A bill to modify and extend certain privatization requirements of the Communications Satellite Act of 1962.

Mr. Speaker, I ask unanimous consent to take from the Speaker's table the Senate bill (S. 2896) to modify and extend certain privatization requirements of the Communications Satellite Act of 1962, and ask for its immediate consideration in the House.

Mr. Speaker, I rise today in support of S. 2896 and urge swift passage of this noncontroversial legislation. Earlier this week, the Senate passed S. 2896, to extend the deadline by which INTELSAT and Inmarsat are required to conduct an initial public offering (IPO) under the ORBIT Act and to further broaden the options available to these companies to divest their government shareholders. I commend my colleagues in the Senate for expeditiously addressing this important issue.

The ORBIT Act was enacted in March 2000 to promote a competitive market for satellite communications through the privatization of inter- governmental organizations. To achieve that competitive satellite marketplace, the ORBIT Act called on Inmarsat and INTELSAT to conduct an initial public offering (IPO) by a date certain--December 31, 2001. The purpose of this IPO requirement was to ensure independence by substantially diluting the ownership of these privatized companies by their former owners, many of which were foreign governmental entities. Such dilution would facilitate a more competitive satellite marketplace devoid of the perverse influences associated with government ownership and control.

However, due to volatility in the financial markets, and the telecommunications sector specifically, Congress has repeatedly been forced to grant additional time for these companies to conduct their statutorily mandated IPOs. Unfortunately, the market conditions

have not improved. Today, these companies, instead of going to the public equity markets, have opted to use private equity deals to divest themselves of government ownership.

I fully supported the goal of independence and competition when we enacted the ORBIT Act, and I still do today. Indeed, the action we take today is fully consistent with this policy objective.

This bill, while it does not eliminate the IPO requirement, allows other methods, which are currently being used in the marketplace to show ``substantial dilution.'' This bill makes the ORBIT Act consistent with what is happening today in the real world.

There are certainly other issues in the ORBIT Act that deserve to be explored and I intend to ask Telecommunications and Internet Subcommittee Chairman Upton to hold a hearing on the Act early next year to examine what further needs to be accomplished. But today, I fully support S. 2896 and I urge my colleagues to support it as well.

I ask unanimous consent that the Senate proceed to the immediate consideration of S. 2896, which was introduced earlier today.

I ask unanimous consent that the bill be read a third time and passed, the motion to reconsider be laid upon the table, and that any statements relating to this matter be printed in the Record.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on S. 2896.