To: macker who wrote (4099 ) 5/7/1998 7:02:00 PM From: RocketMan Read Replies (1) | Respond to of 50264
Semi-OT: Deregulation hits the communications satellite business. As we have said before, DGIV is taking advantage of the deregulation that we are seeing in international telephony. As was the case with the AT&T breakup here in the 80's, giving new players a chance, the international market is breaking up national telcos. This, combined with newer technology involving VoIP over existing internet infrastructure and leased lines, places DGIV at ground zero of the coming telecommunications revolution. We are now starting to see cracks in the last remaining bastion of long-distance backbone monopolies: a breakup of the Comsat consortium of geosynchronous communications satellites. This is yet another opportunity for DGIV to find niches with what will be small upstart stellite-based telcoms. Although international traties will still have to govern satellite spacing (there are only so many orbital slots up there), new players can enter the scene to bid for and populate those orbital slots. Here ae excerpts from today's Washington Post: "New Competition for Comsat? The House of Representatives yesterday passed legislation that would end Comsat Corp.'s monopoly on access to the global satellite consortium known as Intelsat. The measure, which lawmakers approved by 403 to 16, was promoted by sponsors Thomas J. Bliley Jr. (R-Va.) and Edward J. Markey (D-Mass.) as benefiting U.S. consumers by allowing more competition in the growing worldwide satellite market. Bethesda-based Comsat owns 19 percent of Intelsat, a 142-nation treaty organization based in the District. Intelsat's global network of 26 satellites is often the only way to reach many countries with long-distance voice, data and video communications. The bill would give Intelsat, and a related mobile satellite group called Inmarsat, until Jan. 1, 2001, and Jan. 1, 2002, respectively, to shed their treaty privileges and spin off into publicly traded companies. If they did not, Comsat and Intelsat would be barred from providing some competitive services, including high-speed Internet access, in the United States."