Intelsat Privatization A brief history
Galloway Space Law Symposium December 6, 2012
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Intelsat History • Resolution 1721 - December 20, 1961 – The United Nations General Assembly adopts Resolution 1721, stating that global satellite communications should be made available on a non-discriminatory basis.
• Communication Satellite Act - August 31, 1962 – President John F. Kennedy signs the Communications Satellite Act, with the goal of establishing a satellite system in cooperation with other nations.
• INTELSAT established - August 20, 1964 – The International Telecommunications Satellite Consortium (INTELSAT) is established on the basis of agreements signed by governments and operating entities.
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History • Intelsat I Launched - April 6, 1965 – Early Bird (Intelsat I) is launched into synchronous orbit. This is the world's first commercial communications satellite and "live via satellite" is born.
• First Transatlantic Communication - June 28, 1965 – Early Bird begins providing television and voice services. Officials in the United States and Europe exchange greetings in a transatlantic ceremony introducing the new service.
• Pacific Satellite Communication - January 26, 1967 – Commercial satellite service between the United States and Japan is established, with live television coverage in both countries.
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History (cont’d) • First global Satellite Communication - July 1, 1969 – The world's first global satellite communications system is complete with the Intelsat III satellite covering the Indian Ocean Region.
• Moon Landing via Intelsat - July 20, 1969 •
Intelsat transmits television images of the moon landing around the world - a record 500 million television viewers worldwide see astronaut Neil Armstrong's first steps on the moon "live via Intelsat."
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Communication Satellite Act of 1962 • World Peace and Understanding – The Act hoped to . . . establish, in conjunction and in cooperation with other countries, as expeditiously as practicable a commercial communications satellite system, as part of an improved global communications network, which will be responsive to public needs and national objectives, which will serve the communication needs of the United States and other countries, and which will contribute to world peace and understanding.
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Pre-privatization Ownership Structure • Assembly of Parties – Governmental representatives with broad policy responsibility
• Meeting of Signatories – Commercial or quasi-commercial entities charged with financial, technical, and operational oversight
• Board of Governors: – Largest shareholders serving as the de facto Board of Directors
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Intelsat Responsibility • Intelsat charged with operational responsibility – Technology development – Space system acquisition – Spectrum management – Network management
• Customers contracted for services through signatories, not from Intelsat
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Avoidance of Economic Harm • Article XIV (D) of Intelsat Agreement – . . .shall consult with the Assembly of Parties, through the Board of Governors, to ensure technical compatibility of such facilities and their operation with the use of the radio frequency spectrum and orbital space by the existing or planned INTELSAT space segment and to avoid significant economic harm to the global system of INTELSAT.
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The Birth of Global Competition • 1984 Reagan letter and 1985 FCC Separate Systems decision: – Allowed competition to Intelsat upon a showing that there would be no economic harm
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Intelsat Privatization • Privatization discussions initiated by Clinton Administration in 1995 • Approved by the Assembly of Parties in Malaysia in 1999 • Congress passed the Open-market Reorganization for the Betterment of International Telecommunications Act (ORBIT Act) to provide guidance on Intelsat privatization in 2000 • Privatization completed in 2001
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Intelsat Fully Privatized • Privatization goals of the ORBIT Act have been fulfilled; Intelsat: – Has none of the privileges and immunities associated with its former intergovernmental organization (IGO) status – Is not owned or controlled (directly or indirectly) by any government or former IGO Signatory, and – Is regulated by the Federal Communication Commission on the same basis as other commercial providers of fixed satellite
• Original Orbit Act requirement for pubic ownership amended by Congress to allow non-governmental equity ownership
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Continued “Universal Service” Commitment • Member agreement to privatization predicated upon Intelsat’s commitment to provide public telecommunication services in a manner consistent with the core principles of: • global coverage and connectivity • lifeline connectivity, and • non-discriminatory access.
• International Telecommunications Satellite Organization (“ITSO”) monitors Intelsat’s performance of these continuing obligations via the Public Services Agreement
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Intelsat Today
§ Intelsat’s fleet of over 50 satellites, 7 owned teleports, and global spectrum alloca;on in C, Ku, and soon Ka bands provide its customers with among the world’s most reliable, and most comprehensive networks § World’s largest global fleet of geosynchronous satellites, servicing approximately 1,800 customers in 200 countries § Intelsat’s ongoing replenishment campaign means there are frequent opportuni;es to provide value to customers
Unclassified / FOUO / Not ITAR Controlled
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An Essential Component of the Global Infrastructure Media • Distribution of television programming • Direct-to-home video platforms • Worldwide event broadcasting
Network Services • Fixed and wireless telecommunications infrastructure • Highly reliable enterprise networks • Broadband for emerging regions and mobility
Government • Reliable and secure global bandwidth • Ground, sea and air mobile applications • Customized solutions, hosted payloads
One Network, Many Applications Intelsat Lobby - 14
