INTELLIGENCE MEMORANDUM THE INTELSAT SYSTEM: GROWTH, PROBLEMS, AND PROSPECTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001700030045-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 18
• Document Creation Date: December 22, 2016
• Document Release Date: January 18, 2011
• Sequence Number: 45
• Publication Date: March 1, 1972
• Content Type: IM

Sanitized Copy Approved for
Release 2011 /01 /18
CIA-RDP85T00875R0017000
Sanitized Copy Approved for
Release 2011/01/18:
CIA-RDP85T00875R0017000
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
L4 17~_
DIRECTORATE OF
INTELLIGENCE
Intelligence Memorandum
The Intelsat System: Growth, Problems, and Prospects
Confidential
ER IM 72-45
March 1972
Copy No. 62
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
WARNING
This doctunent contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
[eluded from aolomadt
downgrading and
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
CONTENTS
Page
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Background . . . . . . . . . . . . . . . . . . . . . . . . . 1
Intelsat . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Space Segment . . . . . . . . . . . . . . . . . . . . . 3
The Ground Segment . . . . . . . . . . . . . . . . . . . . 6
Use of System . . . . . . . . . . . . . . . . . . . . . . . 6
Problem Areas . . . . . . . . . . . . . . . . . . . . . . . . 7
The Definitive Intelsat Agreements . . . . . . . . . . . . . . 7
Regional Comsat Systems . . . . . . . . . . . . . . . . . . 10
Underutilization . . . . . . . . . . . . . . . . . . . . . . 11
Outlook and Conclusions . . . . . . . . . . . . . . . . . . . . 12
Comparison of Intelsat Telecommunications Satellites . . . . . . . 5
Illustrations
Figure 1. The Intelsat System: Members, Satellites, and Earth
Stations, March 1972 Map . . . . . . . . . . . . 4
Figure 2. Intelsat Earth Station at Buitrago, Spain Photograph . . . 6
Figure 3. Organization of the International Telecommunications
Satellite Consortium (Intelsat) Chart . . . . . . . 9
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
INTELSAT IV
SYSTEM SUMMARY
('lilt nn(1 en Illicit N
'I?eIclrhunc ,ml}'
I'clrcis'nn ,ruts
)lultiple access cnpahility
Weight ( 1111,10
Design lil'clitin (scat.)
Frequencies (I:ie;,hcr) ..)
I'plink
I)mcnlin k
Nitinler of repeaters
li,nul'sidlh I-cr rc re.rteI (nirC.I
hertz)
I:iieclicc I;eliutr,l pr ever I~er IC.
peal cr Irs rI ~ ,Icpcuri ire
;wtcnna hc:ur,rri,lthti).
'Total effertice rarliuled powor
Irv;rII Icpcn,lioq ,ni irrlem,,I
hcannci,ltli.).
Stahiliznlion tint lion!
I )c+pnrl
.I r rr err all
Ilw;hcs \rr
Chill (",o,
;"III%
First launch .,f, .I;In 7I
Launch rrhiclt .\IIati ('cnlanu
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
March 1972
THE INTELSAT SYSTEM:
GROWTH, PROBLEMS, AND PROSPECTS
Introduction
1. Since its formation in 1964, the International Telecommunications
Satellite Consortium (Intelsat) has grown from a North Atlantic-oriented
organization of 11 member countries with five earth stations and one
240-channel communications satellite (comsat) to a global system currently
numbering 83 members, 52 earth stations, and many satellites with
thousands of communications channels. inteisat has operated under an
interim charter, and negotiations leading to permanent arrangements have
been long and arduous. The primary areas of disagreement have been over
the West European attempts to reduce US influence within the organization
and the role of regional comsats in the Intelsat system. This memorandum
assesses Intelsat's growth, structural changes, major problems, and future
prospects.
Discussion
Background
2. A revolutionary new era for communications began in July 1962
with the launching by the United States of the first active communications
satellite, the AT&T-built Telstar I. Following Telstar a number of other
experimental comsats were orbited. These experiments demonstrated the
feasibility of using comsats for long-distance transmission of telephone and
Note: This memorandum was prepared by the Office of Economic Research
and coordinated within CIA and with the Department of State.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
television traffic and the practicality of positioning them in a geostationary
orbit. 1
3. Comsats possess several advantages over high fr';quency (HF)
point-to-point radio and submarine cable, the only other means of
transoceanic telecommunications. The latest comsat can provide up to 9,000
voice channels, compared with 845 for the latest transatlantic submarine
cable and only a few for HF radio links. Also comsats are the only means
for transmitting television across an ocean. They compare favorably with
submarine cables in reliability and signal quality and are far.superior to
HF radio in both respects. Comsats permit simultaneous links between many
different points, while submarine cables can directly link only two points.
Intelsat
4. Intelsat was formed on 20 August '1964 "to establish a single
global commercial communications satellite system" open for use by all
nations. It finances and coordinates the development and operation of the
system's space segment -- comsats and their tracking, telemetry, and control
stations. Intelsat buys comsats built to its specifications from private firms
(principally Hughes Aircraft Co.) and has them launched by NASA on a
cost-reimbursable basis. Intelsat also is responsible for the leasing of
circuits(2) through the comsats to both members and. non-members of the
Consortium. The ground stations are owned and operated by individual
member countries, rather than the Consortium, although the latter sets
technical standards for them.
5. Intelsat is financed by the space segment charges levied for leasing
circuits through the satellites and the investment quotas assigned to each
member. The amount of the investment is proportionate to the member's
use of the system, while the space segment charge is set to cover operating
expenses, amortize the investment quotas, and provide a reasonable return
on investment. Net investment in Intelsat now totals more than $230
million, and operating revenues in 1971 amounted to about $78 million.
6. Intelsat's 83 members include all of the developed countries and
most of the less developed countries of the non-Communist world (see
1. By orbiting the earth with the same speed and direction as the earth rotates, a
geostationary satellite remains fixed over one point on the earth's equator. From the
satellite's altitude of 22,500 miles, one-third of the earth is constantly visible. Only
three geostationary comsats are therefore needed to provide worldwide coverage.
2. Members lease "half circuits" (the uplink and downlink between their earth
station and the satellite).
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
Figure 1). Yugoslavia is the only Communist member.(3) The USSR,
although not a member, will soon use the Intelsat system in connection
with a new Moscow-Washington "hot-line" arrangement, and Czechoslovakia
and Hungary each lease one Intelsat half-circuit on full time. The People's
Republic of China (PRC) is continuing to use the transportable earth station
installed for President Nixon's visit but is unlikely to join the Consortium
as long as Taiwan remains a member.
The Space Segment
7. A spectacular growth in the space segment of the system (see
the table) has accompanied the rapid expansion of Intelsat membership.
Early Bird (Intelsat I), the world's first commercial comsat, was launched
in April 1965. It was limited to relaying either 240 voice channels or one
television channel, and its coverage was restricted to the Nortii Atlantic
region; nevertheless, its channel capacity nearly equaled that of all the then
existing transatlantic submarine cables combined.
8. 1 he Intelsat II series had the same channel capacity as Early Bird
but could cover both northern and southern hemispheres and had multiple
access capability - that is, three or more earth stations could work with
the satellite simultaneously. Four Intelsat 11 satellites were launched
between October 1966 and September 1967. The first was lost when it
failed to attain proper orbit; one was stationed over the Atlantic Ocean,
and two were placed over the Pacific. None are currently in use, although
all three could be activated if needed.
9. The Intelsat III satellites had a capacity of 1,200 voice channels
or four television channels, multiple access capability, and a design lifetime
of five years. Moreover, they provided global coverage and were the first
comsats capab:f-- of passing telephone, television, telegraph, data, and
facsimile traffic simultaneously. Eight of these satellites were launched
between September i 768 and July 1970. The first and fifth failed to achieve
orbit; the third malfunctioned, reducing its capacity by about one-half; the
seventh had to use two-thirds of its stationkeeping fuel to achieve
synchronous orbit, thus reducing its expected lifetime to three years; and
the eighth failed to transmit. The remaining three have performed perfectly.
Of the four Intelsat Ills still in working order, one is in active use and
three are spares-in-orbit.
3. Agreements formally e; tablishing Intersputnik, the Soviet-sponsored international
comsat system, were signed recently in Moscow. Its signatories include the USSR,
Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, Romania, Cuba, and
Mongolia. No satellites have yet been launched under the aegis of Intersputnik.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
The Intelsat System: Members, Satellites, and Earth Stations, March 1972
0 Active Communications Satellite
Earth Station Working
with Atlantic Ocean Satellites
Earth Station Working
with Pacific Ocean Satellite
NOTE- The PRC is currently using a
transporabie earth station in Shanghai
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875RO01700030045-8
Comparison of Intelsat Communications Satellites
Channel capacity
Telephone only
Television only
Multiple acceza capability
240
240
1,200
9,000
1
1
4
12
No
Yes
Yes
Yes
Weight (pounds) 85
Design lifetime (years) 1.5
Frequencies (gigahertz)
Uplink 6
Downlink 4
Number of repeaters 2
191 334 1,587
3 5 7
6 6 6
4 4 4
Bandwidth per repeater (megahertz) 25 130 225 36
Effective radiated power per
repeater (watts) 10 35 150 200-4,000 a/
Total effective radiated power (watts) 20 35 300 2,400-25,200 a/
Stabilization method
Despun antenna
Despun antenna
Despun antenna
Contractor
Hughes Aircraft
Hughes Aircraft
TRW
Company
Company
First launch,
6 Apr 65
26 Oct 66
18 Sep 68
Thrust augmented
Thrust augmented
Long-tank
Delta
improved Delta
Delta
a. Depending on antenna beamwidths.
Despun antenna
Hughes Aircraft
Company
25 Jan 71
Atlas Centaur
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
10. Intelsat IV, the latest series, has the capacity for either 9,000
voice channels or 12 television channels, a design life of seven years, and
multiple access. Also, it has two spot beam antennas which, by
concentrating the satellite signal on small areas of the earth, increase the
number of channels that can be transmitted to those areas with reduced
danger of interference with other radio emissions. The first Intelsat IV,
launched in January 1971, is now operational in the Atlantic Ocean region.
The second in the series, launched in December 1971, also is positioned
over the Atlantic. The third was launched in January 1972 and placed in
orbit over the Pacific in time to relay television, radio, and message traffic
during President Nixon's visit in China. Current plans call for an Intelsat IV
to be positioned over the Indian Ocean in 1973.
The Ground Segment
I1. The ground segment of the system has undergone equally rapid
expansion from five earth stations in 1964 to a current count of 52 with
a total of 61 antennas. They are distributed among 38 countries on six
continents.(4) Expansion has been facilitated by a renuction in cost from
$11 million for the earliest stations to about $4.5 million for the most
recent ones. (For an earth station used in the Intelsat system, see Figure 2.)
Figure 2. Intelsat Earth Station at Buitrago, Spain. The antenna in the foreground
communicates with North and South American countries through one of the Atlantic
Ocean satellites. The antenna in the background communicates with African and
Asian countries through the Indian Ocean satellite.
4. These data do not include the transportable earth station now in use in the PRC.
- 6 -
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
12. International bidding to construct earth stations has become very
competitive. In addition to several US firms (General Telephone and Electric
International, Page Communications, Philco, Raytheon, TRW, and Hughes),
a number of foreign companies have built or are now building them. The
most prominent are Nippon Electric Company and Mitsubishi of Japan,
Marconi of the United Kingdom, Telespace of France, Siemens of West
Germany, and Consorzio per Sistemi di Telecomicazioni via Satelliti (STS)
of Italy. In recent years the Japanese have been particularly successful in
underbidding other earth station suppliers.
Use of System
13. Use of the Intelsat system also has grown rapidly. The number
of circuits leased on full time rose from only 66 in 1965 to about 750
in 1968 and again to almost 2,200 by the end of 1970. Growth in 1971
was at a substantially lower rate.
14. Almost 80% of Intelsat channel usage is telephony; most of the
remainder is record traffic (telegraphy, data, and facsimile). Television
transmission still accounts for slightly less than 2% of Intelsat traffic but
is increasing rapidly. Approximately 80% of all Intelsat traffic is between
the world's developed countries - 60% of it is concentrated in the Atlantic
Ocean region. Slightly more than 40% of all Intelsat traffic is accounted
for by the United States alone. This pattern probably will shift somewhat
as the less developed countries upgrade their national telecommunications
systems and more of them acquire satellite earth stations.
Problem Areas
The Definitive Intelsat Agreements
15. One of the Consortium's most serious problems has been to obtain
acceptance by its membership of a permanent charter or - in Consortium
parlance - a set of definitive agreements. Since its creation in 1964, Intelsat
has been operating under interim arrangements that provide for a dual-body
policy and management structure. Policy is set by the Interim
Communications Satellite Committee (ICSC), which consists primarily of
representatives from those member nations making the most use of and
having the largest investment in the system. Voting quotas in the ICSC
have been allocated on the same basis, so that the United States has been
far and away the single most powerful member of the Committee. The
second body, known as the Manager, has been responsible for operations -
from overseeing the design, building, and launching of satellites to
monitoring and controlling their activity in orbit. This post has been filled
by the Communications Satellite Corporation (Comsat), a US firm.
- 7 -
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
16. The overwhelmingly dominant position of the United States in
Intelsat caused serious dissatisfaction among other members, particularly
those from Western Europe, and they insisted on substantial changes
organization before they would accede to a permanent charter. The West
Europeans especially sought a substantial reduction in US power within
Intelsat; an increase in the powers of governments (which have had no role
under the interim arrangements) relative to those of the telecommunications
administrations; and an Intelsat procurement policy that would ensure more
contracts for the aerospace industries of Western Europe.
17. Negotiations on a new charter were long and difficult. It took
two years of negotiations, involving three plenipotentiary conferences and
six intersessional working groups, to obtain a consensus in May 1971 on
c s;;t of draft Definitive Agreements. The new agreements provide for a
four-tier organization consisting of an Assembly of Parties, a Meeting of
Signatories, a Board of Governors, and an executive organ.
18. The Assembly of Parties will consist of representatives of the
governments and have recommendatory (but not decision-making) powers
on matters of concern to the governments as sovereign states. The Meeting
of Signatories will be made up of telecommunications entities and will
establish rules for approval of earth stations, for allotment of Intelsat space
segment capacity, and for the setting of rates. In both bodies, members
have one vote each.
19. The Board of Governors will have "responsibility for the design,
development, construction, establishment, operation, and maintenance of
the Intelsat space seg vent ... ." Membership and voting are based on use
of and investment in Intelsat, but the largest investor is limited to 4070
of total voting power.
20. The fourth tier of Intelsat will be the executive organ. A Secretary
General's office is to manage administrative affairs, and Comsat continues
to manage technical and operational matters. Not later than six years after
entry into force of the Definitive Agreements, a Director General will come
into being, replacing the Secretary General. He will oversee all management
operations but is obliged to contract out technical and operational functions
to the maximum possible extent. The Director General will be appointed
by and be responsible to the Board of Governors. (For the organization
of Intelsat under interim arrangements and under Definitive Agreements,
see Figure 3.)
21. The final agreements are compromises between the original US
and West European positions. The Assembly of Parties partly satisfies the
West European desire for greater participation in Intelsat at the
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
Figure 3
Organization of the International Telecommunications Satellite Consortium (Intelsat)
A. UNDER INTERIM AGREEMENTS
B. UNDER DEFINITIVE AGREEMENTS
'Not later than six years after the Definitive Agreements enter Into force a Director General will
assume all management functions, replacing the Secretary General and Comsat. However, the Dir-
ector General will be obliged to contract out technical and operational functions to the maximum
possible extent.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
governmental level, but its limited powers meet the US desire to maintain
the commercial-technical character of Intelsat and thereby minimize its use
for political leverage. The executive organ is a compromise between the
West European desire to have Comsat replaced immediately by an
international secretarial and the US wish to retain Comsat as manager for
as long as possible. Even when the office of Director General is established,
Comsat probably will continue to play a significant role, since it is by far
the most qualified organization to act as contractor.
22. The West European bloc reduced US influence through the 40%
restriction on any one member's investment and voting quota on the Board
of Governors(s) and a requirement that at least four members must vote
against a proposal before it can be rejected. The West Europeans also
succeeded in achieving a compromise on procurement policy. Although it
is less than they had originally sought, they believe it can be construed
to call for wider participation by their firms in future contracts for
development and manufacture of satellites.
23. In actual practice, however, the Definitive Agreements will not
greatly change the operations of Intelsat or the US role. The new voting
arrangements in the Board of Governors are not very different than they
were under the interim arrangements, since the United States has avoided
using its veto power anyway. Also, US usage of the system (and thus voting
strength on the Board of Governors) is expected to fall below 40% by
the end of 1972, so that US strength would have been diminished even
under the interim arrangements. Finally, on procurement matters, the
United States in the past has usually accommodated West European desires
for a larger share in satellite construction contracts. For example, the
non-US (principally West European) share of contracts for successive
generations of Intelsat satellites rose as follows: Intelsat I, nothing;
Intelsat II, 3%; Intelsat III, 6'%0; and Intelsat IV, slightly more than 200.
Regional Comsat Systems
24. Although the Definitive Agreements, unlike the interim
arrangements, explicitly accommodate regional comsat systems, the issue
remains essentially unresolved. Under the new agreements, members desiring
to set up regional comsat systems must submit their plans to Intelsat for
approval. Such approval requires a finding that the regional comsat will
be technically compatible with the global Intelsat system and will not cause
Intelsat "significant economic harm." For the West Europeans, the approval
5. Under the old interim arrangements, the US voting quota had never been lower
than 52%.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
issue could assume critical importance inasmuch as a US launcher probably
will be needed to place their planned regional comsat into orbit. Under
current US policy, launch services for a regional comsat will be made
available on a cost-reimbursable basis if either Intelsat or the United States
approves. However, if both Intelsat and the United States disapprove, the
latter will not supply launch services but will discuss with the requestor
modifications needed to obtain Intelsat approval.
25. In addition to the "approval" issue, the meaning cf "significant
economic harm" to Intelsat is still to be resolved: does it mean a threat
to the financial viability of Intelsat or only a lowering of the Consortium's
profits? These issues are sure to arise when regional comsats now only in
the planning or development stage approach completion. The first of these
is likely to be the West European plan for a regional comsat system covering
Western Europe, North Africa, and part of the Middle East.
Underutilization
26. Underutilization of the system is another potentially serious
problem. Six Intelsat IVs - each with a capacity to handle 5,000 voice
channels plus television - are scheduled for launching by 1974: two over
the Atlantic, which has the heaviest traffic; one over the Pacific; one over
the Indian Ocean; and two as spares-in-orbit. At present, however, the
loading of the busiest Intelsat IV operating over the Atlantic is only around
1,100 channels, and traffic over the Indian Ocean is being handled
adequately by a crippled Intelsat III operating at about one-half of capacity.
Such underutilization requires the charging of higher tariffs, since the total
costs of the system must be spread over a lower traffic base. Underutilization
of the system could be mitigated if demand develops for additional services,
such as domestic communications for large countries like Australia or Brazil
or educational television for less developed countries.
27. Underutilization results not only from advances in comsat
technology that have outpaced the growth in demand but also from the
uniform design of satellites for use in all three regions, even though traffic
demand varies greatly according to region. Current use of satellite capacity
in the Atlantic Ocean region, for example, is around 1,700 voice channels;
for the Indian Ocean region it is only about 300 voice channels. Moreover,
Intelsat must compete with submarine cables. Although comsats offer
substantially greater channel capacity than submarine cables, the importance
placed by international carriers on the availability of alternative means of
communications ensures that exclusive dependence on satellites is highly
unlikely, at least in this decade.
- 11 -
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
Outlook and Conclusions
28. In less than seven years, Intelsat has dramatically improved and
expanded the global telecommunications network. Comparable with
submarine cables in quality and reliability of performance, the Intelsat
system links many more countries directly, has provided an exponential
increase in international channel capacity, and has proved more flexible
than cables in accommodating shifting geographic patterns of demand.
Moreover, Intelsat links provide the only means for transoceanic television
transmission. For the United States and other developed countries, Intelsat
has made communicating abroad less costly, faster, and much more
convenient -- as a result of which international telecommunications is one
of the world's most dynamic growth industries. For many of the developing
countries, Intelsat has provided them for the first time with direct access
to high-quality international television and telephone circuits. As a virtually
global organization, Intelsat at times has been the arena for contending
national and regional interests but has nevertheless functioned successfully
as a mechanism for the orderly and coordinated diffusion of communicatons
satellite technology. In terms of membership - now up to 83 nations --
Intelsat is probably the largest commercial partnership in the world.
29. The Intelsat Definitive Agreements thus far have been ratified by
25 countries, including the United States. The requisite minimum of
signatories (54) probably will be obtained by the end of 1972, and the
agreements would then go into force. The new structure will not greatly
affect the US position, since the United States has avoided exercising its
full power in the past. Continued expansion of the global system is assured;
more than 80 Intelsat earth stations in more than 60 countries are expected
to be operating by 1974. The capacity of the space segment will be greatly
increased as Intelsat IVs replace older satellites over the Atlantic, Pacific,
,ind Indian Oceans. A still more advanced fifth-generation Intelsat satellite
probably will be under development by 1975.
30. Further improvements in comsat technology should result in
satellites that will make better use of the limited radio-frequency spectrum
and will have higher transmitting power n !,.d better stationkeeping
capabilities. These improvements will, in turn, allow the use of
less-sophisticated earth stations. This development would substantially lower
the cost of constructing and operating earth stations, thereby encouraging
more less developed countries to join Intelsat and permitting many more
Intelsat members with small international communications requirements to
build earth stations.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8
CONFIDENTIAL
31. Over the next several years Intelsat will become increasingly
involved with the controversial question of regional comsats. In addition,
underutilization of the Intelsat system probably will become a sensitive
issue. The total channel capacity of all the Intelsat IVs currently scheduled
for launching is likely to be greatly in excess of anticipated demand for
some years. Moreover, regional satellites, such as the West European system,
are apt to take business from Intelsat. Also, the still-expanding submarine
cable network will continue to compete with Intelsat, especially on
heavy-traffic routes.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030045-8