Proceedings of the Workshop - United Nations Office for Outer ...

140 THE ROLE OF INTERNATIONAL ORGANIZATIONS IN PRIVATIZATIONAND COMMERCIAL USE OF OUTER SPACECommentary PaperTransformation of Intersputnik’sregulatory basis at the phase ofcommercial operation of its spacesegmentVictor S. VeshchunovDirector, Legal and InternationalDepartmentIntersputnik International Organisation ofSpace CommunicationsIn the context of the processes of liberalization andderegulation of the global telecommunications marketINTERSPUTNIK faced the necessity to radicallychange its principles of activity as well as the strategyof its development. The new challenges of time requiredfrom the Organization highly efficient operation of thesatellite system in order to obtain the maximum profit.These challenges were met by INTERSPUTNIKentering into the third phase of establishing aninternational satellite communications system asstipulated by Article 5 of the Agreement on theEstablishment of the INTERSPUTNIK InternationalSystem and Organization of Space Communications(hereafter - Basic Agreement), i.e. "the commercialoperation of the communications system using a spacesegment owned by the Organization or leased from itsmembers".In 1993, the XXIInd Session of the Board resolvedto procure the Organization's own space segment for thepurpose of its commercial use. To this end it wasnecessary to promptly change INTERSPUTNIK'sregulatory basis to adapt it as much as possible to thenew requirements. First of all, it related to theabove-mentioned Basic Agreement. In 1993-1996 anad-hoc group of legal experts of the Member countriesof the Organization elaborated and coordinated two newConstructive Instruments of the Organization - theProtocol on Amendments to the Basic Agreement andthe Operating Agreement. Subsequently, thesedocuments were approved at the XXVth Session of theBoard. The Protocol will take effect as from the date ofreceipt by the Depositary of the Basic Agreement, theRussian Government, of notifications of acceptance bytwo thirds of Organization's Member countries. TheOperating Agreement, in its turn, should be signed bythe communication entities appointed by theINTERSPUTNIK Member countries no later than threemonths after the Protocol coming into force.During the elaboration of the above documents, thegroup had to resolve a number of complicated legalproblems.Firstly, it was decided to draw up the Protocol andOperating Agreement simultaneously in order to avoidconflicts between them and eventual "legal vacuum".One should note, that the Operating Agreement is aninterdepartmental international treaty and should besigned either by a Member of the Organization(Government) or by a telecommunications entity fellingwithin the jurisdiction of the appropriateINTERSPUTNIK Member (Signatory).Secondly, the problem arose of the so-called "dualmembership". In full conformity with provision 4 (C)Article 30 of the Vienna Convention on the Law ofTreaties, it was decided that the Members of theOrganization which do not adopt the Protocol and,correspondingly, do not appoint anytelecommunications entity to sign the Protocol, willcontinue their membership in the Organization. TheBasic Agreement will be effective in its original versionas regards the relationship between a Member of theOrganization, which adopted the Protocol and aMember, who did not.Thirdly, it was decided that amendments to theBasic Agreement should be drafted in a form ofProtocol because the amendments to an agreement shallhave the same legal status as the agreement itself. Thus,it was initially understood that the Protocol onAmendments will have a status of an internationaltreaty and should be adopted by the Member countriesby means of ratification.