on the International Maritime 
     Satellite Organization and may also refer to INMARSAT Limited 
     when appropriate.
       ``(3) COMSAT.--The term `COMSAT' means the corporation 
     established pursuant to title III of this Act and its 
     successors and assigns.
       ``(4) Signatory.--The term `signatory' means the 
     telecommunications entity designated by a party that has 
     signed the Operating Agreement and for which such Agreement 
     has entered into force.
       ``(5) Party.--The term `party' means, in the case of 
     INTELSAT, a nation for which the INTELSAT agreement has 
     entered into force or been provisionally applied, and in the 
     case of INMARSAT, a nation for which the Inmarsat convention 
     entered into force.
       ``(6) Commission.--The term `Commission' means the Federal 
     Communications Commission.
       ``(7) International telecommunication union; ITU.--The 
     terms `International Telecommunication Union' and `ITU' mean 
     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 orbital arc.
       ``(8) Privatized INTELSAT.--The term `privatized INTELSAT' 
     means any entity created from the privatization of INTELSAT 
     from the assets of INTELSAT.
       ``(9) Privatized Inmarsat.--The term `privatized Inmarsat' 
     means any entity created from the privatization of Inmarsat 
     from the assets of Inmarsat, namely INMARSAT, Ltd.
       ``(10) Orbital location.--The term `orbital location' means 
     the location for placement of a satellite in geostationary 
     orbits as defined in the International Telecommunication 
     Union Radio Regulations.
       ``(11) Spectrum.--The term `spectrum' means the range of 
     frequencies used to provide radio communication services.
       ``(12) 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 and Inmarsat or an IGO successor or affiliate.
       ``(13) INTELSAT agreement.--The term `INTELSAT agreement' 
     means the agreement relating to the International 
     Telecommunications Satellite Organization, including all of 
     its annexes (TIAS 7532, 23 UST 3813).
       ``(14) 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.
       ``(15) Headquarters agreement.--The term `headquarters 
     agreement' means the binding international agreement, dated 
     November 24, 1976, between the United States and INTELSAT 
     covering privileges, exemptions, and immunities with respect 
     to the location of INTELSAT's headquarters in Washington, 
     D.C.
       ``(16) Direct-to-home satellite services.--The term 
     `direct-to-home satellite services' means the distribution or 
     broadcasting of programming or services by satellite directly 
     to the subscriber's premises without the use of ground 
     receiving or distribution equipment, except at the 
     subscriber's premises or in the uplink process to the 
     satellite.
       ``(17) IGO.--The term `IGO' means the Intergovernmental 
     Satellite organizations, INTELSAT and Inmarsat.
       ``(18) IGO affiliate.--The term `IGO affiliate' means any 
     entity in which an IGO owns or has owned an equity interest 
     of 10 percent or more.
       ``(19) IGO successor.--The term `IGO Successor' means an 
     entity which holds substantially all the assets of a pre-
     existing IGO.
       ``(20) Global maritime distress and safety services.--The 
     term `global maritime distress and safety services' 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, permitting the worldwide alerting of vessels, 
     coordinated search and rescue operations, and dissemination 
     of maritime safety information.
       ``(b) Common Terms.--Except as otherwise provided in 
     subsection (a), terms used in this title that are defined in 
     section 3 of the Communications Act of 1934 (47 U.S.C. 153) 
     have the meaning provided in that section.''.

     SEC. 5. CONFORMING CHANGES.

       (a) Repeal of Federal Coordination and Planning 
     Provisions.--Section 201 of the Communications Satellite Act 
     of 1962 (47 U.S.C. 721) is amended to read as follows:

     ``SEC. 201. IMPLEMENTATION OF POLICY.

       ``The Federal Communications Commission, in its 
     administration of the Communications Act of 1934, shall make 
     rules and regulations to carry out the provisions of this 
     Act.''.
       (b) Repeal of Government-Established Corporation 
     Provisions.--
       (1) In general.--Section 301 of the Communications 
     Satellite Act of 1962 (47 U.S.C. 731) is amended to read as 
     follows:

     ``SEC. 301. CORPORATION.

       ``The corporation organized under the provisions of this 
     title, as this title existed before the enactment of the 
     Open-market Reorganization for the Betterment of 
     International Telecommunications Act, known as COMSAT, and 
     its successors and assigns, are subject to the provisions of 
     this Act. The right to repeal, alter, or amend this Act at 
     any time is expressly reserved.''.
       (2) Conforming changes.--Title III of the Communications 
     Satellite Act of 1962 (47 U.S.C. 731 et seq.) is amended--
       (A) by striking ``CREATION OF A COMMUNICATIONS SATELLITE'' 
     in the caption of title III;
       (B) by striking sections 302, 303, and 304;
       (C) by redesignating section 305 as section 302; and
       (D) by striking subsection (c) of section 302, as 
     redesignated.
       (c) Repeal of Certain Miscellaneous Provisions.--Title IV 
     of the Communications Satellite Act of 1962 (47 U.S.C. 741 et 
     seq.) is amended--
       (1) by striking section 402;

[[Page 15545]]

       (2) by striking subsection (a) of section 403 and 
     redesignating subsections (b) and (c) as subsections (a) and 
     (b), respectively; and
       (3) by striking section 404.

     SEC. 6. INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS 
                   ACT AMENDMENTS.

       (a) Repeal of Superseded Authority.--Title V of the 
     Communications Satellite Act of 1962 (47 U.S.C. 751 et seq.) 
     is amended--
       (1) by striking sections 502, 503, 504, and 505; and
       (2) by inserting after section 501 the following:

     ``SEC. 502. GLOBAL SATELLITE SAFETY SERVICES AFTER 
                   PRIVATIZATION OF BUSINESS OPERATIONS OF 
                   INMARSAT.

       ``In order to ensure the continued provision of global 
     maritime distress and safety satellite telecommunications 
     services after privatization of the business operations of 
     Inmarsat, the President may maintain membership in the 
     International Mobile Satellite Organization on behalf of the 
     United States.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date on which the International Mobile 
     Satellite Organization ceases to operate directly a global 
     mobile satellite system.

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