COMSAT AND the US Government have agreed a joint proposal for restructuring Intelsat, the international telecommunications-satellite organisation. Intelsat is now a consortium owned by 136 governments, with Comsat as the US stakeholder.
Under the US proposal, a new affiliate company would be created to operate as a "fully commercial" and publicly financed corporation, which would be free to compete in new markets. The US Government plans to present its proposal for adoption at the next meeting of the partner governments in 1997.
The existing inter-governmental organisation would continue to run as a co-operative venture, providing basic public-network services, alongside the new commercial affiliate. Assets, including satellites, would be divided almost evenly between the two units. Comsat says that the new affiliate would operate without any of the "special obligations, privileges or immunities" now applied to Intelstat.
The plan is to sell off 80% of the new company to outside investors over three years, potentially including a stock-market flotation. Within a year, 60% of the stock would be sold, with a further 20% over the next two years. The remainder would stay in the hands of the existing Intelstat organisation. Funds raised would be used to reduce Intelsat's debt, improve services, and provide working capital.
Source: Flight International