Television

Intelsat's ORBIT act amendment becomes law

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MUMBAI: Intelsat has announced that, as on 25 October 2004, an amendment to the open-market reorganisation for the betterment of International telecommunications act (ORBIT act) became law.



The act had previously required Intelsat to dilute the ownership interests of its former signatories through an initial public offering (IPO).



According to a company release, the amendment permits Intelsat to comply with the dilution objectives of the ORBIT Act by means other than an IPO.



Speaking on the development, Intelsat CEO Conny Kullman said, "This change in the law was a wise decision by Congress, ensuring that a stated purpose of the ORBIT act is achieved while at the same time allowing us the flexibility to determine the form of transaction that is most appropriate for our company. Intelsat's acquisition by the private equity consortium backing Zeus Holdings Limited is expected to be complete within a few months, after which we believe our company will have fully satisfied the requirements of the ORBIT act."



"If the FCC determines that we have met the criteria set forth in the amended ORBIT Act, we will no longer expect to face ORBIT-related licensing restrictions, allowing us the freedom to sell and develop our services, including DTH. This will put Intelsat on a more level playing field with our competitors while offering customers more high-quality choices when procuring DTH platforms, " he added in the released.

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