Hypothetical talk of mergers between Intelsat and New Skies Satellites BV, as well as Inmarsat and ICO, dominated a U.S. Congressional hearing, held April 14, reviewing the status of the companies affected by the Open-Market Reorganization for the Betterment of International Telecommunications (ORBIT) Act.

Daniel Goldberg, CEO of New Skies Satellites told members of the U.S. House Energy and Commerce Subcommittee on Telecommunications and the Internet that the satellite industry right now is “unhealthy” and is likely to see some consolidation in the near future. However, he noted that the ORBIT Act effectively restricts options on his company merging with Intelsat and called on congressional memebers to update the legislation to reflect the changes that have taken place in the marketplace since the act was passed in 2000. The ORBIT act restricts New Skies from merging with Intelsat for a period of 11 years after both companies satisfied the privatization requirements in the act. New Skies has complied with those requirements and a decision on Intelsat’s compliance is forthcoming from the Federal Communications Commission. Because both companies have completely shed ownership interested from their previous intergovernmental owners and are now private entities, the satellite carriers should be able to pursue a merger if that scenario was a favorable option to both companies.

For more analysis regarding the news coming from this meeting, please see the April 18 issue of Satellite News. For more information on subscribing to Access Intelligence’s satellite industry news and information products, please visit us on the Web at https://www.satellitetoday.com.