[Congressional Record (Bound Edition), Volume 146 (2000), Part 4]
[Senate]
[Page 5716]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      PASSAGE OF S. 376 ``ORBIT''

  Ms. MIKULSKI. Mr. President, I rise today to support the conference 
report on satellite reform. As a co-sponsor of the original bill, I 
believe this bi-partisan legislation will encourage more competition in 
the satellite communications market. This will benefit American 
consumers and workers. It will also make America more competitive in 
the global satellite market.
  The Open-market Reorganization for the Betterment of International 
Telecommunications Act (ORBIT bill) will benefit our nation in a number 
of ways. First, the bill allows Lockheed Martin to acquire 100% of 
COMSAT Corporation by removing a number of old and outdated regulatory 
barriers. This is great news for these two outstanding Maryland 
companies and their employees. The merger will encourage growth and 
economic competition in one of the most dynamic sectors of our 
economy--the global satellite market. It means jobs today and jobs 
tomorrow--both in Maryland and throughout our nation. I look forward to 
Lockheed Martin and COMSAT completing their merger without any further 
delay.
  Second, this legislation encourages the privatization of INTELSAT, an 
inter-governmental organization, by including the leverage necessary to 
ensure that INTELSAT's privatization will conclude in a timely and pro-
competitive manner.
  Third, the conference agreement also reaffirms the ability of 
carriers to obtain Level III direct access. Level III direct access 
allows customers to enter into contractual agreements with INTELSAT to 
order, receive and pay for INTELSAT space segment capacity at the same 
rate that INTELSAT charges its signatories. This means that users of 
INTELSAT services will be able to purchase services directly from 
INTELSAT without going through COMSAT.
  Fourth, the bill does not remove the current prohibition on Level IV 
direct access until after INTELSAT privatizes. Allowing Level IV access 
before privatization would have unfairly and unjustly permitted 
COMSAT's competitors to buy all of COMSAT's investment in INTELSAT 
below market value which would have weakened the value of this 
international asset. This would have significantly diminished the value 
of the Lockheed-COMSAT transaction.
  I commend my colleagues on both sides of the aisle in the Senate and 
in the House for passing S. 376 and commend the President for signing 
this important legislation into law.

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