Summary

SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE OF THE COMMITTEE ON ENERGY AND COMMERCE, HOUSE OF REPRESENTATIVES HOLDS HEARING ON THE FUTURE OF SATELLITE-BASED SERVICES

Source CONUS Archive
Record ID 263621
Story Slug SATELLITE INDUSTRY / OVERSIGHT HEARING PT 1 (1993)
Location WASHINGTON, DC
Format B-ROLL
Date 05/20/1993
Archive Time 6:54
TRT 25:34
Video Description PEOPLE ARRIVING FOR HEARING, STANLEY HUBBARD ARRIVING, COMMITTEE MEMBERS SPEAKING, PANEL MEMBERS INTRODUCED, BRUCE CROCKET (PRESIDENT-CEO COMSAT) OPENING STATEMENT
Description SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE OF THE COMMITTEE ON ENERGY AND COMMERCE, HOUSE OF REPRESENTATIVES HOLDS HEARING ON THE FUTURE OF SATELLITE-BASED SERVICES
Script (SUGGESTED TRANSCRIPT OF AUDIO) 04:23 Good morning Today, the subcommittee is holding an oversight hearing on the future of the satellite industry Since the beginning of this year, the subcommittee has spent numerous hours examining the role of the National Telecommunications info structure and how it can empower people, entertain them, and enable America to be more efficient in the area of healthcare, manufacturing, education and small business today, we explore how satellite delivered services and technologies contribute to the 05:00 Wireless component of that info structure, both nationally and internationally We will do this by looking at the transition to competitive international markets engendered by the removal of the final restrictions on satellite separate satellite systems to Intel set by January 1, 1997 we will highlight as well, the vast array of exciting new services and technologies for the American consumer that will be delivered through direct broadcast satellite technology and through mobile communication services offered by way of satellite in many ways, the satellites that will ring the heavens will bring benefits and changes here on Earth more profound than many of us can even imagine Linking the world by way of satellite television signals brought world events home for many people, from the lunar landing in 1969 to the fall of the Berlin Wall in 1989 and from today's almost instantaneous access to images and messages from around the world that has become part of our daily reality Satellites are an integral part of our telecommunications infrastructure In the near future, hundreds of channels could fill our living room television sets, from DBS technology and with some of the ideas from some of the companies represented here today, millions of people will avail themselves of mobile telephone services brought by satellite Remote areas of the country will benefit greatly from these developments, as will remote areas of the world Third World countries could skip a technological step in their development through the advent of new satellite based services The prospects for stringing fiber lines over the Andes or through rain drenched jungles in the third world is dim Satellite technology is the answer, and both at home and abroad, policy makers should promote a robust, competitive American satellite industry, so that the benefits of constructing the satellites, conducting the launches and providing the services and what will become an increasingly mobile Global Village flow to Americans in the form of new services and jobs According to the Department of Commerce, revenues attributed to commercial space activity totaled $5 billion in 1992 which was a 14% increase over 1991 07:31 today, there are roughly 150 07:34 commercial satellites in orbit around the globe, and scores more are planned Celsat Inc has estimated that its mobile satellite concept for cellular type service will create 200,000 07:47 jobs alone And Orion, which provides international satellite services through the use of very small aperture terminals equipment, notes in their testimony that this market is dominated by American manufacturers who produce more than 90% of the interactive VSATs in use today We certainly need to promote this industry because it presents a great opportunity to increase high tech exports But we thank all of you for your willingness to participate here today I'm very much looking forward to the testimony that completes my opening statement We now turn to recognize the Ranking Minority Member, the gentleman from Texas, Mr Fields, thank you, Mr Chairman, I want to commend you for holding this hearing today Under your leadership, this committee has held a series of hearings examining the information infrastructure of the future, and I think it's appropriate that we now look at the role of satellites in the context of an information superhighway, in addition to the wireline services we examined in our earlier hearings, satellite technology has now advanced to the stage where satellite based voice and high speed data services are being explored by a number of companies, including several of our witnesses here today, and I look forward to hearing Mr Hubbard's effort on his digital, broad broadcast satellite system and the possibilities it offers for providing real competition to cable I'll also look forward to testimony Mr Helles as he describes the potential of Motorola's project and Mr Ottens proposal for bringing satellite delivered mobile home phone messages, messaging, facts and data services Since the first communication satellite was launched 30 years ago, satellite communication has evolved to become the foundation of international commerce Satellite communication not only enables people around the world to communicate with each other, but provides people in remote areas with access to quality education, health care and culture because of a satellite technology, the world has truly become a global village And as you know, the international satellite communication market has been moving towards competition under the separate systems policy established 10:00 Under the Reagan Bush administrations As a result, private satellite systems such as Pan Am sat and Orion will be able to provide alternative communication services unmet by Intel sat COMSAT, such as private line and video services, although separate systems still face some restrictions, some of these appear to be loosening I look forward to the testimony of the witnesses from these two companies with respect to their experience in the international marketplace, as well as that of Mr Crockett on the pace towards competition, Mr Chairman, as you know, I have a personal interest in the educational applications of satellite technology In memory of my good friend Mickey Leland, I plan to shortly introduce legislation to explore how satellite systems could be coordinated to create a low cost telecommunications satellite system to provide the children in some of the most remote areas of Africa with fundamental educational programming And as you know, and I hope everyone in the audience knows, Mickey devoted his years in Congress to improving the quality of life for children in Africa, and I feel strongly that such a program would be a fitting legacy for his work On their behalf, Mr Chairman, again, I want to commend you for this hearing and all the hearings that we've had I think it's important for this committee to be aware of new technology, and certainly I appreciate this effort Thank you Gentlemen's time has expired Gentleman from Louisiana, Mr Chairman, I want to thank you for holding this hearing for the to give us a chance to again hear from some of the entrepreneurs and the leading edge companies and individuals and satellite technology You don't have to live in Tanzania or out of Mongolia to appreciate a satellite Living on a bayou is all you need to do without Louisiana 11:51 We learned a long time ago that alligators eat wires They can't eat those dishes, 11:58 and it's meant for folks and rural areas and Outback areas and way down to buy areas like like my own, an opportunity to take part in America's informational age, not only the education and and the entertainment features of it, but the important needs of direct communication In areas where, where sometimes you just isolate it completely 12:23 I don't like to do it, but I now carry my cellular phone in my period when I go hunting out the marshes of Louisiana, simply because it's smart to do I think it was during the 19 I was 12:35 doing the San Francisco Democratic Convention, mm, that my peer road went down Actual air boat went down and in the marshes of South Louisiana, and two other fellows and I were lost back there on a frogging expedition, 12:50 sunk alligators all around us 12:53 Without help, we're rescued till about 930 the next morning Not a good experience, and I always wondered if I'd had my cellular phone then how quickly we could have gotten out of that bad situation 13:05 This is important, not only as we said, to remote areas, but to the entire nation, as we develop incredible new job opportunities and incredible new opportunities for people to communicate one another and to learn from one another And so I welcome I'm busy reading all your opening statements and your testimony, and I'm again, excited every time I read it, every time I hear from you I'm excited about what's coming and what hopefully we help make come with good federal policy here in Washington So thanks for coming I look forward to your testimony And Mr Chairman, thanks for having us here Thank you, gentlemen, this time has expired Any other members seeking recognition for the purpose of making an opening statement, we'll now turn to our panel Let me briefly lay out who they are and what their companies represent for us here today, first, Mr Bruce Crockett, he is the president and CEO of COMSAT and last testified before this subcommittee in June of 1987 14:07 COMSAT is the US signatory to Intel sat the international telecommunications satellite organization that has 125 14:16 member countries Now, much has happened since Mr Crockett last appeared before us For instance, in 1991 14:23 US policy was modified to expand the scope of the US separate Satellite Systems policy regarding the types of services that could be offered by competitors to Mr Crockett, identifying a precise target date, January of 1997 for the phase out of all restrictions, including interconnecting with public switch networks Second, Mr Rene Anselmo, who grew up in Medford, Massachusetts, in my district, who triggered this latest policy review through a petition at the FCC in 1990 and again last 15:00 Last year, petitioned the FCC to reopen a proceeding to look into changes into the structure of COMSAT and its relationship as US signatory his company Pan Am sat operates one satellite currently and has plans for three more in the next two years, like Mr Anselmo, Mr Neil Bauer 15:21 of Orion would also like to compete with COMSAT, and Mr Bauer will also talk about how new US companies can export satellite technology Mr Stanley Hubbard has long dreamt of putting a direct broadcast satellite in orbit to compete with cable in providing video to the American consumer The first high powered DBS satellite will be launched this December, and service will begin in early 1994 15:52 so very soon, Americans will get the 18 inch satellite dish on the back patio between the petunias if they want MTV and Mr Hubbard is prepared to provide that service Mr David Otten, the CEO of celsat, has an idea for competing with cellular companies that combines a geostationary satellite and digital cellular technology to provide low cost coverage for the entire country Mr Robert berry from Lara has a wonderful defense conversion story to tell His company presently employs 28,000 people throughout the US In sales last year were 34 billion constellation of 48 low Earth orbit satellites in its global stop project, a joint venture with Qualcomm will compete in the mobile telecommunications area Mr Darrell Hollis from Motorola will present testimony about Motorola's Iridium project, a series of 77 satellites to provide telecommunications services worldwide So we have the future sitting in front of us These are our Magnificent Seven, and in the course of the day, we will have the future of satellite technology and its relationship with Americans and the world laid out So we'll begin with you, Mr Crockett, if we could, we'll ask each of you to please limit your opening statements to five minutes And I think there will be plenty of interest in the question and answer period in allowing you to elaborate on your opening points So whenever you are ready, Mr Crockett, please begin Great Thank you, and good morning You're right An awful lot has happened since I was up here six years ago, including all of my new found gray hair I also noticed that many of us look a little older, but I think that's to be expected Well, 17:59 Congressman, you'll be happy to know that my son goes to Tulane, and I'm an active contributor to the Louisiana economy 18:09 Fact he just got home You're buried in Louisiana You can remain active in politics, and if you 18:20 Edwin Edwards, you can come back from the dead again From the dead 18:25 again I am pleased to be here this morning to participate in the subcommittee's ongoing hearings on telecommunications infrastructure I'd like to provide the committee with two themes today First is the role of satellites in enhancing the telecommunications infrastructure will be significant And second, as concerns our national interest, we should think of these enhancements as a global issue Satellite communications were proved to be an essential component of the information super highway in the United States and around the globe They will be particularly important in addressing the following needs, to reach remote and inaccessible areas, to provide connectivity in areas where the terrestrial infrastructure has been damaged, to provide cost effective broadcast, multi point service 19:05 and to provide international connectivity anywhere, anytime in the world American businesses will never fully realize their overseas market potential until a reliable, efficient and modern communication system is in place throughout the nations of the world We have a number of divisions that are working or expanding and improving the global telecommunications infrastructure Telecommunications infrastructure, let me briefly review their missions with you COMSAT world systems or CWS access, the US signatory to Intelsat, the International Telecommunications satellite organization In its capacity, we serve as the forceful advocate for the national policy interests of the US government and the American business interests For example, 71% of all Intelsat and Inmarsat satellite contracts have gone to US companies, along with 58% of the launches for a total of $44 billion Intel sat currently has 125 19:51 member nations, and utilizing 19 satellites, offers communication service to over 170 countries, principalities and territories as six 20:00 Inventory COMSAT is the only US organization that invests in Intel set as such orders for service by Intel set by US customers are handled by COMSAT 20:09 Over the years, scholars have been debating whether the 1962 satellite Act should have been written differently Almost always, the question revolves around whether the other options of ownership under consideration might have been better 20:21 All I know is that the result has been first rate, totally reliable global telecommunications satellite system of exactly the type that was envisioned by the framers of the legislation The biggest beneficiaries have been the telecommunications users COMSATS Rates have continuously and dramatically fallen since we commenced service Consider that monthly charges for voice grade circuits on a per channel basis have fallen from $4,200 20:44 in 1965 20:46 to as low as $75 today, and that's after taking into account inflation The current international telecommunications marketplace is significantly different than in the past CWS today faces intense competition from undersea fiber optic cables, as well as increasing competition from separate satellite systems 21:06 There have been many changes at Intelsat as well The greatest change changes have been the result of the US leadership within the organization, both at the signatory and at the party level There have been a shift There's been a shift worldwide, towards more private ownership of Intelsat, following the model of concept in a more business like customer orientation, also, there has been an acceptance of the importance and salutary role of competition has to play in this field As you know, the final restrictions on separate satellite systems are being removed, and we are confident that they will be gone in advance of the deadline of January 1, 1997 we work within the system We have worked within the system and got the consensus we need to achieve the goals of increased competition in the provision of international communication services, comps, international ventures, or Civ, provides telecommunication services overseas in nations where governments have made a commitment to develop their communications, but where the existing infrastructure is limited, most often, we provide wide band and narrow band digital highways for multinationals and other large businesses to and from these nations In these ventures, we are co operating with the host nation by providing capital to fund research, retooling, growth and access to new telecommunications technologies, COMSAT Technology Services, or CTS, provides satellite systems integration, networks and applications, communications products and specialized services that help to expand telecommunications infrastructure These services include earth station reconstruction, private military and broadcast distribution networks and rural telephony, VSATs, or very small aperture antennas CTS is competing with some of the largest corporations in the world, like Hughes, GTE, NEC and Thompson, CF, CF, CSF, for many of these same markets, I've saved our most rapidly growing business for last Tom sat mobile communications, or CMC Its beginnings are found in the launch of 3l band satellites, the marisat satellites in 1976 for commercial and government maritime communications needs From this venture came the signing of the Inmarsat agreements that would make the system truly global Today, Inmarsat membership stands at 67 nations with COMSAT in the role of us signatory for its first 15 years in mercant experienced steady, if not spectacular growth The Division initially operating as a maritime provider, later included aeronautical and land mobile services Over the past three years, the entire direction and focus of the system has changed thanks to the development of revolutionary digital technology 23:30 and the launch of a new generation of satellites with greatly enhanced capacity This allowed us to dramatically bring down the size and cost of communications devices, while at the same time greatly extending their range and capabilities In a sense, the world first took notice of these capabilities when CNN correspondents used our system to broadcast from Baghdad during the Persian Gulf War to demonstrate the impact of satellite communications on the telecommunications infrastructure we are deploying, displaying several examples of transportable terminals on my right against the far wall, transportable No longer means room size antennas mounted on trailers, but briefcase size terminals easily hand carried anywhere in the world As an example, this seeming briefcase next to me is, in fact, not a briefcase, but a suitcase terminal 24:17 and available today, the mobility offered by these terminals permits information to be moved by individual By individuals from remote areas, simply and reliable, reliably operating the terminals is as easy as making an ordinary phone call from your home This moves this moves the technology into the hands of consumers The terminals, all manufactured by in the US, allows satellites to provide reliable communications to highly mobile markets An important feature of these systems is availability This technology is available today The market for these small, less complex and less costly satellite terminals is just exploding The US, navy, disaster relief teams, major broadcasters and UN peacekeeping forces are just some of the big users right now, driven by the move from and 25:00 Log to digital communications This market is changing from a commercial to a consumer orientation Our second if you could summarize, the 25:09 industry has a large number of competitors going after small niche markets, high frequency radio, high seas communications, cellular radio, coastal waterways are primary competitors Additional competitors come from within the system itself There is also growing competition from regional satellite systems Finally, the potential for asynchronous satellites, as well as other possible technology advances to provide new and enhanced communication services, is just now emerging I TAG:
Not everything listed in the CONUS Archive is necessarily licensable Reporter sound/image is not licensable

Keywords

SSS
STANLEY STUB HUBBARD
}