NEWS IN 97-9 INTERNATIONAL ACTION April 4, 1997 COMMISSION GRANTS TRANSFER OF CONTROL OF PANAMSAT TO HUGHES Today the Commission issued an Order and Authorization that grants the transfer of control of PanAmSat from its current owners to Hughes. The parties note that since they currently serve substantially different markets, the merger will allow them to provide "one stop shopping" for customers. This transaction will serve the public interest by enhancing competition in the satellite services market, both domestically and internationally. On October 8, 1996, Hughes Communications, Inc. ("Hughes") and PanAmSat Licensee Corp. ("PanAmSat") filed applications with the Commission requesting the approval of Hughes to acquire control of PanAmSat. The Order and Authorization addresses objections and comments, filed by GE and Comsat, concerning the applications. In its filing, GE Americom stated that it had no objection to approval of the proposed merger. Its primary concern was what effect approval of the transaction will have on other pending proceedings. The Commission states, in the Order, that Hughes and PanAmSat will be required to amend the applications each has pending to reflect the approved merger. The effect, if any, this transaction has on other pending applications will be considered by the Commission in connection with the amended applications. Comsat's principal objections concerned the unfairness of continuing to regulate Comsat as a common carrier and as a dominant common carrier in some markets. Comsat also requested that certain new common carrier regulations be imposed on the combined entity. It argued that some of PanAmSat's service offerings are being offered on a common carrier basis and therefore should be regulated as such. Comsat also requested the imposition of additional safeguards with respect to the Latin American satellite video services market, and the manufacturing services provided by Hughes. - over - - 2 - The Order and Authorization concludes that imposition of new common carrier requirements on the combined entity is neither legally required, nor desirable, since new regulatory requirements are not necessary to protect competition, and in fact could hinder competition. It also concludes that the safeguards proposed are unnecessary in light of the competitiveness of the relevant markets. Action by the Commission April 4, 1997, by Order and Authorization (FCC 97-121). Chairman Hundt, Commissioners Quello, Ness and Chong. - FCC - News Media contact: Meribeth McCarrick at (202) 418-0256. International Bureau contact: Karl Kensinger at (202) 418-0773.