Oct 14 1980
From The Space Library
The FCC called for public comment on ComSatCorp reorganization, to prevent its role as sole U.S. representative in the global communications satellite system from interfering with its growing competitive activities. An official said that this "could lead to changes" in ComSatCorp operations.
An FCC staff study earlier in 1980 said that the potential for conflict was substantial enough for ComSatCorp to need two separate parts: one for its role in the global system, the other providing services like a long-distance telephone system or satellite-to-home subscription. television. As a result, ComSatCorp had set up a World Systems Division to take charge of its congressionally mandated role in the global system, its competitive activities remaining with its subsidiary Comsat General [see September 23]. However, research and development by Comsat Laboratories would remain in the parent company. FCC noted that the subsidiary could obtain new technology developed by the laboratories either free or below cost, enabling it to undercut competitor prices. It was debating further action to ensure that ComSatCorp did not use the knowledge gained in its monopoly role to compete unfairly with other communications firms. (W Star, Oct 14/80, D-7)
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