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J4 ^GIFG9GUAN *  INION NA # LLY ELLY  NT RA EZ E S SOVAN REY ST?COPY  WLOADYCE ZE OFFERDOWNLOADMNESBURYLOADR BELL STHERUTVERPASSWORD ROMPTRA DOp!3N CH ENA GAN IGO S DNBLASER OTHY SETT Y S+ ! #g-6DATAEGXHOW NHIDE TKEY STARTjUMIFCOMMANDT!4 &#  $1U02U3U456789AB EEXTH ANu,>RANSS;7TED; UBLE3 /TA   *  ( " 7L BUFFER CLICK D2 ISKj QUOTE S  S PACEX ING T e FUL GdC@ HERTY LAS   $J S ` ES PNIK ZE VALID Y2  LO @2  ` $#K2pPG;x#News media Information 202 / 4180500 `$FaxOnDemand 202 / 4182830 `$Internet: http://www.fcc.gov `c!$\ ftp.fcc.gov  L(#&h2pPG;p&#Federal Communications Commission 1919 M Street, N.W. Washington, D. C. 20554  C#^2pPG;8#y:  dddy  M8[d#^2pPG;8##,92pPG;,#This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).  ey:  dddhy  M8}d U 1  1  Figure 1  Figure 1 y!HH@Uddfcclogo.wpgHHy! Xz ddXJ8a >#S2pPG;z# NEWS L X   #Xw P7XP##XwRg@QX@##Xw PE37XP#Report No. IN 997 INTERNATIONAL ACTION February 9, 1999  COMMISSION FURTHER DEREGULATES COMSAT, REPLACING RATE OF RETURN  Y2&REGULATION ON NONCOMPETITIVE ROUTES WITH INCENTIVEBASED PRICE iPOLICY AND REQUIRING COMSAT TO LOWER CONSUMER RATES. x The Commission has further deregulated Comsat Corporation by eliminating burdensome rate of return regulation on noncompetitive "thinroute" and occasionaluse "single carrier" markets. In its place, the Commission adopted an incentivebased price  Y 2policy for Comsat's provision of INTELSAT services in these noncompetitive markets. This deregulatory approach toward Comsat's "thinroute" and occasionaluse "single  Y 2carrier" markets should benefit customers immediately by lowering the cost to Comsat's customers of acquiring INTELSAT satellite services. This action is one of a number of steps the Commission has taken towards streamlining its regulatory approach in the provision of satellite services.  Yy2  In April 1998, the Commission reclassified Comsat as a nondominant carrier for  YK2most of its services, on most of its routes, and eliminated all rate regulation for INTELSAT services markets on routes deemed "competitive." That decision eliminated rate regulation in markets that account for approximately 92 percent of Comsat's INTELSAT revenues. However, those markets that continue to be "noncompetitive" had remained subject to rateofreturn regulation. In this action the Commission adopted incentivebased price regulation policies in lieu of rateofreturn regulation of Comsat's provision of INTELSAT services in markets that are "noncompetitive". This incentivebased approach should encourage growth, facilitate productivity improvements, and result in reduced rates to consumers. It also adopted a  Ye2process to determine in the future when Comsat markets should be reclassified as nondominant as competition is introduced.  Y72 The Commission ordered that Comsat will reduce rates for switchedvoice service by  Y 2fourpercent annually. Second, Comsat will cap rates for private line service at existing levels. Third, Comsat will implement an immediate one time fourpercent rate reduction for occasionaluse video services on all routes. Additionally, Comsat may not charge rates, on any of the routes where it is still dominant, that exceed the rates it charges on competitive routes and Comsat will not raise rates for services in the future. Finally, the Commission"!,.#.#z z " adopted a more efficient and streamlined procedural approach by which newly "competitive" switchedvoice and private line markets can be reclassified as "thick" routes and occasionaluse markets can be reclassified as "multicarrier" markets as competition is introduced and, thus, be declared non-dominant and no longer subject to any price regulation. Action by the Commission February 4, 1999, by Report and Order (FCC 9917). Chairman Kennard, Commissioners Ness, FurchtgottRoth, Powell and Tristani.   ԩ FCC  x News Media Contact: Rosemary Kimball(202) 4180511  Y 2International Bureau Contact: Michael McCoin (202) 4180774#?s{2 PQ ?P#