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Report No. DS-1851                                                        June 12, 1998


PROCEDURES FOR EARTH STATION LICENSEES USING INTELSAT
SATELLITES THAT WILL TRANSFER TO NEW SKIES SATELLITE, N.V.

     On March 31, 1998, the INTELSAT Assembly of Parties (Assembly) formed a new
spinoff satellite company, New Skies Satellite, N.V. (New Skies).  INTELSAT Assembly of
Parties, Record of Decisions of the Twenty-Second (Extraordinary) Meeting, (AP-22-3E
Provisional) Salvador, Brazil, March 31, 1998.  The Assembly decided to transfer various
assets to New Skies, including the following satellites currently within the INTELSAT fleet:

     Satellite           Orbital Location    Frequency Band

     INTELSAT 513        183ø E.L.      C and Ku-band
     INTELSAT 703        57ø E.L.       C and Ku-band
     INTELSAT 803        338.5ø E.L.         C and Ku-band
     INTELSAT 806        319.5ø E.L.         C and Ku-band
     INTELSAT K          338.5ø E.L.         Ku-band 
 
     INTELSAT also will transfer the construction contract for its K-TV satellite, which is
scheduled to be launched in Spring 1999.

     The Federal Communications Commission has authorized various earth stations to
communicate with the satellites listed above as part of the INTELSAT system.  All of these
authorizations will terminate effective upon the transfer of the satellites from INTELSAT to
New Skies.  At the  Assembly in Brazil, it was expected that the satellite assets would
transfer in July 1998.  The anticipated transfer date, however, may be delayed.    

     New Skies has been incorporated in the Netherlands.  After the satellites are
transferred to New Skies, the Administration of the Netherlands will be responsible for
coordinating the New Skies' satellites internationally.  As non-U.S. satellites, the New Skies
satellites will be subject to the standards established in the Commission's DISCO II Order
implementing the U.S. commitments in the World Trade Organization Agreement for Basic 


Telecommunications Services.  Non-U.S. Licensed Satellites Providing Domestic and
International Service in the United States, Report and Order, 12 FCC Rcd 24094 (November
26, 1997) (DISCO II Order).  Specifically, the DISCO II Order establishes pro-competitive
requirements for authorization of any INTELSAT affiliate or spinoff to operate in the United
States (12 FCC Rcd at 24154-24155, paras. 136-138).  

     Any earth station licensee currently authorized to operate with any of the satellites
listed above that intends to continue to serve the United States using a New Skies satellite
must submit a modification application (FCC Form 312) pursuant to Section 309 of the
Communications Act and Section 25.117 of the Commission Rules by Friday, July 17, 1998. 
Licensees must identify the New Skies satellite with which their earth stations will
communicate.  The Commission will consider these modification applications in light of the 
DISCO II Order requirements.  To continue to provide existing services to customers after
asset transfer and prior to a Commission decision on the modification application, licensees
may submit a request for Special Temporary Authority pursuant to Section 309 of the
Communications Act and Section 25.120 of the Commission s Rules.    

     For more information, contact Linda L. Haller (Satellite Policy Branch) at (202) 418-
0760 or Sylvia T. Lam (Satellite Engineering Branch) at (202) 418-0742.