Remarks by 
                  FCC Chairman William Kennard
                               AT
                                
                  THE SATELLITE SEMINAR DINNER
                     INTELSAT Headquarters
                                
                  Wednesday, November 1, 2000
                  (As prepared for delivery) 
                                
Thank you, Walda, for that kind and generous introduction.

Good evening to all. It is a pleasure to speak before you again.

I am delighted to be here in the Intelsat headquarters building this evening, and to get a
chance to be a part of this important satellite seminar. From what I understand, the seminar has
already been extremely productive after its second day, despite the last-minute change in venue. 

As you know, in little less than a week, our nation will be choosing its next President.
And, I must confess, I have been a little disappointed in the quality of the discourse in this year's
election. To my mind, neither Vice-President Gore nor Governor Bush has spoken to my
concerns. In three debates, I did not hear either candidate say a word about two-degree spacing
or coordinating positions. Oh, sure they went on and on about Social Security, education, and
foreign policy, but what about the crucial satellite issues facing America today. Aren't either of
these men concerned about swaying the satellite undecideds, or losing the critical satellite swing
vote?

Seriously, though, I want to congratulate the U.S. satellite industry for its leadership in the
global telecommunications market.  

It all started almost a half-century ago with Sputnik. It was the height of the Cold War
when that first satellite traced across the sky, and in its steady beep the world heard the first
reverberations of the Information Age.

I was all of one year old at the time Sputnik traced across the sky, but I do remember
what it was like to grow up in the Cold War, and I have heard much of the fears of Russian
espionage   and supremacy -- that Sputnik once stoked in the American mind. It is a testament to
the domestic satellite industry   and to the vision and leadership of President John F. Kennedy  
that the United States was able to match the considerable technological feats of the Russian
people in the following years. 
 
We have come a long way since the days of Sputnik. Nowadays, satellites have become an
integral foundation of life in the Information Age.

An important event can take place on the other side of the world   such as the 2000
Olympic Games in Sydney or the recent Serb revolution in Yugoslavia   and within seconds it is
broadcast by satellites into homes around the globe.

Thanks to satellite images of weather patterns, people can now make much more informed
decisions on their travel and daily wardrobes  -- and can more readily prepare for or possibly
evacute from damaging and possibly fatal storm systems.

In a boon to developed and developing nations alike, farmers can now utilize enhanced
satellite imaging to monitor   and increase   their crop production.

Rabid sports fans can use satellite feeds to receive every game of their particular favorite
sport or team regardless of where they reside. I wish they could use the same technology to
receive every important political debate -- but I won't get into that debate tonight.  

Fixed satellite services have advanced to the point where they can simultaneously carry
thousands of public network conversations around the world.  

And mobile satellite service technologies now have the ability to bring switched public
networks to every point on earth, particularly to rural and underserved areas which need more
attention.  

Using satellite technology, the Central Intelligence Agency can now watch each and every
one of you as oops, never mind. I wasn't supposed to mention that.

Seriously though, satellites have countless applications in our current age. And as far as
using the technology to improve lives, I believe we've only hit the tip of the iceberg.

Indeed, satellite technology holds particular promise for the nations of the developing
world. As a cornerstone of our Development Initiative, which partners FCC regulatory expertise
with emerging nations around the globe   in Africa, South America, and Asia   we encourage our
colleagues overseas to think of their communications networks in technology neutral terms. For
the advantages of satellites to developing countries deserve a full airing   for example, satellites
can service areas where towers cannot feasibly be built. 

We all know the ups and downs that are currently occurring in your industry.  But I feel
this is only a reflection of the competitiveness of the business.  Visionaries and investors are
willing to plan and develop new paths for the satellite industry, and we at the FCC encourage this.


I am very encouraged by recent news reports that Motorola, under the leadership of Chris
Galvin, is taking important steps to sell the Iridium constellation to a group of private investors. 
We applaud any efforts that would keep these valuable assets in use for critical voice
communications around the globe.

We see satellite systems as excellent complements to terrestrial wired and wireless
networks -- especially for broadband services -- systems that are good for the U.S. and good for
the delivery of those services to global markets.  

In the broadband arena, satellites have a very important role to play.  Satellites will be
needed to bridge the gap to rural areas, where it is too costly and time-consuming to provide
terrestrial broadband services.  Serving rural and remote areas is a particular strength of satellite
technology, and satellite systems really need to step up to the plate in doing so.

     We know that the ability of satellite systems to serve rural and underserved markets is
unsurpassed by terrestrial means.  We want to ensure those opportunities, and then to get out of
your way so you can get on with your business.

I also want to promote delivery of the Internet to consumers via satellite networks so that
there are more alternatives and competition to terrestrial delivery.  

The Internet is as integral to the contours of the Information Age as satellite technology.
And, in order to facilitate the satellite industry's moving into the ISP market, the FCC is prepared
to defend U.S. satellite systems' spectrum needs at international conferences and to continue to
streamline and expedite satellite network authorizations.  

Intelsat is a large part of the movement.  Intelsat has been the focus of much attention
lately at the FCC.  You all know now that Intelsat will privatize as early as April next year - - a
decision taken to change from a treaty-based organization to a private company with its main
service headquarters here where we are tonight.  

The creation of Intelsat was another initiative of John F. Kennedy in the early 60s.  The
United States and Comsat were among its founding members in 1964. We are enormously proud
of the history and role this organization has played.  And, I am personally very pleased to see its
full privatization and transformation into a public company now just around the corner.

One might ask, "Why privatize Intelsat?"  I believe there are two compelling reasons - - 

       (1)     There are fast-paced requirements for more specialized and value-added services, as
       well as greater bandwidth, and
      
     (2) There is a need to maintain increasing competition with highly capitalized, agile, global
     satellite competitors and expanding global fiber optic and wire cable systems.  

The FCC wants to see Intelsat as a strong, competitive company on a level playing field
with maximum flexibility.  There must be continuity of service and continuing global connectivity
for all Intelsat customers on a non-discriminatory basis.  We want to see the transition to Intelsat
Ltd., occur smoothly.  I am encouraged by the progress being made toward this goal, and I am
particularly pleased with the prospect of the privatized company becoming an FCC licensee.
 
Let me return for a moment to the larger event surrounding this evening -- the satellite
seminar.  This seminar is compelled largely by international events.  Changes made to satellite
regulatory requirements and spectrum availability at the last several world radio conferences, --
which occur at a back-breaking biannual pace   create new and enhanced opportunities for
innovation.  

Unfortunately, there is a negative side effect   namely, the diminished ability of the
International Telecommunication Union (ITU) in Geneva to keep up with processing of satellite
network notifications and related paper processing.  

Backlog at the ITU is more than two-years and growing.  This is becoming a great
problem for the satellite community.  U.S. Ambassador George Moose in Geneva told the ITU
Secretary-General earlier this year that "the most critical near-term   issue for the radio sector is
related to the backlog   in processing satellite notification and registration notices." 

Indeed, this backlog situation reminds me of the story about a man who goes to his doctor
and tells him, "Doctor, I think my wife is trying to poison me." The doctor tells him that must be
ridiculous, but the man insists it's true. So, on the request of this fellow, the doctor decides to pay
a visit to the man's wife. He comes back and tells the guy, "Well, sir, I just spent the afternoon
talking with your wife and hearing about all the varied details of your lives together." The man
says, "And?" To which the doctor replies, "And I'd take the poison."  

Seriously though, this backlog is more than just paperwork and headaches. It has the
propensity to hamstring satellite interests in seeking global markets.  Measures taken at the last
radio conference in Istanbul -- such as the requirement for electronic filings -- will help with the
backlog, but it will be some time before we see all the necessary relief.  It is our hope that
measures identified and discussed at this seminar will be helpful in getting the backlog reduced
and eventually eliminated.

With that in mind, I would like to offer a suggestion for addressing the inability to
complete satellite coordination because of the backlog. Maybe it is time -- perhaps in the ITU
reformation discussions leading up to the ITU plenipotentiary conference in Marrakech -- to
consider a variety of commercial marketplace solutions. These commercial solutions would give
more authority directly to the satellite community while putting the responsibility for coordination
in the hands of those who value it the most.  

When I say "commercial solutions," I can think of a number of options for solving both
the ITU satellite coordination problem and the WTO market access problem. These include, using
the current ITU, as well as short circuiting the ITU process, and allowing administrative certainty.
For example, we could consider privatizing the part of the ITU that currently administers the
satellite coordination process.   We could also consider formalizing secondary markets for orbital
locations.  Under this scenario, entities could form alliances to implement satellite networks at
orbital locations or use  private commercial arrangements to buy access to, or resolve potential
interference conflicts at, individual orbital locations. Whatever we consider, the satellite industry's
interest must be safeguarded.

At the FCC, we look to the satellite industry to provide strategic thinking and solutions
for the future. I know my staff has challenged you to consider ways to not only improve the ITU
process, but to also streamline our domestic satellite licensing process. It is your business and we
want to help you succeed.

The backlog isn't the only stumbling block we currently face. As in several other
information industries, there are growing satellite spectrum scarcity issues, not only among
satellite network systems but also between these networks and terrestrial networks.  

We tend to move higher and higher in frequencies for using satellites, but each higher band
brings another set of challenges to go along with the benefits.  Greater transmission bandwidth is
available in higher bands, but we are pushing the technology envelope.  

Now, we want to push that envelope.  This is where the satellite community excels.  We
encourage development of new systems and innovative ways of providing satellite services of all
kinds.  But until then, more frequency sharing is required while we all become more efficient in
finding new ways of delivering satellite services in the future.  

The FCC is not exempt from this need for innovation and efficiency.  I have been
frustrated by the slow pace of satellite network application processing at the Commission. We too
have a backlog, and the national regulatory process is causing delays in entering the market.  

It is important that satellite services get to the market more quickly.  We are trying to
streamline this licensing process, and you will hear Friday at the seminar what steps we are taking. 
For example, you can soon expect an FCC earth station notice of proposed rulemaking designed
to speed licensing.  

You will also have an opportunity at the FCC seminar panel on Friday to tell us your
thoughts on how to streamline and quicken our application process.  In many cases, we know that
you are in competition with terrestrial services that can roll out much faster. And we want to do
what we can to minimize or erase this competitive disadvantage. I would mention the recent 2
gigahertz notice, which offers equal opportunity for all of the applicants.  As a step forward we
have introduced more market-based mechanisms into the licensing process in this band.  

In closing, I want to address directly the recent turbulence in the industry. People ask me
all the time   in the satellite world as in the Internet world   if these economic corrections or
downturns in the market signify the end of the boom. Is this all over?, they ask. To which I can
only respond, "Of course not. This is only the beginning." 

Satellite technology is the most efficient way of processing and transmitting information in
the Information Age. We need you to ensure that all corners of the globe   urban, rural, and
remote   are not left behind in the communications revolution. In short, forty-three years after
Sputnik, satellites are just beginning to change the world.

Thank you for your attention tonight.