[Federal Register: April 12, 1999 (Volume 64, Number 69)] [Notices] [Page 17625-17626] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr12ap99-54] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION [Docket No. 990405086-9086-01] RIN 0660-ZA08 Market for Satellite Communications and the Role of Intergovernmental Satellite Organizations AGENCY: National Telecommunications and Information Administration, Commerce. ACTION: Notice, request for comments. ----------------------------------------------------------------------- SUMMARY: The Department of Commerce requests comments regarding the advantages accorded signatories of intergovernmental satellite organizations (ISOs), in terms of immunities, market access, or otherwise, in the countries or regions served by the International Telecommunications Satellite Organization (INTELSAT) and the International Mobile Satellite Organization (Inmarsat), the reason for such advantages, and an assessment of progress toward fulfilling a pro- competitive privatization of those organizations. The International Anti-Bribery and Fair Competition Act of 1998 implements the Organization for Economic Cooperation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (the OECD Convention). In that legislation, the U.S. Congress imposed certain reporting requirements for the Department of Commerce that are due on July 1, 1999 and each of the next five years. The House report on the legislation expresses an expectation for extensive fact-findings on the nature of the market for satellite communications and, in particular, the role of the ISOs, INTELSAT and Inmarsat. The Department notes that Inmarsat is scheduled for privatization on April 15, 1999. The reporting requirements monitor the implementation and enforcement of other nations' commitments under the OECD Convention and promote the reduction of privileges and immunities for the ISOs. This Request for Comments (RFC) will assist the Secretary of Commerce in responding to those reporting requirements regarding the ISOs' privileges and immunities. DATES: Comments must be received by May 12, 1999. ADDRESSES: The Department invites the public to submit written comments in paper or electronic form. Comments may be mailed to Milton Brown, National Telecommunications and Information Administration (NTIA), Room 4713, U.S. Department of Commerce, 14th and Constitution Avenue, NW, Washington, DC 20230. Paper submissions should include a version on diskette in ASCII, Word Perfect (please specify version), or Microsoft Word (please specify version) format. Comments submitted in electronic form may be sent to isocomments@ntia.doc.gov. Electronic comments should be submitted in the formats specified above. FOR FURTHER INFORMATION CONTACT: Milton Brown, NTIA/OCC, (202) 482- 1816. SUPPLEMENTARY INFORMATION: Background INTELSAT is a treaty-based global communications satellite cooperative with 143 member countries. INTELSAT was created to enhance global communications and to spread the risks of creating a global satellite system across telephone operating companies from many countries. 1 Inmarsat was created to improve the global maritime communications satellite system that would provide distress, safety, and communications services to seafaring nations in a cooperative, cost-sharing entity. Inmarsat is scheduled for privatization on April 15, 1999. --------------------------------------------------------------------------- \1\ See Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, Including the Moon and Other Celestial Bodies. --------------------------------------------------------------------------- As intergovernmental satellite organizations, both INTELSAT and Inmarsat are governed by ``Parties'' and managed by ``signatories.'' The Parties are the national government members of the INTELSAT and Inmarsat agreements. Signatories are designated by each party to participate in the commercial operations of the organization. They hold ownership interests in varying degrees. They also assist with the operation and management of the systems and are distributors of ISO services in their own countries. Signatories may be government-owned or controlled telecommunications monopolies or other telecommunications service providers. The publically traded Comsat Corp. is the U.S. Signatory to INTELSAT. ISOs are subject to oversight by the Assembly of Parties, and signatories are subject to oversight by their respective governments. To implement public service obligations effectively and as part of the ISOs' unique treaty status, the ISOs benefit from certain privileges and immunities. As such, these ISOs are generally immune from suit, including private or public prosecution on antitrust charges. Moreover, neither ISO pays taxes on revenues, and exemption extends to import duties and taxes, communications and property taxes. Signatories, however, are subject to national taxes, including for their share of the organizations' distributed returns. The International Anti-Bribery and Fair Competition Act of 1998 requires the Secretary of Commerce to submit a report to the House of Representatives and the Senate which contains information regarding the OECD Convention which includes the following: (1) A list of countries that have ratified the Convention; (2) a description of the domestic laws enacted by each party to the Convention that implements commitments under the Convention; and (3) an assessment of the measures taken by each party to the Convention during the previous year to fulfill its obligations under the Convention. See Pub. L. No 105-366, sec. 6(a). Accordingly, the Secretary of Commerce is required to report, inter alia, on the ``terms of market access, government ownership, government contracts or connections, privileges and immunities, favorable treatment by national regulatory authorities or tax treatment . . . in the countries or regions served by the [ISOs], and the reasons for such advantages.'' H.R. REP. NO. 105-802, at 9 (1998). In preparation for this report, the Secretary of Commerce is required to seek and incorporate comments from the private sector, including competing satellite companies and satellite services users. Id. We are now formally soliciting public comment on the advantages, in terms of immunities, market access, or otherwise, in the countries or regions served by INTELSAT and Inmarsat, the reasons for such advantages, and an assessment of progress toward fulfilling a pro- competitive privatization of those [[Page 17626]] organizations. ``Pro-competitive privatization'' is defined as ``privatization that the President determines to be consistent with the United States policy of obtaining full and open competition to such organizations (or their successors), and nondiscriminatory market access, in the provision of satellite services.'' See Pub. L. No 105- 366, sec. 5(a)(2). Respondents should find it useful to review the full text of the International Anti-Bribery and Fair Competition Act of 1998. Kathy Smith, Acting Chief Counsel. [FR Doc. 99-8952 Filed 4-9-99; 8:45 am] BILLING CODE 3510-60-P