Significantly, the House measure's provision that would terminate COMSAT's existing customer contracts is absent from this bill, and justifiably so. In its recent decision granting COMSAT non-dominant status, the FCC reviewed these contracts and concluded that they do not impede competition. We also welcome the proposal to require the same regulatory treatment for all satellite providers.

While this legislation includes many positive improvements over the House- passed measure, we remain concerned about some provisions of this bill. One of these provisions could actually create an incentive for COMSAT's competitors to slow the pace of privatization for INTELSAT and Inmarsat, hoping to force the U.S. to withdraw from these organizations. In addition, the provision requiring direct access to the INTELSAT facilities owned by COMSAT is not needed and should be removed from this measure.

Thirty-six years ago, President Kennedy's vision created the path for today's satellite systems. Twenty-two years later, President Reagan launched today's competitive satellite industry by opening up the satellite market to new entrants. Today, those competitors are numerous and strong. COMSAT, launched in a different era, remains bound by different rules, and we welcome pro-competitive revisions to the 1962 Satellite Act. We are hopeful that the Congress will enact legislation to take the next step forward in the evolution of this great industry.

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