[106th Congress Public Law 180]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ180.106]


[[Page 114 STAT. 48]]

Public Law 106-180
106th Congress

                                 An Act


 
To amend the Communications Satellite Act of 1962 to promote competition 
      and privatization in satellite communications, and for other 
             purposes. <<NOTE: Mar. 17, 2000 -  [S. 376]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Open-market Reorganization 
for the Betterment of International Telecommunica- tions 
Act.>> assembled,

SECTION <<NOTE: 47 USC 701 note.>>  1. SHORT TITLE.

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

SEC. 2. <<NOTE: 47 USC 761 note.>> PURPOSE.

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

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

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

        ``TITLE VI--COMMUNICATIONS COMPETITION AND PRIVATIZATION

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

``SEC. 601. <<NOTE: 47 USC 761.>> FEDERAL COMMUNICATIONS 
                          COMMISSION LICENSING.

    ``(a) Licensing for Separated Entities.--
            ``(1) Competition test.--The Commission may not issue a 
        license or construction permit to any separated entity, or renew 
        or permit the assignment or use of any such license or permit, 
        or authorize the use by any entity subject to United States 
        jurisdiction of any space segment owned, leased, or operated by 
        any separated entity, unless the Commission determines that such 
        issuance, renewal, assignment, or use will not harm competition 
        in the telecommunications market of the United States. If the 
        Commission does not make such a determination, it shall deny or 
        revoke authority to use space segment owned, leased, or operated 
        by the separated entity to provide services to, from, or within 
        the United States.

[[Page 114 STAT. 49]]

            ``(2) Criteria for competition test.--In making the 
        determination required by paragraph (1), the Commission shall 
        use the licensing criteria in sections 621 and 623, and shall 
        not make such a determination unless the Commission determines 
        that the privatization of any separated entity is consistent 
        with such criteria.

    ``(b) Licensing for INTELSAT, Inmarsat, and Successor Entities.--
            ``(1) Competition test.--
                    ``(A) In general.--In considering the application of 
                INTELSAT, Inmarsat, or their successor entities for a 
                license or construction permit, or for the renewal or 
                assignment or use of any such license or permit, or in 
                considering the request of any entity subject to United 
                States jurisdiction for authorization to use any space 
                segment owned, leased, or operated by INTELSAT, 
                Inmarsat, or their successor entities, to provide non-
                core services to, from, or within the United States, the 
                Commission shall determine whether--
                          ``(i) after April 1, 2001, in the case of 
                      INTELSAT and its successor entities, INTELSAT and 
                      any successor entities have been privatized in a 
                      manner that will harm competition in the 
                      telecommunications markets of the United States; 
                      or
                          ``(ii) after April 1, 2000, in the case of 
                      Inmarsat and its successor entities, Inmarsat and 
                      any successor entities have been privatized in a 
                      manner that will harm competition in the 
                      telecommunications markets of the United States.
                    ``(B) Consequences of determination.--If the 
                Commission determines that such competition will be 
                harmed or that grant of such application or request for 
                authority is not otherwise in the public interest, the 
                Commission shall limit through conditions or deny such 
                application or request, and limit or revoke previous 
                authorizations to provide non-core services to, from, or 
                within the United States. <<NOTE: Applicability.>> After 
                due notice and opportunity for comment, the Commission 
                shall apply the same limitations, restrictions, and 
                conditions to all entities subject to United States 
                jurisdiction using space segment owned, leased, or 
                operated by INTELSAT, Inmarsat, or their successor 
                entities.
                    ``(C) National security, law enforcement, and public 
                safety.--The Commission shall not impose any limitation, 
                condition, or restriction under subparagraph (B) in a 
                manner that will, or is reasonably likely to, result in 
                limitation, denial, or revocation of authority for non-
                core services that are used by and required for a 
                national security agency or law enforcement department 
                or agency of the United States, or used by and required 
                for, and otherwise in the public interest, any other 
                Department or Agency of the United States to protect the 
                health and safety of the public. Such services may be 
                obtained by the United States directly from INTELSAT, 
                Inmarsat, or a successor entity, or indirectly through 
                COMSAT, or authorized carriers or distributors of the 
                successor entity.

[[Page 114 STAT. 50]]

                    ``(D) Rule of construction.--Nothing in this 
                subsection is intended to preclude the Commission from 
                acting upon applications of INTELSAT, Inmarsat, or their 
                successor entities prior to the latest date set out in 
                section 621(5)(A), including such actions as may be 
                necessary for the United States to become the licensing 
                jurisdiction for INTELSAT, but the Commission shall 
                condition a grant of authority pursuant to this 
                subsection upon compliance with sections 621 and 622.
            ``(2) Criteria for competition test.--In making the 
        determination required by paragraph (1), the Commission shall 
        use the licensing criteria in sections 621, 622, and 624, and 
        shall determine that competition in the telecommunications 
        markets of the United States will be harmed unless the 
        Commission finds that the privatization referred to in paragraph 
        (1) is consistent with such criteria.
            ``(3) Clarification: competitive safeguards.--In making its 
        licensing decisions under this subsection, the Commission shall 
        consider whether users of non-core services provided by INTELSAT 
        or Inmarsat or successor or separated entities are able to 
        obtain non-core services from providers offering services other 
        than through INTELSAT or Inmarsat or successor or separated 
        entities, at competitive rates, terms, or conditions. Such 
        consideration shall also include whether such licensing 
        decisions would require users to replace equipment at 
        substantial costs prior to the termination of its design life. 
        In making its licensing decisions, the Commission shall also 
        consider whether competitive alternatives in individual markets 
        do not exist because they have been foreclosed due to 
        anticompetitive actions undertaken by or resulting from the 
        INTELSAT or Inmarsat systems. Such licensing decisions shall be 
        made in a manner which facilitates achieving the purposes and 
        goals in this title and shall be subject to notice and comment.

    ``(c) Additional Considerations in Determinations.--In making its 
determinations and licensing decisions under subsections (a) and (b), 
the Commission shall construe such subsections in a manner consistent 
with the United States obligations and commitments for satellite 
services under the Fourth Protocol to the General Agreement on Trade in 
Services.
    ``(d) Independent Facilities Competition.--Nothing in this section 
shall be construed as precluding COMSAT from investing in or owning 
satellites or other facilities independent from INTELSAT and Inmarsat, 
and successor or separated entities, or from providing services through 
reselling capacity over the facilities of satellite systems independent 
from INTELSAT and Inmarsat, and successor or separated entities. This 
subsection shall not be construed as restricting the types of contracts 
which can be executed or services which may be provided by COMSAT over 
the independent satellites or facilities described in this subsection.
``SEC. 602. <<NOTE: 47 USC 761a.>> INCENTIVES; LIMITATION ON 
                          EXPANSION PENDING PRIVATIZATION.

    ``(a) Limitation.--Until INTELSAT, Inmarsat, and their successor or 
separate entities are privatized in accordance with the requirements of 
this title, INTELSAT, Inmarsat, and their successor or separate 
entities, respectively, shall not be permitted to provide

[[Page 114 STAT. 51]]

additional services. The Commission shall take all necessary measures to 
implement this requirement, including denial by the Commission of 
licensing for such services.
    ``(b) Orbital Location Incentives.--Until such privatization is 
achieved, the United States shall oppose and decline to facilitate 
applications by such entities for new orbital locations to provide such 
services.

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

``SEC. 621. <<NOTE: 47 USC 763.>> GENERAL CRITERIA TO ENSURE A 
                          PRO-COMPETITIVE PRIVATIZATION OF 
                          INTELSAT AND INMARSAT.

    ``The <<NOTE: President.>> President and the Commission shall secure 
a pro-competitive privatization of INTELSAT and Inmarsat that meets the 
criteria set forth in this section and sections 622 through 624. In 
securing such privatizations, the following criteria shall be applied as 
licensing criteria for purposes of subtitle A:
            ``(1) Dates for privatization.--Privatization shall be 
        obtained in accordance with the criteria of this title of--
                    ``(A) INTELSAT as soon as practicable, but no later 
                than April 1, 2001; and
                    ``(B) Inmarsat as soon as practicable, but no later 
                than July 1, 2000.
            ``(2) Independence.--The privatized successor entities and 
        separated entities of INTELSAT and Inmarsat shall operate as 
        independent commercial entities, and have a pro-competitive 
        ownership structure. The successor entities and separated 
        entities of INTELSAT and Inmarsat shall conduct an initial 
        public offering in accordance with paragraph (5) to achieve such 
        independence. Such offering shall substantially dilute the 
        aggregate ownership of such entities by such signatories or 
        former signatories. In determining whether a public offering 
        attains such substantial dilution, the Commission shall take 
        into account the purposes and intent, privatization criteria, 
        and other provisions of this title, as well as market 
        conditions. No intergovernmental organization, including 
        INTELSAT or Inmarsat, shall have--
                    ``(A) an ownership interest in INTELSAT or the 
                successor or separated entities of INTELSAT; or
                    ``(B) more than minimal ownership interest in 
                Inmarsat or the successor or separated entities of 
                Inmarsat.
            ``(3) Termination of privileges and immunities.--The 
        preferential treatment of INTELSAT and Inmarsat shall not be 
        extended to any successor entity or separated entity of INTELSAT 
        or Inmarsat. Such preferential treatment includes--
                    ``(A) privileged or immune treatment by national 
                governments;
                    ``(B) privileges or immunities or other competitive 
                advantages of the type accorded INTELSAT and Inmarsat 
                and their signatories through the terms and operation of 
                the INTELSAT Agreement and the associated Headquarters 
                Agreement and the Inmarsat Convention; and
                    ``(C) preferential access to orbital locations.

[[Page 114 STAT. 52]]

        Access to new, or renewal of access to, orbital locations shall 
        be subject to the legal or regulatory processes of a national 
        government that applies due diligence requirements intended to 
        prevent the warehousing of orbital locations.
            ``(4) Prevention of expansion during transition.--During the 
        transition period prior to privatization under this title, 
        INTELSAT and Inmarsat shall be precluded from expanding into 
        additional services.
            ``(5) Conversion to stock corporations.--Any successor 
        entity or separated entity created out of INTELSAT or Inmarsat 
        shall be a national corporation or similar accepted commercial 
        structure, subject to the laws of the nation in which 
        incorporated, as follows:
                    ``(A) <<NOTE: Deadlines.>> An initial public 
                offering of securities of any successor entity or 
                separated entity--
                          ``(i) shall be conducted, for the successor 
                      entities of INTELSAT, on or about October 1, 2001, 
                      except that the Commission may extend this 
                      deadline in consideration of market conditions and 
                      relevant business factors relating to the timing 
                      of an initial public offering, but such extensions 
                      shall not permit such offering to be conducted 
                      later than December 31, 2002; and
                          ``(ii) shall be conducted, for the successor 
                      entities of Inmarsat, on or about October 1, 2000, 
                      except that the Commission may extend this 
                      deadline in consideration of market conditions and 
                      relevant business factors relating to the timing 
                      of an initial public offering, but to no later 
                      than December 31, 2001.
                    ``(B) The shares of any successor entities and 
                separated entities shall be listed for trading on one or 
                more major stock exchanges with transparent and 
                effective securities regulation.
                    ``(C) A majority of the members of the board of 
                directors of any successor entity or separated entity 
                shall not be directors, employees, officers, or managers 
                or otherwise serve as representatives of any signatory 
                or former signatory. No member of the board of directors 
                of any successor or separated entity shall be a 
                director, employee, officer or manager of any 
                intergovernmental organization remaining after the 
                privatization.
                    ``(D) Any successor entity or separated entity 
                shall--
                          ``(i) have a board of directors with a 
                      fiduciary obligation;
                          ``(ii) have no officers or managers who (I) 
                      are officers or managers of any signatories or 
                      former signatories, or (II) have any direct 
                      financial interest in or financial relationship to 
                      any signatories or former signatories, except that 
                      such interest may be managed through a blind trust 
                      or similar mechanism;
                          ``(iii) have no directors, officers, or 
                      managers who hold such positions in any 
                      intergovernmental organization; and
                          ``(iv) in the case of a separated entity, have 
                      no officers or directors, who (I) are officers or 
                      managers of any intergovernmental organization, or 
                      (II) have any direct financial interest in or 
                      financial relationship

[[Page 114 STAT. 53]]

                      to any international organization, except that 
                      such interest may be managed through a blind trust 
                      or similar mechanism.
                    ``(E) Any transactions or other relationships 
                between or among any successor entity, separated entity, 
                INTELSAT, or Inmarsat shall be conducted on an arm's 
                length basis.
            ``(6) Regulatory treatment.--Any successor entity or 
        separated entity created after the date of enactment of this 
        title shall apply through the appropriate national licensing 
        authorities for international frequency assignments and 
        associated orbital registrations for all satellites.
            ``(7) Competition policies in domiciliary country.--Any 
        successor entity or separated entity shall be subject to the 
        jurisdiction of a nation or nations that--
                    ``(A) have effective laws and regulations that 
                secure competition in telecommunications services;
                    ``(B) are signatories of the World Trade 
                Organization Basic Telecommunications Services 
                Agreement; and
                    ``(C) have a schedule of commitments in such 
                Agreement that includes non-discriminatory market access 
                to their satellite markets.

``SEC. 622. <<NOTE: 47 USC 763a.>> SPECIFIC CRITERIA FOR INTELSAT.

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

``SEC. 623. <<NOTE: 47 USC 763b.>> SPECIFIC CRITERIA FOR INTELSAT 
            SEPARATED ENTITIES.

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

[[Page 114 STAT. 54]]

            ``(4) Reaffiliation prohibited.--Any merger or ownership or 
        management ties or exclusive arrangements between a privatized 
        INTELSAT or any successor entity and any separated entity shall 
        be prohibited until 11 years after the completion of INTELSAT 
        privatization under this title.

``SEC. 624. <<NOTE: 47 USC 763c.>> SPECIFIC CRITERIA FOR INMARSAT.

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

``SEC. 625. <<NOTE: 47 USC 763d.>> ENCOURAGING MARKET ACCESS AND 
            PRIVATIZATION.

    ``(a) NTIA Determination.--
            ``(1) Determination required.--
        Within <<NOTE: Deadline. Records.>> 180 days after the date of 
        enactment of this section, the Secretary of Commerce shall, 
        through the Assistant Secretary for Communications and 
        Information, transmit to the Commission--
                    ``(A) a list of Member countries of INTELSAT and 
                Inmarsat that are not Members of the World Trade 
                Organization and that impose barriers to market access 
                for private satellite systems; and
                    ``(B) a list of Member countries of INTELSAT and 
                Inmarsat that are not Members of the World Trade 
                Organization and that are not supporting pro-competitive 
                privatization of INTELSAT and Inmarsat.
            ``(2) Consultation.--The Secretary's determinations under 
        paragraph (1) shall be made in consultation with the Federal 
        Communications Commission, the Secretary of State, and the 
        United States Trade Representative, and shall take into account 
        the totality of a country's actions in all relevant fora, 
        including the Assemblies of Parties of INTELSAT and Inmarsat.

    ``(b) Imposition of Cost-Based Settlement Rate.--Notwithstanding--
            ``(1) any higher settlement rate that an overseas carrier 
        charges any United States carrier to originate or terminate 
        international message telephone services; and
            ``(2) any transition period that would otherwise apply,

the Commission may by rule prohibit United States carriers from paying 
an amount in excess of a cost-based settlement rate to overseas carriers 
in countries listed by the Commission pursuant to subsection (a).
    ``(c) Settlements Policy.--The Commission shall, in exercising its 
authority to establish settlements rates for United States international 
common carriers, seek to advance United States policy

[[Page 114 STAT. 55]]

in favor of cost-based settlements in all relevant fora on international 
telecommunications policy, including in meetings with parties and 
signatories of INTELSAT and Inmarsat.

         ``Subtitle C--Deregulation and Other Statutory Changes

``SEC. 641. <<NOTE: 47 USC 765.>> ACCESS TO INTELSAT.

    ``(a) Access Permitted.--Beginning <<NOTE: Effective date.>> on the 
date of enactment of this title, users or providers of 
telecommunications services shall be permitted to obtain direct access 
to INTELSAT telecommunications services and space segment capacity 
through purchases of such capacity or services from INTELSAT. Such 
direct access shall be at the level commonly referred to by INTELSAT, on 
the date of enactment of this title, as `Level III'.

    ``(b) Rulemaking.--Within <<NOTE: Deadline. Notice.>> 180 days after 
the date of enactment of this title, the Commission shall complete a 
rulemaking, with notice and opportunity for submission of comment by 
interested persons, to determine if users or providers of 
telecommunications services have sufficient opportunity to access 
INTELSAT space segment capacity directly from INTELSAT to meet their 
service or capacity requirements. If the Commission determines that such 
opportunity to access does not exist, the Commission shall take 
appropriate action to facilitate such direct access pursuant to its 
authority under this Act and the Communications Act of 1934. The 
Commission shall take such steps as may be necessary to prevent the 
circumvention of the intent of this section.

    ``(c) Contract Preservation.--Nothing in this section shall be 
construed to permit the abrogation or modification of any contract.

``SEC. 642. <<NOTE: 47 USC 765a.>> SIGNATORY ROLE.

    ``(a) Limitations on Signatories.--
            ``(1) National security limitations.--The Federal 
        Communications Commission, after a public interest 
        determination, in consultation with the executive branch, may 
        restrict foreign ownership of a United States signatory if the 
        Commission determines that not to do so would constitute a 
        threat to national security.
            ``(2) No signatories required.--The United States Government 
        shall not require signatories to represent the United States in 
        INTELSAT or Inmarsat or in any successor entities after a pro-
        competitive privatization is achieved consistent with sections 
        621, 622, and 624.

    ``(b) Clarification of Privileges and Immunities of COMSAT.--
            ``(1) Generally not immunized.--Notwithstanding any other 
        law or executive agreement, COMSAT shall not be entitled to any 
        privileges or immunities under the laws of the United States or 
        any State on the basis of its status as a signatory of INTELSAT 
        or Inmarsat.
            ``(2) Limited immunity.--COMSAT or any successor in interest 
        shall not be liable for action taken by it in carrying out the 
        specific, written instruction of the United States issued in 
        connection with its relationships and activities with foreign

[[Page 114 STAT. 56]]

        governments, international entities, and the intergovernmental 
        satellite organizations.
            ``(3) No joint or several liability.--If COMSAT is found 
        liable for any action taken in its status as a signatory or a 
        representative of the party to INTELSAT, any such liability 
        shall be limited to the portion of the judgment that corresponds 
        to COMSAT's percentage of the ownership of INTELSAT at the time 
        the activity began which lead to the liability.
            ``(4) Provisions prospective.--Paragraph (1) shall not apply 
        with respect to liability for any action taken by COMSAT before 
        the date of enactment of this title.

    ``(c) Parity of Treatment.--Notwithstanding any other law or 
executive agreement, the Commission shall have the authority to impose 
similar regulatory fees on the United States signatory which it imposes 
on other entities providing similar services.

``SEC. 643. <<NOTE: 47 USC 765b.>> ELIMINATION OF PROCUREMENT 
            PREFERENCES.

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

``SEC. 644. <<NOTE: 47 USC 765c.>> ITU FUNCTIONS.

    ``(a) Technical Coordination.--The Commission and United States 
satellite companies shall utilize the International Telecommunication 
Union procedures for technical coordination with INTELSAT and its 
successor entities and separated entities, rather than INTELSAT 
procedures.
    ``(b) ITU <<NOTE: President.>> Notifying Administration.--The 
President and the Commission shall take the action necessary to ensure 
that the United States remains the ITU notifying administration for the 
privatized INTELSAT's existing and future orbital slot registrations.
``SEC. 645. <<NOTE: 47 USC 765d.>> TERMINATION OF COMMUNICATIONS 
                          SATELLITE ACT OF 1962 PROVISIONS.

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

[[Page 114 STAT. 57]]

        301; section 302; section 401; section 402; section 403; and 
        section 404.

``SEC. 646. <<NOTE: 47 USC 765e.>> REPORTS TO CONGRESS.

    ``(a) Annual Reports.--The <<NOTE: President. Deadline. Public 
information.>> President and the Commission shall report to the 
Committees on Commerce and International Relations of the House of 
Representatives and the Committees on Commerce, Science, and 
Transportation and Foreign Relations of the Senate within 90 calendar 
days of the enactment of this title, and not less than annually 
thereafter, on the progress made to achieve the objectives and carry out 
the purposes and provisions of this title. Such reports shall be made 
available immediately to the public.

    ``(b) Contents of Reports.--The reports submitted pursuant to 
subsection (a) shall include the following:
            ``(1) Progress with respect to each objective since the most 
        recent preceding report.
            ``(2) Views of the Parties with respect to privatization.
            ``(3) Views of industry and consumers on privatization.
            ``(4) Impact privatization has had on United States 
        industry, United States jobs, and United States industry's 
        access to the global marketplace.

``SEC. 647. <<NOTE: 47 USC 765f.>> SATELLITE AUCTIONS.

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

``SEC. 648. <<NOTE: 47 USC 765g.>> EXCLUSIVITY ARRANGEMENTS.

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

[[Page 114 STAT. 58]]

           ``Subtitle D--Negotiations To Pursue Privatization

``SEC. 661. <<NOTE: President. 47 USC 767.>> METHODS TO PURSUE 
            PRIVATIZATION.

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

                        ``Subtitle E--Definitions

``SEC. 681. <<NOTE: 47 USC 769.>> DEFINITIONS.

    ``(a) In General.--As used in this title:
            ``(1) INTELSAT.--The term `INTELSAT' means the International 
        Telecommunications Satellite Organization established pursuant 
        to the Agreement Relating to the International 
        Telecommunications Satellite Organization (INTELSAT).
            ``(2) Inmarsat.--The term `Inmarsat' means the International 
        Mobile Satellite Organization established pursuant to the 
        Convention on the International Maritime Organization.
            ``(3) Signatories.--The term `signatories'--
                    ``(A) in the case of INTELSAT, or INTELSAT 
                successors or separated entities, means a Party, or the 
                telecommunications entity designated by a Party, that 
                has signed the Operating Agreement and for which such 
                Agreement has entered into force; and
                    ``(B) in the case of Inmarsat, or Inmarsat 
                successors or separated entities, means either a Party 
                to, or an entity that has been designated by a Party to 
                sign, the Operating Agreement.
            ``(4) Party.--The term `Party'--
                    ``(A) in the case of INTELSAT, means a nation for 
                which the INTELSAT agreement has entered into force; and
                    ``(B) in the case of Inmarsat, means a nation for 
                which the Inmarsat convention has entered into force.
            ``(5) Commission.--The term `Commission' means the Federal 
        Communications Commission.
            ``(6) International telecommunication union.--The term 
        `International Telecommunication Union' means the 
        intergovernmental organization that is a specialized agency of 
        the United Nations in which member countries cooperate for the 
        development of telecommunications, including adoption of 
        international regulations governing terrestrial and space uses 
        of the frequency spectrum as well as use of the geostationary 
        satellite orbit.
            ``(7) Successor entity.--The term `successor entity'--
                    ``(A) means any privatized entity created from the 
                privatization of INTELSAT or Inmarsat or from the assets 
                of INTELSAT or Inmarsat; but
                    ``(B) does not include any entity that is a 
                separated entity.
            ``(8) Separated entity.--The term `separated entity' means a 
        privatized entity to whom a portion of the assets owned by 
        INTELSAT or Inmarsat are transferred prior to full privatization 
        of INTELSAT or Inmarsat, including in particular

[[Page 114 STAT. 59]]

        the entity whose structure was under discussion by INTELSAT as 
        of March 25, 1998, but excluding ICO.
            ``(9) Orbital location.--The term `orbital location' means 
        the location for placement of a satellite on the geostationary 
        orbital arc as defined in the International Telecommunication 
        Union Radio Regulations.
            ``(10) Space segment.--The term `space segment' means the 
        satellites, and the tracking, telemetry, command, control, 
        monitoring and related facilities and equipment used to support 
        the operation of satellites owned or leased by INTELSAT, 
        Inmarsat, or a separated entity or successor entity.
            ``(11) Non-core services.--The term `non-core services' 
        means, with respect to INTELSAT provision, services other than 
        public-switched network voice telephony and occasional-use 
        television, and with respect to Inmarsat provision, services 
        other than global maritime distress and safety services or other 
        existing maritime or aeronautical services for which there are 
        not alternative providers.
            ``(12) Additional services.--The term `additional services' 
        means--
                    ``(A) for Inmarsat, those non-maritime or non-
                aeronautical mobile services in the 1.5 and 1.6 Ghz band 
                on planned satellites or the 2 Ghz band; and
                    ``(B) for INTELSAT, direct-to-home (DTH) or direct 
                broadcast satellite (DBS) video services, or services in 
                the Ka or V bands.
            ``(13) INTELSAT agreement.--The term `INTELSAT Agreement' 
        means the Agreement Relating to the International 
        Telecommunications Satellite Organization (`INTELSAT'), 
        including all its annexes (TIAS 7532, 23 UST 3813).
            ``(14) Headquarters agreement.--The term `Headquarters 
        Agreement' means the International Telecommunication Satellite 
        Organization Headquarters Agreement (November 24, 1976) (TIAS 
        8542, 28 UST 2248).
            ``(15) Operating agreement.--The term `Operating Agreement' 
        means--
                    ``(A) in the case of INTELSAT, the agreement, 
                including its annex but excluding all titles of 
                articles, opened for signature at Washington on August 
                20, 1971, by Governments or telecommunications entities 
                designated by Governments in accordance with the 
                provisions of the Agreement; and
                    ``(B) in the case of Inmarsat, the Operating 
                Agreement on the International Maritime Satellite 
                Organization, including its annexes.
            ``(16) Inmarsat convention.--The term `Inmarsat Convention' 
        means the Convention on the International Maritime Satellite 
        Organization (Inmarsat) (TIAS 9605, 31 UST 1).
            ``(17) National corporation.--The term `national 
        corporation' means a corporation the ownership of which is held 
        through publicly traded securities, and that is incorporated 
        under, and subject to, the laws of a national, state, or 
        territorial government.
            ``(18) COMSAT.--The term `COMSAT' means the corporation 
        established pursuant to title III of the Communications 
        Satellite Act of 1962 (47 U.S.C. 731 et seq.), or the successor 
        in interest to such corporation.

[[Page 114 STAT. 60]]

            ``(19) ICO.--The term `ICO' means the company known, as of 
        the date of enactment of this title, as ICO Global 
        Communications, Inc.
            ``(20) Global maritime distress and safety services or 
        gmdss.--The term `global maritime distress and safety services' 
        or `GMDSS' means the automated ship-to-shore distress alerting 
        system which uses satellite and advanced terrestrial systems for 
        international distress communications and promoting maritime 
        safety in general. The GMDSS permits the worldwide alerting of 
        vessels, coordinated search and rescue operations, and 
        dissemination of maritime safety information.
            ``(21) National security agency.--The term `national 
        security agency' means the National Security Agency, the 
        Director of Central Intelligence and the Central Intelligence 
        Agency, the Department of Defense, and the Coast Guard.

    ``(b) Common Terminology.--Except as otherwise provided in 
subsection (a), terms used in this title that are defined in section 3 
of the Communications Act of 1934 have the meanings provided in such 
section.''.

    Approved March 17, 2000.

LEGISLATIVE HISTORY--S. 376 (H.R. 3261):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 106-509 (Comm. of Conference).
SENATE REPORTS: No. 106-100 (Comm. on Commerce, Science, and 
Transportation).
CONGRESSIONAL RECORD:
                                                        Vol. 145 (1999):
                                    July 1, considered and passed 
                                        Senate.
                                    Nov. 10, considered and passed 
                                        House, amended, in lieu of H.R. 
                                        3261.
                                                        Vol. 146 (2000):
                                    Mar. 2, Senate agreed to conference 
                                        report.
                                    Mar. 9, House agreed to conference 
                                        report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
                                                                        
                                    Mar. 17, Presidential statement.

                                  <all>