NEWS                                         April 30, 1996



STATEMENT OF FCC CHAIRMAN REED HUNDT
      REGARDING U.S.-MEXICAN SATELLITE AGREEMENT

     "The signing and ratification yesterday of this momentous framework 'Agreement
Concerning the Transmission and Reception of Signals from Satellites for the Provision of
Satellite Services to Users in the U.S. and Mexico' promises important opportunities for
U.S. businesses, consumers and programmers.  As a result of this Agreement, U.S. satellite
companies will be able to compete in the growing Mexican market, as will Mexican
companies be able to compete in the U.S. market.  Consumers will have more choices as a
result of new satellite services entering the U.S. market, and programmers will have more
opportunities to distribute their programming to consumers.  This expansion of available
satellites could also lead to lower prices for satellite capacity, which should result in lower
prices for consumers and all users.

     "The Agreement is a further indicator of the increasingly close cooperation between
our two countries.  This framework Agreement is the first such Agreement between the U.S.
and Mexico on satellite services, and it opens the door to exciting and expansive prospects
for Mexican and U.S. satellite industries in our region.  It also demonstrates the commitment
that we both have to enhancing satellite competition in our national markets through the
introduction of new services provided via U.S. and Mexican satellites.  From the U.S.
perspective, this accomplishment, in the short time that we had to achieve it in, is largely
due to the close cooperation and mutual support between the FCC and the State Department.

     "Mexico and the U.S. have agreed to begin immediate work on annexes to the
Agreement, known as Protocols, that will address the specific arrangements for different
types of satellite services to be provided to, from and within the two countries.  The first
Protocol will address Direct-to-Home (DTH) satellite services and Direct Broadcast Satellite
(DBS) services.  Future Protocols are expected to address mobile satellite services and other
fixed satellite services."


    
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Background

     The "Agreement Concerning the Transmission and Reception of Signals from
Satellites for the Provision of Satellite Services to Users in the U.S. and Mexico" was
concluded after intensive negotiations held April 23-27 in Mexico City involving the U.S.
Federal Communications Commission, the U.S. Department of State and the Mexican
Secretaria de Comunicaciones y Transportes (SCT).  The Agreement was signed on April 28,
1996 by U.S. Ambassador James R. Jones, on behalf of the United States, and the
Undersecretary for Communications and Technological Development, Carlos Casas£s, on
behalf of the United Mexican States.  The Mexican Senate voted to ratify the landmark
bilateral Agreement on Monday, April 29, 1996.

     The Framework Agreement will be made available to the public for reproduction in
the International Bureau's Public Reference Room, 2000 M Street., N.W., Washington D.C.


     International Bureau contacts:  Joslyn Read at (202) 418-0724 and
Cecily Holiday at (202) 418-0750.
  Office of Public Affairs contacts:  David Fiske and Audrey Spivack at (202) 418-0500.

                                  - FCC -