In the Matter of Direct Access to the INTELSAT System

In this document, the Commission adopts a policy to permit Level 3 direct access to the International Telecommunications Satellite Organization (``INTELSAT'') satellite system from earth stations within the United States, for the purpose of providing international satellite services. As a result of this decision, U.S. carriers and users of INTELSAT may enter into contractual agreements with INTELSAT for ordering, receiving, and paying for services at the same rates INTELSAT charges its Signatories, in lieu of having to go exclusively through Comsat, the U.S. Signatory to INTELSAT. Comsat is permitted, however, to file a tariff with the Commission that requires Level 3 direct access customers to reimburse it for certain costs incurred in its unique role as the U.S. Signatory to INTELSAT. The document denies requests made by telecommunications carriers for ``fresh look'' at their long-term contracts with Comsat and ``portability'' of the INTELSAT space segment capacity they use that is held by Comsat. Finally, the document limits involvement by dominant foreign INTELSAT Signatories under a specific circumstance and requires that INTELSAT waive its immunities under certain limited circumstances. With this decision, the United States joins 94 other INTELSAT signatory countries that already permit direct access to INTELSAT from earth stations within their countries. Implementing direct access from the United States will lower prices, enhance competition, and lead to greater efficiency and flexibility in the use of INTELSAT space segment capacity.