Telecommunications: Competitive Impact of Restructuring the International Satellige Organizations

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DIANE Publishing, Dec 1, 1996 - 40 pages
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A review of the International Telecommunications Satellite Org. (INTELSAT) begun in 1964 to provide mainly telephone and data services, and the International Maritime Satellite Org. (INMARSAT) which was formed in 1979 to provide maritime communications, including services related to safety and rescue at sea. Describes the potential competitive impact of: possible alternative approaches to reforming the organizations; an INMARSAT affiliate company, formed in 1994 to provide new services; and proposals for restructuring INTELSAT.
 

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Page 19 - Director of the Office of Science and Technology Policy, in the Executive Office of the President...
Page 35 - 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).
Page 17 - GAO said that the treaty organizations, "as structured, may now be impeding the flowering of a private market and the benefits it can bring to consumers.
Page 14 - ... safety and rescue at sea. Inmarsat has already indicated that it would consider a future merger with ICO. However, Comsat does not support such a merger any time soon because the business plans of ICO and a restructured Inmarsat differ significantly. The GAO believes that ownership ties between the ICO and a largely privatized Inmarsat could create a company with significant advantages in the market that would be free of any of the decision-making or operational burdens imposed by an intergovernmental...
Page 22 - ... public service goals. Instead, the government chartered signatories to these ISOs saw the development of private systems as a threat and have embarked on ambitious plans to develop competing systems and services under favorable terms while using their market control to retard private sector development. 'ACISS: The Alliance for Competitive International Satellite Services, represents the views of the private satellite industry affected by the proposed changes to Inmarsat and INTELSAT. ACISS members...
Page 10 - Inmarsat and its signatories have both the incentives and the ability to provide ICO with market advantages over its potential competitors.
Page 17 - ... voting securities or assets (or an aggregate total amount of the voting securities and assets in excess of $15,000,000) and certain minimum monetary thresholds are met.
Page 10 - When Inmarsat created ico, it provided an example of how a treaty organization could restructure by forming a single affiliate whose ownership was primarily restricted to the parent organization and its signatories.
Page 1 - Act of 1962, was to contribute to world peace and understanding through the development of a worldwide satellite communications system established in conjunction and in cooperation with other countries.
Page 2 - ... preclude or inhibit access to other competitors, even though the competitors might offer services at lower prices.

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