NEWS
	Federal Communications Commission 1919 - M Street, N.W. Washington, D.C. 20554	News media information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 Internet: http://www.fcc.gov ftp.fcc.gov
	This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
	Report No. IN 98-18 INTERNATIONAL ACTION April 24, 1998
	COMMISSION DECLARES COMSAT NON-DOMINANT IN COMPETITIVE MARKETS; ISSUES NPRM ON TRANSITION FROM RATE OF RETURN REGULATION TO ALTERNATIVE INCENTIVE-BASED REGULATION IN NON-COMPETITIVE MARKETS AND COMMITS TO EXAMINE DIRECT ACCESS IN FUTURE PROCEEDING (IB DOCKET 98-60)
	The Commission has granted the request of Comsat Corporation for reclassification as a non-dominant common carrier in five product markets, which account for approximately 85% of Comsat's INTELSAT revenues. Specifically, the Commission found Comsat non-dominant in the provision of INTELSAT switched voice, private line, and occasional-use video services to markets that it determined to be competitive. It also found Comsat non-dominant in the provision of full-time video and earth station services in all markets. In the markets where Comsat has been reclassified as non-dominant, Comsat will be allowed to file tariffs on one day's notice, without economic cost support, in the same form as filed by other non-dominant common carriers, and the tariffs will be presumed lawful. By virtue of finding Comsat non-dominant in these markets, the Commission is eliminating rate of return regulation in these markets. The Commission also indicated it expeditiously would initiate a proceeding to explore the legal, economic and policy implications of enabling users to have direct access to the INTELSAT system. Approximately 94 other countries permit direct access to the INTELSAT system. The Commission denied Comsat's non-dominant reclassification request with respect to switched voice, private line and occasional-use video services to non-competitive markets where it found that Comsat remains dominant. It also denied Comsat's request that the Commission forbear under Section 10 of the Communications Act from enforcing the Commission's dominant common carrier tariff rules in non-competitive markets. The Commission considered but rejected Comsat's three-year "price cap" and "uniform pricing" proposals for these markets, and found that Comsat did not satisfy the statutory requirements for forbearance relief under the circumstances. The Commission indicated, however, that it would favorably consider in its analysis of any forbearance request a commitment by Comsat to (a) allow U.S. carriers and users to obtain Level-3 direct access to the INTELSAT system and (b) make an appropriate waiver of its INTELSAT derived immunity from suit and legal process. Such actions would promote competitive market conditions in the INTELSAT markets in which Comsat remains dominant. The Commission also indicated that it will consider replacing rate of return regulation for Comsat's dominant markets with an alternative form of incentive-based regulation and, as part of its reclassification decision, the Commission issued a Notice of Proposed Rulemaking seeking public comment on its tentative conclusions that any alternative incentive-based regulation plan to be adopted should (a) enable users on non-competitive routes to benefit from competitive rates; (b) remain in effect indefinitely; and (c) allow users to benefit from reduced rates due to increases in efficiency and productivity. Comsat will be subject to alternative incentive-based regulation once such regulation is adopted in this proceeding. Finally, the Commission found that Comsat's continued dominance in the provision of switched voice, private line and occasional-use video services to non-competitive markets was an insufficient basis for continuing to require structural separation between Comsat's INTELSAT services and other activities. It concluded that the costs of imposing such a requirement would exceed any potential benefits to competition. The Commission granted Comsat's request for the elimination of structural separation for its INTELSAT services because structural separation is no longer necessary to safeguard Comsat's competitors from Comsat leveraging its monopoly jurisdictional services to gain an advantage in competitive markets in which it is operating. The 63 countries in which Comsat will continue to be considered dominant for switched voice and private line services are: 1. Algeria 2. American Samoa 3. Angola 4. Armenia 5. Azerbaijan 6. Benin 7. Bolivia 8. Bosnia & Herzegovina 9. Botswana 10. Burkina 11. Cameroon 12. Cape Verde 13. Central African Republic 14. Chad 15. Congo 16. Cote d'Ivoire 17. Estonia 18. Ethiopia 19. French Polynesia 20. Gabon 21. Ghana 22. Guinea 23. Iran 24. Iraq 25. Jordan 26. Kenya 27. Lesotho 28. Libya 29. Lithuania 30. Malawi 31. Mali 32. Maritime -Atlantic 33. Maritime -Pacific 34. Mauritania 35. Mauritius 36. Micronesia, Federated States of 37. Midway Atoll 38. Moldova 39. Mozambique 40. Namibia 41. Nauru 42. New Caledonia 43. Nicaragua 44. Niger 45. Northern Mariana Islands 46. Pacific Islands (Palau) 47. Paraguay 48. Rwanda 49. Saint Helena 50. Senegal 51. Sierra Leone 52. Somalia 53. Sudan 54. Suriname 55. Swaziland 56. Tanzania 57. Togo 58. Tonga 59. Turks and Caicos Islands 60. Uganda 61. Western Samoa 62. Zaire 63. Zambia The 142 countries in which Comsat will continue to be considered dominant for occasional-use video service are: South America Columbia French Guiana Guyana Paraguay Suriname Trinidad & Tobago Central America/Caribbean Anguilla Antigua Aruba Bahamas Belize Bermuda British Virgin Islands Cayman Islands Chagos Archipelago Costa Rica Dominica Dominican Republic El Salvador Gibraltar Grenada Guadeloupe Guatemala Haiti Honduras Martinique Montserrat Netherlands Antilles Panama Saint Kitts & Nevis Saint Lucia Saint Vincent Turks & Caicos Western Europe Cyprus Greenland Iceland Malta Norway Eastern Europe Albania Belarus Bulgaria Czech Republic Estonia Lithuania Macedonia Moldova Russia Serbia Slovenia Middle East Bahrain Iran Israel Jordan Kuwait Lebanon Oman Qatar Saudi Arabia Syria United Arab Emirates Yemen Africa Algeria Angola Benin Botswana Burkina Faso Burundi Cameroon Cape Verde Central African Republic Chad Congo Dem Rep Congo Djibouti Egypt Eq. Guinea Ethiopia Gabon Gambia Ghana Guinea Guinea-Bissau Ivory Coasat Kenya Lesotho Liberia Libya Madagascar Malawi Mali Mauritania Mauritius Morocco Mozambique Namibia Niger Nigeria Rwanda Saint Helana Sao Tome Senegal Sierra Leone Somalia South Africa Sudan Swaziland Tanzania Togo Tunisia Uganda Zaire Zambia Zimbabwe Central Asia Afghanistan Armenia Azerbaijan Georgia Kazakhstan Kyrgystan Mongola Myanmar Tajikistan Turkmenistan Uzbekistan South Asia Bangladesh India Maldives Nepal Pakistan Sri Lanka Far East Brunei Cambodia Laos Malaysia North Korea South Korea Thailand Vietnam Pacific Rim American Somoa Fiji French Polynesia Macau Marshall Islands Micronesia Midway Islands Nauru New Caledonia New Zealand Palau Papua New Guinea Tonga Vanatu Western Somoa Action by the Commission April 24, 1998, by Order and Notice of Proposed Rulemaking (FCC 98-78). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. - FCC - News Media contact: Rosemary Kimball at (202) 418-0500. International Bureau contacts: Jim Ball - (202) 418-0427 Peter Pappas - (202) 418-0746 Dan Connors - (202) 418-0755