ment of our company will certainly give this project continued personal support and supervision. We have sought to be as responsive as possible on all aspects of your inquiry. including cost estimates. The limited time available to us has made it difficult to obtain more information from overseas correspondents and also from the Communications Satellite Corp. Additional information will be provided as soon as it becomes available. Yours very truly, THOMPSON R. MITCHELL, President. WIDEBAND CHANNELS VIA SATELLITE-PACIFIC OCEAN AREA FOR THE DEFENSE COMMUNICATIONS AGENCY This proposal is submitted by RCA Communications, Inc. in response to a letter dated May 2, 1966 (reply reference 350) from Maj. Gen. George E. Pickett, Deputy Director for Defense Communications System, soliciting information as to RCA's willingness and ability to provide the Department of Defense with a number of high quality leased channels in the Pacific area by means other than present cable facilities. This document will indicate and underscore RCA's willingness to furnish the required facilities and also highlight its unique technical and operational capabilities to provide service at the level of reliability specified by the U.S. military. RCA is better qualified than is any other carrier to make all the necessary arrangements and to act as DOD's agent with respect to those circuit segments provided by all domestic, international or foreign entities which may be involved in providing the requested services. This includes all matters related to ordering, providing and billing the new services. Of all U.S. carriers, RCA alone is franchised and holds traffic operating agree ments to provide telecommunications services with all three of the distant Pacific points covered by this proposal-Thailand, Japan, and the Philippines. RCA's history of operation and close cooperation with telecommunications authorities in these countries spans almost 40 years. RCA is the only carrier that can provide the full range of coaxial cable, satellite, and HF radio communications facilities necessary for optimum flexibility and continuity of DOD communications services in the Pacific area. radio will be of unique advantage in cordinating the restoration of satellite and coaxial cable circuits. HF Recently, following several conferences with the FCC, RCA announced a dramatic new rate plan for international leased channel services. In conse quence, RCA has filed new tariffs with the FCC substantially reducing leased channel rates to major areas of the world. It is expected that the magnitude of these reductions will result in cost savings to DCA which will go a long way toward covering the cost of leasing the additional facilities. I. GENERAL RCA in cooperation with its oversea telecommunications correspondents will undertake to provide the U.S. Department of Defense with leased communications channels between Hawaii on the one hand and Japan, Thailand, and the Philippines on the other hand. In each case, the circuits will meet schedule 4B alternate voice/data quality or equivalent CCIR standard. The circuits will be furnished via communications satellite systems which will be available on, or earlier than April 1, 1967. All circuits will be provided on a 24-hour-per-day basis and the satellite segments of the circuits will average 99.5 plus percent reliability taken over a year's time. DOD will have the right to subdivide each 4KC circuit as necessary for alternate or simultaneous voice/data, telegraph, or facsimile transmissions. Hawaii terminal charges for the satellite portion of the circuits will be furnished under approved FCC tariff rates. RCA does not propose to apply minimum revenue guarantees or contingent termination charges in Hawaii. RCA plans to file appropriate tariffs with the Philippines Public Service Commission covering the Philippines terminal charges. In Thailand and Japan, terminal charges will be applied by RCA's correspondents, the ministry of communications, director general of posts and telegraphs, of Thailand and Kokusai Denshin Denwa (KDD), respectively. The charges in the Philippines, Thailand and Japan will be uniform for operations with all U.S. carriers. In each case, RCA will assume responsibility, acting as DOD's agent with respect to ordering, providing and billing the circuit segments furnished by domestic, international, or foreign entities involved in furnishing the proposed services. RCA will also assume the responsibility for technical sufficiency of the circuits on an end-to-end basis. RCA, to effectively implement this plan, will set up a special project group comprised of top-level technical and administrative personnel. This group will have the full support of the RCA organization and will have available the total technical resources of Radio Corp. of America. II. SYSTEM DESCRIPTION The Communications Satellite Corp. presently has under construction an earth station at Paumalu, Hawaii, which will operate with a second generation, 24-hour satellite (Intelsat II) positioned in an equatorial orbit above the Pacific at 176° east longitude. Intelsat II will be capable of providing communications services between Hawaii and Thailand, Japan, and the Philippines. Both the Hawaiian earth station and satellite are expected to be operational late in 1966-well in advance of the required DOD service date of April 1, 1967. It is understood that DOD has been furnished technical specfications of Intelsat II and the Paumalu earth station by Comsat, however, if this is not the case, RCA will provide these documents. In Japan, Kokusai Denshin Denwa (KDD), RCA's correspondent, has under construction an earth station situated at Juo-Machi (Ibaragi Prefecture) which will operate in conjunction with the Pacific satellite. This station will be ready for operation early in 1967. The Thai administration also has a project underway to provide earth station facilities for operation with the Pacific satellite. Initially, operations in Thailand will be conducted using a transportable station which will be replaced by a permanent, full-sized installation. The transportable station is to be erected at Bang Phra (Cholburi Province) and is expected to be operational by April 1, 1967. RCA has the agreement of the Thai Administration to cooperate in furnishing satellite circuits. RCA is the only U.S. international record carrier currently licensed to operate a circuit between Thailand and the United States. Th Government of the Philippines is now considering proposals from RCA and other entities for the construction of earth stations in the Philippines. It is expected that a decision will be reached in this matter shortly for the construction of a permanent earth station. If the permanent station should not be completed on or before April 1, 1967, it is further anticipated that the entity or entities authorized to contruct the permanent station shall undertake to put up a temporary station. This will make it possible to meet the commitment of the Philippines to the U.S. Government to make available 10 channels by April 1, 1967. If an organization other than RCA is given the franchise to construct and operate the Philippines earth station, RCA will in any case have access to the facilities to serve its customers-including the U.S. military. The site of the Philippines earth station has not yet been established; however, it seems likely that it will be installed to the north of Manila along the lines of the existing Manila/Baguio microwave system. III. OPERATING, CONTROL AND MONITORING PLAN (a) Hawaii and the Philippines RCA intends to establish a common control and test center adjacent to or as near as possible to the customer's communication center in Hawaii. RCA proposes similar arrangements in the Philippines. These test centers will be located in such a manner as to have the most direct access to circuits from the earth stations. The RCA control and test centers will each be equipped to handle either individual VF circuits or 48 kc. basebaud groups. If 48 kc. basebaud groups are utilized, each group will fall within the frequency range of 60 kc. to 108 kc. A group pilot will be associated with each channel group to maintain transmission path integrity. (1) The 48 kc. multiplex system will consist of a solid state radio multiplex system of modular design for ease of maintenance and upkeep, capable of high quality service with a high degree of reliability. All circuits will be designed for nominal operation well below rated capacity to insure maximum stability and length of uninterrupted service. All performance characteristics will equal or exceed commercially available systems. Transmission path integrity as well as overall system integ rity will be maintained throughout by means of suitable pilot and power alarm systems giving both audible and visual alarm indications. (2) The supervisory console will consist of a modular enclosure containing switching, ringing and supervisory apparatus. All equipment necessary to maintain proper liaison between the control center and DCA sites will be available. Equipment used throughout the supervisory console will be of high quality service with a high degree of reliability. (3) Equipment Racks for alternate voice/data equipment will consist of solid state amplifiers, line pads, patching, and supervisory equipment for up to six full duplex channels each. Rack fabrication shall be in accordance with the best voice/data practices with strict observance to shielding and signal grounding techniques. Line conditioning will be accomplished utilizing proven equipment of the best quality commercially available. (4) Customer alternate use voice/data equipment, where required, will consist of two wire/four wire terminating sets, echo suppressors, in-baud signaling devices, amplitude equalizers, telephone terminals, patching facil ities and pads or any combination dictated by specific circuit requirements. All equipment will be of the latest solid state design proven through use to be both reliable and stable with circuit characteristics more than adequate to satisfy specific circuit needs. Each equipment group or package will be so arranged such that a minimum of customer space is utilized either on an individual package basis or by consolidation of up to three packages of equipment in a standard rack mounting. (5) General: (a) All equipment to be provided will be fabricated in ac cordance with procedures beneficial to and in accordance with good voice/data practices. (b) Strict adherance to proper shielding requirements and good grounding techniques will be established. (c) Proper impedance matching shall be maintained throughout the system. Equipment suitable to test any circuit to its full capabilities will be available. Personnel specially trained in the use of this equipment will be in attendance. Automatic circuit condition indicators will be used wherever suitable. RCA will provide for the staff and operation of the control and test centers. manning them continuously. The technicians in charge will be responsible for normal operations and maintenance of equipment. Routine circuit measurements will be made at regular intervals in cooperation with the earth station and distant correspondents. Activities at the control centers will be coordinated with RCA cable and high frequency operating centers at Hawaii and the Philip pines to facilitate shifting of DOD and NCS circuits from one transmission medium to another when necessary to provide alternate routing and continuity of circuit operation. RCA is by far the largest international carrier for both telegraph and telephone services in the Philippines. It has an established operating organization in that country consisting of almost 400 people. No other carrier is so well equipped to provide detailed technical and operational attention to military communications' requirements of every type in the Philippines. (b) Thailand and Japan RCA will cooperate with its telecommunications partners in Thailand and Japan to establish appropriate control and test centers in those countries. As previously stated, RCA will assume responsibility for the overall technical sufficiency of circuits. This would include, in accordance with presently established practice, the stationing of RCA personnel in those countries as may be necessary and permitted by the administrations concerned. VI. COST ESTIMATES As requested in General Pickett's letter of May 2, 1966, the following data constitutes circuit cost estimates and represents the best information RCA could obtain within the limited time allowed for the preparation of this proposal. It is important to note that the charges for the portion of the facilities provided by RCA's correspondents at the overseas terminals in Thailand and Japan will be the same whether the service is provided by RCA or any other carrier which may be authorized to provide the channels. In the case of the Philippines, it is contemplated that RCA will provide facilities at the indicated terminal. However, because of the current uncertainty as to the ownership of the earth station at this location, the charges quoted below are best estimates. The cost estimates for the Philippines and Thailand will apply during the period when transportable earth stations are utilized and it is anticipated that these charges will be substantially reduced when permanent stations are in operation. (a) Hawaii Terminal For each circuit to Japan, Philippines, or Thailand: 1. RCA Hawaii Control Center to satellite (including earth station and Hawaii half of space segment). 2. RCA Hawaii Control Center to DCS/TCF Hawaii__. 3. Conditioning and alternate use charge__. 4. Nonrecurring installation charges, per circuit_ 1 Existing landline charges. are subject to possible adjustment. If alternate voice use not required, these charges are reduced by $15. (b) Philippines terminal When common control center is established, these charges Per month per VF circuit 1 1 $23,000 None 1. RCA Philippines Control Center to satellite (including earth station station and Philippines half of each segment). 2. Philippines Control Center to DCS/TCF, Clark Field___. 1 This rate applicable during period of utilization of transportable ground station. The rate is expected to become substantially lower when the permanent ground station becomes available. (c) Japan terminal 1. KDD Satellite Control Center to satellite (including earth station and Japan half of space segment). 2. KDD Satellite Control Center to DCS/TCF, Fuchu---- 1 Existing rate for VF circuits. This may be subject to adjustment by KDD. (d) Thailand terminal 1. Thai Satellite Control Center to satellite (including earth station and Thailand half of space segment) – Per month per VF circuit 2326, 134.00 2 This rate is in accordance with the agreement between the Director General of Posts and Telegraphs, Thailand and NCS. We understand that the Thai Government may or may not add a landline charge which, in any event, will not exceed approximately $500 per month per circuit. 3 This rate applicable during period of utilization of transportable earth station. The rate is expected to become substantially lower when the permanent earth station becomes available. VII. BASIS FOR COST ESTIMATES The proposed rates were determined in light of RCA's overall rate of return for its total common carrier services. Such rate of return for the most recent year, 1965, was within the range allowed by the FCC to RCA as the "bellweather" carrier in The Western Union Telegraph Company, 25 FCC 535, 602. RCA has filed tariffs substantially reducing its leased channel rates to major areas of the world. These reduced rates pass on to the users the benefits of the latest technological improvements in the industry. These rate reductions will mean substantially lower costs to DCA not only for its existing cable circuits but also for future cable and satellite circuits. The proposed rates set forth herein are based on RCA's new rate pattern. With these reductions, RCA believes that its rate of return on its total rate base will continue to be within the zone of reasonableness as established by the FCC. In any event, the U.S. portion of the services, and the rates therefor, are fully subject to FCC regulation. VIII. SUMMARY RCA is prepared to move ahead immediately, effecting all arrangements necessary to assure DOD of fully operational Pacific area satellite circuits within the time frame and according to the technical data and cost estimates outlined in this response. RCA holds the singular position of being the only American carrier licensed and franchised to operate with Japan, Thailand, and the Philippines. This, placed against the background of four decades of experience in providing longhaul Pacific communications facilities, establishes RCA as the best qualified carrier to assure implementation of the required satellite services. Mr. LOUIS C. MEYERS, FEDERAL COMMUNICATIONS COMMISSION, June 9, 1966. Director of Procurement and Contracting, Communications Satellite Corp., 1900 L Street NW., Washington, D.C. DEAR MR. MEYERS: We wish to thank you for furnishing us with a copy of your response to the recent request of Defense Communications Agency regarding the furnishing of 30 voice-grade channels to points in the Far East. We assume that you have, of course, advised the Defense Communications Agency that the furnishing of such service by your company is contingent upon obtaining necessary authorizations from the Commission which have not yet been applied for. In connection with this matter, we would appreciate receiving copies of any memorandum of understanding or agreements either in preliminary or final form as soon as possible which have been proposed to or concluded with the Governments of Thailand, the Philippines, and Japan. Thank you for your cooperation. Very truly yours, BEN F. WAPLE, Secretary. |