areas, integrated dispatch services, and public telephone services for domestic aircraft.

OTP has begun a program, with assistance from the Policy Support Division of The Office of Telecommunication of the Department of Commerce, to assess the technical, economic, and institutional effects of proposed new mobile systems and services and to formulate policy guidelines for the development and regulation of the expanded industry. In cooperation with the FCC, DOT, LEAA, HEW, and HUD, OTP will assess the feasibility of a pilot program to demonstrate innovative uses of mobile communications services in support of public safety, emergency health services, highway safety, and transportation in general.

F. New Technology

During the past decade there have been radical improvements in communications technology resulting from independent research and development of U.S. industry, research in the academic community, the U.S. space program, and other Government sponsored R&D. These technologies provide opportunities for vastly improved and expanded communications services, which could have significant social and economic effects if exploited properly.

OTP plans a study effort designed primarily to identify areas in which new technological advances are occurring and to evaluate the effect of these technologies upon the existing structure of the domestic communications industries. In the coming year, OTP hopes to identify in broad terms the current state-of-the-art in major fields of communications technology, and to isolate any natural limiting factors. If necessary, OTP will develop policy guidelines regarding the application of a new technology to a particular use.

II.

GOVERNMENT COMMUNICATIONS

A.

Federal Communications Policy and Planning

The Federal Government's own communications consume from 5 to 10 billion dollars per year. The major concerns in this field are avoidance of duplication, effective management of the acquisition of new systems, achievement of compatibility among systems, and satisfactory operating performance. The creation of the National Communications System in 1963, which sought to integrate long-haul, point-to-point communications of the Federal Government into a united system, has not significantly affected the planning, design and cost of government communications systems, although it has contributed to better coordination of day-to-day operations. The majority of Federal communications expenditures are beyond the scope of the NCS and have not been addressed at all from an overall Federal point of view.

The major objectives of the OTP program in the area of Federal communications are: First, identifying all the communications activities and resources of the Federal Government; second, determining the needs for effective information exchange among the various departments and agencies; and finally, taking action in those areas in which integration will best achieve the ends of efficiency and economy.

OTP has completed a review of all existing studies and analyses pertaining to the integration of the two largest communications networks in the Federal Government, the AUTOVON network and the FTS. OTP has determined that integration should not be attempted at this time.

OTP has undertaken a review of existing and planned radio navigation aids operated or used by various elements of the Federal Government, accounting for the expenditure of between one and three billion dollars annually (not including expenditures by private users). It is now discussing with the affected Federal departments the designation of a single system as the standard long-range radio navigation system and the formulation of a schedule on which other long-range systems can be phased out. It is planning an evaluation of the many different position-fixing systems used by the Government, to determine how many are needed to meet all requirements, and how many might be replaced if a global, high-accuracy navigation satellite system is deployed.

OTP has begun a review of all the Government's communications satellite programs, with an eye toward identifying avoidable duplication and assuring that available economies of scale are exploited. It will initiate a similar review of computer-communications networks. The assistance of major Federal departments and agencies will be solicited in both these reviews, and they are expected to be completed in time to influence the preparation of the Fiscal Year 1974 Budget.

OTP has begun work with other elements of the Executive Office of the President to determine the probable future communications needs of the Executive Office, particularly the needs for integration with the communications and information handling systems of the departments and agencies. It is anticipated that most of these requirements will be established during Fiscal Year 1973. Based on the results of the requirements survey, OTP plans to determine the technical arrangements necessary to meet these requirements, including the degree of compatibility among Federal systems needed to permit the required exchange of information.

B. Emergency Preparedness

The purpose of the Emergency Preparedness Program is to insure that national and Federal communications systems are fully capable of meeting priority needs under emergency conditions, including nuclear attack. This is a demanding task, because of the numerous contingencies that must be provided for--both with respect to the nature and location of the disruption and with respect to the nature and location of the services which, in one or another circumstance, it must be considered vital to restore. Emergency communications plans and capabilities must comply with three basic principles. First, maximum dual use of facilities for both emergency and routine operations. Second, balanced survivability among communications and the facilities which are supported by communications. accomplishment.

Third, focusing of responsibility to assure

OTP has completed reviews of those existing and proposed emergency communications systems which would provide warning and emergency information to the people of the United States under conditions of nuclear attack or natural disaster. These

include the Emergency Broadcast System, the proposed radio warning system of the Office of Civil Defense, the radio warning systems of the National Oceanic and Atmospheric Administration, and the proposed warning capability through the facilities of private broadcasting. These reviews have resulted in the following: (1) Changes in the Emergency Broadcast System, to improve its reliability. (2) Separation of the warning function from the Emergency Broadcast System. (3) The selection from among various alternatives of the most promising approach to a nationwide public warning system. (4) Identification of a need for design of an inexpensive home warning receiver, a project which the Office of Civil Defense is now working on. (5) Establishment of an Administration policy that legislation will not be sought requiring the inclusion of a warning receiver in every new radio or television set.

OTP is reviewing the policies and procedures under which critical private line services would be restored by the United States communications common carriers. Since no system of pre-set restoration priorities can be satisfactory for all emergency conditions, some mechanism must be developed to provide for flexible management of national resources when central control is possible. To this end, OTP has directed the preparation of a new plan for providing on-the-scene communications facilities and resource management capabilities to Federal field teams deployed in areas where a natural disaster has struck. This Office is also completing a study of the basic organizational framework for emergency communications management, and has prepared a communications annex to Federal emergency plans. During Fiscal Year 1973 OTP expects to complete a plan for effective Federal field organization for communications management under war emergency conditions.

OTP is concerned with the design features that should be incorporated in national communications facilities to increase their resistance to nuclear weapons effects. The principal nuclear effect now under study is the electromagnetic pulse from high altitude nuclear detonations. The Office is also working with the Départment of Defense to assure that measures taken to enhance the survivability of communications links are consistent with the survivability of the terminal points of the system.

A.

III. INTERNATIONAL COMMUNICATIONS

Communications Satellites

1. INTELSAT

Negotiation of Definitive Arrangements for INTELSAT was completed in 1971, and they are expected to take effect during 1972. They will change the U.S. role in INTELSAT, in that we will no longer have a controlling voice in its governing body, although we will have substantial continuing influence in decision-making; Comsat's assured tenure as the contract manager of INTELSAT will be limited to six years; and several new organs are created which involve direct government participation in the organization. These changes give added importance to OTP's obligation, in conjunction with the Department of State and the FCC, to advise Comsat as our Government's representative to INTELSAT.

The FCC is considering several applications for domestic satellite systems. Most propose service between the mainland and Hawaii, which is now provided by INTELSAT. The transition from INTELSAT services to domestic satellite services may have a significant impact on the Pacific INTELSAT region. Similarly, the Europeans are planning domestic and regional systems which could affect present INTELSAT services. OTP advice will be required as to these and other interfaces between INTELSAT and domestic and regional systems.

3. Specialized Satellite Communications Services

In this area, the issue is the institutional structure within which specialized services will evolve. OTP announced a policy in January, 1971, providing guidelines for the establishment of a new structure for international aeronautical satellite communication services.

Subsequently, FAA, DOT,

and the Department of State discussed this matter with the European countries (ESRO) and drafted a Memorandum of Understanding defining a joint international program. OTP reviewed the Memorandum, along with other Executive agencies, and prepared a recommendation which was accepted by the White House. OTP is currently engaged in coordinating the renegotiation of a joint international program.

With respect to maritime satellite services, the Coast Guard, the American Institute for Merchant Shipping, and the Maritime Commission consider that such services will be required well before the end of this decade. OTP will work with those organizations during Fiscal Year 1973 to insure that maritime requirements will be satisfied in the most efficient manner. OTP has already recommended that the aeronautical satellite program be designed to accommodate future maritime requirements.

4. Broadcast Satellites

Satellite technology is available to initiate direct broadcasts to the home, but the political problems involved in the use of broadcast media to cross national boundaries remain an obstacle to institution of this service. The UN is the principal forum in which this matter will be resolved, and the issue has already been joined. Obviously, proposals which would prohibit international satellite broadcasts whose content is not approved by the receiving state raise questions fundamental to our national principles. In conjunction with the Department of State, OTP will participate in the intergovernmental groups working in the broadcast satellite area.

B. International Industry Structure and Facilities

The U.S. international communications industry provides vital communications services for American business, the public, and national security organizations. The structure and performance of this industry have been under criticism from Congressional and other sources for many years, and this criticism has increased with the advent of the new technology of communication satellites and the creation of a quasi-governmental corporation (Comsat) to represent United States interests in the international use

of this technology. As a result of a highly complex and artificial industry structure (largely the creation of the Government itself), the traditional problems of rate and investment regulation

are particularly acute in the international field; and because of divergent incentives there are widely divergent views in the industry with respect to the best "mix" of international transmission facilities (i.e., cables and satellites). It thus becomes necessary for the FCC to rule on competing or alternative proposals for new facility construction, and to allocate the traffic among various facilities and carriers.

OTP has examined the present structure of the international communications industry to identify sources of inefficiency and duplication, as well as impediments to competition and rate reduction. Its recommendations will soon be forwarded to Senator Pastore in response to his request for Administration views in this area.

In May of 1971, OTP completed a comprehensive study of international transmission requirements and alternative facilities for the Atlantic Basin, including comparative cost and performance estimates. This was forwarded to the FCC, with policy recommendations concerning authorization criteria needed to avoid inefficient future investment in international transmission facilities. OTP is presently conducting a similar case study for the Pacific Basin. It has the same objective of establishing firm analytic procedures and investment criteria for use in the authorization process, so that the international carriers and their foreign counterparts can plan future investments with reasonable assurance. Implementation of policies concerning international communications will require continued effort in future years.

C. International Organization Activities

1. UNESCO

During 1972, UNESCO will convene several meetings to develop guidelines for use of communication satellites in the international distribution, and possible international broadOTP has worked casting, of radio and television programming. closely with the United States Patent Office, the Department of State, and the FCC, as well as various interested groups in the broadcasting industry, to establish and maintain a sound and consistent U.S. position on standards, codes of conduct, and intellectual property rights protection. Because of the expected developments within UNESCO and, possibly, within the World Intellectual Properties Organization, these activities are expected to continue throughout Fiscal 1973.

2. International Telecommunication Union

The International Telecommunication Union, a specialized agency of the United Nations with 141 member administrations, maintains and extends international cooperation for the improvement and rational use of telecommunications of all kinds. The Union uses world conferences of its members to review and update the international regulations needed to assure the smooth flow of global radio and telegraph communications. A principal function is the allocation of radio frequencies among the respective radio services (amateur, broadcasting, fixed, aeronautical mobile, communication satellites, etc.). During the past year, OTP provided guidance for U.S. participation in ITU activities. As a result of the combined effort of the Executive Branch, the FCC, and industry interests, U.S. objectives in accommodating space communication requirements were achieved at the World Administrative Radio Conference on Space Telecommunications.