Communications Satellite Act of 1962
Encyclopedia
The Communications Satellite Act of 1962 was put into effect in order to deal with the issue of commercialization of space communications. This act was very controversial, and was left very open-ended. The act was signed August 31, 1962 by President John F. Kennedy
John F. Kennedy
John Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963....

.

Goals of the act

The act aimed to join together private communication companies in order that satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....

s might be more obtainable. According to John F. Kennedy, “Its purpose is to establish a commercial communications system utilizing space satellites which will serve our needs and those of other countries and contribute to world peace and understanding.” This act would allow the communication industry to share satellite use and information that a stronger communication system might emerge. This in effect would provide a cheaper more efficient communication system. The Act itself would create the Communications Satellite Corporation also known as COMSAT
COMSAT
The Communications Satellite Corporation is a global telecommunications company, based in the USA, and with branches in Brazil, Argentina, Colombia, Mexico, Peru, Venezuela and several other countries in the Americas. It is present also in Turkey...

 (Columbia Encyclopedia).

Disagreement with the passing of the act

Democratic
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

 Senator Russell B. Long
Russell B. Long
Russell Billiu Long was an American Democratic politician and United States Senator from Louisiana from 1948 until 1987.-Early life:...

 of Louisiana
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...

 said of the act, “When this bill first started out I thought it was as crooked as a dog's hind leg. I am now convinced that that would be a compliment. This bill is as crooked as a barrel of snakes." The American Telephone and Telegraph Company argued that using space for communications was just a modern representation of the submarine communications cable
Submarine communications cable
A submarine communications cable is a cable laid on the sea bed between land-based stations to carry telecommunication signals across stretches of ocean....

s currently in use. AT&T proposed joint ownership of all of the communications satellites, with control based on the system facilities, but since AT&T had a majority of world communications this proposition was opposed by other communication companies. The Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...

 proposed that the ten companies join together in a program, but this was put down with anti-trust legislation.

The compromise allowing the bill to pass was that there would be government regulation on the communication industry. The United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 made it so that all companies registered by the FCC had nondiscriminatory access to the satellite systems. This would allow competition to develop among the companies, thus preventing trusts from forming. The United States Government, including the President, NASA
NASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...

, and the FCC, were all to maintain certain duties to monitor the communications satellites. The President was to observe every aspect of the development and operation of the satellite systems. He is also responsible for providing arrangements with foreign participation. NASA was designated as a technical advisor for the FCC and the communications corporation to the extent that would aid the nation. NASA was to receive reimbursement for the services it rendered. The largest burden on regulation falls on the FCC. The FCC was deemed responsible for making sure that competition is present, and that small businesses would be able to participate.

Regulation committees established

The Act created a board of directors to oversee regulation of the act. There are to be 15 members of this board; three appointed by the president, six chosen by public stock holders, and the remaining six chosen by communication carriers that are authorized by the FCC. This board of directors is to control the public satellite systems. Stock shares for this Board were to be sold for $100. This would provide finances for the board.

The completed act

The act was very ambiguous about the responsibilities of the regulators and the direction that the companies were to go; however, the act provided a good start towards a global communications system. Section 301 of the Act provided Congress the right to “repeal, alter, or amend.” This would be necessary in order make clear the future regulation done by the committees established by the act.

Comments on the act after passing

The year after the act passed, President Lyndon B. Johnson
Lyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...

 reported to Congress that, “act is progressing well in light of the complexities of the problem.” Yet, at this point little had actually been accomplished. There had been no communication satellites launched and only some research had been conducted to provide moving for moving forward. President Johnson’s next report to congress was on March 17, 1967. Here he reported that, “the Communications Satellite Act of 1962 [has] brought mankind to the threshold of a full-time global communications service to which all nations of the world may have equal access.” At this point in time much had been accomplished towards a global communications system. Comsat
COMSAT
The Communications Satellite Corporation is a global telecommunications company, based in the USA, and with branches in Brazil, Argentina, Colombia, Mexico, Peru, Venezuela and several other countries in the Americas. It is present also in Turkey...

 had been joined by 17 nations for the creation of INTELSAT
Intelsat
Intelsat, Ltd. is a communications satellite services provider.Originally formed as International Telecommunications Satellite Organization , it was—from 1964 to 2001—an intergovernmental consortium owning and managing a constellation of communications satellites providing international broadcast...

, International Telecommunications Satellite Consortium (Columbia Encyclopedia). Fifty five nations had joined INTELSAT, which was a consortium established to provide an intergovernmental owning of communications satellites. INTELSAT was created at a time when private companies were unwilling to invest in Satellite technology shortly after the passing of the Communications Satellite act of 1962 (Gruenwald 1998).
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