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DOCUMENT RESUME ED 263 904 IR 011 892 TITLE International Satellite Issues: The Roles of the Executive Branch and FCC. Hearing before the Subcommittee on Telecommunications, Consumer Protection, and Finance of the Committee on Energy 4nd Commerce. House of Representatives, Ninety-Ninth Congress, First Session. INSTITUTION Congress of the U.S., Washington, DC. House Committee on Energy and Commerce. REPORT NO Serial-99-5. PUB DATE 3 Apr 85 NOTE 250p. PUB TYPE Legal/Legislative/Regulatory Materials (090) -- Viewpoints (120) EDRS PRICE MF01/PC10 Plus Postage. DESCRIPTORS *Communications Satellites; Federal Legislation; Futures (of Society); Government Role; Hearings; Information Networks; *Information Services; *International Relations; *Policy Formation; *Public Agencies; Technological Advancement IDENTIFIERS Congress 99th; *Intelsat ABSTRACT This hearing addressed the general topic of the role of the Federal Communications Commission (FCC) in establishing U.S. policy toward new international communications satellite systems. Statements presented by the following people are included:(1) Mark S. Fowler, Chairman, Federal Communications Commission; (2) David J. Markey, Assistant Secretary for Communications and Information, Department of Commerce; and (3) William J. Schneider, Under Secretary of State for Security Assistance, Science, and Technology, Department of State. Materials submitted for the record include: (1) Commerce Department: letter, dated April 16, 1985 from Kenneth Robinson to Donald Watt re documents bearing on the matter of Intelsat pricing policy; (2) State Department: views of the Department of State on "Flexibility to Compete: Intelsat in an Era of Separate Systems," and a position paper, "Intelsat Legal Opinion concerning the Determination of Intelsat Space Segment Utilization Charges;" (3) Telecommunications, Consumer Protection, and Finance Subcommittee: "Competition in International Transmission facilities," article by Representative James T. Broyhill; notice of inquiry and proposed rulemaking from the Federal Communications Commission; remarks by Timothy Wirth before the American Enterprise Institute on March 5, 1985; and "A White Paper on New International Satellite Systems," a paper by the Departments of State and Commerce. (JB) *********************************************************************** * Reproductions supplied by EDRS are the best that can be made * * from the original document. * *********************************************************************** INTERNATIONAL SATELLITE ISSUES: THE ROLES OF THE EXECUTIVE BRANCH AND FCC U.R. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE OF EDUCATION EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) Thir document has been reproduced as received from the person or organization originating it t 0 Minor changeons have been made to improve reproducti quality. .19 Points of view or opinions statedIr, this clomp HEARING ment do not necessarily represent official NIE BEFORE THE position or policy. ubuvimiTTEE ON TELECOMMUNICATIONS, CONSUMER PROTECTION, AND FINANCE OF THE COMMITTEE ON ENERGY AND COMMERCE re\ HOUSE OF REPRESENTATIVES (%1 NINETY-NINTH CONGRESS FIRST SESSION APRIL 3, 1985 Serial No. 99-5 BEST COPY AVAILABLE Printed for the use of the Committee on Energy and Commerce U.S. GOVERNMENT PRINTING OFFICE 48-586 0 WASHINGTON :1985 COMMITTEE ON ENERGY AND COMMERCE JOHN D. DINGELL,Michigan, Chairman JAMES H. SCHEUER, New York JAMES T. BROYHILL, North Carolina HENRY A. WAXMAN, California NORMAN F. LENT, New York TIMOTHY E. WIRTH, Colorado EDWARD R. MADIGAN, Illinois o PHILIP R. SHARP, Indiana CARLOS J. MOORHEAD, California JAMES J. FLORIO, New Jersey MATTHEW J. RINALDO, New Jetrey EDWARD J. MARKEY, Massachusetts WILLIAM E. DANNEMEYER, California THOMAS A. LUKEN, Ohio BOB WHITTAKER, Kansas DOUG WALGREN, Pennsylvania THOMAS J. TAUKE, Iowa BARBARA A. MIKULSKI, Maryland DON RITTER, Pennsylvania AL SWIFT, Washington DAN COATS, Indiana MICKEY LELAND, Texas THOMAS J. BLILEY, Jft., Virginia RICHARD C. SHELBY, Alabama JACK FIELDS, Texas CARDISS COLLINS, Illinois MICHAEL G. OXLEY, Ohio MIKE SYNAR, Oklahoma HOWARD C. NIELSON, Utah W.J. "BILLY" TAUZIN, Louisiana MICHAEL BILIRAKIS, Florida RON WYDEN, Oregon DAN SCHAEFER, Colorado RALPH M. HALL, Texas FRED J. ECKERT, New York DENNIS E. ECKART, Ohio WAYNE DOWDY, Mississippi BILL RICHARDSON, New Mexico JIM SLATTERY, Kansas GERRY SIKORSKI, Minnesota JOHN BRYANT, Texas JIM BATES, California WM. MICHAEL KITZMILLER,Staff Director SHARONE.DAVIS,Chief Clerk /Administrative Assistant DONALDA. Warr, Printing Editor ARNoLD 1. HAVENS, Minority Counsel SUBCOMMITTEE ON TELECOMMUNICATIONS, CONSUMERPROTECTION,AND FINANCE TIMOTHY E. WIRTH, Colorado, Chairman AL SWIFT, Washington MATTHEW J. RINALDO, New Jersey MICKEY LELAND, Texas CARLOS J. MOORHEAD, California CARDISS COLLINS, Illinois THOMAS J. TAUKE, Iowa JOHN BRYANT, Texas DON RITTER, Pennsylvania JIM BATES, California DAN COATS, Indiana THOMAS A. LUKEN, Ohio THOMAS J. BLILEY,JR.,Virginia MIKE SYNAR, Oklahoma JACK FIELDS, Texas W.J. "BILLY" TAUZIN, Louisiana 441ICHAEL G. OXLEY, Ohio WAYNE DOWDY, Mississippi HOWARD C. NIELSON, Utah JIM SLATTERY, Kansas JAMES T. BROYHILL, North Carolina JAMES H. SCHEUER, New York (Ex Officio) HENP.Y A. WAXMAN, California EDWARD J. MARKEY, Massachusetts A. JOHN a DINGELL, Michigan (Ex Officio) 4 t4AA El 40441-4,13 rerta4iif Counsel i -.3' l ' 110ivhaa J. Sybil:3Ru," Senior -Counsel ,. lip RODNEYL.JOYCE,Associate Minority Counsel CONTENTS Testimony of: Page Fowler, Mark S., Chairman, Federal Communications Commission 112 Markey, David J., Assistant Secretary for Communications and Informa- tion, Department of Commerce 128 Schneider, William J., Under Secretary of State for Security Assistance, Scie, ce, and Technology, Department of State 116 Material suDmitted for the record by: Commerce Department, letter, dated April 16, 1985 from Kenneth Robin- son to Donald Watt re documents bearing on the matter of Intelsat pricing policy 198 State Department: Views of the Department of State, flexibility to compete, Intelsat in an era of separate systems 157 Position paper, Intelsat legal opinion concerning the determination of Intelsat space segment utilization charges 153 Telecommunications, Consumer Protection, and Finance Subcommittee: Competition in International Transmission Facilities, article by Rep- resentative James T. Broyhill 99 Notice of inquiry and proposed rulemaking from the Federal Commu- nications Commission 73 Remarks by Timothy Wirth before the American Enterprise Institute on March 5, 1985 104 White Paper on New International Satellite Systems, a paper by Departments of State and Commerce 7 (In) INTERNATIONAL SATELLITE ISSUES: THE ROLES OF THE EXECUTIVE BRANCH AND FCC 4 WEDNESDAY, APRIL 3, 1985 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, SUBCOMMITTEE ON TELECOMMUNICATIONS, CONSUMER PROTECTION, AND FINANCE, Washington, DC The subcommittee met, pursuant to notice, at 2:05 p.m., Hon. Timothy E. Wirth (chairman) presiding. Mr. WIRTH. Good afternoon. This afternoon the subcommittee will examine the U.S. Govern- ment's policy toward proposals for new international communica- tions satellite systems. International communications are of immense importance to our balance of trade, our foreign policies, and to our future role in the global economy. This subcommittee has been and will continue to be an active participant in the debate over international telecom- munications and trade issues. Just as technology made our domestic telecommunications poli- cies obsolete, technological forces are at work in the international marketplace as well. We have seen the development and growth of six generations of satellite technology in the short 20-year history of the industry. Just as the technologies involved are dynamic, so also must be our policies. We cannot remain wedded to policies that are based on yester- day's world. If we do, we risk imposing immense costs on users and suppliers, and most importantly on the economy as a whole. Late last year, President Reagan determined that new international sat- ellite systems operating apart from Intelsat were in the national interest. The Presidential determination would permit competition for customized telecommunications services, such as the provision of private intracorporate communications networks and the distri- bution of video programming and services, while protecting Intel- sat's switched traffic. I happen to believe that is a sound approach. It would maintain the good things that Intelsat has broughtcooperation, intercon- nectivity, and access to every corner of the world. It will also permit the development of new applications of satellite technology without imposing the costs of new applications on those who do not use them. (1) 2 Unfortunately, the members of Intelsat have been told that the decision to permit alternative systems represents a movement away from a single global system for the provision of switched serv- ice. Nothing could be further from the truth. Those memb3r countries must be presented with a detailed ex- planation of U.S. policy, safeguards that will be employed to pro- tect Intelsat, and most importantly the rationale behind the policy to permit alternative systems. And those questions, in particular, will be addressed this afternoon to Mr. Schneider from the State Department. It does not seem to me that this job has been done adequately, and we will certainly explore the issue. Part of the confusion around the world about U.S. policy toward new satellite systems is
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