by the industry in advocacy, duplicate engineering analyses, surveying for station sites and countless other related tasks. It is questionable whether the resulting public benefits are commensurate with these expenditures. Conflicting applications for the fourth earth station in the Southeastern United States and the fifth station in the Caribbean area are now before the Commission, with more yet to come. Positions were taken before the Commission in its proceeding in docket No. 15735 regarding the three initial earth stations by the following common carriers and an association of carriers: American Telephone & Telegraph Co. (A.T. & T.), Communications Satellite Corporation (Comsat), Hawaiian Telephone Co. (Hawaiian), ITT World Communications, Inc. (ITT), RCA Communications, Inc. (RCA), Western Union International, Inc. (WUI), and United States Independent Telephone Association (USITA). The initial positions of these organizations regarding earth stations are summarized as follows: (a) Comsat-exclusive ownership and operation by it; (b) WUI and RCA-joint carrier ownership; (c) A.T. & T., Hawaiian, and USITA—joint Comsat-carrier ownership: and (d) ITT-individual carrier ownership. These capsule summaries are not intended to portray or detract from the complete position of each organization which is on record with the Commission. The initial position of each organization has remained basically unchanged although certain variations have evolved: witness the ITT-RCAWUI joint application for a fourth earth station in the Southeastern United States. On May 12, 1965, the Commission announced an interim 2-year policy authorizing Comsat exclusively to own and operate the three initial satellite earth stations to be located in northeastern and northwestern parts of the continental United States and in Hawaii. The Commission's interim policy was expressly conditioned so as not to prejudice the position of any communications common carrier in the future involving final determination of earth station ownership and operation. Following the Commission's interim decision regarding the three initial stations, these events occurred: (a) Comsat requested exclusive authorization for a fourth earth station in the Southeastern United States and a fifth station in the Caribbean area; (b) ITT requested authority for its own Caribbean station, and indicated no objection to joint participation by the other international public service carriers; WUI and RCA each requested joint participation; and (c) RCA, WUI, and ITT filed a joint application for a station in the Southeastern United States and invited participation by any other authorized international carrier, except Comsat. The earth station controversy is flaming anew. Comsat, the Western Union Telegraph Co. (Wutco) and A.T. & T. have. for example, each petitioned to deny the joint southeastern application of ITT, WUI, and RCA. A.T. & T.'s objection, basically technical, was aecompanied by a request for participation in this joint station. A.T. & T. and Comsat have each petitioned to deny ITT's application for a Caribbean earth station. On the other hand, RCA and WUI have requested participation in this Caribbean station. Comsat's application for a Caribbean earth station has been met with separate petitions to deny filed by WUI, RCA, ITT, and A.T. & T., respectively. Finally, A.T. & T., ITT, RCA, WUI, and Wutco, have each separately petitioned to deny Comsat's application for a southeastern station. This complicated situation has become further muddled by separate applications by A.T. & T., ITT, and WUI for authority to join in the laying of a transistorized, high-capacity submarine cable connecting the Caribbean area with Florida. Comsat has opposed these applications. Adversary pleadings are mounting rapidly and voluminously in the Commission's files. Carriers formerly conceding some role to Comsat in earth station planning and operation have become more adamant against Comsat participation. Before there is any further hardening of opposing positions, WUI suggests a reevaluation of the respective positions of all interested authorized communications carriers with the view toward compromising individual corporate viewpoints. This compromise would be in the public interest, in the interest of national defense and in the furtherance of sound U.S. telecommunications policies. WUI'S PROPOSAL The Communications Satellite Act provides the Commission with a choice of alternative methods of ownership and operation of earth stations. The act has been paraphrased as follows: Under the provisions of the Communications Satellite Act, Comsat alone, or one or more carriers, or Comsat and one or more carriers may be licensed as the sole owner and operator of earth stations.1 "Comsat and one or more carriers" is the obvious middle ground on which the industry can unit in common purpose and joint pursuit of the statutory goals as declared by Congress in the Satellite Act. The wisdom and foresight of the Congress in providing the Commission with the alternative guidelines for earth station ownership enable us to submit this compromise proposal. Joint ownership of all satellite earth stations, within the Commission's jurisdiction, by Comsat and authorized communications carriers is the answer to the current controversy. The joint owners could designate Comsat as their managerial agent for the construction and operation of these stations in much the same fashion as the signatories to the August 1964 multination communications satellite agreement have appointed Comsat the manager of the space segment. A consensus on this solution should be attainable in the public interest since it involves less compromise of previously advanced positions than any other solution that comes to mind. Comsat, with the assistance and guidance of the Department of State and the Commission, has already demonstrated the feasibility of multination ownership and operation of the space segment. A.T. & T. Hawaiian, ITT, RCA, WUI and USITA have, at one time or another, suggested jointcarrier ownership, and in most instances, with some form of participation by Comsat. Joint earth station ownership by the authorized communications carriers and Comsat, with the managerial functions entrusted to Comsat, will be both feasible and beneficial. Potential conflicts of interest will be obviated and concerted industry efforts will be channeled toward attainment of the national telecommunications policy. This joint earth station ownership in the United States would obviate a possible proliferation of redundant stations by competitive interests and would also facilitate common earth station entry points in the United States for communications from abroad, with resulting operating efficiencies for overseas telecommunications entities. Additionally, joint ownership would dispose of the problem of diverse ownership of different stations in the United States which could be disruptive of the system because the individual owner, be it Comsat or an authorized communications carrier, might be inclined to favor its own station without regard to overall system efficiency. Multiple-carrier ownership of the earth stations in the United States will be consistent with the multiple-nation participation in the existing European earth stations. The success of the global satellite system is dependent not only upon the cooperation of the many participating soverign nations but also upon the cooperation of the telecommunications industry in this country. If cooperation cannot be attained at home, it cannot be expected abroad. Cooperation by entities with different interests is the touchstone for attainment of: The policy of the United States to establish, in conjunction and in cooperation with other countries, as expeditiously as practicable a commercial communications satellite system, as part of an improved global communications network, which will be responsive to public needs and national objectives, which will serve the communication needs of the United States and other countries, and which will contribute to world peace and understanding. Communications Satellite Act, section 102 ( a ). If the U.S. telecommunications industry will join together in a cooperative endeavor to attain "peace and understanding" on the earth station question, a meeting might be convened under the aegis of the Commission to work out the details for joint earth station ownership by Comsat and all eligible qualified carriers serving the public and Government, and for management of the stations by Comsat. 1 Asher H. Ende, Deputy Chief, Common Carrier Bureau, address before IEEE Inter national Communications Conference, Philadelphia, Pa., June 15, 1966 [emphasis added]. Pending possible resolution of this matter along the lines outlined herein, we have no choice but to pursue our present course of action in promoting the joint application for a southeastern station with our co-applicants and in opposing exclusive single-entity stations. Copies of this letter are being sent to all organizations named herein together with those business and labor leaders concerned with overseas telecommunications named in the report and recommendations to Senate and House Commerce Committees of April 1966 by the Intragovernmental Committee on International Telecommunications (see attachment). All interested organizations are respectfully requested to communicate their views to the Commission concerning the suggestions in this letter. Very truly yours, Attachment. ATTACHMENT E. A. GALLAGHER. Mr. Joseph A. Beirne, president, Communications Workers of America, 1925 K Street NW., Washington, D.C. Mr. Harold S. Geneen, president, International Telephone & Telegraph Corp., 320 Park Avenue, New York, N.Y. Mr. Douglas S. Guild, president, Hawaiian Telephone Co., Post Office Box 2200, Honolulu, Hawaii. Mr. Elmer L. Hageman, president, Commercial Telegraphers Union, 1025 Dupont Circle Building, Washington, D.C. Mr. Howard R. Hawkins, president, RCA Communications, Inc., 66 Broad Street, New York, N.Y. Mr. Frederick R. Kappel, chairman, American Telephone & Telegraph Co., 195 Broadway, New York, N.Y. Mr. James McCormack, chairman, Communications Satellite Corp., 1900 L Street NW., Washington, D.C. Mr. Russell W. McFall, president, the Western Union Telegraph Co., 60 Hudson Street, New York, N.Y. Mr. James R. McNitt, president, ITT World Communications Inc., 67 Broad Street, New York, N.Y. Mr. Peter A. Nenzel, president, United States Independent Telephone Association, 425 13th Street NW., Washington, D.C. Gen. David Sarnoff, chairman, Radio Corp. of America, 30 Rockefeller Plaza, New York, N.Y. Mr. Joseph P. Selly, president, American Communications Association, 18 John Street, New York, N.Y. EXHIBIT B RECOMMENDATION BY WESTERN UNION INTERNATIONAL FOR A SATELLITE INDUSTRY LIAISON COMMITTEE SATELLITE INDUSTRY LIAISON COMMITTEE Western Union International, Inc. (WU1) has recommended to the Federal Communications Commission that an industry committee be established under the aegis of the Commission for the purpose of creating an effective liaison between the American international carriers and the Communications Satellite Corp. (Comsat). Such a committee would, in WUI's opinion, facilitate greater cooperation in satellite matters by all communications entities, promote optimum utilization of satellite channels and redound to the benefit of the public. Without this committee, the international carriers are unable to stay abreast of satellite developments, are not in a position to intelligently negotiate with their overseas correspondents who are usually better informed regarding satellite programs, and are unable to plan effectively for future satellite and cable coordination. WUI first proposed the establishment of an industry liaison committee on January 4, 1965, in its "Comments" filed with the Commission in its satellite earth station proceeding. WUI has consistently called for the creation of such a committee in nearly every pleading filed with the Commission relating to satellite matters-the last occasion being in WUI's letter of June 1, 1966, to the Commission. There are attached hereto copies of correspondence between the Commission and the members of the industry regarding WUI's proposal for the establishment under the aegis of the Commission of an industry committee to coordinate the use of, and the planning for, satellite communications channels. All of the carriers agreed with WUI's objective of obtaining an effective liaison-except Comsat which found no merit in WUI's suggestion. [Addressee.] FEDERAL COMMUNICATIONS COMMISSION, GENTLEMEN: Western Union International (WUI) has informally renewed suggestions proposed in certain filings made by it with the Commission that consideration be given to the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corp. and the other U.S. international carriers. WUI has indicated that in its opinion such a committee would permit the other U.S. international carriers to be currently informed on satellite communications developments, to negotiate more intelligently with their overseas correspondents and to plan effectively for future satellite and cable coordination. The Commission believes it could more adequately evaluate the WUI proposal if it had the views of Comsat and the other international carriers as to whether in their opinion establishment of such an industry committee is the best method for accomplishing the desired results. Accordingly, we would appreciate receiving any comments you may wish to make in regard to the above proposal. Very truly yours, BEN F. WAPLE, Secretary. ITT WORLD COMMUNICATIONS, INC., Mr. BEN F. WAPLE, Secretary, Federal Communications Commission, DEAR MR. WAPLE: This is in reply to your letter of March 9, 1966 (your reference 9120), concerning the suggestion of Western Union International that consideration be given to the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between Comsat and the U.S. international carriers. It is our view that such a committee would serve a most useful purpose in keeping all of those U.S. carriers concerned with the establishment and use of the international satellite communications system up to date with respect to current developments and arrangements which affect their operations. There have been many meetings between an individual carrier or several carriers and Comsat with respect to specific problems. However, such meetings have been sporadic and for the most part related to detailed problems rather than a general exchange of ideas and information which would be useful in advancing our national interests in the communications satellite field. Frequently the carriers learn of a development, arrangement, or negotiation which affects their use of the satellite system and their relationships abroad only through their foreign correspondents or publicity after the fact, having had no opportunity to express their point of view before a technique was adopted or an apparent U.S. position was expressed. In view of the highly competitive situation among the carriers in this country and the availability of satellites and cables as alternative media, we agree with WUI that a vehicle should be established which would permit the public carriers who must work directly with the foreign correspondents to be fully aware of Comsat's activities in the development of the satellite system and, obviously, it is equally important for Comsat to be aware of the carriers' plans for its use. In addition, we believe it would be of value to the Commission in fulfilling its responsibilities under the Satellite Act and the Communications Act to have the views of such a committee with respect to the problems which arise, particularly during the early development stages of the system. Very truly yours, JOHN A. HARTMAN, Jr. AMERICAN TELEPHONE & TELEGRAPH CO.. Mr. BEN F. WAPLE, Secretary, Federal Communications Commission, DEAR MR. WAPLE: This is in reply to your letter of March 9, 1966, requesting our comments on the proposal of Western Union International that consideration be given to the establishment of an industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corp. and the U.S. international carriers. We find it difficult to comment on WUI's suggestion without knowing more about the aims and functions of the industry committee. If its purpose, as your letter indicates, is to keep the U.S. international carriers currently informed on satellite developments, then it would seem that this could be accomplished by periodic briefings by Comsat of representatives of the members of the industry and that no industry committee would be needed. If, however, it is contemplated that the proposed committee would take joint action with respect to Comsat or otherwise, then obviously much more would need to be known before we can assist the Commission in evaluating the proposal. A closer rapport between Comsat and the international carriers is a worthwhile objective, and we would be glad to participate in any program which seems likely to achieve it without limiting the independence of the participants. We also venture to suggest that the early delineation of Comsat's role as that of a common carrier's common carrier could considerably assist the bringing about of a closer working relationship between the international carriers and Comsat. Very truly yours, H. M. BOTKIN. COMMUNICATIONS SATELLITE CORP., March 29, 1966. Mr. BEN F. WAPLE, Secretary, Federal Communications Commission, DEAR MR. WAPLE: Your letter of March 8, 1966, has asked for the comments of this Corporation on the informal sugestion of Western Union International (WUI) that there be established an "industry committee under the aegis of the Commission for the purpose of creating effective liaison between the Communications Satellite Corporation and the other U.S. international carriers." The suggestion made by WUI indicates only vaguely the nature and function of the proposed committee. However, under whatever assumptions may be made as to the scope of WUI's suggestion, we believe that it is neither necessary nor appropriate to establish such a committee. Comsat is in the business of selling the use of satellite channels and services for communication purposes, and it is in its interest to promote such use. It is fully aware of the necessity for keeping its potential customers informed of developments in the field of satellite communications. To this end, it has an active marketing staff which is in constant communication with representatives of the U.S. international carriers. Furthermore, Comsat's management, as well as top-level personnel in the technical and operating departments, confer frequently with their counterparts in other companies. We recently held a meeting, to which all U.S. international carriers were invited, at which Comsat made a presentation as to plans for the development of the global satellite system. We anticipate that from time to time, as circumstances indicate the need therefore, further similar presentations will be made. Furthermore, as WUI and the other U.S. international carriers are aware, Comsat will gladly continue to confer with WUI or any other carrier in order to provide it with relevant information which it desires in the development of its own program. The proposal formally to establish a committee under the aegis of the Com mission carries with it the implication that the committee would have powers to make recommendations or take action with respect to Comsat activities. The intrusion of such a committee in Comsat operations is not justified either in law or in fact. |