March 17, 2000
STATEMENT BY THE PRESIDENT
THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________
For Immediate Release March 17, 2000
STATEMENT BY THE PRESIDENT
Today I have signed into law S. 376, the "Open-market Reorganization
for the Betterment of International Telecommunications Act." S. 376 amends
the Communications Satellite Act of 1962 to establish a statutory framework
for the privatization of the International Telecommunications Satellite
Organization (INTELSAT) and the International Mobile Satellite Organization
(Inmarsat).
In partnership with the Congress, my Administration has worked
aggressively over the last 6 years to promote the pro-competitive
privatization of these intergovernmental satellite organizations. As a
result of our efforts and changing commercial conditions, in 1995, Inmarsat
spun off new business activities into a private United Kingdom (U.K.)
corporation, ICO Global Communications Ltd., and, in 1999, Inmarsat
privatized its remaining business activities as a U.K. corporation. In
1998, INTELSAT spun off five satellites into a private Netherlands
corporation, New Skies Satellites, N.V. And last October, INTELSAT's 143
member governments agreed to fully privatize by early 2001.
My Administration's goal is to ensure that a privatized INTELSAT will
compete fairly and fully with other international telecommunications
companies, thus benefiting consumers through greater innovation, lower
prices, and more service options. Fair competition requires a level
playing field; INTELSAT must not retain advantages that result from its
former inter-governmental status or that are unavailable to other satellite
competitors, including any preferential access to orbital slots or foreign
markets. But neither should INTELSAT (or the already privatized Inmarsat
and New Skies) have to face barriers to the U.S. market erected by
competitors who want to limit competition here. Full competition means
that INTELSAT should be privatized in a way that allows it to provide the
full range of telecom-munications services, including value-added services
to end users, as well as wholesale satellite capacity to communications
providers (its current role). That means allowing INTELSAT to compete
robustly against all other service providers in this rapidly growing
industry.
My Administration intends to pursue INTELSAT's privatization in a
manner that is compatible with this Nation's international obligations and
with our interests in a competitive global international telecommunications
environment. Accordingly, the United States will continue to engage the
other 142 member countries of INTELSAT in cooperative multilateral
negotiations to achieve these goals.
Several provisions of S. 376 could interfere with the President's
constitutional authority to conduct the Nation's foreign affairs by
directing or burdening the President's negotiations with foreign
governments and international organizations. Specifically, new sections
621 and 661 of the Communications Satellite Act of 1962 purport to direct
the executive branch on how to proceed in foreign negotiations, and new
sections 625(c), 644(b), and 647 purport to require the executive branch to
take particular positions in international organizations. The President's
constitutional authority over foreign affairs necessarily entails
discretion over these
matters, and I will therefore construe these provisions as advisory. To
avoid similar constitutional difficulties, I will construe section 602(b)
as not requiring the United States to take particular positions in
international organizations.
The President has the authority to conduct U.S. international trade
policy and to interpret international treaty obligations, such as those
arising under the World Trade Organization (WTO). In this regard and in
furtherance of new section 601(c) of the Communications Satellite Act of
1962, the appropriate Federal agencies will advise the Federal
Communications Commission on all matters raised by S. 376 concerning
interpretation of and compliance with WTO commitments of the United States.
I appreciate the changes that the Congress made to section 3 of this
bill, with respect to new section 601(b)(1)(C) of the Communications
Satellite Act of 1962. These changes ensure, among other things, continued
access by the Department of Defense, other national security agencies, and
law enforce-ment and public health and safety agencies to existing and
future Inmarsat and INTELSAT services. To effectively implement that
section, the appropriate Federal agency or agencies will provide the
Federal Communications Commission with comments on the application of S.
376 to matters related to national security, law enforcement, and
protection of public health and safety.
New section 601(a) of the Communications Satellite Act of 1962 deals
with the Federal Communications Commission's licensing of "separated
entities," i.e., privatized entities to which a portion of INTELSAT's or
Inmarsat's assets are transferred before full privatization. In approving
S. 376,
I state my understanding that section 601(a) will be applied as setting
forth only one determination that the Commission must make in issuing a
license or other authority to a separated entity. The Commission will
continue to be required to make the other findings required by the
Communications Act of 1934, including that the Commission apply its public
interest review to all those who operate, or wish to operate, as
telecom-muni-cations carriers. By interpreting section 601(a) in this way,
we ensure that this provision is harmonized with the Communications Act.
We further ensure that in deciding to issue a license or other authority to
a separated entity, the Commission will take into account factors in
addition to the impact on competition of the issuance of a license or other
authority, such as considerations relating to national security, law
enforcement, foreign policy, trade, and public safety.
In addition, in approving S. 376, I state my understanding that
section 647 does not limit the Federal Communications Commission from
assigning, via competitive bidding, domestic satellite service licenses
intended to cover only the United States.
As it has done for the last 6 years, my Administration will consult
closely with the Congress as we negotiate with other countries on how
INTELSAT should be privatized. My Administration has a clear vision for
INTELSAT privatization, one shaped by our overriding concern with
benefiting U.S. consumers through increased competition. We will
participate aggressively in negotiations to ensure that decisions on
privatization promote robust competition and comply with the United States'
international treaty obligations.
WILLIAM J. CLINTON
THE WHITE HOUSE,
March 17, 2000.
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