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					89th 'ingress, 2d Session                         House Document No. 400




   REPORT ON ACTIVITIES AND ACCOMPLISHMENTS
    UNDER THE COMMUNICATIONS SATELLITE ACT




                            MESSAGE
                                  FROM

 THE PRESIDENT OE THE UNITED STATES
                              TRANSMITTING

          REPORT ON ACTIVITIES AND ACCOMPLISHMENTS
             UNDER THE COMMUNICATIONS SATELLITE
                         ACT OF 19G2




     MARCH 3,19GG.—Referred to the Committee on Interstate and Foreign
       Commerce nnd ordered to bo printed, with accompanying papers


                      U.S. GOVERNMENT PRINTING OFFICE
     60-011                  WASHINGTON : 106G




                                           2441
                  LETTER OF TRANSMITTAL


 To the Congress of the United States:
   A new communications era has begun.
   The first commercial satellite is in orbit over the Atlantic Ocean,
in an unchanging location linking millions of people, thousands of
miles apart, in reliable telecommunications between North America
and Europe.
   Tha flights of our astronauts, the Olympic games, international
policy discussion-, and other occasions of brotui interest and major
importance hav«j been transmitted throughout the world by way of
communications satellites. Today information is made available for
improving health, warning against major storms, and increasing
agricultural output.
   This historic space bridge will bo enlarged. Satellites scheduled to
be launched later this year are to span the Pacific and expand coverage
over the Atlantic.
   The commercial satellite service will advance to provide this new
mid unique telecommunications capability to other areas of the world.
   In the foreseeable future, entire newspapers and service from the
world's greatest libraries will bo able to enter the homes of all those
eager for knowledge.
   This dramatic effort follows from the Communications Satellite
Act of 1962, which called for the establishment of a worldwide com-
mercial communications system as soon as practicable.
   With the Communications Satellite Corp. as the U.S. representative
designated by the act, an international consortium of participants in
 this global venture continues to grow. Forty-eight countries are
 now engaged in this joint venture, with the corporation acting as
 manager on behalf of all participants under the international
agreements.
    In the forward ax-' eincnt of the communications satellite program,
all agencies of the- Government and the committees of the Congress
 ha\o assisted in carrying out the objectives and purposes of the act.
    Under section 404(a) of the act, T am transmitting to the Congress
a report on this national program, which is successfully advancing
 communications satellite technology to the benefit of tno people of
 the United States and the world.
                                               LYNDON B. JOHNSON*.
   THE WHITE HOUSE, March 3, I960.
                                                                ni




                                244*
                                CONTENTS

                                                                                        tut
Letter of transmittal                                           —          .,...,,.      m
Introduction........                                                                      1
Progress In establishing a. commercial communications satellite capability                2
International aspect*                                    ...... —. . , , . .             4
     Developments in Iho United Nations)                 ,                                5
Government activities                                               - - - —'              5
     National communications system (N'CS) . .. ..                      ,                 5
     Xntlonnl Aeronautic* nmi Space Administration (NASA)                 . . . . .      G
          Support of Coiiwnt launched                       ,..,,.....                   6
          Tccftiiiciti advisory twi'vitiea.            ,.                                G
          Use of the coimniTcliI yiitein                      ...             ......     G
          Itwenrcli and! <levplo,»ncnt—                               ,                   7
     Feilcrnl Comrnunicatioiu ComuiL-wlon (FCO-...                          •            '*
          iltgular commercial service               —       ..,                          7
          Karth station Authorizations,.                            .....,,              7
          Aiitliorhation for additional satellite service.        ,        ,,,...,        8
          Authorljifl users        ,            ...,.....,.„..-. .                       8
          Procurement...             . .-..,..,,,.*.,.............-                      8
          Frequency allocation..                                               .....     S
          Other matters........             .„ ,...                                 ,    8
     lixectitive OITic« of the I'n-sidciit           ,            .....                   S
Summary ntul conciiutoiut         ., .                                        . . . .     0
                                                                                 v




                                            2443
REPQRT ON ACTIVITIES AND ACCOMPLISHMENTS UNDER THE
  COMMUNICATIONS SATELLITE ACT OF 1962 (PUBLIC LAW
  87-624)

     Communications arc lifelines of society. Dramatic improvements
 in international cunnniinictitiuiis capability \vill have profound effects
 in hmimii relationship and consequent economic and political rela-
 tionship.
     Dynamic development <-f communications and transportation tire
 fundamental for the achievement of the aims of tho Great Society for
 the people of our land and other lands.
     The Communications Satellite A %t of 19G2 stated tho policy and
 purpose for a dynamic communications development. It provided
 that the now atid expanded .satellite telecommunication services arc to
 ho made available as promptly as possih'- -md tire to bo extended to
 provide global coverage at tho earliest practicable dtito.
     It has been the objective of tho United States to fulfill this purpose
 a^ rapidly and practically as possible. This continues to bo our
objective. In conjunction and cooperation with other countries a
system of .satellite communications is being established. A great
advance in world communications is taking place.
     The United State* intends to do its full part to develop the benefits
of this new technology. A now communications cm has opened and
with it 11 ncu potc.iual for cio»or relationship between peoples. There
i.>> a neu potential foi telccoiiimunication, fur information exchange,
for education.
     The (jiit-standing characteristic of siitcllite communication is versa-
tility. Throu »h tho Mitclli'o go voice, messages, television, facsimile,
and data. The .satellite technology adds to tho conventional tele-
cumiimtiicatinn.s pathways add it opens nou pathways for airpl-mes in
flight, for .sbip> at .sen, and educational, tmsiucss, ne\vs, and entertain
ment contact* betuoen peoples in geographically farf'.'ingJuncK
     Thus, tho skyway has been opened for new atid imaginative, yet,
practical efforts for utilization of this now tool for constructive
assistance to many people in many places.
     The now communications cm may bo said to hiivc opened on ir.ril <»,
 1905, when the world's first cuinmercial conmuinications satellite
the Karly Bird was launched. This Unit satellite of a gbbal com-
mercial communications .system was maneuvered uceumtciy into
synchronous orbit 22.UOO miles over the Atlantic.
     On June 2S, commercial .service wa> intradticcd \vitb a telophoiu-
hookup viu M\tcllhc between the White House und government leaders
iit Kurope.
     Karly Bird ha-s. alrcadv dciuotu<tnited il.s capability for a variety of
telecommunications task*, telephone, writtcti messape, data, and
television.
                                                                      l
2    ACTIVITIES UNDER THK COMMUNICATION'S SATELLITE ACT

   With the space trail GO successfully blitzed, the commercial communi-
cations satellite system is now in process of expansion to the goal of
a global capability
   As this historic development, takes place, it is appropriate and
timely to reiterate the policy of the United States:
        It is the policy of the United States to support development
     of a single global commercial communications satellite system.
        The intent of the Unitcd^States is to advance space technology
     tor the service of all mankind arid to promote its use in support
     of peace and understanding.
        The U.S. Government will use global commercial^ communica-
     tions facilities for general governmental communications purposes
     wherever commercial circuits of the t\po and finality needed to
     meet Government requirements can bo made available on a
     timely basis and in accordance with applicable tariff <»r f < in the
     abponco of Federal Communications Commission jurisdiction, at
     reasonable cost.
        The U.S. Government may establish and maintain .separate
     satellite communications facilities including surface terminals to
     meet its unique and vital national security needs which cannot
     bo nict by commercial facilities. The capacity of tlie.se separate
     facilities shall at all times be limited to that c^untial to meet .Midi
     unique needs.
    PlUXillKSS IN KSTAULISIll.VO A Co.MMEItflAL ('OMMl'Mtt T!UV&
                         SATELLITE CAPAIIILITV
   Tito International Telecommunication:) Satellite Consortium (Intel-
sat) was created in August 10IM. It now includes -IS countries ^nd
their communications entities. Other countries arc being encouraged
to join. Hut those ^who do not, mny, with appropriate ground facili-
ties, have iiiiiidiscriniiitatory access to the system and their own
window to tho world.
   The Communications Satellite Corp., under the law, is the desig-
nated representative of tho United States in Intelsat. Under the
international agreements, it is the manager of tho space segment for
all participants. During lOlifi it has achiuvcd the following significant
developments:
         Commercial service began via Early Hird, tho world's first
     '•oiimietvi.il comnmnicntions satellite.
         \Vurk moved forward toward tho launch of now satellites to
      o.vpitnd the commercial system.
         Construction of two now earth slut ions in tin* United States
      began.
         Contract negotiations pirn-coded fur a further advanced sys-
      tem fur glcibal satellite communications. Studies were initiated
     of nit even more advanced system to provide multipurpose satel-
      lites each with 20 times the cape : m •f Karly Bird, for television
      transmission, airphine communi                'id other forms of tele-
     communications.
         Commercial service lias been prut... a during regular hours of
      Early Bird operation with v?ry high reliability. By tho end of
      the year. 75 of tho satellite circuits wore being leased for telephone
      or message service by U.S. communications common carriers
      and telecommunication entities in Canada and Europe.


                                   2-145
     ACTIVITIES PVDER THE COMMUNICATIONS SATELLITE ACT                 3

         Among the memorable television programs transmitted via
       Enrly Bird were: 6 hours o! Pope PuuPs visit to the United
       Nations televised from North America to Europe; and the splash-
       down of the Gemini VI and VII spacecraft and the recovery of
       tho astronauts televk.d from the mid-Atlantic to the United
       States, Canada, and Europe.
     As Early Bird demonstrated its ^•er'atility and reliability, new
commercial satellites were being Ljilt to \ rovidc tho first satellite sen
ice in tho Pacific and additional itlantic capability. This extended
commercial system, us approved by the Interim Communication*
Satellite Committee of the international consortium, will provide sen •
ice required by the National Aeronautics and Space Amninistrutun
(NASA) in connection with the Apollo program and additional capa-
bility for other Government und commercial users.
     The NASA communication requirement to be met by lalo 1966
include^ transmissions from ships in the Atlantic, Pacific, and Indian
Oceans and from stations in Australia, the Canary Islands, and
Ascension Island to the United States. Tho stations in Australia,
the ('unary Islands, and Ascension Island will bo provided and
operated by the authorities in Australia, Spain, and the United
Kingdom. Communication* Satellite Corp. stations in tho United
States will bo an integral part of tho system.
     EurtJi stations tiro bejng constructed at Browster Flat in the
State of Washington and at Paumalu on Oahu Island, Hawaii. The
station at Andover, Maine, leased by tho corporation from American
Telephone &. Telegraph Co., continues to bo used. Initfally, three
transportable earth stations will bo placed at tho three sites, aug-
mented by permanent S5-fout-diameter antennas. These permanent
antennas arc to bo in operation by 1967, but service is targeted to
begin with tho transportable antennas in I96C.
     As the program progresses in I960, tw-j satellites, larger and more
powerful than Early Bird, arc to bo put in stationary orbit above tho
equator. Tho satellite capability will provide service from tho
continental United States to Hawaii and other Pacific areas and
thereafter to taitiii America, Africa, southeast Asia, and tho Middle
Eust us sarth stations aro constructed.
     In October, NASA•• -uctiiifr in behalf of NTCS—requested tho
corporation to proceed immediately with arrangements to carry out
the program under an interim i-uinnritmcnt so work could go forward
on the system tu meet communications needs for tho Apollo program.
Foreign governments and communication entities who aro par-
ticipating with the corporation in the iiitcnwtionul communication
system took action to curry out tho program.
  " At tho same time, the corporation, yi conjunction with its con-
sortium partners undertook studies of now communication uses
which tho satellite system can prov»de.
     The corporation engaged in n number of research and development
 projects on \ariutis aspects of communications satellite technology.
  i'he projects include both space segment elements and impruvcinonts
 in earth station technology and development, to increase efficiency
 iiml improve performance of the interrelated system. Tho projects
 iiichtdc detailed studies of satellite power, supply systems, control
systems, launch vehicle requirements, telemetry systems, launch
 injection and orbit calculations, and :i continuing study of multiple
 access problems and techniques.
4    ACTIVITIES CNDER TKE COMMUMCATIOXS SATELLITE ACT

  Under section 404 (b) of the ComnuinicnUons Satellite Act o.f 1962,
Congress bus provided that 'ho corporation sliull transmit annually
to tlie President and the Congress '\ comprehensive and del.ailcd
report of its operations, activities, and accomplishments under the net.
                      LVTKKN'ATn.VAL    ASJ'KCTS

   It is the policy of the United States to encourage participation by
additional countries in the emerging satellite system. Daring the
year, the corporation and the Department of State were active in
collaboration toward this end. Also during the year, the interna-
tional consortium was formalized by name. International Telecom-
munications Satellite Consortium (Intelsat).
   The Interim Communications Satellite Committee, the represen-
tative body of the consortium, increased in membership to 15. Com-
mittee membership eligibility is based on a minimum of Uj-pcrcent
participation in the space system. However, countries can join
together to achieve this percentage eligibility figure.
   As of December SI, 1904, there wore 19 countries who were parties
tn the intergovernmental agreement and to tlio special agreement
among designated representatives. During 1963, 29 additional
countries joined bringing total membership to 48.
   Members of the consortium arc: Algeria, Argentina, Australia,
Austria, Belgium, Brazil, Canada, Ctylon, Chilo, Republic of China,
Colombia, Denmark, Ethiopia, France, Federal Republic «if Germany,
Greece, India, Indonesia, Iraq, Ireland, Israel, Italv, Japan, Jordan,
 Kuwait, Lebanon, Libya, Monaco, the Netherlands, Now Zealand,
Nigeria, Norway, Pakistan, Portugal, Saudi Arabia, South Africa,
Spain, Sudan, Sweden, Switzerland, Syria, Tunisia, United Arab
 Republic, United Kingdom, United States, Vatican City, Venezuela,
and Yemen.
   At the end of the year, the following were members of the interim
committee: Argentina, Australia, Brazil, Canada, Franco (also
represents Momico>, Federal Republic of Germany, Italy (also repre-
sents Vatican City), Japan, Switzerland, the United Kingdom (also
represents Ireland), and the United States.
   Countries which have combined for committee representation arc.
Belgium and Netherlands; Sweden, Denmark, and Norway, Spain and
Portugal Algeria will represent tho 12 Arab country members of the
consortium.
   A supplementary agreement on nrbUrntiur. »vn.i opened for signature
in Washington, D.C., on June 4, 101)5. The following.'{? participant*
signed the ^agreement which is pursuant to a provision of article 14
of the special agreement:
      Argentina; Australia; Austria; Belgium; Canada; Ceylon;
      Republic of China; Colombia; Denmark; Ethiopia; France;
      Federal Republic of Germany; Greece; India; Indonesia;
      Iraq; Ireland; Israel; Italy; Japan; Jordan; Lebanon; Libya;
      the Netherlands; New Zealand: Norway; Pakistan; Portugal;
     Saudi Arabia; South Africa; Spai.».; Sweden; Switzerland;
      United Kingdom; United States; Vatican City and Yemen.
      This agreement elites into effect when all parties i«» the
      intergovernmental agreement have signed it.


                          2447
     ACTIVITIES UNDER THE COMMUNICATIONS SATELLITE ACT                 O

   The first commercial communications satellite launched April 0 over
the Atlantic was subjected to u period of testing {prior to placing of
the satellite into commercial service. The Early Bird tests and serv-
ices proved the acceptability and the pr unisc of this mode of com-
munications, providing a high degree of assurance that the objective
of the global coverage can be achieved and that the system will be
of immenxi benefit to mankind in the coming years.
   Technological improvement in new satellites and greater capacity
will enable greater access by earth station^ and will accelerate planning
in various countries for earth station facilities.
   Earth stations arc now in being in the United Kingdom, France,
the Federal Republic of Germany, Italy, and the United States.
Canada and Japan are in the finni stages of completing their stations.
Spain and India are proceeding with the establishment of earth sta-
tions. Others are planned in Australia and several countries of Latin
America, Africa, arid east Asia.
Developments in the United Nations
   The U.N. Committee on the Peaceful Uses of Outer Space again
discussed the matter of communications via satellites at its meeting
in October. Some objections were mado by Soviet bloc delegates to
the course being pursued by the member countries of the international
consortium.
   The International Radio Consultative Committee (CCIR) and the
International Telegraph and Telephone Consultative Committee
(CC1TT), which are permanent organs of the International Tele-
communication Union (ITU), were active in studying the technical
aspects of satellite communications. The C'CIR, for example, worked
on recommendations regarding criteria fur frequency sharing between
satellite and terrestrial microwave radio relay systems, and impor-
tant question involvii.g the future operations of tho communications
satellite system.
   The joint CCITT/CCIR Plan Committee continued its work on the
development of global communication* and network planning and
the melding of the communication;) satellite mode into such plans.
Tlies-) international activities arc an essential ingredient to tiie
attainment of standards of operations to facilitate the interchange
of communications bctweci; the nations of tho world.
  OTHKH GOVKKNMKXT ACTWTIKS IN SLTPOIIT OK THK PKOGKAM
National communications mjstein (NC'S)
   Between June 15 imd 19, Early Bird was tested to determine its
ability to transmit satisfactorily the telecommunication modes used
by the national communications system, including voice, vocoded
voice, and data at various speeds. The tests were satisfactory.
   At the National Aeronautics and Space Administration's request,
negotiations were started on July 2G toward obtaining service from
the Communications Satellite Corp. Tho service would provide
voice and data telecommunications from stations ,:n the Canary
Islands, Ascension Island, and Australia, and from three range ships
to points of entry into tho NASA communications network. This
service is in support of the Apollo program and U needed by late 1966.
By tho end of tho year, negotiations were well along toward an agree-
ment and work had begun.


                                      2448
 6     ACTIVITIES UNDER THE COMMUNICATIONS SATELLITE ACT

      To provide the ser<-ice two synchronous satellites will be launched,
 one ench over the Atlantic and Pacific Oceans. This will make com-
 mercial communications satellite service atailable fur the first time
 in the Pacific area and provide additional capability in the Atlantic
 area.
      The needs of NCS, which can be satisfied by commercial communi-
 cations satellites, are being identified and will be carried by the com-
 mercial system. Those considered unique and vital to national
 security are being included in the planning for the defense communi-
 cations satellite program.
 National Aeronautics and Space Administration (NASA)
           Support oj Comsat launches
      For tho Early Bird, NASA and the Communications Satellite Corp.
 Hgncd a formal agreement dated December 17, 1904, covering tho
 launching and associated sen ices to bo performed by NASA. Under
 tho agreement, NASA procured and tested tho launch vehicle,
 man-i^ed integration of tho spacecraft with the launch vehicle,
 accomplished the launch, and provided postlaunch hacking and
Tommunications service.
      The Early Bird launch took place on April 6, with complete success.
 Tho corporation paid NASA approximately S3.3 million, tho esti-
 mated cost of tho launch. Based on actual COM.-,, tho corporation
 will make a final settlement by April 6, 1967.
      Additional launchings arc planned in 10(!0. At least two of these
 will be launchings of new satellites to bo u»ed to augment tlio com-
 morcifil system.
           Technical advisory activities
      N'A^A furnished technical advico and comments uii several appli-
 <••• lions submitted tu tho Federal Communications Commission by
 tho corporation in connection with tho Early Bird program, tho
 establishment uf additional earth »ti tioiis in tho Status uf Washington
 and Hawaii, and tho construction of tho now satellite* and trans-
 portable earth stations.
      Technical advico also was provided tu the Department of State.
  N'ASA representatives participated in tho interim mooting of tho
 C''IH of tht) 1'IV ftt Monte Carlo in February and Mnrcli ancNn
 preparations for the Xlth Plenary Assembly of the ('(.'III being
 held in Oslo in Juno 19110.
      NASA n'mtjiuiod to participate in 'he working group headed by
 tho FCC which is monitoring tests to evaluate u.-or react inn to time
 delay and cchu effect* in a >\nr|irn:ioti.>> altitude communications
 satellite system.
           I 'se »J the commercial system
      A.s referenced oarlior, NASA plan;, to titili/o tho commercial com-
  munications Mitelli'e .«y.steiu to Mippui't tho Apollo program and to
  impn ie the capacity tuid reliability »f i-i.iniiiuniuiti<«ii.> cuimecting
  in->tnuiiontittiii!i ships and certain tnnking .statiuii> w i t h tlio I'nitod
 States.
      This service i* needed because the magnitude and complexity uf tho
  Apolln iii!»i<'ii* make it ncc c-.v-,tir\ tu \u.->t c-oinjileto rcs|)niisil)dit,\ for
  roal-tiiiio mission direction w i t h a centrally located director. Tlio
  i|nantit\ and ic>litibi!it_\ >if turrestrial c-Hiunuiiicatiuiis tu certain track-
     ACTIVITIES UNDER THE COMMUNICATIONS SATELLITE ACT                 7

ing stations and instrumentation ships is not adequate for this typo
of mission control. It can bo done only through communications
satellite support.
         Research and development
   During 1965 NASA continued its, broad-based research .uid dovelop-
r.icnt program on component* and techniques for advancing the state
of the art and in advancing the use of space technology in tho field of
communications. This program will be carried out using a series of
satellites called the applications technology satellites (ATS). ATS
experiments include improxed methods for multiple access, passive
attitude stabilization techniques, counter-rotating (despun) antennas,
and ground to aircraft communications.
   Studies continued toward development of the technology required
to employ communications satellites for navigation, traffic control,
mid communications for aircruft and ships, for other communications
services involving simultaneous communications to largo numbers of
small, transportable earth stations, and for sound and television
broadcasting. Studies are continuing on propagation phenomena
influencing the feasibility of Charing of frequencies between satellite
and terrestrial services.
federal Communications Commission (FCC)
         Regular commercial service
   The Commission authorized the Communications Satellite Corp.
to launch Early Bird on April 6 and to provide regular service com-
mencing on Juno 27. Commercial voice service between tho United
States and Europe began on June 28. Tariffs coveting commercial
television »er\ ice became effcctiv o on July 26. When the Commission
permitted the corporation's tariff covering thesft services to go into
effect, it ordered an inquiry into the reasonableness of tho tariff and
that all revenues received from the ftirnishii.f' of satellite communica-
tions services be placed in a "deferred credit" account, subject to
appropriate recluasificatiim or disposition by the Commission upon
conclusion of tho investigation. This action WHS taken in order to
facilitate regulatory examination of the corporation's tariff and to
enable the ultimate disposition of revenues received in tho manner
which would be fair to tho corporation's customer* and stockholders
and consistent with the public interest.
         Earth station authorisations
   The Commission has authori/.ed tho construction and operation by
the Communication- Satellite Corp. of two earth stations, one locatod
in tho State of Washington and one in Hawaii. An application for
the establishment of a third earth station located at Andover, Maine,
presently owned by the American Telephone & Telegraph Co. and
leased by the corporation for operation in the Early Bird program,
is pending before the Commission, subject to the completion of nego-
tiations between the corporation and A.T. tfc T. for tho acquisition of
the station. The corporation's earth statiu:. applications wore filed
                                                  upplii
                         aitthuri/ations were granted in accordance with
ittul the Commission's aitthori/.ationswere granted in accordance with
               ilicv                               which
an interim policy adapted by the Commission whic established tho
corporation s right to construct, own, and operate for a period of 2
years, after licensing, the initial three earth stations, including asso-
ciated communications links and interface centers. This interim



                                    2450
8    ACTIVITIES UNDER THE COMMUNICATION'S SATELLITE ACT

          as een c a e n g e y .. c o m m u n c a o n s com
puicy has been challenged by U.S. communications common carriers
which have petitioned the FCC to reconsider tlie policy.
   '['he Commission also a>tthuri/.cd the corporation to construct tliree
transportable earth stations.
         Authorization for additional satellite service
   The Commission aiilhori/.ed the construction of a satellite for use if
Early Bird fails. Authorization has also been granted for the con-
struction uf fuiir additional satellites tu be used tu provide the first
commercial satellite sen i «.• »,. the Pacific and supplemental service in
the Atlantic.
         Authorized users
    The Satellite Act authorizes the Communication:! Satellite Corp.
tu provide sen ice tu authorise cumnmnicatiuns common carriers uiul
to other authorized users, including the U.S. Government. The
Commission has authorized the American Telephone & Telegraph
Co., ITT World Communications, Inc., RCA Communications, Inc.,
and Western Union International tu obtain such satellite facilities
and services from the corporation.
    In June, the Commission adopted a notice uf iwiuiry to obtain the
views of interested parties on the question uf v\hu, beside cuinmnnica-
tiuiis common curriers, shuidd be permitted tu obtain service directly
from tlie corporation. Twenty -se\ en interested parties, in addition
to Ui4 Communications Satellite Corp., filed comments. Included
among the parties arc communications common turners, other business
organizations, and thfl U.S. Government.
         Procurement
    During 1905, the Cuimnissiuii reviewed the procurement procedure.-*
of the Communications Satellite Corp. in awarding nine prime con-
tracts with a total value of approximately $10 million. In addition,
it reviewed a large number of subcontracts awarded by the corpora-
tinn's prime contractors. Approximately 165 U.S. firm*, including
small business concerns, and 74 foreign firms were invited by the
corporation to submit bids on the prime contracts.
         Frequency allocation
    In order to conform to the International Radio Regulations, the
Commission amended its rules relating to allocation uf frequency
bands fur u»e bv the communication satellite service, after receiving
public comment^ and after appropriate intcnigciiiy coordination.
         Other matters
    The Commission has authorized developmental operations ami 1&>U
for aircraft communications by means uf satellites and is wu.-king
closely with Government agencies and industry in carrying uul these
tests.
    The Commission is working v i t h industry and other Government
agencies tu establish new procedures to facilitate the development of
new equipment and technique* fi.r improving satellite communication-,.
Executive Office of the President
    On January 4, the President issued K.u-riitivo Order 11191 for the
  urpose of further delineating responsibilities within the executive
E ranch and providing for the currying out uf certain provisions of the
Communications Satellite Act of 1902.
      ACTIVITIES I'NDEH THE COMMUNICATIONS SATELLITE ACT                  9

   The Executive order provides that the Director of Telecommunica-
tions Management shall generally a.1 vise and assist the President in
connection with trie functions conferred upon the President by the
provisions of section 201 (a) of the act and that he {•hall aid in planning
and development, and in fostering execution of a national program for
the establishment and operation as cxpeditiuiialy as possible, of a
<-ommerrinl communications satellite system, and that in addition he
shall—
        Conduct a contintioua review of all phases of the development
     and operation of such a system, including the activities of the
     Communications Satellite Corp.
        Coordinate the activities of governmental agencies with re-
     sponsibilities in the field of telecommunications, so as to insure
      that there is full and effective compliance at all times with the
     policies set forth in the net.
         Make recommendations to the President and others, as appro-
      priate, with respect to all steps necessary to insure the availability
     and appropriate utilization of the communications satellite
     system for general Government purposes in consonance with
     section 201(a)(G) of thoact.
         Help attain coordinated and efficient 11*0 of the electromagnetic
      spectrum and the technical compatibility of tho communications
      satellite system with existing cuinmuiiicatiuns facilities both in
      tho United States and abroad.
         Prepare, for consideration by tho President, such Presidential
      action documents as may bo appropriate under section 201 (a)
      of tho Act, make necessary recommendations to tho President in
      connection therewith, and keep the President currently informed
      with respect to the carrying out of the act.
        Servo as tho chief point of liaison between tho President and
      Communications Satellite Corp.
   The order also provides that the Secretary of State shall cxorci.se
 the supervision provided for in section 201(a)(o) of tho act and, in
consonance w i t h the act, shall further timely arrangements fur foreign
participation in the establishment and use of a communications satel-
lite system, and that tho Secretary shall have direction of tho foreign
relations if the Tinted States with respect to the act, including all
 negotiations by tho United States with foreign governments or with
international bodies in connection with tho act.
   During the year tho Director of Telecommunications Management
 has performed the coordinating and advisory functions as required
 by the order, conducted policy studies, and initiated studios having
 long-range implications toward tho future development of satellite
 communication applications.
                      SOIMAUV' AND CONCLUSIONS
   The satellite communications era is underway. New commercial
cnmimuiiciitiuiii siilallite» are programed for launch durii-'j; 19RO as
service i* t" be extended over the Pacific Ocean in addition to expanded
service over tl'c Atlantic Ocean. Despite tho many intricacies _to bo
overcome and problems to be resolved, both nationally and inter-
nationally, progress toward a global commercial system is being
achieved' Possibilities are t.nerging fur extending services to new

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10   ACTIVITIES UNDER THE COMMUNICATIONS SATELLITE ACT

uses and new areas. Imaginative and practical opportunities present
themselves for information and educational exchange.
   The next 2 year will present challenges, opportunities, and com-
plexities in the field of international telecummunicatiuns requiring
clear determination of fundamental national policies and processes
in the coiViintircicadnns field.
   The impact of the interim international arrangements and opera-
tional forms and processes and the ramifications of cunsortium
participation arc new elements requiring priority attention and
assessment.
   Implementation of the Communications Satellite Act of 1962 is
proceeding rapidly. No new legislation is being recommended at this
time.
                                O




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