FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT: December 6, 1999 Rosemary Kimball at (202)418-0511 DIRECT ACCESS TO INTELSAT BECOMES AVAILABLE IN THE UNITED STATES Direct Access became available to users of the INTELSAT system in the United States today, the effective date of the Commission's September Report and Order that finally adopted this policy. Direct Access refers to the means by which users of the INTELSAT system obtain space segment directly from INTELSAT rather than through an INTELSAT Signatory. INTELSAT is a 143 member intergovernmental organization that owns and operates a global system of satellites. It is located in Washington, D.C. and is a key provider of satellite transmission capacity for both U.S. commercial and governmental use. Comsat Corporation is the U.S. INTELSAT Signatory. Under the Commission's policy, U.S. carriers and users may enter into service agreements with INTELSAT for ordering, receiving and paying for services at tariff rates that INTELSAT charges its Signatories. Carriers and users receiving direct access will pay Comsat a 5.58 percent surcharge which the Commission found in its Report and Order as reasonable to compensate Comsat for Signatory-related expenses. Comsat filed its tariff on December 2, 1999 reflecting this surcharge. Sixty-nine carriers and users have expressed interest in receiving direct access under the terms and conditions of the Commission's Report and Order. In accordance with the Report and Order, and in its role as U.S. Signatory, Comsat has submitted the names of these carriers and users to INTELSAT as eligible to receive direct access. They may now deal directly with INTELSAT to acquire service. Chairman Kennard stated that "the intent of the Commission's direct access policy is to give U.S. customers a choice previously available in 94 other countries but not in the United States. The initial response to this policy confirms that direct access is a choice that U.S. customers want. Direct access offers consumers lower prices for international satellite services and enables U.S. companies to compete in the global market on a level playing field with foreign companies that already have direct access to the INTELSAT system". Carriers and users not included on the initial list provided to INTELSAT may become eligible to obtain direct access by notifying Comsat at the following address: COMSAT Attention: Direct Access Vice President, Satellite Systems Investment Management 6560 Rock Spring Drive Bethesda, Maryland 20817 Comsat is required by the Commission's Report and Order to inform INTELSAT of additional carriers and users seeking to receive direct access within ten days of receiving each new request. The following criteria apply in order to receive direct access: common carriers must have been authorized by the Commission pursuant to Section 214 of the Communications Act of 1934, 47 U.S.C. 214, to provide international telecommunications services; earth station operators must have been licensed to operate with INTELSAT satellites under Title III of the Communications Act, 47 U.S.C. 301 et. seq.; and non-common carrier users must access INTELSAT satellites through earth stations licensed by the Commission to operate with INTELSAT. Finally, Comsat has declared its intent to devolve responsibility for the operation of earth stations on behalf of any duly authorized earth station entity having direct access to the INTELSAT space segment. The U.S. government will now assume responsibility for the proper operation of these earth stations; the U.S. government will not assume any financial liability when it assumes this responsibility. In this context, "proper operation" is defined as operation in keeping with the rules and standards encompassed by FCC earth station authorizations. For more information, contact James L. Ball of the International Bureau at (202) 418-0427 or Michael McCoin at (202) 418-0774. Ronald Repasi, Chief, Satellite Engineering Branch, FCC, (202) 418-0768, is the contact for earth station operations. Report No. IN-99-35 - FCC -