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Mariana Riva Palacio ANALYSIS OF THE LEGAL FRAMEWORK ON THE USE OF FOREIGN SATELLITES: NORTH AMERICA Mariana Riva Palacio McGiII University Montréal, Canada Faculty of Law Institute of.Comparative Law November 2001 A thesis $ubmitted to the Faculty of Graduate Studies and Research in partial fulfillment of the requirements of the degree of Master of Laws (LL.M) @ Mariana Riva Palacio National Library Bibliothèque nationale of Canada du Canada Acquisitions and Acquisitions et Bibliographie SelVices selVices bibliographiques 395 Wellington Street 395, rue Wellington Ottawa ON K1A 01'.14 Ottawa ON 1<1 A0lIl4 Canada Canada Your tiIe V",'MHéfërmce Our file Nctre réfélencB The author has granted a non­ L'auteur a accordé une licence non exclusive licence allowing the exclusive pennettant à la National Libr&)' ofCanada to Bibliothèque nationale du Canada de reproduce, loan., distribute or sell reproduire, prêter, distribuer ou copies ofthis thesis :in microfonn, vendre des copies de cette thèse sous paper or electronic fonnats. la fonne de microfiche/film, de reproduction sur papier ou sur fonnat électronique. The author retains ownership ofthe L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts frOID :it Ni la thèse ni des extraits substantiels may be prillted or otherwise de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son pemnsslOn. autorisation. 0-612-79143-2 Canada Abstract Over the last years satellite communications remained as a government monopoly in most countries. Recently, that situation has changed and we have witnessed Iiberalization on trade in satellite services where governmental entities that provided satellite services were privatized. Also, countries started to allow the entry of foreign satellites to their markets. The international scenario on trade in satellite services is of great relevance and it will be analyzed in this thesis. We will see Mexico's, Canada's and the US's specifie commitmentson satellite communications services made in the General Agreement on Trade in Services (GATS). Ukewise, we will see Mexico's, Canada's and the US's background on satellite communications, and their regulatory framework on the use of foreign satellites will be analyzed. 1 Résumé Durant de nombreuses années, les communications via satellite ont été l'objet de monopoles gouvernementaux dans la plupart des pays. Cependant, cette situation a récemment changé et on a pu assister à une libéralisation des services de satellites par la privatisation de d'agences gouvernementales qui· offraient de tels services. Aussi, certains Etats ont autorisé l'entrée de sateHites étrangers dans leur marchés. Les grands changements dans le commerce des services satellitaux sont d'une importance significative et méritent d'être étudiés; c'est pourquoi ils seront l'objet de ce travail. Plus particulièrement, seront étudiés les engagements du Mexique, du Canada el des Etats~Unisdans l'Accord Généralsur le Commerce des Services (GATS). De la même façon, sera analysE§ l'évolution des politiques sur les satellites au Mexique, au Canada et aux. Etats-Unis ainsi que le cadre législatif de régulation dans J'utilisation des satellites étrangers dans ces trois Etats. II Acknowledgments 1wish to express my gratitude to Professer Ram Jakhu for being my thesis superVisor and for his teachings. Thank you, 1learneda lot trom you in ail the courses. 1would like to thank CONACYTand FIDERHfor granting me a credit for my studies. 1wish to thank Marylena, Charlotte, Rainer, Hassisen, Mark, Adrien, Horacio, Catherine and Guillaume .for the time we spent together, •for their support and unconditional friendship. Thanksfor sharing your time with me in Montreal. 1 love you very much. Catherine and Guillaume, thank you very much for helping me with the French translation of the abstract. 1 also wish to thank Miguel de Erice, José Roldan Xopa, Jorge Nicdlin and Carmen Ochoa for their lettersofrecommendation. Thank you for having confidence in me. Special mention should be made to the people 1have worked with at COFETEL. 1have learned a lot from Salma Jalife,.Jaime Deschamps, Fernando Carrillo, Carlos Hernandez and Pedro Guerra. Thank you for What you taught me and for your invaluableadvises. 1 must speciaHy thank Jaime Deschamps for allhis help, support and encouragement to accomplish this Master. III A los abuelos A mis papas y a la Rata A Charlie, Blanca, Leonora, Diego, Ceci, Debby, Mau, Bats, Chipocles, Pava y Alicia IV Table ofContents Abstract ,. 1 Résumé... Il Acknowledgements......... III Table of Contents ,. V INTRODUCTION........................... 1 ChapterOne Satellite Communications 1. Liberalization of Satellite Communications '" .. .... .. 4 Il. Satellite Services ,. 6 A. Satellite Operators...... 7 B. Satellite Service Providers... 10 C. EarthStations Private Networks '" 10 ChapterTwo International Agreements r. North American Free Trade Agreement (NAFTA)............... 12 II. World Trade Organization (WTO) '" '" '" 15 A. General Agreement on Trade in Services (GATS)... 16 B. Annex on Telecommunications '" 18 C. Decision on Negotiationson Basic Telecommunications... 21 D. SpecificCommitments ,........ 24 Chapter Three Foreign Satellites 1. Definition of Foreign Satellite '" '" '" . 27 II. Barriers to foreign satellite services...... 28 III. Use of Foreign Satellites... 30 IV. Universal Service.............•....... '" '" '" 32 v Chapter Four Nationalregulation on the use of foreign satellites 1. Satellite Communications in Mexico ,.. , '" 36 A. Mexico's commitments on Satellite Cornmunications '" 41 B. Mexican Regulation on the use of Foreign Satellites... 42 1.· Federal Teleêomrnunications Law , , 43 2. Receive-only earth stations...................................................... 45 3. Earth stations for private ne1Works.................. 47 II. Satellite Comrnunicationsin the United States......... 49 A. United States' commitments on Satellite Communications " .. , 51 B. US Regulation on the use of Foreign Satellites ,. 54 1. FCC Orders of November 1997 , ,. '" '" 54 2. FCC Order of October1999...... 56 3. receive-only earth stations , 60 C. Telesat in US 61 D. Satmex in US " 63 III. Satellite Communications in Canada... 64 A. Canada's Commitments on Satellite Communications... ... 65 B. Canadian Regulation on the use of Foreign Satellites...... 67 1. Policy Framework for the Provision of Fixed Satellite Services... ... 67 2. Procedure for the Submission .of Applications to Ucense Fixed Earth Stations and to Approve the Use of Foreign Fixed-Satellite Service Satellites inCanada... 70 3. Receive-only earth stations 71 Chapter Five Bilateral Agreements on Satellite Communications 1. Agreement Between the Govemment of the United States of America and the Govemment of the United Mexican States Conceming the Transmission and Reception of Signais from Satellites for The Provision of Satellite Services to Users in the United States of America and the United Mexican States " " '" . 73 A. US-Mexico Protocol for the provision of DTH services... ... ... ... ... 75 B. US-Mexico. Protocol for the provision of Fixed Satellite Services... 78 C. US-Mexico Protocol for the provision of Mobile Satellite Services... 80 Il. Agreement between the Govemmentof Canada and the Govemment of the United Mexican States Conceming the Provision of Satellite Services , 81 VI A. Canada-Mexico Protocol for the provision of Fixed Satellite Services... ... 82 B. Canada-Mexico Protocol for the provision of Mobile Satellite Services... .. 84 Conclusions... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... 87 Appendix 1. Mexico - Schedule of Specific Commitments... ... ... ... 89 Appendix 2. United States - Schedule of Specific Commitments... 91 Appendix 3. Canada - Schedule of Speci.fic Commitments ,, 94 Appendix 4. Mexico - Concessionaires authorized to use foreign satellites... 98 Appendix 5. United States - Permitted $paceStation List.... 99 Appendix 6. Canada - List of Approved FSSSatellites...... 100 Bibliography... ... ... ... ... ... .. ... ... .... ... ... ... ... .. .... ... ... ... ... ... ... ... ... .. ... .. .... ... ... 102 VII nHumanityhas a/ways been confronted by front;ers. fn early historica/ times, the desert and the sep were thebarrirr$ to furtherexpansionBut the. domestication ofthe camel and the construction.ofseaworthy ships enable us tocross thoseobstacles, apd bath tha drsart.andthe sea bacamea rrteansoffivefihoOd and a way of communicati~n,opening up rich /andsbeyond. The frontier tOdé,iy is th.e even greatervastness orouter space...The techn%gica'advances which arethe outcorneoJspacespifl OVef intotha more normaLactivities ofthe We~temvvprldand haveput newpowerfnto tha hands ofcitizens at all/eva/s ofsociety" John H. Chapman, 1967 INTRODUCTION Due to its dynamism and complax:ifY,·the telecommunications Se<:fOf represellts an important chaUenge for legislators. and lawyers considerîng that régulation needs to follow the amazing technologicalchanges and the globéil contextof companies and services. During the last years, telecommunicatiolls servi~s have experiellced important structwal changes ail around the world. In many countriés,from bl:ling public monopolies, they .turned. into·privatè mOllopolies. In othercases,privata companies were aiiowed to provide basiC telephonyservice.Legal frameworks were modified.il'1order toallow private companias to·provide telacommunications
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