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

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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.
THE ROLE OF INTERNATIONAL ORGANIZATIONS IN PRIVATIZATION 141AND COMMERCIAL USE OF OUTER SPACEThe Protocol and Operating Agreement provide forthe following changes in the INTERSPUTNIK'sstructure and principles of activity:A space segment can be leased not only from theMember countries of the Organization, but from anyother country . The satellites of the Organization can belaunched, positioned in orbit and controlled bycontractors who are not Members of the Organization.A new body, Operations Committee, is established. It isa body of the Organization for immediate examinationof and decision-making on different issues related to theOrganization’s activity. The Operations Committee isgiven extensive powers. At the same time, the sessionsof the Board are held less often, its competence is limitedto the most important policy issues and long-term goalsof the Organization. The Auditing Commission will beaccountable to the Operations Committee and not to theBoard.The institution of Signatories is introduced. ASignatory is a telecommunications entity appointed byits government. The government has the right to appointmore than one Signatories from a relevant country. Anyduly licensed telecommunications entity regardless oftheir form of ownership can be appointed Signatory.Correlation between the Protocol and the OperatingAgreement is also manifested in the fact that a statecannot be a Party to the Basic Agreement if the abovestate or a Signatory appointed by it do not sign theOperating Agreement. Thus, the termination of themembership of a Signatory in INTERSPUTNIK or thetermination of the membership of a Member willautomatically entail termination of the membership ofthe Signatory or a Member in the Organizationrespectively.The weighted voting procedure is implemented in theOperating Committee, each Signatory having a voteequal to its investment share in the Share Capital.All financial liability issues, including the shares inthe Share Capital are transferred from Members of theOrganization to the Signatories.The above modification of the INTERSPUTNIKlegal foundation made it possible to start endeavoursaimed at procuring INTERSPUTNIK own spacesegment. According to the resolution of the Board, theOrganization procures it by, firstly, filingINTERSPUTNTK's own orbital slots in geostationaryorbit and, secondly, manufacturing and operatingOrganization's own communications satellites.In view of the fact that in accordance withinternational law the frequency-orbit resource canbelong to states only, but not to internationalorganizations, it was decided to file orbital slots in twoways: firstly, by asking the Member countries tofacilitate the filing, coordination and notification ofpossible INTERSPUTNIK's orbital slots, and,secondly, by using orbital slots, earlier notified by theMember countries of the Organization, which do notuse them at present.The 6th meeting of the Committee ofPlenipotentiaries adopted and the Board subsequentlyapproved “The Procedures of ITU notification ofsatellite networks planned by INTERSPUTNIK andtheir international legal protection”. Under the aboveProcedures, the decision in principle to submit a filingfor planned satellite networks to the ITU should betaken by the Committee of Plenipotentiaries (OperatingCommittee). The terms and conditions applicable to thenotification and international legal protection of aplanned satellite network shall be stipulated byagreement concluded by the Director General ofINTERSPUTNIK and the notifying administration.Financial terms and conditions shall be stipulated byadditional protocols between the Director General andnotifying administration. Any terms and conditionsapplicable to the reimbursement for the allocation bythe notifying administration of its geostationary orbitalpositions to INTERSPUTNIK shall, as soon as thesepositions are coordinated, be covered by the terms ofreference of the Committee. The Director General(Directorate) and a Notifying Administration areresponsible for filings and international and legalprotection of such satellite networks.As of mid-1999,20 geostationary orbital slots wereallocated to INTERSPUTNIK . The Republic of Cuba
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ST/SPACE/2Office for Outer Space Af
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IntroductionThe Workshop on Space L
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CONCLUSIONS AND PROPOSALS OF THEWOR
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3between public and private law and
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8obstacles that impede ratification
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SESSION ONEExisting United Nations
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EXISTING UNITED NATIONS TREATIES: S
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48low earth orbit. This commercial
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EXPANDING GLOBAL COMMUNICATIONS SER
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SESSION EIGHTMaintaining the Space
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MAINTAINING THE SPACE ENVIRONMENT 1
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220Session 3: Wednesday. 21 July. 1
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223Annex IITHIRD UNITED NATIONS CON
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225No Name Address E-Mail27. Ersfel
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227No Name Address E-Mail57. Koloso
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