An Act to provide for the establishment, ownership, operation, and regulation of a commercial communications satellite system, and for other purposes
PL 87-624 (H.R.11040), enacted 08/31/1962

76 STAT. ] 
PUBUC LAW 87-624-AUG. 31, 1962 
419 
Public Law 87-624 
A N A C T 
August 31, 1962 
To provide for the establishment, ownership, operation, and regulation of a 
[H. R. IIO40] 
commercial communications satellite system, and for other purposes. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assembled^ 
TITLE I—SHOBT TITLE, DECLARATION OF POLICY AND 
DEFINITIONS 
SHORT TITLE 
SEC. 101. This Act may be cited as the "Communications Satellite 
communications 
Act of 1962". 
fS*'""* ^
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DECLARATION OF POLICY AND PURPOSE 
SEC. 102. (a) The Congress hereby declares that it is the policy of 
the United States to establish, in conjunction and in cooperation with 
other countries, as expeditiously as practicable a commercial communi-
cations satellite system, as part of an improved global communications 
network, which will be responsive to public needs and national ob-
jectives, which will serve the communication needs of the United 
States and other countries, and which will contribute to world peace 
and understanding. 
(b) The new and expanded telecommunication services are to be 
made available as promptly as possible and are to be extended to pro-
vide global coverage at the earliest practicable date. 
In effectuating 
this program, care and attention will be directed toward providing 
such services to economically less developed countries and areas as 
well as those more highly developed, toward efficient and economical 
use of the electromagnetic frequency spectrum, and toward the reflec-
tion of the benefits of this new technology in both quality of services 
and charges for such services. 
(c) In order to facilitate this development and to provide for the 
widest possible participation by private enterprise, United States 
participation in the global system shall be in the form of a private 
corporation, subject to appropriate governmental regulation. 
It is 
the intent of Congress that all authorized users shall have nondiscrim-
inatory access to the system; that maximum competition be maintained 
in the provision of equipment and services utilized by the system; that 
the corporation created under this Act be so organized and operated 
as to maintain and strengthen competition in the provision of commu-
nications services to the public; and that the activities of the corpora-
tion created under this Act and of the persons or companies partici-
pating in the ownership of the corporation shall be consistent with the 
Federal antitrust laws. 
(d) It is not the intent of Congress by this Act to preclude the use 
of the commun cations satellite system for domestic communication 
services where consistent with the provisions of this Act nor to pre-
clude the creation of additional communications satellite systems, if 
required to meet unique governmental needs or if otherwise required 
in the national interest. 
DEFINITIONS 
SEC. 103. A S used in this Act, and unless the context otherwise 
requires— 
(1) the term "communications satellite system" refers to a sys-
tem of communications satellites in space.whose purpose is to relay 
telecommunication information between satellite terminal sta-
420 
PUBLIC LAW 87-624-AUG. 31,1962 
[76 STAT . 
tions, together with such associated equipment and facilities for 
tracking, guidance, control, and command functions as are not 
part of the generalized launching, tracking, control, and command 
facilities for all space purposes; 
(2) the term "satellite terminal station" refers to a complex 
of communication equipment located on the earth's surface, opera-
tionally connected with one or more terrestrial communication 
systems, and capable of transmitting telecommunications to or 
receiving telecommunications from a communications satellite 
system. 
(3) the term "communications satellite" means an earth satel-
lite which is intentionally used to relay telecommunication in-
formation ; 
(4) the term "associated equipment and facilities" refers to 
facilities other than satellite terminal stations and communica-
tions satellites, to be constructed and operated for the primary 
purpose of a communications satellite system, whether for ad-
ministration and management, for research and development, or 
for direct support of space operations ; 
(5) the term "research and development" refers to the concep-
tion, design, and first creation of experimental or prototype 
operational devices for the operation of a communications satel-
lite system, including the assembly of separate components into 
a working whole, as distinguished from the term "production," 
which relates to the construction of such devices to fixed specifi-
cations compatible with repetitive duplication for operational 
applications; and 
(6) the term "telecommunication" means any transmission, 
emission or reception of signs, signals, writings, images, and 
sounds or intelligence of any nature by wire, radio, optical, or 
other electromagnetic systems. 
(7) the term "communications common carrier" has the same 
meaning as the term "common carrier" has when used in the 
48 Stat. 1064. 
Commuuicatious Act of 1934, as amended, and in addition in-
47 use 609. 
eludes, but only for purposes of sections 303 and 304, any indi-
vidual, partnership, association, joint-stock company, trust, cor-
poration, or other entity which owns or controls, directly or in-
directly, or is under direct or indirect common control with, any 
such carrier; and the term "authorized carrier", except as other-
wise provided for purposes of section 304 by section 304(b) (1), 
means a communications common carrier which has been au-
thorized by the Federal Communications Commission under the 
Communications Act of 1934, as amended, to provide services by 
means of communications satellites; 
(8) the term "corporation" means the corporation authorized 
by title I I I of this Act. 
(9) the term "Administration" means the National Aeronau-
tics and Space Administration; and 
(10) the term "Commission" means the Federal Communica-
tions Commission. 
76 STAT. ] 
PUBLIC LAW 87-624-AUG. 31, 1962 
421 
TITLE II—FEDERAL COORDINATION, PLANNING, AND 
REGULATION 
IMPLEMENTATION OF POLICY 
SEC. 201. In order to achieve the objectives and to carry out the 
purposes of this Act— 
(a) the President shall— 
(1) aid in the planning and development and foster the 
execution of a national program for the establishment and 
operation, as expeditiously as possible, of a commercial com-
munications satellite system; 
(2) provide for continuous review of all phases of the 
development and operation of such a system, including the 
activities of a communications satellite corporation author-
ized under title I I I of this Act; 
(3) coordinate the activities of governmental agencies 
with responsibilities in the field of telecommunication, so as 
to insure that there is full and effective compliance at all 
times with the policies set forth in this Act; 
(4) exercise such supervision over relationships of the 
• 
corporation with foreign governments or entities or with 
international bodies as may be appropriate to assure that such 
relationships shall be consistent with the national interest 
and foreign policy of the United States; 
(5) insure that timely arrangements are made under which 
there can be foreign participation in the establishment and 
use of a communications satellite system; 
(6) take all necessary steps to insure the availability and 
appropriate utilization of the communications satellite sys-
tem for general governmental purposes except where a sep-
arate communications satellite system is required to meet 
unique governmental needs, or is otherwise required in the 
national interest; and 
(7) so exercise his authority as to help attain coordinated 
and efficient use of the electromagnetic spectrum and the 
technical compatibility of the system with existing com-
munications facilities both in the United States and abroad. 
(b) the National Aeronautics and Space 
Administration 
shall— 
(1) advise the Commission on technical characteristics of 
the communications satellite system; 
(2) cooperate with the corporation in research and de-
velopment to the extent deemed appropriate by the Admin-
istration in the public interest; 
(3) assist the corporation in the conduct of its research 
and development program by furnishing to the corporation, 
when requested, on a reimbursable basis, such satellite launch-
ing and associated services as the Administration deems nec-
essary for the most expeditious and economical development 
of the communications satellite system; 
(4) consult with the corporation with respect to the tech-
nical characteristics of the communications satellite system; 
(5) furnish to the corporation, on request and on a reim-
bursable basis, satellite launching and associated services re-
quired for the establishment, operation, and maintenance 
of the communications satellite system approved by the 
Commission; and 
422 
PUBLIC LAW 87-624-AUG. 31, 1962 
[76 STAT. 
(6) to the extent feasible, furnish other services, on a reim-
bursable basis, to the corporation in connection with the 
establishment and operation of the system, 
(c) the Federal Communications Commission, in its adminis-
tration of the provisions of the Communications Act of 1934, as 
48 Stat. 1064. 
amended, and as supplemented by this Act, shall— 
47 use 609. 
^-^^ insure effective competition, including the use of com-
petitive bidding where appropriate, in the procurement by 
the corporation and communications common carriers of ap-
paratus, equipment, and services retjuired for the establish-
ment and operation of the communications satellite system 
and satellite terminal stations; and the Commission shall 
consult with the Small Business Administration and solicit 
its recommendations on measures and procedures which will 
insure that small business concerns are given an equitable op-
portunity to share in the procurement program of the corpo-
ration for property and services, including but not limited to 
research, development, construction, maintenance, and repair. 
(2) insure that all present and future authorized carriers 
shall have nondiscriminatory use of, and equitable access 
to, the communications satellite system and satellite terminal 
stations under just and reasonable charges, classifications, 
practices, regulations, and other terms and conditions and 
regulate the laanner in which available facilities of the sys-
tem and stations are allocated among such users thereof; 
(3) in any case where the Secretary of State, after obtain-
ing the advice of the Administration as to technical feasi-
bility, has advised that commercial communication to a par-
ticular foreign point by means of the communications satellite 
system and satellite terminal stations should be established 
in the national interest, institute forthwith appropriate pro-
ceedings under section 214(d) of the Communications Act of 
57 Stat. 12. 
1934, as amended, to require the establishment of such com-
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munication by the corporation and the appropriate common 
carrier or carriers; 
(4) insure that facilities of the communications satellite 
f 
system and satellite terminal stations are technically compat-
ible and interconnected operationally with each other and 
with existing communications facilities; 
(5) prescribe such accounting regulations and systems and 
engage in such ratemaking procedures as will insure that any 
economies made possible by a communications satellite system, 
are appropriately reflected in rates for public communication 
services; 
(6) approve technical characteristics of the operational 
communications satellite system to be employed by the cor-
poration and of the satellite terminal stations; and 
(7) grant appropriate authorizations for the construction 
and operation of each satellite terminal station, either to the 
corporation or to one or more authorized carriers or to the 
corporation and one or more such carriers jointly, as will best 
serve the public interest, convenience, and necessity. 
In de-
termining the public interest, convenience, and necessity the 
Commission shall authorize the construction and operation 
of such stations by communications common carriers or the 
corporation, without preference to either; 
(8) authorize the corporation to issue any shares of capital 
stock, except the initial issue of capital stock referred to in 
section 304(a), or to borrow any moneys, or to assume any 
47 use 214. 
76 STAT. ] 
PUBLIC LAW 87-624-AUG. 31, 1962 
423 
obligation in respect of the securities of any other person, 
upon a finding that such issuance, borrowing, or assumption 
is compatible with the public interest, convenience, and neces-
sity and is necessary or appropriate for or consistent with 
carrying out the purposes and objectives of this Act by the 
corporation; 
(9) insure that no substantial additions are made by the 
corporation or carriers with respect to facilities of the system 
or satellite terminal stations unless such additions are re-
quired by the public interest, convenience, and necessity; 
l 
(10) require, in accordance with the procedural require-
ments of section 214 of the Communications Act of 1934, as 
amended, that additions be made by the corporation or car- 
57 stat. 11. 
riers with respect to facilities of the system or satellite 
^' "^^ ^**' 
terminal stations where such additions would serVe the pub-
lic interest, convenience, and necessity; and 
(11) make rules and regulations to carry out the pro-
visions of this Act. 
TITLE III—CKEATION OF A COMMUNICATIONS 
SATELLITE COKPORATION 
CREATION OP CORPORATION 
SEC. 301. There is hereby authorized to be created a communica-
tions satellite corporation for profit which will not be an agency or 
establishment of the United States Government. 
The corporation 
shall be subject to the provisions of this Act and, to the extent con-
sistent with this Act, to the District of Columbia Business Corporation 
Act. The right to repeal, alter, or amend this Act at any time is 
68 stat. 177. 
expressly reserved. 
29^901.*^*"** 
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PROCESS OF ORGANIZATION 
SEC. 302. The President of the United States shall appoint incor-
porators, by and with the advice and consent of the Senate, who shall 
serve as the initial board of directors until the first annual meeting 
of stockholders or until their successors are elected and qualified. 
Such incorporators shall arrange for an initial stock offering and 
take whatever other actions are necessary to establish the corporation, 
including the filing of articles of incorporation, as approved by the 
President. 
DIRECTORS AND OFFICERS 
SEC. 303. (a) The corporation shall have a board of directors con-
sisting of individuals who are citizens of the United States, of whom 
one shall be elected annually by the board to serve as chairman. 
Three 
members of the board shall be appointed by the President of the United 
States, by and with the advice and consent of the Senate, effective the 
date on which the other members are elected, and for terms of three 
years or until their successors have been appointed and qualified, ex-
cept that the first three members of the board so appointed shall 
continue in office for terms of one, two, and three years, respectively, 
and any member so appointed to fill a vacancy shall be appointed only 
for the unexpired term of the director whom he succeeds. Six mem-
bers of the board shall be elected annually by those stockholders who 
are communications common carriers and six shall be elected annually 
by the other stockholders of the corporation. 
No stockholder who 
is a communications common carrier and no trustee for such a stock-
holder shall vote, either directlj or indirectly, through the votes of 
subsidiaries or affiliated companies, nominees, or any persons subject to 
carrier." 
424 
PUBLIC LAW 87-624-AUG. 31, 1962 
[76 STAT. 
his direction or control, for more than three candidates for member-
ship on the board. 
Subject to such limitationj the articles of incor-
poration to be filed by the incorporators designated under section 
302 shall provide for cumulative voting under section 27(d) of the 
District of Columbia Business Corporation Act (D.C. Code, sec. 
68 Stat. 191. 
2 9 - 9 1 1 ( d ) ) . 
(b) The corporation shall have a president, and such other officers 
as may be named and appointed by the board, at rates of compensation 
fixed by the board, and serving at the pleasure of the board. No in-
dividual other than a citizen of the United States may be an officer 
of the corporation. No officer of the corporation shall receive any 
salary from any source other than the corporation during the period 
of his employment by the corporation. 
FINANCING OF THE CORPORATION 
SEO. 304. (a) The corporation is authorized to issue and have out-
standing, in such amounts as it shall determine, shares of capital stock, 
without par value, which shall carry voting rights and be eligible for 
dividends. The shares of such stock initially offered shall be sold at 
a price not in excess of $100 for each share and in a manner to en-
courage the widest distribution to the American public. Subject to 
the provisions of subsections (b) and (d) of this section, shares of 
stock offered under this subsection may be issued to and held by any 
person. 
•^Authorized 
(b) (1) For the purposes of this section the term "authorized car-
~'" " 
rier" shall mean a communications common carrier which is specifi-
cally authorized or which is a member of a class of carriers authorized 
by the Commission to own shares of stock in the corporation upon, a 
finding that such ownership will be consistent with the public interest, 
convenience, and necessity. 
(2) Only those communications common carriers which are author-
ized carriers shall own shares of stock in the corporation at any time, 
and no other communications common carrier shall own shares either 
directly or indirectly through subsidiaries or affiliated companies, 
nominees, or any persons subject to its direction or control. 
Fifty 
per centum of the shares of stock authorized for issuance at any time 
by the corporation shall be reserved for purchase by authorized car-
riers and such carriers shall in the aggregate be entitled to make pur-
chases of the reserved shares in a total number not exceeding the total 
number of the nonreserved shares of any issue purchased by other 
persons. At no time after the initial issue is completed shall the ag-
gregate of the shares of voting stock of the corporation owned by 
authorized carriers directly or indirectly through subsidiaries or 
affiliated companies, nominees, or any persons subject to their direc-
tion or control exceed 50 per centum of such shares issued and out-
standing. 
(3) At no time shall any stockholder who is not an authorized 
carrier, or any syndicate or affiliated group of such stockholders, own 
more than 10 per centum of the shares of voting stock of the corpora-
tion issued and outstanding. 
(c) The corporation is authorized to issue, in addition to the stock 
authorized by subsection (a) of this section, nonvoting securities, 
bonds, debentures, and other certificates of indebtedness as it may 
determine. 
Such nonvoting securities, bonds, debentures, or other 
certificates of indebtedness of the corporation as a communications 
common carrier; may own shall be eligible for inclusion in the rate 
base of the carrier to the extent allowed by the Commission. 
The vot-
76 STAT. ] 
PUBLIC LAW 87-624~AUG. 31, 1962 
425 
ing stock of the corporation shall not be eligible for inclusion in the 
rate base of the carrier. 
(d) Not more than an aggregate of 20 per centum of the shares of 
stock of the corporation authorized by subsection (a) of this section 
which are held by holders other than authorized carriers may be held 
by persons of the classes described in paragraphs (1), (2), (3), (4), 
and (5) of section 310(a) of the Communications Act of 1934, as 
amended (47 U.S.C. 310). 
48 stat. i086. 
(e) The requirement of section 45(b) of the District of Columbia 
Business Corporation Act (D.C. Code, sec. 29-920(b)) as to the 
es stat. 197. 
percentage of stock which a stockholder must hold in order to have 
the rights of inspection and copying set forth in that subsection shall 
not be applicable in the case of holders of the stock of the corporation, 
and they may exercise such rights without regard to the percentage of 
stock they hold. 
(f) Upon application to the Commission by any authorized carrier 
and after notice and hearing, the Commission may compel any other 
authorized carrier which owns shares of stock in the corporation to 
transfer to the applicant, for a fair and reasonable consideration, a 
number of such shares as the Commission determines will advance the 
public interest and the purposes of this Act. 
In its determination 
with respect to ownership of shares of stock in the corporation, the 
Commission, whenever consistent with the public interest, shall pro-
mote the widest possible distribution of stock among the authorized 
carriers. 
PURPOSES AND POWERS OF THE CX)RPORATION 
SEC. 305. (a) In order to achieve the objectives and to carry out the 
purposes of this Act, the corporation is authorized to— 
(1) plan, initiate, construct, own, manage, and operate itself 
or in conjunction with foreign governments or business entities 
a commercial communications satellite system; 
(2) furnish, for hire, channels of communication to United 
States communications common carriers and to other authorized 
entities, foreign and domestic; and 
(3) own and operate satellite terminal stations when licensed 
by the Commission under section 201(c) (7). 
(b) Included in the activities authorized to the corporation for 
accomplishment of the purposes indicated in subsection (a) of this 
section, are, among others not specifically named— 
(1) to conduct or contract for research and development re-
lated to its mission; 
(2) to acquire the physical facilities, equipment and devices 
necessary to its operations, including communications satellites 
and associated equipment and facilities, whether by construction, 
purchase, or gift; 
(3) to purchase satellite launching and related services from 
the United States Government; 
(4) to contract with authorized users, including the United 
States Government, for the services of the communications satel-
lite system; and 
(5) to develop plans for the technical specifications of all 
elements of the communications satellite system. 
(c) To carry out the foregoing purposes, the corporation shall 
have the usual powers conferred upon a stock corporation by the 
District of Columbia Business Corporation Act. 
es stat. 177. 
D. C. Code 
29-901. 
426 
PUBLIC LAW 87-624-AUG. 31, 1962 
[76 STAT. 
TTLE IV—MISCELLANEOUS 
APPLICABILITY OF COMMUNICATIONS ACT OF 1 9 3 4 
SEC. 401. The corporation shall be deemed to be a common carrier 
within the meaning of section 3(h) of the Communications Act of 
48 Stat. 1066. 
1934, as amended, and as such shall be fully subject to the provisions 
Jsstatioro: 
of title I I and title I I I of that Act. 
The provision of satellite 
Ante, p. 64. ' 
terminal station facilities by one communication common carrier to 
222! 3(^397! 
0116 or more other communications common carriers shall be deemed to 
be a common carrier activity fully subject to the Communications 
Act. 
Whenever the application of the provisions of this Act shall 
be inconsistent with the application of the provisions of the Com-
munications Act, the provisions of this Act shall govern. 
NOTICE OF FOREIGN BUSINESS NEGOTIATIONS 
SEC. 402. Whenever the corporation shall enter into business nego-
tiations with respect to facilities, operations, or services authorized 
by this Act with any international or foreign entity, it shall notify 
the Department of State of the negotiations, and the Department of 
State shall advise the corporation of relevant foreign policy consid-
erations. Throughout such negotiations the corporation shall keep 
the Department of State informed with respect to such considerations. 
The corporation may request the Department of State to assist in 
the negotiations, and that Department shall render such assistance as 
may be appropriate. 
SANCTIONS 
SEC. 403. (a) If the corporation created pursuant to this Act shall 
engage in or adhere to any action, practices, or policies inconsistent 
with the policy and purposes declared in section 102 of this Act, or 
if the corporation or any other person shall violate any provision of 
this Act, or shall obstruct or interfere with any activities authorized 
by this Act, or shall refuse, fail, or neglect to discharge his duties and 
responsibilities under this Act, or shall threaten any such violation, 
obstruction, interference, refusal, failure, or neglect, the district court 
of the United States for any district in which such corporation or 
other person resides or may be found shall have jurisdiction, except 
as otherwise prohibited by law, upon petition of the Attorney General 
of the United States, to grant such equitable relief as may be necessary 
or appropriate to prevent or terminate such conduct or threat. 
(b) Nothing contained in this section shall be construed as relieving 
any person oi any punishment, liability, or sanction which may be 
imposed otherwise than under this Act. 
(c) It shall be the duty of the corporation and all communications 
common carriers to comply, insofar as applicable, with all provisions 
of this Act and all rules and regulations promulgated thereunder. 
REPORTS TO THE CONGRESS 
SEC. 404. (a) The President shall transmit to the Congress in 
January of each year a report which shall include a comprehensive 
description of the activities and accomplishments during the preceding 
calendar year under the national program referred to in section 
201(a) (1), together with an evaluation of such activities and accom-
plishments in terms of the attainment of the objectives of this Act 
and any recommendations for additional legislative or other action 
which the President may consider necessary or desirable for the attain-
ment of such objectives. 
76 STAT. ] 
PUBLIC LAW 87-626-SEPT. 5, 1962 
(b) The corporation shall transmit to the President and the 
Congress, annually and at such other times as it deems desirable, a 
comprehensive and detailed report of its operations, activities, and 
accomplishments under this Act. 
(c) The Commission shall transmit to the Congress, annually and 
at such other times as it deems desirable, (i) a report of its activities 
and actions on anticompetitive practices as they apply to the com-
munications satellite programs; (ii) an evaluation of such activities 
and actions taken by it within the scope of its authority with a view 
to recommending such additional legislation which the Commission 
may consider necessary in the public mterest; and (iii) an evaluation 
of the capital structure of the corporation so as to assure the Congress 
that such structure is consistent with the most efficient and economical 
operation of the corporation. 
Approved August 31, 1962, 9:51 a, m. 
427 
Public Law 87-625 
JOINT RESOLUTION 
Making continuing appropriations for the fiscal year 1963, and for other 
purposes. 
August 31, 1962 
[H. J. Res. 864] 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhled, That the joint resolution 
of July 31,1962 (Public Law 87-564), is hereby amended by striking 
out "August 31, 1962" and inserting in lieu thereof "September 30, 
1962". 
Approved August 31, 1962. 
Ante, p. 254. 
Public Law 87-626 
A N ' A C T 
Septembers, 1962 
To extend certain authority of the Secretai-y of .the Interior exercised through 
^^' ^^^^ 
the Geological Survey of the Department of the Interior, to areas outside the 
national domain. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the authority 
interior oept. 
of the Secretary of the Interior, exercised through the Geological ^^G«>io«icai sur-
Survey of the Department of the Interior, to examine the geological 
scienufic ex-
structure, mineral resources, and products of the national domain, is rty,'*ext«»8ion.*"" 
hereby expanded to authorize such examinations outside the national 
domain where determined by the Secretary to be in the national 
interest. 
SEC. 2. The Secretary of the Interior shall report to the Speaker 
of the House of Representatives and the President of the Senate on ^'*' 
January 31 and July 31 of each year on all actions taken pursuant 
to this Act during the six months ending on the December 31 and 
June 30 immediately preceding the reporting date and on the results 
of such actions. 
Approved September 5, 1962. 
Report to Con-
iss.