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<classification authority="sudocs">GA 1.13:RCED-96-204</classification>
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 <subject>Communications satellites</subject>
 <subject>Telecommunications operations</subject>
 <subject>Economic analysis</subject>
 <subject>Competition</subject>
 <subject>Developing countries</subject>
 <subject>International organizations</subject>
 <subject>International relations</subject>
 <subject>Monopolies</subject>
 <subject>Privatization</subject>
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<titleInfo>
 <title>Telecommunications: Competitive Impact of Restructuring the International Satellite Organizations</title>
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<abstract>GAO provided information on the potential competitive impact of
restructuring the international satellite organizations, focusing on:
(1) possible alternative approaches to enhance market access; (2) the
affiliate created by the International Maritime Satellite Organization
(Inmarsat) to provide new services; and (3) proposals for restructuring
the International Telecommunications Satellite Organization (INTELSAT).&lt;p/&gt;GAO found that: (1) there is widespread belief that changes are
necessary in the structure and functions of INTELSAT and Inmarsat; (2)
many satellite companies believe that private competitors already offer
or will offer better global services at lower rates to the developing
world; (3) most member governments and signatories in developing
countries are concerned that their access to certain basic
telecommunications services may be threatened without the presence of
treaty organizations; (4) although most of the options for restructuring
the organizations favor enhancing competition by dismantling the
organizations or creating affiliates, the competitive impact of these
options depends on how these organizations are structured, the number of
entities created, and the degree of parent organization ownership; (5)
the new Inmarsat affiliate may have competitive advantages over other
potential competitors; (6) although the United States originally
supported the creation of the Inmarsat affiliate, the United States and
its signatory are pursuing action to ensure that it adheres to certain
principles that favor competition; (7) restructuring INTELSAT into two
entities and limiting the amount of signatory ownership in those
entities to 20 percent could improve the competitiveness of the global
telecommunications market; (8) another proposal supported by a coalition
of U.S. satellite firms favors establishing two new private companies in
addition to a scaled-down parent organization; (9) the effect on
competition of either proposal depends on whether INTELSAT market
dominance can be reduced and new companies are allowed to gain entrance
into foreign telecommunications markets; and (10) changing the present
structure of the treaty organizations would likely depend on reaching a
consensus among world member nations that have broad perspectives and
interests.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>Communications satellites</topic>
 <topic>Telecommunications operations</topic>
 <topic>Economic analysis</topic>
 <topic>Competition</topic>
 <topic>Developing countries</topic>
 <topic>International organizations</topic>
 <topic>International relations</topic>
 <topic>Monopolies</topic>
 <topic>Privatization</topic>
 <topic>Restrictive trade practices</topic>
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  <partNumber>Title 15 Section 18a</partNumber>
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