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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-
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utive branch, may restrict foreign ownership of a
United States signatory if the Commission deter-
mines 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 IMMUNI-
TIES OF COMSAT.—
‘‘(1) GENERALLY NOT IMMUNIZED.—Notwith-
standing 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 and any
other company functioning as United States signa-
tory to INTELSAT or Inmarsat 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
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foreign governments, international entities, and the
intergovernmental satellite organizations.
‘‘(3) PROVISIONS
PROSPECTIVE.—Paragraph
(1) shall not apply with respect to liability for any
action taken by COMSAT before the date of enact-
ment of the Communications Satellite Competition
and Privatization Act of 1998.
‘‘(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 en-
tities providing similar services.
‘‘SEC. 644. ELIMINATION OF PROCUREMENT PREFERENCES.
‘‘Nothing in this title or the Communications Act of
1934 shall be construed to authorize or require any pref-
erence, in Federal Government procurement of tele-
communications services, for the satellite space segment
provided by INTELSAT, Inmarsat, or any successor en-
tity or separated entity.
‘‘SEC. 645. USE OF ITU TECHNICAL COORDINATION.
‘‘The Commission and United States satellite compa-
nies shall utilize the International Telecommunication
Union 
procedures 
for 
technical 
coordination 
with
INTELSAT and its successor entities and separated enti-
ties, rather than INTELSAT procedures.
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‘‘SEC. 646. TERMINATION OF COMMUNICATIONS SATELLITE
ACT OF 1962 PROVISIONS.
‘‘Effective on the dates specified, the following provi-
sions of this Act shall cease to be effective:
‘‘(1) Date of enactment of this title: Sections
101 and 102; paragraphs (1), (5) and (6) of section
201(a); section 301; section 303; section 502; and
paragraphs (2) and (4) of section 504(a).
‘‘(2) On the effective date of the Commission’s
order that establishes direct access to INTELSAT
space segment: Paragraphs (1), (3) through (5), and
(8) through (10) of section 201(c); and section 304.
‘‘(3) On the effective date of the Commission’s
order that establishes direct access to Inmarsat
space segment: Subsections (a) through (d) of sec-
tion 503.
‘‘(4) 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: Section 504(b).
‘‘(5) On the effective date of a Commission
order determining under section 601(b)(2) that
INTELSAT privatization is consistent with criteria
in sections 621 and 622: Paragraphs (2) and (4) of
section 201(a); section 201(c)(2); subsection (a) of
section 403; and section 404.
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‘‘SEC. 647. 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 Representa-
tives and the Committees on Commerce, Science, and
Transportation and Foreign Relations of the Senate with-
in 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 avail-
able immediately to the public.
‘‘(b) CONTENTS OF REPORTS.—The reports submit-
ted 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 privat-
ization.
‘‘(3) Views of industry and consumers on pri-
vatization.
‘‘(4) Impact privatization has had on United
States industry, United States jobs, and United
States industry’s access to the global marketplace.
‘‘SEC. 648. CONSULTATION WITH CONGRESS.
‘‘The President’s designees and the Commission shall
consult with the Committees on Commerce and Inter-
national Relations of the House of Representatives and
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the Committees on Commerce, Science, and Transpor-
tation and Foreign Relations of the Senate prior to each
meeting of the INTELSAT or Inmarsat Assembly of Par-
ties, the INTELSAT Board of Governors, the Inmarsat
Council, or appropriate working group meetings.
‘‘SEC. 649. SATELLITE AUCTIONS.
‘‘Notwithstanding any other provision of law, the
Commission shall not have the authority to assign by com-
petitive bidding orbital locations or spectrum used for the
provision of international or global satellite communica-
tions services. The President shall oppose in the Inter-
national Telecommunication Union and in other bilateral
and multilateral fora any assignment by competitive bid-
ding of orbital locations or spectrum used for the provision
of such services.
‘‘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:
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‘‘(1) INTELSAT.—The term ‘INTELSAT’
means the International Telecommunications Sat-
ellite Organization established pursuant to the
Agreement Relating to the International Tele-
communications 
Satellite 
Organization
(INTELSAT).
‘‘(2) INMARSAT.—The term ‘Inmarsat’ means
the International Mobile Satellite Organization es-
tablished pursuant to the Convention on the Inter-
national 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 en-
tity designated by a Party, that has signed the
Operating Agreement and for which such
Agreement has entered into force or to which
such Agreement has been provisionally applied;
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’—
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‘‘(A) in the case of INTELSAT, means a
nation for which the INTELSAT agreement
has entered into force or been provisionally ap-
plied; and
‘‘(B) in the case of Inmarsat, means a na-
tion for which the Inmarsat convention has en-
tered into force.
‘‘(5) COMMISSION.—The term ‘Commission’
means the Federal Communications Commission.
‘‘(6) 
INTERNATIONAL
TELECOMMUNICATION
UNION.—The term ‘International Telecommuni-
cation Union’ means the intergovernmental organi-
zation that is a specialized agency of the United Na-
tions in which member countries cooperate for the
development of telecommunications, including adop-
tion 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
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‘‘(B) does not include any entity that is a
separated entity.
‘‘(8) SEPARATED
ENTITY.—The term ‘sepa-
rated 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 lo-
cation’ means the location for placement of a sat-
ellite on the geostationary orbital arc as defined in
the International Telecommunication Union Radio
Regulations.
‘‘(10) SPACE SEGMENT.—The term ‘space seg-
ment’ means the satellites, and the tracking, telem-
etry, command, control, monitoring and related fa-
cilities 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 net-
work voice telephony and occasional-use television,
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ington on August 20, 1971, by Governments or
telecommunications entities designated by Gov-
ernments in accordance with the provisions of
the Agreement; and
‘‘(B) in the case of Inmarsat, the Operat-
ing 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 own-
ership of which is held through publicly traded secu-
rities, and that is incorporated under, and subject
to, the laws of a national, state, or territorial gov-
ernment.
‘‘(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.)
‘‘(19) ICO.—The term ‘ICO’ means the com-
pany known, as of the date of enactment of this
title, as ICO Global Communications, Inc.
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‘‘(20) REPLACEMENT
SATELLITE.—The term
‘replacement satellite’ means a satellite that replaces
a satellite that fails prior to the end of the duration
of contracts for services provided over such satellite
and that takes the place of a satellite designated for
the provision of public-switched network and occa-
sional-use television services under contracts exe-
cuted prior to March 25, 1998 (but not including
K–TV or similar satellites). A satellite is only con-
sidered a replacement satellite to the extent such
contracts are equal to or less than the design life of
the satellite.
‘‘(21) GLOBAL MARITIME DISTRESS AND SAFE-
TY SERVICES OR GMDSS.—The term ‘global mari-
time 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 pro-
moting maritime safety in general. The GMDSS per-
mits the worldwide alerting of vessels, coordinated
search and rescue operations, and dissemination of
maritime safety information.
‘‘(b) COMMON TERMINOLOGY.—Except as otherwise
provided in subsection (a), terms used in this title that
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are defined in section 3 of the Communications Act of
1934 have the meanings provided in such section.’’.
Passed the House of Representatives May 6, 1998.
Attest:
ROBIN H. CARLE,
Clerk.