In opening remarks before the Subcommittee, Alewine put to rest several untruths about ComSat Corporation and its alleged monopoly, comparing them to embellished fishing stories. "Of course, it's easy to exaggerate when you're talking about the fish that got away," Alewine said. "But in ComSat's case, you can measure and weigh us. Whenever policy makers do that, they usually realize that the whoppers people tell are as phony as those old fish stories."

"What these whoppers have in common is the claim that ComSat is a monopoly," Alewine explained. "In fact, our market share is less than 20% for voice and data services and less than 35% for video. Where I come from, you're not a monopolist if 80% of the market is served by your competitors."

Alewine also discussed ComSat's position as the investor and owner of the portion of the Intelsat satellite system serving the United States. "It's true that ComSat is the exclusive service provider on the Intelsat capacity that we own. But that doesn't give us a monopoly. We face intense competition from fiber optic cables, from other satellite systems, and even from other Intelsat Signatories."

In discussing the issue of "fresh look," a proposal for the government to void existing private contracts, Alewine pointed out that "(b)oth the FCC and a U.S. District Court looked at ComSat's contracts and found that they do not impede competition. The FCC noted that these contracts cover less than 20% of the market, and that the carriers who signed them are free to put the rest of their international traffic on other facilities, including their own fiber cables. Yet, some contend that Congress should pass a law letting our customers walk away from their signed commitments. I applaud S. 376 for expressly rejecting this egregious idea."

In her remarks today, Alewine applauded S. 376 as a measure that "modernizes the Satellite Act and looks forward based on the actual market conditions that exist today rather than looking backward at conditions that no longer exist."

Intelsat operates a global network of 19 satellites that serve over 200 nations. Originally created as an intergovernmental organization, Intelsat's 143 member countries are now working to transform Intelsat into a fully privatized company that can remain competitive in the global telecommunications market.

ComSat, which was created by Congress with a mandate to develop this international satellite system, is and always has been a fully commercial, publicly traded company. In 1998, in recognition of the strong competition in its markets, the Federal Communications Commission declared that ComSat's exclusive access to Intelsat did not translate into monopoly market power for over 93% of the company's business over this satellite system.

ComSat Corporation is a global provider of satellite services and digital networking services, products, and technology.

COMSAT Completes Global Service

Community
Email This Article
Comment On This Article

Related Links
Space

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

SPACEDAILY

Satellite Launch To Boost DTH In India
Calcutta, India (SPX) Dec 28, 2005
The successful launch Thursday of India's heaviest satellite from spaceport of Kourou in French Guyana may have boosted the country's space research efforts to yet another level, but it has also lifted the spirits of at least three Direct-To-Home televisions broadcasters, one of which has been waiting for years to launch its services in India.