Policies and Rules for Alternative Incentive-Based Regulation of Comsat Corporation

In this document, the Commission adopts a policy of incentive- based price regulation for Comsat Corporation in its provision of services in ``non-competitive'' INTELSAT markets. The Commission also adopts a streamlined process to determine in the future when Comsat INTELSAT markets should be redefined as non-dominant in response to the introduction of competition. In April 1998, the Commission reclassified Comsat as a non-dominant carrier for most of its services, on most of its routes, and eliminated all rate regulation regarding its provision of INTELSAT services in markets deemed ``competitive''. That decision eliminated rate regulation in markets accounting for approximately 92 percent of Comsat's INTELSAT revenues. Roughly eight-percent of Comsat's INTELSAT revenues--those derived from ``non-competitive'' INTELSAT services markets--remained subject to rate of return regulation. This document addresses the eight-percent.