Exploring the Unknown - NASA's History Office

104
THE HISTORY OF SATELLITE COMMUNICATIONS
2. The impact of U.S. domestic communications issues;
3. The “limited objectives” syndrome;
4. Fear of U.S. domination;
5. The general disorder of U.S. international communications.
INTERESTS THAT CONFLICT WITH THE GLOBAL SYSTEM
A. [bolded passages were highlighted with a marker in the original] International
Carriers
These organizations, including both the United States and foreign carriers, view the
INTELSAT system as a direct competitor to the established cable and high frequency
radio routes. Long established spheres of influence and methods of operation are also
threatened. With a single global communication satellite system, opportunity for national
control of international communications routing, ability to charge transit fees and
apply other restrictive practices will be lost. Many of the foreign carriers feel that their
earnings would be greater and their control maintained if traffic is transmitted over cable
and high frequency radio systems where their ownership may be as high as 50 percent in
contrast to their 1 to 5 percent ownership which is typical in INTELSAT. Some
Administrations in Europe frankly admit using the profits of their international telecommunications
traffic to subsidize their domestic costs for both telecommunications and
postal services. Some Administrations also feel that where cable and high frequency radio
are no longer viable, their interests would be better served through the creation of regionally
oriented satellite systems where their ownership share could be increased.
Another arrangement preferred by U.S. record carriers and some foreign
Administrations over the present COMSAT-INTELSAT arrangement would be a completely
non-profit space segment structure which would be [4] supported by the various
nations on the basis of use. Administrations would derive income from earth station
charges which could be handled much like cable charges without the added complication
of providing income and profits to the space segment owners. The only major impediment
in the way of this arrangement is COMSAT. Other nations are not faced with this
dilemma. All sophisticated Administrations can be assumed to be thoroughly aware that
the U.S. poses the only impediment to this kind of structuring.
Some of the international record carriers are also concerned that the INTELSAT
organization will spawn greater sophistication in the less developed nations and encourage
them to assume a more prominent role in their internal communications systems as
well as the satellite earth terminals used as gateways for international traffic.
In the past, international carriers have often dominated completely communications
within a developing nation through control of international communication facilities.
B. Domestic Common Carriers
While our domestic common carriers recognize the need for single ownership and
management of international communications systems and for compatibility between
international and domestic systems, they are in conflict with certain of COMSAT’s proposals
for early domestic communications satellite service. A key question affecting
domestic service stems from the present international agreements which provide for
shared frequencies between terrestrial microwave systems and space services.
In the frequency bands assigned to satellite communications, we also operate a profusion
of domestic terrestrial microwave relay systems which involve a capital investment
over $2 billion. This is over twice the total capital invested in international telecommunications
by all the nations of the world. These terrestrial microwave systems are continuing
to expand rapidly. It is clear that the installation of numbers of domestic satellite earth sta-