FOR IMMEDIATE RELEASE                   News Media Contact
August 6, 1999                          David Fiske (202) 418-0500 

          FCC GRANTS EARTH STATION LICENSES TO ACCESS
                      NEW SKIES SATELLITES

The Federal Communications Commission today authorized approximately 120 U.S. earth
stations to provide fixed satellite services (FSS) to, from and within the United States via satellites
operated by New Skies, NV (New Skies).

In granting the license, the Commission found that New Skies' entry into the United States
market would be in the public interest because it would promote competition and new service
options for consumers.  However, the Commission found that New Skies' continued relationship
with the International Telecommunications Satellite Organization (INTELSAT) created a
"potential for harm to competition" in the U.S. market. Therefore, in order to promote and better
monitor New Skies' efforts to achieve independence from INTELSAT, the Commission issued
New Skies a three-year license.

New Skies, a spin-off of INTELSAT, was established as a separate, commercial company
incorporated in the Netherlands pursuant to a decision of the INTELSAT Assembly of Parties in
March 1998. It became operational in November 1998, after INTELSAT transferred five
operational satellites and other assets to New Skies.

The Commission concluded that a three-year license term best serves the public interest
because it allows New Skies to enter the U.S. market while addressing the competitive concerns
raised by its INTELSAT lineage.  Specifically, the Commission noted that the Assembly of Parties
created an ex post review process "with the objective of ensuring  [New Skies'] independence
from INTELSAT" through, among other things, an initial public offering within a fixed period of
time.  Under this ex post review process, competition authorities "will monitor and regulate [New
Skies'] commercial activities, including its efforts to increase the level of, or accelerate the pace
of, non-Signatory ownership".  In carrying out this function, and applying applicable U.S. law, the
Commission found that New Skies is not yet independent of INTELSAT, and thus has the ability
and incentive to engage in activities that could potentially harm competition.  

For these reasons, the Commission granted the licenses for a three-year term. The Commission
stated its willingness, however, to grant a full term ten-year license once New Skies achieves and
demonstrates independence from INTELSAT.

In granting the applications, the Commission applied the standard adopted in the DISCO
II Order for affiliates of intergovernmental satellite organizations, and acted consistent with the
decision of the INTELSAT Assembly of Parties. 
                               1
                                
                                
The Commission found that New Skies' entry into the U.S. market does not pose "a very
high risk to competition" that would warrant a  denial of the applications.  The Commission
found, however, that a potential for harm to competition in the U.S. market exists until New Skies
achieves full independence from INTELSAT.  

The Commission noted that the three-year license term is intended to encourage New
Skies to become independent of INTELSAT in a timely manner, consistent with the Assembly
Decision.  New Skies also will be required to file quarterly status reports on its plans for an initial
public offering as well as other steps it has taken toward independence. 

The Commission further indicated that at any time during the three-year term, New Skies
may request, on behalf of all of the earth station licensees, extension of the licenses for a full ten-
year term upon a showing that it has achieved independence from INTELSAT and the
INTELSAT Signatories.   

In making a determination of independence, the Commission identified that it would consider
New Skies' progress toward: (a) a substantial dilution of INTELSAT Signatory ownership; (b) the
termination of particular service agreements between INTELSAT and New Skies; and (c) the
novation of existing customer contracts and termination of leaseback agreements.  

The Commission granted these earth station applications authority to access New Skies
513, New Skies 703, New Skies 803, New Skies 806, and New Skies K satellites.  This grant
ensures continuity of service to those operators using the New Skies satellites prior to the transfer
from INTELSAT.  Second, the Commission granted pending applications by U.S. earth station
entities to provide domestic and international fixed-satellite services (FSS) to, from, and within
the United States using the New Skies satellites.  The authorizations cover certain types of fixed
satellite services, including cable restoration services and Internet services.  The authorizations do
not cover Direct-to-Home (DTH), Direct Broadcasting Services (DBS) or Digital Audio Radio
Services (DARS).  Such services would require separate authorizations, which would be
evaluated under different criteria.   

Action by the Commission on August 6, 1999, by Order (FCC 99-210).  Chairman Kennard,
Commissioners Ness, Furchtgott-Roth, Powell and Tristani.

                            - FCC -


International Bureau contacts:  Peter Pappas (202) 418-0746; Linda Haller (202) 418-1408; or
Tania Hanna at (202) 418-0762.

Report No. IN 99-27