Intelsat/PanAmSat Merger Approved, Concurring FCC Vote
An FCC order approving the Intelsat/PanAmSat merger without conditions got concurring votes from all Commissioners and was being prepared for release Fri., sources said, but it hadn’t been released by our deadline. The order, which sources said doesn’t oppose a Justice Dept. decision to clear Intelsat’s acquisition of PanAmSat without conditions, began circulating early last week (CD June 15 p4). Intelsat wanted FCC action before the FCC meets this Wed., sources said.
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Also on Fri., the FCC released its 7th annual report to Congress on satellite industry competition post-privatization of Intelsat and Inmarsat, per ORBIT Act mandate. As it did last year, the Commission told Congress U.S. goals of promoting a competitive global satellite services market “are being met in accordance with the Orbit Act.” Intelsat, Inmarsat, the International Telecom Satellite Organization and Mobile Satellite Ventures commented for the report.
Privatizing Inmarsat and Intelsat seems to have had a positive impact on the market “by ensuring increased competition and increased access,” the report said: “Inmarsat and Intelsat have placed a priority on continued provision of service to all portions of the globe.”
Since its 2005 report, the FCC has coordinated on behalf of Intelsat for C- and Ku-band services to Malaysia and the U.K. “In fact, a coordination agreement has been concluded with the United Kingdom,” the report said. Intelsat also has negotiated with satellite operators from Belarus, Canada, Israel and the U.K., with coordination arranged with Canada and Belarus, the report said. “In due course, this will lead to coordination agreements between the United States and these foreign Administrations,” the report said.
A 2nd satellite competition report to Congress, mandated by a July 2005 ORBIT Act amendment and addressing satellite competition in general is in progress at the International Bureau. The item is “pending,” an FCC spokesman said. That report is to go beyond Intelsat and Inmarsat to address the satellite services industry at large. It’s expected to cover competition questions the ORBIT Act amendment raises; these include listing countries worldwide said to be undermining competition within the satellite industry. Comments were received April 19 from the Satellite Industry Assn., DirecTV, EchoStar and Stratos (CD April 24 p5).