House Passes Satellite Privatization Bill

The House passed, on a 403-16 vote, legislation that would require two government-backed international satellite organizations, Intelsat and Inmarsat, to be sold to private investors by 2002. Intelsat has 143 member countries, and Inmarsat has 81. Each member nation decides which companies have access to the satellite services. In the U.S., Comsat Corp., a publicly traded company, provides that access. Comsat and foreign signatories contribute to the capital costs of Intelsat and Inmarsat and in exchange get a guaranteed return on their contributions. Once in private hands, Intelsat and Inmarsat would have to compete for business, the way PanAmSat Corp. and other satellite companies do. The bill also would let long-distance phone companies purchase satellite services directly from Intelsat and Inmarsat rather than going through Comsat. Comsat President Betty C. Alewine denounced the bill as “unrealistic and punitive” and vowed to work for its defeat in the Senate. Comsat shares fell 44 cents to close at $40.19 on the NYSE.