[Congressional Record (Bound Edition), Volume 146 (2000), Part 2]
[Senate]
[Pages 2057-2058]
[From the U.S. Government Publishing Office, www.gpo.gov]



    OPEN-MARKET REORGANIZATION FOR THE BETTERMENT OF INTERNATIONAL 
               TELECOMMUNICATIONS ACT--CONFERENCE REPORT

  Mr. FRIST. Mr. President, I submit a report of the committee on 
conference 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, and ask for its immediate 
consideration.
  The PRESIDING OFFICER. The report will be stated.
  The assistant legislative clerk read as follows:


[[Page 2058]]

       The committee on conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 376) 
     have agreed to recommend and do recommend to their respective 
     Houses this report, signed by all of the conferees.

  The PRESIDING OFFICER. Without objection, the Senate will proceed to 
the consideration of the conference report. (The conference report is 
printed in the House proceedings of the Record of today, March 2, 
2000.)
  Mr. BURNS. Mr. President, I extend my sincere appreciation to Senate 
Commerce Committee Chairman McCain, Senator Hollings, House Commerce 
Committee Chairman Bliley, Representative Markey, and all of the other 
Members of the Senate-House conference for working together in a bi-
partisan manner on satellite reform legislation. Through the dedication 
of the conference, and in particular Chairman Bliley, the 106th 
Congress can now present President Clinton with the opportunity to sign 
into law a meaningful bill that will enhance market competition and 
benefit consumers everywhere.
  When I undertook the challenge of guiding legislation through the 
Senate that would encourage genuine competition in the rapidly evolving 
international satellite communications industry through deregulation, I 
declared five basic principles that would serve as the foundation for 
my effort.
  (1) The legislation must enhance competition in the global satellite 
communications market;
  (2) The legislation must be consistent with the United States' 
existing treaty obligations;
  (3) The legislation must enhance global satellite connectivity to all 
areas, including remote and rural;
  (4) The legislation must ultimately increase consumers' choices, 
enable technological innovation and lower costs; and
  (5) The legislation cannot impose any unnecessary new regulatory 
schemes on this vibrant global industry.
  These principles were incorporated into The Open Market 
Reorganization for the Betterment of International Telecommunications 
Act, known as ORBIT, S. 376 which the Senate swiftly and unanimously 
passed. I am very pleased to note that the conference agreement now 
before the Senate retains the core principles reflected in ORBIT while 
accommodating the concerns articulated by Chairman Bliley and his House 
colleagues.
  This compromise legislation represents the desire of Congress to 
inject more competition and more privatization into the international 
satellite communications market. Specifically, the conference agreement 
achieves these important objectives by:
  Establishing definite and reasonable criteria and dates certain for 
the privatization of INTELSAT and Inmarsat.
  Calling for an IPO of the privatized INTELSAT of October 1, 2001, but 
prudently recognizing that market conditions must be taken into account 
and therefore, allowing the IPO date to be extended to no later than 
December 31, 2002.
  Eliminating INTELSAT's and COMSAT's privileges and immunities while 
protecting COMSAT for action taken in response to instructions of the 
U.S. Government in carrying out its responsibilities as the U.S. 
signatory.
  Eliminating upon enactment the antiquated ownership and board 
restrictions on the U.S. signatory to INTELSAT, thereby allowing 
Lockheed Martin to complete its acquisition of COMSAT upon enactment of 
this bill without conditions.
  Creating a competitive, level playing field in the satellite 
industry.
  Removing the intrusive role of government in the commercial satellite 
industry.
  Using access to the U.S. market as a strong incentive to keep 
INTELSAT's privatization effort moving forward without delay.
  I am especially pleased that the conference agreement rejects any 
notion that the government should be interfering in the contractual 
arrangements between COMSAT and either its customers or INTELSAT. The 
government should not be permitting, let alone encouraging, abrogation 
or modification of any such arrangement. Among my serious concerns, I 
concluded long ago that this would be contrary to the Fifth Amendment's 
Takings Clause. The bill before us is very clear on this point. This 
legislation in no way directs the FCC to take any action that would 
impair private contracts or agreements.
  On a related point, the conference agreement also flatly rejects 
``Level IV direct access'' in any form. Permitting or requiring Level 
IV direct access would have unfairly forced a divestiture of COMSAT's 
INTELSAT assets. I am pleased that the conference agreement flatly 
rejects Level IV direct access.
  Let me also commend Senator Stevens and our good friend, Mr. Dingell, 
in the other body for improving this bill in conference with the 
addition of language to preserve our national security interests. The 
conference has produced an agreement that will encourage expeditious 
privatization of INTELSAT and Inmarsat and allow Lockheed Martin to 
reinvigorate COMSAT as a competitor in the international satellite 
marketplace.
  At the end of the day, the conference agreement will lead to enhanced 
competition in telecommunications services, resulting in real consumer 
benefits of more choices, lower prices and new services. For this, we 
should all be very proud. I strongly urge my colleagues to adopt this 
conference report.
  Mr. FRIST. Mr. President, I ask unanimous consent that the conference 
report be agreed to, the motion to reconsider be laid upon the table, 
and any statements relating to the conference report be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The conference report was agreed to.

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