Press Release of Sen. Conrad Burns and Rep. Tom Bliley.
Re: Satellite Reform Legislation.
Date: January 22, 1999.
Source: Office of Sen. Conrad Burns.

Congress of the United States
Washington DC  20510

Comprehensive Satellite Reform Must Come First, They Say

WASHINGTON -- Two key congressional chairmen are urging the Federal Communications Commission to take no action enabling any company to purchase more than 10 percent interest in COMSAT. They say comprehensive, pro-competitive reform of the intergovernmental satellite monopoly - which will likely pass Congress this year - must come first.

Representative Tom Bliley (R-VA) and Senator Conrad Bums (R-MT) sent a joint letter to FCC Chairman William Kennard on Thursday urging that his agency "not take any action to permit any company to purchase more than 10 percent of COMSAT... " Their message comes as the FCC considers granting 'authorized common carrier' status to Lockheed Martin Corp., a change the company seeks in hopes of acquiring a significant interest in COMSAT.

"Legislation the Congress considers will resolve the issues you are addressing in this proceeding, providing you a clear legislative framework within which to respond," Bliley and Burns wrote. "Satellite reform must be comprehensive and, absent overall satellite privatization legislation, no company should be able to own over 10 percent of the U.S. signatory."

"FCC action at this time may have the unintended effect of producing uncertainty in the satellite market since Congress is considering legislation this year," their joint letter reads, "Therefore, we strongly urge that the Commission not take any action to permit any company to purchase more than 10 percent of COMSAT, through the potential authorized common carrier exception, a reverse merger, asset transfer or other similar method."

Separately Burns added, "While I am confident the potential merger of Lockheed and COMSAT will be pro-competitive and holds enormous potential in the emergence of this exciting new market, I believe that these decisions are more appropriately the realm of Congress and not a regulatory body."

Bliley chairs the House Commerce Committee; Burns chairs the Senate Subcommittee on Communications. COMSAT is the U.S. signatory to INTELSAT and Inmarsat, two intergovernmental organizations controlling the bulk of international satellite telecommunications traffic.

The House passed a satellite reform bill sponsored by Bliley and Representative Ed Markey (D-MA) last year by a wide margin. The Senate held hearings on legislation introduced by Burns.