TOWARDS EUROPE-WIDE SYSTEMS AND SERVICES - GREEN PAPER ON A COMMON APPROACH IN THE FIELD OF SATELLITE COMMUNICATIONS IN THE EUROPEAN COMMUNITY
Date: 1990-11-20
Institutions: European Commission
Subjects: EU policy, Eutelsat, audiovisual communications policy, mobile communication, satellite, satellite communications, space technology, telecommunications industry, telecommunications policy, video communications

COMdISSION  OF  THE  EUROPEAN  COI\t\ruNITIES 

COM  (90)  490  final 

Brussels,  20  November  1990 

Towards Europe-wide systems. and services -

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. 

. 
. .  .  . 

. . 

Green_ Paper on a common approach· in thefield of  · 

satellite·communications in the Europea~ Community-.· 

ComQtunication from the Commission 

SHORT PRESENTATION 

2 

Satellite communications have developed dramatically during recent years.  As the 
European Community approaches the Europe-wide market of 1992, satellite 
communications are becoming a vital element for the trans-European services and 
networks needed for the single European market, and the broader continental dimension 
which is developing from the revolutionary changes in Eastern Europe. 

Since satellite communications represent by far the largest commercial application for 
satellite technology, they will determine, to a large extent, the commercial success of 
Europe's effort to gain a strategic and future-proof position in space.  They have developed 
into an essential element of the common European audio-visual space, which is a central 
precondition for Europe's future political and cultural identity and coherence. 

This Communication is being written at a time when the European Community is about to 
achieve its aim of completing the internal market by 1992.  Satellite communications can 
make an important contribution to this process, given the appropriate regulatory and 
market developments. 

In the field of satellite communications the challenge is particularly great.  The 
Community's internal market is still highly compartmentalized.  This may, if no changes are 
brought about, hamper the development of its satellite industry, which is still in its infancy 
in service terms - despite its advanced position in technological terms.  This 
compartmentalisation has not allowed the appropriate use of the potential of the new 
sate~ite communications technologies for the provision of Europe-wide systems and 
services. 

The need for change is therefore undeniable.  The compartmentalisation of the 
Community's satellite communications market cannot be maintained in view of 1992. 

Abolishing these restrictions is not only in the interest of users, service providers and 
equipment manufacturers, but also in the interest of the Member States themselves.  The 
Commission's move for liberalisation in the field of terrestrial telecommunications, based 
on the Green Paper for the development of a common market for telecommunications 
services and equipment, was supported by all Member States, since they were convinced 
that they would otherwise forego the potential growth of this market, the business 
opportunities for their industry and the supply of their users with advanced 
telecommunications services. 

In the field of satellite communications, the same considerations apply. 

Furthermore, the recent changes in Eastern Europe define a range of applications which 
may prove particularly suited to sat~llite technology.  Only with a lifting of restrictive 
national regulations within the Community, thereby allowing the implementation of 
Europe-wide satellite terminal networks, can the European Community play a full  role in 
meeting the emerging satellite communications needs of its Eastern neighbours.  Otherwise 
Central and Eastern Europe's satellite technology and equipment needs are likely to be 
met by suppliers from third countries, who can build on the existence of major satellite 
terminal networks already implemented in their home countries due to their more liberal 
regulatory regime. 

3 

Several Member States have already liberalised parts· of their satellite communications 
sector on their own initiative.  In particular, some Member States have authorised a 
number of operators to provide satellite services across borders towards other Member 
States.  This raises a number of questions with regard to fundamental principles of the 
Treaty of Rome such as the free circulation of goods and services.  It is important that 
these questions be resolved at Community level so that divergent national solutions are 
avoided. 

The objective of this communication is to prevent such a divergent situation by proposing a 
future-oriented structure for the development of satellite communications for the Single 
Market of 1992. 

The paper intends to extend the application of the general agreed principles of Community 
telecommunications policy to satellite communications, taking into account the specificities 
of this means of communication.  Four major changes are proposed: 

Full liberalisation of the earth segment, including both receive-only and 
transmit/receive terminals, subject to appropriate type approval and licensing 
procedures where justified to implement necessary regulatory safeguards; 

Free  (unrestricted)  access to space segment capacity, subject to licensing procedures in 
order to safeguard those exclusive or special rights and regulatory provisions set up 
by Member States in conformity with Community law and based on the consensus 
achieved in Community telecommunications policy. 

Access should be on an equitable, non-discriminatory and cost-oriented basis. 

Full commercial freedom for space segment providers,  including direct marketing of 
satellite capacity to service providers and users, subject to compliance with the 
licensing procedures mentioned above and in conformity with Community law, in 
particular competition rules. 

Harmonisation measures as far as required to facilitate the provision of Europe-wide 
services.  This concerns in particular the mutual recognition of licensing and type 
approval procedures, frequency coordination and coordination with regard to Third 
Country providers. 

With the combination of these changes, a broad range of specialised services will become 
possible. 

It is intended to proceed in the following manner: 

This Communication should lead to a debate in the Council, the European 
Parliament and the Economic and Social Committee and among all those 
concerned within the Community - the telecommunications and broadcasting 
sector, telecommunications and space industry, the trade unions, and in particular 
the many new users and service providers, such as education and training 
institutions - on the use that should be made of satellite communications, on the 
need for further development of satellite services and on the necessary regulatory 
framework to fulfil these requirements; 

After an appropriate consultation period, the Commission will present its 
conclusions to the Council on the implementation of a Community policy for 
satellite communications including the necessary regulatory instruments. 

Table of Contents 

4 

I. 

INTRODUCTION ....................................................................................................................... 7 

II.  THE SATELLITE SCENE IN EUROPE .............................................................................. 11 

1.  The General Environment ............................................................................................... 11 

·  1.1 

INTEI.SAT and INMARSAT .............................................................................. 12 
1.2  EUTEI.SAT ............................................................................................................ 14 

2.  The Development of Satellite Systems in Europe ....................................................... 17 

3.  Current International Co-ordination Mechanisms: .................................................... 23 

Orbital Positions and Frequencies 

4.  Current Regulatory Conditions in the Community .................................................... 27 

4.1  Earth Segment ........................................................................................................ 27 
4.2  Right to use/provide a service and licensing/type-approval.. ........................ 28 
4.3  Access to - and provision of - space segment capacity ..................................... 31 

5.  Summary 

........................................................................................................................ 32 

III.  TECHNOLOGICAL AND MARKET DEVELOPMENTS ................................................. 34 

1.  Space Segment Development .......................................................................................... 36 

1.1 
Space Technology ................................................................................................... 36 
1.2  Use of New Frequency Bands .............................................................................. 37 
Increase in Lifetime ............................................................................................... 3 7 
1.3 

2.  Earth Segment Development .......................................................................................... 37 

3.  Traditional Services .......................................................................................................... 38 

4.  New Services ...................................................................................................................... 39 

4.1 
Standard satellite-based digital services ............................................................. 40 
4.2  Very Small Aperture Terminal (VSAT) Networks .......................................... 41 
4.3  Videoconferencing ................................................................................................. 42 
4.4  Other New Satellite Services ................................................................................ 42 

5.  Entertainment Broadcasting Services ........................................................................... 43 

5.1  TV distribution ....................................................................................................... 43 
5.2  Direct Broadcasting Services (DBS) ................................................................... 44 
5.3  High Definition Television (HDTV) .................................................................. 45 

6.  Mobile Services and Position Fixing Services .............................................................. 46 

6.1  Maritime Services .................................................................................................. 46 
6.2  Land Mobile Services ............................................................................................ 46 
6.3  Aeronautical Services ............................................................................................ 4 7 

5 

7.  Development in other major markets: United States and Japan ........................... .48 

7.1  The United States .................................................................................................. 48 

7.1.1  Domestic "Open-skies" policy .................................................................... 48 
7.1.2  U.S. approach to international satellite communications .................... 50 
7.1.3  Mobile satellites services ............................................................................ 52 

7.2 

Japan ........................................................................................................................ 53 

8.  Summary 

........................................................................................................................ 55 

IV.  SATELLITE COMMUNICATIONS IN A GLOBAL POLICY CONTEXT .................... 58 . 
1.  Satellite Communications in the context of Community Space Policy .................... 58 

2.  Satellite Communications in the Context of Community Audio-Visual Policy ..... 62 

2.1  Overall Audio-visual Policy .................................................................................. 63 
2.2  The development of HDTV in Europe .............................................................. 64 
2.3  The role of Satellites in HDTV ........................................................................... 65 
2.4  Conditional Access Systems ................................................................................. 67 

3.  The Larger European Dimension .................................................................................. 68 

3.1  Cooperation with EFf A and other neighbouring countries, and the ........... 69 

European Conference of Postal and Telecommunications 
Administrations ( CEPT) 
Importance of satellite communications for Central and Eastern Europe .. 72 

3.2 

4.  External Aspects and the International Environment of.. ......................................... 74 

Satellite communications 

4.1 
International Telecommunications Union (ITU) ............................................. 74 
4.2  General Agreement on Tariffs and Trade (GA TT) ............ : ............................ 76 
4.3  Co-ordination of positions with regard to Third Country providers ............. 77 
4.4.  Relations with the Mediterranean, Africa, Latin America ............................. 78 

and other parts of the world 

5.  Summary 

........................................................................................................................ 80 

V.  EXTENDING THE PRINCIPLES OF COMMUNITY TELECOMMUNICATIONS 

POLICY TO SATELLITE COMMUNICATIONS .............................................................. 82 

1.  General principles ............................................................................................................. 83 

2.  Future treatment of the earth segment.. ....................................................................... 86 

2.1  Entertainment broadcast (TV) reception terminals ........................................ 87 
2.2  Receive only satellite telecommunications terminals ...................................... 87 
2.3  Transmit/ receive terminals .................................................................................. 88 
2.4  Central control earth stations (hub stations) of satellite ................................. 88 

terminal networks 

2.5  Abolition of exclusive or special rights ............................................................... 89 

for the provision of terminal equipment 

6 

3.  Right to use/ provide service ......................................................................................... 90 

3.1 
Signal transmission/ reception to/from satellite (uplink/downlink) ........... 91 
3.2  Licensing conditions .............................................................................................. 94 
3.2.1  Avoidance of harmful interference, and frequency co-ordination ..... 94 
3.2.2  Data protection and technical standards ................................................. 95 
3.2.3  Other requirements .................................................................................... 96 
3.2.4  Mutual recognition of licensing ................................................................ 97 

4.  Future treatment of the space segment ........................................................................ 99 

4.1  Ensuring objective, transparent and non-discriminatory procedures  ........ 101 

and separation of regulatory and operational functions 

· 4.2  Access to space segment capacity ...................................................................... 102 
4.3  Co-ordination procedures with the International .......................................... 1()3 

Telecommunications Satellite Organisations 

4.4  Cost-orientation of tariffs ................................................................................... 105 
4.5  Commercial freedom for EUTELSAT and provision .................................. 106 

of space segment 

4.6  A phased approach .............................................................................................. 108 

5.  Standardisation and Type-approval ............................................................................. 110 

6.  Mobile and position-fixing satellite services ............................................................... 111 

7.  Broadcasting satellite services ...................................................................................... 114 

8.  Summary 

...................................................................................................................... 117 

VI.  TOWARDS A COMMON APPROACH TO THE FIELD OF SATELLITE .•.•••••••.•....• 120 
COMMUNICATIONS IN THE COMMUNITY:  CONCLUSIONS AND PROPOSALS 

1.  General Conclusions to be taken into account .......................................................... 120 

2.  Proposed positions .......................................................................................................... 127 

3.  Measures for Facilitating Trans-European Services ................................................. 134 

4.  Lines of Action for Creating a favourable Environment .......................................... 136 

GLOSSARY OF SATELLITE COMMUNICATIONS TERMS .............................................. 140 

Figure 1 

Figure 2 

Figure 3 

Figure 4 

Figure 5 

Figure 6 

Shareholding of Community Member States and 
Community Signatories in INTELSAT, INMARSAT AND EUTELSAT .. 16 

Current and planned European Civil Satellite Systems .................................. 19 

Non-European satellites used for services with European coverage ............ 22 

Regulatory Environment of Satellite Communications in Community 
Member States ........................................................................................................ 30 

Satellite Communications in Europe  - key-figures ........................................ 57 

Community, EFfA, Central and Eastern Europe and other neighbouring 
Eurol?ean countr~es '?em~ership in organisations of most interest to 
satellite communications m Europe .................................................................... 70 

Summary of Proposed Positions ........................................................................ 129 

I.  INTRODUCTION 

7 

The  working  out  of a  coherent  European  position  regarding  the  future  regulation  and 

development of satellite communications in the European Community was singled out as a 

priority  in  the  1987  Green  Paper  on  the  development  of  the  common  market  for 

telecommunications  services  and  equipment  and  the  subsequent  implementation  action 

plan.1.2 

In its  Resolution of 30 June 19883  adopting the general principles of the Green Paper, the 

Council considered as a  policy  goal in  telecommunications the "working out of a  common 

position on satellite communications, so that this new information medium can develop in a 

favourable  environment, taking account  of the general rules  of operation and  exploitation 

of the  network  environment,  as  well  as  the competition  rules  of the  Treaty and  existing 

international commitments of the Member States". 

It is the intention of this paper to follow up this objective. 

The  major  part  of  the  current  regulatory  and  organisational  structure  of  satellite 

communications  in  Europe  was  created  more  than  a  decade  ago. 

In  the  meantime, 

dramatic technological advances have opened completely new  avenues of use which go  far 

beyond 

the 

role  of  satellites 

in  public  voice 

telephone 

transmission  between 

Telecommunications  Organisations  for  which  this  structure  was  originally  principally 

designed.  Television  via  satellites  to  cable TV  head-ends  and,  more  recently,  directly  to 

businesses and  homes has developed into a  major application of satellites in  Europe.  The 

development  of  small  dishes  of  only  0.5  - 2.5  meters  diameter  for  a  variety  of  user 

applications - compared to up to about 30 meters for the traditional earth stations for trunk 

telephony and TV programme interchange use - have opened completely new opportunities 

for  rapid  development  of  Europe-wide  systems  by  service  providers - both  public  and 

private - tailored to very specific needs of individual customer groups. 

Towards a Dynamic Economy - Green Paper on the development of the Common Market for 
telecommunications services and equipment, COM(87) 290, 30/06/1987. 

2 

3 

Towards a competitive Community-wide telecommunications market in 1992 - Implementing the Green Paper 
on the development of the Common Market for telecommunications services and equipment, COM(88) 48, 
09 /02/1988. 

Council Resolution of 30 June 1988 on the development of the Common Market for telecommunications 
services and equipment up to 1992, OJ.  C 257, 04/10/1988, p.  1. 

8 

As  a  consequence,  besides  the  traditional  "point-to-point"  applications  of  satellite 

communications  developed  by 

the  Telecommunications  Organisations 

to  provide 

international  and  long-distance  links  in  the  context  of  the  international  organisations 

originally  set  up  for  this  purpose - INTELSAT,  INMARSA T,  EUTELSAT - completely 

new  applications  have led  to  the  development of new  distinct  markets,  such  as  "point-to 

multipoint"  one-way  and  interactive  two-way  Very  Small  Aperture  Terminal  (VSA T) 

systems.  These  range  from  a  few  dozen  up  to  several  thousand  terminals,  and  have  the 

potential to  become a  vital  component  of Europe-wide business  communications.  Other 

applicat~ons include  satellite  news  gathering  (SNG)  systems - the  collection  of news  and 

data  from  multiple  points - these  are  becoming important  in  the context  of Europe-wide 

information and broadcasting activities, and direct-to-home satellite television. 

In parallel,  the  number of satellite systems  in  place - on  an  international,  national  and  to 

some extent private basis - is multiplying  in Europe, corresponding to the new diversity of 

use  which  goes  far  beyond  the  past  vision  of satellite  communications  as  an  additional 

transmission system between national telephone systems. 

However, the new services and markets can only become a  reality in Europe, if the current 

regulatory restrictions - originally designed for another context and for other purposes - are 

carefully reviewed. 

A  number  of  Member  States  have  recognised  the  basic  change  in  market  conditions 

brought  about  by  the  multiplication  of  possible  uses  and  have  started  to  review  the 

regulatory  conditions  of the  sector  on  their  own  initiative,  abolishing  restrictions  of use 

liable to prevent the full development of the new services and systems. 

Satellite communications were set aside for later consideration in the Green Paper on  the 

development of the common market for  telecommunications services and equipment.  The 

consensus  achieved,  on  the  basis  of  this  Green  Paper  and  the  subsequent  political 

decisions,  in  particular  at  the  Telecommunications  Council  on  7  December  1989  on  the 

general  future  regulatory  conditions  of the  telecommunications  sector  in  the  European 

Community, can  now be the basis  on which  to  build  a common  regulatory position  in  the 

field  of  satellite  communications.  Such  a  common  regulatory  position  on  satellite 

communications, while safeguarding the exclusive  or special rights of Telecommunications 

Organisations  allocated  by  Member  States  in  conformity  with  Community  law  and  the 

directives on competition in  the markets for  telecommunications terminal equipment  and 

services,4.S  must take proper account of the requirement to use the full potential of satellite 

4 

5 

Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 
equipment (88/301/EEC}, OJ.  L 131, 27 /05/1988, p.  73. 

Commission Directive of 28 June 1990 on competition in the markets for telecommunications services 

9 

communications  for  the  development  of Europe-wide  services  with  a  view  to  the  1992 

single  market  and  the continental  dimension  introduced  by  the developments  in  Central 

and Eastern Europe.  It must recognise the need to abolish those restrictions which prevent 

such  new  activities and  create a  framework which  promotes them,  as well  as  the need  to 

support Europe's position in space and the objectives of Community audio-visual policy.6 

A first  step towards allowing full  use of the potential of satellite communications was taken 

with the abolition of exclusive and special rights on the importation, marketing, connection, 

bringing  into  service  and/or  maintenance  of  receive-only  satellite  earth  stations  not 

connected  to  the  public  network,  in  the context  of the  liberalisation  of the  Community's 

.. 

terminal equipment sector7•  It now  seems timely  to  extend  the  application  of the  agreed 

general principles of Community telecommunications policy to satellite communications: 

liberalisation of use, while allowing for the implementation of regulatory safeguards 

through  appropriate  type  approval  and  licensing  schemes,  as  compatible  with 

Community law and, in particular, competition rules; 

separation  of regulatory  and  operational  functions,  in  order  to  avoid  conflicts  of 

interest; 

implementation  of  harmonisation  measures,  as  far  as  required  for  ensuring 

effective working of Europe-wide services and equipment markets. 

Based on  these considerations,  a phased approach  is  proposed  in  chapter VI.,  in  order to 

achieve a consistent Community policy on satellite communications: 

1. 

Agreeing  on  basic  proposed  positions,  which  apply  the  generai principles  set  out 
above to the satellite communications sector; 

2. 

Initiating a  number of measures at Community level which,  based on the proposed 

positions, aim at allowing effective Europe-wide provision and use of services; 

90/388/EEC, O.J. L 192, 24.07.1990, p.  10. 

6 

1 

Communication by the Commission to the Council and to the European Parliament on audio-visual policy, 
COM(90) 78, 21/02/1990. 

Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 
equipment (88/301/EEC), OJ.  L 131, 27 /05/1988. 

3. 

Launching a number of lines of action, in order to create a favourable environment 

for  such  operations,  in  particular with  regard  to  the international commitments of 

Member States in  this  area,  and  concerning standardisation and  the promotion of 

the  full  use  of  satellite  technologies 

to 

the  best  advantage  of  Europe's 

communication system. 

10 

II.  The Satellite Scene in Europe 

11 

1. 

The General Environment 

Telecommunications satellites were originally conceived  for  the establishment and 

enhancement  of  international  communications,  and  this  is  still  their  main 

application.  Even  where  satellites  are  used  for  national  services,  since  satellite . 

beams  cannot  be  shaped  to  follow  national  boundaries  exactly,  the  regulation  of 

satellite  communications,  and  the  co-ordination  of  frequencies  used  by  these 

satellites,  are  issues  going  beyond 

the  purview  of  national  legislative  or 

administrative systems. 

Frequency bands for satellite services are allocated by World Administrative Radio 

Conferences 

(WARC's)  and  Regional  Administrative  Radio  Conferences 

(RARC's ).  Use of frequencies within these bands is co-ordinated and administered 

by  the  International  Frequency  Registration  Board,  a  body  of  the  International 

Telecommunications  Union  (ITU),  both  internationally  and  with  regard  to  the 

Member  States  of the  Community.  For  the  purposes  of frequency  allocation  at 

WAR C's and  RARC's, civil  satellite services  are mainly divided  into fixed,  mobile, 

broadcasting and  radiodetermination services.  At  the time when  this  division  was 

made,  it  reflected  the  fact  that  the  different  services  were  provided  by  different 

organisations:  fixed  services  by  telecommunications  organisatio~s, mobile  services 

by  international  consortia,  and  broadcast  services  by  broadcasting  authorities 

(though  often 

through  earth 

stations  operated  by 

telecommunications 

organisations). 

Historically, the Radio Regulations of the International Telecommunications Union 

provide definitions of these categories, which  are called the Fixed-Satellite Services 

(FSS),  the  Broadcasting-Satellite  Services  (BSS),  the  Mobile-Satellite  Services 

(MSS),  and  the  Radiodetermination-Satellite  Services  (RDSS)  (see  Glossary). 

However,  with  current  rapid  technological  development,  these  originally  clear 

distinctions  are  becoming  more  and  more  blurred,  for  example  between  Fixed 

Satellite  Services  and  Broadcast  Satellite  Services  and  between  Mobile  Satellite 

Services and Radio Determination Satellite Services (see chapter III.). 

12 

The general development of satellite communications at the international level has 

been  characterised  by  the  establishment  of  INTELSAT  - the  International 

Telecommunications  Satellite  Organisation ;  INMARSA T  -

the  International 

Maritime Satellite  Organisation; and  the European Telecommunications Satellite 

Organisation, EUTELSAT. 

1.1 

INTELSAT and INMARSAT 

INTELSAT,  the  International  Telecommunications  Satellite  Organisation, was . 
established  in  1964  by  11  countries;  it  now  has  119  members  and  provides 

international  telephony,  data  and  video  (point-to-point)  services  as  well  as  in 

certain  cases,  television  broadcast  services  in  the  fixed  satellite  service  (FSS) 

frequency  band. 

INTELSAT's  governing  charter  is  a  1973  intergovernmental 

convention  known  as 

the  INTEL.SAT  Agreement  signed  by 

the  member 

governments  of  the  organisation. 

This 

is  supplemented  by  an  Operating 

Agreement, signed mostly by  the telecommunications organisations of the member 

countries as appointed by the national governments8. 

The INTELSAT Agreement,  inter  alia,  binds  national  governments  which  sign  it, 

not  to  establish,  acquire  or  utilise  other  satellite  systems  without  (a)  performing 

"technical co-ordination" with the INTEL.SAT system  to avoid  mutual interference, 

and  (b)  proving  that  the  separate  system  and  services  will  not  cause  "economic 

harm"  to  INTELSAT (the  so-called Article  XIV procedure).  The second  proviso 

aims  at  limiting  competition  from  separate  systems  and  services  which  are 

considered by INTEL.SAT a potential threat to its revenues. 

INTELSAT's turnover in 1989 was 480 million ECU. 

All Member States of the Community are members of INTELSAT.  The ownership 

share of Community Member States in  INTELSAT was 28.2  %  as  at 1March1990. 

8 

Some members have created special organisations for representing them as signatories to the international 
satellite organisations: the United States has created COMSAT; Italy has created TELESPAZIO. 

13 

The only  Eastern  European  members,  Yugoslavia  and  Romania  have  0.20%  and 

0.05  %  respectively and other European countries account for  a  further 3.4  %.  As 

far  as  provision  of  the  actual  satellites  for  the  system  is  concerned,  European 

manufacturers  have  never  succeeded  in  becoming  the  prime  contractor  for  any 

INTELSAT satellite  series,  although  European  companies  have  been  involved  as 

subcontractors  to  US  manufacturers,  notably  in  the  INTELSAT  VII  series  now 

being developed. 

INMARSAT, the International Maritime Satellite Organisation, was established in 

1979  by  an  intergovernmental  Agreement;  it  now  has  61  Member  States . . 

Operations are carried out by  the designated  signatories (the telecommunications 

organisations9)  of the  member  states.  Modifications  to  the  original  INMARSA T 

convention  allow  it  to  operate  land  mobile  and  aeron~utical  mobile  services  in 

addition to maritime mobile services,  all  using the Mobile-Satellite Services (MSS) 

frequency band around 1.5 - 1.6. GHz, the so called L-band. 

INMARSAT's turnover in 1989 was 98.4 million ECU. 

With  the  exception  of  Ireland  and  Luxembourg,  all  Member  States  of  the 

Community  are  members  of INMARSAT.  European  states  have  made  a  major 

contribution to the development of this service - almost 52 %  of the shareholdings 

in  INMARSA T  are  held  by  authorities  of  European  states.  The  Community 

Member  States  investment  shares  total  about  34  percent.  MARECS  satellites, 

developed  in  cooperation with  European industry  by  the  European  Space Agency 

(ESA), are currently used by INMARSAT (one as a  prime satellite for the Atlantic 

Ocean Region, a second as a back-up in the Pacific).  In addition~ British Aerospace 

heads  the  consortium  constructing  the  INMARSA T  second  generation  satellites, 

scheduled to come into operation in  1990.  The overall European industrial content 

of this contract is some 60 percent.  INMARSA T has issued its Request for Tenders 

to  industry for  the third generation  of satellites at the  beginning of October  1989, 

calling for availability of these satellites in  1993. 

9 

see 8) 

1.2 

EUTELSAT 

14 

EUTELSAT,  the  European  Telecommunications  Satellite  Organisation,  is  an 

intergovernmental  organisation  with  members  from  28  European  countries, 

including  all  member  countries  of  the  European  Conference  of  Postal  and 

Telecommunications Administrations,  the CEPT.  Recently,  Poland and  Romania 

have  become  members ;  discussions  are continuing with  other  Eastern  European 

countries. 

EUTELSAT  provides  and  operates  telecommunications  satellites  for  telephony, 

data  and  video  services  within  Europe,  in  the  Fixed-Satellite-Service  (FSS) 

frequency band.  The EUTELSAT system has undergone the co-ordination process 

outlined above, le.  it has proven that it will not cause significant economic harm to 

INTELSAT. 

In  addition,  Article  XVI  of  the  EUTELSAT  convention  foresees 

technical co-ordination  and "economic  harm"  co-ordination  similar to Article  XIV 

of the INTELSAT convention for satellite systems offering services in Europe. 

While  the  original  rationale  for  EUTELSAT  was  the  provision  of  international 

telephony within Europe, the take-up of this service has proved slow, initially due to 

the  extensive  terrestrial  microwave  networks,  and  latterly  because  of the  growing 

availability  of  fibre  optic  cable.  On  the  other  hand,  a  considerable  market  has 

developed  for  television  distribution  using  the  FSS  frequency  band  rather  than 

frequencies  designated  for  broadcasting.  EUTELSAT now  derives  nearly  75%  of 

its revenues from television distribution. 

The  members  of  EUTELSAT  are  mostly  the  national  Telecommunications 

Organisations10  which  have  been  designated  generally  by  the  member  states  as 

signatories to the Operating Agreement.  Under the terms of this Agreement, it can 

only  rent  space  segment  to  its  signatories.  With  the  exception  of the  European 

Broadcasting Union (EBU), other organisations wishing to set up a  satellite service 

using  EUTELSAT  space  segment  are  obliged  to  purchase  it  from  their  national 
signatory. 

EUTELSAT's turnover in  1989 was  100 MECUs. 

1°  For some smaller non-EC countries, the Governments are signatories such as Monaco, Vatican City, 

Lichtenstein, San Marino, and Malta.  See Footnote 8.  concerning Italy. 

15 

All  Member  States  of  the  Community  are  members  of  EUTELSAT.  The  EC 

Member  States  have  an  investment  share  totalling  88.0  percent.  EUTELSAT's 

other 15 signatories control the remaining 12.0 percent of the investment share.  As 

in  the  other  two  organisations,  each  year  the  investment  share  per  signatory  is 

calculated on the basis of their percentage of traffic carried over the satellites.  The 

satellites for the EUTELSAT second generation are currently being developed by a 

European  consortium,  under  prime  contractorship  of Aerospatiale.  The  first  of 

these satellites has been launched successfully in August 1990. 

An  overview  of European  investment  shares  and  Community  signatories  to  the 

• 

agreements is given in Fig.  1. 

Shareholding of Community Member States and Corflmunity 
Signatories in INTELSAT, INMARSAT, and EUTELSAT 

Figure 1 

ORGANISATION 

INTELSAT 

INMARSAT 

___ .... 

IN-
VEST-
MENT 

0.66 

SIGNATORY1 

REGIE  DES 
TELEGRAPHES 
ET  TELEPHONES 
(RTT) 

IN-
VEST-
MENT 

0.74 

EUTELSAT 

SIGNATORY! 

REGIE  DES 
TELEGRAPHES 
ET  TELEPHONES 
(RTT) 

MEMBER  STATES 

SIGNATORY1 

REGIE  DES 
TELEGRAPHES 
ET  TELEPHONES 
(RTT) 

BELGIUM 

DENMARK 

GENERALDIREKTORATET2  0.65 
FOR  POST-OG 
TELEGRAFVAESNET 

GENERALDIREKTORATET2  2.55 
FOR  POST-OG 
TELEGRAEVSNET 

GENERALDIREKTORATET2 
FOR  POST-OG 
TELEGRAVAESNET 

FRANCE 

FRANCE  TELECOM 

4.41 

FRANCE  TELECOM 

4.23 

FRANCE  TELECOM 

GERMANY 

GREECE 

DEUTSCHE  BUNDESPOST  3.50 
TELEKOM 

DEUTSCHE  BUNDESPOST 
TELEKOM 

2.43 

DEUTSCHE  BUNDESPOST 
TELEKOM 

HELLENIC  TELE-
COMMUNICATIONS  OR-
GANISATION  (OTE) 

-

0.50 

HELLENIC  TELE-
COMMUNICATIONS  OR-
GANI SAT ION  COTE) 

2.93 

HELLENIC  TELE-
COMMUNICATIONS  OR-
GANISATION  COTE) 

IRELAND3 

TELECOM  EIREANN 

0.13 

-

-

TELECOM  EIREANN 

ITALY 

TELESPAZIO 

2.10 

TELESPAZIO 

2.15 

TELESPAZIO 

LUXEMBOURG4 

ADMINISTRATION 
DES  P  & T 

0.05 

-

-

ADMINISTRATION 
DES  P&  T 

IN-
VEST-
MENT 

3.54 

.. 
2.13 

13.36 
--"-

12.95 

0.05 

0.05 

8.29 

3.69 

NETHERLANDS 

PTT  Nederland  NV 

1.14 

PTT  Nederland  NV 

2.55 

PTT  Nederland  NV 

3.84 

PORTUGAL 

COMPANHIA  PORTU-
GUESA  RADIO 
MARCONI 

0.60 

COMPANHIA  PORTU-
GUESA  RADIO 
MARCONI 

0.27 

COMPANHIA  PORTU-
GUESA  RADIO 
MARCONI 

SPAIN 

TELEFONICA 

2.22 

TELEFONICA 

2.00 

TELEFONICA 

UNITED 
KINGDOM 

BRITISH  TELE-
COMMUNICATIONS  PLC5 

12.24  BRITISH  TELE-

13.81  BRITISH  TELE-

COMMUNICATIONS  PLC5 

COMMUNICATIONS  PLC5 

TOTAL  MEMBER  STATES 
INVESTMENT  SHARE 

28.20 
% 

33.66 
% 

1.12 

22.09 

16.90 

88.01 
x 

The Convention is an inter-governmental agreement.  However, member states have designated the 
organisations indicated as signatories to the Operating Agreement on their behalf. 

Telecom Denmark.controls the availability of space segment capacity for telecommunications purposes. 

Ireland is not a member of INMARSAT. 

Luxembourg is not a member of INMARSA T. 

A signatories affairs office has been created as a unit  fully separated from British Telecom's business activities, 
in order to handle requests for satellite capacity. 

2 

3 

4 

5 

17 

The  evolution  of  satellite  communications  in  the  Community  has  been  deeply 

marked by  the  role  of the  telecommunications  organisations  as  signatories  to  the 

international  satellite  agreements, 

the  exclusive  right  of  the  EUTELSAT, 

INMARSA T,  INTELSAT  signatories  to  purchase  and  resell  space  segment 

capacity,  the  implication  of  the  technical  co-ordination  and  "economic  harm" 

procedures  foreseen 

in  the  agreements,  and  the  natural  tendency  of  the 

telecommunications  organisations,  in  their  role  as  signatories  of  EUTELSAT, 

INMARSAT,  and  INTELSAT,  to  utilise  the  space  segment  capacity  of  these 

organisations in the light of their national requirements. 

2. 

The Development of Satellite Systems in Europe 

With the exception of the use of the large international systems with European 

coverage such as the INTELSAT facilities,  the use of satellite communications in 

Europe is a relatively new experience.  Only since 1983 has Europe had its own first 

operational satellite, called ECS-1 or better known by its operational name 

EUTELSAT I-Fl.  At that time Europe had implemented 3 experimental satellite 

systems totalling 6 satellites of which 5 reached orbit.  These were the Franco 

German Symphony 1 and 2,  Italy's SIRIO 1 and 2 and ESA's Orbital-Test-Satellite, 

OTS2. 

By  1983  the United States had considerably more experience, with  development of 

some 25  experimental satellites since the end of the fifties.  American industry had 

already  built  150  operational  telecommunications  satellites  fo~  use  all  over  the 

globe.  After development  of only  six  experimental satellites,  Europe  also  decided 

to  start  building  operational  satellites  to  supply  the  growing  European  market. 

These first  operational satellites were mainly intended for  point-to-point telephony 

communications  and  the  distribution  of television  signals  around  Europe.  More 

than  three  quarters  of  the  capacity  of  these  satellites  is  now  used  for  TV 

distribution purposes. 

From an industry point of view,  the space industry  in  Europe is  catching up,  albeit 

slowly.  Having  manufactured  only  6  telecommunication  satellites  in  the  period 

1980-1984,  in  the years  1985-1989  7  telecommunications  satellites  were  produced 

and  at  present  the  European  space  industry  has  17  orders  with  a  total  value  of 

about 1 billion ECU for the period up to 1994. 

18 

Europe will  have  a  large  amount  of satellite  capacity  available  in  the  1990s.  All 

non-military European  national,  private  and  intra-European  systems  together will 

make  available  a  total  of  24  operational  DBS  (television)  channels  on  the 

Broadcasting-Satellite  Services  (BSS)  satellites  in  1993. 

In  the  Fixed-Satellite 

Services  (FSS)  a  total  of around  380  European  transponder  equivalents11  will  be 

available in  1993  against  about  170  transponder equivalents in  1990.  Not included 

here are the international systems such  as INTELSAT and INMARSAT, and non 

European systems with  European coverage, such  as  the U.S.-based PanAmSat and 

the (planned) ORION satellites and the USSR-based GORIZONT and RADUGA 

systems. 

An  overview  of  current  existing  and  planned  satellite  systems  with  European 

coverage ("footprint") and their planned applications is given in Fig.  2 and 3. 

Main applications are expected  to be television  distribution,  telephony  (mainly for 

extra-Community  traffic),  and  new  applications  (see  chapter III.).  As mentioned, 

EUTELSAT is  deriving  nearly 75  %  of revenues from  television  distribution.  The 

traditional applications  - long-distance trunk telephony and short-term high band 

width  requirements such  as  studio-to-studio television  transmission  - still  account 

for a major, though declining, proportion of international satellite services.  Satellite 

links still account for nearly 60  % of transAtlantic telephony, though this is expected 

to fall  to 30  - 40  %  by  1995  (see chapter III.).  However,  within  Europe,  satellite 

carried voice  telephony accounts  for  only  2 - 3 %  of intra-European international 

and national long-distance calls. 

As  is  shown  by  Figures  2  and  3,  the  European  space  segmerit  has  experienced 

substantial diversification during recent years, which  may be expected to continue in 

the  near  future. 

In  addition  to  the  space  segment  provided  by  the  international 

telecommunications satellite organisations which  will continue to play a  strong role 

and which  currently provide a  major part of the space segment currently accessible 

from  Europe,  a  large  number of new  systems  are entering  the  market,  sponsored 

both  by  the  national  telecommunications  organisations  and  by  other  private 

organisations. 

11  Transponder capacity is taken equivalent to a channel of about 36 MHz.  A single transponder can normally 

carry one television channel or up to about 1700 telephone voice channels. 

Figure 2 

Current and Planned European Civil Satellite Systems 

NAME 

OWNING OR-
GANISATION 

LAUNCH 

MISSION 

NOTE 

EUTELSAT-IF1 

EUTELSAT 

1983 

EUTELSAT-IF2 

EUTELSAT 

1984 

TELECOM  1A 

FRANCE  TELECOM 

1984 

EUTELSAT-IF4 

EUTELSAT 

1987 

EUTELSAT-IFS 

EUTELSAT 

1988 

. 

Telephony,  television  distri-
bution,business  conmunications, 
mobile  conmJnications 

Telephony,  television  distri-
bution,business  conmunications, 
mobile  cormunications 

Telephony,  television  distri-
bution,  business  conmunications, 
etc. 

Telephony,  television  distri-
bution,business  conmunications 

Telephony,  television  distri-
bution,business  cormunications 

ASTRA-1A 

SES-ASTRA1 

1988 

Television  distribution 

TELECOM  1C 

FRANCE  TELECOM 

1988 

Telephony,  television  distri-
bution,  business  conmunications, 
etc. 

FRANCE  TELECOM 

1988 

DBS 

(television) 

TDF1 

TVSAT-2 

TELE-X 

Deutsche 
Bundespost 
TELEKOM 

SWEDISH  SPACE 
CORPORATION 

MARCO-POL0-1 

Bss2 

DFS-1 
KOPERNIKUS 

Deutsche 
Bundespost 
TELEKOm 

1989 

DBS  (television) 

1989 

1989 

1989 

DBS,  small  terminal  networks 
data  and  telephony  services 

-

-

·------

OBS,  Data  broadcasting 

Telephony,  television  dis-
tribution,  data  and 
business  cormunications 

--

OLYMPUS3 

ESA 

1989 

Experimental  conmunications,  DBS 

TDF2 

FRANCE  TELECOM 

1990 

DBS  (television) 

Figure 2 

NAME 

OWNING OR-
GANISATION 

LAUNCH 

MISSION 

NOTE 

DFS-2 

Deutsche 
Bundespost 
TELEKOM 

1990 

Telephony,  television  distri-
bution,  data  and  business 
conmunications 

MARCO-POL0-2 

BSB 

1990 

DBS,  Data  broadcasting 

EUTELSAT  11 
f 1  to  F6 

EUTELSAT 

1990  CF1) 
et  seq 

ITALSAT4 

TELESPAZIO 

1991 

Telephony,  television  distri-
bution,business  ccxmKJnications, 
mobile  cormunications 

Teleconmunications,  data,  and 
business  conmunications 

..,__-~~ 

planned 

F2  to  F6 
planned 

. 

planned 

ASTRA-1B 

SES-ASTRA 

1991 

Television  distribution 

planned 

TELECOM  2A 

FRANCE  TELECOM 

1991 

TELECOM  2B 

FRANCE  TELECOM 

1992 

LOCSTAR 
1  and  2 

HISPASAT 
1  and  2 

SARIT 

ARTEMIS 

LOCSTAR5 
ConsortillTl 

SPANISH  AUTHORI-
TIES/  Telefonica 

RAI 

ESA 

1992 

-~~~-

1992-1993 

--

-

1993 

1993 

Telephony,  television  distri-
bution,  business  conmunications, 
Security. 

-

Telephony,  television  distri-
bution,  business  conmunications, 
Security. 

planned 

planned 

Mobile  conmunications  and 
radiolocation 

planned 

TV  distribution,  DBS,  data 
and  business  conmunications 

DBS 

Experimental  mobile  conmuni-
cations,  data  relay 

- -

planned 

--

planned 

planned 

ASTRA-1C 

SES-ASTRA 

1994 

Television  distribution 

planned 

EUROPE SAT 
F1  to  FS 

KEPLER 

EUTELSAT 

Deutsche 
Bundespost 
TELEKOM 

1995 
et  seq 

1996 

DBS 

-

planned 

OBS,  Business  and  data 
c011111Unications,  TV  distribution 

planned 

Figure 2 

NAME 

OWNING OR-
GANISATION 

ASTRA-2  Series 

SES-ASTRA 

OFS-3 

Deutsche 
Bundespost 
TELEKOM 

LAUNCH 

MISSION 

NOTE 

.... 

... 

OBS,  small  terminal  systems, 
mobile 

telecormunications  and 
business  cormunications 

planned 

planned 

EUTELSAT-III 

EUTELSAT 

1997  et  seq. 

telephony,  television  dis-
tribution,  business  cormuni-
cations,  mobile  conrrunications 

planned 

1 

Note 

This  list  does  not  include  a  number  of  progranmes  which  have  been  announced  but  for  which 
launch  dates  are  not  known  :  ATLANTIC  satellite  (Hughes  Conrrunications  /  J.  Stafford)  ; 
VIOEOSAT  (France  Telecom)  ;  F-SAT  (France  Telecom)  ;  APEX  (France  Telecom).  Nor  does  it 
contain  highly  elliptical  orbit  systems  that  are  in  early  study  phases  (ARCHIMEDES  /  ESA, 
SYCOMORES  I  France) 

SES shareholders include Luxembourg, Belgian, German, and Scandinavian banking and investment interests, 
and British television interests. 

2 

3 

4 

5 

The BSB Consortium currently includes as  major shareholders : Granada, Pearson, Bond Corporation, 
Chargeurs SA, Reed International. 

Capacity used by BBC Enterprises, RAI, EUROSTEP Association, Telecommunications Administrations, 
Research Institutes, etc. 

ITALSAT will use new frequency bands at  Ka-band (20-30 GHz) to improve performance to small ground 
terminal systems and is a pre-operational system. 

The Locstar consortium includes as shareholders CNES, MA TRA, GEC-Marconi, Daimler-Benz, etc. 

Non-European satellites 
used for services with European coverage 

Figure 3 

NAME 

OWNING OR-
GANISATION 

LAUNCH 

MISSION 

NOTE 

INTELSAT  V1 
Generation 

INTELSAT  VI 2 
Generat.i on 

MARISAT  F1-F2 

INTELSAT 

see  notes 

Telephony,  television  distribu-
tion,  business  and  data  services, 
(mobile  leased  by  INMARSAT) 

INTELSAT 

see  notes 

Telephony,  television  distribu-
tion,  business  and  data  services 

INMARSAT 
Consortiun 

MARECS-82 

ESA 

PANAMSAT 

PANAMSAT/ 
ALPHA-LYRACOM 

1976 

1984 

1988 

mobile  leased  by 
INMARSAT 

Maritime,  aeronautical,land 
mobile  (leased  by  INMARSAT) 

Video  and  business 
Services 

GORIZONT  Series3 
and  REDUGA 

INMARSAT-II 
series 

INTERSPUTNIK 

see  notes 

Telephony,  telegraphy,  tele-
vision  and  sound  broadcasting 

INMARSAT 

1990  et  seq. 

maritime,  aeronautical 
land  mobile 

INTELSAT  I( 

INTELSAT 

1992 

Television  distribution 
business  and  data  services 

. 

in  orbit 
spares 

planned 

planned 

ORION4 

INMARSAT-III 
series 

INTELSAT  VII 
Generation 

ORION 

1993 

Video  and  business  services 

planned 

INMARSAT 

1994  et  seq. 

maritime,  aernoautical 
land  mobile 

planned 

INTELSAT 

see  notes 

Telephony,  television  distribu-
tion,  business  and  data  services 

planned 

Note 

This  list  does  not  include  announced  progranmes  for  which  dates  are  not  firmly  known, 
such  as  the  IRIDIUM  progranme  (sponsored  by  MOTOROLA)  and  ORBCOMM  progranme  (Orbital 
Conmunications  Ltd). 

2 

3 

4 

Currently, 6 satellites of the INTELSAT-V generation are used for intra-Eurof.ean services  - either television 
distribution (F4,  F6, Fl, F11) or Business and Data Communications (F2, F13  . 

One satellite of the INTELSAT-VI generation is  now operational, and a second is about is to become 
operational. 

Launch dates, capacity, coverage and further details of the GORIZONT and REDUGA satellites are not 
published, though several are known to be in orbit.  They are owned by the USSR and leased to lntersputnik 
the members of which are, Afganistan, Bulgaria, Cuba, Czechoslovakia, Germany, Hungary, North Korea, Laos, 
Mongolia, Poland, Romania, the USSR, Vietnam, and Yemen. 

The ORION system, although derived from a licence awarded to a U.S.  company, ORION Networks, to 
provide competing trans-Atlantic services to INTELSAT, is expected to have major European investment when 
its financing is completed. 

3. 

Current 
Positions and Frequencies 

International  Coordination  Mechanisms:  Orbital 

23 

A  major  influence  on  satellite  communications  in  Europe  are  the  international 

coordination  procedures  with  regard 

to  orbital  positions  and  frequencies 

administered by the International Telecommunications Union (ITU). 

Any discussion of the future development of the sector in the Community must take 

careful account of these procedures and the international commitments of Member 

States in this area. 

Since  194 7  the use  of radio  frequencies  is subject  to examination in  order to  limit 

harmful  interference  and  to  ensure  the  correct  use  of frequencies  in  accordance 

with  the  internationally  agreed  Table  of  Frequency  Allocations  in  the  Radio 

Regulations. 

The  International  Frequency  Registration  Board  (IFRB),  a 

permanent  body  of  the  ITU,  has  been  given  the  role  to  act  as  the  body  which 

administers  the  internationally  agreed  frequency  allocation  and  orbit  allotment 

plans  and  the  related  criteria  for  coordination  as  laid  down  in  the  Radio 

Regulations.  The aim  is  to  come to  a  globally  acceptable,  effective,  equitable and 

economic utilisation of the radio frequency spectrum and the geostationary satellite 

orbit.  The IFRB receives about  1200 notices/informations per week which  need to 

be examined as required under the Radio Regulations and related agreements. 

The aim is to provide, to the maximum possible extent, and on a global scale; 

guarantees, in general, for  the interference free  operatio~ of radio stations, 

these  being  space  stations  or  earth  stations,  by  giving  international 

recognition or protection; 

mechanisms  for  international  coordination  of  radio  networks  (including 

satellite  networks)  for  which  the  high  initial  investment  requires  pre 

operational agreements between users; 

guarantees  regarding  equitable  access  to  the  spectrum  and  the  geo 

stationary satellite orbit to all nations. 

24 

The provisions of the Radio Regulations can only be modified by the specific world 

wide  or  regional  conferences  convened  by  the  ITU  which  are  called  World  (or 

Regional) Administrative Radio Conferences (W ARC or RARC).  The convening 

of such  conferences  requires  detailed  technical  preparation,  often  aided  by  study 

work  undertaken by  two  other  ITU bodies : the  International  Radio  Consultative 

Committee (CCIR)  and  the International  Consultative  Committee for  Telephony 

and Telegraphy ( CCITT). 

As  mentioned  earlier,  for  the  purpose  of  different  specific  technical  application 

requirements and the assessment of resulting possible interferences,  the frequen9' 

allocations  in  the  Radio  Regulations  for  space  services  are  divided  into  various 

services, 

the  most 

important  being 

the  fixed,  mobile,  broadcasting  and 

radiodetermination satellite services. 

For the fixed  satellite services, an allotment plan was developed during the WARC 

conferences  of  1985  and  1988  using  some  of  the  4/6  and  11/14  GHz12  band 

frequencies.  This  plan  allots,  inter  alia,  800  MHz  of bandwidth  within  specified 

frequency  bands  on  a  pre-assigned  country-by-country  basis  and  provides  each 

country  with  at  least  one  orbital  position  within  a  predetermined  arc.  These 

national allotments consist of a list of parameters which identify the allotment.  For 

national systems the plan provides for a set of procedures to be followed  in order to 

coordinate  the  national  satellite  network  planned.  This  WARC-88  plan  provides 

for allotments for existing systems and for  those systems (including regional) which 

have  been  advance  published  before  May  1988,  like  the  regional  EUTELSAT 

system.  The  second  part  of  the  plan  provides  for  some  flexibility  in  the  fixed 

satellite frequency band through  agreed  procedures for  the non-planned  frequency 

bands  through  so-called  Multilateral  Planning  Meetings  (MPM's)  in  which  future 

sub-regional  or  regional  systems  can  be  coordinated.  These  MPM's  are  a 

formalisation  of  the  coordination  process  to  ensure  equitable  access  to  the 

remainder  of the  frequencies  and  the  geo-stationary  orbit.  However,  despite  the 

proviso  of  these  MPM's,  the  establishment  of future  pan-European  services  on 

(sub-)regional  systems  is  thought  still  to  present significant  difficulties  due  to  the 

complexity and the length of the procedures. 

Prior  to  the  described  developments  for  the  fixed  satellite  services,  m  1977  a 

12  The main frequency bands used for satellite communications are in the ranges 1- 2 GHz (L-band), 2- 3 GHz 
(S-band), 3 - 7 GHz (C-band), 7 - 8 GHz (X-band), 10 - 19 GHz (Ku-band), and 17 - 31 GHz (Ka-band; 
experimental use mainly).  The bands mainly used in Europe are those at Ku-band for intra-European traffic, 
with Ka-band now being used for experiments (OLYMPUS, DFS-Kopemikus, ITALSAT), C-band for 
transcontinental use on INTELSAT trunks and L-band for mobile communications via INMARSAT. 

25 

similar, but far  more rigid,  approach was taken in the establishment of an allotment 

plan  for  the  broadcasting satellite  services.  The  W ARC-77  Broadcasting  satellite 

plan  strictly  regulates  and  allocates  precise  orbital  slots  and  frequencies  on  a 

country-by-country  basis  for  the  provision  of  direct  broadcast  satellite  services 

(DBS) in an agreed exclusive band in the 12 GHz range.  The plan was developed to 

satisfy  the  requirements  and  concerns  that  existed  in  1977  and  is  based  on 

presumptions  which  have  been  overtaken  by  technological  development  (see 

chapters III. and IV.).  Amendments to the 1977 plan concept were proposed during 

t~e RARC-83  conference  but  that  concerned  only  the  region  encompassing  the 

Americas.  These improvements on  the  W ARC-77  plan criteria have  subsequently 

been inserted in the Radio Regulations under the terms of the RARC-83. 

The improvement of the technology and the rigidity of the W ARC-77 plan have led 

to use, in Europe, of the fixed-satellite services frequency bands for the provision of 

TV  distribution  services  which  can  also  be  received  by  small  home  dishes  (see 

chapters III.  and IV.).  The plan is  currently  of substantial concern  to  some  of the 

European space segment providers who  plan to provide HDTV services directly to 

the  European  audience,  and  for  which  the  use  of higher  power  DBS  satellites  is 

inevitable. 

The  procedures  for  coordinating  mobile-satellite  networks  are  based  on  the 

WARC-79  and  WARC  MOB-87 

results,  which  have  subsequently  been 

incorporated in  the Radio Regulations. 

In  each  of  the  above  cases  the  procedural  ways  to  coordinate  and  agree  new 

satellite systems have a certain commonality and the same objective.  The details of 

the procedural  routes  however  are considerably  different.  The common  elements 

can be grouped in  three different steps as follows: 

1. 

Advance  publication  of  intent  and  publication  of  the  available  technical 

specifications of the satellite system in question on which the potential need 

for coordination can be assessed. 

2. 

The resulting coordination, or agreements with other administrations which 

are  affected  by  e.g. 

the  intended  coverage  overspill  of a  satellite  system. 

Obviously,  for  systems  which  are  within  plan  criteria,  no  coordination  is 

required. 

26 

3. 

After completion of the coordination (or establishment that coordination is 

not required),  notification  of frequency  usage  to  the IFRB for  inclusion  in 

the  so-called  Master  Frequency  Register,  so  that  these  systems  can  claim 

protection from harmful interference from future systems. 

For  all  intended  satellite  systems,  a  set  of  procedures  needs  to  be  followed  in 

accordance  with  the  plans  and  regulations;  each  with  their  own  specified  time 

periods  in  order  to  achieve  timely  coordination  before  the  system  becomes 

operational.  For most  of the  national  systems which  are conceived  in  accordance 

with  the  original  plan  design  parameters,  the  coordination  process  will  not  be 

required as these systems should be within plan criteria. 

However, for other satellite systems, mostly (sub)-regional systems, which are not in 

accordance with  original plan design  parameters and therefore not within  the plan 

criteria,  the  coordination  procedures  with  all  affected  countries  need  to  be 

undertaken.  These  procedures  are  time  consuming,  very  complex,  affect  a  large 

number of administrations and  also  depend  on  the cooperation  and  willingness  of 

the affected administrations to come to an agreement.  Certainly in  the case of sub 

regional or regional satellite networks in  Europe, the number of administrations to 

be consulted can be considerable  - in  the case of the Community Member States, 

both  between  any  of them  and  any  other  neighbouring  countries  affected  by  the 

planned  satellite  system.  For  multi-service  satellite  systems  the  procedures  are 

particularly complex as at least two  and sometimes three sets of procedures need to 

be followed. 

The  current  situation  with  regard  to  the  coordination  of  frequencies  and  the 

administration of the orbital source is therefore characterised by: 

the  Community  Member  States  acting  individually  with  regard  to  the 

international  bodies  responsible,  within  a  number  of  Member  States  the 

national  telecommunications  organisations  having  been  mandated  by  the 

Member States  to  act  on  their  behalf in  these  bodies,  while  in  others  the 

respective ministry represents the Member State13; 

non-existent  or  only  loose  coordination  among  the  Member  States  in  the 

framework of the European Conference of Postal and Telecommunications 

Administrations (CEPT), though this is now changing (see Chapter IV); 

13 

In the case of EUTELSAT the coordination procedures with regard to the ITU are carried out by the French 
Administration;  in the case of INTELSAT, by COMSAT International (U.S.); and in the case of 
INMARSAT, by British Telecom. 

27 

non-existence of instruments at the Community level to ensure coordinated 

positions with  regard  to  these  bodies  - and  therefore with  regard  to  the 

management of the orbital resource and associated frequencies. 

The current  reform of frequency coordination within  the CEPT,  under the  impact 

of Council  Resolution 90/C 166/02 of 28  June  199014,  with  the creation of the new 

European 

Radiocommunications 

Committee 

and 

the 

European 

Radiocommunications Office provides the prospect  of substantial strengthening of 

cooperation in the frequency field. 

4. 

Current Regulatory Conditions in the Community 

The regulatory situation in the Community can best be analysed in terms of 

provision  and  operation  of the  earth  segment,  including  both  receive-only 

and transmit/receive earth stations; 

the right  to use/provide service and/or the licensing conditions required  to 

use/provide service via the space segment; 

access  to  the frequencies  and geostationary satellite orbit,  and provision  of 

space segment capacity. 

An overview of the situation in  the Member States is  given  in  Fig.  4.  Overall,  the 

situation in  the Member States can be characterised as follows: 

4.1 

Earth Segment 

With  regard  to  receive-only  terminals  the  Green  Paper  on  telecommunications 15 

stated that "given  the trend in  satellite communications towards point-to-multipoint 

broadcasting applications for closed  user groups, the regulatory regime for  receive 

only  earth  stations  (ROES)  for  satellite  communications  should  be  assimilated  to 

the regime for telecommunications terminals and TV receive-only satellite antennas 

and fully opened to competition." 

14  O.J.  C 166 of 07.07.1990, p.  2.  Council Resolution of 28 June 1990 on the strengthening of the Europe-wide 
cooperation on radio frequencies, in particular with regard to seivices with a pan-European dimension. 
15  Green Paper on the development of the common market for telecommunications seivices and equipment, 

COM(87) 290 of 30.06.1987. 

28 

Subsequently, Directive 88/301/EEC16  implemented  this position for  "receive-only 

satellite stations  not connected  to  the public network  of a  Member State".  Fig.  4 

shows  the  current status.  The  majority  of Member States  have  implemented  this 

position17•  However,  a  number  of Member States continue  to  request  licenses  to 

operate such equipment. 

The ownership  and operation  of transmit/receive terminals  has been  traditionally 

associated in  the Member  States with  the  regulation of the  up-link/ down-link and 

therefore was restricted, under exclusive or special rights to those who had the right 

to  operate  up-links,  both  as  regards  provision  and  operation  of  equipment 

(compare Fig. 4). 

However,  a  number  of  Member  States  are  currently  moving  towards  replacing 

exclusive  or  special  rights  in  this  area  by  a  system  of type-approval  and  licensing 

regimes (see below). 

4.2 

Right to use/provide a service and licensing/type-approval 

As shown by Fig. 4,  in many Member States, the private operation of satellite-based 

services is  not permitted at all.  Where it  is  permitted, the question of the terms of 

licences  for  such  services  arises.  The right  to  offer  satellite services  is  still  often 

granted on a discretionary basis by Member States' governments. 

For receive-only earth stations,  a  relatively liberal approach has been developed in 

the majority of Member States, under which  receive-only earth stations are treated 

under the same regime  as other terminal equipment (see above).  But even  in  this 

area,  the separation of regulation  from  operations is  still by  no  means complete in 

relation to the approval and (where applicable) licensing procedures. 

Traditionally,  Member States have confined the right  to  transmit satellite (up-link) 

signals  to  the  telecommunications  organisations.  However,  more  recently,  a 

number of Member States have introduced  - or are considering  - liberalisation of 

access  to  the  up-link,  such  as  the  UK  for  one-way  services,  and  the  Federal 

Republic  of  Germany  for  one-way  and  two-way  services,  under  appropriate 

licensing  regimes,· including  liberalisation  of transmit/receive  terminals  (compare 

Fig.  4).  In  the  Federal  Republic  of Germany  private  users  and  service  providers 

16  Commission Directive of 16May1988 on competition in the markets for telecommunications terminal 

equipment (88/301/EEC), OJ. L 131 of27.05.1988, p.  73. 

17  Status 1st October 1990. 

29 

will  in  the future  be allowed  to  operate hub-stations and transmit/receive stations 

under a licensing regime.  In the United Kingdom,  7 licences have been granted to 

operate  one-way  satellite  services  including  the  up-link,  in  addition  to  the  two 

organisations,  BT  and  Mercury,  which  have 

responsibility 

for  network 

infrastructure. 

Regulatory Environment of Satellite Communications in Community 
Member States 

Figure 4 

COUNTRY 

RECEIVE  ONLY  TERMINALS 

TELEVISION 

OTHER 
SERVICES 

BELGIUM 

/I/Ill/I/I/ 

/I/Ill/Ill/ 

HUB  STATIONS 
AND  THE  PROVISION 
OF  ONE-WAY-SERVICES1 

TRANSMIT/RECEIVE  TERMINALS 
HUB  STATIONS 
AND  THE  PROVISION 
OF  T\IO-WAY  SERVICES2 

NATIONAL 

INTERNATIONAL 

NATIONAL 

INTERNATIONAL 

DENMARK3 

/I/I/Ill/// 

/Ill/////// 

/ / / / / - /Ill/ 

FRANCE 

/////Ill/// 

GERMANv4 

///////////  ///////Ill/ 

llll///ll//  Ill/Ill/I/I 

Ill/Ill/Ill 

II/I/Ill/II 

GREECE 

IRELAND5 

ITALY 

LUXEMBOURG6 

NETHERLANDS7 

PORTUGAL8 

SPAIN 

UK9 

11111/ 

llll//llll/ 

///////Ill/ 

/ / / / / - /Ill~  / / / / / / -

I l l / / -

///II/Ill// 

//II/Ill/// 

/Ill 

Ill/I 

Ill/I 

/ / / / / -

//I/Ill/II/  Ill//////// 

/Ill/Ill/I/ 

I/Ill/II///  Ill/II///// 

l  Private  supply  without  licencing,  type  approval  or  co-ordination. 

Provision  exclusive  to  telec0111T1Unications  organisation 

Private  supply,  subject  to  licencing,  type  approval  or  co-ordination 

1 
2 

3 

4 

5 

6 
7 

8 

9 

Provision of one-way services refers to the provision and operation of the uplink. 
Where two-way services are concerned, provision and operation covers hub station and remote transmit/receive 
terminals. 
Receive only terminals are subject to type approval and licence for the establishment and operation.  The 
network operator has the exclusive right to provide bearer services (uplink/downlink), whereas private 
organisations can provide value-added one-way services. 
It is under consideration to delete the individual authorisation for receive-only terminals so that they will only 
be subject to type approval.  The provision of one or two way services has been liberalised, subject to licencing. 
Telecom Eireann has exclusive rights in the provision of national services and is licensed to provide 
international services.  However, competition in  the provision of national or international services is not 
precluded by legislation. 
Terminals in the Fixed Satellite Service are subject to licensing without type approval or coordination. 
P'IT Nederland NV has the "right of first  refusal" to provide fixed  uplink earth stations for one-way or two-way 
services.  If the P'IT is not willing or able to provide, within a reasonable time and on reasonable conditions, a 
system which is equivalent to what the customer wants, the latter may ask the Telecommunications and Post 
Department of the Ministry of Transport and Public Works for a licence to establish, maintain and/or operate 
his own fixed uplink earth station. 
TVRO terminals larger than 3m in diameter require a licence.  Legislation is under preparation for the 
liberalisation of the market of receive only terminals for other services. 
No individual licence is needed for receive only terminals~ they are covered by a class licence which is available 
to all without the need to register or to pay a f ec or to be individually co-ordinated.  One-way services are 
subject to licencing for operation within Europe (meaning the European Community, EFTA and other 
European countries as broadly defined). 

4.3 

Access to - and provision of - space segment capacity 

31 

To obtain  space segment  capacity,  the  users  or  satellite  service  providers  must  in 

general lease capacity from an existing satellite operator.  In the European context, 

as  mentioned, 

the  main  relevant  operators  are 

the 

international  satellite 

organisations INTELSAT and INMARSA T and the European satellite organisation 

EUTELSAT; and national or private satellite operators (space segment providers), 

which  provide  capacity  on  systems  such  as  Telecom-1-2,  DFS  Kopernikus-1  and 

BSB  (refer  to  Fig.  2).  Given  that  the  Member  States'  telecommunications 

organisations are the Signatories to the  international satellite organisations within 

each  Member  State18,  this  means  that  a  potential  user  requiring  space  segme~t 

capacity is  generally obliged  to buy this from  the telecommunications organisation. 

In many  cases,  the  telecommunications  organisation  is  a  competitor  or substitute 

provider of the service in question.  This  implies an inherent conflict of interest for 

the telecommunications organisation. 

However,  more recently,  there are first  signs  of the  establishment of the principle 

of separation of regulatory  and  operational  responsibilities also with  regard  to  the 

satellite  communications  activities  of  the  telecommunications  organisations,  both 

concerning the coordination  of frequencies  as  well  as  the coordination procedures 

within the international telecommunications satellite organisations. 

Recognition of this principle has led in  the United Kingdom  to the establishment of 

a  separate  'Signatory  Affairs  Office',  separate  from  British  Telecom  operational 

and commercial staff, to manage UK access to the space segment. 

The  operating  agreements  of  the  international  satellite  organisations  give  the 

signatories  the  right  of exclusive  resale  of space  segment  capacity.  However,  as 

mentioned,  the  European  Broadcasting  Union  (EBU)  has  been  permitted  to 

purchase  space  segment  capacity  directly  from  EUTELSAT  for  applications  like 

Eurovision. 

18  As mentioned, in Italy a special organisation (TELESPAZIO) has been created for this purf>ose. 

32 

Given  the  national  nature  of  the  signatories  and  their  interests  as  national 

telecommunications  organisations, 

the  current  system  also  has  as  a  major 

consequence  that  EUTELSAT cannot  develop  independent commercial strategies 

for establishing trans-European satellite services.  The Signatories tend to plan and 

direct  the  operation  of  the  organisation  mainly  as  a  function  of  their  national 

telecommunications  requirements.  As  a  consequence,  EUTELSAT  has  mainly 

developed  in  a field,  where it enjoys  more commercial freedom,  i.e.  in  the field  of 

the distribution of television services. 

As  regards  the  provision  of space  segment  capacity,  potential  operators  of space 

segment (satellite  systems)  are subject  to  the coordination procedures with  regard 

1 

to  frequencies  and  orbital  positions  set  out  previously,  and  to  the  coordination 

procedures  with 

the  international 

telecommunications  satellite  organisations 

discussed further in chapter V.  Both procedures are initiated by  Member States at 

the national level. 

5. 

Summary 

Satellite communications have developed  in  an  international environment which  is 

characterised  both  by  the  emergence  of  the  international  telecommunications 

satellite  organisations 

INTELSAT  and 

INMARSAT  and 

the  European 

telecommunications  satellite  organisation  EUTELSAT  as  well  as  by 

the 

coordination  procedures  of  the  International  Telecommunications  Union  in  the 

field  of  frequencies  and  the  management  of  the  orbital  resou_rce.  This  entails 

important international commitments for  the  Member States which  must  be taken 

into account iQ  any analysis of the sector. 

While the international satellite organisations will continue to provide a major part 

of the  European  space  segment  and  INTELSAT  and  EUTELSAT  account  for  a 

major  percentage  of satellite  capacity  currently  accessible  from  Europe,  a  large 

number  of new  actors  are  entering  the  field  and  a  large  number  of new  satellite 

systems  are  emerging  which  will  substantially  enlarge 

and  diversify 

- the 

European space segment over the coming years. 

The current regulation of earth segment  and space segment  in  the Member States 

still reflects,  in  most cases,  the situation  in  the sixties and seventies where the only 

technically  and  economically  feasible  application  of satellite  communications  was 

their use as an additional transmission path to carry international or national long 

distance traffic for  telecommunications organisations.  The current situation in  the 

33 

Member  States  is  still  characterised  by  substantial  restrictions  on  supply  and 

operation  of satellite  terminals  (earth  stations)  and  access  to  the  space  segment 

(satellite  capacity),  as  well  as  a  lack  of  harmonisation  of  procedures.  Current 

regulation  still  does  not  integrate  basic  principles  of modern  telecommunications 

regulation in  a  multi-actor environment,  such  as  the clear separation of regulatory 

and operational functions. 

However,  under  the  impact  of  technological  and  market  trends,  there  are  now 

substantial changes under way in  a number of Member States which point towards a 

more  open  environment,  necessary  for  the  full  use  of the  new  potential  and  the 

development of Europe-wide satellite systems and services. 

. III.  TECHNOLOGICAL AND MARKET DEVELOPMENTS 

34 

The nature of the overall market for satellite services is  in  a  state of rapid change. 

New applications are emerging while older ones are being partially superseded. 

The 

traditional  main 

telecommunications  application  of 

satellites 

intercontinental telephony and studio-to-studio television programme transmission 

- .  is  not  likely  to  grow  rapidly  in  future,  due  to  the  low  cost,  high  capacity  and 

quality of the new  fibre  optic cables coming online on  major  routes.  While in  the 

recent past satellite-based voice telephony via the INTELSAT system accounted for 

nearly  60  %  of trans-Atlantic  traffic,  the  share  of traffic  dropped  dramatically  in 

1990  with  the  opening  of the  TATS  and  PTAT  trans-Atlantic  optical  fibre  optic 

cables. 

At the same time, developments in both ground and space segment technology have 

created the possibility  for  new  business  services,  notably  based  on small  terminals 

that  can  be  located  at  users'  premises  which  can,  given  the  right  regulatory 

conditions, ensure full use is made of the satellite capacity which will be available. 

In addition,  the use of satellites for television transmission directly to users is set to 

grow with  the advent  of higher powered satellites and  new  transmission techniques 

such as MAC and its planned successor, High Definition (HD) MAC. 

This  chapter  will  focus  on  the  emerging  implications  of recent  technological  and 

market  trends  and  those  over  the  coming  decade.  These  trends  must  be  major 

considerations 

regarding 

the 

future 

regulatory  environment  of  satellite 

communications in the Community. 

Europe  saw  the  development  of a  series  of experimental  satellite  programmes  in 

the  early  1970s  which  resulted  in  the  1980s  in  the  development  of  an  initial 

generation of operational European  satellites  (EUTELSAT-I series,  TELECOM-I 

series,  DFS-Kopernikus).  These  satellites  were  mainly  designed  to  facilitate 

telephony interconnection and videodistribution. 

35 

In  the  1970s  and  early  1980s,  satellite communications  were  regarded  as  a  direct 

substitute  for  terrestrial  long-distance  telephony 

mainly  international 

transmission  links.  The  single  concept  of  "break-even  distance"  was  used  to 

determine  whether  or  not  satellites  were  suitable  for  a  given  application.  This 

criterion  neglected  the  intrinsic  advantages  of  satellites  over  terrestrial  systems: 

their  widespread  geographical  coverage  and  their  ability  to  assign  capacity 

dynamically,  allowing  the  immediate  deployment  of networks  and  services  over  a 

wide  area.  Satellites  are  thus  ideal  for  providing  new  or  specialised  services, 

e.specially to peripheral or less-favoured regions.  Market developments suggest that 

the  future  role  of  satellites 

in  Europe  will  be  to  complement  terrestr.ipl 

communications  systems:  there  are  few  services  for  which  both  would  be  equally 

suitable and could therefore be regarded as competing technologies. 

The  early  experiences  with  these  satellite  systems  and  the  ongoing  advances  of 

technology have led to the development of more sophisticated satellites such as the 

TV-SAT/TDF  Direct-Broadcasting  Satellites  (DBS),  and  the  telecommunications 

satellites  of  the  EUTELSAT-II  series  and  TELECOM-II  series  currently  under 

development.  But  it  is  only  now  that  satellite  communications  technology  is 

entering full  maturity and that the experience gained and  the technology  developed 

are  being  used  to  define  new  generation  satellite  communications  systems  which 

will satisfy the Community's needs for  satellite services within  the overall envelope 

of telecommunications development. 

The following  sections analyse developments  in  technology  and  the various market 

sectors and  illustrate the  increasing  diversification  of satellite services  and  service 

providers. 

Technological progress  now allows  substantially more diversified configurations for 

purposes other  than  simple  alternative  transmission  paths for  the  network.  These 

configurations  can  be  safely  operated  by  service  providers  other  than  the 

telecommunications  organisations,  once  appropriate  regulatory  safeguards  have 

been established. 

While  traditional  telephony  services  and  entertainment  broadcast  services  still 

account  for  90%  of satellite communications  revenues  in  the Community,  the  new 

business  services  such  as  point-to-multipoint  one-way  and  interactive  two-way 

systems  and  the satellite  news  gathering  (SNG)  systems  -

the collection  of news 

and  data  from  multiple  points 

show  major  growth  potential  if  regulatory 

conditions are adjusted to allow their development. 

36 

1. 

Space Segment Development 

The  technological  changes  taking  place  in  the space  segment  are  the  basis  of the 

growing versatility of use and diversification of satellite services.  The greater power 

and  improved  antennas  of  modern  satellites  allow  the  earth  stations  to  be 

correspondingly smaller  - a  major factor  in  the increased  opportunities of use of 

satellite  technology. 

Improved  frequency  use  and  management  techniques  have 

increased the effective available bandwidth; and the working life of satellites has at 

least doubled. 

1.1 

Space Technology 

The technology for  spacecraft antennas has  evolved  rapidly during the last decade. 

As a  result of the increasing scarcity of spectrum and crowding of the geostationary 

orbit new ways have been found  to re-use frequencies by means of greater aperture 

efficiency  and  multiple  spot  beam  operation  (a  technology  by  which  a  satellite 

antenna  emits  several  narrowly  focused  beams  designed  to  reach  a  number  of 

relatively  narrow circumscribed "spots"  on  the ground  rather  than  covering all  of a 

certain geographical area).  Pressure to  improve frequency  utilisation will  continue 

over the coming decades. 

Direct  interconnection  of  satellites  and  clusters  of  satellites  by  means  of 

intersatellite links  (ISL)  is  currently  foreseen  in  order to  further  increase  network 

flexibility  and interconnectivity.  Cluster space configurations, which  are seen from 

the ground as though positioned at a single orbital location, allow· rational growth of 

the  satellite  networks. 

Interconnections  between  satellite  networks  would  extend 

the access coverage of networks while  avoiding double-hops,  and at  the same time 

permit interconnection of services.  It  could  also  increase ground  station  elevation 

angles  to  overcome  coverage  problems.  Development  of optical  communications 

technology for  satellites has started in  Europe within  ESA's research  activities  and 

the  first  optical  satellite  interconnection  link  will  be  tested  in  orbit  in  the  early 

1990s. 

More  recently  plans  are  emergmg  to  use  satellites  outside  the  geostationary 

positions  in  near  earth  orbits,  establishing  broad  coverage  by  fully  using  the  new 

methods of direct inter-space communication within large systems of satellites, or in 

highly  elliptical  orbits  to  take  advantage  of  the  higher  elevation  angles  of  such 

systems.  This technique is  expected  to develop  during the nineties at a  world  level 

and will manifest itself foremost in the mobile communications area. 

1.2 

Use of New Frequency Bands 

37 

The  congestion  of  the  frequency  bands  and  the  increasing  pressure  for  more 

bandwidth allocations to various services has led  to  the development of 10/20 GHz 

and  20/30  GHz  technology.  Both  ESA's  experimental  OLYMPUS  satellite  and 

DFS/Kopemikus  (Germany)  already  carry  communications  equipment  for 

experimentation with these new bands.  ITALSA T will  be the next satellite carrying 

Ka-band as well as 40/50 GHz experimental communications equipment. 

The use  of the 20  - 30  GHz band  permits,  in  principle,  transmissions  to  and  from 

very  small  user  terminals  and  is  therefore  interesting  for  direct  user  applications 

such as business services including video conferencing. 

Because  of 

the  bandwidth 

requirements,  wideband  High-Definition  TV 

transmissions are also expected  to  take place in  the 20/30 GHz band in the future, 

although  in  the near  term the  narrowband  HDTV  (HD-MAC) co.uld  be provided 

on the existing Ku-band frequencies of 12/ 17 GHz. 

1.3 

Increase in Lifetime 

It  is  expected  that  the  overall  lifetime  of  satellites  will  continue  to  increase  to 

possibly  20-25  years  in  the  future  with  the  use  of very  large  scale  integration  in 

satellite  communications  equipment,  electric  propulsion,  Ka- and  Ku-band  power 

transistor transmitters, more efficient solar arrays etc. 

2. 

Earth Segment Development 

Based  on  the  growing  sophistication  of  space  segment  technology,  continuing 

developments in  earth station equipment,  above all  in  more efficient antennas and 

more sensitive receivers,  there has been a dramatic decrease in  the size and cost of 

ground  stations,  be  it  for  telephony  and  television  distribution,  or  for  business 

communications. 

38 

While  the  first  generation  of satellite  earth  stations  were  large  installations  with 

antenna diameters of about 30  meters and with  only  one or a very limited number 

of  stations  per  country,  connected 

to  and  seen  as  part  of  the  public 

telecommunications 

infrastructure,  and  giving  access 

to 

the  satellites  of 

INTELSAT,  and, later, also  to the satellites of INMARSA T  and EUTELSAT, this 

situation has  now changed  dramatically.  New  earth  stations are now available for 

specific user applications, with antenna diameters of 0.5  - 2.5  meters and which can 

be installed under user control directly on user premises. 

The  development  has  led  in  particular  to  the  emergence  of VSA T  ("Very  Small 
• 
Aperture Terminals") based networks,  albeit in Europe on a very limited basis due 

to the restrictive regulatory provisions19. 

For  the  particular  case  of  Direct  Broadcasting  by  Satellite,  for  which  when 

originally  conceived  only  'high  power'  satellites  were  considered  suitable,  the 

increased  sensitivity  of  low  noise  receivers  has  enabled  reception  of  television 

signals  from  'medium  power'  TV  distribution  satellites  such  as  ASTRA  and 

EUTELSAT,  directly  by  domestic  units  and  with  reasonable  quality  with  dish 

diameters  as  low  as  60  cm.  This  has  led  to  a  blurring  between  those  services 

defined  as  Broadcasting-Satellite Services  (BSS)  according  to  the  definitions  used 

internationally under  ITU  regulations,  and  broadcasting  applications  operating  in 

the framework of Fixed-Satellite Services (FSS). 

Although future  developments are not  expected  to  be as  spectacular  as  during the · 

last  decade,  it  is  foreseen  that  new  technologies  will  still  offer  substantial 

improvements  in  terms  of both  costs  and  performance  such  that  the  use  of small 

terminals for all satellite services will become increasingly more interesting. 

3. 

Traditional Services 

These services  include  traditional  "point-to-point"  voice,  voiceband  data  and  data 

transmission,  using  satellite  communications  basically  as  an  alternative  network 

transmission  path.  For  such  services,  satellite  transmission  is  generally  more 

expensive 

than 

terrestrial 

transmission  for  short, 

intra-European  distances. 

Originally  conceived  as  the  main  satellite  telecommunications  application,  it  has 

turned  out  that  on  economic  grounds  it  is  only  justifiable  for  "edge-to-edge" 

connections  between  peripheral  countries,  and 

to  provide 

flexible  and 

19  VSAT networks nowadays consist of a 9-13 m  hub network control facility and a potentially large number of 

remote 1.0-2.5 m one or two-way user earth stations. 

39 

reconfigurable redundant, 'back-up'  routings  to  improve network restoration times 

in  case  of  outages  on  terrestrial ·links.  Of  the  total  1989  telecommunications 

services  revenues  in  Western  Europe20  of nearly  95  billion  ECU,  the vast  bulk  is 

carried terrestrially.  At national level, satellite carried voice telephony accounts for 

far  less  than  1 %.  For  international  calls  within  Europe,  satellite  carried  voice 

accounts for  no  more than 2%  - 3%.  As  mentioned  however,  satellites play  a  far 

greater  - though declining as a proportion of the total  - role for  inter-continental 

communications, accounting for nearly 60  % of traffic throughout the eighties. 

Satellite  costs  per  channel  are  expected  to  fall  over  the  medium-term,  as 

technological  improvements  lead  to  better  space  segment  utilisation  and  earth 

i 

stations become smaller and cheaper.  However,  the cost of terrestrial technologies 

is  falling  faster.  The quality  and  capacity of international  cable links  is  improving 

all  the time and  there has been some speculation  as  to  the effect of the increasing 

capacity of TAT (Trans Atlantic) and  PT AT (Private Trans Atlantic)  cables on the 

use of satellites.  These new _digital  fibre optic cables, the first of which (TAT-8) was 

finished  in  December  1988,  provide  greatly  increased  capacity  at  reduced  cost 

compared to analogue cables.  The advent of fibre optic cables is expected to reduce 

the proportion of transAtlantic voice circuits carried by  satellite from  near 60  %  in 

1989 to 30  % - 40  % of the total by  199521• 

4. 

New Services 

The  new  services  generally  consist  of  services  which  - with  the  exception  of 

television  distribution  - are  directed  at specific business user groups and are not 

intended  for  the  general  public.  They  are  nowadays  largely  digital  in  nature  and 

include special voice and data services and video conferencing. 

20  Community and EIT A  countries. 
21  The trans-Atlantic submarine fibre optic cable TA T8 is  able to carry 40.000 telephone calls simultaneously, 

compared to only a few hundred on conventional coaxial cables. 

4.1 

Standard satellite-based digital services 

40 

Standard satellite-based  digital  business  services  at  64  kbit/s  and  higher  bit  rates 

(SMS22 /IBS23  type  services)  are  currently  provided  in  Europe  by 

the  national 

telecommunications  organisations 

within  their  role  as  signatories  to  the 

EUTELSAT and INTELSAT agreements  - through central,  multi-customer earth 

stations with terrestrial tails to individual customer sites. 

Within Europe, however,  the developing terrestrial digital network will increasingly 

offer these services.  With the exception of the case where an earth station serves a 

community of users and is heavily used,  it  is  forecast  that terrestrial cable networks 

will provide point-to-point digital services at a lower cost  than satellite systems.  It is 

expected  therefore,  that while  satellites will  continue  to  be  used  in  the short  term 

where terrestrial facilities are inadequate, in  the medium  term significant migration 

of customers  to  terrestrial  services  may  be  expected,  except  where long  distances 

are involved. 

The situation  has  been  further  complicated  in  Europe  by  the  dual  interest  of the 

telecommunications organisations as  both  exclusive distributors of satellite services 

of  INTELSAT  and  EUTELSAT  and  as 

the  operators  of  the 

terrestrial 

infrastructure,  as  well  as  the fact  that  in  particular  EUTELSAT  -

in  the current 

circumstances  - is  impeded  from  marketing its  new  services  directly to customers 

throughout  the  Community. 

In  the  case  of  the  SMS  services,  this  has  led  to  a 

situation  where  the  services  were  introduced  late  and  there  was  not  sufficient 

marketing coordination.  Telecommunications  organisations  which  introduced  the 

service  in  reasonable  time,  could  not  offer  the  wide  international  coverage 

necessary to gather a critical mass of customers to make the service rapidly viable. 

As  a  consequence,  EUTELSA T's  SMS  business  service  failed  to  reach  predicted 

growth levels,  reflecting the current weakness of satellite communications for  traffic 

within Europe, as opposed to that between continents. 

22  SMS:  Satellite Multi Service (business communications service of ElITELSAT). 
23 

IBS:  INTELSAT Business System. 

4.2 

Vezy Small Aperture Terminal (VSAT) Networks 

41 

At the world  level,  a  new  high-growth  market  is  emerging  for  point-to-multipoint 

private  satellite  networks  based  on  the  new  small-sized  terminals  individually 

designed  for  each  customer's  needs  and  often  operated  by  third  party  service 

providers.  As terminals become smaller and cheaper and can be safely installed on 

user  premises  by  service  providers  and  operated  under  user  control,  provision  of 

such wide-area  multipoint  networks  via  satellite becomes  more cost-effective, with 

the  high  flexibility  of satellite  techniques  allowing  individual  customer-optimised 

solutions.  These  networks  represent  a  new  departure  in  that  both  terminal 
• 
equipment  and  transmission  links  are  completely  dedicated  to  a  single  user, 

whereas in SMS/IBS type services both are shared.  Private terminal networks offer 

the  possibility  of  developing  new  business  applications  across  widespread 

geographical areas.  Terrestrial networks  are unsuited,  both  due to  their technical 

and  tariff  structures,  for  these  new  point-to-multipoint  one-way  and  two-way 

interactive applications  - often of a transnational nature  - and so  the applications 

would be unlikely ever to be developed.  The terminals for  the fixed  satellite service 

are frequently  referred  to  as  VSATs  ("Very Small  Aperture Terminals"  or "micro 

terminals").  However,  mobile  and  radiodetermination  terminals  can  also  be 

considered part of this class of terminals. 

The services  on  private  terminal  networks  are  generally  provided  by  value-added 

service providers using space segment leased from  a  space segment operator.  Thus 

they  provide  revenues  both  to  the  operators  and  to  the  service  providers. 

It  is 

estimated  that  in  1989  the  value  added  in  Europe  by  satellite  business  service 

providers was 55  MECU. 

This  is  still  a  small  sector  in  terms  of total  revenues,  compared  to  satellite-based 

telephony  transmission  and  other  traditional  satellite  applications,  and  revenues 

generated by satellite television channels.  However,  it  is  estimated that by the mid-

1990s,  business  services  revenue could  be  near  900  MECU,  or more  than 30 %  of 

total satellite service provision revenues  - if regulatory constraints are lifted. 

Examples  of such  value-added  services  are:  Satellite  Information  Services  in  the 

United  Kingdom,  which  has  been  delivering  racing  results  and  betting  prices  to 

bookmakers  and  totalisator  agencies  in  the  U.K.  for  over  two  years,  comprising 

nearly  10.000  receive-only  terminals;  ISIS,  a  similar  service  in  France;  and 

PolyCom,  which  offers news  feeds  to  radio  stations and  newspapers,  stock market 

information  to  brokers  and  meteorological  information  to  radio,  TV  and  other 

media. 

As regards two-way VSAT terminals, by  1990 only a few hundreds of terminals were 

installed in  the Community,  due to  the  restrictive regulatory conditions  - even  if 

some major initiatives were under way24

• 

42 

4.3 

Videoconferencing 

For videoconferencing,  satellites  are  currently  the  main  transmission  medium  but 

competition from  switched terrestrial 2 Mbit/s networks for services within  Europe 

may be expected to develop over the next decade.  It is  important to recognise that 

two-thirds of the revenues generated by videoconferencing are for transmission and 

thus must be considered carrier revenues for  business services,  but about one third 

of the costs relate to the earth segment (hire of studio or connection of a customer's 

temporary or permanent studio)  and can  thus be considered  as value-added.  This 

market sector is  also growing very  rapidly.  In  1987,  the value added was estimated 

at  1  - 1.5  MECU,  and  in  1988  the  figure  is  estimated  at  3.9  MECU.  Carrier 

revenues  in  1987  were  estimated  at  2  MECU  and  thought  to  have  risen  to  7.8 

MECU in  1988. 

4.4 

Other New Satellite Services 

Satellite News  Gathering (SNG)  -

the collection  of news  and  data  from  multiple 

points  - and  other multipoint-to-point  applications  represent  a  growing  demand. 

Though  at  present  no  comprehensive  figures  are  available,  it  may  be  noted  that 

under pressure of the events in  Eastern Europe,  Eutelsat was  used for 800  hours of 

such  'occasional  use'  television  in  November  and  December  1989.  The  regulatory 

regime is of vital importance to the development of the service.  At present, the lack 

of  an  internationally  recognised  standard  for  SNG 'terminals  has  led  national 

telecommunications organisations 

- the INTELSAT and  EUTELSAT signatories 

- often  to  deny SNG  operators  access  to  space  segment.  A  Recommendation  on 

SNG  terminals  is  being  developed  by  CCIR  (International  Radio  Consultative 

Committee,  an  ITU  body)  and  is  expected  to  be  adopted  in  1990.  This  should 

provide  a  basis  for  advancing  towards  equitable  and  non-discriminatory  access  to 

space segment for SNG operators. 

24  For example, in the Federal Republic of Germany, the Daimler Benz company plans the implementation of a 
major VSAT network.  In  Italy Telespazio is planning the implementation of a number of VSAT networks 
covering Italy. 

43 

Business television (e.g.  for distance learning and videoconferencing) is expected to 

be a  growing  market.  It  is  in  this  market  segment  that  further  enhancements  of 

services  are  expected  to  be  demanded  so  that  an  integration  will  take  place  of 

videoconferencing  with  graphics  and  data  distribution.  Other  foreseen  demands 

are the possibility for  real time measurements of audience reactions,  a  flexible  use 

of audio  return links  (not necessarily via  satellite),  new scrambling techniques,  and 

new coding techniques which  allow low  bit  rate transmissions more cheaply ("slow 

scan video"). 

In  addition,  satellites  offer  the  possibility  of  providing  channels,  circuits  and 

networks  at  short notice  for  a  multiple  of uses  and  to  locations not  served  by  the 

terrestrial network  - for  example : scenes  of disaster;  early  services  in  advance  of 

permanent 

terrestrial 

facilities; 

temporary 

restoration  arrangements;  and 

communications to short-term events at remote locations. 

5. 

Entertainment Broadcasting Services 

5.1 

TV Distribution 

TV  and  related  distribution  services  currently  represent  most  of the  demand  for 

satellite  capacity  in  Europe,  and  this  situation  may  be  expected  to  continue. 

Currently,  some  60  channels  are  distributed  by  satellites  in  Europe;  and,  as 

mentioned,  EUTELSAT  derives  75%  of its  revenues  from  television  distribution. 

Growth  in  television  distribution  (mainly  to  cable  heads  and  SMA TV systems)  is 

expected  to  continue,  and  should  the  percentage  of  capacity  used  for  TV 

distribution  remain the same  - approximately 80  %  in  Europe  - then more than 

300 transponders25  can be expected to  be potentially available for TV distribution by 

European  satellite  systems  in  1992.  The  availability  of  medium-power  TV 

distribution  satellites  is  seen  as  a  major  component  in  sustaining  this  market,  by 

providing  multiple  channels  at  relatively  low  cost.  It  will  also  give  impetus  for  a 

large-scale availability of small television receive-only (TVRO) antennas for general 

use,  which  can  receive  these satellite channels  Direct-To-Home.  Small  and cheap 

TYRO terminals with an antenna  diameter of less  than  1 metre are now  available. 

However,  the  adjustment  of  regulatory  conditions  will  be  a  key  factor  in  the 

development of this market. 

25  One transponder is roughly equivalent to the capacity required for one to two TV channels. 

44 

Both  television  distribution via  the EUTELSAT  system as  well  as,  more  recently, 

via  other  systems  such  as  Telecoml,  DFS  Kopernikus  and  Astra  work  in  the 

framework  of  frequencies  defined  for  Fixed-Satellite  Services  and  not  in  the 

frequency  bands  reserved  by  the  W ARC'77  conference  for  BSS  (Broadcasting 

Satellite Services)  where  the Direct  Broadcasting Services  (DBS)  are located.  As 

mentioned,  this  has  made  it  increasingly  difficult  to  maintain  the  distinction 

between BSS  services and broadcasting applications operating in  the framework  of 

Fixed-Satellite Services.  There is therefore an evident need for the development of 

cpeap  TVROs  capable  of spanning  DBS  and  fixed  service  TV  distribution  bands 

(10.95 - 12.75 GHz). 

5.2 

Direct Broadcasting Services (DBS) 

As far as television broadcasting is concerned, Direct-Broadcasting-Services or DBS 

- defined  as  broadcasting  services  by  W ARC'77  -

is  likely  to  become  another 

important user of European satellite systems,  next  to TV distribution in  the Fixed 

Satellite Services. 

DBS  satellites  are  high-powered  satellites  conceived  along  the  lines  foreseen  by 

W ARC  77  ,  which  allocated  satellite  channels,  orbital  positions,  frequencies  and 

polarisations,  essentially  country  by  country  for  Europe,  Africa,  and  Asia,  for 

broadcasting directly to individual users' receivers (refer also to chapter II.). 

At that  time,  the plans were  based  on  national coverage,  with  comparatively  little 

'overspill'  from  the programmes  of a  particular country  to  its  neighbours.  Home 

receivers  were  expected  to  need  receiver  dishes  of  90  cm  diameter  with  the 

technology existing at that time. 

All  the  five  existing  European  direct  broadcast  satellite  programmes  (TV 

SA T /Germany, 

TDFl-2/France, 

BSB 

1-2/UK, 

TELE-X/Scandinavia, 

Olympus/ESA)  are  of this  type.  Reception  of services  of these  satellites  is  now 

possible with dishes of 30 - 60 cm diameter; a mark of the technological evolution. 

There is  therefore an evident  need  for  the  development of cheap TVROs capable 

of spanning  DBS  and  fixed-satellite  service  TV  distribution  bands  (10.95  - 12.75 

GHz). 

45 

In  1989,  TV  and  video  accounted  for  44%  of  total  European  satellite  carrier 

revenue,  or  of  nearly  61 %  when  extra-Community  traffic  via  INTELSAT  is 

excluded,  even  before  any  of  the  direct  broadcasting  satellites  came  on  stream. 

1990 has seen the addition of TV revenues from all 16 of ASTRA's TV distribution 

transponders  and  the  coming  on-stream  of  a  further  14  DBS  transponders  from 

TDF 1-2  (5),  TV-SAT  2  (5),  Olympus  (2)  and  Tele-X  (2),  while  BSB,  with  5 

channels, became operational in April  1990.  In  1992 a  total of 24  DBS channels is 

expected to be available.  Thus TV revenues should  grow  substantially in  the next 

two years. 

By  the  end  of  1989  a  total  of  750.000  Direct  to  Home  (DTH)  terminals  were 

installed  in  the  Community,  with  the  majority  being  installed  in  the  United 

Kingdom.  The  projection  for  the  end  of  1990  is  an  installed  base  of  about  1.8 

million units. 

The  projections  for 

the 

installation 

in  Western  Europe  of  antennas  for 

entertainment broadcasting reception by  1994 are estimated at 6 million units. 

Directive 86/529/EEC  has  identified  the  MAC  family  of transmission  techniques 

as the standard to be used for Direct Broadcasting Satellites.  The Directive expires 

on 31  December 1991.  The future evolution of transmission techniques in  this area 

will  be  characterised  by  the  fact  that  a  major  challenge  for  the  future  will  be  the 

harmonised introduction of High Definition Television (HDTV) in Europe. 

5.3 

High Definition Television (HDTV) 

Satellites will  play  a  crucial  role  in  the  introduction  of High  Definition  Television 

(HDTV),  which  enables  larger  TV  screens,  with  a  wider  aspect  ratio  and  better 

picture  resolution  to  be  made  available  to  the  public  at  acceptable  prices.  The 

introduction of HDTV within Europe will almost certainly use DBS satellites in  the 

short and medium term. 

HDTV  is  a  high  priority  area  in  overall  Community  audiovisual  policy26•  This  is 

discussed in more detail in chapter IV. 

26  See Communication by the Commission to the Council and to the European Parliament on audio-visual 
policy, COM(90) 78 of 21.02.1990 and Council Decision of 27 April 1989 on High Definition Television 
(HDTV), O.J. L 142 of 25.05.1989, p.  1. 

46 

6. 

· Mobile Services and Position Fixing Services 

Mobile  services  are  developing  rapidly.  Although  until  recently  limited  to  the 

maritime  Mobile-Satellite  Services  (MMSS)  on  big  ocean-going  vessels,  mobile 

satellite  services  for  maritime  services  to  smaller  vessels,  for  aeronautical,  and 

especially land mobile applications, are now at the centre of interests.  The intended 

provision of services,  both messaging and position-fixing,  for land  mobile users has 

meant  a  renewed 

interest,  especially  from 

long-haul 

trucking  companies, 

enterprises with  smaller  coastal  and  waterway  vessels,  high-speed  train  operators 

etc. 

6.1 

Maritime Services 

Currently,  the  INMARSAT system  provides voice communication which,  although 

of high quality,  requires comparatively large and expensive (30 000 ECU) terminals 

with  dish  sizes of about  1 meter on board ships.  However,  INMARSAT intend  to 

introduce  in  1990  a  service  supporting  low  data  rate  communications  to  small, 

cheap  terminals  - via  so-called  INMARSA T  standard  C  terminals  antennas  of 

about  20  cm. 

It  is  anticipated  that  by  1992-1993,  voice  communications  will  be 

possible  using  similar  small  terminals.  This  will  bring  direct  benefit  to  a  whole 

range of ships including those which predominantly stay within the coastal waters of 

the Community,  as  opposed  to  the current system,  which  is  much  more optimised 

for the requirements of large, ocean-going vessels. 

6.2 

Land Mobile Services 

Recent  studies  indicate  that  Land  Mobile-Satellite  Services  (LMSS)  and  the 

terrestrial  pan-European  digital  cellular  network  (GSM)27  will  be  mainly 

complementary and  rarely  in  competition  with  each  other.  The  higher  price  and 

bigger size of the LMSS  terminals  are mainly of interest  to specific user groups of 

limited  size  seeking  instantaneous  and  full  European  coverage,  such  as  long-haul 

trucking companies  and  vessel  operators.  On  the  other  hand,  GSM  offers  better 

quality  voice  and  a  higher  system  availability  in  urban  areas  and,  combined  with 

smaller user terminals (down  to hand-held size) and a lower price, is  intended as  a 

27  Council Recommendation of 25 June 1987 on the coordinated introduction of public pan-European cellular 
digital land-based mobile communications in the Community and Council Directive of 25 June 1987 on the 
frequency bands pertaining thereto, OJ.  L 196of17.07.1987, pp.  81  and 85, respectively. 

The new pan-European system  - also called the "GSM"-system  - will be implemented in the Community 

47 

mass  service  for  private  and  local  business  users.  Nevertheless,  some  level  of 

integration of the services at system level may be developed in order to exploit both 

systems to their full potential. 

A  recent  study  indicates  a  total  captured  market  for  satellite-based  land  mobile 

services  (including  position-fJ.Xing28)  in  Europe  of only  220,000  data terminals  and 

65,000  voice  terminals  by  the year  2000  in  Europe,  compared  to  a  forecast  of  16 

million terminals for terrestrial cellular systems by that time. 

Plans  for  mobile  or  position  fixing  services  in  Europe  have  been  announced  by . 
INMARSAT, EUTELSAT and LOCSTAR.  ESA  has  announced an  experimental 

European Mobile Services initiative, to be embarked on a satellite of a third party. 

This  makes  it  all  the  more  imperative  to  free  the  economic  operators  from  a 

maximum of restrictions so that the available capacity can be offered to users under 

optimum conditions and at competitive prices. 

6.3 

Aeronautical Services 

Aeronautical services  have  developed  faster  in  the United  States  than  in  Europe. 

In a combined effort,  the USA and Canada have set up  an entity called  M-SA T  to 

provide aeronautical services  over  the  North-American  landmass,  with  the AMSC 

consortium as the U.S. partner (see below). 

In  addition  to  this,  on  a  global  scale,  INMARSA T  aims  to  provide  aeronautical 

services,  including  passenger  voice  telephone  traffic.  However,  air  traffic  control 

information and airline information may prove to be more important. 

Just  as  in  the  case  of  maritime  satellite  communications,  initial  service  will  be 

optimised for  the longer, trans-Oceanic routes.  Nevertheless,  there remains a clear 

possibility  that  the  use  of satellite  communications  to  aircraft  over  the European 

landmass can make specific contributions to flight safety and airline efficiency. 

from 1991 onwards (see also chapter V.). 

28 

Position fixing services allow the determination of the position of ships, vehicles etc. down to precisions of 15-
100 meters, depending on the system.  For Europe all land mobile-satellite services will offer position fixing 
services as an option. 

7. 

Development in other major markets:  United States and Japan 

The  technological  and  market  developments  have  led  to  substantial  changes  m 

other major markets, in particular in the United States and Japan. 

48 

7.1 

The United States 

The  United  States  have  undertaken  substantial  liberalisation  of  the  satellite 

communications  sector. 

It  is  now 

the  far 

largest  market  for  satellite 

communications systems and services. 

7.1.1  Domestic "Open-skies" policy 

As  early  as  1972, 

the  US  Federal  Communications  Commission  (FCC)29 

established a  domestic fixed-satellite  service licensing policy based on the principle 

of open  entry - ie.  that  all  qualified  applicants should  be allowed,  where possible, 

the  opportunity  to  provide  domestic  satellite  communications  services,  both  for 

accessing  in-orbit  satellite  capacity  for  operating  satellite  networks  as  well  as  for 

launching  and  operating  space  segment  capacity.  This  policy  has  since  become 

known as the "open-skies" policy. 

The FCC has  adopted  flexibility  in  the  allocation  of orbital  location  and  spectrum 

(e.g. 

through  the  use  of two-degree  orbital  spacing),  with  the  effect  that  to  date 

there  have  been  sufficient  orbital  locations  available  to  allow  the  FCC 

to  grant 

applications of all qualified domestic fixed-satellite applicants. 

U.S.  entities  licensed  to  construct,  launch  and  operate  domestic  satellites  may 

provide  capacity  on  a  common-carrier  basis  to  other  entities  - either  those  that 

provide telecommunications services to  third parties or those that  use the capacity 

for their own internal purposes30

• 

29  The US Federal Communications Commission (FCC) is the US Government body which is empowered to 
regulate interstate and foreign commerce in communications.  The FCC grants licences for the use of 
channels of interstate and foreign radio transmission, and prescribes the technical, financial  and other 
qualifications of a licensee, including those entities licensed to construct, launch and operate domestic and 
international satellites. 

The FCC establishes licensing policies for the fixed,  mobile and broadcasting satellite services.  The policies 
which it adopts in each area are intended to achieve specific objectives, mainly related to the development of 
the US satellite industry. 

30  A common carrier is  a provider of services to the general public.  They may also seek FCC approval to sell 

transponder capacity on a non-common carrier basis. 

49 

Entities  leasing  or  owning  domestic  transponder  capacity  may  also  offer  that 

capacity  to  users  on  a  non-common  carrier  basis.  Where  the  entity  owns  and 

operates the transmitting earth station accessing the particular transponder, it must 

receive a  licence to  construct and  operate the  earth station.  A  "blanket" licensing 

procedure  is  available for  entities that  operate large  numbers of technically  identical 
domestic very small aperture terminal (VSAT) transmit-receive earth station facilities  in 

the  12/14  GHz band.  Networks  operating in  the 4/6  GHz band  however  (a  band 

not  used  in  Europe  for  this  purpose),  must  be  co-ordinated  and  is  subject  to 

individual  station  licenses.  This  blanket  processing  entails  the  grant  of a  single 

licence for  the overall domestic earth station network, without specific information 

on  each  station.  The FCC  does  not  license  (or  require  to  be  licensed)  domestic 

receive-only earth stations in  the  12/ 14  GHz band because fixed-satellite service is 

the only  service  allocated  to  this  spectrum  on  a  primary basis  and  interference  is 

therefore unlikely.  Entities  operating  domestic  receive-only  earth  stations  in  the 

4/6  GHz  band  may  voluntarily  seek  licensing  if  they  desire;  the  licensing  gives 

protection against  interference from  terrestrial facilities  sharing the spectrum on a 

co-primary basis. 

The "open-skies"  policy  has  led  to  a  rapid  evolution  of the  U.S.  domestic  Fixed 

Satellite  industry.  Eleven  companies  hold  52  licences  to  construct,  launch  and 

operate domestic  Fixed-Satellites.  Thirty  of these  are  in  operation.  In  addition, 

thousands of entities hold  transmitting earth station  licences for  accessing in-orbit 

satellite capacity.  The industry has been characterised  by  innovation and  diversity 

as  the number and  kinds of providers and services offered  have steadily increased. 

Satellite service  providers range  in  size  from  large facilities-based  carriers  to  very 

small resellers of transponder capacity.  Services include all  type of data, voice and 

video  transmissions.  Earth  station  developments,  have  been  as  dynamic  as  space 

station  developments  as  the  size  and  cost  of antennas  has  decreased  while  their 
performance characteristics have improved. 

50 

The value  of the business  has  increased  accordingly.  In  1990,  small  satellite dish 

networks are expected _to  earn $  300  million  to  $  400  million  in revenues for  their 

operators.  VSAT network sales are expected to grow  at an annual rate of 30 to 40 

per cent during the coming years.  In  1984, when Ku-band transponders first came 

on stream,  there were around 2000  earth stations in  place.  By  1988  that total  had 

grown  to  16,000  stations,  while  now  (1990)  approximately  40,000  stations  are 

installed of which  about  one third  are transmit/receive stations  - compared  to  a 

few  hundred  transmit/receive  VSAT  terminals  in  Europe.  Recently  Hughes 

Network  Systems  Inc.  announced  that  it  was  to  supply  a  single  network  of 

approximately 10,000 dishes to General Motors, for completion by 1992. 

The  early  adjustment  of  the  regulatory  conditions  for  domestic  satellite 

communications in  the United States has given  the US space industry a  substantial 

advantage on the world market in this area.  In spite of the dynamic satellite market 

thus  created  in  both  space  segment  and  earth  segment,  satellite  communications 

has  not  had  a  visible  negative  impact  on  telecommunications  revenues  earned  by 

the  terrestrial  telecommunications  carriers.  After  one  decade  of dome~tic "open 

sky  policy",  total  satellite communications  revenues  account  for  no  more  than  2  -

3 % of total telecommunications revenues while liberalisation has in practice led to 

a substantially higher  and  more diversified  development of the  US  space  sector in 

this area. 

7.1.2  U.S. approach to international satellite communications 

In contrast to  its  approach to domestic satellite communications,  the US  approach 

to  international  satellite  communications  is  still  characterised  essentially  by  the 

structures established during the sixties. 

In  the  US,  Comsat,  created  in  1962  as  a  special  body,  is  the  organisation  which 

carries  out  the  signatory  role  undertaken  in  Europe  by  the  telecommunications 

organisations31  in  relation . to  INTELSAT  and  INMARSAT.  However,  more 

recently,  common  carriers  and  private  users  also  have  the  right,  under  certain 

restrictions,  to  purchase  or lease capacity  from  U.S.  international satellite system 

providers  separate  from  the  INTELSAT  system  ("separate  systems").  These 

entities may either own their own earth stations or lease earth station services. 

31  With the exception of Italy, where Telespazio has been created as a special organisation for assuming chis role 

(see chapter II.). 

51 

In  November  1984,  the  United  States  issued  a  Determination  that  alternative 

satellite systems were "required in the national interest".  This determination states 

that the United States shall consult with INTELSAT regarding such systems "as are 

authorised  by  the  Federal  Communications  Commission".  The  Departments  of 

State  and  Commerc~ jointly  laid  down  the  restrictions  to  be  imposed  on  the 

alternative systems prior to final authorisation by  the FCC, in  order to ensure U.S. 

fulfilment  of 

its 

international  obligations  and 

the 

furtherance  of 

its 

telecommunications and foreign policy interest: 

separate  systems  were 

to  be 

restricted 

to  communications  n?t 

interconnected  with  public-switched  message  networks 

(except 

for 

emergency restoration service); and 

one or  more foreign  authorities were  to authorise  use of each  system  and 

enter  into  consultation  procedures  with  the  United  States  Party  under 

Article XIV( d)  of the Intelsat Agreement  to  ensure technical compatibility 

and to avoid economic harm. 

In  1985  the FCC  established  regulatory  policies  for  the  consideration  of separate 

satellite  system  applications.  Separate  system  operators  may  not  operate  as 

common carriers.  No communications over separate systems may interconnect with 

the public switched networks.  The "no-interconnect" restriction applies to all  levels 

of users  of these facilities.  Common  carriers and  enhanced  service providers may 

acquire  and  re-sell  separate  system  space  segment  capacity  consistent  with  this 

restriction.  Use  of  separate  systems  by  U.S. 

common  carriers  requires 

authorisation from the FCC. 

Applications for international separate satellite systems are subject to  public notice 

and opportunity to comment.  Final authorisation  to construct,  launch  and  operate 

a  separate  system  is  not  given  until  INTELSAT  Article  XIV( d)  obligations  are 

satisfied.  Besides these obligations, carriers are subject  to the same legal,  financial 

and technical requirements as U.S.  domestic satellite applicants. 

Six  entities  hold  conditional  construction  permits  and  one  entity,  Pan  American 

Satellite  (PAS),  has  a  licence  to  construct,  launch  and  operate  an  international 

separate  satellite  system. 

PAS  and  Orion  have  completed  Article  XIV(d) 

consultation.  PAS  has  an  operating  satellite  providing  service  between  the  U.S. 

and  Central  and  South  America,  the  Caribbean  and  Europe.  Final authorisation 

for Orion is pending. 

In June 1990,  PAS  filed with  the FCC to  lift  the restrictions on interconnection  of 

its services with  the public switched  network  (interconnection with voice  and  data 

message handling services),  stating that  this  limitation  restricted it from  operating 

in more than 90  % of the potential market. 

52 

7.1.3  Mobile-satellites services in US 

In the field  of mobile-satellite services, the U.S.  satellite telecommunications policy 

is  still  strongly  based  on  considerations  of  national  interest. 

In  1984,  the  F~C 

proposed  the  establishment  of  a  new  public  domestic  mobile-satellite  service 

(MSS),  and  invited  interested  parties  to  submit  applications  for  authority  to 

construct,  launch  and  operate  an  MSS  system. 

In  1986  it  concluded  that  joint 

ownership of the first generation MSS system would permit a variety of competitive 

mobile-satellite services to be made expeditiously available to the public.  The FCC 

reasoned  that  only  one  domestic  MSS  system  should  be  authorised  for  the  first 

generation because there was: 

a  limited  amount  of  L-band  frequency  spectrum  apportioned  jointly  to 

Aeronautical  Mobile-satellite  Services  (safety)  (AMSS(R))  and  MSS,  and 

none  of  the  twelve  parties  seeking  licences  submitted  a  proposal  which 

would permit licensing more than one system; 

a need to provide priority and pre-emptive access for AMSS(R); and 

a  need  to  co-ordinate  spectrum  use  with  other  planned  satellite  systems 

such as INMARSAT and Canadian and USSR systems. 

Therefore,  the  FCC  instructed  those  applicants  which  met  basic  qualification 

requirements  to  form  a  joint  venture  and  propose  an  MSS  system  to  operate  in 

accordance with  the general licensing  provisions.  The FCC subsequently  licensed 

American  Mobile-satellite  Corporation 

(AMSC), 

the  consortium  of  MSS 

applicants,  to  construct  and  operate  a  c.ombined  AMSS(R)  and  MSS  satellite 

system.  This approach  has  been contested  as  being  restrictive and  discriminatory 

with regard to non-U.S. based potential service providers. 

7.2.  ~ 

53 

Japan's  first  experimental  satellites  were  designed  and  constructed  by  American 

contractors.  Under the  terms of the co-operation agreement,  however, Japan was 

able to purchase licences  and sign  numerous co-operation agreements, and thus to 

follow  a  strategy  of  improving  its  equipment  and  increasing  the  Japanese 

involvement in successive satellites.  During the 1970's and '80's, the contribution of 

Japanese industry increased steadily, to the point where the last two generations of 

experimental telecommunications satellites, ETS IV ( 1981) and ETS V ( 1987) have 
been 100% Japanese manufactured.  Similar progress has been made in launchers: 

Japan expects to be able to launch its own telecommunications satellites by 1992. 

On the applications side,  a major change occurred  in  1985 with the privatisation of 

NTI and the enactment of the Telecommunications Business Law32• 

In  the  wake  of  the  implementation  of  the  law,  the  Ministry  of  Posts  and 

Telecommunications  (MPT)  has  licensed  two  large  satellite  groups  as  Type  I 

(domestic)  carriers,  competing  with  NTI.  They  are  Japan  Communications 

Satellite Co.  (JC Sat.), owned by Hughes Communications, C.  Itoh and Mitsui, and 

Space Communications Corporation (SCC),  owned by Ford Aerospace,  Mitsubishi 

Electric and Mitsubishi Corporation. 

Each company  has  ordered  a  two-satellite  system  from  its  American  partner.  JC 

Sat.  now  has  both  satellites  in  orbit,  and  SCC  has  one:  its  second  satellite, 

Superbird B, was lost  due to  a launch  failure  in  February 1990.  Its  replacement is 
due to be launched in  1992. 

In a  change of policy,  Japan  also  modified  its  position  with  respect  to  the  role of 

NASDA33, 

the  National  Space  Development  Agency, 

in 

the 

technological 

development  of  telecommunications  satellites.  With 

the  deregulation  of 

telecommunications  and  the  granting  of  licences  to  private  companies  using 

American satellites,  the government  has  decided  to  count  mainly on  the beneficial 

long-term  effects  of  the  development  of  satellite-based  communications 
m 
particular  of  the  earth  segment,  where  Japanese  manufacturers  have  already 
achieved an extraordinary dominance  - and satellite services. 

32  The Law classifies telecommunications business into two  main types: Type I or facility-based businesses, which 

provide telecommunications services by establishing their own  circuit facilities,  and Type II or resale 
businesses which provide services by using circuits leased from Type I carriers.  The proportion of foreign 
ownership of any Type I carrier is limited to 30 % . 

33  Since the early seventies, the National Space Development Agency (NASDA) formed in 1969, has been the 

54 

The creation in early  1987 of Space Telecoms  Research Group at the initiative of 

MITI,  the Japanese Ministry  of International  Trade and  Industry,  was  one of the 

factors  marking  the gradual  withdrawal  of NASDA  and  making  way  for  private 

sector support  of the  space industry  by  telecommunications  companies.  The new 

company received 70% financing from  the Japan Key Technology Centre, which is 

supervised by MITI, and 30% from  ten private or semi-private ~ompanies including 

N'IT, KDD and NHK. 

The  two  private  satellite  systems  already  authorised  will  off er  108  transponders 

when  all  4  satellites  are  launched.  This  is  equivalent  to  the  capacity  of all  five 
• 

Eutelsat  H's  and  both  Astras,  to  cover  a  market  with  just  half  the  population  of 

Europe.  This  capacity will  be  further  increased  by  the  national  CS3  satellite  (24 

transponders).  By  April  1990,  SCC  and  JC Sat.  had  l~ased about  60%  of their 

transponders:  40  out of 64  on  the JC Sat.  1 and  2 satellites,  and 25  out  of 44  on 

SCC's Superbird A and B. 

A  third  Japanese-American  consortium  proposing  a  private  system  is  Satellite 

Japan Corporation (SJC), a joint venture of RCA Astra Electronics, Sony,  Nisaho 

Iwai Trading and Marubeni Trading.  Satellite Japan has not yet been authorised by 

MPT, which  fears  considerable  over-capacity.  Similar fears  were  expected  before 

the JC Sats and Superbird came into operation but it now seems likely that both will 

prosper. 

While the satellites were mainly designed  to  cater for  television  distribution  - and 

indeed have been notably successful in leasing transponder space, both to NTT and 

to cable operators - other applications  have  also  developed  rapidly.  In  particular, 

commercial  broadcasters  are  very  interested  in  the  use  of  satellites  for  satellite 

news  gathering  (SNG).  These applications  already account  for  four  transponders 

on Superbird-A, and SCC expect that this will rise to 8-12 transponders.  In fact,  the 

availability of,  and freedom of access  to,  space segment has led  to the creation of a 

number of independent service  providers.  These companies are also  expected  to 

move into  the provision  of business  television  services,  another rapidly developing 

application 
satellite. 

-

e.g.  one  business  TV  company  in  Japan  is  selling  used  cars  by 

main agent of government intervention in satellite manufacture. 

55 

Private satellite business networks  are another  area  of major interest.  Several of 

the big  Japanese  electronics  firms  have  announced  plans  for  networks  to  link  up 

their manufacturing plants, regional offices and distribution outlets by fax  or video. 

Mitsubishi,  a  co-owner  of JC  Sat.,  uses  the  system  to  deliver  information  to  its 

corporate sites.  Some of the networks involved are very large and may comprise of 

up to 5000  terminals.  While one-way  applications are set to dominate the market 

initially,  several  Japanese  electronics  companies  have  developed  prototype  2-way 

VSATs. 

8. 

Summary 

During  the  last  decade,  satellite  communications  technologies  have  undergone 

dramatic change. 

In  addition  to  the  traditional  large  earth  stations  for  trunk  telephony  and  TV 

programme  interchange,  new  satellite  terminals  are  now  available  for  Direct-To 

Home  television  and  for  specific  user  applications  which  operate  with  antenna 

diameters of 0.5  - 2.5  meters depending on applications and which  can be installed 

under user control directly on user premises. 

The technological change has opened a  broad  range of new  opportunities for  both 

satellite service  providers  and  users  - particularly  in  point-to-multipoint  service 

provision  via  satellites.  The  new  service  types  which  are  developing,  tend  to  be 

complementary to the traditional services,  instead  of competing with  them.  While 

in trans-Atlantic communications, satellite links still account for ·nearly 60  %  of the 

traditional trunk telephony (although  this  percentage  is  now  decreasing),  satellite 

carried voice  telephony accounts  for  only  2  - 3 %  of intra-European  international 

and  national  long-distance  calls.  EUTELSAT  derives  75  %  of its  revenues  from 

television distribution. 

Technology  has  now  made  it  possible  to  broaden  the  availability  of  satellite 

terminals  and  services  to  individual  users.  The  introduction/ expansion  of major 

new  satellite  services  lines 

-

such  as  wide-area  VSAT  networks  to  serve  the 

Europe-wide communications requirements of specific user groups  - will  depend 

on the development of a  regulatory  framework  which  will  allow  it  to  happen  on  a 

Europe-wide basis.  More generally,  Europe's growing number of satellites must be 

put to the full use of the European economy. 

56 

Satellite services  must be  allowed  to  define and  develop  their specific markets,  in 

order to  maximise the benefit of Europe's overall investment in its space segment 

and to provide the European users with the trans-European services they need. 

The  United  States  and  Japan  have  adopted  a  market-oriented  policy  in  their 

domestic satellites market, in order to develop the industry.  After eighteen years of 

domestic open  sky policy,  the  United  States  has  become  a  leader in  new  satellite 

communications  applications.  By  now  there  are  approximately  40,000  VSAT 

terminals  in  operation  in  the  United  States,  of  which  about  one  third  are 

transmit/receive stations,  compared to  a  few  hundred  transmit/receive stations in . 

Europe.  Japan is_ now preparing its entry into  the world market on the basis of the 

de-regulation of the sector in its home market. 

While  essential  for  satisfying  the  requirements  of specific  business  and  consumer 

groups,  satellite  communications  services  will  pose  no  threat  to  the  financial 

viability of the terrestrial infrastructure.  In the United States, even after nearly two 

decades  of  domestic  open  sky  policy,  total  satellite  communications  revenues 

account  for  no  more  than  2  - 3 %  of  total  telecommunications  revenues  while 

liberalisation  has  led  to  a  substantial  and  more  diversified  development  of  the 

sector.  For Europe it  is  forecast  that  total  satellite communications  revenues  will 

reach no  more than  1.5  - 2.5  %  of total  telecommunications  revenues  by  the year 

2000.  Currently,  the total  revenue of all  satellite operators in  Europe accounts for 

no  more  than  0.4  %  of  total  telecommunications  revenue  in  the  European 

Community. 

Figure 5 gives an overview of key-figures on satellite communications in Europe. 

SATELLITE COMMUNICATIONS IN EUROPE  - AN OVERVIEW1 

Figure 5 

:_>_::1·::._.:_  :::·s·:·p.: .. A:: :c···::·E··::: __  :s:. ·.:E. ·:G·:··_: .. M·· ·:E·······N·:·T··_··_ . 
.... 
.. 
:..:>:::_,-::•-:::::::: ... .'  .::·:. ..  · ..

.. ·.·: ....  .:: ..... : ....  : .......  .' ........  : 

······· 

... 

. 

. 

. 

' 

- ..  : .

.. .-:::  .. ·· 

-:· .. _··.::.·  . . .  :-:._.::-_.:._.:·:.::-.. 

:::  ... : ............... ·:-.-:.:-··.:..:::::._··.  :: 
· . . .  _.-:._·· .. :-:-.-·:.:: .. :.:-:-.-.:-.. :.:-.:· 
..... _ ..  L~. •• .. :.// :-:·+·+~.--;++~?:/::>::-
)i4i.~fB4rr¥f3.t•c;t· :~te11ite¥(t9'9Q): With European coverage_(foo.tpn:no2 
_/:9µ.(f~f WW¢fr¢4r9p¥a:..f ¥f~1@~:+--------------------------~----------~---~------~-~-~~-7;-.JF _·pp::::::++a..t.:.:::.-::-:::-< 
:::::.:tot~i)~paC.'iw:·ctr~n$P.Qlld:er8)··:o99o) · ----~----------------~------------~------.;L.;_~~-·-•: >.:::·:::  :;.+~++4.;:aso:::::_•:.::·:· : 
·:·::::oud:>t-:wtii<::ti:'l·NTEtsA.+f~~;~-~--~-~-------------------------------------------------~---------~"'~~-:~ -·~~·~·::.·:: ___ :48%>:•.:······.-·: 
'..·  : ) L.L----------------------------~-·----------------------~-~~~+ \.::.:  / '.'.-:.-.~L .. 2.~~{:::::: / 
>._•·~tifet$%T{: ::·  -#~F. '. 
· · ..  · . ._:·· ::_;.  ~1$~:.{ :: :::::.> 
))~#.f ##g~i_§#P.#¢it)I p(~·G,f#Pean sat ell it es from 1989 to• 1993  -------~ .... --
<J$Jf1¢t:easeJrff'luml#.{ot #atjsponders)4 
.::-thote.~$~p'1 riuffit)e.fqf~ijr9f)ea~ satellites from  1990 to 1993 ____________________  ..;._~~ .. :·  <~~~~:.~:.~7:.~~::<.::::· 

:::::  .:  : .:. ·::: 

·.·. 

.............. 
. 

.........  . 

....  .....  . 

. 
.  .. 

. >~Q~i6~*~·je.rr.rt1na1~•.0:9~~>--~~---;.----------------------------------------------------7--;.--~+;.+:·::: .:..-:++~:-::B9@.···-•:: ·· ... ·.· 
_::•,.:·:r..~p.e.i\re-oniV'::~;.~.~"'. ... ~~--"'.--.... ~ .. ~~ .. 7---------------------------------------------------------~;.--++ : .... _"'.;._"'..__ .. .;:•~>::•·•· .... :. 
::·:::~:.ftfi,:;.Y,¥p-~~ .. l.~-;; __ ~~:.;. __ ;..~L------~---------------------------------------------------------.. 
· ··  _:_:_:·•: .. ~4;~~~·400:•:-:::•.: .. ·•·:-·-: 
:?f~ffuJn~ls:U.~~ f(°)rtelevision reception (1989)-------------------------------------------~--~? :_:. •• .,,.-84~06: : :·.· . 
. :: \Pt'Y:~1:~--~C>.y$et101cr .. ~ .. ,_-~ .. ~--7-;.•~------------------------------------------------------------.. -~: : .;.L .. ~~--:00% .. 
·:::  Y~fl.l'~Jaeds·~~""-:-~--:--.. -H-:--"':--.. -.:..----------------------------------------------------------~---+:_ 

···:··.·:::;:.·:.:: . 

....... ,..... ..... 

. . . . . .  

.............  .. 

···········  ....  .  ..... 

. {T§~'-lf~y~9~e~:p:~rive<:[by: $a~elilte operators (1990-estlmated)s ----------· __  .......,.._ .. ·.  _ ... _. 
__  .. _ ...........  _ ..... __  ··. _ 
::<:<:>.lif.of W.tii:Ch<: ::.::.:.:·  · .. ·. 
.. ·:: .. ·-:· : ...... ·.:-: :.: .. :: ...... 
.. :-:-.:. .. ·::-:·:.  ·. 
::·-.y:$at:~1ilte.·:~i'ri*1·-telephorit~----------------------------------------------------------:-----~~ .. .,-..  ~--.. A.;-.:~·44.%: •. ····  · 
<:/~fol_i@(iisfoblJted.television services10 --------------------------------------------------~-2 ..  .:. ... .;~.L .. _ .. 46.%, <_  . . .  
• )~ :6~~/:~ie1 ite·ser\lice$1l · --7"-----~------------------------------------------------------------------.0.. · ... .; ... _.;;. ___ · 1 0% 

·_-.  · ·--.·:: ::.-:::.: :_·:·_·:-

......  -: 

. 

2 

3 

4 

5 

6 

7 

8 

9 

All 1990 figures based on August 1990. 

including 7 INTELSAT satellites, 1 PanAmSat, 2 INMARSAT, 2 Arabsat, number of USSR satellites unknown. 

including an equivalent of 150 telephony transponders and 18 TV transponders.  INTELSAT capacity mainly 
used for trans-Atlantic and trans-continental use. 

according to announced plans (see fig.  2 and 3).  Total number of equivalent transponders on European 
satellites announced for 1993 : about 400.  Total increase in transmission capacity will depend on technology 
and access methods used and will be larger than increase in number of transponders. 

This represents mainly VSAT terminals.  The number of VSAT terminals world-wide in 1989 was about 44 000, 
mainly in the United States. 

About 30 000 world-wide 

About 14 000 world-wide 

This corresponds to 0.45% of total telecommunications revenue in  the European Community + EFTA 
countries  (95 billion ECU in 1989) 

out of which 33% INTELSAT carried trans-Atlantic telephony.  Within the Community satellite based 
telephony does not correspond to more than 2 to 3% of international telephone service. 

lO  Currently, more than 60 satellite TV channels are available in Europe.  Near 75% of current EUTELSAT 

revenues are derived from television services. 

11 

Including video conferencing services and point  to mult-point one-way and two-way VSAT systems. 

IV.  SATELLITE COMMUNICATIONS IN A GLOBAL POLICY 
CONTEXT 

58 

Satellite communications will play a major role in Europe's economy of the nineties. 

The  definition  of  a  coherent  approach  to  satellite  communications  in  the 

Community must take full account of these broader aspects. 

1. 

Satellite  Communications  in  the  Context  of  Community  Space 
Policy 

Satellite  communications  represents  by  far  the  largest  commercial  application  of 

satellite technology. 

Europe's cumulated total effort in space up to the year 2000 through ESA will total 

more than 30 billion ECUs in addition to national space programmes, with a major 

political  commitment  to  ensure  European  autonomy  in  space,  including  manned 

spaceflight. 

Cumulated 

revenues  over 

this  decade 

related 

to  satellite 

communications  -

for  satellite  operators for  the provision  of space segment,  for 

the distribution of satellite TV channels, and for satellite terminal sales alone  - are 

forecast  to be far  in excess  of 20  billion ECUs,  depending on the lifting of existing 

restrictions.  Satellite communications will  therefore  determine,  to  a  large  extent, 

the  commercial  success  of  Europe's  efforts  to  gain  a  strategic  and  future-proof 

position in space. 

The Commission's  overall  approach  to  space  policy  is  set  out  in  Communication 

COM(88) 417 on the proposed Community approach to space policy of July  198834• 
After analysing the European space effort in  the world context, its current strengths 
and  weaknesses,  and  identifying  the  Community's  role,  this  communication 

proposed major policy goals for European space policy. 

34  The European Community and Space-A Coherent Approach, COM(88) 417of26.07.1988. 

The discussion presented in the Communication led to the identification of six lines 

of action for a consistent development of the Community's space activities: 

59 

Research  and  Technological  Development 

promoting 

full 

complementarity and interaction between the Community's  R  &  D strategy 

and the programmes of the European Space Agency (ESA)35; 

Satellite  Communications 

the  need  for  a  consistent  approach  to 

networks, the 'development of new services and to regulation; 

Earth  Observation 

stimulation  of  the  applications  market  for 

meteorologica~ earth resources and environmental satellites; 

Industrial  Development  -

full  use  of  the  benefits  of  the  single  market, 

above all to improve the competitiveness of relevant European industry; 

Legal  Environment 

contributing  to  the  establishment  of  favourable 

conditions for the development of European space activities; 

Training  - promoting the development of high-level European training . 

. For  the  particular  case  of satellite  communications,  COM(88) 417  foresees  four 

lines of action: 

Ensuring  that  satellite  techniques  are  taken  into  consideration  in  the 

development of networks and services at European level and optimising the 

complementarity of satellite and terrestrial systems; 

35 

The annual budget of ESA amounted to some 2bn ECU in payment authority in 1989.  The major 
development lines up to the year 2000 are the development of the European space shuttle HERMES, the 
European space station element Columbus, the ARIANE 5 launcher programme, and advanced satellites for 
science, earth observation and communications.  ESA's budget for development of satellite communications is 
currently between 250 and 300 million ECUs annually. 

ESA has played a key-role in the development of the European capability in satellite communications.  The 
Agency develops and launches experimental satellites to test their viability in orbit (the OTS satellite, 
launched in 1978, OLYMPUS launched in 1989 and ARTEMIS to be launched in 1993).  ESA also developed 
and launched the initial systems for EUTELSAT and INMARSAT, the so-called ECS series used by 
EUTELSAT from 1983 onwards and the MARECS-A (launched in 1981) and MARECS-B (launched in 
1984) satellites for INMARSAT. 

The current ESA OLYMPUS programme is intended to develop and experiment in orbit-technologies in 
order to develop commercial satellite programmes in the 1990s in communications and broadcasting.  The 
satellite is intended for telecommunications (small terminal systems, data and education services, broadband 
communications and experimental high-frequency transmissions) and broadcasting (High Definition 
Television, datacasting, encryption, etc.). 

With the exception of Greece, Luxembourg and Portugal, all Community Member States are members of 
ESA. 

60 

Creating the  political,  regulatory  and  standardisation  conditions  necessary 

for  the  development  of new  services  and  equipment,  to  ensure  maximum 

exploitation of space systems; 

Promoting 

the  use  of  satellite  communication 

systems  m 

the 

implementation  of  Community  policies,  such  as  in  the  education  and 

training field; 

Undertake  Research  and  Development  to  promote  the  development  of 

space system applications. 

The Communication has received an initial review by the Council and is now under 

examination by European Parliament. 

In the period since the publication of COM(88) 417, the Commission has promoted 

the use  of· satellite communications systems  in  the implementation  of Community 

policies  in  particular  in  the  fields  of rural  and  regional  development,  notably  to 

implement  education  and  training  systems  in  remote  and  rural  areas  of  the 

Community,  aid  to  developing  countries,  education  and  training,  transport  and 

fisheries,  and  has  had  a  close  liaison  with  the  European  Space  Agency  on  the 

technological 

developments 

aimed 

at 

preparing 

future 

European 

telecommunication satellite systems. 

Under  the  RACE  programme,  the  role  of satellite  communications  in  a  future 

European broadband network is currently being analysed36,  and these activities are 

foreseen to be continued within the new Community R &  D framework programme 

for the period 1990 - 1994.  Further, the DELTA programme37  on distance learning 

applications  using 

information  and  communications  technology,  has  closely 

examined the use of satellites as a distribution medium as in the main .pilot project 

Channel E 38• 

The  COMETI  programme,  which  promotes  partnerships  for 

education  and  training  between  universities  and  enterprises,  is  supporting  the 

EuroPACE39  project. 

36  RACE project R1002 investigates the role of satellites in the for:eseen broadband communications 

environment of the following decades.  The project members consist of 10 l~ding European aerospace 
companies. 

37  Developing European Learning through Technological Advance:  this 20 MECU Community programme 
demonstrates how a full range of information and telecommunication technologies for the next decades 
relates to the delivery of education and training. 

38  Channel .E : A programme proposed by the European Institute for the Media for development of an 

education and satellite service using the SES/ASfRA satellite. 

39  EuroPACE, an initiative to deliver expertise training material to R&D sites across Europe.  Sponsorship 

61 

Europe's space policy during the  seventies and  eighties has successfully promoted 

the achievement of a strong European position in the launch rocket field.  With the 

different ARIANE generations, Europe now has a market share of more than 60 % 

of the  satellite  launcher  market,  equivalent  to  annual  revenues  of  540  MECUs 

(1989), with a backlog of 37 satellites to be launched. 

In  the  field  of  the  space  segment,  Europe  has  developed  some  of  the  most 

sophisticated  satellite  technologies  now  existing,  in  particular  in  the  field  of 

telecommunications  satellites 

mainly  due  to  the  successful  research  and 

development of the European Space Agency.  Their latest satellite, OLYMPUS,. is 

one of the largest and most powerful communications satellites yet launched, and is 

now  demonstrating· a  whole  range  of new  services,  particularly  those  using  small 

ground  equipment.  The  users  of Olympus  in  the  field  of education  and  training 

have  been  associated  in  EuroSTEP40.  However,  largely  due  to  the  lack  of 

development  of  a  commercial  satellite  communications  market  in  Europe,  the 

European  export  position  in  this  area  has  been  weak 

the  only  European 

telecommunications  satellites  sold  on  the  world  market  have  been  two  Arabsat 

satellites  whilst  a  consortium  led  by  British  Aerospace  is  constructing  the 

INMARSAT-2 generation of satellites. 

However, 

the  highest  price  for 

the  current  restrictions 

in 

the  satellite 

communications market has been paid in  the field  of the earth segment.  Since the 

European earth  segment market  was  of insufficient  size  for  European industry  to 

develop  its  competence  in  this  field,  less  than  15  %  of  INMARSA T  shipborne 

equipment  is  of European  manufacture  and  European  suppliers  of EUTELSAT 
terminal equipment have also performed poorly.  Only in those fields of the market 
where  liberalisation  is  relatively  advanced  in  Europe,  i.e.  television  receive-only 

antennas, European manufacturers have  scored a  major market share in  Europe  -

over 90 %  of all  equipment sold  in  1989  - even  though  this  equipment currently 

includes many non-European components. 

The  fact  that  - for  a  particular  satellite  system  - the  investment  in  earth  station 
equipment  is  substantially  more  than  in  the  satellites  themselves,  shows  the 

development  potential which  could  be  lost  in  this  area.  Discussion  with  relevant 

European industry  has shown  that they  believe they  will  be able  to  improve  their 

competitive performance once current  restrictions in the earth segment  are lifted. 

comes from Eruope's leading IT &T undertakings. 

40  EuroSfEP : the EUROpean assocation of users of Satellites in Training and Education Programmes ; an 

independent user association of more than 300 organisations from 16 European countries which utilises 
OLYMPUS transmission time for the educational channel for Europe. 

It  is  worth  noting  here  that  studies  undertaken  for  the  Commission  indicate  a 

tripling in the size of the small earth station market, should restrictions be eased. 

62 

63 

In addition, a number of current initiatives will need to be followed further, in order 

to improve the position of the European space industry in satellite communications: 

Full  use  of the  technological  potential  of the  European  Space  Agency,  in 

order to  develop  satellite  technologies  further  for  both  private  and  public 

applications;  steps  towards  this  have  been  taken  with  the  approval  by  the 

ESA Council  in  July  1990  of the ARTEMIS41  experimental mission,  and  a 

data relay satellite programme; 

.: 

Further  application  of 

satellite 

communication 

systems  m 

the 

implementation of Community policies. 

This  concerns  in  particular  the  use  of  advanced  telecommunications  for 

regional development.  Through  its  STAR programme,  the Community has 

given  financial  support for  the setting up  of major satellite ground  stations 

and business services terminals for transmission links. 

It  also  concerns  the  Community  policies  for  education  and  training, 

transport and fishing and for the developing countries. 

Full  attention  to  the  role  of  satellites  in  the  context  of  the  future 

development  of  telecommunications  in  the  Community,  in  particular  as 

regards pan-European services, as well  as for  the development of Integrated 

Broadband Communications (IBC). 

2. 

Satellite  Communications  in  the  Context  of  Community  Audio 
Visual Policy 

Satellites  play  a  key-role  in  the  Community's  audio-visual  policy,  in  particular  as 

regards  pan-European  services.  By  the  end  of  1989,  more  than  60  television 

channels were distributed via satellite across Europe. 

41  Advanced Relay and TEchnology MISsion, an experimental satellite under development by ESA which 
carries a laser optical data relay experiment, an S-band relay payload, an advanced L-band land mobile 
services payload and a number of spacecraft technology experiments. 

64 

2.1. 

Overall Audio-visual Policy 

The Commission has set forth the major policy objectives in the audio-visual field  in 

its  Communication  of  21  February  1990  to  the  Council  and  the  European 

Parliament on audio-visual policy42•  Major regulatory positions have been  defined 

in Directive 89/552/EEC on Television without Frontiers0

. 

In  the  Communication  COM(90)  78  the  Commission  proposes  a  three-pronged 

approach towards the development of the European audio-visual industry: 

Establishment  of  an  environment  conducive  to  the  competitivity  of  the 

audio-visual industry, based on directive 89/552/EEC. 

Harmonisation of national legislation on copyright protection (an important 

issue  for  satellite  broadcasting,  discussed  below),  encouragement  of 

pluralism  and  diversity  in  programme  production,  and  promotion  in  line 

with  Community  competition  policy  are  important  prerequisites  for  the 

establishment of such an environment. 

Promotion of the audio-visual production industries. 

For this  purpose the  Commission  has  proposed  the  MEDIA44  programme 

to contribute to the restructuring of the audio-visual industry while  ensuring 

the  necessary  synergy  with  EUREKA-Audiovisuel.  Both  upstream  and 

downstream  of  production  per  se,  MEDIA  aims  to  develop  a  set  of 

complementary  actions  which  derive  their  value  from  the  Community 

dimension  and  which  are  built  around  four  elements: 

distribution, 

production, training and financing.  The proposal is,  inter alia,  to encourage 

the  emergence,  on  a  European  scale,  of  new  audio-visual  programme 

services  using  innovative  broadcasting  technologies,  including  interactive 

communication by satellite. 

Promotion of new technologies. 

42 

43 

44 

Communications by the Commission to the Council and to the European Parliament on audio-visual policy, 
COM(90) 78, 21.02.1990. 

Council Directive on the coordination of certain provisions laid down by law,  regulation or administrative 
action in Member States concerning the pursuit of television broadcasting activities, 89/552/EEC, 03.10.1989, 
O.J. L 298of17.10.1989, p. 23. 

"MEDIA"  - Action programme to encourage the development of the European Audiovisual Industry,  1991-
1995, COM(90) 132. 

65 

The  constant  innovations  in  the  field  of  new  technologies,  particularly 

concerning  the  new  generation  of satellites  and  the  development  of high 

definition  television  (HDTV),  have  important  implications  for  the  audio 

visual sector.  Along with  the  numerous public  and private sector actors in 

this field,  the Commission participates in this process: 

through 

its 

standardisation 

activities. 

Council  Directive 

86/529/EEC  of  3  November  1986,  was  a  first  step  towards  the 

adoption  of  a  common  standard  for  direct  broadcasting  by 

satellite5'5; 

through 

its  co-ordination ...  role,  which 

is  fundamental 

to 

the 

development and promotion of European HDTV; 

through  its  research  programmes  (notably  ESPRIT,  RACE  and 

AIM). 

Satellite broadcasting to  the general  public  including  both applications in  terms of 

the definition used in  the Radio  Regulations for the Broadcasting-Satellite Service, 

as  well  as  broadcasting  applications  operating  in  the  framework  of  the  Fixed 

Satellite Service  - will  develop  into  the  major component  of transnational  audio 

visual  services  in  Europe.  They  must  therefore  be  seen  in  the  light  of  overall 

Community audio-visual policy. 

2.2. 

The development of High Definition Television (HDTV) in  Europe 

On  27  April  1989,  the  Council  adopted  a  decision  on  a  plan  of action46  on  the 

introduction  of HDTV  in  Europe. 
It  is  envisaged  that,  following  the  successful 
completion of research and development,  HDTV services will  be introduced iri two 

stages. 

In  a  pre-operational  phase  starting  in  1990,  experimental  and  pilot 

transmissions will be made.  It is  expected  that, from  about  1992 to  1995, a  number 

of  operators  will  start  offering  regular  services  in  HDTV  with  a  wide  range  of 

programmes, including films. 

It is generally accepted that 1995 will  see widespread availability of HDTV services 

throughout Europe. 

45  Council Directive on the adoption of common technical specifications of the MAC-packet family of standards 

for direct satellite television broadcasting, 88/529/EEC, O.J. L 311, 03.11.1986, p. 28. 

46  OJ. L 142 of 25.05.1989, p.  1. 

66 

A  major  objective of the Council  Decision  mentioned  above  is  to  ensure that the 

European standard for HDTV programme production and exchange is adopteJ as a 

world-wide standard. Considerable progress  has been  made on the standardisation 

issue.  At the CCIR plenary meeting in  Dusseldorf in  May  1990,  23  out of 34  basic 

parameters  of  the  production  standard  were  agreed  on.  The  European  1250/50 

HDTV standard,  so  called  because  it  transmits  1250  lines  of picture  information 

and operates at 50Hz,  is being developed by  a consortium of thirty or so  European 

manufacturers  and  broadcasters  (including  some  from  non-Member  States)  in 

~ureka Project  No.  95.  This  Eureka  95  group  is  also  developing  the  hardware 

which will  be used  to  demonstrate  the system.  The  Commission works  to  ensure 

close co-operation betwec::-n  the MEDIA programme and Eureka 95.  Furthermore, 

it  has  initiated  a  series  of  Audio-visual  Forums,  attended  by  all  those  with  an 

interest in HDTV, at which the work of Eureka 95  is discussed. 

In July  1990,  at the instigation  of the Commission  and  the European Broadcasting 

Union,  a  GEIB  (Groupement  Europeen  d'lnteret  Economique)  was  formed, 

consisting of industry, broadcasters.  independent TV and film  producers and other 

interested parties.  The objective of the group, which  is  known as Vision  1250,  is to 

provide a marketing-oriented complement to the technical development work being 

carried out by Eureka 95.  Specifically,  it will,  with  financial  support from  Member 

States  and  the  Community,  make  hardware  developed  by  Eureka  95  available  to 

programme makers; it will set up demonstrations of HDTV at trade fairs; and it will 

organise  the  making  and  display  of  HDTV  programmes,  especially  coverage  of 

major sporting occasions.  The  Group's  activities  will  be carried  out from  1990  to 

1994; it is anticipated that this initiative will  result in  many high-quality productions 

using  the  1250  system  being  made  and  shown  around  the  world  during  this  four 
year period. 

2.3. 

The Role of Satellites in  HDTV 

As mentioned in  chapter III.,  it  is  generally accepted  that satellites will  become the 

foremost 

initial  transmission  medium  for  HDTV. 

Indeed, 

the  Eureka-95 

programme  depends  on  continued  expansion  of  Direct  Broadcasting-Satellite 

capacity for  its commercial success,  and  hence for  the establishment of a  European 

lead  in  TV development,  despite  the continuous  involvement  of the United  States 

and Japan in the field  of HDTV. 

67 

Direct Broadcasting-Satellites covering Europe and Africa  are regulated under the 

agreement reached  at  the 1977  World  Administrative  Radio  Conference (refer  to 

chapters II. and III.).  This agreement, commonly referred to as the W ARC 77 plan, 

allocated the Broadcasting-Satellite Service (BSS)  frequency band to national DBS 

services. Several orbital locations were assigned to Europe; each European country 

was  allotted  five  channels  at  one  of the  orbital  locations.  The  satellite  footprints 

were intended to give  national coverage only,  though some spill-over  into adjacent 

countries  would  be  unavoidable. 

It  was  envisaged  that  individual  household 

~eception would  be possible in  each country using antennas of diameters less  than 

90 cm; therefore high power satellites were required. 

As  explained  in  chapter  III.,  in  a  number  of  important  respects,  satellite 

communications has evolved in ways  unforeseeable in  1977.  In particular, improved 

receiver  technology  means  that  reception  with  a  small  antenna  no  longer 

necessitates  the  use  of a  high-power  satellite:  television  signals  transmitted  over 

medium  power  satellites  using  the  Fixed-Satellite  Service  frequency  bands,  where 

most  of  the  current  channels  are  transmitted 

in  particular  programmes 

transmitted  via  the  EUTELSAT-I  satellites, 

the  Telecom-I  satellites,  DFS 

Kopernikus and ASTRA  -

can  be  received  with  an  antenna  of around  90  cm  in 

most parts of Europe. 

This  means  that currently  the majority  of channels  in  Europe  are  transmitted  via 

medium-power satellites.  While  several  DBS  satellites conforming  to  the  WARC 

77  plan  have  been  launched  in  Europe,  most  of those  currently  in  operation  will 

become life-expired just as HDTV becomes widely available, around  1995-97. 

There  are,  in  fact,  three  second-generation  DBS  systems  under  consideration  in 

Europe:  all  of these propose sub-regional  (mostly  language-based zonal)  coverage, 

more channels  per  spacecraft  and  less  power  per  channel.  While,  a  priori,  these 

systems will  have substantial advantages with  regard  to  existing  DBS  systems,  they 

face  a  major  obstacle:  they  are  not  in  agreement  with  the  WARC 77  plan.  Each 

satellite would  therefore have  to  be  individually  co-ordinated  with  all  the satellites 

and  terrestrial  transmission  systems  with  which  it  could  possibly  interfere  - a 

process  which  would  be  expensive,  time-consuming  and  of  doubtful  success.  It 

seems inevitable,  therefore, that substantial revision of the criteria contained in  the 

WARC 77  plan will  be essential  to  the  implementation  of future  generation  DBS 

satellites in Europe, and hence to the success of European HDTV. 

68 

2.4. 

Conditional Access Systems 

The further  evolution  of satellite  television  and  other  point-to-multipoint systems 

will require the further development of agreements and standardisation in the field 

of control of channel access.  There are three main groups with a right or interest in 

either  limiting  or  controlling  the  audience  which  can  have  access  to  a  satellite 

broadcast signal: 

Business TV and/ or videoconferencing operators and  users.  As the  use of 

closed-user-group  television  and  videoconferencing  as  business  tools  to 

create competitive advantage  grows,  so  too  does  awareness  of the  issue of 

confidentiality.  Both  operators  and  users  are  keenly  aware  of  the 

importance  of "scrambling"  or  disguising  a  signal  in  such  a  way  that  only 

authorised entities can receive it  in  its original format. The issue of security 

is  perceived  as  being  of special  importance where  satellite  transmission  is 

concerned,  though  terrestrial  transmission  systems  are  by  no  means 

necessarily secure. 

Authors and producers of material broadcast.  As mentioned, the resolution 

of copyright  issues  is  of vital  importance  to  the development  of European 

television. 

Use of a satellite beam which covers all  of Western Europe would bring the 

potential audience into the hundreds of millions.  It is clearly in  the interests 

of  both  broadcasters  and  copyright  holders  to  have  a  clear  Community 
position with regard to a regime for copyright issues. 

Satellite broadcasters offering pay-per-view TV.  This is  a  commercial  issue 

for  both  satellite  and  terrestrial  broadcasters,  which  may  opt  for  a  system 

whereby customers,  rather  than  paying  a  once-off or  annual fee  to  receive 

programmes,  are  charged  "per  view",  i.e.  per  programme  or  per  hour's 

viewing time. Conditional access systems for  pay TV must achieve a balance 

between  low  cost  and  the  ease  with  which  the  encryption  system  can  be 

broken to allow unauthorised viewing. 

As  regards  the  application  of  copyright 

to 

television  broadcasting  in 

the 

Community,  the Commission will  soon  make  its  proposals  in  the context  of audio 

visual policy and its general policy on copyright. 

69 

As regards the implementation of conditional access systems, one major obstacle to 

a  successful  resolution of the issue  has been  the lack  of a  common European  (or 

international) standard for encryption. 

In  its  Resolution  86/C160/01  of 9 June  1986,  on  the  use  of videoconference  and 

videophone techniques  for  intergovernmental  applications,  the Council invited  the 

Commission  to  resolve  problems  specific  to  the  use  of  videoconf erence  and 

videophone facilities  by  Member States governments and  Community  institutions, 

including  confidentiality.  The  Community's  RACE  programme  is  studying 

communications integrity  for  all  telecommunications  services  and  has  listed  ba~ic 

requirements  for  encryption  devices. 

It  will  be  important  to  develop  suitable 

European standards in this area. 

With  its  proposals  of  July  1990  on  data  protection  and  security  of  information 

systems47,  the Commission has submitted a comprehensive approach  to this area  -

including  data  protection  and  protection  of  priva'-1'  in  the  field  ·of  public  digital 

telecommunications networks  - and proposed a plan of action of the development 

of information security measures in this field. 

3. 

The larger European dimension 

With  the growing  interrelationships between  the Community and  its  neighbouring 

countries, the dramatic changes in  Central and Eastern Europe, and the emergence 
of the larger European dimension as a general determinant of C~mmunity policy, a 
Community approach  to satellite  communications gains  its full  importance only  if 
seen in the larger European dimension. 

The Community  has  strong  common  interest  in  satellite  communications  with  its 
neighbours via joint membership  - in  many cases  - of the major organisations of 
most relevance to satellite communications in  Europe.  Figure 6 shows membership 
of Community  countries,  EFTA  countries,  the  countries  of central  and  Eastern 

Europe and  other neighbouring countries  in  EUTELSAT,  ESA,  ETSI,  CEPT and 
INTELSAT, INMARSA T and Intersputnik. 

47  See COM(90) 314 of 24th September 1990, in panicular Proposal for a Council Directive concerning the 
protection of personal data and privacy in the context of public digital telecommunications networks, in 
panicular the Integrated Services Digital Network (ISDN) and public digital mobile networks and Proposal 
for a Council Decision in the field of information systems security. 

70 

3.1 

·  Cooperation  with  EFfA  and  other  neighbouring  countries.  and  the  European 

Conference of Postal and Telecommunications Administrations (CEPT) 

The Community  has  traditionally  strong  ties  in  satellite  communications with  the 

member states of the European Free Trade Association,  in particular via common 

membership  -

in  most  cases  - of both  Community and  EFf A  countries  in  the 

relevant organisations (compare Figure 6). 

As the Community and the European Free Trade Association further develop their 

relationship in a  global context and  move towards a  common European  Economic 

Space,  common  interests  in  this  field  will  further  intensify,  particularly  as  in  a 

.. 

number  of EFf A  member  states  current  trends  are  pointing clearly  towards  the 

review of regulatory conditions in the sector and the liberalisation of both one-way, 

and  - in some cases  - ·two-way satellite communications~ 

A  major  framework  of  consultation  on  satellite  communications  in  Europe  has 

traditionally  been  the  European  Conference  of  Postal  and  Telecommunications 

Administrations  (CEPT),  which  includes  all  Community  and  EFTA  countries,  as 

well as a number of other countries such as Turkey and Yugoslavia (see Figure 6). 

CEPT  has  various  specialised  committees  which  act  in  the  field  of  satellite 
communications  in  Europe.  The  main  committees  involved  are  the  ccrs 
(Coordination  Committee  for  Satellite  Telecommunications)  and  its  subordinate 

bodies and the CAC (Commercial Action Committee) under which  a  VSA T  group 

has  been  established.  Since  these  bodies  have  a  function  in  defining  the  role  of 

satellite  communications  within  the  developing  European  telecommunications 

network it is necessary for  the Community to  have a  complete dialogue with  them 

on future satellite communications evolution in Europe. 

Within the general review  of telecommunications policies currently taking place in 

Europe, CEPT is currently undergoing major reforms, such as the separation within 

the organisation of regulatory and operational functions. 

The  two  major  reforms  achieved  to  date  are  also  of key  importance  for  satellite 

communications:  the creation,  in  1988,  in Sophia-Antipolis,  Nice,  of the European 

Telecommunications  Standards  Institute  (ETSI)  and  the  transfer  of  CEPT's 

telecommunications  equipment  standardisation  activities  to  this  institution;  and 

the  creation  of the  European  Radiocommunications  Committee  (ERC)  and  the 

European Radiocommunications Office (ERO) currently under way. 

Figure 6 

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EUROPEAN COUNTRIES 

MEMBERSHIP IN ORGANISATIONS OF MOST INTEREST TO SATELLITE COMMUNICATIONS 

IN  EUROPE 

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:5~ 

:5~ 

:5~ 

..... 

...... 

1  .... 

...... 

...... 

...... 

...... 

1 •  

1 •  

Bulgaria 

Czechoslovakia 

Hungary 

Poland 

Romania 

Yugoslavia 

Cyprus 

Malta 

Monaco 

Rep.  of San Marino 

Turkey 

Vatican City 

Japan 

United States 

USSR 

•  •  •  •  •  •  •  •  •  •  •  •  •  •  Member 
....  .,.. 
:5~  •• application  to  join  pending 
.,.(1) ••••••••••••• Associate  Member 
• 

73 

While ETSI is called upon to provide the technical basis for  many of the necessary 

measures required in satellite communications (see chapter V.),  the new European 

Radiocommunications Committee and  the European  Radiocommunications Office 

-

to  be located  in  Copenhagen  - offer  a  new  basis  for  strengthening frequency 

coordination  in  Europe.  Council  Resolution  90/C 166/0248  defines  as  a  major 

policy  goal  "working  in  particular  towards  the  timely  allocation  of  sufficient 

frequency  resources  to  mobile  and  satellite  applications  ... ",  and  welcomes  the 

"current  reform  of  radio  frequency  planning  and  coordination  mechanisms 

\lndertaken  by  the  CEPT,  and  in  particular  the  decision  to  create  a  European 

Radiocommunications Office allowing for  the opinion of all interested parties to be 

taken  into  account  and  having  an  appropriate  organisation  ... ". 

It  invites  the 

Commission  and  the  Member  State~  and  the  CEPT  "to  support  the  further 

development of the new framework ....  making available all the resources necessary 

to ensure the efficiency of its operation and the rapidity of its response ... ". 

3.2. 

Importance  of  satellite  communications  for  the  developments  m  Central  and 

Eastern Europe 

The  dramatic  changes  in  Central  and  Eastern  Europe  have  given  the  rapid 

development of satellite communications in  Europe a new political dimension.  The 

rapid build-up of the telecommunications infrastructure of the countries of Central 

and Eastern Europe is  indispensable for  the integration of these countries into the 

larger European dimension and the successful reconstruction of their economies, as 
emphasised by the Commission in its Communication of 19 June.199049.  One of the 

major advantages of satellite communications  - rapid  deployment and  immediate 

large  area  coverage 

- give  it  a  key-role  in  this  context,  in  the  fields  of  both 

telecommunications and broadcasting. 

The countries  of Central  and  Eastern  Europe are  therefore  turning  to  the  use  of 

satellite systems  to  improve  their  telecommunications links  with  Western  Europe: 

Poland became  the 27th  member of  EUTELSAT in  February  1990,  Romania  has 

since  joined,  and  negotiations  are  underway  with  Czechoslovakia  and  Hungary. 

Further, it is  understood that the third flight  model of DFS-Kopernikus,  a  national 

48  Council Resolution of 28 June 1990 on the strengthening of the Europe-wide cooperation on radio 

frequencies, in particular with regard to services with a pan-European dimension, OJ. C  166 of 07.07.1990, p. 
4. 

49  Communication from the Commission to the Council and the European Parliament on the Community's 

relations with the countries of Central and Eastern Europe  - the role of telecommunications, COM(90) 258 
of 19.06.1990. 

74 

German  satellite  system,  will  provide  telephony, 

television  distribution  and 

data/business communications throughout the geographical regions of the Federal 

Republic of Germany including  its  newly  integrated  eastern part.  Several Central 

and Eastern European countries  - Poland,  Czechoslovakia,  and  Bulgaria  - are 

members of INMARSA T, and expect to use this service both for maritime and land 

mobile use (see Figure 6). 

The possibility of using small terminal systems to provide rapid large area coverage 

is the subject of active consideration by several Eastern European countries.  At the 

same  time  they  are  urgently  examining  the  possibility  of  permitting  additional 

.. 

providers in order to stimulate the early provision of improved telecommunications 

services, both nationally and for cross-border traffic. 

Given that  in  all  countries of Central and  Eastern  Europe the  terrestrial network 

infrastructure  is  largely  underdeveloped,  the  introduction  of VSA T  networks will 

present  itself  as  an  obvious  and 

-

in  many  cases 

- most  effective  means  of 

communications. 

Introduction  of  satellite  technology  based  on  large-scale  earth 

stations  will  often  not  provide  rapid  wide-area  coverage,  without  the  necessary 

terrestrial interface for interconnection. 

It seems  likely  that  -

in  the  context  of the  current  general  economic reforms  in 

these countries  and  the  development  towards  a  market  economy  -

the  situation 

will lead rapidly to a  review of the regulatory provisions concerning deployment of 

satellite  systems  in  the  countries  of  Central  and  Eastern  Europe.  If concurrent 

action is not taken within the Community,  this could well  lead to liberal availability 

of satellite networks in Central and Eastern European countries in advance of such 

availability in  the Community  - with  a  consequential dramatically  negative  effect 

on the development of Europe-wide systems. 

While  common  satellite  terminal  networks  could  develop  rapidly  between  the 

countries of Central and Eastern Europe and the Community  - if the Community 

adjusts  its  own  regulatory  conditions  in  the  sector  -

the  mutual  interests  in  this 

sector between the Community and the USSR will  need further analysis.  Based on 

its  major  capabilities  in  space  systems,  the  USSR  has  a  well  developed  usage  of 

satellite systems.  It is understood that more than 95  % of viewers receive television 

by means of the joint use of satellite television broadcasting systems and terrestrial 

distribution  facilities. 

In  international  satellite  communications,  the  USSR  has 

been active with  the establishment of the  Intersputnik satellite system  (see Figure 

~) and  in  the  context  of the  lnterkosmos  programme  for  the  study  of  problems 

involved  in  implementing  national  and  regional  communications.  The  USSR  is 

already  a  member  of  INMARSA T,  and  also  renewed  efforts  to  offer  USSR 

membership in INTELSAT recently became public. 

75 

4. 

External  Aspects  and  the  International  Environment  of Satellite 
Communications 

A  coherent  Community  approach  to  satellite  communications  must  take  full 

account  of  the  international  environment  of satellite  communications  in  Europe 

and of the Community's general interests in  external relations. 

As  shown  in  chapter  II.,  all  Community  Member  States  have  obligations  and 

existing international commitments which they must respect  - but they should also 

work jointly towards change where required. 

The results of the GAIT-negotiations in the context of the current Uruguay-Round 

will  fundamentally  influence  the  Community's  relations  with  its  major  trading 

partners  in  this  area  -

the  United  States  and  Japan  - but  could  also  have  an 

impact  on  the  international  environment  in  which  satellite  communications  exist. 

With the growing number of non-European satellites used  for  European coverage, 

co-ordination with regard to third countries in  the area of satellite services will have 

to be strengthened.  Finally, a  Community satellite communications policy  must be 

seen in the context of the overall  relations  of the  Community with  regard  to  other 

parts of the world:  developing its relations with  Mediterranean countries, where in 

the  field  of  satellite  communications  mutual  beneficial  links  have  already  been 

established;  contributing  to  the  full  use  of  the  potential  of  satellites  in  the 

developing countries  - in  the context  of its  relations with  the African,  Caribbean 

and Pacific (ACP) countries in  the framework  of the current Lome convention,  as 

well as assisting satellite-based development projects elsewhere. 

4.1. 

International Telecommunications Union (ITU) 

As shown  in chapter II.,  the  International Telecommunications  Union is  central to 

the  development  of  satellite  communications,  notably  via 

its  key-role 

in 

international frequency  co-ordination  and  the  allocation  of the  orbital  resource  -

with  the  activities of the International  Frequency  Registration  Board  (IFRB)  and 

the World and Regional Administrative Radio Conferences (WARCs and RARCs). 

76 

Other  main  committees  concerned  are  the  International  Radio  Consultative 

Committee  (CCIR)  and  the  International  Consultative  Committee for  Telegraph 

and Telephone (CCITI)50. 

The working of the IFRB and the role of the WAR Cs has been discussed  in detail 

in  chapter  II.  The  CCIR  is  responsible  for  the  study  of technical  and  operating 

questions  on 

radiocommunications 

and 

for 

the 

issuing  of 

relevant 

recommendations. 

The CCITI issues recommendations related to standards and specifications as well 

as  to  the  operation  and  charging  of  public  telecommunications  services. 

·it 

investigates  the  interworking  of telecommunications  satellites  with  the  terrestrial 

network,  especially  in  today's  environment  of wide and  expanding use  of FSS  and 

MSS satellites for telecommunications services. 

As set out in the Council Resolution of 30 June 198851, common positions are to be 

adopted  in  international  fora.  This  was  the  case  with  regard  to  the  1988  World 

Administrative Telegraph and Telephone Conference (WA TI-C) where a  new  set 

of International Telecommunications  Regulations was  negotiated.  It  is  the case in 

the  current  negotiations  in  the  framework  of  the  CCIR  on  the  future  High 

Definition  Television  standard. 

It  should  be  the  case  in  the  future,  wherever 

relevant. 

Following Council agreement in  1988,  the Community applied for,  and was granted, 

observer status at the ITU Committees and Conferences. 

Concerning frequency coordination, Council Resolution 90/Cl66/0252  calls for "the 

working out of common European positions on  the  use of the frequency  spectrum 

concerning international  frequency  co-ordination,  in  particular  with  regard  to  the 

International Telecommunications Union and its conferences on radio frequencies", 

and  based  on  the  current  reform  of  frequency  coordination  in  the  CEPT  (see 

above). 

50  A further body, the Telecommunications Development Bureau  - newly created in the context of the reform 

of ITU activities subsequent to the decisions taken at  the ITU plenipotentiary conference held at Nice in 1989 
(Art. 14 of the Constitution)  - could gain substantial importance in the promotion of satellite 
communications for the developing countries. 

51  Council Resolution of 30 June 1988 on the development of the Common Market for telecommunications 

setvices and equipment up to 1992, OJ. C '257 of 04.10.1988, p.  1. 

52  Council Resolution of 28th June 1990 on the strengthening of the Europe-wide cooperation on radio 

frequencies, in particular with regard to services with a pan-European dimension, OJ. C 166 of 7.7.1990, p. 4, 
(90/C 166/2). 

77 

The major  immediate challenge  for  the  European Community will  be to  define  a 

common position with regard  to the next  World Administrative Radio  Conference 

which  will  take  place  in  1992  (WARC  92),  and  - based  on  the strengthened  co 

operation  mechanisms  of  the  CEPT  -

to  create  the  necessary  strong  political 

mandate  at  Community  level  required  for  effective  co-ordination  in  this  central 

area. 

4.2. 

General A1u-eement on Tariffs and Trade {GA TT) 

Virtually  all  aspects  of  the  Internal  Market  for  telecommunications  are  being 

influenced,  directly  or indirectly,  by  the  issues  discussed  in  the context  of the  on 

going trade negotiations in the Uruguay Round. 

Positions  in  the  Uruguay  Round  are  expressed  by  the  Community  in  conformity 

with Article 113  of the Treaty. It is likely that the Community's negotiating position 

will remain closely linked to progress in  the Community's internal regime,  and it is 

important  that  the  Community's  internal  and  external  positions  should  be 

consistent. 

Amongst the  current areas  of negotiation,  two  are of immediate  relevance  to  the 

satellite sector: services and technical barriers to trade. 

With  regard  to  trade  in  services,  the  negotiations  in  Geneva  have  focused  on  the 

elaboration of a  framework  of principles,  inspired  by  the  General Agreement  on 

Tariffs and Trade (GATI), which would be applicable to all trade in services. 

This  framework  will  be  modified  or  complemented  by  sectoral  annotations,  or 

annexes,  to various sectors in order to  take into account  their specific aspects.  For 

telecommunications, 

the  annotations  or  annex  would  cover, 

in  particular, 

appropriate  conditions  of  access  to  and  use  of  the  network.  The  principles 

establishing Directive 90/387 /EEC53  on Open Network  Provision  (ONP)  form  the 

basis for the Community's position in  this sector. 

With regard  to technical barriers  to  trade.  the Community is  seeking to  establish a 

better balance under the GA TT agreement by extending its provisions, in particular 

regarding  transparency  of  specifications  adopted  by  sub-national  and  private 

standardisation bodies. 

53  Council Directive of 28 June 1990 on the establishment of the internal market for telecommunications 

services through the implementation of Open Network Provision. 

Once  adopted,  the  new  GA TI  agreements  should  provide  a  mechanism  for 

extending liberalisation of trade in satellite services and equipment  ..  in the context 

of general telecommunications trade  - to third countries in a balanced ~ay. 

78 

4.3.  Co-ordination of positions with regard to Third Country providers 

As shown  in Figure 3, with  the diversification  of the  provision of space segment, a 

growing  number  of non-European  satellites  are  emerging  which  can  be  used  for 

services with European coverage. 

As mentioned in chapter III.,  six  US  entities hold  conditional construction permits 

by the US Federal Communications Commission for international separate satellite 

systems.  One entity,  Pan  American  Satellite/ Alpha-Lyracom  has  operated  since 

1988  an  international  separate satellite  system  which  provides,  inter  alia,  satellite 

services in a number of Member States of the Community.  Final authorisation for 

the Orion  system  is  pending, with  a  launch  date planned  for  1993.  Launch  dates 

and  coverage  for  the  Gorizant  and  Reduga  satellites  are  not  published,  though 

several  are  known  to  be  in  orbit.  They  are  owned  by  the  USSR  and  leased  to 

Intersputnik. 

Currently,  the Community  Member States negotiate  individually landing  rights  for 

- and access  to  - non-European satellite systems,  other than  the INTELSAT and 

INMARSAT space segments.  In  the future,  stronger coordination in  this area will 

be needed, in order to avoid distortion of market conditions within  the Community 
on  the one hand,  and on  the other  hand  to  gain  a  stronger bargaining position  for 

negotiating equivalent access to Third Countries for equivalent access for European 

satellite systems. 

The  above-mentioned  GA TI principles  on  telecommunications  trade  in  general, 

currently being defined, would seem to provide a suitable basis, on which to develop 
a common coordinated approach and  balanced  arrangements with Third Countries 

in this area. 

4.4.  Relations  with  the  Mediterranean,  Africa,  Latin  America  and 

other parts of the world 

79 

The Community Member States have  developed  relations on a world-wide basis in 

the field  of satellite  communications,  both  via  common  interests  in  the ·context of 

the  international  coordination  mechanisms  of the  ITU  in  the  field  of  frequency 

spectrum and orbital allocations, and of INTELSAT and INMARSA T, as well as by 

using satellite communications for assisting regional development. 

In respect  of industrialised  countries,  the Commission,  in  the Green  Paper on  the 

development  of  the  common  market  for 

telecommunications  services  and 

i 

equipment54,  has emphasised the importance for  the Community of cooperation in 

the international frameworks with the other industrial countries, such as the United 

States, Japan,  Canada, Australia  and  New  Zealand, who  have  developed advanced 

satellite  communications  capabilities. 

In  addition, 

the  Commission  has 

recommended 

the  setting  up  of  a  coherent 

strategy  with 

regard 

to 

telecommunications in its relations to the Third World. 

In  the  framework  of its  relations  with  the  Third  World,  the  Commission  has  not 

only  emphasised  the  necessity  to  adopt  in  the  field  of  telecommunications  a 

coherent  strategy  towards  developing  countries  but  also  stressed  the  objectiv_e  of 

using  satellite  communications  systems. 

In 

its  Communications  on 

the 

Community's approach to space policy set out above,  it  has considered that priority 

use  should  be made  of satellite  communications in  the field  of rural  and  regional 

development and aid to Third World countries. 

A  special  common 

interest 

in  satellite  communications  exists  among 

the 

Community,  the  Mediterranean  and  the African  countries.  On  the  one  hand,  the 

relationship  established  between  the  Community  and  most  of  these  countries  is 

particularly  close  and  will  strengthen  and  grow  even  more  because  of  the  new 

dynamism  resulting  from  the  completion  of  the  internal  market.  On  the  other 

hand, Europe and Africa share frequencies and the orbital resource in the same, so 

called,  ITU  region  (Region  1).  The geographical  proximity  at  least  in  the case of 

Mediterranean  countries  gives  also  a  possibility  in  certain  cases  of  common 

coverage of these countries and of various European regions. 

Therefore,  this particular situation  requires careful consideration and a  number of 

specific solutions in order to best accommodate the needs of all interested parties. 

54  Green Paper on the Development of the Common Market for Telecommunications Services and Equipment, 

Document COM(87) 290 final, 30.06.1987. 

80 

At  present,  a  close  cooperation  has  been  established  between  European  space 

industry  and  the Arab  nations  in  the case  of the  Arabsat  system,  with  the  use  of 

European  technology  and  the  purchase  of  two  satellites  from  a  European 

manufacturer.  ARABSAT has  recently  issued  a  request for  tenders for  its  second 

generation satellite system for which various  European satellite  manufacturers are 

expected to bid. 

A special framework of cooperation is  offered by  the Lome Convention which links 

the  Community  to  a  large  number  of  developing  countries.  The  Commission 

conducts  financial  and  technical  cooperation  projects  to  assist  various  African, 

of 

Caribbean  and  Pacific  (ACP)  countries which  are  signatories  to  the  Convention. 

This  may  be  expected  to  be  an  ongoing  requirement  for  the  Community  in  the 

satellite communications field,  as  these  techniques  become  more and  more widely 

used at regional and national level in  newly industrialised and developing countries. 

Regarding  countries  in  Central  and  South  America  in  Asian  countries,  the 

Community has developed a cooperation since  1976 and considers that it should be 

reinforced.  Because  of  the  very  large  requirements  and  the  size  of  the  forty 

developing  countries  involved,  which  represent  a  population  of  2300  million 

inhabitants,  the  Commission  considers  that  telecommunications  satellites  systems 

constitute a privileged means to facilitate their rural and regional development. 

At present,  the Community  undertakes,  together  with  the Andean  Pact  countries, 

studies for the establishment of a pan-regional satellite system, CONDOR. 

To summarize, major requirements for the Community in this area should be: 

close  cooperation,  in  the  most  appropriate  way,  with  countries  in  ITU 

Region  1, 

in  order  to  provide  for  required  coordination  concerning 

European satellite systems and systems in  other parts of the Region, such as 

the planned African Satellite Communications System  (RASCOM) which  is 

sponsored by a number of African countries and for which  the ITU is  acting 

as coordinator; 

continuing  emphasis  on  the  use,  and  where  possible,  the  development  of 

satellite communications in  the  aid  programmes by  the  Community for  the 

developing countries; 

81 

in  a  more general context, close  international cooperation with  both other 

industrialised countries  and  the  developing world  in  the framework  of the 

International Telecommunications  Union and  especially with  regard  to  the 

forthcoming W ARC conferences, as well as with  regard to the international 

telecommunications  satellite  organisations,  in  order  to  promote  change 

where required, taking full  account of the special interest of the developing 

countries 

in 

the  balanced  development  of  world-wide 

satellite 

communications. 

5. 

Summary 

The future  evolution and  regulation  of satellite communications in  the Community 

must be seen in a global policy context. 

Satellite  communications  is  by  far  the  largest  commercial  application  of  space 

technology. 

The European Space Agency's cumulated  total  effort  in  space  up  to  the year 2000 

will  total  30  billion  ECUs  in  addition  to  national  European  space  programmes. 

With  the  different  Ariane  generations,  Europe  has  developed  a  market  share  of 

more than 50  % of the world satellite launcher market. 

In the field  of telecommunications satellites,  mainly  due  to  the successful research 

and  development  of the  European Space  Agency,  Europe  has  developed  some  of 

the  most  sophisticated  satellite  technologies.  However,  due  to  the  lack  of 

development of a commercial satellite communications market in  Europe, Europe's 

market position  in  this  area  has  remained weak, compared to the booming US and 

Japanese markets. 

An adjustment  of the  regulatory conditions  of satellite communications in  Europe 

therefore  will  determine,  to  a  large  extent,  the  commercial  success  of  Europe's 

effort to gain a future-proof position in space. 

It will  also determine the success of a major component of the Community's audio 

visual  policy,  the  early  introduction  of  High  Definition  Television  (HDTV)  in 

Europe  - given  that it is generally accepted that satellites will become the foremost 

initial transmission medium for its Europe-wide introduction. 

82 

The future development of the Community's satellite communications market only 

gains its full  importance when seen in  the larger European dimension  - the future 

European  Economic  Space  and  the  dramatic  changes  in  Central  and  Eastern 

Europe. 

The  rapid  build-up  of the  communications  infrastructure  in  Central  and  Eastern 

Europe is  indispensable for  the reconstruction of the economies of these countries. 

Given  the  lack  of an  adequate  terrestrial  infrastructure,  the  free  development  of 

VSAT  terminal  networks  will  off er  rapid  advance  to  these  countries.  Given  the 

parallel trends in a number of EFI' A countries towards a  more liberal environment 

f 

for  these  systems, 

lack  of  adjustment  of  the  regulatory  conditions  by  the 

Community  for  such  systems  would  leave  the  Community  lagging  behind  the 

developments in the other parts of Europe, effectively blocking the development of 

true  trans-European  systems.  At  the  same  time,  the  reforms  undertaken  by  the 

European  Conference  of  Postal  and  Telecommunications  Administrations  in  the 

fields of standards and frequency coordination and planning  - with the creation of 

ETSI  on  the  one  hand,  the  European  Radiocommunications  Committee  and  the 

European Radiocommunications Office on the other  - prepare the ground for  the 

establishment of regulatory conditions which will promote Europe-wide services. 

Finally,  the  current  global  development  in  the  International  Telecommunications 

Union and the principles to be agreed  in  the context of the GA TI Uruguay Round 

negotiations will  facilitate  the  future  development  of satellite communicalions at a 
world  level  but  also  require  the  strengthening  of coordination  between  Member 
States.  This concerns both coordination  of positions with  regard  to Third Country 

providers,  as  well  as  the  further  development  of  relations  in  this  field  with  the 
Mediterranean, Africa, Latin America and other parts of the world. 

A  special  common  interest 

in  satellite  communications  exists  between  the 

Community and  the Mediterranean  and  the African countries, both because of the 

close global relationships which  have developed  between the Community and many 

of these  countries,  as  well  as  because  of  the  fact  that  Europe  and  Africa  share 

frequencies and the orbital resource  in  the same ITU  Region. 

V.  EXTENDING THE PRINCIPLES OF COMMUNI1Y 
TELECOMMUNICATIONS POLICY TO  SATELLITE 
COMMUNICATIONS 

83 

Satellite communications were set aside for  later consideration in the Green Paper 

on  the  development  of the  common  market  for  telecommunications  services  and 

equipment55 •  The consensus  achieved  on  the  basis  of this  Green  Paper,  and  the 

subsequent  political  decisions  on  the  general  future  regulatory  conditions  of the 

i 

telecommunications  sector  in  the  European  Community  -

in  particular  at  the 

Telecommunications  Council  on  7th  December  1989  - can  now  be  the  basis  on 

which 

to  build  a  common  regulatory  position 

in 

the  field  of  satellite 

communications. 

The  obligation 

to 

complete 

the  Community's 

internal  market 

for 

telecommunications  by  the  end  of  1992  cannot  be  achieved  unless  agreement  is 

reached on  a  common  set of rules.  Failure to  do  so would  amount to  maintaining 

the fragmentation  of the Community  market and  blocking the development  of the 

Community's  satellite  industry.  In  particular,  a  broad  consensus  is  needed  with 

respect  to  the  orientation,  scope  and  timescale  of  the  necessary  measures.  The 

Green Paper on Telecommunications  aimed  at  bringing  about  this consensus,  and 

the Council of Ministers, in  its Resolution of 30 June 198856,  unanimously approved 

the  main  conclusions  of  the  Green  Paper.  In  doing  so,  the  Council  identified 

satellite communications as the following major goal in  telecommunications policy: 

"working  out  a  common  position  on  satellite  communications,  so  that  this  new 

information  medium  can  develop  in  a  favourable  environment,  taking  account  of 

the general rules of operation and exploitation  of the network environment, as well 

as  the  competition  rules  of the  Treaty  and  existing  international  commitments  of 

the Member States". 

55  Towards a Dynamic Economy  - Green Paper on the Development of the Common Market for 
Telecommunications Seivices and Equipment, Document COM(87) 290 final, 30.06.1987. 

56  Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 

seivices and equipment up to 1992, OJ. C 257of04.10.1988, p.  1. 

1.  General principles 

Applying  the  general  consensus 

achieved  in  telecommunications  to  satellite 

communications should build on a number of broad principles: 

84 

the future  regulatory conditions  for  satellite  communications  must  respect 

those  regulatory  safeguards  which  Member  States  may  apply  in  the 

telecommunications  sector  in  accordance  with  the  general  consensus  on 

telecommunications  already  achieved,  but  should  not 

introduce  any 

additional  restrictions  beyond  those  related  to  specific  conditions  in  the 

field of satellite communications, where these can be justified in accordance 

with Community law  - in  particular competition rules  - and international 

commitments; 

they should provide for a dynamic development of earth segments and space 

segments  in  the  Community,  and  meet  the  conditions  required  by 

enterprises to  operate in  the  Community-wide  1992  market;  allow  the full 

development  of the  Community's  space  industry  in  this  area;  and  support 
the Community's policy for a common audio-visual space; 

they must fully apply Community law to this sector.  The Community cannot 

admit  - or afford  -

the  withdrawal  of a  sector  of such  vital  importance 

from  the  working  of the  single  market,  or  from  the  full  application  of its 

rules. 

The  Green  Paper  on 
for 
telecommunications services and  equipment  has  recalled  the Articles of the Treaty 
of most relevance to telecommunications: 

the  common  market 

the  development  of 

Article 3f requiring the institution of a system  ensuring that competition is 
not distorted, 

Article  5  under  which  the  Member  States  are  bound  to  fulfil  their 
obligations under the Treaty, 

Article Sa  requiring the  internal  market  to  be  completed by  31  December 

1992. 

the provisions concerning the free  movement of goods,  in particular Articles 
30 to 36; 

85 

Article  37  requiring  the  adjustment  of state  commercial  monopolies  and 

forbidding the creation of new state commercial monopolies, 

the provisions concerning the freedom  to provide services and the freedom 

of establishment, in particular Articles 52 to 66; 

the provisions governing competition, in particular Articles 85, 86 and 90; 

the  provisions  concerning  the  common  commercial  policy,  in  particular 

Articles 110 to 116; 

the general provisions for the approximation of provisions laid down by law, 

regulation,  or administrative actions  in  Member States as directly affecting 

the  establishment  or  functioning  of  the  comm~n market,  in  particular 

Article lOO(a). 

Beyond  these  Articles,  account  should  be  taken  of further  work,  in  particular  the 

principles set out in the Commission's guide-lines on the application of competition 

rules to the telecommunications sector57,  and the substantial amount of Community 

law  in  the  telecommunications  sector  resulting  from  the  case  law  and  secondary 

legislation and the implementation of the Green Paper58,  inter alia: 

Commission Directive  of 16th  May  1988  on competition  in  the markets  in 

telecommunications terminal equipment (88/301/EEC)59; 

Council  Directive  of 28th  June  1990  on  the  establishment  of the  internal 

market  for  telecommunications  services  through  the  implementation  of 

Open Network Provision (90 /387 /EEC)60; 

Commission Directive of 28th June  1990  on competition in  the markets for 

telecommunications services (90/388/EEC)61; 

and proposed  Directives  on which  common  positions  have  already been  obtained, 

in particular : 

.57.  To be published 
58  Towards a competitive Community-wide telecommunications market in 1992  - Implementing the Green 
Paper on the development of the Common Market for telecommunications services and equipment, 
COM(88)48, 09 /02/1988. 

59  OJ. L 131, 27/05/1988 

60  OJ. L 192, 24/07 /1990, p. 1 

61  O.J. L 192, 24/07 /1990, p.  10 

86 

Proposal for  a  Council Directive  on  the approximation  of the  laws  of the 

Member  States  concerning 

telecommunications 

terminal  equipment, 

including the mutual recognition of their conformity62; 

• 

as well as legislation in related fields of direct relevance: 

Council Directive  on  the procurement  procedures  of entities  operating in 

the  water, 

energy, 

transport, 

and 

telecommunications 

sectors 

(90/531/EEC)63

• 

Council  Directive  on  the  coordination  of certain  provisions  laid  down  by 

law,  regulation  or  administrative  action  in  Member  States  concerning the 

pursuit of television broadcasting activities (89 /552/EEC)64; 

Council Directive on the adoption of common technical specifications of the 

MAC/packet family  of standards for  direct satellite television broadcasting 

(86/529 /EEC)65; 

Council  Directive  on  the  approximation  of  the  laws  of  Member  States 

relating to electromagnetic compatibility (89 /336/EEC) 66
• 

Where  these  measures  do  not  apply  directly  to  satellite  communications,  a 

Community approach to this sector should take account of the principles underlying 

this legislation.  It should in particular: 

allow  the  full  use  of  the  new  technological  potential  to  all  market 

participants, both in the terminal and services markets; 

define,  therefore,  exclusive  or  special  rights  narrowly  and  replace them  by 

licensing  schemes  where 

the  continued  maintenance  of  regulatory 

safeguards is required by public interest; 

provide for  the clear separation  of regulatory  and operational functions,  in 

order  to  avoid  conflicts  of  interest  and  distortion  of  competition  and 

markets. 

62  Amended proposal, OJ. C 187, 27.7.1990, p. 40 

63  OJ.L. 297, 29.10.1990, p. 1. 

64  O.J. L 298, 17/10/1989, p. 23. 
65  OJ. L311, 3/11/1986, p. 28. 
66  O.J. L 139, 23/5/1989, p.19. 

2. 

Future treatment of the earth segment 

87 

Traditionally,  the  large  earth  stations  used  with  INTELSAT  and  EUTELSAT 

systems  for  long  distance  telephony  and  television  programme  exchange  were 

owned  and  operated  by  the  telecommunications  organisations.  In  the future,  the 

bulk of earth  stations  and  hence  the  biggest  market segment will  consist  of small 

terminals with  antennas of 0.5  to  2.5  meters  (see Chapter  III).  VSAT terminals 

usually come under this category.  However, the term "small terminal" is difficult to 

quantify  and  implies  defining  a  limit  in  antenna  diameter  so  that  they  can  be 

differentiated from the large earth stations mentioned above.  Any such limit would 
• 

be arbitrary  and  can  change with  technological  development.  It therefore  should 

not  - and cannot  - be  used  for  the  determination  of the  regulatory  regime  that 

should apply to those terminals. 

The  criterion  for  distinguishing  different  kinds  of  satellite  earth  stations  should 

therefore  not  be  their  size,  but  the  function  for  which  they  have  been  built  and 

which may require different regulatory safeguards: 

entertainment  broadcast  (TV)  reception 

terminals  (Direct  Broadcast 

Satellite  and  Direct-To-Home-receive  only  terminals  - DBS  and  DTH 

terminals); 

receive  only  satellite  telecommunications  terminals  (including  mobile, 

position fixing,  etc.) for other than entertainment broadcasting reception; 

transmit/receive  terminals  for 

two-way  operations  (including  mobile, 

position-fixing, etc.); 

central control earth stations (hub stations) for private terminal systems. 

2.1. 

Entertainment broadcast (TV) reception terminals 

88 

The supply,  installation,  ownership,  operation and  maintenance of DBS  and DTH 

receive-only  terminals  for  entertainment  broadcasting reception  is  already  largely 

liberalised within  most  Member States,  although  in  the  past  the  Commission  has 

been  confronted  with  a  number  of  complaints  that  have  led  to  infringement 

procedures. against  certain  Member  States67•  Most  of  these  cases  have  been 

resolved  in  the  sense  that  the  Member  State  involved  agreed  to  liberalise  the 

market  for  receive-only  terminals  (refer  to  chapter  II.).  Such  terminals  may  be 

oonsidered as consumer goods,  fulfilling  a function  similar to a  traditional roof-top 

.. 

antenna for the reception of terrestrial radio and television broadcast services.  The 

Green Paper on the development of the Common  Market for  telecommunications 

services and equipment recalled "that the general trend in Europe now seems to be 

that  domestic  receive-only  installations  (TVROs)  designed  to  receive  high  power 

DBS (Direct Broadcast Satellite) services will not require a licence". 

The  problem  is  of  immediate  relevance  with  the  newly  launched  DBS  satellites 

(TDF-1and2, TV-SAT-2, BSB-1, TELE-X, OLYMPUS), and the satellites used for 

services such as Direct to Home ASTRA and the EUTELSAT and TELECOM 2nd 

generation satellites.  Estimates  have  indicated  that a  market exists  for  a potential 

of 100 million terminal units in Europe, of which between 4 and 20 million DBS and 

D1H terminals are forecast to be sold  by  1996.  Obviously, the Community will only 

be able  to  reap  the  benefits  of this  market  potential  if this  market  is  freed  from 

restrictive regulations. 

2.2. 

Receive only satellite telecommunications terminals 

Unlike a DBS or DTH terminal,  a receive-only telecommunications terminal would 

be optimised for  reception of point-to-multipoint data and voice signals, which  may 

include  video-transmissions  (in  analogue  or  digital  format).  However,  there  are 

strong similarities in overall function  between these two classes of earth stations. 

Use  of such  terminals  for  point-to-multipoint  services  poses  no  threats  to  other 

earth station users or operators since the terminals do not have transmit capability. 

As  has  been  explained  (see  chapter  III.),  these  are  mainly  new  types  of services 
which are not provided by conventional means. 

67  See for example Sixth Annual Report to the European Parliament on Commission monitoring of the 

application of Community law - 1988,  OJ. C 330 of 30.12.1989, p.  1,  points 90 and 99. 

89 

2.3. 

Transmit/receive terminals 

It is established international practice that a licence is normally required to operate 

a  radio transmitter.  Thus,  the operation of a small  terminal, capable of sending  -

and  receiving  -

signals,  may  be  expected  to  be subject  to  a  licensing  regime  in 

order to  ensure  correct  frequency  assignment  and  coordination,  the  limitation  of 

potential interference to an acceptable level and,  in certain cases, knowledge of the 

geographical location of the terminal.  There is  also a  public interest in the proper 

functioning  of the  transmitter which  can  justify  mandatory  type-approval  and  the 

requirement to maintain the equipment in a prescribed manner. 

2.4. 

Central control earth stations (hub stations) of satellite terminal networks 

Remote  terminals  in  private  terminal  networks  of  the  current  generation  ("star 

networks") generally communicate only via  a central nodal earth station, which then 

provides  onward  connections  as  necessary. 

The  remote  terminals  do  not 

communicate directly with  each other.  In  the next  generation of networks ("mesh 

networks")  this  will  be  possible.  However,  in  both  types  of  network,  a  central 

control function will be present.  For the purpose of this document, the "hub"  earth 

station  is  considered  the  earth  station  which  incorporates  the  central  control 

function of the network. 

A hub earth station is always  a two-way  (i.e.  transmitting and receiving) station and 

from the equipment point of view  a considerably more sophisticated facility  than a 

remote terminal  in  the  network,  in  the  case  of star networks  the ·"hub"  station has 

the higher transmit power and greater  usable bandwidth necessary to function  as a 

central communications  facility. 
licence. 

It may  therefore  require  a  more  comprehensive 

2.5. 

·  Abolition of exclusive or special rights 

90 

After  the  publication  of  the  Green  Paper,  the  Commission  has  implemented  its 

objective of opening up  the market  for  terminal equipment by  adopting Directive 

88/301/EE68 which  provides for  the withdrawal of all special and exclusive rights 

for  the  provision  of  terminal  equipment.  A  number  of transitional  periods were 

foreseen  during which  the  Member States were  to formalise  and publish  technical 

specifications  and  type-approval  procedures  for  terminal  equipment.  The last  of 

these  periods  expired  on  30  June  1990.  Thereafter,  the  provision  of  terminal 

~quipment which  is  in  conformity with  the  technical specifications,  may  no  long,er 

be restricted. 

The  issue  to  be  resolved  here  is  whether  the  market  for  satellite  earth  stations 

should  be  treated  in  the  same  way  as  the  market  for  conventional  terminal 

equipment.  As  mentioned  in  chapter  II.,  receive-only  satellite  earth  stations  not 

connected  to  the  public  network  of  a  Member  State  are  included  among  the 

terminal  equipment  defined  in  Article 1  of  Directive  88/301/EEC  so  that  their 

provision is already free from restrictions. 

Thus, the question remains whether other satellite earth stations are to be treated in 

the same way  as  receive-only  satellite  earth  stations.  The  answer  to  this  question 

will  have  to  be  based  on  Article  30  and  37  of  the  Treaty.  Article  30  prohibits 

· restrictions on imports  - and  all  measures  having equivalent effect  - of products 

in free circulation in the Community. To the extent that satellite earth stations have 

been legally marketed in one of the Member States, they should in principle be able 

to circulate freely throughout the Community. 

Article 37  of the Treaty aims at  eliminating all  discriminations resulting from  state 

monopolies of a  commercial  character,  with  regard  to  the conditions  under which 

goods  are  procured  and  marketed  between  nationals  of  Member  States.  If a 

Member State  establishes  or  maintains  a  monopoly  for  the  provision  of satellite 

earth stations, users may be prevented from freely choosing the equipment that best 

suits  their  needs in  terms of price  and  quality,  regardless  of its  origin.  Moreover, 

producers  of  satellite  earth  stations  from  other  Member  States  may  either  be 

barred from  access  to  this  market  or  at  least  suffer  a  competitive disadvantage  in 

marketing their equipment. 

68  Commission Directive of 16 May 1988 on competition in  the markets for telecommunications terminals 

equipment (88/301/EEC), OJ. L 131of27.05.1988, p.  73. 

91 

It follows  that the provision  of satellite earth stations in general may no longer be 

monopolised by  the Member States.  Users and service providers should therefore 

be able to benefit from a Community-wide market for all satellite earth stations. 

Satellite  terminals  are  technologically  and  functionally  separate  from  the  public 

terrestrial network infrastructure.  To the extent that certain types of satellite earth 

stations  are  used  for  the  provision  of  services  which  might  continue  to  be  the 
subject of special and exclusive  rights,  the use  made of such satellite earth stations 

may  be  made  subject  to  certain  regulatory  safeguards  via  appropriate  licence 

conditions.  However, an outright prohibition on imports and the monopolisation of 

~ 

the marketing for  such  equipment would  be excessive with  regard  to the objective 

sought,  since  all  satellite earth stations  are able to perform several functions  most 

of which will form part of the liberalised area. 

Compared to monopolisation,  restrictions on the use of equipment constitute a less 

restrictive measure.  Community law would only permit this kind of restriction to be 

imposed on owners of satellite earth stations as far as they correspond to legitimate 

regulatory  safeguards,  expressed  via  appropriate  licensing  conditions.  As  shown 

below,  only  transmit/receive terminals  require particular safeguards and therefore 

qualify for licensing. 

Entertainment  broadcasting  (TV)  reception  terminals  (TVROs)  and  receive-only 

telecommunications  terminals  should  not  be  subject  to  any  restrictions  and 

therefore should not be subject to  licensing. 

3. 

Right to use /  provide service 

A central principle of the Community's policy approach to the telecommunications 

sector  - as set out in the Green  Paper on  the development of the common market 

for telecommunications services and equipment69  and confirmed by Council70  is that 

exclusive and special rights should be defined  narrowly,  in  order to allow full  use of 

the  technological  potential  to  all  market  participants.  The Green  Paper  recalled 

that "the  European  Court  of Justice  has  explicitly  recognised  the  right  of network 

users  to  benefit  fully  from  new  opportunities  offered  by  technological  progress 

(British  Telecom  Case  41/83;  Commission  vs.  Italy  of 20th  March  1985)"  and  it 

emphasised that  "the justification  of continued  exclusive  provision  of certain basic 

69  Towards a Dynamic Economy  - Green Paper on the Development of the Common Market for 
Telecommunications Services and Equipment, Document COM(87) 290 final, 30/06/1987 

7°  Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 

92 

services must therefore be weighed carefully against the restrictions which this may 

impose on users' applications for their own  ~se, shared use, or provision of services 

to  third  parties".  The  Green  Paper  made  it  clear  that,  in  particular,  new 

technologies in adjacent fields  such as satellite communications would need special 

consideration. 

3.1. 

Si~al transmission to I reception from satellites (uplink/downlink). 

The consensus achieved at the Telecommunications Council of 7th December 19,89 

on  general  Community  telecommunications  policy  - and  incorporated  in Council 

Directive 90 /387 /EEC71  and Commission Directive 90 /388 /EEC72  - has identified 

the exclusive  or special  rights  and the  regulatory safeguards which  Member States 

may  implement  in  the  terrestrial  telecommunications  sector,  in  conformity  with 

Community law and in particular competition rules. 

According to Directive 90 /388 /EEC, exclusive or special rights may be entrusted to 

Telecommunications  Organisations  for 

the  provision  and  operation  of  the 

terrestrial public network infrastructure and the public voice telephony service,  and 

special regulatory safeguards may be established, via  appropriate licensing schemes, 

for  public  data  communications  services, 

in  accordance  with  Community 

competition  rules  and  the  procedures  established  in  Commission  Directive 

90 /388 /EEC73

• 

Licensing  schemes_  implementing  regulatory  safeguards  must  be  based  on  non 

economic  criteria,  be  transparent  and  non-discriminatory  and  must  introduce  no 

constraints  except  those  mentioned  above  or  based  on  "essential  requirements"74, 

i.e.  network  security  and  integrity  and,  in  justified  cases,  interoperablity and  data 

protection. 

In  proposing  this  approach,  the  Commission  relied  on  Articles  59  and  86  of the 

services and equipment up to 1992, OJ. C 257, 04/10/1988, p.  1 

71  Council Directive of 28th June 1990 on the establishment of the internal market for telecommunications 

services through the implementation of Open Network Provision (90/387 /EEC) 

72  Commission Directive of 28th June 1990 on competition in the markets for telecommunications services 

(90/388/EEC) OJ. L 192, '24/07 /1990, p.  10 

73  Commission Directive of 28th June 1990 on competition in the markets for telecommunications services 

(90/388/EEC) OJ. L 192, '24/07 /1990, p.  10 

74  According to Council Directive 90/387 /EEC "essential  requirements" means the non-economic reasons in the 
general interest which may cause a Member State to restrict access to the public telecommunications network 
or public telecommunications services. 

93 

Treaty.  While  Article  59,  as  interpreted  by  the  Court  of Justice,  permits  certain 

restrictions on the freedom  to provide services that are non-discriminatory and are 

justified by  the general interest,  that Article of the Treaty requires the abolition of 

all  other  restrictions  on  the  freedom  to  provide  services  within  the  Community. 

Likewise, Articles 85  and 86  in  conjunction with Articles 3f,  5 and 90  of the Treaty 

prohibit  Member  States  from 

taking  any  measure  which  would  enable  a 

telecommunications  organisation,  either  alone  or acting  in  concert,  to  prevent  or 

restrict access by competitors to the market for telecommunications services, unless 

~uch restriction  is  amenable  to  exemption  under  Article  85(3)  of the  Treaty  and 

such  exemption  has  actually  been  granted.  Abuses  of a  dominant  position  may 

never  be  exempted  whether  or  not  they  are  induced,  encouraged  or  ordered  by 

Member States. 

The  objective  of  the  single  market  and  the  full  application  of competition  rules 

require  the  adjustment  of  regulatory  regimes.  Adjustment  means,  inter  alia,  in 

addition to a prohibition on discrimination,  that any exercise of regulation which  is 

demonstrably  restrictive  of competition  needs  justification,  by  mandatory  sector 

specific requirements indispensable for  the proper functioning  of the system,  in  the 

general interest and non-economic in  nature. 

In  particular,  any  restrictions  resulting  from  exclusive  or  special  rights  for  the 

provision and  operation of the terrestrial public  network infrastructure and for  the 

public  telephone  service,  as  well  as  the  special  regulatory  safeguards  for  the 

provision of public  data  services  established by  Member States in  accordance with 

the  procedures  defined  in  Directive  90/388/90,  may  only  extend  to  satellite 

communications systems  in  as  far  as  they can be considered as being equivalent to 

these two-way public service categories. 

Notwithstanding  the  special  provisions  applying  to  broadcasting  services  to  the 

general public  defined  in  Directive  89 /552/EEC75 ,  one-way  services  by  definition 

do not fall into this category. 

15  Council Directive on the coordination of certain provisions laid down by law, regulation or administrative 
action in Member States concerning the pursuit  of television broadcasting activities, 89/552/EEC/. 

94 

The  public  voice  telephone  service  is  defined  in  Directives  90 /387 /EEC  and 

90 /388 /EEC'6,77  as  the commercial  provision  for  the  public  of direct  transport  of 

real-time speech via the public switched network or networks such that any user can 

use  equipment  connected  to  a  network  termination  point  to  communicate  with 

another user of equipment connected to another termination point. 

Even  large-scale  two-way  satellite  communications  systems - such  as  extensive 

VSAT  systems - do  not  fulfil  this  requirement  if  not  connected  to  the  public 

switched  network.  In  this  light,  two-way  satellite  communications  systems  should 

'only  be  considered  as  equivalent,  if connected  to  the  public  switched  terrestFial 

network infrastructure and interlinked with  the two-way  public services mentioned 

above. 

By  extension  of  the  consensus  and  the  legal  situation  achieved  for  terrestrial 

telecommunications, 

the 

transmissions 

of 

signals 

to /from 

satellites 

(uplink/downlink) and the corresponding operation and  use of terminal equipment 

in  a  system  not  connected  to  the  public  switched  network  infrastructure,  should 

therefore not  be subject  to  any  restrictions except  those justified by  the avoidance 

of  harmful  interference,  and,  in  justified  cases,  by  data  protection  and  the 

protection of privacy, and standards to the extent required by Community law. 

Should  a  Member State consider  that very  large  satellite communications  systems 

not interlinked to the two-way public services mentioned above obstruct in law or in 

fact,  because  of their  competition  with  the  telecommunications  organisation,  the 

performance  of the  latter's  task  of providing  public  telecomm~nications services, 

and that  further  restrictions would  have  to  be applied  to  allow  the carrying out of 

the particular tasks entrusted to the telecommunications organisation in accordance 

with  Article  90,  they  would  have  to  demonstrate  that  such  systems  would  meet 

criteria  equivalent  to  those  set  out  in  Directive  90/388/EEC  with  reference  to 

Article 90(2), subject to Commission scrutiny and dependent on the interests of the 

Community. 

76  Council Directive of 28th June 1990 on the establishment of the internal market for telecommunications 

services through the implementation of Open Network Provision (90/387 /EEC). 

77  Commission Directive of 28th June 1990 on competition in the markets for telecommunications services 

(90/388/EEC) O.J. L 192, 24/07 /1990, p.  10. 

95 

For the  operation  of transmit/receive  terminals  -

including  hub-stations  -

in  a 

system  connected  to  the  public  switched  network,  Member  States  may  establish 

additional regulatory safeguards to ensure compliance with the restrictions resulting 

from exclusive or special rights for  the provision of public telephony service,  as well 

as  the  special  conditions  and  licensing  schemes  for  the  provision  of  public  data 

services established in accordance with Directive 90/388/EEC. 

3.2 

Licensing conditions 

Licensing conditions must be justified,  be proportionate to  the objective sought,  be 

transparent, and non-discriminatory. 

They must not lead to technical  restrictions which would  unduly impede permitted 

activities or use of equipment  - as would  the simple prohibition of interconnection 

of transmit/receive  terminals  with  the  public  network  infrastructure.  Licensing 

procedures  must  fully  respect  the  principle  of  the  separation  of  regulatory  and 

operational functions. 

3.2.1.  Avoidance of harmful interference and frequency co-ordination 

An essential requirement  applicable  to  satellite communications and  of equivalent 

importance  to  the  requirement  of  network  security  and  network  integrity  in  the 

terrestrial  network,  is the  need  to  avoid  unacceptable  interference  with  other 

satellite  or  radio  communications  systems,  in  accordance  with· Council  Directive 

89/336/EEC'8  concerning electromagnetic interference, and in accordance with the 

coordination  procedures  agreed  on  a  global  basis  by  all  members  of  the 

International  Telecommunications  Union 79

,  established  in  the  Radio  Regulations 

78 

79 

Council Directive on the approximation .of the laws of Member States relating to electromagnetic 
compatibility, 89/336/EEC, 3/5/1989, O.J. L 139, 23/05/1989, p.  19. 

Article 34 of the ITU Constitution (Nice 1989) stipulates: "All stations, whatever their purpose, must be 
established and operated in such a manner as not  to cause harmful interference to the radio services or 
communications of other Members or of recognised private operating agencies, or of other duly authorised 
operating agencies which carry on radio services, and which  operate in  accordance with the provisions of the 
Radio Regulations ..... " 

Article 33 states: " ..... .In using frequency bands for  radio services, Members shall bear in mind that radio 
fre'!_·  .:ncies and the geostationary satellite orbit are limited natural resources and that they must be used 
rationally, efficiently and economically, in conformity with the provisions of the Radio Regulations, so that 
countries or groups of countries may have equitable access to both, taking into account the special needs of 
the developing countries and the geographical situation of particular countries." 

<: 

96 

and  administered  by  the  International  Frequency  Registration  Board  of  the 

International Telecommunications Union (reviewed in Chapter II.). 

As  the  antenna  size  of satellite  terminals  decreases,  their  discrimination  ability 

diminishes  and  their  interference  potential  increases  if the  necessary  precautions 

are not taken. 

European Telecommunications Standards for remote terminals should be guided by 

the  principle  of  minimising  interference  and  maximising  possibilities  for  co 

existence of terminal networks. 

Given  the  significant  risk  of  harmful  interference  to  other  services  caused  by 

erroneous operation or major antenna  pointing errors, licensing and type approval 

procedures for  transmitting terminals  may include the requirement that all satellite 

terminals are installed, supervised ~nd serviced by qualified technical staff  - either 

by  the  owner  demonstrating  the  required  professional  level,  or  by  qualified 

installation  and  maintenance  organisations.  This  is  in  line  with  the  principles 

established  in  Directive  88/301/EEC80  which  foresees  that  "economic  operators 

may  be  required  to  possess  the  technical  qualifications  needed  to  connect,  bring 

into  service  and  maintain  terminal  equipment  on  the  basis  of  objective,  non 

discriminatory and publicly available criteria". 

Large scale experience  - in  particular in  the United States  - with  similar satellite 

terminal equipment installation  requirements,  has shown  that  no  major difficulties 

are experienced in this respect in  practice. 

In  order  to  further  facilitate  identification  of satellite  terminals  causing  harmful 

interference  to  other  services, 

it  should  be  investigated  whether  electronic 

identification systems should be included in  the standards for such equipment. 

3.2.2.  Data protection and technical standards 

The  principle  that  services  provided  via  satellites  should  be  subject  to  the  same 

regulatory  principles  as  services  provided  via 

terrestrial  networks,  leads  to 

consideration  - in equivalence with  Directives 90/387 /EEC and 90/388/EEC  - of 

the protection of data and interoperability as further  essential requirements where 

appropriate and justified. 

80  Commission directive of 16th May 1988 on competition in  the markets in telecommunications terminal 

equipment, OJ. L 131, 27 /05/1988. 

97 

Satellite  services  should  not  be  allowed  to  by-pass  data  protection  requirements 

which  may  be  introduced  in  terrestrial  services  and  networks  as  set  forth  in  the 

Commission's proposals in this area81• 

As regards technical compatibility and standards, Directive 90 /387 /EEC foresees  -

for the provision of services via  the terrestrial network  - " ...  if the implementation 

of European  standards  ...  appears  inadequate  to  ensure  the  interoperability  of 

transfrontier  services  in  one  or  more  Member  States,  reference  to  European 

standards may  be  made  compulsory  ....  to  the  extent  strictly  necessary  to  ensure 

such  interoperability  and  to  improve  freedom  of choice  for  users". 

In  order  ~o 

achieve  the  same  objective  for  services  provided  via  satellites,  requirements  for 

technical standards may be foreseen to the extent required by Community law. 

3.2.3.  Other requirements 

Directive 90 /388 /EEC allows for the provision of public data services via terrestrial 

networks  to  be  subject  to  additional  requirements  resulting  from  general  trade 

regulation  and  relating  to  conditions  of  permanence,  availability  and  quality  of 

service,  subject  to verification  by  the  Commission  of compatibility with  the Treaty 

rules.  Apart  from  the case  where  transmit/receive  stations  - connected  to  the 

public network  - are used for  the provision  of such services,  additional conditions 

of this  nature should  only be considered as  far  as  they are indispensable to  ensure 

ability to comply with the essential requirements set out above, such as avoidance of 

harmful interference and efficient use of the frequencies allocated in the framework 

of frequency coordination. 

Any  other  requirements  of  this  kind  should  be  left  to  the  normal  contractual 

relationships  between  service  provider  and  customer  and  the  general  legislation 

regulating such relationships. 

As  regards  other  general  regulation  of  potential  impact  on  the  establishment  of 

satellite terminals,  such  as  that relating to  environmental considerations,  and  town 

planning,  aimed  at preventing  unsightly  development,  it  can  be  expected  that  this 

could  only  become  a  factor  of  some  significance  in  the  mass  market  of  DTH 

reception  terminals.  In this  regard,  environment  considerations  must be carefully 

balanced  against  the  principle  of  freedom  of  information.  Standards  for  such 

81  See COM(90) 314, in particular Draft Proposal for a Council Directive concerning the protection of personal 
data and privacy in the context of public digital telecommunications networks, in particular the Integrated 
Services Digital Network (ISDN) and Public Digital Mobile Networks. 

98 

· terminals should be designed  in  such  a way  as  to  minimise  the negative  effects on 

the  environment  in  order  to  avoid  any  major  restrictions  on  the  deployment  of 

satellite terminals in this regard. 

Given the rapid development of technology and in particular of transmission, access 

and  coding  techniques,  any  technical  limitations,  such  as  limitations  on  bit  rates 

transmitted,  are  intrinsically  liable  to  obsolescence  and  should  not  be  used  in 

licensing procedures. 

This  applies  also  to  the  implementation  of  essential  requirements,  such  as 

requirements  concerning  data  protection.  As  pointed  out,  regulatory  safeguards 

should  not lead to  undue technical  restrictions.  Systems which  require conditional 

access (see chapter IV.) can in general be implemented by using suitable encryption 

methods  under  the  responsibility  of the  sender.  Where  international  obligations 

require the respect of data protection  and confidentiality82,  such  protection  can be 

ensured via the licensing conditions.  In the particular case of receive-only terminals 

operating in non-broadcast bands  - for which licensing does not seem required nor 

practical  - a requirement for an indication that such equipment may not legally be 

used for unauthorised access should be sufficient, as is  the practice  - m many cases 

- with regard to other radio receivers. 

3.2.4.  Mutual recognition of licences 

The freedom to provide services under Article 59 of the Treaty implies an extension 

of  an  operating  licence  to  the  whole  Community  subject  to  non-discriminatory 

requirements that are justified by  the general interest.  Thus a hub station operator 

or service provider authorised to  transmit via a  satellite towards receive-only earth 

stations,  would  not  have  to  negotiate  "landing  rights"  in  other  Member  States. 

However,  for  a  private  satellite  terminal  network  consisting  of  transmit/receive 

terminals  located  in  a  number  of  Member  States,  operating  licences  would  be 

needed. 

In  order  to  avoid  the  administrative  delays  involved  in  numerous 

individual licensing procedures, a Community scheme for the mutual recognition of 

licences for  satellite terminals  should  be  est~blished so  that  the  operating licences 

granted by  the authorities  of one  Member State would  be  recognised  in  all  other 

Member States. 

82  Article 26 of the ITU Constitution foresees that "Members agree to take all possible measures, compatible 

with the system of telecommunication used, with a view to ensuring the secrecy of international 
correspondence ... ".  A similar obligation is contained in Article 23  of the Radio Regulations. 

99 

Based on the principles set out,  such  a  scheme should lay  down  the conditions for 

the  Community-wide  operation  of  terminal  networks  and  possible  conditions 

regulating hub station operators. 

It should  in  particular  facilitate  the  establishment of two-way  networks  across  the 

Community by,  inter alia, providing for class licences for networks operating within 

frequency bands designated with  priority to Community-wide satellite applications. 

These class  licences  should  give  the  possibility  of operating,  e.g.,  VSA T  networks 

~hroughout the  Community  under  a  single  licence,  without  any  need  of further 

licensing  or  frequency  coordination  for  the  individual  participating  satellite 

terminals  in  the  Member  States.  Networks  operating  within  non-designated 

frequency bands  should  be  licenced with  a  minimum  of obligatory  procedures  for 

frequency coordination. 

In  order  to  make  such  a  scheme  effective,  it  will  have  to  be  accompanied  by  a 

number of harmonisation measures: 

Mutual  recognition  of type  approval  for  satellite  terminal  equipment  (see 

below); 

Strengthened  frequency  coordination  related  to  satellite  communications, 

building  on  the  current  reform  of  the  European  Radiocommunications 

Committee and  the  establishment  of the  European  Radiocommunications 

Office  (see  chapter  IV.),  to  designate  in  particular  certain  bands  with 

priority  to  Community-wide  satellite  applications,  such  as  needed  for  the 

easy operation of class licences; 

Specific  definition  of  Open  Network  Provision  (ONP),  as  defined  in 

Directive  90 /387 /EEC,  concerning  the  connection  of  satellite  terminal 

networks  to  the  terrestrial  public  network  infrastructure,  subject  to  the 

constraints and  regulatory safeguards set out.  This would  provide Europe 

wide  harmonised  interfaces  between  satellite  systems  and  the  public 

network,  extending  the  concept  of  Open  Network  Provision  to  satellite 

communications. 

4. 

Future treatment of the space segment 

100 

Current regulation of the space segment still reflects,  in most cases, the situation in 

the  sixties  and  seventies  where  the  only  technically  and  economically  feasible 

application of satellite communications was  their use as an additional transmission 

path to carry international or national long distance traffic for  telecommunications 

organisations. 

As shown  in  the  preceding chapters,  this  situation  has  now  substantially  changed. 

In  Europe,  additional  to  the  international  satellite  organisations,  a  number  of 

additional providers  of space  segment  have  been  authorised  by  Member  States  -

both  telecommunications  organisations  at  the  national  level as  well  as  other 

organisations (refer to Figure 2). 

For  the  development  of  a  coherent  approach  to  the  future  access  to 

and 

provision  of  -

the  space  segment,  two  basic  mechanisms  which  determine  the 

current regulation of the space segment in Europe must be carefully considered: 

the international commitments of Member States concerning frequency co 

ordination  and  the  use  of  the  orbital  resource  in  the  context  of  the 

International  Telecommunications  Union, 

its  permanent  organ, 

the 

International  Frequency  Registration  Board,  and  the  respective  globally 

agreed Radio Regulations.  This has been discussed  in Chapter II.  It means 

that at  this  stage,  only  Member  States,  acting  individually,  can  initiate  the 

necessary  procedures  for  both  utilisation  of  frequencies  and  orbital 

resources; 

the 

international  commitments  of  Member  States  relating 

to 

the 

international  telecommunications  satellite  organisations  INTELSAT  and 

INMARSA T and  the European Telecommunications Satellite Organisation 

EUTELSAT  and  the  respective  Conventions  and  Operating  Agreements. 

Of major consequences for  the access to  - and use of  - the space segment 

provided  by  these  organisations  are  the  provisions  in  these  arrangements 

giving  the  Signatories  the  exclusive  right  for  allotment  of satellite  (space 

segment)  capacity 

to  satellite  service  providers,  and  the  provisions 

concerning economic and technical coordination of space segment intended 

to be provided by other organisations (space segment providers). 

101 

As  mentioned  previously,  the  situation  is  further  complicated  by  the  fact  that  all 

Member States  have  designated  their  telecommunications  organisations  to  act  as 

signatory  to  the  Operating  Agreements  of  the  international  telecommunications 

satellite organisations83 while in a number of Member States these organisations are 

also mandated to represent the Member States with regard to the ITU procedures. 

With the growing diversification of satellite applications and the growing number of 

actors wanting to provide space segment capacity and/ or satellite services via space 

segment,  this now  entangles the telecommunications organisations more and more 

in the delicate situation of being referee and  player at the same time.  The lack pf 

separation between the regulatory  and  operational functions  now leads to growing 

conflicts of interest. 

In order to bring the regulation of access to  - and provision of  - space segment in 

line  with  general  Community  telecommunications  policy,  a  number  of  basic 

principles will have to be emphasised: 

the principle  of open  and  efficient  access,  based  on  objective,  transparent 

and non-discriminatory procedures; 

clear separation of regulatory and operational functions; 

full  application  of the  provisions  of  the  Treaty,  in  particular  competition 

rules. 

The  Member  States  are  obligated  to  exercise  their  influence  in  order  either  to 

achieve an application of international agreements in conformity with the Treaty or 

to bring about an amendment of these agreements.  The potential for conflict which 

may  result  from  the  current  situation  with  regard  to  Treaty  rules  may  be 

demonstrated by quoting from  the principles set out in the Commission guide-lines 

on  the  application  of  competition  rules  in  the  telecommunications  sector84,  as 

regards application of articles 85 and 86 to satellites: 

83 

In the case of EUTELSAT Article Il.b) of the Convention states that a signatory of the Operating Agreement 
is a "designated public or private telecommunications entity" Q! a Party itself. 

In the case of INTELSAT and INMARSAT the equivalent Articles are 11.b) respectively 2.3. 

The large majority of Member States have designated their national telecommunications organisations (for 
details see Fig. 1).  Italy has established a special organisation (fELESPAZIO).  The United Kingdom has 
established the "Signatory Affairs Office", separated within British Telecom, but BT is still carrying the full 
financial responsibility. 

84  To be published. 

102 

" ...  agreements  between  TOs  (Telecommunications  Organisations)  concerning  the 

operation of satellite systems in the broadest sense are caught by Article 85.  As to 

space segment  capacity,  the TOs  are  each  other's competitors,  whether  actual  or 

potential.  In pooling together totally or partly their sales of space segment capacity 

they may restrict competition between  themselves....  Restrictions on  third  parties' 

ability to compete are likely to exclude  the possibility of ...  an exemption.  It should 

also  be  examined  whether  such  agreements  strengthen  any  individual  or  joint 

dominant  position  of  the  parties,  which  also  would  exclude  the  granting  of  an 

exemption.  This could be the case in  particular if the agreement provides that the 

parties  are  exclusive  distributors  of  the  space  segment  capacity  provided  by  the 

agreement .... ". 

"An  exemption is  unlikely  to  be granted  also  when  the agreement has the effect of 

reducing substantially  the supply  in  an  oligopolistic market,  and  even more clearly 

when  an  effect  of the  agreement  is  to  prevent  the  only  potential competitor of a 

dominant provider in a given market from  offering its services independently.  This 

could amount to a violation of Article 86 ... ". 

4.1 

Ensuring objective.  transparent and  non-discriminatory procedures and separation 

of regulatory and operational functions 

Where telecommunications  organisations  can  be  both  player and  referee,  because 

regulatory  and  operational  functions  are  not  clearly  separated,  there  is  a  clear 

conflict  of  interests.  This  can  be  the  case  in  particular  with  -regard  to  the  co 

ordination  of frequencies  and  use  of orbital  resources,  the  granting  of operating 

licences, the resale of space segment of INTELSAT,  INMARSA T and EUTELSAT 

by  the  telecommunications  organisations  to  other  service  providers,  and  the 

coordination  procedures  with 

the 

international 

telecommunications  satellite 

organisations which must be undertaken by other space segment providers. 

The  principle  of  separation  of  regulatory  and  operational  functions  has  been 

implemented  in  the  context  of general  Community  telecommunications  policy  in 

Directive  88/301/EECSS  and  Directive  90/388/EEC86•  According  to  Directive 

90/388/EEC  "Member States shall ensure that  the grant of operating licences,  the 

control of type approval and mandatory specifications, the allocation of frequencies 

85  Commission Directive of 16th May 1988 on competition in the markets in telecommunications terminal 

equipment (88/301/EEC) 

86  Commission Directive of 28th June 1990 on competitoin in  the markets for telecommunications services, O.J. 

L 192, 24.07.1990, p. 10 

103 

and surveillance of usage conditions are carried out by a  body  independent of the 

telecommunications organisations". 

The  Council  Resolution  of 30th  June  1988  on  the  development  of the  Common 

Market  for 

telecommunications  services  and  equipment87  underlined 

the 

importance  of  this  principle  for  the  telecommunications  sector  as  a  whole,  and 

Council  Resolution  90/C  166/0288  emphasised  that  the  coordination  of  radio 

frequencies  must  respect  the  principle  of  the  separation  of  regulatory  and 

operational duties. 

. 

In particular, the procedures concerning allocation of  frequencies and required co-

ordination established within  the radio regulations should respect this principle and 

should be carried out in an objective, transparent, and non-discriminatory way. 

Objective,  transparent,  and  non-discriminatory  procedures  and  full  separation  of 

regulatory and operational functions should also be ensured as regards access to the 

orbital resource for the provision of space segment. 

4.2  Access to space segment capacity 

Both 

the  agreements  on 

the 

international 

telecommunications 

satellite 

organisations  INTELSAT  and  INMARSA T,  and  the  agreement  on  the  European 

Telecommunication  Satellite  Organisation  EUTELSAT,  give  the  signatories  the 

sole  right  to  distribute  space  segment  capacity  of these  organisations  to  users  or 
service providers89. 

To the extent that  the signatories  hold  a  dominant  position in the sense of Article 

86, they would have to provide available space segment to all potential users at fair 

prices and on a non-discriminatory basis in  the sense of Article 86(a) and (c).  They 

87 

88 

89 

Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 
services and equipment up to 1992,  O.J. C 257, 04.10.1988,  p.  1. 

Council Resolution of 28th June 1990 on the strengthening of the Europe-wide co-operation on radio 
frequencies, in particular with regard to setvices with a pan-European dimension, OJ. C  166, 7.7.12990, p. 4 

In the case of EUI'ELSAT Article 16 a) of the Operating Agreement provides that "applications for allotment 
of EUI'ELSAT Space Segment capacity may be submitted to EUI'ELSAT only by signatories or, for a 
territory not under the jurisdiction of a Party, by a duly authorised telecommunications entity". 

This provision must be read in conjunction with Article II b) of the Convention which provides that "each 
Party shall designate a public or private telecommunications entity subject to its jurisdiction to sign the 
Operating Agreement, unless such Party itself signs the Operating Agreement." 

In the case of INTELSAT and INMARSAT, the equivalent articles are articles 15.a) and 11.b ), respectively 
XV.1  and 2.3. 

104 

would also seem not to be entitled to  request detailed information about the users' 

business plans  and  the (in  many cases competing) services  they intend  to  offer,  as 

this may entail an abuse of their dominant position. 

The principle  of non-discriminatory  treatment  must  apply  to  all  classes  of users, 

irrespective of whether they  are public  or private service providers.  For example, 

private broadcasters should be offered transmission capacity to provide for  services 

such  as  news  gathering with  the  same promptness  and  on the  same conditions  as 

public broadcasting organisations. 

The best  solution  to  avoid  distortion  of competition and to  allow full  use and best 

allocation of the existing international, national and private space segment would be 

to ensure that users obtain direct access  to space segment capacity, while providers 

of this  space  segment  should  obtain  the  right  to  market  space  segment  capacity 

directly to users. 

The  fact 

that  EUTELSAT  offers  space  segment  directly  to  the  European 

Broadcasting Union shows likewise that the direct lease of space segment without any 

intervention of national telecommunications  organisations is  not  only feasible,  but 

already practised. 

4.3 

Co-ordination  procedures  with  the  International  Telecommunications  Satellite 

Organisations 

The agreements setting up  the international satellite organisations INTELSAT and 

INMARSAT,  and  the  European  satellite  organisation  EUTELSAT provide  for  a 

co-ordination procedure with  regard  to  other space segment providers,  in  order to 

establish  whether  there  is  likely  to  be  any  significant  economic  harm  to  these 

organisations90• 

90 

In the case of EUfELSAT, Articles XVI a) of the Convention provides: "Any Party or Signatory which 
intends, or becomes aware that any person within the jurisdiction of that Party intends, individually or jointly, 
to establish, acquire or utilise space segment equipment separate from the EUI'ELSA T  Space Segment in 
order to meet the requirements of international public telecommunications services within the EUfELSAT 
space segment service area to provide services as defined in paragraphs a) and b) of Article III of the 
Convention shall, before such establishment, acquisition or utilisation, furnish all relevant information to the 
Assembly or Parties through the Board of signatories which shall establish whether there is likely to be any 
significant economic harm to EUfELSAT.  The Board of signatories shall submit its report and conclusions 
to the Assembly of Parties". 

Article XVI b) concerns the "technical compatibility of other space equipment". 

~n the case of INTELSAT and INMARSAT the equivalent articles are XIV c), d) and e) respectively 8.1  of 
the Conventions. 

105 

As these provisions aim at co-ordination for  economic reasons  and may therefore 

limit  competition  between  the  satellite  organisations  and  other  space  segment 

providers,  the  question  arises  whether  they  are  in  line  with  the  Member  States' 

obligations under Article 5 in conjunction with Articles 59,  86  and 90  of the Treaty. 

It is  clear  that  these  provisions  do  not  represent  an  essential  requirement  in  the 

public  interest  which  could  lawfully  limit  the  freedom  to  provide  services  under 

Article 59  of the Treaty, since the provisions in question are of an economic nature. 

On  the  other  hand,  they  may  be  able  to  benefit  from  the  exemption  foreseen  in 

Article  90(2)  of  the  Treaty  to  the  extent  that  they  are  indispensable  for  the 

performance of a service of general economic interest.  Whether this is the case, iX!. 

whether  the  services  of  general  economic  interest  can  only  be  performed  if 

competition on the part of other providers of space segment is limited or excluded, 

will  have  to  be determined  on  a  case-by-case  basis.  However,  it  is  clear  that  this 

determination  must  not  be  made  by  the  telecommunications  organisations  whose 

conflict of interest in this matter is obvious. 

At  any  rate,  these  provisions  will  have  to  be  interpreted  in  conformity  with  the 

requirements of Community law  and  in  particular with  Articles 59,  85,  86  and  90. 

This means  that  the basic decision  of the Treaty of Rome to  institute  a  system  of 

undistorted competition  and  guarantee  the freedom  to provide  services  has  to  be 

respected  by  the  Member  States  in  applying  these  provisions.  In  particular,  a 

systematic  rejection  of  competing  providers  of  space  segment  or  a  systematic 

limitation of their capability to compete with the satellite organisations would not be 

in  conformity  with  the  Member  States'  obligations  under  Articles  5  and  90  in 

conjunction  with  Articles  59,  85  and  86  of  the  Treaty.  Article  90(2)  allows 

derogations from  Article 59  and  the competition rules  only in  the exceptional case 

that the application of the Treaty rules obstructs the performance, in law or in  fact, 

of the particular tasks entrusted by  Member States to the organisations in question 

and  that  the derogation  is  not  contrary to  the  interests  of the Community.  Under 

normal conditions,  these organisations  may well  be expected  to  offer their services 

of general  economic  interest  to  their  customers,  even  if  they  are  exposed  to  a 

certain degree of competition. 

The present practice of handling the coordination  requirements confirms this.  The 

procedure under Article XVI  of the  EUTELSAT Convention has  never led  to  the 

conclusion that a competing provider of space segment would  represent significant 

economic  harm  to  EUTELSAT.  Even  if  this  were  the  case,  Article  XVI  of  the 

Convention does not prevent  a  party to  that Convention from  going ahead with  its 

106 

plans and authorising a  competing provider  of space segment,  although  this would 

not guarantee the provision by other parties of the necessary uplink authorisation. 

While the procedure under Article  XIV  ( d)  of the  INTELSAT Convention  has  in 

one  case  led  to  the  conclusion  that  a  competing  space  segment  provider  would 

indeed  represent  economic  harm  to  INTELSAT,  the  organisation  did  not  raise 

objections  to  the  authorisation  of  the  competing  space  segment  provider  in 

question. 

In  order  to  ensure  that  conflicts  of interest  do  not  lead  to  legal  uncertainty,  the 

principle of the separation of regulatory and operational functions requires that the 

independent  regulatory  authorities  of  the  Member  States  rather  than  the 

telecommunications  organisations  decide  about  the  authorisation  of  competing 

space segment providers,  taking account  of Community  Law.  In cases  of doubt,  it 

will  be  for  the  Commission  to  decide  whether  the  conditions  of Article  90(2)  are 

fulfilled  and  competition  from  a  competing  space  segment  provider  could  be 

limited. 

Once  a  competing  provider  of space  segment  has  been  authorised  by  a  Member 

State,  such  as  TELECOM  1-2,  ASTRA,  DFS  Kopernikus,  BSB,  ITALSAT  or 

HISPASAT, it benefits from the freedom to provide services under Article 59 of the 

Treaty. 

It  will  therefore  have  the  right  to  offer  its  services,  subject  to  certain 

essential requirements in the public interest, throughout the Community. 

As regards the future handling of the technical coordination procedures as foreseen 

in  the  Conventions,  they  should  be  undertaken  on  a  sound  technical  basis  and 

realistic model assumptions for  such coordination.  Such coordination must  not be 

used as a technical barrier to entry for other providers. 

4.4 

Cost-orientation of Tariffs 

Council  Directive  90/387 /EEC  states  for  the  access  to  the  terrestrial  network 

infrastructure the principle that  "tariffs  must  be based on objective criteria and  .... 

must be in principle be cost-oriented". 

One of the characteristic features concerning satellite communications is  that their 

costs are distance-independent. 

107 

However,  their  dual  role  as  providers  of the terrestrial  infrastructure  on  the  one 

hand,  and  as  signatory  on  the  other,  leads  telecommunications  organisations  in 

many cases to charge for satellite facilities on the same distance-related basis as for 

terrestrial links.  Thus the technological advantage of satellites' wide-area coverage 

is not passed on to the user or competitive service providers.  Moreover, the mark 

up added by  telecommunications organisations in  their role as exclusive  re-saler of 

space  capacity  -

acting  as  signatory  to  the  international  agreements  - may  in 

certain cases,  increase the price charged to users for use of the space segment very 

~ubstantially. 

This  can  be  explained  by  the  fact  that,  in  many  cases,  the  telecommunications 

organisations  tend  to  subordinate  the  pricing  of satellite  capacity  to  the  specific 

targets of their own business strategy  - one example of t~e risk of possible abuse of 

a  dominant  position  to which  the  cu.rrent  procedures for  resale  of space  segment 

exposes the Signatories. 

This situation will only change fundamentally once the separation of regulatory and 

operational functions  has been fully  implemented in  the sector, and space segment 

providers will be able to negotiate directly with customers.  It is to be expected that 

they will  then  market their transmission  capacity at prices  more closely  related to 

their  cost.  This  will  increase  the  use  of  satellite  services  and  the  return  on  the 

provision of space segment, both for  the international telecommunications satellite 

organisations as well as other providers.  It will be fundamental to the full use of the 

new potential of satellite communications. 

4.5 

Commercial freedom for EUTELSAT and provision of space segment 

A basic principle of telecommunications policy  is  giving all market participants full 

opportunity to use the new technological potential. 

The separation of regulatory and operational responsibilities and the establishment 

of more open access  to the space segment would give  the space segment providers 

in  Europe  -

and  in  particular  the  European  Telecommunications  Satellite 

organisation,  EUTELSAT  -

the  possibility 

to  develop 

into  a  full  scale 

entrepreneurial  organisation  for  marketing  space  segment  directly  to  service 

providers and users for new applications. 

108 

At the moment, all contact with  user parties  - i.e.  entities wishing to lease space 

segment  capacity  - has  to  be  made  via  Signatories.  This  has  led  to  a  lack  of 

flexibility  in  system  planning  since,  e.g.  TV  channels  are  leased  to  EUTELSAT 

Signatories without knowing whether or not they will then be used.  It should not be 

forgotten  that a substantial amount of the capacity,  although leased to Signatories, 

is in effect unavailable to end-users as Signatories do not use it or may regard it as 

part of their commercial policy not  to lease it to the end-users or potential service 

providers. 

The  satellite  organisations  and  other  space  segment  segment  providers  shm.~ld 

provide space capacity on  equitable  and  non-discriminatory  terms  to  all classes  of 

users, irrespective of whether they are private or public service providers. 

According to  the Council  Resolution  on  the development  of the Common  Market 

for  telecommunications  services  and  equipment91  one of the major  policy goals  of 

general Community telecommunications policy is "developing a common market on 

which  telecommunications  administrations and  other suppliers  can compete on  an 

equal footing",  taking account,  in  particular, of the "application of the relevant rules 

of the  Treaty,  notably  competition  rules,  to  telecommunications  administrations 

and private  providers".  This should  include  in  particular that  market participants 

do  not  take  advantage  of  dominant  market  positions  through  undue  cross 

subsidisation  of activities,  and  respect  in  this  regard  the competition  rules  of the 

Treaty,  using  as  guidance  the  principles  set  out  in  the  Draft  Guidelines  on 

Application of Community Competition Rules to the Telecommunications Sector92 • 

Article  III  of  the  EUTELSAT  Convention  defines  the  scope  of  EUTELSAT 

activities. 

In  principle,  it  would  seem  to  allow  EUTELSAT  to  provide  all  the 

services it wishes. 

One  argument  against  giving  users  the  right  of direct  access  to  the  EUTELSAT 

space  segment,  and  EUTELSAT  the  right  to  market  space  segment  directly  to 

service providers and  users,  has  been  that  utilisation  by  a  Signatory has an  impact 

on its  investment shares as provided  for  in  Article 6 of the Operating Agreement. 

Where  a  non-Signatory  entity  accesses  the  EUTELSAT  space  segment,  such 

utilisation would  not count  for  the purposes of determination  of investment share. 

The practical problem could  arise for  example that there could be extensive access 

by private operators in  the territory of a Signatory, while the Signatory itself would 

91  Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 

seivices and equipment up to 1992 (88/C257 /EEC), OJ. C 257, 4.10.1988, p.  1. 

92  To be published. 

109 

perhaps scarcely utilise the space segment,  or maybe not at all.  It is stated,  that  a 

resulting low investment share for such a Signatory would not be in the spirit of the 

original agreements and/ or be inconsistent with the assumption and understandings 

upon which they were based. 

However,  it  would  seem  that  this  should  not  be  an  argument  against  allowing 

EUTELSAT to  develop  its  full  potential for  providing space  segment for  Europe 

wide  services  in  all  areas. 

It just  emphasises  the  need  to  review  the  existing 

arrangements and to allow, inter alia, for changes in current financing arrangements 

~nd the opening of the membership of the EUTELSAT consortium to new parti~s, 

if such under-investment should occur. 

4.6  A phased approach 

Member States must respect  existing international commitments taking account of 

their  obligations  under  Community  Law 

but  they  should  also  work  jointly 

towards the change of such commitments where required, in order to conform with 

these obligations. 

The international  telecommunications  satellite  organisations  have  grown  - over 

the last  three decades  - out of a world-wide context and must take account in  any 

adjustment  a  large spectrum  of interest,  both  of industrialised countries as well  as 

of the developing world.  Changes required therefore will take time and will have to 

depend on the evolving global environment. 

However,  a  number  of  immediate  steps  could  be  undertaken  and  more  flexible 

procedures  established,  within  the  framework  of  the  existing  Conventions  and 

Operating Agreements: 

Member  States  should,  as  regards  their  own  representation,  apply  strictly 

the principle of separation of regulatory and operational functions,  in order 

to avoid obvious conflicts of interest; 

Member  States  should  support  proposals  - of  the  type  currently  being 

discussed  by  INTELSAT 

-

aimed  at  rationalising  the  economic  harm 

coordination procedures and  take full  account,  as far  as  their own  position 

in  such  procedures  is  concerned,  of their  obligations  under  the  Treaty,  in 

particular competition rules.  They should  in  particular ensure that in  such 

110 

procedures the dimension of the Community Single Market as one Europe 

wide domestic area is taken into account. 

One  practical  measure  to  ease  current  procedures  may  be  to  agree  that 

once a satellite system has been cleared through the coordination procedure 

on  the  basis  of the  total  amount  of capacity  which  that  system  can  carry, 

other  Member  States  would  associate  automatically  with 

the  initial 

consultation  undertaken  by  a  Member  State  with  regard  to  any  service 

provider,  when  this  service  provider  wants  to  extend  its  service  to  other 

Community Member States. 

Member  States  should  support  actions  to  render  technical  coordination 

procedures less cumbersome; 

Member  States  should  facilitate  more  open  access  to  the  space  segment 

provided by the international telecommunications satellite organisations, via 

the  Signatories  and  pay  special  attention  to  the  implementation  of  the 

principle of cost-orientation of tariffs. 

For  example,  it  would  seem  possible  to  develop  workable  procedures  for 

submission by Signatories of applications for the allotment of space capacity 

on  behalf  of  users/service  providers  in 

their  territory,  as  has  been 

demonstrated by certain Community Member States93• 

While  these  steps  could  offer  some  immediate  relief,  they  will  not  overcome  the 

basic problem  of  adjustment  of the  agreements  to  the  new  environment,  nor  the 

risk of market distortion and conflicts of interest. 

While these initiatives may  therefore be the only realistic options in  the short term 

in the context of INTELSAT and INMARSAT given their world-wide international 

constraints,  Member  States  should  work,  in  the  European  context,  towards  a  full 

review of the EUTELSAT Agreement. 

Given their total investment share of 88  %  in  the EUTELSAT organisation and the 

trends  towards  liberalisation  in  other  European  countries  it  is  likely  that  a  broad 

European  base  for  reform  could  be  found  (refer  to  chapter  IV.),  Member  States 

should take full account of their obligations under Community Law and should take 

93  E.g. the United Kingdom has established the Signatory Affairs Office "walled-off' within the 

telecommunications organisation (BT). 

Also, it would seem that although the official application for allotment  needs, under the current agreements, 
to go via the Signatory, nothing prevents the preceding technical, operational and other arrangements being 

111 

the  initiative  for  redirection  and  adjustment  of the  EUTELSAT Convention  and 

Operating  Agreement,  in  order  to  ensure  development  of  the  potential  of 

EUTELSAT to  the fullest  possible extent,  in  line with  the goals and  requirements 

of the Single Market94

• 

Such  a  review  should  include,  beyond  the  measures  set  out  above,  necessary 

revision to allow 

direct  access  to  the EUTELSAT space segment,  by  far  the largest  one for 

use by domestic satellite services in Europe; 

full  commercial  independence  and  direct  marketing  of EUTELSAT space 

segment to users; 

adjustment of provisions for financing and membership, as required; 

adjustment of the agreements to bring them fully  in line with the obligations 

of the  Member States  under  the  Treaty,  in  particular competition  rules  -

concerning notably the future  treatment of the economic harm provision as 

well  as  the  future  handling  of the  technical  coordination  procedures,  and 

transparency with regard to cross-subsidisation where it occurs. 

5. 

Standardisation and Type-approval 

The working out of suitable standards is vital to make the liberali~ation of the earth 

segment  and  the  establishment  of  trans-European  satellite  terminal  networks  a 

market reality. 

The European Telecommunications Standards  Institute (ETSI)  will  have to play  a 

focal  role  in  this.  A  number  of  European  Telecommunications  Standards  (ETS) 

will be needed for the functioning of the mutual recognition of type approval and of 

licences. 

made directly between the international telecommunications satellite organisations and end-users. 

94  Amendments to the Convention can be decided by two thirds of the Parties and whose Signatories hold at 
least two-thirds majority in investment shares (Article XIX.b) of Convention) while amendments to the 
Operating Agreement need to be decided by a majority of at  least two-thirds of the Signatories which also 
represents at least two-thirds investment share (Article 22.d) of Operating Agreement).  The Party of the 
Signatory concerned must confirm the Signatory vote. 

112 

The ETSI Technical Committee TC-SES (Satellite Earth Stations), created for this 

sector, has identified a multi-annual work programme, setting out the priority areas 

for  the  production  of  standards.  One-way  and  two-way  small  terminals  are  the 

immediate  priority.  The  work  on  European  Telecommunications  Standards  for 

satellite earth stations is well underway, with the preparation of draft standards for 

TV receive-only stations, data receive-only stations,  two-way terminals and low bit 

rate mobile  terminals.  The standards will  seek,  inter alia,  to  minimise the  risk of 

spectrum  pollution  by  receive-only  terminals,  while  for  two-way  terminals  the 

standards are aimed  at  interoperability  of small  terminal  networks with  sufficient 

protection  against  various  types  of  interference.  The  standards  shall  allow 

manufacturers to specify equipment suitable for use on the Community market. 

As  mentioned,  the  mutual  recognition  of  type  approval  for  satellite  terminal 

equipment is one of the major pre-conditions for the mutual recognition of licences, 

and a  Community-wide market  for  satellite terminals.  The adoption of a  common 

position  on  the Draft  Directive on  the  approximation  of the laws  of the  Member 

States  concerning  telecommunications  terminal  equipment,  including  the  mutual 

recognition  of their  conformity95  at  the  Telecommunications  Council  of 28  June 

1990,  has  now  provided  the  basic  principles  to  be  respected  in  the  field  of type 

approval.  Its coverage will have to be extended to include satellite terminals. 

Given the basic approach that type approval procedures should apply only in  those 

cases where this can be seen as indispensible to ensure the conformity with essential 

requirements,  type  approval  procedures  should  apply  only  to  satellite  terminals 

connected  to  the  public  switched  network 

- where  the  essential  requirements 

defined  in  the  draft  Directive  mentioned  will  apply 

-,  as  well  as  to  transmitting 

terminals  where  the  avoidance  of  harmful  interference  is  a  recognised  essential 

requirement.  Receive-only terminals not connected to the public switched network 

should not be subject to type approval but only to a requirement for an indication of 

compliance with suitable standards  in  the field  of electromagnetic interference,  no 

more onerous than the procedures applying to other radio receivers. 

A  basic  element  of  type  approval  procedures  must  be  the  clear  separation  of 

regulatory and operational functions,  in  order to avoid otherwise inevitable conflicts 

of interest.  Directive 88/301/EEC96  foresees  that  the granting of type approval is 

entrusted to  a  body  independent  of public  or  private  undertakings  offering  goods 

95 

Common Position adopted by Council on 24th July 1990 with a view to the adoption of a Council Directive on 
the approximation of the laws of the Member States concerning telecommunications terminal equipment, 
including the mutual recognition of their conformity. 

96  Commission Directive of 16 May 1988 on competition in  the markets in telecommunications terminal 

113 

and/or  services  in  the  telecommunications  sector".  This  principle  has  been 

acknowledged  in  Community  telecommunications  policy  as  basic  to  any  type 

approval  procedure,  and  therefore  must  also  apply  to  type  approval  of satellite 

terminals. 

A  special  problem  in  this  context  is  the  responsibilities  which  under  the  current 

agreements Signatories have for  dealing with applications for the approval of earth 

stations which  access  the  space  segment  of the  international  telecommunications 

satellite organisations97

• 

The principle of separation of regulatory  and  operational  responsibilities will  ha~e 
to apply also in this case.  It would seem that an interpretation of the obligations of 

Parties  and  Signatories  under  the  current  agreements  can  be  found  which  would 

allow for  referring type  approval  to  the  respective  regulatory bodies  of each  party 

and thus to fully submit to the principle set out. 

6.  Mobile and position-fixing satellite services 

As  set  out  in  chapter  III.,  satellite-based  mobile  services  have  developed  from 

maritime mobile  services,  but  aeronautical and  especially  land  mobile services are 

now at the centre of interest.  A  number of initiatives have permitted the planning 

of several systems that  may be used  within  Europe for  messaging,  voice traffic and 

position fixing,  such as: 

plans  by  EUTELSAT  m  cooperation  with  a  U.S.  company  to  offer  a 

position-fixing and messaging service from  1990, called EutelTRACS; 

the development of a service by  INMARSA T suitable for both maritime and 

land-mobile use,  using low cost "Standard-C" data-only terminals and,  in the 

future, "Standard-M" digital voice terminals; 

ESA proposes a "European Mobile Satellite" (EMS) service; 

the  preparation  of  the  LOCSTAR  messaging  and  position-fixing  system, 

with commercial financing; 

equipment, 88/301/EEC, O.J. L 131, 27.05.1988, p .... 

97 

In the case of EUTELSAT, Article 16.c) of the Operating Agreement provides: " .....  Each entity to which an 
allotment (of space segment) has been made under this Article shall be responsible for compliance with all 
the terms and conditions set by ElJfELSAT for such allotment unless, where a Signatory has submitted the 
application, its designating Party assumes such responsibility." 

114 

use  by  civil  operators  of position-fixing  systems  such  as  GPS/NAVSTAR 

(U.S.),  GLONASS 

(USSR) 

and 

complementary 

civil 

networks 

(CNES/ESA; NAVSAT). 

The land  mobile-satellite services will  focus  on specific user groups of limited size 

seeking instantaneous and full  European coverage,  such a  trucking companies and 

vessel  operators.  While  terrestrially-based  public  mobile  systems  will  develop 

during this  decade into  mass  services  with  many  millions  of users,  the  number  of 

mobile-satellite  terminals  -

though  offering  a  vital  service  to  certain  parts  of 

European business  - is not expected to reach by  the year 2000,  more than 1-2  % ,af 

the number of terminals in the future public cellular (terrestrial) GSM system. 

Given  that  it  is  therefore  highly  unlikely  that satellite-based  mobile  systems could 

obstruct the provision of the terrestrial public mobile systems in any significant way, 

and  that  service  operators wish  to  provide  fixed  and  mobile  or  a  combination  of 

both,  and  satellite-based  mobile  systems  - with  the  blurring  of the  distinctions 

between  Mobile-Satellite  Service  (MSS)  and  Fixed-Satellite  Services  (FSS)  - do 

not  differ 

substantially 

from  other 

two-way  point-to-multipoint 

satellite 

applications,  they  should  not  be  subject  to  regulatory  constraints  or  safeguards 

other than those for fixed  services. 

Mobile-satellite terminal  systems  should  therefore  be  governed  by  the  equivalent 

rules  for  fixed  services  receive-only,  or  transmit  and  receive,  terminal  systems  in 

terms of type-approval of terminals and licensing. 

115 

However, 

in 

the  context  of 

the  Community's  overall  policy  on  mobile 

communications  and  its  support  for  trans-European  systems  in  this  field98

,  the 

interoperability and complementarity of mobile satellite systems and the terrestrial 

networks should be encouraged. 

Given the fact  that mobile terminals by  nature cross borders, mutual recognition of 

licences  and  type  approval  of  equipment  are  an  essential  precondition  for  any 

Europe-wide operation. 

Ih the harmonisation measures set out above,  special provision should therefore be 

made  for 

the  unrestricted  movement  of  mobile  terminals 

throughout 

the 

Community and of the mutual recognition of licences for this purpose. 

7. 

Broadcasting-Satellite services 

Satellite broadcasting to  the general  public  must  be seen in  the context of general 

Community audio-visual  policy,  as  set  out  in  chapter  IV.  It is  subject  to  specific 

regulations  set  up  by  Member  States  in  conformity  with  Community  law,  in 

particular Directive 89/552/EEC99  on "Television without Frontiers". 

TV and  related  distribution  services currently  account  for  44  %  of space  segment 

operators'  revenue  in  the  Community  and  for  75  %  of  EUTELSAT  revenues. 

Satellite  television  will  play  a  pivotal  role  in  the  creation  and  diffusion  of  pan 

European  programmes  and  in  the  development  of a  true  European  audio-visual 

98  Refer to: 

Council Recommendation of 25 June 1987 on the coordinated introduction of public pan-European cellular 
digital land-based mobile communications in  the Community (87 /371/EEC), O.J. L  196,  17.07.1987, p. 81 

(concerning the introduction of the GSM system): 

Council Directive of 25 June 1987 on the frequency  bands to be reserved for the coordinated introduction of 
public pan-European cellular digital land-based mobile communications in the Community (87 /372/EEC), 
O.J. L 196, 17.07.1987, p. 85. 

Proposal for a Council Recommendation on the coordinated introduction of pan-European land-based public 
radio paging in the Community, COM(89) 166, 05.06.1989. 

(concerning the introduction of the ERMES system). 

Proposal for a Council Directive on the frequency bands to be reserved for the coordinated introduction of 
pan-European land-based public radio paging in the Community, COM(89) 166, 05.06.1989. 

Proposal for a Council Recommendation on the coordinated introduction of Digital European Cordless 
Telecommunications (DECT) in the Community, COM(90) 139,  12.06.1990. 

Proposal for a Council Directive on the frequency bands to be designated for the coordinated introduction of 
Digital European Cordless Telecommunications (DECT) in the Community, COM(90) 139,  12.06.1990. 

99 

Council Directive on the coordination of certain provisions laid down by law, regulation or administrative 
action in Member States concerning the pursuit of television broadcasting activities (89/552/EEC), O.J. L 
298,  17.10.1989, p. 23. 

116 

dimension. 

However,  even if some 60  TV-channels are now  distributed by  satellite in  Europe, 

the revenue  base of satellite television  is  still  very limited.  Cumulated  income of 

satellite channels from  advertising  - still  the major  source of funding for  many of 

these  channels  -

currently  corresponds  still  to  no  more  than  4  %  of  total  TV 

advertising in Europe. 

The  further  development  of satellite  television  in  Europe  will  largely  depend  on 

rapid  development  of  DTH  terminals  and  the  number  of  viewers,  and  the 

diversification of the revenue base.  Common transmission standards and technieal 

compatibility  will  be  one  of  the  key-factors  in  achieving  large  Europe-wide 

audiences. 

As has been explained, television distribution via the EUTELSAT system as well as 

- more recently  - via  other systems  such  as  Telecom  1-2,  DFS .Kopernikus  and 

ASTRA, is furnished via frequency  bands reserved for  Fixed-Satellite Service (FSS) 

and  not  via  the  frequency  bands  reserved  by  the  W ARC'77  conference  for  the 

Broadcasting-Satellite Service (BSS) where the Direct Broadcasting Services (DBS) 

are located.  This has made it  extremely difficult  to maintain a  distinction between 

BSS  services  and  broadcasting  applications  operating  within  the  Fixed-Satellite 

Service. 

As new services are explored and service providers operating in  the BSS  bands also 

provide point-to-multipoint data  services  - and  service providers  operating in the 

FSS bands move to BSS bands in  order to carry HDTV (refer to· chapter II.)  - the 

border-line between FSS and BSS services will be further blurred. 

The  agreement  reached  at  the  1977  World  Administrative  Radio  Conference, 

commonly  referred  to  as  the  WARC  77  plan  - assigning,  on  a  national  basis,  a 

limited number of frequency bands in  the BSS  allocation  - has turned out to be too 

rigid to take account of the new developments. 

While the full liberalisation of the earth segment will open the way for a  more rapid 

penetration of DTH terminals on a  European basis and more flexibility of entry for 

service providers into new  business lines,  the sector therefore now faces  two  major 

additional  requirements:  preparing for  review  of the  plan  criteria  established  by 

WARC'77;  and  promoting  the  pivotal  role  which  satellites  will  play  in  the  pan 

European introduction of High Definition Television (HDTV). 

117 

The effect of the W ARC'77 decisions  has hindered the implementation and use of 

Broadcasting-Satellites with the technology available today. 

A  revision  and  modernisation  of the  assumptions  and  criteria  established  in  the 

regulatory provisions  of the W ARC'77  Plan  should  take  into  account  the  present 

state-of-the-art  of  satellites  and  reception  equipment  technology,  as  well  as  the 

commercial needs in the exploration of new services. 

The  technology  for  second  generation  European  Direct  Broadcasting-Satellite 

Systems  has  been developing particularly since  1985,  aimed at satellites capable  of 

pan-regional and multi-zone European coverage, and of High Definition Television. 

It is  proposed  - in  the context of the overall Community audio-visual policy  - to 

try  to  ensure  a  much  greater  cohesion  for  second  generation  DBS  in  Europe. 

European  pan-regional  multi-channel  satellites  of an  intermediate  power  level  -

such as  the EUROPESAT project planned by  EUTELSAT  - would seem to be an 

attractive economic and technical option. 

Under this perspective,  there should  be a  co-ordinated  approach towards a  review 

of the plan  criteria established  by  the  World  Administrative  Radio  Conference  of 

1977  on  the  provision  of Broadcast  Satellite Services.  The possible  result  of this 

review  should  already  be  taken  fully  into  account  when  identifying  common 

European positions for the World Administrative Radio Conference of 1992. 

As  mentioned  with  regard  to  the  harmonisation  of  transmission  techniques  for 

satellite  broadcasting,  the  current  MAC/packet  Directive100 

is  based  on  the 

definitions of Broadcasting-Satellite Services,  as  used  in  the WARC'77  plan.  The 

Directive will expire on 31December1991. 

Preparation  of  future  action  in  this  area  should  be  aimed  at  the  harmonised 

introduction  of a  Europe-wide  High  Definition  Television  (HDTV)  standard.  It 

will also need to reflect the fact  that  - as set out  - it will be increasingly difficult to 

distinguish  between  those  services  defined  as  Broadcasting-Satellite  Services 

according to  the WARC'77  definitions  and  broadcasting applications  operating in 

the framework of Fixed-Satellite Services, and that more flexibility in using BSS and 

FSS frequency bands is needed in  Europe. 

100  Council Directive on the adoption of common technical specifications of the MAC/packet family of standards 

for direct satellite television broadcasting (86/529/EEC), OJ. L 311, 03.11.1986, P. 28. 

8. 

Summary 

118 

The 

extension  of  Community 

telecommunications  policy 

to 

satellite 

communications  can  build  on  the  consensus  achieved  on  the  basis  of the  Green 

Paper on the development of the common market for telecommunications services 

and equipment, as confirmed by Council Resolution 88/C257 /01of30 June 1988. 

The future  regulatory  conditions  for  satellite  communications  must  respect  those 

regulatory safeguards which  Member  States  may  apply  in  the  telecommunications 

s'ector in accordance with this consensus  - and in particular with the agreements on 

, 

the  Community's  approach  to  telecommunications  services,  achieved  at  the 

telecommunications Council of 7 December  1989  -,  but should not introduce any 

additional  restrictions  beyond  those  related  to  specific  conditions  in  the  field  of 

satellite  communications,  where  these  can  be  justified  in  accordance  with 

Community 

law, 

in  particular 

the  competition 

rules,  and 

international 

commitments. 

The adjustment  of the regulatory conditions  must  match  the market requirements 

identified.  They should in particular:  provide for  a  dynamic development of earth 

segments and space segments .in  the Community;  meet the conditions required by 

users to operate in  the Community-wide  1992  market;  allow  the full  development 

of  the  Community's  space  industry  in  this  area;  and  support  the  Community's 

policy for a common audio-visual space. 

Community law  must be fully  applied to this sector.  The Community cannot admit 

- or afford  -

the continued withdrawal  of a  sector of such vital  importance from 

the working of the single market, or from  the full application of its rules. 

As elsewhere  in  the  telecommunications sector,  a  basic element of the adjustment 

of the  regulatory  conditions  in  the  satellite  communications  sector  should  be  the 

principle  of the  abolition  of exclusive  or  special  rights  and  their  replacement  by 

licensing regimes,  wherever legitimate  public  interest  requires  the  maintenance  of 

regulatory safeguards.  Of particular specific importance in this regard for  satellite 

communications 

is 

the  avoidance  of  harmful 

interference,  and  frequency 

coordination. 

The  application  of  these  principles  leads  to  the  two  major  changes  which  are 

needed before  the potential  of the  provision  of satellite communications  services, 

by  both  public  and  private  providers,  can  be  fully  exploited  in  the  Community: 

unrestricted provision and use of satellite terminal transmit and receive equipment; 

119 

and  full,  equitable  and  non-discriminatory  access  by  users  to  all  providers  of 

satellite space capacity. 

A  fundamental  principle  of  the  reform  must  be  the  establishment  of  objective, 

transparent  and  non-discriminatory  procedures  and  the  clear  separation  of 

regulatory and  operational functions,  both with  regard  to  the provision  and use of 

the earth  segment,  as well  as  with  regard  to  access  to  - and  the  provision  of  -

space segment. 

Account must be taken of the existing international commitments of Member States . 

in this area, but Member States are also obliged to exercise their influence in order 

to achieve either an application of international agreements in conformity with  the 

Treaty  rules,  or  to  bring  about  an  adjustment  of these  agreements.  This  applies, 

inter  alia, 

to 

the  access 

to  space  segment  capacity  of  the  international 

telecommunications  satellites  organisations,  as  well  as  to  the  coordination 

procedures provided for in the respective agreements. 

The best  - and  in  the medium  term  inevitable  - solution  to  avoid  distorsion  of 

competition and to  allow  full  use  and  best  allocation of the existing space segment 

would  be  to  give  providers  of space  segment  the  right  to  market  space  segment 

capacity directly to users.  This  is  of special relevance  in  the case of the European 

Telecommunications  Satellite  Organisation  EUTELSAT  which  will  remain  the 

most 

important  provider  of  space  segment 

for 

intra-European  satellite 

communications.  With 

its  special 

importance 

for  Europe-wide  satellite 

communications, its continued development and growth is vital f<?r  the future trans 

European satellite services which are needed by the European user. 

Given that international telecommunications satellite organisations have grown out 

of a  world-wide  context,  they  must  take  into  account,  in  any  adjustment,  a  large 

spectrum  of  interest,  both  of  industrialised  countries  as  well  as  the  developing 

world.  The changes required may therefore have to be undertaken in phases. 

However,  having  in  mind  the  special  importance  of EUTELSAT for  Europe-wide 

communications,  the  Member  States'  total  investment  share  of  88  %  in  the 

organisation,  and  the  fact  that  trends  towards  liberalisation  in  other  European 

countries make it feasible  that  a  broad  European base for  reform could  be found, 

Member  States  should  work  towards  an  early  review  of  the  EUTELSAT 

Convention and  its  Operating Agreement,  in  order to  ensure  the  development  of 

EUTELSAT to the fullest possible extent. 

120 

Finally,  a  number  of promotion  and  harmonisation  measures  will  be  required,  in 

order  to  facilitate  the  emergence  of trans-European  services  and  to  ensure  that 

liberalisation and harmonisation go  hand in hand. 

This concerns in particular the measures  in  the field  of mutual recognition of type 

approval, mutual recognition of licences, frequency coordination, coordination with 

regard to services  to/from third  countries,  connection  of satellite terminals  to  the 

terrestrial public network, and harmonisation of future transmission  techniques for 

satellite broadcasting to the general public taking full  account of the pivotal role of 

satellites in the introduction of a Europe-wide High Definition Television (HDTV) 

standard. 

It also  concerns the promotion of the  development  of European standards  in  this 

field,  as  well  as  continuing  emphasis  on 

the  full  application  of  satellite 

communications systems in  applications,  and in  the implementation of Community 

policies. 

The details of the proposals are summarised in the subsequent chapter. 

VI. TOWARDS A COMMON APPROACH TO THE FIELD OF 
SATELLITE COMMUNICATIONS IN THE COMMUNI1Y: 
CONCLUSIONS AND PROPOSALS 

121 

In the light of the above considerations,  a  number of general conclusions,  drawn from  the 

preceding chapters, should be borne in mind. 

1. General Conclusions to be taken into account 

1. 

Developments in satellite technology in  recent years have opened up new economic 

and  social  opportunities  for  a  large  range  of new  actors  reaching  far  beyond  the 

traditional telecommunications sector. 

Dialogue  with  a  broad  range  of  parties  is  therefore  required  if a  balanced  way 

forward  is  to  be  found:  private  and  business  users  of  satellite  communications 

services,  telecommunications  and  broadcasting  organisations,  new  public  and 

private service providers,  telecommunications and  space industry,  government and 

public interests. 

2. 

Current regulation  of earth segment and  space segment in  the Member States still 

reflects,  in  most  cases,  the  situation  in  the  sixties  and  seventies  where  the  only 

technically  and  economically  feasible  application  of satellite  communications  was 

their use as an additional transmission  path to carry international or national long 

distance traffic for Telecommunications Organisations. 

The first  generation of satellite earth stations were large installations with only one 

or a very limited number of stations per country, connected  to and seen as part of 

the public  telecommunications  infrastructure,  and giving  access  to  the satellites  of 

the  International  Telecommunications  Satellite  Organisation  (INTELSAT),  and 

later,  also  to  the  satellites  of  the  International  Maritime  Satellite  Organisation 

(INMARSA T)  and  the  European  Telecommunications  Satellite  Organisation 

(EUTELSAT). 

The management and operation of these large earth stations required considerable 

resources  and  technical  know-how  which  was  generally  considered  only  to  be 

available in the Telecommunications Organisations. 

122 

3. 

This  situation  has  now  changed  substantially.  In  addition  to  the  traditional  large 

earth  stations  for  trunk  telephony  and  TV  programme  interchange,  new  earth 

stations are now available for specific user applications which operate with antenna 

diameters  of  0.5  - 2.5  meters  depending  on  the  application,  and  which  can  be 

installed under user control directly on  user  premises. Technological progress now 

allows  substantially more diversified configurations for  purposes other than simple 

alternative  transmission  paths  to  the  fixed  network.  These  configurations  can  be 

safely  operated  by  service  providers  other 

than 

the  Telecommunications 

Organisations, once appropriate regulatory safeguards have been established. 

4. 

The  traditional  applications - long-distance  trunk  telephony  and  short-term  high 

band-width  requirements  such  as  studio-to-studio  television  transmission - still 

account for  a major, though  declining, proportion of international satellite services. 

Satellite links still account for  nearly 60%  of transatlantic telephony,  though this is 

expected  to  fall  to  30 - 40%  by  1995.  Within  Europe,  satellite-carried  voice 

telephony  accounts  for  only  2 - 3%  of  intra-European  international  and  national 

long-distance  calls.  Nearly  75%  of  EUTELSAT's  revenues  are  accounted  for  by 

television distribution. 

5. 

With the exception  of television  distribution,  the role of satellites  over the coming 

decade  will  increasingly  be  characterised  by  two  fundamental  usage  traits:  short 

term deployment,  and  distinct  specialist  niche  markets.  Forecasts  show  that  while 

the provision of traditional "Fixed-Satellite Services"  in  Europe will continue  to  be 

dominated  by  the  telecommunications  and  broadcasting  organisations,  additional 

new  Europe-wide  markets  will  develop  in  such  fields  as  direct .satellite  television 

broadcasting,  private  business  services,  specialised  mobile  services  and  satellite 

news  gathering,  if current  regulatory  constraints  on  the  use  of the  earth  segment 

and  the  space  segment  are  relaxed  and  replaced  by  appropriate  regulatory 

safeguards. 

6. 

It should  be  noted  that while  essential  for  Europe-wide services  and Europe-wide 

coverage  of businesses  and  consumers,  forecasts  project  that  the  total  of satellite 

services  revenue  will  reach  no  more  than  1.5 - 2.5%  of total  telecommunications 

services  revenues  in  Europe by  the year  2000.  Currently,  the  total  revenue  of all 

satellite  carriers.  in  Europe  accounts  for  no  more 

than  0.4%  of 

total 

telecommunications revenues in the European Community. 

123 

These ratios are further borne out by  the experience in the United States or more 

recently in Japan which have substantially liberalised their satellite communications 

markets.  In  the United  States,  after  over  a  decade  of domestic "open  sky  policy", 

total  satellite  communications  revenues  account  for  no  more  than  2 - 3% of total 

telecommunications  revenues  while  liberalisation  has  in  practice  led 

to  a 

substantially  higher  and  more  diversified  development  of the  US  space  sector  in 

this area. 

7. 

The consensus  achieved  at  the Telecommunications  Council  of 7  December  1989 
has  identified  the  regulatory  safeguards which  Member  States  may  implement in 
licensing schemes in the telecommunications sector, in conformity with Community 

law  and  in  particular  competition  rules.  Proposed  regulatory  positions  on satellite 

communications  should  build,  by  extension,  on  the  rationale  underlying  this 

consensus, while taking full  account of the specifics of the satellite communications 

sector. 

In  particular,  exclusive  or  special  rights  may  be  entrusted  to  telecommunications 

organisations only for  the provision and operation of the terrestrial public network 

infrastructure  and  the  public  voice  telephony  service,  and  special  regulatory 

safeguards  may  be  established,  within 

licensing  schemes,  for.  public  data 

communications services,  in  accordance with Community competition rules and the 

procedures established in Commission Directive 90/388/EEC101 • 

Licensing schemes implementing regulatory safeguards must be based on objective 

criteria,  be  transparent and  non-discriminatory and  must  introduce  no  constraints 

except  those  set  out  above  or  based  on  "essential  requirements",  i.e.  network 

security and integrity and, in justified cases, interoperability and data protection. 

8. 

Future  regulatory  conditions  for  satellite  communications  must  respect  those 

regulatory safeguards  which  Member  States  may  apply  in  the  telecommunications 

sector in  accordance with  the procedures  mentioned,  but should  not  introduce any 

restrictions  beyond  those  related  to  specific  conditions  in  the  field  of  satellite 

communications, where these can  be justified in  accordance with  Community law -

in particular competition rules - and international commitments. 

Licensing schemes set up  by  Member States to implement regulatory safeguards in 

the satellite communications sector  must  in  particular be based on  objective facts, 

be proportionate to the objective sought, be transparent, and be non-discriminatory. 

101  Commission Directive of 28 June 1990 on competition in the markets for telecommunications services, 

90/388/EEC, OJ. L 192, 24.07.1990, p.  10. 

124 

9. 

An  essential  regulatory  safeguard  applicable  to  satellite  communications  and  of 

equivalent importance to the requirement of network security and network integrity 

in the terrestrial network, is the need to avoid unacceptable interference with other 

satellite  or  radio  communications  systems,  in  accordance  with  Council  Directive 

89 /336 /EEC102  concerning  electromagnetic  interference,  and  in  accordance  with 

the frequency coordination procedures agreed  on a  global basis by all members of 

the International Telecommunications Union, established in the Radio Regulations 

and  administered  by  the  International  Frequency  Registration  Board  of  the 

International Telecommunications Union. 

10. 

Any  restrictions  resulting  from  exclusive  or  special  rights  for  the  provision  and 

operation  of  the  terrestrial  public  network  infrastructure  and  for  the  public 

telephone service,  as well  as  the special  regulatory safeguards for  the provision  of 

public  data  services  established  by  Member  States  in  accordance  with  the 

procedures  mentioned  under  7.,  may  relate  to  satellite  communications  systems 

only in as far as they can be considered as  being equivalent to these two-way public 

service categories. 

Notwithstanding  the  special  provisions  applying  to  broadcasting  services  to  the 

general public mentioned under  15.,  one-way services by  definition do  not fall  into 

this category. 

11. 

Public  voice  telephone  service  is  defined  in  Community  legislation103,104  as  the 

commercial provision for  the public  of direct  transport of real-time speech via  the 

public  switched  network  or  networks  such  that  any  user  can  use  equipment 

connected  to  a  network  termination  point  to  communicate  with  another  user  of 

equipment connected  to  another  termination  point.  Packet- and  circuit-switched 

data  services  is  defined  as  the  commercial  provision  for  the  public  of  direct 

transport  of  data  via  the  public  switched  network  or  networks  such  that  any 

equipment  connected  to  a  network  termination  point  can  communicate  with 

equipment connected to another termination point. 

102  Council Directive on the approximation of the laws of Member States relating to electromagnetic 

compatibility, 89/336/EEC, 03/05/1989, OJ. L 139, 13/05/1989, p.  19. 

103  Commission Directive of 28 June 1990 on competition in the markets for telecommunications services, 

90/388/EEC, OJ. L 192, 24.07.1990, p.  10. 

104  Council Directive of 28 June 1990 on the establishment of the internal market for telecommunications 

services through the implementation of Open Network Provision, 90/387 /EEC, OJ. L 192, 24.07.1990, p.  1. 

125 

Even  large-scale  two-way  satellite  communications  systems - such  as  extensive 

VSAT systems - presently  only  comprise  up  to  a  few  thousand  terminals.  In this 

light, two-way satellite communications systems should only be considered as public, 

if  connected  to 

the  public  switched 

terrestrial  network  infrastructure  and 

interlinked with the public services mentioned in position 10. 

12. 

If a  Member State would  consider that very large satellite communications systems 

not connected with the terrestrial public switched network may obstruct, because of 

their  competition  with  the  telecommunications  organisation,  the  latter's  task  of 

providing  public  telecommunications  services,  it  would  have  to  be  demonstrat~d 

that such systems would  meet definitions and criteria equivalent to those set out in 

Directive 90/388/EEC105,  subject to Commission scrutiny under Treaty competition 

rules and always dependent Gn  the Community interest. 

13. 

By  analogy with  the safeguards mentioned  under 7.,  the only  regulatory safeguards 

which  could  be included  by  Member  States in  licensing arrangements  for  satellite 

communications  systems  not  connected  to  the  public  switched  network  are 

requirements for  the avoidance  of harmful interference as  laid  down  in  the  Radio 

Regulations, requirements concerning data protection and the protection of privacy 

where applicable, and standards to the extent required by Community law. 

14. 

Given the rapid development of technology and in particular of transmission, access 

and  coding  techniques,  any  technical  limitations,  such  as  limitation  on  bit  rates 

transmitted,  are  intrinsically  liable  to  obsolescence  and  should  not  be  used  as 

criteria in licensing procedures. 

15. 

Satellite broadcasting to the general public - including both applications in  terms of 

the definition  used in  the  Radio  Regulations for  Broadcasting-Satellite Services,  as 

well  as  broadcasting  applications  operating  in  the  framework  of  Fixed-Satellite 

Services - will  continue  to  be subject  to  the  specific  regulations  set  up  by  Member 

States in conformity with Community law,  in particular Directive 89 /552/EEC106 on 

Television without Frontiers. 

105  Commission Directive of 28 June 1990 on competition in the markets for telecommunications services, 

90/388/EEC, OJ. L 192, 24.07.1990, p.  10. 

106  Council Directive on the coordination of certain provisions laid down by law,  regulation or administrative 
action in Member States concerning the pursuit  of television broadcasting activities, 89 /552/EEC, 
03/10/1989, O.J. L 298, 17 /10/1989, p.  23. 

126 

As set forth  in COM(90)78101,  transmission standards requirements in this area are 

vital in  order  to  ensure basic  interoperability.  As  regards  Direct  Broadcasting by 

Satellite applications,  Directive  86/529/EEC108  has  identified  the  MAC family  of 

transmission techniques as the standard to be used. 

16. 

Preparation of future action concerning transmission techniques in this area should 

take account  of the consideration  that a  major challenge for  the future will  be the 

harmonised  introduction  of  a  Europe-wide  High  Definition  Television  (HDTV) 

standard,  in  which  the  use  of  satellites  will  play  a  vital  role  as  the  initial 

transmission  medium.  It  will  also  need  to  reflect  the  fact  that  technologiqil 

development  makes  it  increasingly  difficult  to  distinguish  between  those  services 

defined  as  Broadcasting-Satellite  Services  according  to  the  definitions  used 

internationally  under  ITU  regulations  and  broadcasting  applications  operating  in 

the framework of Fixed-Satellite Services. 

There  should  be  a  co-ordinated  approach  towards  a  review  of  the  criteria 

established  by  the  World  Administrative  Radio  Conference  of  1977  on  the 

provision  of Broadcast  Satellite  Services.  The  result  of this  review  should  also  be 

taken  fully  into  account  when  identifying  common  European  positions  for  the 

World Administrative Radio Conference of 1992. 

17. 

Mobile  satellite  services  which  for  reasons  of  technology  and  cost  will  focus  on 

specific user segments limited in size,  do  not differ substantially from  other one- or 

two-way  point-to-multipoint  satellite  communications  applications  and  should 

therefore  not  be  subject  to  any  additional  regulatory  constraints  or  safeguards 
beyond  those  applied  to  Fixed-Satellite  Services.  In  particular,  any  regulatory 

constraints should not prevent or hinder transborder operation. 

18.  With 

the 

implementation  of 

the  regulatory  safeguards  regarding  satellite 

communications services set out  above,  it will  be possible to initiate the two  major 

steps  which  are  needed  before  the  potential  of  the  provision  of  satellite 

communications services by both public and private providers can be fully  exploited 

in Europe: 

unrestricted  provision  and  use  of  satellite  earth  station  transmit/receive 

equipment; and 

107  Communication by the Commission to the Council and to the European Parliament on audio-visual policy, 

COM(90) 78, 21/02/1990. 

108  Council Directive on the adoption of common technical specifications of the MAC/packet family of standards 

for direct satellite television broadcasting, 86/529/EEC, 03/11/1986, OJ. L 311, p. 28. 

127 

full,  equitable  and  non-discriminatory  access  by  users  to  all  providers  of 

satellite space segment capacity. 

19. 

As  regards  satellite  earth  stations,  the  Green  Paper  on  the  development  of  the 

common market for  telecommunications services and equipment stated that "given 

the  trend  in  satellite  communications  towards  point-to-multipoint  broadcasting 

applications  for  closed  user  groups,  the  regulatory  regime  for  receive-only  earth 

stations (ROES)  for  satellite communications should  be assimilated  to  the  regime 

for  telecommunications  terminals and TV receive-only  satellite  antennas  and  fully 

opened to competition". 

Subsequently, Directive 88/301/EEC109  implemented this position for  "receive-only 

satellite stations not connected to the public network of a Member State". 

Receive-only  equipment  not  connected  to  the  public  switched  network  should  be 

subject  only  to  a  requirement  for  an  indication  of  compliance  with  suitable 

standards in  the  field  of electromagnetic  interference,  no  more  onerous  than  the 

procedures applying to other radio  receivers.  It should  not be subject to a licensing 

procedure. 

20. 

Transmit/receive  stations  should  be  subject  to  type  approval  and  licensing 

procedures in order to ascertain conformity with  the conditions as stipulated in  the 

proposed draft  Council Directive  in  this  area110,  and  in  accordance with  the  basic 

regulatory safeguards set out above. 

21. 

As regards access to  space segment capacity, given  the  multiplication of public and 

private actors _in  the  satellite communications field,  and  the  need  to create a  level 

playing  field, 

the  principle  of  separation  of  operational  and 

regulatory 

responsibilities should  be fully  implemented.  In  particular,  all  matters with  regard 

to  the  international  frequency.  coordination  procedures  including  equitable  access 

to  frequencies  and  the  geostationary  orbit,  should  be  regarded  as  a  regulatory 

responsibility. 

109  Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 

equipment (88/301/EEC), OJ. L 131, 27 /05/1988, p.  73. 

no 

(Proposal for a Council Directive on the approximation on the laws of the Member States concerning 
telecommunications terminal equipment, including the mutual recognition of their conformity, COM(89)289.) 

128 

This  separation  should  also  apply  to  all  intergovernmental  and  related  operating 

agreements  in  the  field.  With  regard  to  the  coordination  procedures  concerning 

"economic harm" potentially caused by  other providers of satellite capacity, as cited 

in 

the 

intergovernmental  conventions  underlying 

the 

international  satellite 

organisations, 

INfELSA T 

and 

INMARSA T, 

and 

the 

European 

telecommunications  satellite  organisation,  EUTELSAT,  they  are  unlikely,  in  the 

framework  of a  review  of these  procedures  by  the  Commission,  to  withstand  the 

test  of Community competition  rules  on the  basis  of the  principles set  out  in  the 

Commission guide-lines on the application of these rules to the telecommunications 

sector. 111 

22. 

The best solution  - and the only one which would seem suitable to avoid distorsion 

of competition and to allow full  use and best allocation of the existing international, 

national  and  private  space  segment  - would  be  for  Member  States  to  take  the 

necessary steps to ensure that users obtain direct access to space segment capacity, 

and for providers of this space segment to obtain the right to market space segment 

capacity directly to users. 

Member  States  should  eliminate  existing  restrictions  in  order  to  ensure  that  the 

principle of direct access by  all  users  on  equitable and  non-discriminatory terms to 

all providers of space segment capacity be fully  implemented. 

23. 

The  European  Telecommunications  Satellite  Organisation,  EUTELSAT,  should 

obtain full  commercial freedom  to  market its services in  Europe, in  order to give  it 

equal opportunity with  other space segment  providers  and  to  avoid  undue  market 

sharing  agreements  which  may  result  from  exclusive  resale  of  space  segment 

capacity via its signatories. 

24. 

Tariffs charged to users for  making space segment capacity available should  follow 

the overall principle of cost orientation and be in compliance with competition rules 

according to the principles set out in  the Commission guide-lines mentioned above. 

2. 

Proposed positions 

Taking account of these conclusions and  the preceding analysis,  four major changes 

of the regulatory environment seem necessary,  in  order to exploit fully  the potential of 

satellite communications for Europe: 

111  To be published 

129 

FULL  LIBERALISATION  OF  THE  EARTH  SEGMENT,  INCLUDING  THE 

ABOLITION OF ALL EXCLUSIVE OR SPECIAL RIGHTS IN THIS AREA, 

including both 

receive-only  terminals,  subject  to  appropriate  type  approval  procedur_es 

when connected to the public switched network; and 

transmit/receive  terminals,  subject  to  appropriate  type  approval  and 

licensing  procedures  where  justified  to  implement  necessary  regulatory 

safeguards; 

FREE (UNRESTRICTED) ACCESS TO SPACE SEGMENT CAPACITY, 

subject  to licensing procedures,  in  order  to safeguard  exclusive  or special  rights  or 

regulatory provisions set up  by  Member States in conformity with  Community law 

and based on the consensus achieved in  Community telecommunications policy. 

Access should be on an equitable, non-discriminatory and cost-oriented basis. 

FULL COMMERCIAL FREEDOM FOR SPACE SEGMENT PROVIDERS, 

including  direct  marketing  of  satellite  capacity  to  service  providers  and  users, 

subject  to  compliance  with  the  licensing  procedures  mentioned  above  and  in 

conformity with Community law,  in particular competition rules. 

HARMONISATION MEASURES AS FAR AS  REQUIRED TO FACILITATE 

THE PROVISION AND USE OF EUROPE-WIDE SERVICES 

This concerns  in  particular  the  mutual  recognition  of licensing  and  type  approval 

procedures, frequency coordination and  matters related  to coordination of services 

provided to and from countries outside the Community. 

The proposed positions resulting from  these considerations, are summarised in Box  I.  The 

Commission also  proposes the measures set out under sections 3. and 4. in order to create 

a harmonised environment for the implementation of the proposals. 

130 

BOXl 

The positions set out below aim at creating an optimal environment for the full use of 
satellite communications for Europe-wide systems and services, to the benefit of the 
European user, European industry and the European economy in general, while 
recognising necessary regulatory safeguards established in accordance with the 
consensus achieved in the framework of Community telecommunications policy at the 
Council meeting of 7 December 1989  - especially with regard to keeping the balance 
, 
between harmonisation and liberalisation  - in conformity with Community law, and in 
the light of the international commitments of the Member States. 

Earth Segment 

1. 

Entertainment broadcast (TV)  satellite reception terminals should not be 
subject to licensing or restrictions on their supply, installation, ownership, 
operation and maintenance. 

Receive-only satellite telecommunic~tions terminals should not be subject to 
licensing or restrictions on their supply, installation, ownership, operation and 
maintenance. 

All transmit/receive terminals may be subject only to type approval and their 
operation subject to licensing. 

2. 

3. 

Network control earth stations (hub stations) of satellite terminal networks 
may be operated under a licence. Interconnection with the public network 
should be allowed by this licence, subject to the conditions set out under 4. 
Connection to the public network must be equitable, non-discriminatory and 
cost-oriented. 

A hub station operator or service provider licenced by a Member State should 
not have to negotiate landing rights in other Member States since the reception 
of his or her services would automatically be authorised throughout the 
Community under Article 59 of the Treaty, subject only to non-discriminatory 
requirements that are justified by the general interest, as defined in point 4, in 
conformity with Community law. 

A European Telecommunications Standard, geared to ensuring the limitation of 
potential interference to an acceptable level should be prepared to facilitate 
mutual recogniti~n of type approval of transmit/receive terminals. Equipment 
constructed in accordance with such a standard should automatically be 
considered to fulfil the requirements concerning the avoidance of harmful 
interference, subject to the completion of the appropriate frequency 
coordination procedures. 

131 

BOXl 

A Directive for the mutual recognition of type approval procedures should be 
proposed for transmit/receive terminals, including the conditions for their 
installation, maintenance and operation. 

This Directive would also apply to receive-only terminals connected to the 
public switched network. 

Receive-only terminals not connected to the public switched network should not 
. be subject to type approval, but may be subject to a requirement for an 
indication of compliance with suitable standards in the field of electromagnetic , 
interference; possible measures aimed at avoiding the risk of fraud or of traffic 
interception shall not be more onerous than the procedures applying to other 
radio-receivers. 

4. 

Licensing conditions must be justified, be proportionate to the objective sought, 
be transparent and non-discriminatory, and must fully respect the principle of 
the separation of regulatory and operational functions. 

Licensing conditions for the operation of transmit/receive terminals not 
connected to the public switched network may include no other regulatory 
safeguards than those needed in order to guarantee the avoidance of harmful 
interference; requirements concerning data protection and the protection of 
privacy in justified cases; and standards to the extent required by Community 
law. 

Licensing conditions for the operation of hub stations and other terminals 
connected to the public switched network may include, in addition, regulatory 
safeguards to ensure compliance with restrictions resulting from exclusive or 
special rights for the provision of the public telephony service, as well as the 
special conditions and licensing schemes for the provision of public data 
services established by Member States in accordance with the principles set out 
in Directive 90/388/EEC on competition in the markets for telecommunications 
services. 

Where very large satelllite communication systems not connected with the 
terrestrial public switched network may obstruct the operation of services of 
general economic interest with which telecommunications organisations are 
entrusted, the regulatory safeguards described in the former paragraph may be 
applied to these systems subject to Commission scutiny under Treaty 
competition rules. 

No other restrictions than those provided for by the licensing conditions should 
apply. 

A Directive for a Community scheme for the mutual recognition of licences 
should be proposed, laying down, inter alia, the conditions for the issuing of 
operating licences for terminal networks, installation and maintenance 
organisations, and hub-stations operators, including the Community-wide 
operation of such systems under a single class licence in the case of operation in 
exclusive frequency bands. 

132 

BOXl 

For hub-stations, operation should be subject to the signature of an operating 
agreement with the relevant space segment operator.  This agreement should 
only include provisions aimed at ensuring the proper functioning of the satellite 
system and should be based on objective, transparent and non-discriminatory 
criteria. 

Space Segment 

5. 

The principle of the separation of regulatory and operational functions should 
be fully implemented with regard to access to and control of the space segment. 

All matters concerning equitable access to frequencies and the orbital resource 
should be treated in a similar fashion. 

In addressing these aspects, and in the framework of this Green Paper, Member 
States should ensure objective, transparent and non-discriminatory procedures, 
in particular with regard to the procedures concerning required co-ordination 
established within the radio regulations and administered by the International 
Frequency Registration Board of the International Telecommunications Union. 

6. 

Coordination procedures concerning "economic harm" by other providers of 
space segment capacity currently foreseen in the intergovernmental conventions 
underlying the international satellite organisations, INTELSAT and 
INMARSAT, and the European Telecommunications Satellite Organisation, 
EUTELSAT, should be reviewed in order to avoid discrimination between 
economic operators offering space segment, taking full account of the 
obligations of Member States and operators under Community competition 
rules. 

Such a review should take account of the international obligations of the 
Community and the Member States in the light of Community law and the 
requirement to safeguard a  balanced development of satellite communications 
world-wide, in particular with regard to the developing countries. 

Member States should support actions to render the "technical coordination" 
procedures foreseen by the intergovernmental conventions less cumbersome; 

7. 

Users should be able to obtain better access to space segment capacity.  For this 
purpose, it will be necessary to determine how to attain rapidly an open access, 
taking into account the international commitments of the Member States and 
Community law. 

At this stage of the analyses, the Commission considers that the solution which 
seems most suitable to avoid distortions of competition and to allow full use and 
best allocation of the existing space 'Segment could be to give users direct access 
to space segment capacity, including signal transmission towards the satellite, 
subject to compliance with the licensing conditions defined under 4. above ; 

133 

BOXI 

and then to give space segment providers the right to market space segment 
capacity directly to users. 

This should concern, inter alia, the following services: 

private networks not connected to the public switched telephone 
network for services including interactive voice; 

private networks for data transmission services and specialised 
business communications; 

the provision of direct-to-home satellite television services. 

In respect of the European Telecommunications Satellite organisation 
EUTELSAT, the objective to he attained is to allow it to obtain full commercial 
freedom to market its services across the Community. 

In the pursuit of this objective Member States  - for both the space segment 
providers registered under their own national responsibility and for those 
systems established in accordance with the relevant international 
intergovernmental conventions  - should ensure that the principle of direct 
access by users to all providers of space segment on equitable and non 
discriminatory terms be fully implemented. 

A first solution, already experienced in the Community, has been that 
signatories of this organisation have opened, under control of the competent 
regulatory authorities, an office for access to its capacity by operators of the 
earth segment in the Community. 

8. 

9. 

Tariffs charged to users for making space segment capacity available should 
follow the overall principle of cost-orientation. 

The procedures concerning the implementation of the objectives set out in S., 6., 
7. and 8. must be carried out by Member States in compliance with their 
obligations under Community law, in particular competition rules. 

10.  Mobile and position-fixing satellite services do not differ substantially from 
other two-way point-to-multipoint satellite communications applications and 
should therefore not be subject to regulatory constraints or safeguards other 
than those set out under 4. 

11.  Mobile terminal systems should be governed by the equivalent rules for fixed 

service receive-only, or transmit and receive, terminal systems in terms of type. 
approval of terminals and licensing. 

134 

BOXl 

12. 

The Directive for a Community scheme for the mutual recognition of licensing 
mentioned under 4. should make special provision for the unrestricted 
movement of mobile terminals throughout the Community and of the mutual 
recognition of licences for this purpose. 

13. 

Satellite broadcasting to the general public - including both applications in 
terms of the definition used in the Radio Regulations for Broadcasting-Satellite 
Services, as well as broadcasting applications operating in the framework of the 
Fixed-Satellite Services - will continue to be subject to the specific regulations 
set up by Member States in conformity with Community law, as defined in 
particular in Directive 89/552/EEC on the coordination of certain provisions 
laid down by law, regulation or administrative action in Member States 
concerning the pursuit of television broadcasting activities. 

14. 

Transmission standards requirements in this area are vital to ensure basic 
interoperability. As regards direct broadcasting applications, Directive 
86/529 /EEC has identified the MAC family of transmission techniques as the 
standard to be used. 

The development of concepts for the next generation direct Broadcasting 
Satellites should ensure compatibility with ongoing activities in the field of 
High Definition Television (HD1V) and its Europe-wide harmonised 
introduction. This should be taken into account in future actions regarding 
transmission techniques in this area, particularly in the actions succeeding the 
current MAC-packet Directive mentioned above, which expires on 31 December 
1991. 

In pursuing the implementation of these proposals, and the lifting of existing 
restrictions, the Commission will apply the competition rules of the Treaty to their full 
extent. 

3.  Measures for Facilitating Trans-European Services 

In order to implement the above proposed positions in a harmonised way, the Commission 

foresees that a number of Community measures will be required: 

135 

MUTUAL  RECOGNITION  OF  TYPE  APPROVAL  FOR  SATELLITE 

COMMUNICATIONS TERMINAL EQUIPMENT, 

extending the  coverage  of the  Directive  on  the  approximation  on  the laws  of the 

Member States  concerning telecommunications  terminal equipment,  including  the 

mutual  recognition  of their  conformity,  currently  under  discussion,  to  include  all 

transmit/receive satellite earth  stations,  and  to  include  receive-only  satellite earth 

stations connected to the public switched network as far as required. 

A COMMUNITY SCHEME CONCERNING THE MUTUAL RECOGNITION 

OF LICENCES FOR SATELLITE TERMINAL NETWORKS, 

laying  down,  inter  alia,  the  conditions  for  the  Community-wide  operation  of 

terminal networks and possible conditions regulating hub station operations. 

A  Directive  in  this  area  would  be  based  on  the  positions  set  out  and  should 

facilitate  the  establishment  of  two-way  networks  across  the  Community  by,  inter 

alia,  providing  for  class  licences  for  networks  operating  within  frequency  bands 

designated  with  priority  to  Community-wide  satellite  applications.  These  class 

licences  should  give  the  possibility  of operating,  e.g.,  VSAT  networks  throughout 

the  Community  under  a  single  licence,  without  any  need  of filrther  licensing  or 

frequency  coordination  for  the  individual  participating  satellite  terminals  in  the 

Member States.  Networks  operating within  non-exclusive  frequency  bands  should 

be licenced with a minimum of obligatory procedures for frequency coordination. 

STRENGTHENED FREQUENCY COORDINATION RELATED TO 

SATELLITE COMMUNICATIONS, 

136 

in  order  to  support  Community-wide  licensing,  building  on  the current  reform  of 

the  European  Radiocommunications  Committee  and  the  establishment  of  the 

European  Radiocommunications  Office,  set  up  by  the  European  Conference  of 

Postal  and  Telecommunications  Administrations,  and  taking  full  ac.count  of  the 

coordination procedures for frequencies and procedures for equitable access to the 

geostationary  orbit  globally  agreed  and  established  within  the  Radio  Regulations 

and  administered  by  the  International  Frequency  Registration  Board  of  the 

International Telecommunications Union. 

A Decision in this area should 

facilitate frequency  coordination in  this field  between Member States in  all 

cases  where  this  becomes  necessary,  taking  account  of  international 

coordination  procedures,  and  development  of  the  Community  satellite 

services environment; 

coordinate Community  positions  with  regard  to  the  World  Administrative 

Radio Conferences on frequencies and orbital allocation matters; 

create  the  mechanism  for  designating,  based  on  the  international  Radio 

Regulations 

and 

the 

recommendations 

of 

the 

European 

Radiocommunications  Committee,  certain  bands  with  priority 

to 

Community-wide  satellite  applications,  such  as  needed  for 

the  easy 

operation of class licences as set out above,  subject to  the completion of the 

international frequency coordination procedures; 

STRENGTHENED COORDINATION OF MEMBER STATES WITH 

REGARD TO SERVICES TO/FROM NON-COMMUNITY COUNTRIES, 

in order to  develop common  procedures with  regard  to  these  services,  building on 

the  general  principles  which  are  in  the  course  of  being  defined  within  the 

framework of the overall GA TI services agreement currently under negotiation. 

SPECIFIC DEFINITION OF OPEN NETWORK PROVISION (ONP) 

CONCERNING THE CONNECTION OF SATELLITE TERMINAL 

NETWORKS 

137 

to  the  terrestrial  public  network  infrastructure,  subject  to  the  constrain~s  and 

regulatory safeguards set out in  the proposed positions, in order to provide Europe 

wide  harmonised  interfaces  between  satellite  systems  and  the  public  network 

infrastructure,  based  on  the  principles  of equitable,  non-discriminatory  and  cost 

oriented access. 

This  would  extend 

the  coverage  of  Open  Network  Provision 

to  satellite 

communications networks  and would  therefore substantially faci 1 itate the  effective 

operation of the Community-wide licensing scheme set out above. 

HARMONISATION OF IDE1'4TIFIED FUTURE TRANSMISSION 
TECHNIQUES FOR SATELLITC: BROADCASTING TO TIIE GENERAL 

PUBLIC, 

to  succeed  Directive  86/529/EEC,  as 

referred 

to  m 

the  Commission's 

communication on audio-visual policy of 21February1990. 

Preparation of future action conc~rning transmission techniques in this area should 

take into account that a major immediate challenge  is  the harmonised introduction 
of a Europe-wide High Definition Television (HDTV) standard, in which the use of 

satellites will play a vital role as  the initial transmission medium. It will  also need to 

reflect  the  fact  that  technological  development  makes  it  increasingly  difficult  to 

distinguish  between  those  services  defined  as  Broadcasting-Satellite  .)ervices 

according  to  the  definitions  used  internationally  under  ITU  regulations,  and 
broadcasting applications operating in the framework of the Fixed-Satellite Service. 

There  should  be  a  co-ordinated  approach  towards  a  review  of  the  plan  criteria 

established  by  the  World  Administrative  Radio  Conference  of  1977  on  the 

provision of the Broadcasting-Satellite Service. The result of this review should also 

be taken  fully  into  account  when  identifying  common  European  positions  for  the 

World Administrative Radio Conference of 1992. 

4. Lines of Action for Creating a  Favourable Environment 

A  number  of  longer  term  action  lines  will  have  to  be  initiated,  in  order  to  create  the 

environment for the full implementation of the proposed positions set out. 

This concerns in particular changes which may be needed in the international environment 

of satellite communications; the production of standards; and the promotion of the full  use 

of satellite  technology  by  providers  and  Telecommunications  Organisations,  in  order  to 

create a strong European position in this area. 

138 

It is proposed to initiate the following lines of action: 

1. 

WORKING TOWARDS A  REVIEW OF THE EUTELSAT CONVENTION 

AND ITS OPERATING AGREEMENT, 

as far as required to implement the proposed positions set out above. 

Major issues in this context are: 

necessary  modifications  to  ensure  direct  access  for  users  to  EUTELSAT 

satellite capacity; 

future  handling  of  the  coordination  procedure  concerning  the  "economic 

harm" provision of the EUTELSAT convention; 

future handling of the technical coordination procedures as  foreseen  in the 

EUTELSAT convention; 

necessary  measures  for  implementing  future  commercial  independence  of 

EUTELSAT; 

mechanisms for ensuring cost-orientation of tariffs charged to users; 

implementation  of  the  separation  of  regulatory  and  operational  interests 

and opening of membership of the EUTELSAT consortium to new parties. 

Their total  investment  share of 88%  in  the  EUTELSAT organisation  means  that 

Member States must share the responsibility  for  redirection and adjustment of the 

EUTELSAT Convention and operating agreement in  order to ensure development 

of the potential of EUTELSAT to  the fullest  possible extent, in line with  the goals 

of the Single Market. 

2. 

DEFINING A COMMON POSITION IN THE INTERNATIONAL FORA 

RELATED TO SATELLITE COMMUNICATIONS. IN PARTICULAR WITH 

REGARD TO INTELSAT AND INMARSAT 

139 

The  INTELSAT  and  INMARSA T  conventions  imply  substantial  international 

commitments  for  the  Member  States.  With  28%  and  34%  investment  shares  in 

INTELSAT and  INMARSAT respectively,  Member States play  an  influential role 

in these global satellite organisations. 

While changes  as far  as  required  by  the  proposed  positions  set  out  may  therefore 

take  time  and  have  to  depend  on  the  evolving  global  environment,  a  number  of 

steps could be taken: 

-· 

Member States must, as  regards their own  representation,  apply strictly the 

principle of separation of regulatory and operational functions; 

Member States should support  INTELSAT proposals underway  and aimed 

at rationalising the economic harm coordination procedures; 

Member States should also support actions to render technical coordination 

procedures less cumbersome; 

Member  States  should  facilitate  access  to  both  organisations  via  the 

signatories and pay special  attention to  the implementation of the principle 

of the cost-orientation of tariffs; 

Member States should work jointly within  the two  organisations with regard 

to any further changes required by the proposed positions, taking account of 

the  need 

for 

a  balanced  world-wide  development  of  satellite 

communications and the special requirements of the developing countries. 

3. 

ACCELERATING STANDARDISATION WORK IN THE EUROPEAN 

TELECOMMUNICATIONS STANDARDS INSTITUTE WITH REGARD TO 

SATELLITE COMMUNICATIONS EQUIPMENT 

ETSI  has  allocated  with  the  creation  of a  special  technical  committee  (TC-SES -

Satellite Earth Stations) and  the definition of a  multi-annual work programme high 

priority to this area. 

In particular for the earth station equipment sector, standards are indispensable for 

the  effective  implementation  of  the  mutual  recognition  of  type  approval  and 

licensing of one-way and two-way satellite systems. The Commission intends to give 

high priority to this area in its working relations with ETSI. 

140 

4. 

PROMOTING THE FULL USE OF SATELLITE TECHNOLOGY IN 

APPLICATIONS. BY SERVICE PROVIDERS AND BY 

TELECOMMUNICATIONS ORGANISATIONS, 

in particular with regard to services for  the less-favoured  regions and the countries 

of Central  and  Eastern  Europe  which  are  now  integrating  themselves  into  the 

European telecommunications area. 

Satellites  will 

retain 

their  basic  advant~ges  with 

regard 

to 

terrestrial 

telecommunications: thin-route service and rapid deployment, as well as immediate 

large-area coverage for one-way applications. 

The Commission proposes as major objectives: 

Full  use  of the  technological  potential  of  the  European  Space  Agency,  in 

order to  develop  satellite  technologies  further  for  both  private  and  public 

applications; 

Full application  of satellite  communication  systems  in  the  implementation 

of Community policies. 

This  concerns  in  particular  the  use  of  advanced  telecommunications  for 

regional development.  Through  its STAR programme, the Commission has 

given  financial  support  for  the setting up  of major  satellite ground stations 

and business services terminals for transmission links. 

It  also  concerns  the  Community  policies  for  education  and  training, 

transport and fishing and for the developing countries. 

Full  attention  to  the  role  of  satellites  in  the  context  of  the  future 
development  of  telecommunications  in  the  Community,  in  particular  as 
regards Europe-wide services,  as  well  as for  the  development  of Integrated 

Broadband Communications (IBC). 

GLOSSARY 

141 

a device for transmitting and/ or receiving radio signals.  In earth station 
terminals, it usually takes the form of a parabolic reflector. Antenna 
diameters of television reception are typically in the order of 60-120 cm, 
while for transmit and/or receive private business terminals the 
diameters range from 60-250 cm. Antennas for satellite earth stations for 
trunk telephony and TV uplinking typically have diameters of 8-20 
meters. 

of a radio frequency or radio frequency channel:  authorisation given by 
an administration for use of a particular radio frequency or radio 
' 
frequency channel and under specified conditions.  See Article 1. of the 
Radio Reg1.1latio11s  foe the definitive terminology. 

Antenna: 

Assignment: 

Broadcasting-Satellite Service(BSS): 

the transmission and reception via satellite of signals which are intended 
for direct  reception by the general public. 

Community Access Television  (CA1V) 
or "cable 1V": 

C-band: 

CCIR: 

CCIIT: 

CEPT: 

DBS: 

the distribution of television signals from a central antenna or 
"head-end", to subscribers' homes over a coaxial cable network. The 
"head-end" may receive signals from either a satellite or a terrestrial 
radio transmission system. Satellite signals received at a cable head-end 
would normally use the Fixed-Satellite Service frequency bands. 

frequency bands around 4 Gigahertz and 6 Gigahertz (GHz) used for 
the Fixed-Satellite service. The higher frequencies, around 6 GHz, are 
used for the "uplink" (from earth to space) and the lower frequencies, 
around 4 GHz, are used for the "downlink" (from space to earth). 

lntemational Radio Consultative Committee, one of the two main 
consultative committees of the bttematio11al Telecommunications Union 
(ITU).  The CCIR is responsible for the study of technical and operating 
questions on radio communications and for the ~ue of relevant 
recommendations. 

Intemational Telegraph  and Telephone Consultativt! Committee, one of 
the two main consultative committees of the International 
Telecommunications Union.  The CCITI provides a forum where 
telecommunications authorities can agree inter alia on world-wide 
technical and operational recommendations. 

Eumpean Conference of Postal and Telecommunications Administrations. 

Direct Bmaclcasting by Satellite. The distribution of signals, usually 
television but possibly also sound and data, directly to a satellite receiver 
at the customer's premises (rather than, for example, to a CATV system) 
via a satellite using the Broadcasting-Satellite Service frequency bands. 
The same service can also be carried out via a satellite using the Fixed 
Satellite Service frequency bands, in which case it is referred to as the 
Direct To Home (DTH) service. 

Downlink: 

Earth Segment: 

Earth Station: 

ESA: 

EUTELSAT: 

Fixed-Satellite Service (FSS): 

Footplint: 

Geostationary satellite: 

GigaHertz (GHz): 

142 

the space-to-earth transmission path, i.e. the radio link from the 
transmitting satellite to the receiving satellite earth station. The 
downlink originates from the transmitting antenna on board the satellite, 
from which the beam spreads out to cover a certain zone on the earth's 
surface (see "footprint"). While the coverage zone can be shaped to a 
certain extent, it cannot follow a country's border exactly and so there is 
inevitably a eertain amount of unwanted coverage or "overspill". 

the part of a satellite communications network formed by the satellite 
earth stations. 

Refer to Satellite  Temiinal. 

European Space Agency, the major European organisation to carry out 
research and technological development on space-related subjects, 
including satellite telecommunications. 

European  Telecommunications Satellite Organisation.  The terms of the 
agreement are defined in the EUTELSAT Convention and a 
complementary agreement called the EUTELSAT Operating 
Agreement.  The combined investment share of Community Member 
States is 88 %. 

a radiocommunication service between satellite terminals at specific 
fixed points using one or more satellites. This service may include 
satellite-to-satellite links or feeder links for other space 
radiocommunications services such as the mobile-satellite se1Vice  or the 
Broadcasting-Satellite se1vice. 

the area within which the power received on earth from a satellite 
downlink beam equals or exceeds a certain level. A  satellite may carry 
several different downlink antennas and therefore have several different 
footprints. The aim of the satellite designers is generally to concentrate 
the satellite's power where it will be most useful, i.e. in the desired 
coverage zone, but this can only be done approximately so inevitably 
some power will be misdirected and may overspill into neighbouring 
areas. 

a satellite whose period of revolution is equal to the period of rotation 
of the earth about its axis and whose orbit lies in the plane of the earth's 
equator. Such a satellite will be in orbit about 36,000 km above the 
equator but will appear approximately fDCed  relative to the earth. The 
ability to place satellites in geostationary orbit was crucial to the 
development of satellite communications as it enabled large, fDCed  earth 
stations to be used with minimal "tracking" or repointing of the antenna 
to follow  the satellite on its apparent path through the sky. Most 
communications satellites are in geostationary orbit. 

a frequency equal to one thousand million Hertz or cycles per second. 
The Hertz is the basic unit of frequency, which is used to measure how 
many times in a second an electromagnetic wave completes its full cycle 
from its positive to its negative pole and back again. 

HD1V: 

High-power satellite: 

IFRB: 

INMARSAT: 

INTELSAT: 

ITU: 

K-band: 

Ka-band: 

143 

High  Definition  Television, the transmission and reception of a higher 
quality television picture than is currently available. Normal television 
pictures have an "aspect ratio" (the ratio of picture width to picture 
height) of 4:3, and a maximum of 625 lines of picture information. High 
definition television will have a wider aspect ratio (16:9) and 1250 lines 
of information, giving a picture quality closer to cinema standards. 

usually a satellite operating in  the Broadcasting-Satellite service (BSS) 
frequency bands, providing direct broadcasting services to user receiving 
antennas of small size (down to 50-60 cm). The high power in each 
individual channel transmitted tends to limit the number of channels 
which can be provided over a high-power satellite, in some cases to as 
low as five. 

Intemationa/ Frequency Registration Board.  A permanent organ of the' 
Intemational Telecommunications  Union  effecting orderly recording of 
frequency assignments and orbital positions assigned to geo-stationary 
satellites. 

The duties of the IFRB are enumerated in Article 10(5) of the ITU 
Constitution and concern in particular "to furnish advice to Members 
with a view to the operation of the maximum practicable number of 
radio channels in those portions of the spectrum where harmful 
interference may occur", as well as "to perform any additional duties, 
concerned with the assignment and utilisation of frequencies and with 
the equitable utilisation of the geostationary-satellite orbit ... ". 

The  Intemational Man'time  Satellite Organisation.  The terms of the 
agreement are defined in the INMARSAT Convention.  The 
Community Member States have a total investment share of 34 %. 

The  /111ema1io11al  Teleco111municatio11s Satellite Organisatio11.  The terms 
of the agreement are defined in the INTELSAT Convention, 
supplemented by an Operating Agreement.  The Community Member 
States have a total investment share of 28 %. 

/ntemational Teleco111111u11icatio11s  U11ion,  the United Nations' specialised 
agency for telecommunications. The ITU holds periodic conferences at 
which telecommunications issues of global importance are discussed; the 
main conferences are the World Administrative Radio Conference 
(WARC) and the World Administrative Telephone and Telegraph 
Conference (WATIC).  The ITU also has a number of permanent 
organs including the /FRB, CCIR  and CCJTT. 

the generic name for all frequencies in the range 10 to 36 GHz. Under 
the Radio Regulations (see ITU) this range is divided into many sub 
ranges which are variously allocated to both terrestrial and satellite 
services. 

the upper portion of the K-band, from approximately 17 to 31 GHz. This 
band is not yet  used commercially.  Some frequencies in this range are 
being examined for future satellite use. 

Ku-band: 

Land mobile-satellite service: 

MAC: 

Maritime mobile-satellite se1Vice: 

MA1V: 

Medium-power satellite: 

MSS: 

Point-to-point: 

Point-to-multipoint: 

144 

the lower portion of the K-band, from approximately 10 GHz to 19GHz. 
Where satellite communications are concerned, Ku-band generally refers 
to the frequencies around llGHz (for "downlink" or space-to-earth 
transmissions) and 14GHz (for "uplink" or earth-to-space transmissions) 
allocated to the fixed and Broadcasting-Satellite setvices. 

A radiocommunication service between mobile earth stations located on 
land and one or more satellites, or between mobile earth stations based 
on land by means of one or more satellites. 

Multiplexed Analogue Components, a method of transmitting television 
images whereby the separate components of a TV picture (sound, 
chrominance and luminance) are transmitted in analogue form but in 
different time-slots of a "time-division multiplexed" signal.  The MAC 
family of standards is referred to in Council Directive 86/529/EEC.  ' 

A radiocommunication service between coast earth stations and earth 
stations located on board ships, or between earth stations Jocated on 
board ships; survival craft stations and emergency position-indicating 
radio beacon stations may also participate in this service. 

MasterA11te1111a  Television,  a system in which a single, central antenna is 
used to receive television signals, either from a terrestrial 
radiocommunication system or from a satellite. The television signals are 
then distributed via coaxial cable to a closed group of users, for example, 
to individual apartments in an apartment block or to rooms in a hotel. 

generally a satellite with a large number (25 - 30) channels, but which 
transmits less power in each channel than a high-power satellite. 
Medium-power satellites were originally intended for point-to-point 
telephony and television distribution to the head-ends of cable TV 
systems, bul with  improved antenna technology and receiver sensitivity it 
has also proved possible to use them for television distribution direct-to 
home with antennas of reasonable size (0.8 - 1.2m) throughout much of 
Europe. 

Mobile-Satellite Se1vice.  A radiocommunications 'service between 
mobile-satellite earth stations and one or more satellites. 

one-way or two-way communications between two points only. The 
services which use satellites for point-to-point communications include 
voice transmission,  high-speed data links and television distribution to 
cable head-ends. 

one-way or two-way communications from a central point to a number of 
subsidiary points, and vice versa. One-way point-to-multipoint 
applications for satellites include data broadcasting and television 
transmission direct to users' premises; two-way point-to-multipoint 
applications include data networks with a return path and interactive 
distance learning methods. In two-way point-to-multipoint networks 
there is frequently an asymmetry in the data flow,  in that more 
information flows  from  the central station to the peripheral stations than 
in the opposite direction. 

Radio Regulations: 

The Radio Regulations are agreed by the ITU World Administrative 
Radio Conferences. 

145 

Article 11  of the Radio Regulations deals with the proposed 
establishment of a satellite system, Articles 12 and 13 with the 
notification procedures (and Article 15 with coordination of BSS band 
use and Article lSA with FSS band use); Chapter V. deals with 
interference. 

Article 1 of the Radio Regulations also provide definitions such as 
allocation, allotment and assignment of a radio frequency or a radio 
frequency channel. 

Satellite seivices provider: 

Provider of a radiocommunications service via space segment capacity. 

Satellite tenninal: 

Also referred to as earth station.  A station located on the earth's 
surface and intended for communication with one or more terminals of 
the same kind by means o.f a satellite; the terminal consists of one or 
more transmitters or receivers or a combination of transmitters and 
receivers, including the accessory equipment, necessary at one location 
for carrying on a radiocommunication service. 

Space segment: 

The part of a satellite system formed by the satellite or satellites. 

Space segment capacity: 

Transmission capacity available in a satellite system normally relating to 
the power and number of satellites. 

Space segment provider: 

Operator providing space segment. 

Telecommunications Organisations: 

Transponder. 

Space segment  providers are the international telecommunications 
satellite organisations as well as national and private operators. 

Defined according to Council Directive 90/388/EEC as the public or 
private bodies, to which a Member State grants special or exclusive 
rights for the provision of a public telecommunications network and, 
where applicable, public telecommunications services.  Also referred to 
as ''Telecommunications Administrations". 

the part of a communications satellite which receives a signal from an 
earth station, shifts it  from  the uplink frequency to the downlink 
frequency,  amplifies it  and retransmits it  to another earth station or 
stations. The signal  is redirected back to earth in a broad wide-area 
coverage. Medium-power satellites generally can have up to 30 
transponders;  high-power satellites have fewer. The new generation of 
INTELSAT satellites, said to be the largest and most complex ever built, 
have a total of 48 transponders; the first  of these satellites was launched 
in October 1989. A single transponder can normally carry one television 
channel, or up to about 1700 telephone bearer cirruits. 

Uplink: 

the earth-to-space transmission path, i.e. transmitting a signal from a 
satellite terminal to a satellite. 

Vide~onferencing: 

VSAT: 

WARC: 

146 

a service which links two or more locations through live video and audio 
transmissions. Its main users are the business community, since it can to 
some extent replace face-to-face meetings and reduce company travel 
costs. Some companies install private videoconferencing studios in their 
own premises, while others use "public" videoconferencing rooms rented 
out by the telecommunications organisations. Besides live images (which 
are generally below television standard), the videoconferencing link can 
also provide data, facsimile and graphics transmission. 

Ve1y Small Ape11ure  Tenninal. Refers to small earth stations, usually with 
antenna diameter below 2.Sm, which can be installed at a user's own 
premises and used for one-way or two-way private communications. Also 
known as microstations. 

the World Administrative Radio Conference.  WARC is one of the main 
conferences of the ITU (q.v.). It meets to determine international radio 
communications standards and policy. WARC meetings are of particular 
importance to satellite communications because it is there that the 
Radio Regulations, which determine which frequency bands may be used 
for a particular service (e.g.  Fixed-Satellite service, broadcast satellite 
service, mobile satellite service, etc.) are agreed upon. Special WARG 
meetings also agree_ upon the international allocation of positions in the 
geostationary orbit, which, like the frequency spectrum, is regarded as a 
shared global  resource. 

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