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[House Report 106-509]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-509

=======================================================================

 
    OPEN-MARKET REORGANIZATION FOR THE BETTERMENT OF INTERNATIONAL 
                   TELECOMMUICATIONS ACT (ORBIT ACT)

                                _______
                                

                 March 2, 2000.--Ordered to be printed

                                _______
                                

 Mr. Bliley, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany S. 376]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the House to the bill (S. 376), 
to amend the Communications Satellite Act of 1962 to promote 
competition and privatization in satellite communications, and 
for other purposes, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
    That the Senate recede from its disagreement to the 
amendment of the House and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the House 
amendment, insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Open-market Reorganization 
for the Betterment of International Telecommunications Act'' or 
the ``ORBIT Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to promote a fully 
competitive global market for satellite communication services 
for the benefit of consumers and providers of satellite 
services and equipment by fully privatizing the 
intergovernmental satellite organizations, INTELSAT and 
Inmarsat.

SEC. 3. REVISION OF COMMUNICATIONS SATELLITE ACT OF 1962.

    The Communications Satellite Act of 1962 (47 U.S.C. 701) is 
amended by adding at the end the following new title:

        ``TITLE VI--COMMUNICATIONS COMPETITION AND PRIVATIZATION

     ``Subtitle A--Actions To Ensure Pro-Competitive Privatization

``SEC. 601. FEDERAL COMMUNICATIONS COMMISSION LICENSING.

    ``(a) Licensing for Separated Entities.--
            ``(1) Competition test.--The Commission may not 
        issue a license or construction permit to any separated 
        entity, or renew or permit the assignment or use of any 
        such license or permit, or authorize the use by any 
        entity subject to United States jurisdiction of any 
        space segment owned, leased, or operated by any 
        separated entity, unless the Commission determines that 
        such issuance, renewal, assignment, or use will not 
        harm competition in the telecommunications market of 
        the United States. If the Commission does not make such 
        a determination, it shall deny or revoke authority to 
        use space segment owned, leased, or operated by the 
        separated entity to provide services to, from, or 
        within the United States.
            ``(2) Criteria for competition test.--In making the 
        determination required by paragraph (1), the Commission 
        shall use the licensing criteria in sections 621 and 
        623, and shall not make such a determination unless the 
        Commission determines that the privatization of any 
        separated entity is consistent with such criteria.
    ``(b) Licensing for INTELSAT, Inmarsat, and Successor 
Entities.--
            ``(1) Competition test.--
                    ``(A) In general.--In considering the 
                application of INTELSAT, Inmarsat, or their 
                successor entities for a license or 
                construction permit, or for the renewal or 
                assignment or use of any such license or 
                permit, or in considering the request of any 
                entity subject to United States jurisdiction 
                for authorization to use any space segment 
                owned, leased, or operated by INTELSAT, 
                Inmarsat, or their successor entities, to 
                provide non-core services to, from, orwithin 
the United States, the Commission shall determine whether--
                            ``(i) after April 1, 2001, in the 
                        case of INTELSAT and its successor 
                        entities, INTELSAT and any successor 
                        entities have been privatized in a 
                        manner that will harm competition in 
                        the telecommunications markets of the 
                        United States; or
                            ``(ii) after April 1, 2000, in the 
                        case of Inmarsat and its successor 
                        entities, Inmarsat and any successor 
                        entities have been privatized in a 
                        manner that will harm competition in 
                        the telecommunications markets of the 
                        United States.
                    ``(B) Consequences of determination.--If 
                the Commission determines that such competition 
                will be harmed or that grant of such 
                application or request for authority is not 
                otherwise in the public interest, the 
                Commission shall limit through conditions or 
                deny such application or request, and limit or 
                revoke previous authorizations to provide non-
                core services to, from, or within the United 
                States. After due notice and opportunity for 
                comment, the Commission shall apply the same 
                limitations, restrictions, and conditions to 
                all entities subject to United States 
                jurisdiction using space segment owned, leased, 
                or operated by INTELSAT, Inmarsat, or their 
                successor entities.
                    ``(C) National security, law enforcement, 
                and public safety.--The Commission shall not 
                impose any limitation, condition, or 
                restriction under subparagraph (B) in a manner 
                that will, or is reasonably likely to, result 
                in limitation, denial, or revocation of 
                authority for non-core services that are used 
                by and required for a national security agency 
                or law enforcement department or agency of the 
                United States, or used by and required for, and 
                otherwise in the public interest, any other 
                Department or Agency of the United States to 
                protect the health and safety of the public. 
                Such services may be obtained by the United 
                States directly from INTELSAT, Inmarsat, or a 
                successor entity, or indirectly through COMSAT, 
                or authorized carriers or distributors of the 
                successor entity.
                    ``(D) Rule of construction.--Nothing in 
                this subsection is intended to preclude the 
                Commission from acting upon applications of 
                INTELSAT, Inmarsat, or their successor entities 
                prior to the latest date set out in section 
                621(5)(A), including such actions as may be 
                necessary for the United States to become the 
                licensing jurisdiction for INTELSAT, but the 
                Commission shall condition a grant of authority 
                pursuant to this subsection upon compliance 
                with sections 621 and 622.
            ``(2) Criteria for competition test.--In making the 
        determination required by paragraph (1), the Commission 
        shall use the licensing criteria in sections 621, 622, 
        and 624, and shall determine that competition in the 
        telecommunications markets of the United States will be 
        harmed unless the Commission finds that the 
        privatization referred to in paragraph (1) is 
        consistent with such criteria.
            ``(3) Clarification: competitive safeguards.--In 
        making its licensing decisions under this subsection, 
        the Commission shall consider whether users of non-core 
        services provided by INTELSAT or Inmarsat or successor 
        or separated entities are able to obtain non-core 
        services from providers offering services other than 
        through INTELSAT or Inmarsat or successor or separated 
        entities, at competitive rates, terms, or conditions. 
        Such consideration shall also include whether such 
        licensing decisions would require users to replace 
        equipment at substantial costs prior to the termination 
        of its design life. In making its licensing decisions, 
        the Commission shall also consider whether competitive 
        alternatives in individual markets do not exist because 
        they have been foreclosed due to anticompetitive 
        actions undertaken by or resulting from the INTELSAT or 
        Inmarsat systems. Such licensing decisions shall be 
        made in a manner which facilitates achieving the 
        purposes and goals in this title and shall be subject 
        to notice and comment.
    ``(c) Additional Considerations in Determinations.--In 
making its determinations and licensing decisions under 
subsections (a) and (b), the Commission shall construe such 
subsections in a manner consistent with the United States 
obligations and commitments for satellite services under the 
Fourth Protocol to the General Agreement on Trade in Services.
    ``(d) Independent Facilities Competition.--Nothing in this 
section shall be construed as precluding COMSAT from investing 
in or owning satellites or other facilities independent from 
INTELSAT and Inmarsat, and successor or separated entities, or 
from providing services through reselling capacity over the 
facilities of satellite systems independent from INTELSAT and 
Inmarsat, and successor or separated entities. This subsection 
shall not be construed as restricting the types of contracts 
which can be executed or services which may be provided by 
COMSAT over the independent satellites or facilities described 
in this subsection.

``SEC. 602. INCENTIVES; LIMITATION ON EXPANSION PENDING PRIVATIZATION.

    ``(a) Limitation.--Until INTELSAT, Inmarsat, and their 
successor or separate entities are privatized in accordance 
with the requirements of this title, INTELSAT, Inmarsat, and 
their successor or separate entities, respectively, shall not 
be permitted to provide additional services. The Commission 
shall take all necessary measures to implement this 
requirement, including denial by the Commission of licensing 
for such services.
    ``(b) Orbital Location Incentives.--Until such 
privatization is achieved, the United States shall oppose and 
decline to facilitate applications by such entities for new 
orbital locations to provide such services.

  ``Subtitle B--Federal Communications Commission Licensing Criteria: 
                         Privatization Criteria

``SEC. 621. GENERAL CRITERIA TO ENSURE A PRO-COMPETITIVE PRIVATIZATION 
                    OF INTELSAT AND INMARSAT.

    ``The President and the Commission shall secure a pro-
competitive privatization of INTELSAT and Inmarsat that meets 
the criteria set forth in this section and sections 622 through 
624. In securing such privatizations, the following criteria 
shall be applied as licensing criteria for purposes of subtitle 
A:
            ``(1) Dates for privatization.--Privatization shall 
        be obtained in accordance with the criteria of this 
        title of--
                    ``(A) INTELSAT as soon as practicable, but 
                no later than April 1, 2001; and
                    ``(B) Inmarsat as soon as practicable, but 
                no later than July 1, 2000.
            ``(2) Independence.--The privatized successor 
        entities and separated entities of INTELSAT and 
        Inmarsat shall operate as independent commercial 
        entities, and have a pro-competitive ownership 
        structure. The successor entities and separated 
        entities of INTELSAT and Inmarsat shall conduct an 
        initial public offering in accordance with paragraph 
        (5) to achieve such independence. Such offering shall 
        substantially dilute the aggregate ownership of such 
        entities by such signatories or former signatories. In 
        determining whether a public offering attains such 
        substantial dilution, the Commission shall take into 
        account the purposes and intent, privatization 
        criteria, and other provisions of this title, as well 
        as market conditions. No intergovernmental 
        organization, including INTELSAT or Inmarsat, shall 
        have--
                    ``(A) an ownership interest in INTELSAT or 
                the successor or separated entities of 
                INTELSAT; or
                    ``(B) more than minimal ownership interest 
                in Inmarsat or the successor or separated 
                entities of Inmarsat.
            ``(3) Termination of privileges and immunities.--
        The preferential treatment of INTELSAT and Inmarsat 
        shall not be extended to any successor entity or 
        separated entity of INTELSAT or Inmarsat. Such 
        preferential treatment includes--
                    ``(A) privileged or immune treatment by 
                national governments;
                    ``(B) privileges or immunities or other 
                competitive advantages of the type accorded 
                INTELSAT and Inmarsat and their signatories 
                through the terms and operation of the INTELSAT 
                Agreement and the associated Headquarters 
                Agreement and the Inmarsat Convention; and
                    ``(C) preferential access to orbital 
                locations.
        Access to new, or renewal of access to, orbital 
        locations shall be subject to the legal or regulatory 
        processes of a national government that applies due 
        diligence requirements intended to prevent the 
        warehousing of orbital locations.
            ``(4) Prevention of expansion during transition.--
        During the transition period prior to privatization 
        under this title, INTELSAT and Inmarsat shall be 
        precluded from expanding into additional services.
            ``(5) Conversion to stock corporations.--Any 
        successor entity or separated entity created out of 
        INTELSAT or Inmarsat shall be a national corporation or 
        similar accepted commercial structure, subject to the 
        laws of the nation in which incorporated, as follows:
                    ``(A) An initial public offering of 
                securities of any successor entity or separated 
                entity--
                            ``(i) shall be conducted, for the 
                        successor entities of INTELSAT, on or 
                        about October 1, 2001, except that the 
                        Commission may extend this deadline in 
                        consideration of market conditions and 
                        relevant business factors relating to 
                        the timing of an initial public 
                        offering, but such extensions shall not 
                        permit such offering to be conducted 
                        later than December 31, 2002; and
                            ``(ii) shall be conducted, for the 
                        successor entities of Inmarsat, on or 
                        about October 1, 2000, except that the 
                        Commission may extend this deadline in 
                        consideration of market conditions and 
                        relevant business factors relating to 
                        the timing of an initial public 
                        offering, but to no later than December 
                        31, 2001.
                    ``(B) The shares of any successor entities 
                and separated entities shall be listed for 
                trading on one or more major stock exchanges 
                with transparent and effective securities 
                regulation.
                    ``(C) A majority of the members of the 
                board of directors of any successor entity or 
                separated entity shall not be directors, 
                employees, officers, or managers or otherwise 
                serve as representatives of any signatory or 
                former signatory. No member of the board of 
                directors of any successor or separated entity 
                shall be a director, employee, officer or 
                manager of any intergovernmental organization 
                remaining after the privatization.
                    ``(D) Any successor entity or separated 
                entity shall--
                            ``(i) have a board of directors 
                        with a fiduciary obligation;
                            ``(ii) have no officers or managers 
                        who (I) are officers or managers of any 
                        signatories or former signatories, or 
                        (II) have any direct financial interest 
                        in or financial relationship to any 
                        signatories or former signatories, 
                        except that such interestmay be managed 
through a blind trust or similar mechanism;
                            ``(iii) have no directors, 
                        officers, or managers who hold such 
                        positions in any intergovernmental 
                        organization; and
                            ``(iv) in the case of a separated 
                        entity, have no officers or directors, 
                        who (I) are officers or managers of any 
                        intergovernmental organization, or (II) 
                        have any direct financial interest in 
                        or financial relationship to any 
                        international organization, except that 
                        such interest may be managed through a 
                        blind trust or similar mechanism.
                    ``(E) Any transactions or other 
                relationships between or among any successor 
                entity, separated entity, INTELSAT, or Inmarsat 
                shall be conducted on an arm's length basis.
            ``(6) Regulatory treatment.--Any successor entity 
        or separated entity created after the date of enactment 
        of this title shall apply through the appropriate 
        national licensing authorities for international 
        frequency assignments and associated orbital 
        registrations for all satellites.
            ``(7) Competition policies in domiciliary 
        country.--Any successor entity or separated entity 
        shall be subject to the jurisdiction of a nation or 
        nations that--
                    ``(A) have effective laws and regulations 
                that secure competition in telecommunications 
                services;
                    ``(B) are signatories of the World Trade 
                Organization Basic Telecommunications Services 
                Agreement; and
                    ``(C) have a schedule of commitments in 
                such Agreement that includes non-discriminatory 
                market access to their satellite markets.

``SEC. 622. SPECIFIC CRITERIA FOR INTELSAT.

    ``In securing the privatizations required by section 621, 
the following additional criteria with respect to INTELSAT 
privatization shall be applied as licensing criteria for 
purposes of subtitle A:
            ``(1) Technical coordination under intelsat 
        agreements.--Technical coordination shall not be used 
        to impair competition or competitors, and shall be 
        conducted under International Telecommunication Union 
        procedures and not under Article XIV(d) of the INTELSAT 
        Agreement.

``SEC. 623. SPECIFIC CRITERIA FOR INTELSAT SEPARATED ENTITIES.

    ``In securing the privatizations required by section 621, 
the following additional criteria with respect to any INTELSAT 
separated entity shall be applied as licensing criteria for 
purposes of subtitle A:
            ``(1) Date for public offering.--Within one year 
        after any decision to create any separated entity, a 
        public offering of the securities of such entity shall 
        be conducted. In the case of a separated entity created 
        before January 1, 1999, such public offering shall be 
        conducted no later than July 1, 2000, except that the 
        Commission may extend this deadline in consideration of 
        market conditions and relevant business factors 
        relating to the timing of an initial public offering, 
        but such extensions shall not permit such offering to 
        be conducted later than July 31, 2001.
            ``(2) Interlocking directorates or employees.--None 
        of the officers, directors, or employees of any 
        separated entity shall be individuals who are officers, 
        directors, or employees of INTELSAT.
            ``(3) Spectrum assignments.--After the initial 
        transfer which may accompany the creation of a 
        separated entity, the portions of the electromagnetic 
        spectrum assigned as of the date of enactment of this 
        title to INTELSAT shall not be transferred between 
        INTELSAT and any separated entity.
            ``(4) Reaffiliation prohibited.--Any merger or 
        ownership or management ties or exclusive arrangements 
        between a privatized INTELSAT or any successor entity 
        and any separated entity shall be prohibited until 11 
        years after the completion of INTELSAT privatization 
        under this title.

``SEC. 624. SPECIFIC CRITERIA FOR INMARSAT.

    ``In securing the privatizations required by section 621, 
the following additional criteria with respect to Inmarsat 
privatization shall be applied as licensing criteria for 
purposes of subtitle A:
            ``(1) Reaffiliation prohibited.--Any merger, 
        ownership of more than one percent of the voting 
        securities, or management ties or exclusive 
        arrangements between Inmarsat or any successor entity 
        or separated entity and ICO shall be prohibited until 
        15 years after the completion of Inmarsat privatization 
        under this title.
            ``(2) Interlocking directorates or employees.--None 
        of the officers, directors, or employees of Inmarsat or 
        any successor entity or separated entity shall be 
        individuals who are officers, directors, or employees 
        of ICO.
            ``(3) Preservation of the gmdss.--The United States 
        shall seek to preserve space segment capacity of the 
        GMDSS.

``SEC. 625. ENCOURAGING MARKET ACCESS AND PRIVATIZATION.

    ``(a) NTIA Determination.--
            ``(1) Determination required.--Within 180 days 
        after the date of enactment of this section, the 
        Secretary of Commerce shall, through the Assistant 
        Secretary for Communications and Information, transmit 
        to the Commission--
                    ``(A) a list of Member countries of 
                INTELSAT and Inmarsat that are not Members of 
                the World Trade Organization and that impose 
                barriers to market access for private satellite 
                systems; and
                    ``(B) a list of Member countries of 
                INTELSAT and Inmarsat that are not Members of 
                the World Trade Organization and that are not 
                supporting pro-competitive privatization of 
                INTELSAT and Inmarsat.
            ``(2) Consultation.--The Secretary's determinations 
        under paragraph (1) shall be made in consultation with 
        the Federal Communications Commission, the Secretary of 
        State, and the United States Trade Representative, and 
        shall take into account the totality of a country's 
        actions in all relevant fora, including the Assemblies 
        of Parties of INTELSAT and Inmarsat.
    ``(b) Imposition of Cost-Based Settlement Rate.--
Notwithstanding--
            ``(1) any higher settlement rate that an overseas 
        carrier charges any United States carrier to originate 
        or terminate international message telephone services; 
        and
            ``(2) any transition period that would otherwise 
        apply,
the Commission may by rule prohibit United States carriers from 
paying an amount in excess of a cost-based settlement rate to 
overseas carriers in countries listed by the Commission 
pursuant to subsection (a).
    ``(c) Settlements Policy.--The Commission shall, in 
exercising its authority to establish settlements rates for 
United Statesinternational common carriers, seek to advance 
United States policy in favor of cost-based settlements in all relevant 
fora on international telecommunications policy, including in meetings 
with parties and signatories of INTELSAT and Inmarsat.

         ``Subtitle C--Deregulation and Other Statutory Changes

``SEC. 641. ACCESS TO INTELSAT.

    ``(a) Access Permitted.--Beginning on the date of enactment 
of this title, users or providers of telecommunications 
services shall be permitted to obtain direct access to INTELSAT 
telecommunications services and space segment capacity through 
purchases of such capacity or services from INTELSAT. Such 
direct access shall be at the level commonly referred to by 
INTELSAT, on the date of enactment of this title, as `Level 
III'.
    ``(b) Rulemaking.--Within 180 days after the date of 
enactment of this title, the Commission shall complete a 
rulemaking, with notice and opportunity for submission of 
comment by interested persons, to determine if users or 
providers of telecommunications services have sufficient 
opportunity to access INTELSAT space segment capacity directly 
from INTELSAT to meet their service or capacity requirements. 
If the Commission determines that such opportunity to access 
does not exist, the Commission shall take appropriate action to 
facilitate such direct access pursuant to its authority under 
this Act and the Communications Act of 1934. The Commission 
shall take such steps as may be necessary to prevent the 
circumvention of the intent of this section.
    ``(c) Contract Preservation.--Nothing in this section shall 
be construed to permit the abrogation or modification of any 
contract.

``SEC. 642. SIGNATORY ROLE.

    ``(a) Limitations on Signatories.--
            ``(1) National security limitations.--The Federal 
        Communications Commission, after a public interest 
        determination, in consultation with the executive 
        branch, may restrict foreign ownership of a United 
        States signatory if the Commission determines that not 
        to do so would constitute a threat to national 
        security.
            ``(2) No signatories required.--The United States 
        Government shall not require signatories to represent 
        the United States in INTELSAT or Inmarsat or in any 
        successor entities after a pro-competitive 
        privatization is achieved consistent with sections 621, 
        622, and 624.
    ``(b) Clarification of Privileges and Immunities of 
COMSAT.--
            ``(1) Generally not immunized.--Notwithstanding any 
        other law or executive agreement, COMSAT shall not be 
        entitled to any privileges or immunities under the laws 
        of the United States or any State on the basis of its 
        status as a signatory of INTELSAT or Inmarsat.
            ``(2) Limited immunity.--COMSAT or any successor in 
        interest shall not be liable for action taken by it in 
        carrying out the specific, written instruction of the 
        United States issued in connection with its 
        relationships and activities with foreign governments, 
        international entities, and the intergovernmental 
        satellite organizations.
            ``(3) No joint or several liability.--If COMSAT is 
        found liable for any action taken in its status as a 
        signatory or a representative of the party to INTELSAT, 
        any such liability shall be limited to the portion of 
        the judgment that corresponds to COMSAT's percentage of 
        the ownership of INTELSAT at the time the activity 
        began which led to the liability.
            ``(4) Provisions prospective.--Paragraph (1) shall 
        not apply with respect to liability for any action 
        taken by COMSAT before the date of enactment of this 
        title.
    ``(c) Parity of Treatment.--Notwithstanding any other law 
or executive agreement, the Commission shall have the authority 
to impose similar regulatory fees on the United States 
signatory which it imposes on other entities providing similar 
services.

``SEC. 643. ELIMINATION OF PROCUREMENT PREFERENCES.

    ``Nothing in this title or the Communications Act of 1934 
shall be construed to authorize or require any preference, in 
Federal Government procurement of telecommunications services, 
for the satellite space segment provided by INTELSAT, Inmarsat, 
or any successor entity or separated entity.

``SEC. 644. ITU FUNCTIONS.

    ``(a) Technical Coordination.--The Commission and United 
States satellite companies shall utilize the International 
Telecommunication Union procedures for technical coordination 
with INTELSAT and its successor entities and separated 
entities, rather than INTELSAT procedures.
    ``(b) ITU Notifying Administration.--The President and the 
Commission shall take the action necessary to ensure that the 
United States remains the ITU notifying administration for the 
privatized INTELSAT's existing and future orbital slot 
registrations.

``SEC. 645. TERMINATION OF COMMUNICATIONS SATELLITE ACT OF 1962 
                    PROVISIONS.

    ``Effective on the dates specified, the following 
provisions of this Act shall cease to be effective:
            ``(1) Date of enactment of this title: Paragraphs 
        (1), (5) and (6) of section 201(a); section 201(b); 
        paragraphs (1), (3) through (5), and (8) through (10) 
        of section 201(c); section 303; section 304; section 
        502; section 503; paragraphs (2) and (4) of section 
        504(a); and section 504(c).
            ``(2) Upon the transfer of assets to a successor 
        entity and receipt by signatories or former signatories 
        (including COMSAT) of ownership shares in the successor 
        entity of INTELSAT in accordance with appropriate 
        arrangements determined by INTELSAT to implement 
        privatization: Section 305.
            ``(3) On the effective date of a Commission order 
        determining under section 601(b)(2) that Inmarsat 
        privatization is consistent with criteria in sections 
        621 and 624: Sections 504(b) and 504(d).
            ``(4) On the effective date of a Commission order 
        determining under section 601(b)(2) that INTELSAT 
        privatization isconsistent with criteria in sections 
621 and 622: Section 102; section 103(7); paragraphs (2) through (4) 
and (7) of section 201(a); paragraphs (2), (6), and (7) of section 
201(c); section 301; section 302; section 401; section 402; section 
403; and section 404.

``SEC. 646. REPORTS TO CONGRESS.

    ``(a) Annual Reports.--The President and the Commission 
shall report to the Committees on Commerce and International 
Relations of the House of Representatives and the Committees on 
Commerce, Science, and Transportation and Foreign Relations of 
the Senate within 90 calendar days of the enactment of this 
title, and not less than annually thereafter, on the progress 
made to achieve the objectives and carry out the purposes and 
provisions of this title. Such reports shall be made available 
immediately to the public.
    ``(b) Contents of Reports.--The reports submitted pursuant 
to subsection (a) shall include the following:
            ``(1) Progress with respect to each objective since 
        the most recent preceding report.
            ``(2) Views of the Parties with respect to 
        privatization.
            ``(3) Views of industry and consumers on 
        privatization.
            ``(4) Impact privatization has had on United States 
        industry, United States jobs, and United States 
        industry's access to the global marketplace.

``SEC. 647. SATELLITE AUCTIONS.

    ``Notwithstanding any other provision of law, the 
Commission shall not have the authority to assign by 
competitive bidding orbital locations or spectrum used for the 
provision of international or global satellite communications 
services. The President shall oppose in the International 
Telecommunication Union and in other bilateral and multilateral 
fora any assignment by competitive bidding of orbital locations 
or spectrum used for the provision of such services.

``SEC. 648. EXCLUSIVITY ARRANGEMENTS.

    ``(a) In General.--No satellite operator shall acquire or 
enjoy the exclusive right of handling telecommunications to or 
from the United States, its territories or possessions, and any 
other country or territory by reason of any concession, 
contract, understanding, or working arrangement to which the 
satellite operator or any persons or companies controlling or 
controlled by the operator are parties.
    ``(b) Exception.--In enforcing the provisions of this 
section, the Commission--
            ``(1) shall not require the termination of existing 
        satellite telecommunications services under contract 
        with, or tariff commitment to, such satellite operator; 
        but
            ``(2) may require the termination of new services 
        only to the country that has provided the exclusive 
        right to handle telecommunications, if the Commission 
        determines the public interest, convenience, and 
        necessity so requires.

           ``Subtitle D--Negotiations To Pursue Privatization

``SEC. 661. METHODS TO PURSUE PRIVATIZATION.

    ``The President shall secure the pro-competitive 
privatizations required by this title in a manner that meets 
the criteria in subtitle B.

                       ``Subtitle E--Definitions

``SEC. 681. DEFINITIONS.

    ``(a) In General.--As used in this title:
            ``(1) INTELSAT.--The term `INTELSAT' means the 
        International Telecommunications Satellite Organization 
        established pursuant to the Agreement Relating to the 
        International Telecommunications Satellite Organization 
        (INTELSAT).
            ``(2) Inmarsat.--The term `Inmarsat' means the 
        International Mobile Satellite Organization established 
        pursuant to the Convention on the International 
        Maritime Organization.
            ``(3) Signatories.--The term `signatories'--
                    ``(A) in the case of INTELSAT, or INTELSAT 
                successors or separated entities, means a 
                Party, or the telecommunications entity 
                designated by a Party, that has signed the 
                Operating Agreement and for which such 
                Agreement has entered into force; and
                    ``(B) in the case of Inmarsat, or Inmarsat 
                successors or separated entities, means either 
                a Party to, or an entity that has been 
                designated by a Party to sign, the Operating 
                Agreement.
            ``(4) Party.--The term `Party'--
                    ``(A) in the case of INTELSAT, means a 
                nation for which the INTELSAT agreement has 
                entered into force; and
                    ``(B) in the case of Inmarsat, means a 
                nation for which the Inmarsat convention has 
                entered into force.
            ``(5) Commission.--The term `Commission' means the 
        Federal Communications Commission.
            ``(6) International telecommunication union.--The 
        term `International Telecommunication Union' means the 
        intergovernmental organization that is a specialized 
        agency of the United Nations in which member countries 
        cooperate for the development of telecommunications, 
        including adoption of international regulations 
        governing terrestrial and space uses of the frequency 
        spectrum as well as use of the geostationary satellite 
        orbit.
            ``(7) Successor entity.--The term `successor 
        entity'--
                    ``(A) means any privatized entity created 
                from the privatization of INTELSAT or Inmarsat 
                or from the assets of INTELSAT or Inmarsat; but
                    ``(B) does not include any entity that is a 
                separated entity.
            ``(8) Separated entity.--The term `separated 
        entity' means a privatized entity to whom a portion of 
        the assets owned by INTELSAT or Inmarsat are 
        transferred prior to full privatization of INTELSAT or 
        Inmarsat, including in particular the entity whose 
        structure was under discussion by INTELSAT as of March 
        25, 1998, but excluding ICO.
            ``(9) Orbital location.--The term `orbital 
        location' means the location for placement of a 
        satellite on the geostationary orbital arc as defined 
        in the International Telecommunication Union Radio 
        Regulations.
            ``(10) Space segment.--The term `space segment' 
        means the satellites, and the tracking, telemetry, 
        command, control, monitoring and related facilities and 
        equipment used to support the operation of satellites 
        owned or leased by INTELSAT, Inmarsat, or a separated 
        entity or successor entity.
            ``(11) Non-core services.--The term `non-core 
        services' means, with respect to INTELSAT provision, 
        services other than public-switched network voice 
        telephony and occasional-use television, and with 
        respect to Inmarsat provision, services other than 
        global maritime distress and safety services or other 
        existing maritime or aeronautical services for which 
        there are not alternative providers.
            ``(12) Additional services.--The term `additional 
        services' means--
                    ``(A) for Inmarsat, those non-maritime or 
                non-aeronautical mobile services in the 1.5 and 
                1.6 Ghz band on planned satellites or the 2 Ghz 
                band; and
                    ``(B) for INTELSAT, direct-to-home (DTH) or 
                direct broadcast satellite (DBS) video 
                services, or services in the Ka or V bands.
            ``(13) INTELSAT agreement.--The term `INTELSAT 
        Agreement' means the Agreement Relating to the 
        International Telecommunications Satellite Organization 
        (`INTELSAT'), including all its annexes (TIAS 7532, 23 
        UST 3813).
            ``(14) Headquarters agreement.--The term 
        `Headquarters Agreement' means the International 
        Telecommunication Satellite Organization Headquarters 
        Agreement (November 24, 1976) (TIAS 8542, 28 UST 2248).
            ``(15) Operating agreement.--The term `Operating 
        Agreement' means--
                    ``(A) in the case of INTELSAT, the 
                agreement, including its annex but excluding 
                all titles of articles, opened for signature at 
                Washington on August 20, 1971, by Governments 
                or telecommunications entities designated by 
                Governments in accordance with the provisions 
                of the Agreement; and
                    ``(B) in the case of Inmarsat, the 
                Operating Agreement on the International 
                Maritime Satellite Organization, including its 
                annexes.
            ``(16) Inmarsat convention.--The term `Inmarsat 
        Convention' means the Convention on the International 
        Maritime Satellite Organization (Inmarsat) (TIAS 9605, 
        31 UST 1).
            ``(17) National corporation.--The term `national 
        corporation' means a corporation the ownership of which 
        is held through publicly traded securities, and that is 
        incorporated under, and subject to, the laws of a 
        national, state, or territorial government.
            ``(18) COMSAT.--The term `COMSAT' means the 
        corporation established pursuant to title III of the 
        Communications Satellite Act of 1962 (47 U.S.C. 731 et 
        seq.), or the successor in interest to such 
        corporation.
            ``(19) ICO.--The term `ICO' means the company 
        known, as of the date of enactment of this title, as 
        ICO Global Communications, Inc.
            ``(20) Global maritime distress and safety services 
        or gmdss.--The term `global maritime distress and 
        safety services' or `GMDSS' means the automated ship-
        to-shore distress alerting system which uses satellite 
        and advanced terrestrial systems for international 
        distress communications and promoting maritime safety 
        in general. The GMDSS permits the worldwide alerting of 
        vessels, coordinated search and rescue operations, and 
        dissemination of maritime safety information.
            ``(21) National security agency.--The term 
        `national security agency' means the National Security 
        Agency, the Director of Central Intelligence and the 
        Central Intelligence Agency, the Department of Defense, 
        and the Coast Guard.
    ``(b) Common Terminology.--Except as otherwise provided in 
subsection (a), terms used in this title that are defined in 
section 3 of the Communications Act of 1934 have the meanings 
provided in such section.''.
    And the House agree to the same.

                                   Tom Bliley,
                                   Billy Tauzin,
                                   Michael G. Oxley,
                                   John D. Dingell,
                                   Edward J. Markey,
                                 Managers on the Part of the House.

                                   John McCain,
                                   Ted Stevens,
                                   Conrad Burns,
                                   Fritz Hollings,
                                   Daniel K. Inouye,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the House to the bill (S. 376) to amend the 
Communications Satellite Act of 1962 to promote competition and 
privatization in satellite communications, and for other 
purposes, submit the following joint statement to the House and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
conference report:
      The House amendment struck all of the Senate bill after 
the enacting clause and inserted a substitute text.
      The Senate recedes from its disagreement to the amendment 
of the House with an amendment that is a substitute for the 
Senate bill and the House amendment.
      The managers on the part of the House and Senate met on 
February 29, 2000, and reconciled the differences between the 
two bills.
                                   Tom Bliley,
                                   Billy Tauzin,
                                   Michael G. Oxley,
                                   John D. Dingell,
                                   Edward J. Markey,
                                 Managers on the Part of the House.

                                   John McCain,
                                   Ted Stevens,
                                   Conrad Burns,
                                   Fritz Hollings,
                                   Daniel K. Inouye,
                                Managers on the Part of the Senate.

                                

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