[Weekly Compilation of Presidential Documents Volume 36, Number 12 (Monday, March 27, 2000)]
[Pages 578-579]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

[[Page 579]]

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. 
This item was not received in time for publication in the appropriate 
issue.