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‘‘(B) a list of Member countries of
INTELSAT and Inmarsat that are not Mem-
bers of the World Trade Organization and that
are not supporting pro-competitive privatization
of INTELSAT and Inmarsat.
‘‘(2) CONSULTATION.—The Secretary’s deter-
minations under paragraph (1) shall be made in con-
sultation with the Federal Communications Commis-
sion, 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 over-
seas carrier charges any United States carrier to
originate or terminate international message tele-
phone services; and
‘‘(2) any transition period that would otherwise
apply,
the Commission may by rule prohibit United States car-
riers from paying an amount in excess of a cost-based set-
tlement rate to overseas carriers in countries listed by the
Commission pursuant to subsection (a).
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‘‘(c) SETTLEMENTS POLICY.—The Commission shall,
in exercising its authority to establish settlements rates
for United States international common carriers, seek to
advance United States policy in favor of cost-based settle-
ments in all relevant fora on international telecommuni-
cations policy, including in meetings with parties and sig-
natories of INTELSAT and Inmarsat.
‘‘Subtitle C—Deregulation and
Other Statutory Changes
‘‘SEC. 641. DIRECT ACCESS; TREATMENT OF COMSAT AS
NONDOMINANT CARRIER.
‘‘The Commission shall take such actions as may be
necessary—
‘‘(1) to permit providers or users of tele-
communications services to obtain direct access to
INTELSAT telecommunications services—
‘‘(A) through purchases of space segment
capacity from INTELSAT as of January 1,
2000, if the Commission determines that—
‘‘(i) INTELSAT has adopted a usage
charge mechanism that ensures fair com-
pensation to INTELSAT signatories for
support costs that such signatories would
not otherwise be able to avoid under a di-
rect access regime, such as insurance, ad-
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ministrative, and other operations and
maintenance expenditures;
‘‘(ii) the Commission’s regulations en-
sure that no foreign signatory, nor any af-
filiate thereof, shall be permitted to order
space segment directly from INTELSAT
in order to provide any service subject to
the Commission’s jurisdiction; and
‘‘(iii) the Commission has in place a
means to ensure that carriers will be re-
quired to pass through to end-users sav-
ings that result from the exercise of such
authority; and
‘‘(B) through investment in INTELSAT as
of January 1, 2002, if the Commission deter-
mines that such investment will be attained
under procedures that assure fair compensation
to INTELSAT signatories for the market value
of their investments;
‘‘(2) to permit providers or users of tele-
communications services to obtain direct access to
Inmarsat telecommunications services—
‘‘(A) through purchases of space segment
capacity from Inmarsat as of January 1, 2000,
if the Commission determines that—
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‘‘(i) Inmarsat has adopted a usage
charge mechanism that ensures fair com-
pensation to Inmarsat signatories for sup-
port costs that such signatories would not
otherwise be able to avoid under a direct
access regime, such as insurance, adminis-
trative, and other operations and mainte-
nance expenditures;
‘‘(ii) the Commission’s regulations en-
sure that no foreign signatory, nor any af-
filiate thereof, shall be permitted to order
space segment directly from Inmarsat in
order to provide any service subject to the
Commission’s jurisdiction; and
‘‘(iii) the Commission has in place a
means to ensure that carriers will be re-
quired to pass through to end-users sav-
ings that result from the exercise of such
authority; and
‘‘(B) through investment in Inmarsat as of
January 1, 2001, if the Commission determines
that such investment will be attained under pro-
cedures that assure fair compensation to
Inmarsat signatories for the market value of
their investments;
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‘‘(3) to act on COMSAT’s petition to be treated
as a nondominant carrier for the purposes of the
Commission’s regulations according to the provisions
of section 10 of the Communications Act of 1934
(47 U.S.C. 160); and
‘‘(4) to eliminate any regulation on the avail-
ability of direct access to INTELSAT or Inmarsat
or to any successor entities after a pro-competitive
privatization is achieved consistent with sections
621, 622, and 624.
‘‘SEC. 642. TERMINATION OF MONOPOLY STATUS.
‘‘(a) RENEGOTIATION
OF MONOPOLY CONTRACTS
PERMITTED.—The Commission shall, beginning January
1, 2000, permit users or providers of telecommunications
services that previously entered into contracts or are under
a tariff commitment with COMSAT to have an oppor-
tunity, at their discretion, for a reasonable period of time,
to renegotiate those contracts or commitments on rates,
terms, and conditions or other provisions, notwithstanding
any term or volume commitments or early termination
charges in any such contracts with COMSAT.
‘‘(b) COMMISSION AUTHORITY TO ORDER RENEGO-
TIATION.—Nothing in this title shall be construed to limit
the authority of the Commission to permit users or provid-
ers of telecommunications services that previously entered
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into contracts or are under a tariff commitment with
COMSAT to have an opportunity, at their discretion, to
renegotiate those contracts or commitments on rates,
terms, and conditions or other provisions, notwithstanding
any term or volume commitments or early termination
charges in any such contracts with COMSAT.
‘‘(c) PROVISIONS CONTRARY
TO PUBLIC POLICY
VOID.—Whenever the Commission permits users or pro-
viders of telecommunications services to renegotiate con-
tracts or commitments as described in this section, the
Commission may provide that any provision of any con-
tract with COMSAT that restricts the ability of such users
or providers to modify the existing contracts or enter into
new contracts with any other space segment provider (in-
cluding but not limited to any term or volume commit-
ments or early termination charges) or places such users
or providers at a disadvantage in comparison to other
users or providers that entered into contracts with COM-
SAT or other space segment providers shall be null, void,
and unenforceable.
‘‘SEC. 643. SIGNATORY ROLE.
‘‘(a) LIMITATIONS ON SIGNATORIES.—
‘‘(1) NATIONAL SECURITY LIMITATIONS.—The
Federal Communications Commission, after a public
interest determination, in consultation with the exec-