STRATEGIES FOR MARKET ENTRY BY PRIVATE INTERNATIONAL SATELLITE SYSTEMS

Intelsat satisfies the international satellite requirements of most nations, but since 1984 the US government has endorsed qualified market entry by international satellite systems separate from the intelsat global cooperative. This policy initially met with substantial opposition, but intelsat did eventually approve the operational plans of PanAmSat. The PanAmSat model for separate system market entry emphasizes provocation and the threat of litigation and congressional intervention, but as new separate systems appear on the horizon other strategies have become available. This article explores separate system models with an eye to identifying whether and how international satellite competition can enhance consumer welfare.