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

EXPANDING GLOBAL COMMUNICATIONS SERVICES 69In addition many developing countries are alsodependent on INTELSAT for their international traffic.In terms of Art. V(d) of the INTELSAT Agreement, thecharging rate for each type of utilisation of theINTELSAT space segment is the same for all users ofthat service. What this means is that routes andconnections which do not themselves generate sufficientincome to pay for their provision are charged at lessthan cost. It is to be hoped that a mutated INTELSATwill continue to provide these services, and thatfinancial considerations will not result in an undueincrease in charges to such countries and territories.Such services really are a public service, well within thetenor of the attitudes of UNGA Res. 1721.But how may one secure the INMARSAT and the(potential) INTELSAT position on such matters? In anera of competition where financial cost-effectivenessseems paramount, one can not wholly rely onassurances. As noted, there is the INMARSAT PublicService Agreement enforceable through the UK courts.Perhaps something similar could be done forINTELSAT, though I must say I would be reluctant tosee INTELSAT’s public service obligation securedthrough the vagaries of US law as it now exists.One solution might be to entrust the supervision ofsuch matters to an international body. I will come tothe question of an International Authority for otherpurposes, but that of enforcement of public serviceobligations could sit well with the other duties thatshould be given to such a body.In any event it is desirable that UNISPACE IIIshould express concerns on these matters, and theexpectation that the basic concept of ‘internationalpublic service telecommunications facilities’ should inthe general world interest be continued, if necessary bysubsidising uneconomic connections, routes andservices, by the more profitable. Telecommunicationsentities should not be able to cream off only profitableservices and routes, leaving others to shoulder theburden of the public interest where that service is lossmaking.New entrantsSome of the preceding discussion assumes the presenceof new telecommunications entities as providers ofspace services. That assumption is, of course, morethan an assumption. But there are certain mattersconnected with the entry of companies into the spacetelecommunications business which should causeconcern. Since some of these concerns can be metthrough the ITU, they will be mentioned under thatheading, below. Other general points arising from theentry of new providers into internationaltelecommunications may be identified here.States’ supervisory abilitiesIt is the duty of states parties to the 1967 Outer SpaceTreaty to authorise and on a continuing basis tosupervise the activities of state and non-governmentalentities in space (art. VI, OST). It is also the right ofall states to use Outer Space (Art. 1.2, OST).Similarly, states have duties under arts. 45.2 and 3 ofthe ITU Constitution as to the avoidance of harmfulradio interference. The question must be asked whetherall states are equally able to exercise these supervisoryroles. There is a risk that a state may be willing toauthorise space activities which it is not able properlyto superintend, and to allow the use of radio frequencieswithout being able properly to enforce the avoidance ofharmful interference. Perhaps where such an ability islacking, the ITU should be permitted not to acceptnotifications from such a state.Flags of convenience : HomesteadingWe can take the question of a state’s ability to meet itsduties as to licensing and supervision one step further.The concept of a ‘genuine connection’ has surfaced attimes in various matters of nationality. Companies andbusinesses are quite often created and registered withregard to taxation and other advantages, without therebeing a close or fundamental connection between thebusiness and the state of registration. Some states arein the business of being tax havens, and I note that atleast one of the new entrants to the spacetelecommunications business has so arranged its affairs.