within the framework of our free enterprise system, under which public communication facilities are owned and operated by private companies subject to Government regulation. The merits of such a policy have been amply demonstrated by the record of achievements attained by our communications industry in providing a high quality of service at reasonable charges to the public.

The history of international communications is replete with a series of significant technological achievements. It is pertinent to note that as this Nation has progressed from narrow band transoceanic telegraph cables, to high-frequency radio, to high repeater wide band voice and record cables, we have not altered our basic concept of the role performed by the various private entities in the telecommunication field. Telecommunications facilities for public use, in this country, have always been privately owned and financed, subject to appropriate Government regulation to insure operations in the public interest and the maintenance of competitive benefits wherever feasible. When viewed from its functional aspects, space communication via satellite relay will be a supplement to, rather than a substitute for, existing international wire and radio communications.

Accordingly, although communication via space satellites represents a new technology it should be considered primarily as another means of long-distance communication which, when fully developed, will take its proper place within the complex of the existing international communication systems.

The launching of the communication satellites into orbit will, of course, require the cooperation of the National Aeronautics and Space Administration, which also has a significant role in the research and development work on communications satellites.

The Commission and NASA, cognizant of the need for mutual cooperation, have jointly signed a memorandum of understanding setting forth certain conditions of fact and policy guidelines.

If I may interpolate a moment there, Mr. Chairman, an agreement was signed in February of this year by my predecessor, Chairman Ford, and Mr. Dryden, acting for NASA. Since that time we have worked very cooperatively with Mr. Webb of NASA and the fundamentals of that agreement have continued and are in full force and are working in a very harmonious manner.

The CHAIRMAN. Do you have a copy of the agreement?

Mr. MINOW. Yes. We are submitting it for the record, Mr. Chair

man.

The CHAIRMAN. Very well. It will be included in the record, and such other information as you would like to include in the record with your statement.

Mr. MINOW. Each has agreed that the earliest practicable realization of a commercially operable communication satellite system is a national objective, and each has agreed to conduct its respective activities with a full exchange of information so as to accelerate necessary research and development and to coordinate governmental actions necessary to attain the national objective. It is requested that a copy of the memorandum of understanding be made a part of the record.

(The memorandum of understanding between FCC and NASA follows:)

FEDERAL COMMUNICATIONS COMMISSION,
Washington, D.C., February 28, 1961.

MEMORANDUM OF UNDERSTANDING BETWEEN FCC AND NASA ON RESPECTIVE CIVIL
SPACE COMMUNICATIONS ACTIVITIES

Chairman Frederick W. Ford of the Federal Communications Commission and Deputy Director Hugh L. Dryden of the National Aeronautics and Space Administration have signed the following memorandum of understanding between those agencies for delineating and coordinating their respective responsibilities in the field of civil communications space activities:

"The purpose of this memorandum is to provide a basis for coordinating the activities of the National Aeronautics and Space Administration and the Federal Communications Commission in the application of space technology to civil communications in order that their respective statutory responsibilities may be carried out in the national interest. It is mutually recognized that future Presidential or congressional actions may necessitate some modification of this memorandum.

"Following full and complete discussions of the present situation and future objectives, certain conditions of fact and policy guidelines were agreed upon. Both NASA and the FCC recognize as conditions of fact

"(1) That the present state of the technology of communication satellites strongly suggests the feasibility of utilizing such satellites to expand and improve existing facilities for worldwide communications services;

"(2) That a substantial amount of further research and development is necessary to demonstrate both the technical and economic feasibility of utilizing communication satellites on a commercial basis;

"(3) That in accordance with traditional communications policy in this country, oversea public communications are provided by private enterprise, subject to Government regulation, and that at the present time oversea voice communications are provided primarily by a single company and oversea record communications are provided by several companies;

"(4) That the FCC and NASA are concerned with the Nation's total communications capability from the points of view, respectively, of civil communications policy and the commercial utilization of space technology; and that existing common carriers and others are interested in participating in the development of space telecommunications technology to expand and improve worldwide channels of communication through private expenditures; and

"(5) That the congestion and technical limitations of the radio spectrum presently useful for worldwide communications are such that without communication satellite technology the spectrum probably cannot support the very substantial increases in capacity necessary to satisfy new services, such as transoceanic TV and wide band data transmission, or to satisfy the anticipated expansion of ordinary types of services.

"On the basis of the foregoing observations, both NASA and the FCC affirm the following propositions as guidelines for the coordinated conduct of their respective activities:

"(1) The earliest practicable realization of a commercially operable communication satellite system is a national objective.

"(2) The attainment of this urgent national objective in the field of communications may be accomplished through concerted action by existing agencies of Government and private enterprise.

"(3) The statutory authority of NASA and the FCC appears adequate to enable each agency to proceed expeditiously with the research and development activities necessary to achieve a commercially operable communication satellite system. Special problems which may arise in connection with the regulation of a commercially operable system are being explored by both agencies, and may result in legislative recommendations at a later date. "(4) In accordance with the traditional policy of conducting international communications services through private enterprise subject to governmental regulation, private enterprise should be encouraged to undertake development and utilization of satellite systems for public communication services. "(5) Both NASA and the FCC will conduct their respective activities with a full exchange of information so as to accelerate necessary research and development and to coordinate governmental actions necessary to attain the national objective.

"(6) NASA, in appropriate cooperation with other Government agencies, will continue to direct its activities in this field toward the advancement of space technology and its application to civil communications.

"(7) The FCC, in appropriate cooperation with other Government agencies, will continue to direct its activities in this field toward the development of communications policy and the implementation and utilization of space telecommunications technology through the licensing and regulation of U.S. common carriers. In this connection, the FCC will take into account the total Government needs for communication services where such needs normally are provided by privately owned facilities.

"(8) Both NASA and the FCC, consistent with the policies of the Department of State, will facilitate international cooperative activities in the field of space telecommunications within the framework of this Nation's international obligations and aims.

"(9) Existing interagency organizations and procedures for coordination will be employed with respect to the allocation and assignment of frequencies necessary to support both the research and development and the operational phases of a civil communication satellite system."

Mr. MINOW. The Commission also has been working with the Space Council, in conjunction with other Government departments and agencies which are concerned with the new space technology, on a top level policy study which looks toward the formulation of Governmentwide policy recommendations designed to effectuate the optimum use of operational communication satellites at the earliest practicable time. This study was undertaken by the Space Council pursuant to the direction of President Kennedy. It has been completed and I am sure the committee is aware of the President's recently announced statement—it was announced yesterday-of national policy on satellite communications.

The Commission is pleased to point out that the action it has thus far undertaken toward the realization of a commercial satellite communication system is consistent with the national policy. Any future action it may take will, of course, be guided by the national objectives as set forth in the President's statement of policy.

The Commission also is participating in the work of the International Radio Consultative Committee (CCIR), with other U.S. representatives in studying the international aspects of the technical side of space radio requirements. These studies will result in recommendations to the CCIR's 10th Plenary Assembly at New Delhi in January 1963. The work of the U.S. representatives, under the sponsorship of the Department of State, is proceeding on a broad front and should be completed well in advance of the scheduled meeting in order to provide adequate time for circulation of U.S. views abroad.

I might add that Commissioner Craven has had a most responsible role in this and has chaired many of the interagency committees, and I feel if there is any question about that he is perfectly prepared to answer them today.

There are, of course, additional problems presented by the new space science that must be resolved before a commercial space satellite communications system can become a reality. The Commission is doing all that it can to aid in a prompt resolution of these problems. In this connection, the following actions and activities appear deserving

of mention.

In early 1957, the Commission recognized the need for international agreement on the allocation of spectrum space satellite communications and other related space communication functions. Accordingly, it undertook, in connection with the Department of State and other Government agencies and interested segments of the communications industry, extensive studies which ultimately led to the formulation of

space communication proposals which were presented by the United States at the Ordinary Administrative Radio Conference of the International Telecommunications Union (ITU), Geneva, 1959. A feeling, not shared by the United States, generally prevailed at the Conference that too little was known at that time about the actual needs of an operable space communication system to warrant the allocation of wide bands of spectrum space for operational space communication purposes. The Conference did, though, principally on the initiative of the United States, make available certain frequency bands for space research.

In addition, the Conference recognized the necessity for the International Telecommunication Union to provide adequate frequency allocations for all categories of space radio communications at the earliest practicable date. Accordingly, it adopted a resolution which provides for the convening of an Extraordinary Administrative Radio Conference tentatively scheduled for the latter part of 1963 to consider the allocation of frequency bands required to support both research and operational phases of the various categories of space radio communication.

Since the adjournment of the 1959 Geneva Conference, the Commission has been actively engaged in preparatory work for the 1963 Extraordinary Conference.

Thus, in May 1960, it instituted a formal inquiry (docket 13522) looking toward the formulation of proposals to be made by the United States at the Conference. The issues in this proceeding include the feasibility of sharing space system frequencies with existing fixed and mobile operations; the amount of spectrum space required for various space communication functions; the most desirable portion of the spectrum within which such functions should be accommodated; and the degree of protection from harmful interferences required by each such function.

Taking into account the information filed in this proceeding, substantial progress has been made on formulation of proposals for radio frequency allocations to support the space program internationally. The Interdepartment Radio Advisory Committee has prepared, with Commission staff collaboration, a draft statement of preliminary views of the United States on this subject.

This draft has been approved by the Office of Civil and Defense Mobilization for formal coordination with this Commission, and the Commission has published it for industry comment in the form of a "Second Notice of Inquiry" in docket No. 13522. It is requested that our "Second Notice of Inquiry" be made a part of the record.

It is a comprehensive first proposal for the kind of frequency support for which international agreement appears to be necessary if the full benefits of space technology are to be made available to all the peoples of the world.

Specifically, it deals with allocation for space research, weather satellite, and communication via satellite relay. Industry views to the proposal have been filed. They are generally favorable and contain a number of constructive recommendations. As soon as possible after study of the industry views, it is planned that parallel

recommendations will be made to the Department of State by this Commission and the OCDM, for the purpose of circulation of our views abroad. The objective is to secure the widest possible area of agreement among the administrations which are members of the International Telecommunications Union-well in advance of the commencing of an international conference on frequency allocations for space.

In addition to the work being done on frequencies, the Commission has acted to facilitate experimentation by private industry designed to develop constructive technical information in furtherance of the country's overall space program.

The Collins Radio Co. has utilized experimental licenses granted early in 1960 to relay signals by way of reflection from Echo, the first passive communication satellite. In addition, an experimental authorization was granted in January of this year to the International Telephone & Telegraph Corp. to bounce signals off the moon and manmade passive satellites for basic research and study.

Also, in the same month, an experimental authorization was granted to the American Telephone & Telegraph Co. which will permit it to conduct an experimental program involving the transmission and reception of signals between earth terminal facilities and active communications satellites. The Commission also has granted an application filed by Westinghouse for an experimental authorization involving a pure research program directed toward development of suitable earth-station components and subsystems.

There is pending an application, filed May 1, 1961, by Communication Satellites, Inc., currently a subsidiary of the General Electric Co., requesting authority to establish a communications satellite system intended to provide worldwide interconnecting facilities for existing national telecommunications net work.

This application currently is under study. Unlike all other space applications which have been handled by the Commission, this one is for regular rather than experimental service.

The Commission has also taken steps to arrive at an early solution to the administrative and regulatory problems relating to the future authorization of commercially operable space systems. Inasmuch as it now appears that it will not be feasible, for the foreseeable future, to have more than one commercial satellite system, a serious problem is presented as to the manner in which such a system can be accommodated within the existing competitive framework of our international common carrier communications industry and within the antitrust laws. The Commission felt that prompt consideration of this problem would avoid delays in the establishment of commercial communications via satellites. Accordingly, on May 29, 1961, we instituted a formal inquiry (docket No. 14024) soliciting views as to, among other things, the best method of insuring that international common carriers participate in a satellite system on an equitable and nondiscriminatory basis. It is requested that a copy of our notice of inquiry be made a part of the record.

The CHAIRMAN. Let it be included in the record.