    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book I)]
    [March 17, 2000]
    [Pages 486-487]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Signing the Open-market Reorganization for the Betterment
    of International Telecommunications Act
    March 17, 2000

        Today I have signed into law S. 376, the ``Open-market
    Reorganization for the Betterment of International Telecommunications
    Act.'' S. 376 amends the Communications Satellite Act of 1962 to
    establish a statutory framework for the privatization of the
    International Telecommunications Satellite Organization (INTELSAT) and
    the International Mobile Satellite Organization (Inmarsat).
        In partnership with the Congress, my Administration has worked
    aggressively over the last 6 years to promote the pro-competitive
    privatization of these intergovernmental satellite organizations. As a
    result of our efforts and changing commercial conditions, in 1995,
    Inmarsat spun off new business activities into a private United Kingdom
    (U.K.) corporation, ICO Global Communications Ltd., and, in 1999,
    Inmarsat privatized its remaining business activities as a U.K.
    corporation. In 1998, INTELSAT spun off five satellites into a private
    Netherlands corporation, New Skies Satellites, N.V. And last October,
    INTELSAT's 143 member governments agreed to fully privatize by early
    2001.
        My Administration's goal is to ensure that a privatized INTELSAT
    will compete fairly and fully with other international
    telecommunications companies, thus benefiting consumers through greater
    innovation, lower prices, and more service options. Fair competition
    requires a level playing field; INTELSAT must not retain advantages that
    result from its former intergovernmental status or that are unavailable
    to other satellite competitors, including any preferential access to
    orbital slots or foreign markets. But neither should INTELSAT (or the
    already privatized Inmarsat and New Skies) have to face barriers to the
    U.S. market erected by competitors who want to limit competition here.
    Full competition means that INTELSAT should be privatized in a way that
    allows it to provide the full range of telecommunications services,
    including value-added services to end users, as well as wholesale
    satellite capacity to communications providers (its current role). That
    means allowing INTELSAT to compete robustly against all other service
    providers in this rapidly growing industry.
        My Administration intends to pursue INTELSAT's privatization in a
    manner that is compatible with this Nation's international obligations
    and with our interests in a competitive global international
    telecommunications environment. Accordingly, the United States will
    continue to engage the other 142 member countries of INTELSAT in
    cooperative multilateral negotiations to achieve these goals.
        Several provisions of S. 376 could interfere with the President's
    constitutional authority to conduct the Nation's foreign affairs by
    directing or burdening the President's negotiations with foreign
    governments and international organizations. Specifically, new sections
    621 and 661 of the Communications Satellite Act of 1962 purport to
    direct the executive branch on how to proceed in foreign negotiations,
    and new sections 625(c), 644(b), and 647 purport to require the
    executive branch to take particular positions in international
    organizations. The President's constitutional authority over foreign
    affairs necessarily entails discretion over these matters, and

    [[Page 487]]

    I will therefore construe these provisions as advisory. To avoid similar
    constitutional difficulties, I will construe section 602(b) as not
    requiring the United States to take particular positions in
    international organizations.
        The President has the authority to conduct U.S. international trade
    policy and to interpret international treaty obligations, such as those
    arising under the World Trade Organization (WTO). In this regard and in
    furtherance of new section 601(c) of the Communications Satellite Act of
    1962, the appropriate Federal agencies will advise the Federal
    Communications Commission on all matters raised by S. 376 concerning
    interpretation of and compliance with WTO commitments of the United
    States.
        I appreciate the changes that the Congress made to section 3 of this
    bill, with respect to new section 601(b)(1)(C) of the Communications
    Satellite Act of 1962. These changes ensure, among other things,
    continued access by the Department of Defense, other national security
    agencies, and law enforcement and public health and safety agencies to
    existing and future Inmarsat and INTELSAT services. To effectively
    implement that section, the appropriate Federal agency or agencies will
    provide the Federal Communications Commission with comments on the
    application of S. 376 to matters related to national security, law
    enforcement, and protection of public health and safety.
        New section 601(a) of the Communications Satellite Act of 1962 deals
    with the Federal Communications Commission's licensing of ``separated
    entities,'' i.e., privatized entities to which a portion of INTELSAT's
    or Inmarsat's assets are transferred before full privatization. In
    approving S. 376, I state my understanding that section 601(a) will be
    applied as setting forth only one determination that the Commission must
    make in issuing a license or other authority to a separated entity. The
    Commission will continue to be required to make the other findings
    required by the Communications Act of 1934, including that the
    Commission apply its public interest review to all those who operate, or
    wish to operate, as telecommunications carriers. By interpreting section
    601(a) in this way, we ensure that this provision is harmonized with the
    Communications Act. We further ensure that in deciding to issue a
    license or other authority to a separated entity, the Commission will
    take into account factors in addition to the impact on competition of
    the issuance of a license or other authority, such as considerations
    relating to national security, law enforcement, foreign policy, trade,
    and public safety.
        In addition, in approving S. 376, I state my understanding that
    section 647 does not limit the Federal Communications Commission from
    assigning, via competitive bidding, domestic satellite service licenses
    intended to cover only the United States.
        As it has done for the last 6 years, my Administration will consult
    closely with the Congress as we negotiate with other countries on how
    INTELSAT should be privatized. My Administration has a clear vision for
    INTELSAT privatization, one shaped by our overriding concern with
    benefiting U.S. consumers through increased competition. We will
    participate aggressively in negotiations to ensure that decisions on
    privatization promote robust competition and comply with the United
    States' international treaty obligations.

                                                          William J. Clinton

     The White House,

     March 17, 2000.

     Note: S. 376, approved March 17, was assigned Public Law No. 106-180.