Exploring the Unknown - NASA's History Office

62
THE HISTORY OF SATELLITE COMMUNICATIONS
problems relating to the future authorization of commercially operable space communication
systems. It was stated in the Notice that it may not be feasible to have more than
one or a limited number of commercial satellite communication systems due to the substantial
capital investment required and limitation of radio spectrum space; and that this
raises a problem as to the manner in which such a system or limited number of systems
could be accommodated within the Commission’s policy of fostering beneficial competition
in the international communication field and within the anti-trust laws. Accordingly,
the Notice solicited views from all interested parties as to the best plan of [e]nsuring that
international communications common carriers, and others, participate on an equitable
and non-discriminatory basis in a single or limited number of satellite systems. Views were
also solicited as to the legality of the suggested plan; the Commission’s authority to prescribe
such plan; and the extent to which participants in the plan would be subject to the
Commission’s jurisdiction. The Notice directed that responses thereto be filed on or
before May 1961 and that replies to such responses be filed on or before May 15, 1961.
2. Responses have been filed by twelve parties, viz., American Rocket Society;
American Securities Corporation (for the future Western Union International, Inc.);
American Telephone and Telegraph Company; General Electric Company; General
Telephone & Electronics Corporation; Hawaiian Telephone Company; International
Telephone & Telegraph Corporation (and American Cable & Radio Corporation);
Lockheed Aircraft Corporation; Press Wireless, Inc.; Radio Corporation of America (and
RCA Communications, Inc.); The Western Union Telegraph Company; and the
Department of Justice (commenting only on anti-trust matters).
3. Replies to such responses were filed by American Telephone and Telegraph
Company, General Electric Company, and Lockheed Aircraft [476/2] Corporation.
4. In general, the respondents were in agreement that for economic and other reasons
a single satellite communications system or a limited number of systems, financed
and owned by private enterprise, would best serve the public interest. To the extent that
the respondents addressed themselves to a specific type of plan, they generally favor a
joint venture for the ownership and operation of a system. The principal difference
among respondents in this respect related to the composition of such a joint venture.
Thus, American Telephone and Telegraph Company and International Telephone and
Telegraph Corporation favor ownership in such a system being limited to international
communications common carriers, such entities participating in ownership to a degree
consistent with their use of the system; General Telephone & Electronics Corporation
would limit the ownership to both domestic and international communications common
carriers; while Lockheed Aircraft Corporation, 1 General Electric Company, and The
Western Union Telegraph Company favor ownership by common carriers, the manufacturing
companies, and possibly the public.
5. Upon consideration of the responses and the replies filed herein the Commission
has arrived at certain conclusions, the application of which will serve to foster and accelerate
the ultimate establishment of a commercially operable space satellite communication
system in the public interest.
6. We have concluded that the recommendations made herein with respect to the
formation or arrangement of a joint venture (or joint undertaking) composed only of
existing common carriers engaged in international telephone and telegraph communication
is deserving of consideration and exploration as an effective means of promoting the
orderly development and effectuation of such a system. We believe that, under
1. Lockheed in its reply comments withdrew its proposal that ownership in a satellite system include
private interests other than the international carriers.