The Future of INTELSAT in a Competitive Environment
Abstract
INTELSAT has been an important instrument of U.S foreign policy because it has spread the benefits of advanced telecommunications technology to nations--especially the developing nations--throughout the world. In earlier years, this role was fairly easy to pursue because there were few alternatives to the use of INTELSAT satellite circuits. More recently, however, other satellite systems have emerged to compete with INTELSAT, with more likely to follow; and fiber optic cables with high capacities are being installed across both the Atlantic and Pacific Oceans as first steps in a global network. Concerns have arisen about INTELSAT's ability to continue its role as global provider of service in the face of growing competition. In response to these concerns, this study examines the financial situation that INTELSAT may face as a consequence of competition with fiber optic cable and other satellite systems. This is an important area for investigation because it may suggest pricing strategies and other responses by INTELSAT that would strength its ability to compete in a rapidly changing market environment. This study is intended to provide guidance to the State Department and other officials in evaluating INTELSAT traffic and financial projections and in formulating appropriate U.S. policy toward INTELSAT and competing system.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1988
- Accession Number
- ADA231540
Entities
People
- Leland L. Johnson
Organizations
- RAND Corporation