COMSATCOMMUNICATIONS SATELLITE CORPORATION MAGAZINE

VIEWPOINT

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In October, Dr. Charyk retired as Comsat'sChairman and Chief Executive Officer, aposition I then assumed. I consider him atough act to follow in every respect. Formost of the past twenty years, I have hadthe good fortune of working closely withDr. Charyk and have benefitted from hissharp intelligence and sound judgment.

When I joined Comsat in 1966, Dr.Charyk had been here three years as theCompany's founding President. At thattime, we were preparing to launch asecond generation of Intelsat satellitesand starting work on a third. We alsowere getting ready to begin service fromthe Paumalu, Hawaii, and Brewster,Washington, earth stations. The Companywas young and excited about putting intoplace the elements of a global satellitenetwork that promised to bring profoundchanges to the international telecom-munications marketplace.

Today, we face a more competitivebusiness environment. And we have beenworking hard to meet the challenge ofbuilding an organization that is flexibleand responsive to rapidly evolvingcustomer needs, all the while makingsure that our mandated services are asgood as they can be. Bringing aboutsuch a transformation has produced far-reaching changes in our services, prod-ucts and corporate culture. But these

changes have not been instituted over-night. Indeed, they have their roots inactions taken initially in the 1960s, someof which bore fruit in the early 1970s.and all of which occurred under Dr.Charyk's leadership.

The innovative Comsat services andproducts of today are part of the Charykheritage at Comsat. Among these areComsat International's Digital Expressbusiness communications service, thededicated private video distributionsystem that Comsat General built and isoperating to serve NBC, and the HI-NETsystem that Comsat General developedin concert with the Holiday Corporationto bring television entertainment to thenation's hotels and motels. One of ournewest products-Comsat TeleSystems'new earth station in a suitcase-isfeatured in the pages of this issue ofComsat Magazine. This transportable unitaccesses the Inmarsat system with a35-inch diameter antenna and is compactenough to be carried as luggage onboard an airplane.

As the telecommunications market-place has matured and changed, so toohas Comsat. We are building on the solidfoundation developed under Dr. Charyk'sleadership. Our commitment to providingour customers with effective and im-aginative solutions to their communica-tions problems is stronger than ever.

COMSAT

Communications Satellite CorporationRichard L McGrawVice President.

Corporate Affairs

Dr. Daniel N . CramptonDirector. Communications

Stephen A Salt

Chief Photographer : William J Megna

AdministrativeSupport: Shirley T Coheld, Jocelyn E Ward

Corporate Affairs : Roger Cochetu . Director Public and InvestorRelations, Ernest B Kelly Ill, Director . Government Relations.K Baurnganner D Berg . E Bolen L Brobst . S. Chase,K Kazmark , J Martin, T Scully. F Snitzel , J. Wakeling,J Williams.

Liaison Assistanoe •-.ludy D . Blake Director Business Promotion,Comsat Geretal, Kaye Burke . Manager, External Relations . ComsatTechn6ogy Products, Allan Ganund . Director Public Affairs . ComsatLaboratories : Tish Fonda , Public Relations Specialist Comsat General.Edmond Harvey Manager Graphic Arts: Barbara Heinebeck , Manager,Public Relations , Comsat International . J Holmes Government Systems.Claude Norcon. Manager , Media Communications . ComsatTeleSystams. Irwin Zucker Manager. Marketing Services , Amplica.

Articles in Comsat Magtmne reflect the authors opinions which may notnecessarily be those of Comsat Permission to reprint articles may beobtained by writing the Editor Correspondence should be addressed toStephen A Salt . Editor. Comsat Magazine . Commun icat ions SatelliteCorporation 950 L' Enrant Plaza . S W Washington D C 20024 2,98

Comsat Magazine is designed by Baskin & Associates . Inc. Alexandria. VaSeparat ions and printing are by Peake Printers . Inc . Cheveny. Md

1985, Communications Satellite CorporationComsat Is a trade mark and service mark of theCommunications Satellite Corporation.

From the Editor

The feature section of Comsat MagazineNo. 17 reflects two purposes: first, togive attention to our new senior manage-ment team-Irving Goldstein and MarcelJoseph-and second to look at threeexciting new Comsat products and abrand new nationwide service.

Two of our new products-theTCS-9000 earth station in a suitcase ofComsat TeleSystems and the SkyBridgesatellite broadcast vehicle (SBV) ofComsat General -distinguishedthemselves during the aftermath of theearthquake in Mexico, and we are pleasedthat William J. Megna, our ChiefPhotographer, was able to be present torecord the critical role both productsplayed. We also give attention to the newStarcom interactive data communicationssystem of the CTP Networks ProductsDivision, and we report on the progressof HI-NET Communications, a partnershipenterprise of Holiday Corporation andComsat General , in bringing televisionprogramming to the nation's lodgingindustry.

Our article about the response ofComsat companies to the disaster inMexico emphasizes the use of the products,their excellent performance under fireand the role of Comsat staff directly con-cerned with their use. Here it is well to

Departments

Articlesi a new era

An interview with IrvingGoldstein, Chairman andChief Executive Officer

An interview with MarcelJoseph, President and ChiefOperating Officer

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EARTHQUAKE 16

An earth station in a suitcase 26SkyBridge brings the 30

story back aliveHI-NET-meeting the entertainment 34needs of the lodging industryStarcom , private networks 38dream come true

Cover: A complete earth station that fits entirelywithin two easily carried, easily stowed suitcasesand which connects via the Inmarsat system withthe worldwide telephone network-that's what ComsatTeleSystems. Inc , of Fairfax, Virginia, has given theworld with its new TCS-9000. The critical role thatthe TCS-9000 played in Mexico City in the aftermathof the earthquake is covered in an article beginningon page 16. The benefits of the TCS-9000 are discussedin a second article beginning on page 26. Photographby William J. Megna, Chief Photographer. Model:Eric Rock, Financial Analyst, Comsat Technical Services.

underscore the very important role ofanother element of the Corporation,namely the Maritime Services group ofComsat Space Communications Division.Maritime Services, in keeping withComsat's responsibilities as the U.S.Signatory to Inmarsat , helped all U.S.parties seeking to send to Mexico City orto use in Mexico City earth stations thatwork with the global Inmarsat system.

For help during photographerMegna's stay in Mexico City. our thanksto Joe Castro, President of World TradeImport/Export, Inc., and to TeleSystems'William H. McGuire and ComsatLaboratories ' Ernest P. Ekelman. Forhelp on all aspects of our coverage ofTeleSystems'TCS-9000, our appreciationto Edward J. Bender, Jr. Our coverage ofSkyBridge would not have been possiblewithout a similar kind of commitmentfrom Comsat General 's Tish Fonda. Atthe Halliburton Company, Robert G.Gallagher was very helpful in supportingour photographic efforts in behalf of Star-com, and this list cannot be completewithout an acknowledgement to the Districtof Columbia Fire Dept., specifically to Lt.Wendell E. Youngblood, Assistant PilotRoark Shallow and Fire Fighter PatrickGibbons for helping us show SkyBridge in

action. Stephen A. Saft

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Results for the third quarterare presented and explained

For the quarter ended September 30,1985, Comsat's Consolidated NetIncome was $12.5 million, or $.68 perprimary share. This compares to NetIncome of $12.8 million, or $31 perprimary share, reported for the thirdquarter of 1984. Operating Revenues forthe 1985 quarter reached $121 million,an increase of $17 million or 16 percentover the amount reported for the samequarter last year.

The decrease in Net Income com-pared to the same quarter in 1984primarily reflects the adverse impact onOther Income (Expense) of a provisionfor loss of $3.9 million taken during the1985 quarter, partially offset by theabsence of losses associated with theCorporation's previous partnership in-terest in Satellite Business Systems(SBS). This provision to expense interestcosts which were capitalized on certainassets not subject to Allowance forFunds Used During Construction(AFUDC) was established earlier thisyear. Through the third quarter of 1985,approximately $9.9 million has been ac-crued for this provision, which equals ap-proximately $5.7 million after tax, orabout $.32 per primary share.

Third quarter Operating Incomeincreased over that for the same periodof the prior year principally as a result ofimproved performance in the Corporation'sCommunications Services and Space Com-munications Divisions. The Communica-tions Services improvement primarilyreflects reduced losses associated withthe Corporation's direct broadcastsatellite business, partially offset bydeclining performance in the TechnologyProducts division. The Technology Pro-ducts decline primarily reflects severeprice competition for certain equipmentproduct lines, partially offset by improvedperformance in other equipment productlines.

Losses from Discontinued Operationsdeclined to approximately $.6 million forthe 1985 quarter, from approximately$1.7 million. Losses related to SBS arereported for the third quarter of 1984 asLosses from Discontinued Operations.

Comsat divested its interest in SBSduring the third quarter of 1984. Lossesrelated to Comsat's ownership andSeptember 1985 sale of EnvironmentalResearch and Technology and the pro-perty associated with that business arereported as Losses from DiscontinuedOperations.

For the first nine months of 1985,Consolidated Net Income was $44.6million, or $2.45 per primary share, anincrease of $7.8 million or $.41 perprimary share, over the amount for thefirst nine months of 1984. This increaseis principally a result of the absence oflosses associated with the Corporation'sownership interest in SBS, reducedlosses in the Communications ServicesDivision's direct broadcast satellitebusiness, and increased income from theSpace Communications Division's Intelsatand Inmarsat businesses, partially offsetby the previously discussed provision andincreased equipment manufacturinglosses.

Operating Revenues for the first ninemonths of 1985 were $362 million, anincrease of $57 million over the amountfor the same period in 1984. This increasereflects increased revenues in all threeoperating divisions.

Interest in three internationalearth stations to be sold

Comsat will sell to American Telephoneand Telegraph Company (AT&T) onJanuary 1, 1988 its 50 percent ownershipinterest in three U.S. international earthstations for approximately $55 millioncash. Two other jointly owned stationswill be closed on January 1, 1987.Comsat will focus its international earthstation business on urban gateway earthstations that provide specialized services.

These actions are partially in responseto a December 1984 Federal Communica-tions Commission (FCC) decision to per-mit common carriers to own and operatetheir own multi-purpose internationalearth station. The Corporation's actionsregarding jointly owned stations aresubject to FCC approval.

According to a Memorandum ofUnderstanding (MOU) between Comsatand AT&T, on January 1, 1988, Comsat

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will sell to AT&T its 50 percent ownershipinterest in the Etam, West Virginia;Jamesburg, California; and RoaringCreek, Pennsylvania international earthstations. Comsat will recover its fullinvestment in the stations. Until 1988, thestations will continue to be owned andoperated under current arrangements.

By January 1, 1987 two other U.S.international earth stations (Andover,Maine and Brewster, Washington), whichwere built in the 1960s and which arelocated far from urban centers, will havebeen phased out of international switchedservice. Services currently availablethrough these stations will be providedthrough other appropriate facilities.Comsat expects to recover its fullinvestment in these stations throughaccelerated depreciation.

The rate base associated with thejointly owned international earth stationswill decrease between now and 1987.This decrease will cause the contribu-tions to Comsat's earnings from thesestations to decrease from approximately$15 million for 1985 to approximately $6million for 1987.

"We expect that any adverse impacton our revenues or earnings resultingfrom this divestiture will be effectivelyoffset by growth in our new internationalcarrier business, Comsat InternationalCommunications, and our otherbusinesses. We intend to invest the earn-ings generated by the earth stations andthe proceeds of the sale itself in solidgrowth opportunities," said ComsatChairman and Chief Executive OfficerIrving Goldstein.

"Our future lies in small, low-cost in-ternational earth stations that can belocated near our customers and candecrease their communications ex-penses. This move will assist us in focus-ing on these facilities," said Comsat In-ternational President William Taylor.

ERT sold to Houston firm;Concord property is retained

Resource Engineering, Inc. (REI), ofHouston, Texas, has purchased the Com-sat subsidiary Environmental Research &Technology, Inc. (ERT), of Concord,Massachusetts. Under the terms of the

transaction, Comsat will retain the landand property of ERT headquarters, whichit intends to sell at a later date.

The sale of ERT to REI will result inan after-tax loss to Comsat of approx-imately $5.5 million, or about $.30 pershare, during the third quarter of 1985. Again resulting from Comsat's expectedsale of the property associated with ERTis expected to substantially offset thatloss during 1985.

Commenting on the sale on the dayof the announcement, Comsat Chairmanand Chief Executive Officer Irving Gold-stein explained, "Today's actions willhelp us focus upon those businesses thattake full advantage of our competitivestrengths in telecommunications servicesand products. Our expertise lies intelecommunications-related businesses,and we are well positioned for continuedgrowth in the years ahead."

Mr. Goldstein also noted, "ResourceEngineering is well positioned as a majorplayer in the environmental consultingarena, and the business of ERT will bean important asset to them." Mr. RobertZoch, President of REI, added, "Thecombination of ERT and REI creates thelargest environmental and engineeringconsulting firm in the growing field ofhazardous waste management."

Compact Software sold toCommunications Consulting

Communications Consulting Corporation(CCC) has purchased the Comsat sub-sidiary Compact Software, Inc. All ofCompact's existing product support andmaintenance contracts, as well as rela-tionships with its sales representatives,will be continued.

Compact Software, Inc., is therecognized world leader in computer-aided design (CAD) software for themicrowave industry. Compact's softwareruns on a wide range of computers, fromlarge mainframes to super-minis, micro-computers, and stand-alone workstations.Compact's state-of-the-art products havebeen used throughout the world for morethan a decade, and its recently releasedSUPERCOMPACT PC Version 3.0, an IBM

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PC-based CAD product, has been wellreceived by the industry.

Dr. Ulrich L. Rohde, President of CCCand Chairman of Synergy MicrowaveCorporation and partner of the Munich-based Rohde & Schwarz GmbH & Co. KG,stated. "It is our intention to immediatelyincrease the capabilities of Compact'ssoftware products and to incorporatenew microwave models."

CCC has, since 1977, developed andsold scientific software. primarily forHewlett-Packard computers. The acquisi-tion of Compact increases CCC'scapabilities in the area of mainframecomputer and IBM personal computerproducts. CCC has an exclusive contractwith MCAD, founded by ProfessorsJansen and Wolf from the University ofDuisburg in West Germany; they haveagreed to participate in the update andenhancement of Compact products.

Stephen Day, Comsat Vice Presidentof Marketing and Corporate Development,stated, "We are pleased with Dr. Rohde'splans for continued growth and develop-ment of Compact Software's productsand by the assurance that currentCompact customers will have the supportservices they require."

Quarterly dividend declared

The declaration of a regular quarterlydividend of 30 cents a share, payableMonday, December 9, 1985, to share-holders of record on Friday, November 8.1985, has been announced. The dividendis the 61st consecutive quarterly dividenddeclared by the Corporation to itsshareholders.

Comsat International, BTIreach operating agreement

Comsat International Communications,Inc., and British Telecom International(BTI) have signed an internationaloperating agreement to provide BTI'sSatStream and Comsat International's

DIGITAL EXPRESS services between theUnited States and the United Kingdom.

The agreement marks a milestone forComsat International; it is the firstoperating agreement this new organiza-tion has signed with an overseas entity.The U.K. and U.S. route is extremelyimportant because of the substantialdemand for service between these twocountries.

Initial telecommunications servicesbetween the U.S. and the U.K. will beprovided using the Comsat Internationalearth station located in London at bitrates from 64 kilobits per second to2.048 megabits per second. Next yearComsat International will also begin toprovide similar services from severalother U.S. locations includingWashington, D.C.

Commenting on the agreement withBritish Telecom International. WilliamTaylor, President of Comsat International,remarked. "We are delighted with thisagreement. It will allow us to fulfill ourcommitments to customers, the first ofwhich is Merrill Lynch. We are also onthe threshold of concluding similararrangements with other signatories oradministrations in order to satisfy thefuture requirements of potentialcustomers."

"We are pleased to be able to linkour SatStream (IBS) service to ComsatInternational's Digital Express," saidMike Ford, Chief Executive of BTI's Inter-national Business Services, "and we lookforward to working together in providingthis exciting new digital facility."

Under the agreement. ComsatInternational will be responsible forservices to and from the satellite tocustomer locations in the United States,and BTI will be responsible for providingservices for customers in the UnitedKingdom.

Comsat International Communications,Inc., is a new, wholly owned subsidiary ofComsat created to conduct its interna-tional earth station operations and act asa retail common carrier providing interna-tional communications services.

BTI is the division of British Telecom-munications plc responsible for develop-ing, marketing and operating the com-pany's international communications ser-vices. In the U.S., BTI has established asubsidiary company, BTI Inc., to provide

Continued on page 41

1 I .► 1 ^.l I►FRAI I 11I

Dr. Joseph V. Charyk, founder of anindustry , retires . Irving Goldstein is newChairman and Chief Executive Officer.Marcel Joseph is President and ChiefOperating Officer.

"Mr. President, I would like to bring to theattention of my colleagues an event that inmany respects marks the end of an era."With those words , Senator John C. Danforth(R-Mo.), Chairman of the Commerce , Scienceand Transportation Committee of the U.S.Senate , begins a statement of tribute in theOctober 15 . 1995 edition of the CongressiornalRecord.

The tribute is to Dr . Joseph V. Charyk,who retired as Chairman and Chief ExecutiveOfficer of the Communications Satellite Cor-poration (Comsat) on October 14, and, asSenator Danforth points out so eloquently,that retirement is indeed the end of an era,not just for Comsat , but for the whole

worldwide satellite communications industry.On March 10, 1963. Dr. Charyk was elected

President of the newly created Comsat. Forthe next twenty-two plus years. he would leadthe Corporation in its quest to achieve threeprincipal goals (and a host of subsidiary ones):first. to create a communications system basedon satellites that would be useful to peoplesof all nations of the world: second, to createan international administrative body to operatethe worldwide system: and third, to make aprofit for its shareholders All three goals havebeen met-and met with unqualified success.A company came into being to foster a newtechnology. Its success inspired the creationof an entire multibillion dollar industry. Nowthe man who, more than any other, symbolizesboth the company and the industry hasstepped down.

Dr. Charyk's retirement at Comsat's man-datory retirement age of 65 is not, in fact, asevering of his influence on the Corporation'sfuture direction. He continues to serve on theBoard of Directors. Thus his counsel continues tobe available to the Corporation's new seniorofficers team-Irving Goldstein and MarcelJoseph. Mr. Goldstein, a Comsat employeesince 1966, assumes Dr. Charyk's position ofChairman and Chief Executive Officer MrGoldstein was elected President of the Cor-poration in 1983 and just prior to that wasExecutive Vice President.

Elected President and Chief OperatingOfficer, Mr. is a 24-year veteran ofGeneral Electric Corporation. His last lob withGE was that of Vice President and GeneralManager of the Transportation Products Divi-sion He joined Comsat in April 1985 asExecutive Vice President

In the weeks prior to Dr. Charyk's retire-ment, many people came forward to expresstheir admiration for his many accomplishments.Comsat Magazine is pleased to reprint twosuch statements-one from President RonaldReagan. the ether from Vice President GeorgeBush-and to carry the full text of SenatorDanforth's tribute in the CongressionalRecord.

Following the statements, we publishquestion-and-answer format interviews withthe two members of the new Comsat seniormanagement team, Chairman and ChiefExecutive Officer Goldstein and President andChief Operating Officer Joseph

A Letter from President Ronald Reagan

September '3. 1985

Dear Dr. Charyk

I am pleased to congratulate you on yourretirement as Chairman of the CommunicationsSatellite Corporation, Comsat. More than twodecades ago. you undertook an importantassignment from President Kennedy andunder your leadership Comsat began todevelop the commercial potential of satellitetechnology.

Your vision and drive created a globalsatellite system which has become a tool forthe benefit of all mankind and has given birthto our modern communications satellite in-dustry. Thanks to your dedication, our world isnow linked together by a communicationssystem which has turned dreams into thereality of progress.

Again. / congratulate you on yourdistinguished career. on your accomplishments.and on your major contributions to this nation,Thank you and God bless you.

Sincerely

Ronald Reagan

A Letter from Vice President George Bush

September 11, 1985

Dear Dr . Charyk

I am pleased to join in congratulating youon your retirement after more than 22 yearswith Comsat.

Few people have the satisfaction of risingto the top of their industry. Fewer still can beconsidered among the industry's founders anddriving forces. You can lay claim to both ofthese achievements. Without you and your vision.it is unlikely that people around the worldwould enjoy the diversity of satellite servicesthat are available today.

Barbara and I send very best wishes asyou turn your engeries to new adventures.

Sincerely.

George Bush

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Insertion in the Congressional Record ofOctober 15 , 1985 by Senator John C . Danforth

Mr. President, I would like to bring to theattention of my colleagues an event that inmany respects marks the end of an era.Yesterday, October 14. 1985. Dr. Joseph V.Charyk, chairman of the board of directorsand chief executive officer of CommunicationsSatellite Corp. (Comsat), retired. His departurecomes after more than 40 years of distinguishedservice to his country and to his chosen fieldsof aerospace and telecommunications.

This remarkable man's contributions totelecommunications are such that people theworld over who today enjoy the benefits ofsatellite telecommunications services havebeen affected by his activities. For over twodecades. Joe Charyk, as the chief officer ofComsat, has helped to guide and direct thedevelopment of the modern world of satellitecommunications. From its formation in 1963,to the 1965 launch of Early Bird, the world'sfirst commercial communications satellite. tothe present era of modern high-powered com-munications satellites, under the leadership ofJoe Charyk. Comsat has had a prime role inadvancing the state of the art. In addition, JoeCharyk was instrumental in the establishmentand development of the internationalTelecommunications Satellite Organization.Intelsat, which started with just a few nations,has grown to a 110 member organizationwhich today is providing a full range of com-munications services throughout the world,

Mr. President, Dr. Charyk began hisdistinguished career at Comsat in 1963 whenPresident John F. Kennedy asked him toserve as chief operating officer for the thenfledgling new company created by Congressin the Communications Satellite Act of 1962.The corporation had as its mandate theestablishment of a global satellite communica-tions system, and President Kennedy felt hehad located the right man for the job. Indeed.Dr. Charyk's credentials were impressive.

Before joining Comsat, Dr. Charyk waswith the U.S. Air Force as Chief Scientist andAssistant Secretary for Research andDevelopment in 1959, and Under Secretaryfrom January 1960 until February 1963.

In 1955 he served as director of theAerophysics and Chemistry Laboratory ofLockheed Aircraft Corp. In 1956 he was withAeronutronic Systems, Inc.. a subsidiary ofFord Motor Co.. as director of the MissileTechnology Laboratory and later became generalmanager of the space technology division.

From 1943 to 1946 he was an engineerwith the Jet Propulsion Laboratory at Califor-nia Institute of Technology and was an in-structor in aeronautics at California Instituteof Technology in 1945. From 1946 to 1955 hewas a professor of aeronautics at PrincetonUniversity. where he helped establish theGuggenheim Jet Propulsion Center.

Mr, President, Dr. Charyk's educationalachievements match his professionalaccomplishments. He holds a B.S. degree inengineering physics from the University ofAlberta, an M.S. in aeronautics. and a Ph.D. inaeronautics, magna cum laude, from CaliforniaInstitute of Technology. He also holds anhonorary LL.D. from the University of Albertaand an honorary Dr. Ing. from the Universityof Bologna.

He is a fellow of the American Institute ofAeronautics and Astronautics and a memberof the National Academy of Engineering, theInternational Academy of Astronautics, theNational Institute of Social Sciences, a fellowof the institute of Electrical and ElectronicsEngineers, a member of the National SpaceClub, and the Armed Forces Communications& Electronics Association.

In April 1984, Dr Charyk was appointedChairman of the National TelecommunicationsSecurity Advisory Council by PresidentReagan. He is also the recipient of numerousawards including the Distinguished ServiceMedal. the Gughelmo Marconi InternationalAward. and the Goddard Astronautics Award.

Mr. President, through his role in thedevelopment of international communicationsatellites, Dr. Charyk has had a positive im-pact on efforts to make our world a betterplace in which to live. He has helped to makethe concept of a global village a reality.

Following his retirement, Dr Charyk willcontinue to serve as a member of the boardof directors of Comsat and will pursue otherinterests in telecommunications.

Mr. President. the formation of the Com-munications Satellite Corp.. and the realizationof its mandate to achieve a global com-munications satellite system was an immenseundertaking. There were many in Congresswho wondered if the United States had set agoal that was unattainable. Joe Charyk saw toit that the United States met this challenge. Itis with pride that I take this opportunity torecognize him for his achievements.

Q. How has your past experience helpedprepare you for your new position at Comsat?

OOLDSTEIN : Over the last half a dozenyears or so I have been Involved in virtuallyevery single one of Comsat ' s activities. Ofcourse I grew up with our regulated business,which remains-and will remain for some time tocome-the largest and most profitable part ofthe Corporation. But I think I have a well-rounded background and considerable exposureto each one of Comsat 's present activities.

Also I ought to point to my exposure tothe people of the Corporation -not only at thesenior executive level but down through theranks , at least down to what I would call the

middle level of management . Over the pastyears, I have had exposure to virtuallyeveryone in that middle management leveland up . I know them , their capabilities, theirdedication and their expertise , and I think theyknow me well enough to understand what I'mcapable of . The working relationships will con-tinue to be very, very good.

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Q: As you look back on Comsat's 22 yearsof history, what kinds of things strike youas most noteworthy?

GOLDSTEIN : There have been so manynoteworthy developments that it is difficult toknow where to begin. Next in importance tothe creation of Comsat itself as a result ofthe Governments decision to privatize this in-credible technology-and that was a major,major decision on the part of the UnitedStates Government-is the creation of theglobal system, the bringing of the technologyto all the nations of the world-large and small,rich and poor, near and far. That is one of thegreat events of the century and certainly anenormous tribute to the Government.

When you assess the achievements ofComsat, you have to say that Comsat hasplayed-and is continuing to play-an impor-tant role in changing world culture. I reallydon't think that that is too broad a claim.Communications is the first step towardunderstanding. Potentially contentious dif-ferences can be kept from getting worse.Physical distance between nations alone nolonger can be blamed for the birth of dishar-monies. When, for example, billions of peopleview an Olympic Games telecast on theirtelevision sets. brought to them via theIntelsat system. there is the possibility thatmany of those people will feel some sense ofthe common connections of all humankind.

Satellite communications is also helpingbusinesses operate more efficiently on aworldwide scale as well as within their homecountries. Bringing people closer together andthe improved operations of businesseverywhere are outgrowths of commercialsatellite communications technology, and thisComsat has brought to the world.

One specific achievement that deservesto be singled out was the creation of ComsatLaboratories . This outstanding center ofsatellite communications research anddevelopment has been directly responsible forthe enormous increase in communicationscapacity in space and the attendantdecreases in the cost of using that capacity. Ithink that it is interesting to note that our deci-sion to enter the manufacturing business wasmotivated by our desire to bring to themarketplace the benefits of ComsatLaboratories R&D in the realm of communica-tions hardware.

Another major step for us was the deci-sion back in the early 1970s not to limitourselves only to the jurisdictional businessbut rather to begin to branch out into othernon-jurisdictional areas, some of themregulated by the FCC, some of them not. I amreferring, of course, to the creation ofComsat General. which has been quite suc-cessful and profitable. We wanted to bring thebenefits of satellite communications not only

to the international community but todomestic customers as well. We've alwaysfelt-and the U.S. Government agreed-thatthis was consistent with our basic charter,certainly not inconsistent with it. Also, ifComsat was to thrive, if we were to have theexpertise that we needed, if we were to havethe reservoir of employees required to per-form the total job, we needed to reach a cer-tain critical mass as a corporation. Thejurisdictional business alone would not haveallowed us to do that.

Q: Are there personal qualities about Dr.Charyk 's leadership during the last 22years that you might want to comment on?

GOLDSTEIN : In Dr Charyk, we have a manwho has been called 'the father of anindustry '' Indeed. he has led Comsat fromthe very beginning, combining the vision andpractical know-how to make the companyprosper.

Of his personal attributes, I'd have to saythat he is the most intelligent person I haveever had the opportunity to work closely with.One of his most impressive characteristics ishis ability to analyze any situation quickly andto be able to identify all the options. Whetherhe's dealing with a technical problem. whetherhe's dealing with a marketing problem or legalproblem, he can quickly and easily identify allthe pitfalls and all the opportunities. For abusinessman, that's an amazingly importantcharacteristic to have. And that's only one ofhis many assets.

He is an extremely hard-working man,who. I think, gets bored when he doesn't have50 or 100 things to occupy himself with. He isabsolutely indefatigable. I've never seen himact tired. I've never seen him give up on asituation or problem. I've never seen him actin any other way when faced with a problemexcept to say, "This is something we have towrestle to the ground." That sets an awfullygood example to the rest of the Corporation.He's also a marvelous speaker, the bestextemporaneous speaker I've ever seen.

I think I've just identified an awful lot ofcharacteristics that are essential to being asuccessful CEO, which Dr. Charyk certainlyhas been.

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Q: In what ways will the accomplishmentsof the past be of benefit to you during yourtenure of leadership?

GOLDSTEIN : The Corporation under theeadersh c of Dr. Charyk in these 22 yearsnas built an amazing reservoir of goodwillamong a growing coterie of customers. Thereis literally a huge amount of confidence inComsat 's technical abilities on a worldwidebasis. That is so very important. Comsat isunderstood to be a corporation that doesthings the right way, always provides a qualityproduct whether it's a service or a piece ofhardware. Obviously that is an extremelyimportant asset of this Corporation and onethat I would strive to maintain during mytenure. and I know it's one that MarcelJoseph and the whole senior managementteam feel very strongly about. That's part ofour legacy.

Q: What changes are taking place, andwhat changes need to take place to makeit possible for the Corporation to meet andovercome the challenges ahead?

GOLDSTEIN : The world of telecommuni-cations-both products and services-ismore competitive today than it ever was inthe past and, as we look ahead to the tomor-rows, will become increasingly competitive.Therefore, Comsat must learn to live in anever more competitive world. Having saidthat. let me quickly add that Comsat hasfaced competition from the moment it cameinto being.

It has been said of us that Comsat is likea utility. I have never liked that analogy. Inever felt that so-called complacency that issupposed to be endemic to the utilitybusiness. What we faced initially may havebeen called "modal competition," it wascompetition, and it forced us to fight like hellto demonstrate the supremacy and the ver-satility of satellite communications versusother modes-versus submarine cables. versusterrestrial communications. We fought equallyhard to demonstrate the cost-effectiveness ofsatellite communications versus all othertypes of communications. We have won manyof those battles, but this is not a stagnantsituation. We have to refight these battles andrewin them constantly in the marketplace.

While continuing to wage the on-goingbattles, we also have to work on the newchallenges. We have to learn to choose ourintroduction of new products and new ser-vices more effectively. That's one key to thefuture success of the Corporation. And wehave to confront head on the fact that com-petition in the jurisdictional area is increasingmany many fold.

With the introduction of optic fiber cablesunder the oceans of the world around the corner,with the Commission having recently authorizedseparate satellite systems , we have to beextremely conscious of the needs of ourcustomers with respect to our Intelsat and In-marsat services The introduction of new ser-vices in response to customer needs andvigilance about the cost - effectiveness of allservices are going to be the key to the growthof the jurisdictional areas of this Corporation.

Q: The final question. What will the Com-sat of the 1990s look like if you are suc-cessful in bringing about the changes thatyou believe are necessary?

GOLDSTEIN : The Comsat of the 1990s willhave the same inherent compartmentalizationwi th respect to its jurisdictional and non-jurisdictional businesses, partly as a result ofour desire to isolate them one from the other,partly because the FCC wants them soisolated. The total pie that the jurisdictionalservices are a part of, namely internationaltelecommunications and information services,will grow very dramatically, and Comsat willgarner an important share of that growingmarket. However, I think the Corporation willlook quite different by the time the next five toseven years have gone by, principally.because the non-jurisdictional areas willbecome an increasing part of the Corporation.

Today about half of our revenues arejurisdictional and half are non-jurisdictional,but a much greater proportion of our net earn-ings or profits come from the jurisdictionalarea-perhaps 80 percent.

From here on, I expect to see a fastergrowth rate in the competitive businessesthan in the regulated business. The jurisdic-tional business will continue to grow, ofcourse. but not as fast

In order for our profits to grow at the ratewe'd like, we must capitalize on the growththat's expected in the competitive businesses.Within the next few years I expect our com-petitive businesses to be larger and more pro-fitable than our jurisdictional business.

That means we are going to see substan-tial growth in the next five to seven years inthe newer areas. We will see a largerspecialized manufacturing activity. We will seea much larger non-jurisdictional competitiveservice activity through Comsat General Cor-poration and through Comsat InternationalCommunications, Inc. Each of them willgrow significantly and at a very rapidrate during the next five years. That's thetype of Comsat that I see by the early 1990s.Bringing it about will entail changes that arereally quite exciting to contemplate.

Q: How has your past experience helpedprepare you for your new position at Comsat?

JOSEPH The big challenge we face Is beingable to transform Comsat from a companyalmost exclusively involved in a rate -regulatedor jurisdictional business into a company thatis competitive in every respect. My ex-perience in the last 25 years has been inbusinesses that were highly technical, highlymarket oriented , and highly cost competitive. Ibelieve that this kind of orientation is enablingme to play an important role in finding newbusiness opportunities for Comsat and mak-ing those changes in our operations, in ourculture, and in our structure so that we canbecome a company that is market driven, acompany that is fully competitive , a companythat lives in a world where costs cannot bepassed on to the user .

Continued next page

As for my personal accomplishments, Imight point to the fact that I have successfullymanaged growing businesses and maturebusinesses in good times and bad, includingtwo very difficult recessions. Adapting a com-pany to the marketplace often requiresredirecting, restructuring and. wherenecessary. rationalizing them to meet chang-ing needs. I see this as valuable backgroundas we move Comsat from this rate-regulatedenvironment into a cost-driven, cost-competitive company of the 1980s and 1990s.

Q: As you look back on Comsat's 22 yearsof history, and on Dr. Charyk's leadershipduring that period, what strikes you asmost noteworthy about this company andabout him as well?

JOSEPH : One of the key assets of this com-pary. ceve!oped over the last 22 years, is itssuperb technical capabilities. What we havegoing for us is Comsat Laboratories. It's anenormous advantage. I believe that we havewhat I would call an unfair advantage over thecompetition-a perfectly legal, unfairtechnical advantage over the competition, It'sas a result of Dr. Charyk's leadership, as Isee it, that these laboratories have grown andflourished and been able to achieve so much.The challenge now is to refocus this immensetechnical capability in the directions that weneed to move to support the competitivebusinesses,

Speaking personally about Dr. Charyk, Ithink that the worldwide reputation he hasachieved as a leader in the field of satellitetechnology has been of very great benefit toComsat in general.

Q: In what ways will the accomplishmentsof the past be of benefit to you during yourtenure of leadership?

JOSEPH : We are going to be capitalizing onour strong systems and networking technicaland operational skills. We have some specificprograms already in-house that we can buildon-HI-Net. NBC-and we are working onwinning other programs which will utilizethose skills. The five-year business plan ofComsat International Communications, Inc.(CICI), is particularly exciting. Basically, weare going to build on our networking and

system design skills in the services business.and we are going to continue to grow ourmanufacturing businesses.

Q: What changes are taking place andwhat changes need to take place, as yousee it, to make it possible for the Corpora-tion to meet and overcome the challengesahead?

JOSEPH : The biggest change that's takingplace s a change in our culture. We'rechanging from a culture which is driven bythe regulated businesses to a culture drivenby the market, to a culture driven by cost. toa culture that asks, "What does the customerneed? Now what can I as a Comsat employeedo to address the customer's need-to solvethe customer's problem

Q: Finally, what will the Comsat of the1990s look like if you are successful inbringing about the changes that youbelieve are necessary?

JOSEPH : I look for the Comsat of the 1990sto be a billion-dollar-plus corporation, with asignificant percentage of its revenues comingfrom manufacturing and the remainder fromthe services businesses with the split roughlyequal between the rate-regulated and thecompetitive services activities.

And I'm excited about the many highlytalented Comsat men and women who areworking to make our company grow andprosper in the years ahead.

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by Stephen A. Saft , Editor,Comsat MagazinePhotography oy William J. Megna,Chief Photographer.

Shortly after 7:00 a.m. on Thursday,September 19, the earth shook violentlythroughout most of Mexico, driving the Richterscale up to a frightening 8.1. When the shakingstopped about one minute later, there weredead and dying in several of the country'stowns and villages, but by far the worst hitwas that nation's capital.

Mexico City, the world's second largestmetropolitan area , had suffered the loss of250 buildings. Another 50 were dangerouslyclose to falling, and about 1,000 more hadexperienced some form of damage. Twoweeks after the disaster the dead were stillbeing counted, a toll that was expected toreach at least 9,000. With the death anddestruction came another loss-the nation'sinternational Iona distance telecommunica-tions system.

Over 24 hours after the first quake-therewere a total of at least two dozen aftershocks,of which the worst (7.5 on the Richter scale)occurred 36 hours after the main event-theonly reliable long distance communicationsavailable to a large part of Mexico was viashort wave radio. How was the world to learnwhat help was needed? What role couldsatellite communications-and, specifically.Comsat-play?

Many different people at many differentComsat business units were asking themselvesand each other these questions in the hoursafter news of the disaster had first leaked tothe outside world. Engineers at ComsatLaboratories in Clarksburg, Maryland, talkedwith engineers at Comsat General Corporationin Washington. D.C. Executives at ComsatTeleSystems. Inc., Fairfax, Virginia. talked toexecutives at Comsat Maritime Services, alsoin Clarksburg. These were the reactions ofpeople touched by what they knew of thetragedy who strongly believed that satellitecommunications could play a useful role.

At the same time, the major networks inthe United States and other U.S. newsorganizations were in the midst of their ownfrantic search to find ways to circumventMexico's crippled telecommunicationssystem. It is not surprising that these parallelefforts on the part of Comsat and the newsorganizations would eventually converge. Noris it surprising That as a result of such a con-vergence Comsat and NBC would be workingclosely together. Comsat and NBC have atrack record of cooperation. Comsat Generalis the provider of the dedicated Ku-Band

Opening Pages, Rescue team from army of Mex-ico works feverishly to find survivors among theruins of apartment house.

satellite distribution service used by NBC andits affiliates . What is extraordinary is that pull-ing together like this would produce suchquick results.

About 36 hours after the main event, thefirst of three brand new Comsat satellitecommunications oroducts-the ComsatTeleSystems TCS-9000 earth station in a suit-case -would reach Mexico City. About 24hours later, Comsat General 's SkyBridoesatellite broadcasting vehicle (SBV) would beon the scene, Another 24 hours later, thesecond TeleSystem TCS-9000 suitcase unitwould arrive.

The story of SkyBridge's trip to Mexico Citybegins midday Friday (September 20) whenalerted by strong expressions of interest by someNBC executives, engineers and technicians work-ing in a facility near Dulles Airport began remov-ing the vehicle's Ku-Band antenna Crewmen

Top, it's the evening of Saturday. Sept 21, andSkyBridge has lust been unloaded from cargo plane atMexico City airport Now dish antenna, removed so thatSkyBridge would fit in the cargobay, must be put back inplace. Middle, Many cars. hit by portions of failingbudding; also damaged Below Right , Volunteersat Juarez Hospital ruins huddle to plan rescue strategies.

were keeping their respective fingers crossedthat, with the antenna off, the vehicle would nestwithin the confines of a Hercules commercialairliner (C-130) cargobay. That evening, MichaelSherlock, NBC Executive Vice President forOperations and Technical Services. called WilliamL Mayo, President of Comsat General, to con-firm NBC's desire to have SkyBridge in MexicoCity as soon as possible. Soon, its antennaresting beside it instead of perched on its top,Comsat General's new satellite broadcast vehi-cle would be or the cargo plane flying south.

Just a little more than 24 hours after theSherlock phone call, SkyBridge would be on sta-tion in Mexico City, and in the wee hours of Sun-day morning (September 22 at 2:01 a.m. easternstandard time) it would establish via Mexico'sMorelos satellite a video link with the NBC mastercontrol earth station in Burbank, California.

The Comsat General SkyBridge satellitebroadcast vehicle would bring the world the firstlive video coverage of the disaster from its van-tage point less than a block from the remains ofJuarez Hospital. It was because the van was onsite that Americans and people in many othercountries were able to watch the desperatesearch for survivors among the mounds of ce-ment and steel rubble as NBC's Tom Brokaw orABC's Peter Jennings or another broadcastertalked to us from the scene. When survivorswere found-an injured doctor, an injured nurse.babies still in their hospital cribs-it was the vanthat uplinked the images. and we shared with thepeople of Mexico the emotional lift of knowingthat the relentless rescue efforts of thousands ofvolunteers were not in vain,

Over a day before SkyBridge arrived, the firstof two TeleSystems TCS-9000 satellite earth sta-tions was on duty at Channel 13, Mexico City'sonly surviving television station. Early on Friday(September 20), an executive of ComsatTeleSystems had talked to an executive at NBCabout the new suitcase product. Within hours, thenetwork, which had first become aware of theproduct during the TWA hostage crisis earlier inthe year, made the decision that it wanted thesystem in Mexico City as soon as possible Thatfirst TeleSystems suitcase unit reached its finaldestination on board a Learjet chartered by NBC.

Below Left, Temporary infirmary set up at site ofJuarez Hospital ruins to provide medical aid to survivorsand rescuers alike. Below, Medical people and other

rescue volunteers at Juarez Hospital site patientlyawait survivors Surviving babies were brought down onladder, rear. Facing Page, Top Right, SkyBridge

receives police escort

Accompanying the brand new unit was James I.Smith, TeleSystems' Senior Technician, MobileSatellite Systems. Two days later the secondTeleSystems suitcase earth station would be onits way to Mexico, this one to be set up in aroom in the El Camino Real Hotel.

To get both the TeleSystems suitcase earthstations and the SkyBridge satellite broadcastingvan out of the country required obtaining U.S ex-port licenses, normally a time consuming pro-cedure. NBC News President Lawrence K.Grossman called Secretary of CommerceMalcolm Baldrige directly, and within hours thenecessary paperwork had been done.

Equally quick response was needed from theInmarsat organization in London in order to havethe two TeleSystems TCS suitcase units commis-sioned. The TCS makes use of the global Inmar-sat system. "By making something like 100telephone calls and with the help of MaritimeOperations and Inmarsat Relations in ourMaritime Services group, we were able to get thesuitcase units commissioned in the course of onebusiness day," says TeleSystems ' Edward J.Bender, Jr, Regional Marketing Manager, MobileSatellite Systems. "George Tellmann was atremendous help in bringing this about," Benderadds. (George Tellmann is Vice President andGeneral Manager, Comsat Maritime Services.Comsat is the U.S. signatory to and largestshareholder in Inmarsat l

NBC was the owner of both suitcase units.but just as with the Comsat General ownedSkyBridge van-on loan to NBC, and also usedby ABC and 11 NBC affiliates-NBC permit-ted other organizations to make use of theequipment. In this case the users includedradio broadcasters, print journalists as well astelevision people. And NBC also let peoplecall worried family members back in theUnited States.

In an article in the September 30, 1985issue of Broadcasting, the weekly magazine,Art Kent. Vice President, Operations, NBC

21.

News, describes the experience of hisorganization with the two TeleSystems units.Stating that both operated "flawlessly," hethen continues, "They're incredible. Oursenior producer on the scene, Mauri Moore,called me at home in northern New Jersey. Itsounded as if she was right around the cor-ner."

In an interview on the scene in Mexico City,NBC's Mauri Moore made clear how both theComsat General SkyBridge satellite broadcastvehicle and the TeleSystems suitcase unitswere used, the earth station telephones sup-porting the use of the van almost everyminute of the day.

Using the telephones, she told us. "wecoordinated the feeds" from the van. 'I wouldcall my satellite desk in New York on thetelephone. At the same time, I would be on alocal telephone to the feed point,' the van.

That way I could communicate to New Yorkwhat they were seeing. whose material it was.whether it was NBC material, ABC material,CNN material or affiliate material.'' If therewere glitches in the taping of the feeds, thepeople in New York, would tell Moore about it,and in turn using her local communicationsloop to the van she would tell the crew to"back up" their tape and ''feed it again."

Moore adds. "On a personal level, it thesatellite telephone] was a means to get a fewmessages out for a few people in this citywhose families were worried about them.''Then she notes, 'The telephone reallybecame the most important tool for me here,even more than the truck [the van]. The truckwas fabulous for showing that our anchormanwas on location... but in terms of facilitatingcommunications the phone was the bestthing, the very best thing.''

Steve Smith, Assignment Editor with ABCNews' Southern News Bureau in Atlanta.played the same role for ABC that MauriMoore played for NBC, namely that of coor-dinating producer. Smith told us, "We utilizedit [the satellite telephone] to communicatewith our offices in New York so that we couldtell them what we were planning to do andthey could tell us their suggestions for whatwe should do. It was absolutely essential thatwe talk with New York... The comments Iheard from [the people I was talking to in]New York were. 'It sounds like you're aroundthe corner.' The sound quality was excellent."

NBC's Moore and ABC's Smith did theirsatellite telephone calling from either Channel13 or the El Camino Real Hotel. Initially work-ing 24 hour days, or close to it, TeleSystems'Jim Smith stayed on duty with the unit atChannel 13. At the El Camino Real Hotel.TeleSystems' William H. McGuire. Manager.Maritime Services, who had accompanied thesecond unit on its trip to Mexico City. was onduty. Both men served as gatekeepers atNBC's request.

"We had a sign up sheet for everyonewho wanted to use the telephone," McGuireexplains. "You signed up for a five-minuteslot. and then you had to be here at yourassigned time or you got passed over. Wehad a line of people waiting in the hall outsidethe room most hours of the day. One time Icounted, and there were 24 people lined up inthe hallway. In the room itself we had asmany as six people sitting on the bed waitingto use the telephone.

"One fellow came to me to sign up,"McGuire continues. "Then he went back intothe hall and found himself a chair. He had alittle portable typewriter with him, and whilehe was waiting for his turn to come up he hadthe typewriter on his knees. He was typing hisstory as he waited so that he could read itover the telephone when his time came.

"The TCS performed like a total winnerthe whole time." McGuire notes. "Even whenthe antenna was facing flat into the sun, itwas just great. I know what to listen for, andat those times when the sun was directly onus I could detect a slight increase in noise.The user never noticed a thing. Really, theperformance was absolutely outstanding."

Outstanding performance is an equally aptdescription of Comsat General's SkyBridgevan. A Comsat engineer who lived with thevan for practically its entire stay in Mexico City isErnest P. Ekelman with the Earth TerminalAntenna Department at ComsatLaboratories in Clarksburg, Maryland. SaysEkelman, "It's a tremendous tribute to JimDelany and the people working with him, whoplayed such a major role in the design of the

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Facing Page , Top, Comsat TeleSystems TCS-9000 earthstation in a suitcase set up on roof of Channel 13, Chapultepecsection of Mexico City . Middle, Destruction of telephonefacilities, such as Telefonico Centro building, caused seriousdisruption of telephone services for Mexico City residents.Facing Page , Bottom , NBC News correspondent Alan RWalden calls in his story on TeleSystems unit from 23.room at El Camino Real Hotel.

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24.

van, how well it came through for us. It is avery well thought out, very well put togetherpackage." (James F. Delany is Manager,Antenna Engineering, Comsat General Cor-poration.)

''When you consider that Mexico City wasthe very first use of the van in the field andthat it worked so very well, you really have togive a tremendous pat on the back to thedesigner and the design," Ekelman adds. Wetook a product that had only recently been puttogether, and we then proceeded to use itpractically 24 hours a day for four straightdays. It's amazing how versatile and adap-table the van is."

Ekelman was one of five people whomade the trip to Mexico City with the van. Hewas invited to take part because of his fieldand antenna experience, but also because hespeaks Spanish-and too because of a brilliantstroke of luck that resulted in his having infor-mation that would prove invaluable Six weeksbefore the first series of violent tremorsstruck, Ekelman was in Mexico City meetingwith engineers of the Mexican government'sSCT, the agency charged with managing thenation's telecommunications systems.

Ekelman was brought in to study thefeasibility of retrofitting Mexico's single-polarized C-Band Morelos system antennasfor dual polarization . During his stay. he waspresented with full specifications on thesatellite coverage footprints in both the C andKu Bands of the single Morelos satellite thathas been launched so far This informationwould prove absolutely critical to the com-munications engineers at Comsat GeneralCorporation in the hours immediately followingthe disaster as they were preparing the "com-munications link budget'' (or usage strategyand plan) for the soon-to-be airlifted SkyBridgevan (It is possible that SkyBridge may havebeen able to use either an SBS or an Intelsatsatellite for its uplinks. Either would have en-tailed considerably more complications, andlive transmissions could never have begun asquickly as they did.)

The story of Ernie Ekelman and why heaccompanied SkyBridge to Mexico Citymakes vivid a lesson that emerges clearlyfrom Comsat's experience in Mexico CityThat is the paramount importance of acorporation's employees in every aspect of itsinteraction with the world outside its doors.Comsat is services, and Comsat is products,but it is also people, people who design. buildand maintain those products or see to thethousands of details necessary to make cer-tain that services are offered without interrup-tion or delay Comsat General's SkyBridgeand Comsat TeleSystems s TCS-9000worked-and worked brilliantly-in Mexico Ci-ty. and that was no accident. It happenedbecause of the dedication of employees likeComsat TeleSystems' Jim Smith and Com-sat Laboratories' Ernie Ekelman, the halfdozen or so other Comsat people on thescene and hundreds of Comsat support peo-ple back in the United States.

"People"-the importance of Comsatpeople-is the theme of a brief ''thank you"letter from NBC's Bobby Lee Lawrence,Director, Network E J (Electronic Journalism)Editing, to Comsat TeleSystems' Ed BenderIn his letter. Lawrence is referring theTeleSystems TCS-9000. but his se,,: ^-entscould apply equally well to Comsat General'sSkyBridge.

"Please pass on our gratitude to your peo•ple for their effort above and beyond thecall." Lawrence begins. 'Everyone was will-ing, able and dedicated to assisting NBCNews in our efforts in covering the earth-quake in Mexico City.''

Lawrence concludes, "We know thesystem works and now we know why "

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Top floor of this clothing store fell into the floor below. Now the building isuseless . Inset Top , Tom Brokaw, anchorman of NBC Nightly News,stands in doorway of Comsat General SkyBridge van and listens to amedic recount his version of the search for survivors at Juarez Hospitalsite. Inset Bottom , TeleSystems' Jim Smith, right foreground, with groupof newsmen from NBC and other news organizations. In the center, TCSsuitcase telephone.

25.

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EARTH STATIONIN A

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Pop these suitcases open, do a little set up, andyou can talk to almost any location on earth. TheTCS-9000 is from Comsat TeleSystems, Inc., thesame company that brought the world the light-weight MCS-9100 ship earth station.

In a recent live closed-circuit telecast , broughtto an audience in Washington, D.C., via theIntelsat system, Arthur C. Clarke referred to abrief item in the Notes section of the previousissue of this magazine. The audience wasassembled in Washington's National PressClub to celebrate the 20th anniversary ofuninterrupted international communicationsservice via satellite , and, speaking from Col-ombo, Sri Lanka. Clarke, the father of thecommunications satellite concept, was avail-ing himself of the very system that was theembodiment of what he had first proposed in1945. Asked by a reporter, heard on an audio-only Intelsat-delivered circuit from Europe,what he considered the important new trendsin the technology, Clarke opened his copy ofthe magazine and then pointed to a pieceabout "an earth station in a suitcase."

For Clarke, probably best known for thescience fiction novels 2001 and 2010, theearth station in a suitcase. a development ofComsat TeleSystems, Inc., is a prime exampleof an important new trend. It is a trendtowards very small, very light, hence very por-table, hence very "user friendly" earth sta-tions. It is a trend that means that the benefitsof satellite communications now can bedirectly experienced by almost anyone inalmost any location at almost any time on thisglobe.

The new TeleSystems product isdesignated the TCS-9000, and is, in fact,housed in two weathertight suitcases andweighs a total of about 100 pounds. TheTCS-9000 satellite earth station is designed towork with the global communications systemof Inmarsat , and it has received an un-qualified type approval from the London-basedorganization. As an Inmarsat compatiblesystem, the TCS-9000, which uses only 385watts of power, lets the user connect with theworldwide public switched telephone network.Hence, the TCS-9000 can be used for telex ordata traffic as well as for voice. And setuptime for the unit is 15 minutes or less even forthe average nontechnical operator.

A variety of print and broadcast newsorganizations covering the brutal Mexicanearthquake learned first-hand just how usefulthe TeleSystems TCS-9000 can be. Two suit-case units purchased by NBC were still in usein the ravaged city over a week after thedisaster-one at Channel 13, Mexico City'sonly surviving television station, one at ElCamino Real Hotel. NBC, while making exten-sive use of the links for its own needs, permit-ted other broadcasters and newspaperreporters to take advantage of them as well.

To find out more about the TeleSystemsTCS-9000 and, in fact, about all that

TeleSystems is doing to make satellite com-munications equipment lighter, smaller andmore flexible, we went to see John M.Pientka. Vice President, Mobile SatelliteSystems. at the main offices for ComsatTeleSystems. Inc., in Fairfax, Virginia.TeleSystems is a part of the ComsatTechnology Products (CTP) group. "When youpick up the telephone on the TCS-9000,"Pientka told us, "it's like picking up the tele-phone in your office or in your home. You canmake a direct dial call almost anywhere in theworld, and almost anyone with a telephonecan reach you. That's a very powerfulcapability to have when you're at an other-wise inaccessible location and getting andreceiving information is extremely important toyou.

"The terminal is small, and it'slightweight," Pientka continues. "In fact, it'sso small and lightweight that it is handcarriedin two suitcases. You can transport it as lug-gage on board a commercial aircraft. You cancarry it in the trunk of your car. It will stow onboard a helicopter or executive jet or jeep.And once you've reached your destination,you can set it up in 15 minutes or less. Thedish is made up of four petals of a graphiteand fiberglass composite and once assembledis 35 inches across.

"What you have with the TeleSystemsTCS is a connection of long distance quality,"Pientka adds. "There is no static as on HFradio, and you don't go through several dif-ferent stations. Hence. it's a private call. It'snot broadcast, and so your conversations arenot heard by anyone who wants to listen in onwhat you're up to. And a nice benefit with anyproduct that works with the Inmarsat systemis that you only pay for communicationsusage when you're actually using it. Whenyou place a call, then and only then does themeter start to run."

Pientka explains that traditionally withsatellite systems "you have to arrange for andhence commit yourself to pay for space seg-ment ahead of time. You pay for it whetheryou use it or not. With the TCS-9000, you payfor usage in six-second increments-just likewith any long distance telephone call. Thatcan be very cost effective."

Meeting the need for communications ofnews organizations seeking service in remoteor devastated areas is expected to be justone of several uses for the TeleSystemsTCS-9000. Governmental and private agenciesperforming fire-fighting and other types ofemergency services, search and rescue,police work, and management of large tracts

Photography by William J. Megna,Chief Photographer, Comsat Magazine.

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Above, In minutes, TeleSystems TCS-9000 earth station insuitcase can be set up anywhere, including airport tarmac.

and user can be connected to worldwide telephone networkRight, TCS 9000 is outgrowth of TeleSystems' very

successful effort to substantially reduce size and weight ofship earth stations. as exemplified by its MCS-9100

MCS-9100 has found a strong market among yacht owners.Recently system was installed on the yacht East Wind.

91 foot Burger Boat, here shown at Montauk, Long Island.Yacht Club Facing Page, Bottom , Captain Joel Chunn,skipper of yacht East Wind. using MCS•9100 telephone

from bridge.

also should be customers. For example, wethink well sell a lot to telephone companiesand electric utilities," Pientka states "Whenlines are down due to a storm, emergencyservice people need alternate communica-tions so that they can get into the public net-work. Say we have an ice storm in Virginia,and they need to reach a sister company inPennsylvania to request the immediatedelivery of replacement cable."

Pientka also sees a big market among thegovernment agencies and business organiza-tions operating in third world countries. Lack-ing the kind of terrestrial networks that arecommonplace in the developed world, thepeoples of these nations will find theTCS-9000 a quick way of gaining access tothe international public switched network.

And there is still another important market,says Pientka. and that is the worldwide oil ex-ploration and oil production industry. Onecustomer. special zing in well-logging, equips itstechnicians with a TeleSystems TCS-9000 satelliteearth station. Using the unit, the technicians in-stantly transmit, via the Inmarsat system, theirdata to a centralized computer facility where it isprocessed and then analyzed by specialists. If inthe opinion of the experts the well is unproduc-tive, say in an oil exploration situation, the oil rigstaff can be told about it immediately. No morewasted days of extremely expensive downtimewhile a well-logging tape is sent by airplane to theexperts.

Tne TeleSystems TCS-9000 satellite earthstation, Pientka says, grew out of developmen-tal work on TeleSystems' newest generationmaritime satellite earth station, the MCS-9100.Known for its light weight and small, compactprofile, the MCS-9100 produced quite a stir inthe maritime community when it was first in-troduced about a year and a halt ago. For thefirst time, satellite communications wasavailable to vessels as small as 50 feet.

(See the article about the sea trials of theMCS-9100 in Comsat Magazine No. 15, page37ff.)

"What we're doing," Pientka explains, 'isworking with a core technology and applying itto as many products as we can. The goal ofthis effort is to bring the benefits of satellitecommunications to as many people as possi-ble through products that are easier to installand use and are less expensive, while remain-ing highly reliable.

'The MCS-9100 is an extremely good ex-ample of how this goal is being met,'' Pientkacontinues. "The light weight and the smallersize of the earth station opened up twocategories of vessels-yachts and fishingboats-a market that just was not availablebefore. And the MCS-9100 has some other ad-vantages that may not be readily apparent.Because of its reduced weight, it is cheaperto ship to the customer and cheaper to installthan the older generation of ship earth sta-tions. The unit simply can be carried on boarda vessel by one or two people. You don'tneed big cranes and heavy lift helicopters tocarry out an installation."

Does the advent of systems like theTeleSystems MCS-9100 and the TeleSystemsTCS-9000 mean that the two-way wrist radioof cartoon character Dick Tracy is just aroundthe corner? John Pientka answers "yes.""What the user communities are telling usand what economic considerations and theregulatory situation are pushing us toward aresmaller and smaller and lighter and lighterequipment,'' he says. "A commercial wristradio usable for two-way communications withanyone anywhere in the world is a lot closerthan the average person suspects "

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. ^^^ It b l 1984 Nt i hdegan on a casua ur ng t^ no e e a-`G, tr ^gNG ^^ tional Association of Broadcasters ' convention

Sa Ito aG° oj^ in Las Vegas . Speaking from Las Vegas viaGOB satellite, a news director for the NBC affiliate

<^G o^ OO^in Minneapolis asked Comsat ' s Robert Kinzie

ther theSS ^Gea trovid o or rt dhi stat on t bl Kt

^^p ansp u-e s a eBand uplink to provide live news feeds fromthe field to the studio on a regular basis''Turn around and meet our sales represen.tatives,'' Kinzie, who is President of Comsat'sCommunications Services Division, said.'They'll get you one '

On that day. Comsat General begandevelopment of its latest service to the videodistribution industry. Today. after over a yearof intense research and development, theCompany is offering a new mobile uplink ser-vice, providing broadcasters and other videodistribution businesses a sophisticated. state-of-the-art tool designed to allow live. remotevideo feeds from anywhere in the country totelevision studios or other video productionfacilities

Comsat General 's new satellite broad-cast vehicle (SBV) is not the company's firstendeavor in providing the broadcast industrywith flexible and mobile satellite services.Already, the Company operates six 18-wheelersas a major component of its contract with theNBC television network The trucks traversethe country on a weekly basis, providing NBCwith uplinking facilities for major sports, news,and other live events.

But Comsat General 's latest version, calledSkyBridge. meets a different need In thehighly competitive broadcasting industry,where being first means more revenues. newsexecutives are looking for ways to reduce thetime to report fast-breaking events.Aggressive broadcasters are in an industrywhere pictures really do mean more thanwords. "Live at the scene" has become an in-creasingly powerful catchphrase in the racefor ratings supremacy.

Only a few short years ago, the primarytools for remote feeds were sophisticated"electronic news-gathering" (ENG) vans,equipped with microwave transmissioncapabilities. Then, broadcasters began usinghelicopters in the race to report a majorevent

These mobile services are still in wide usetoday. But increasingly broadcasters arefinding that events affecting the lives of theirviewers are not necessarily confined to thegeographic areas which can be served byhelicopters or ENG vans. What happens when

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the local football team goes to the Superbowl''How can the local news cover a remote forestfire which threatens the homes of its viewers?If the U.S. Congress or the state legislature isdebating an issue of major concern, how cannews directors relay a live report fromWashington or the statehouse to viewers onthe late -night news?

As their desire to cover even more distantevents increased, broadcasters began lookingto satellite communications to bridge the gapEven then, the expense of such coverage orterrestrial interference for older generations ofsatellites posed a major barrier.

Advancing technology provided the answer tomore widespread use of satell ites- Ku-Bandsatellites . first developed by Comsat. allowedusers to bypass local interference barriers.Smaller earth stations could also be used withthe more powerful spacecraft, which reducedcosts and made possible the use of smallermobile units.

Today, most broadcasters believe Ku-Band systems are an ideal way to provide livefeeds from the field to the studio. particularlyfrom distances which until now could not bereached by conventional mobile services. In-creasingly. Ku-Band transponders are beingused to "backhaul" live or taped feeds tostudios for editing or immediate transmissionto television viewers.

The heart of Comsat General 's transpor-table uplink service is the van itself JimDelany, Manager, Antenna Engineering, proj-ect manager for the development of the vanand a 25-year veteran in the design of satellitehardware, initiated an exhaustive designreview of transportable satellite equipment."We were not satisfied with products alreadyon the market," Delany recalls. "Our goalwas to build from the wheels up as stable aplatform for the uplink as possible, using arelatively small, custom-designed vehiclecapable of transmitting a signal to the studiowithin fifteen minutes of its arrival at a site."

Based on his study, as well as numerousconversations with broadcasters, Delany andhis staff , which included Engineer PeterCrump, designed a sturdy, double-axled vehi-cle, measuring 19 feet long, 8 feet wide, and10 feet high. SkyBridge is equipped with aunique motorized 2.4 meter diameter antennadesigned by Comsat General and RadiationSystems. Inc. The operator can raise andlower the antenna mechanically from insidethe vehicle. Because of its unique roof mount,the antenna provides 355 degrees of azimuthand 90 degrees of elevation coverage, permit-ting operation from nearly any orientation.

The electronics package for SkyBridge in-cludes two redundant high power amplifiers, avideo receiver for monitoring, and professionalvideo and audio test equipment. All equipmentis mounted on easily accessible racks, withample room for installation of editing and pro-duction equipment as required Two 6.5kilowatt generators provide sufficient power tosupport the electronics package as well asthe onboard air conditioner.

Other standard features include motorizedjacks on each corner for stability, an optional

microwave line-of-sight transmission systemusing a pneumatically-operated elevating mastand antenna for use by the mobile unit'scamera crew, and an alarm system designedto alert the operator of operating malfunctionsand to provide automatic High PowerAmplifier (HPA) switchover.

Also included as part of the standardpackage are an external lighting system fornighttime feeds, and a vehicle securitysystem. The on-board communications systemfeatures telephone jacks, a cellular radio unit.and a unique audio system to provide two-wayvoice communications via satellite betweenSkyBridge and the studio as well as Comsat

General 's Operations Center.While this equipment package is con-

figured to meet the needs of video broad-casters, SkyBridge has been designed toaccommodate other communications needs.Thus, Comsat General could refit a truck forvideo or data ourooses to suit the needs of in-dividual customers.

Comsat General ' s flexible marketing planprovides its customers with a variety of waysto obtain the SkyBridge service. As a leasednetwork service, for a fixed monthly rate, thecompany will provide one or more vans, adownlink located at a site of the customer's

choosing, transoonder time, an electronicmaintenance program, and the services ofComsat General 's 24 hour-a-day OperationsCenter to schedule satellite bookings and toprovide a crew if needed. Customers will alsobe able to lease the van alone or purchaseoutright a customized vehicle complete withediting and production equipment tailored toindividual needs.

Comsat General believes the availabilityof this new product is good news for broad-casters and video distributors who up to nowhave had very little control over transmissionsystems and their costs. With the ComsatGeneral mobile uplink service, users will havewithin their control a reliable, flexible, andtested backhaul system to orovide nearlyinstantaneous coverage from the field,regardless of location. With its long-term, fixedprice leasing package. the Company's newservice will bring cost stability to a marketplagued in recent years by the rising and un-predictable costs of competing distributiontechnologies.

The road to live coverage of events outsidethe studio has been a rocky one. But withComsat General 's new SkyBridge satellitebroadcast vehicle, users are now in thefast lane. 33.

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The nation's newest and largest televisionentertainment network-HI-NET, dedicated tomeeting the entertainment needs of the lodgingindustry-started transmitting programmingon September 12. The event was marked atthe studio and uplink facility of HI-NET Com-munications in Memphis. Tennessee, with atraditional ribbon-cutting ceremony with an un-traditional twist Several at very distant loca-tions participated in the ceremony by means ofsatellite links.

The ribbon was cut, and a handful ofhotels in Indiana and Pennsylvania receivedthe first hours of transmission of HI-NET'sfour continuous channels. Within the next fewmonths over 1.000 hotels all across the coun-try will receive the service 24 hours a day.

Bill Goforth, President of HI-NET Com-munications. conducted the ceremonies in

Memphis. assisted by Michael Rose, Chair-man and Chief Executive Officer of the Holi-day Corporation- and Irving Goldstein, Chair-man and Chief Executive Officer of ComsatAmong those people who participated thoughfar from Memphis was Dr. Joseph V Charyk,former Comsat Chairman and Chief ExecutiveOfficer, who spoke from a temporary studioset up for the purpose in the Okura Hotel inTokyo. Japan. Dr. Jerry Whalen, President ofGTE Spacenet, the providers of HI-NET'sspace segment. participated from almost asgreat a distance. Dr Whalen was seen at theLaunch Control Center in Kourou, FrenchGuiana, where he was attending a launch ofthe Ariane rocket containing a GTE Spacenetsatellite in its two-satellite cargo bay.

Meeting the EntertainmentNeeds of the Lodging Industry.

Also taking part via satellite were Gover-nor Lamar Alexander of Tennessee whospoke through a television link via satellitefrom the Governor's mansion in Nashville andDr Richard Lesher. President of the U.S.Chamber of Commerce, who appeared beforethe cameras in the Comsat General video-conterencing facility in L'Enfant Plaza inWashington, D C. Each speaker was introducedin turn from Memphis. and each spoke of theimportance of the new system As eachspeaker finished he remained on camera, andupon a "launch countdown" from Memphis,all participants simultaneously cut amulticolored ribbon to officially open the newentertainment service to the hotel industry.

The event marked the successful culmina-tion of the first phase of a unique marriagebetween two diverse comoanies-HI-NET

Communications, Inc., wholly owned oy theHoliday Corporation, and Comsat General Cor-poration. The partnership, the world's largestprivately owned satellite system. offers in-room entertainment and videoconferencingthroughout the United States. Since January,the partnership has consummated contractstotalling over $100 million to build thenew system. These contracts cover provisionof the technically advanced broadcast facilityin Memphis. satellite antennas, receivingequipment and sophisticated computer equip-

by Frederick L. Hofmann,Executive Vice President, H/ NET Communications.

Photography by William J. Megna,

Chief Photographer, Comsat Magazine. 35.

36.

ment to be installed in all participating hotels:first-rate entertainment programming: andsatellite transponders to link the elements ofthe system together

The network architecture calls for pro-viding tour video channels to each hotelThree are offered to the guest free of chargethe Showtime Channel. a leading cablemoviechannel offering premium movies and specialprogramming: the Entertainment of SportsProgramming Network (ESPN), providing24-hour, seven -day-a-week sporting eventsand business news, and Cable News Network(CNN) Headline News, which offers nationaland international news around the clock. Afourth channel. Satellite Cinema. is a HI-NETexclusive , consisting of recently issued familyentertainment and late night adult fare. whichwill be offered to the guest on a pay-per-viewbasis . Special events will also be shown fromtime to time on this channel. The hotel guestwill select his choice of channels from a smallbox mounted atop the television set in hisroom.

Designed to be as easy for the guest touse as is possible, the simplicity of the set-topunit belies the complexity of the network thatdelivers the program to the hotel room. Theheart of this system is the major new studioand uplink facility in Memphis, where fivelarge satellite antennas work 24 hours perday The same Harris Corporation team thatbuilt the NBC-TV network distribution systemfor Comsat General designed and installedthe Memphis transmission system to HI-NETCommunications specifications.

Two 8-meter C-Band dishes are pointed atthe Satcom III R and Galaxy I satellites fromwhich they receive a steady stream of signalsrepresenting CNN Headline News. ESPN, andShowtime East and West (two channels.separated by time zones. so that programsintended for the Western half of the U.S. arebroadcast later than for the Eastern half).These signals are routed into the MasterControl Room of the Broadcast OperationsFacility There, the Satellite Cinema premiumpay-per-view programming originates on videotape playback machines, again in two chan-nels for two time zones. and all the signalsare routed through complex switching equip-ment designed. built and installed by Bluff CityElectronics of Memphis. Six separate sets ofsignals are routed to two 6-meter Ku-Bandantennas for transmission to the GTE GSTAR Isatellite and then to the participating hotels

One of the major reasons for choosingKu-Band transmission for the new service isits ability tc provide quality signals in highlypopulated areas where C-Band programs areoften drowned out by electronic interference.An innovation designed into the transmissionsystem is the combining of the signals so thattwo channels of video are carried side-by-sideon each transponder. Thus only threetransponders are required to broadcast all sixchannels. at a tremendous savings in cost

Each hotel receives the video signalsthrough a 4.5 meter satellite antenna. de-signed, built and installed by Scientific AtlantaThe signals enter the hotel and are separated

into four channels which are distributedthroughout the hotel to the guest rooms.There. they enter the Scientific Atlanta set-topunit and await the guests choice of channelselection , Should the guest wish to view thepay-per-view channel. another unique featureof the HI-NET system comes into play. Press-ing the Satellite Cinema button signals anAT&T minicomputer, located near the hotelfront desk. and the computer automaticallysends a preview of the entertainment and a

notice to the guest that he must press thebutton a second time in order to view the fullfeature and that the room will be billed for theshow. If the guest does wish to see thefeature, the computer automatically prints abill at the hotel front desk.

Designed to be simple for both the guestand the hotel operators, the service has anumber of other features which are extremelyvaluable and time-saving. Each time a guest

Top, Ribbon cutting ceremony inauguratingnationwide television service was conducted atstudio and uplink facility in Memphis of HI-NETCommunications by, from left. Michael Rose,Chairman and Chief Executive Officer of HolidayCorporation, Bill Goforth, President of HI-NETCommunications, and Irving Goldstein, Chairmanand Chief Executive Officer of Comsat. Bottom,In HI-NET main control room Hf-NET's Fred DelToro. Senior Vice President, with author Hofmannand Christine Oths. foreground

views a pay-per-view movie, a record is madein the hotel comouter. Once each month, inthe middle of the night. a large computer inMemphis comes to life and automatically dialseach hotel with HI-NET service and reads outthe stored information in the hotel computerThanks to the system, HI-NET is able to billthe hotels for the actual movies watched. andit also permits statistical analysis of theviewers preferences by movie title and byviewing time of day.

Other computers located in Memphis andat the Comsat General Satellite Control Centerin Washington permit remote diagnosis of pro-blems at hotels It a hotel manager has atechnical problem he can call a troublenumber in Memphis or Washington, 24 hoursa day. and ask for help. The duty operator willconnect the diagnostic computer to the hotelcomputer, via telephone lines, and proceed toprobe for the source of the difficulty. Shouldthe problem be caused by a procedural error,the duty operator can, in most cases, recyclethe recalcitrant machine and solve the problem

HI-NET Communications is the largest pro-vider of ad-hoc videoconferences in the worldThe new network will provide vastly expandedopportunities for videoconferences in morelocations on shorter notice than ever possiblebefore, Commands from the Memphis UplinkFacility will permit only participating hotels toreceive videoconferencing signals and willblock out all other hotels

Early in 1986. an encryption system willbe added to the network to protect againstthe unauthorized reception of programming bynon-subscribers. All channels will be en-crypted at Memphis, and each hotel will beprovided with decoding units. In addition toproviding security for entertainment program-ming, this will provide automatic security forall videoconferences. Scientific Atlanta willbuild and install B-MAC encryption equipment,developed jointly by Comsat's Satellite Televi-sion Corporation and Scientific Atlanta

At the Dresent rate of installation, 1,000hotels will be HI-NET customers by early nextyear, and plans are already being made toadd capabilities to the network. Datatransmission and voice, both requiring theaddition of transmission capability at the hotel,are being studied Further in the future is thepossibility of making available interactivedatabases for the guest, thus bringing a wholerange of new services directly to theindividual hotel room.

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Above , Temporary hub for Starcom system installed at theHalliburton Company's facility in Arlington, Texas.Temporary hub will be replaced by permanent installation,and van-note closeup in Inset , right-and parabolic dishantenna will travel to facilities of other customers andprospects to demonstrate capabilities of system. Left, Com-sat Technology Products executives inspect very small aper-ture terminal (VSA T) for Starcom system, from left, CharlesA Zito, Vice President and General Manager, NetworkProducts: Charles E. Reutter, Marketing Director, and A.William Perigard, President.

Photography by William J. Megna,Chief Photographer, Comsat Magazine

Private neftw^orksdream come true.With Starcom. IBM computers com-municate interactively in a protocolenvironment with excellent responsetimes. From Comsat TechnologyProducts' Network Products Division.the system is the heart of a nationwidenetwork that American Satellite isinstalling for Halliburton.

For years, business fortune-tellers havepredicted that American corporations wouldturn to private satellite networks for theircommunications needs, especially datatransfer, electronic mail and voice transmis-sions. A recent announcement by ComsatTechnology Products. Inc (CTP), a whollyowned subsidiary of Comsat. gives cause fora lot of optimism that the prediction is finallycoming true.

What CTP has announced is that its Net-work Products Division has been selected tosupply interactive data communications ter-minals to the American Satellite Company ofRockville, Maryland, for use in a nationwide,high-speed data network being designed byAmerican Satellite for the Halliburton Com-pany of Dallas, Texas.

The agreement marks the first major con-tract award for CTP's recently introducedsatellite system. called Starcom, a systemespecially noteworthy for its ability to makeavailable four services within a widely dispersednetwork: interactive data. electronic mail,high-speed facsimile transmission, and "thin-route" voice.

The contract calls for the delivery of acentral hub station and more than 120 remotetransmit and receive terminals, which will belocated throughout the country. They will pro-vide the ground segment for the high-speeddata network that American Satellite willdesign and manage for Halliburton. TheAmerican Satellite network will initially be used byHalliburton to transmit data in support of itsoil field services operations. It will operate inthe Ku-Band frequency with CTP-manufacturedsmall aperture (1.8 meter) earth stations.Voice and transportable earth station serviceswill be made available to American Satellitebased on Halliburton's operational requirements.

Three developments are the reasons forthe newfound optimism that satellites andprivate network organizational communica-tions-such as business communications-belong together: VSAT, protocol compatibility,and divestiture.

VSAT stands for very small aperture ter-minal. It is a rugged and highly reliable VSATthat is the heart of CTP's Starcom SatelliteCommunications System. These terminals havedish antennas of 1.2 and 1.8 meters (four feetand six feet in diameter) respectively.

The Starcom VSAT is a remote receivingand transmitting terminal that is combinedwith numerous other Starcom terminals toform a communications network. At the coreof the system is the Network Control Centeror hub, which houses the network controlcomputer. The computer acts as a high-techtraffic cop, directing bits of information fromone terminal to another and controlling theflow of communications.

The small size of the VSAT makes it idealfor business customers to use as an On-Premise Terminal (OPT). Smaller terminals arepractical. easy to install and affordable, as theprice of Ku-band equipment begins to reflectthe economies of scale inherent in mass pro-duction. By installing a Starcom VSAT atbranch offices, retail outlets. key factories orother locations, a business can have instan- 39.

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taneous access to essential informationthrough its own private "star network.''

An added benefit is a rugged, portableversion of the Starcom VSAT that can betaken apart and reassembled in a matter ofhours.

You can put it in the back of a jeep andtake it to any remote location," says Charles E.(Chick) Reutter , CTP Marketing Director.

Network Products is producing the Star-com system as part of a team effort with Mit-subishi Electric Corporation (Melco). Melco, aworld leader in the manufacture of radio fre-quency (RF) equipment, is responsible for themicrowave electronics that are an essentialpart of the VSAT.

The Starcom system has some basictechnological advantages over a traditionaltelephone landline network. These advantagesgive clients performance enhancements andsignificant cost reduction.

"The VSAT communicates data to the Hubat 56 kilobits per second and receives datafrom the Hub as individually addressedpackets of data running at 256 kilobits per se-cond," explains Reutter. "Moving data atthose rates makes computer networksoperate much more efficiently."

For example, current landline customersleasing from AT&T typically receive data witha five- to seven-second response time (thetime it takes for data to be transmitted to andfrom the host computer). For the sake of com-parison, say that the price for the leased linesfor such a service could be in the neighborhoodof a million dollars a year, not including thecost of leasing the modems that allow datatransmission.

"Our network would give the samecustomer screen-fill to screen-fill in 1.5 to 3seconds," says Reutter. "And it would cost aone-time charge of about $1.5 million. Withthe elimination of the cost of leasing modemsequalling the annual satellite charges, thecustomer gets a fast payout and then saves amillion dollars a year."

But without the second develop-ment-protocol compatibility-the Starcomsystem would be just another great idea thatnever got off the ground. Until recently. therewas always a missing link in developingsatellite communications networks for thetransfer of data. Although computers couldperform a vast array of impressive tricks, theycould not readily communicate with eachother via satellite.

"Computers talk to each other the sameway people do," says Reutter. "There is aprotocol involved. If I start a sentence andyou have a question. you defer your questionuntil I finish. There is the same hierarchy ofprotocols in the way computers talk to eachother."

In a private network, the host computer atthe Hub transmits information to other com-puters linked to the VSATs that have been in-stalled at various locations. In order to com-municate, the host computer polls eachremote computer and asks if it has any infor-mation to impart.

"The host computer goes around to everyterminal in the network asking this question,"Reutter explains. "If it fails to get an answerwithin a preset interval it determines that theterminal in question has malfunctioned andwrites it out of the network."

Unfortunately, this interval is frequentlynot long enough for the terminal to respondand computer-to-computer data delivery viasatellite traditionally has been regarded as dif-ficult, if not impossible.

"Until now, many people were saying thatyou could not operate interactive networks ef-ficiently over satellite ," says Reutter.

Apparently. they overlooked the ingenuityand resourcefulness of the people at CTP'sNetwork Products and Comsat Laboratories.

"We worked out a means of dealing withthe computer protocols," says Reutter. Thissoftware method enables the computers totalk to each other despite the intervals win-dow. "it gives us a powerful edge," Reutterstates.

The last of the three developments thatcreated the marketplace for private satellitenetworks for data, electronic mail and voicecommunications is the now-historic break-upof AT&T. With the divestiture of the telephonecompany, businesses are more apt to explorealternatives to traditional landline communica-tions. Many are looking for networks that offerbetter performance, lower cost, more directcontrol, and a data security system to protectthe confidentiality of their information. TheStarcom product line delivers exactly whatthese business customers desire.

With the Starcom VSAT, data transfer isenhanced by the 56 kbps transmission rate.Other benefits accrue for customers in needof electronic mail and voice communicationservices.

For Charles A. Zito, Vice President andGeneral Manager, Network Products, and forA. William Perigard, President, CTP, CTP'sStarcom is the reason that the long-sought ob-jective of creating private satellite networksfor business is now finally a reality. Says Zito."The Starcom product took literally years ofeffort on the part of Comsat Laboratories intechnology and networking techniques. We'reunique in having that resource here. To maketwo IBM computers communicate interactivelywith each other in a protocol environment viaVSAT with excellent response times is a com-plex task. A lot of people have talked about it,but we have made it work."

Says CTP President Perigard. "Our abilityto implement this network in the fourthquarter of this year with both hardware andsoftware in an IBM environment makes us aleader in this field. This system provides asolid example of the innovative productswe're developing to meet customers' com-munications requirements. These earth sta-tions are small, easily installed. and offer afaster transmission speed than is availableover landlines to most cities-capabilities withgreat appeal to any business withgeographically dispersed locations that isseeking to reduce the cost ofcommunicating."

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liaison with U.S. international servicecarriers and information on BTI's rangeof services to U.S. customers.

State Dept . leases half circuitsfrom Comsat International

Comsat International Communications,Inc. (CICI), has been selected by theState Department to provide satellitecommunications services from Washington,D.C., to the United States Embassy inLondon and the United States Mission inGeneva.

Comsat International is leasing tothe State Department two half circuits of1.544 megabits per second that it willuse for voice, data, facsimile andvideoconferencing services. ComsatInternational will provide this capabilityvia its new international earth station thatwill be located at its headquarters inWashington.

JISO extends contract twoyears for television service

Comsat International Communications,Inc., has been awarded a two year con-tract extension-April 1, 1986 to March31, 1988-from the Japanese Interna-tional Satellite Joint Users Organization(JISO) for 24 hour-a-day internationaltelevision service. Comsat will receiveapproximately $787,000 annually, basedon its recently modified tariffs. Originalservice began in April 1984.

The service is transmitted via theComsat International Standard B earthstation in Santa Paula, California, to aPacific Ocean region Intelsat com-munications satellite. The signal isreceived by the KDD Standard A earthstation in Ibaraki, Japan.

JISO consists of NHK (Japan Broad-casting Corporation); Nippon TelevisionNetwork Corporation; Tokyo BroadcastingSystem, Inc.; Fuji Television Network,Inc.; Asahi National Broadcasting Co.,Ltd.: and Television Tokyo Channel 12,Ltd.

Comsat International is currentlyproviding nine full-period internationaltelevision services to locations in theAtlantic and Pacific Ocean regions.

American Law Network isoffering continuing education

The American Law Network, a satellitenetwork designed and installed byComsat General Corporation, has beeninaugurated. The system will be usedprimarily to broadcast continuing legaleducation programs throughout theUnited States.

Comsat General will operate andmaintain the Ku-Band network. whichconsists of an uplink in Washington, D.C.,satellite transponder time, and downlinkearth stations at law-related andeducational facilities nationwide.

The American Law Network is a jointventure between Comsat General andthe American Law Institute-American BarAssociation (ALI-ABA) Committee on Con-tinuing Professional Education. Initially,the system will distribute programming to37 sites throughout the country. By late1985, Comsat General expects to install13 additional sites, with more planned for1986 and the following years. ALI-ABAwill provide and manage the programmingand will market the programs to the legalcommunity.

"Comsat General is pleased thatthe first stage of the American Law Net-work is ready for operation. This is justone example of how video distributionthrough satellite technology can be usedfor continuing education and training,"said Comsat General President WilliamMayo.

Gallium Arsenide transistorbreakthrough is made known

Comsat Laboratories has announced abreakthrough in the technology ofmillimeter wave Gallium Arsenide (GaAs)power field effect transistor (FET)development. The Laboratories has suc-cessfully fabricated GaAs FETs havingstate-of-the-art performance at 20gigahertz (GHz) with one-watt outputpower, a 29 percent power added effi-ciency at the one dB gain compressionpoint and a 4.5 dB small signal gain.

Continued next page

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These characteristics should be companwith commercially available 20 GHz onewatt FETs having an efficiency of onlyabout 15 percent.

"This achievement ," according toDr. John Evans , Director of theLaboratories , " marks a major step inimproving the characteristics of solidstate power amplifiers , especially forsatellite applications."

John L. McLucas, aviationand space expert, has retired

Having reached the Corporation's man-datory retirement age. Dr . John L.McLucas , most recently Comsat'sExecutive Vice President and ChiefStrategic Officer , has retired. Dr.McLucas ' s career with Comsat cappeda distinguished record in both govern-ment and business , and he continues tobe widely regarded as an authority in thefields of aviation and the uses of outerspace.

Dr. McLucas joined the Corporationin 1977 as President of Comsat GeneralCorporation . In 1979 , he was namedPresident of Comsat World Systems Divi-sion, which at the time consisted of theCorporation ' s two jurisdictionally man-dated activities , its biggest business.

From 1975 to 1977, he was Admini-strator of the Federal AviationAdministration . During the previous twoand half years , he was Secretary of theAir Force and Under Secretary for thefour years before that . From 1966 to1969, he was President and ChiefExecutive Officer of the Mitre Corpora-tion and before that was AssistantSecretary General for Scientific Affairswith the North Atlantic Treaty Organiza-tion (NATO) in Paris.

Some of Dr. McLucas ' s responsibilitieshave been assumed by Richard L . McGrawwho joined Comsat in early Septemberas Vice President, Corporate Affairs.

New posts , responsibilitiesmark changes in officer ranks

Jerome W. Breslow , Secretary of theCorporation since 1979 , has beenelected to the newly created position ofVice President and Assistant to the Chair-man and Chief Executive Officer. In thisposition, Mr. Breslow will assistComsat ' s Chairman and CEO and itsPresident in the conduct and manage-ment of the executive office and in theirliaison with the Board of Directors.

Assuming the duties of the Secretaryof the Corporation is Willard R. Nichols,Vice President and General Counsel since1984. Mr . Nichols ' new title is Vice Presi-dent, General Counsel and Secretary.

Stephen M.D. Day . Vice President,Corporate Development , since 1983, hasbeen elected Vice President . Marketingand Corporate Development , a positionchange that " reflects the importance ofmarketing to Comsat and the expandedrole he will play in coordinating , suppor-ting and guiding the major marketingactivities of our businesses ," accordingto Irving Goldstein , Chairman and ChiefExecutive Officer . In addition . Mr. Daycontinues to manage the corporatedevelopment function.

Richard L. McGraw . formerly SeniorVice President , Corporate Communications,for Eastern Airlines , is Comsat's VicePresident, Corporate Affairs . Mr. McGrawassumes responsibility for the Corpora-tion's government , public and investorrelations programs and employee com-munications and reports to Chairman andCEO Goldstein . Before joining EasternAirlines in 1983 , Mr. McGraw served forfour years as Vice President , PublicAffairs of Searle Pharmaceutical/Con-sumer Products Group and SearleResearch and Development . Earlier hehad been Executive Director and ChiefExecutive Officer of the Alliance to SaveEnergy and Deputy Undersecretary forField Operations of the U . S. Departmentof Housing and Urban Development.

Gilbert Rye , Director of Space Pro-grams on the National Security Councilsince 1982 , joins Comsat as Vice Presi-dent of Government Systems, Com-munications Services Division . In thisnewly created position , Mr. Rye directs

N O T E S

Comsat's efforts associated with theprovision of communications systemsand network services to the Departmentof Defense and other Governmentagencies.

Don W. Flora, formerly Vice Presi-dent, Sales, of Comsat General Corpora-tion has been named Vice President,Sales and Special Programs, Govern-ment Systems, reporting to Mr. Rye.

Elected Vice President and GeneralManager of the Network Products Divi-sion of Comsat Technology Products(CTP) is Charles A. Zito. Mr. Zito servedmost recently as CTP's Vice President,Marketing and Business Development.

SEL receives TeleSystemslicense for TDMA equipment

Comsat TeleSystems, Inc., has licensedStandard Electrik Lorenz, AG (SEL), forthe manufacture of Time-DivisionMultiple-Access (TDMA) equipment inWest Germany. Under the terms of theagreement, technology transfer forTeleSystems's DST-1 100 TDMA equip-ment will begin in 1986. Thereafter, SELmay manufacture and market the equip-ment for specific applications in the inter-national telecommunicationsmarketplace.

TeleSystems' DST-1 100 TDMAequipment was initially designed for theWest German TelecommunicationsSatellite (DFS) Network. Through exten-sive use of state-of-the-artmicroprocessor components and soft-ware techniques, TeleSystems'DST-1100 produces a highly reliable60-megabits-per-second TDMA systemcapable of establishing and, if necessary,rapidly changing network circuit intercon-nection. The DST-1100 optimizes utiliza-tion of satellite transponders through"transponder hopping" technology-afeature that increases network bandwidthby connecting users over severaltransponders. In addition, theequipment's Demand-AssignmentMultiple-Access (DAMA) capability allowsfor automatic, real-time, reconfiguration

to permit the network to adjust rapidly tochanging user traffic patterns.

In announcing the agreement,TeleSystems' President, Donald L. Bise,stated, 'Licensing SEL to manufacturethe DST-1 100 represents a milestone inour highly successful TDMA program.The agreement is a further testament tothe quality, reliability and economic ad-vantages of TDMA technology andTeleSystems' DST-1100."

Located in Stuttgart, SEL is one ofWest Germany's premier telecommunica-tions manufacturers, known for highquality digital switching systems, digitallocal networks, and wideband integratedfiber optic networks.

California museum receivestwo Amplica earth terminals

On the evening of October 1, with JamesBeggs, Administrator of the NationalAeronautics and Space Administration,as honored guest. the California Museumof Science and Industry in Los Angeles,California, showed off its latest acquisi-tions-two Amplica-Comsat C-Band earthterminals. Donated and installed byAmplica-Comsat, the earth terminalsare being used to receive transmissionsfrom the U.S. Government's GOES weathersatellites and Space Shuttle and otherspace activities coverage of theNASA/Select television channel.

On the Comsat side, the effort wasspearheaded by Comsat Director AdmiralRobert Garrick and A. William Perigard,President of Comsat Technology Products(CTP). Amplica is a part of CTP. Eachterminal consists of a CSR-300 Areceiver, a 9-foot diameter dish antenna,and an 85-degree low noise amplifier, allAmplica-Comsat products.

Early in 1986, the terminals will be usedto monitor the Uranus flyby and the firstTeacher in Space Shuttle mission. In addi-tion, there are plans to make a similarinstallation at the California Pavilion of theupcoming World Exposition in Vancouver,British Columbia.

Continued next page

43.

N 0 T E S

Statement about tariff actionissued by Comsat International

Comsat International issued the followingstatement concerning the Federal Com-munications Commission (FCC) decisionto allow all of Comsat International'snew tariffs to go into effect as scheduled,on November 1, 1985: We believe theCommission acted responsibly and insupport of the public interest. It rejectedoutright all requests from potential com-petitors to Comsat International for therejection or suspension of these tariffs.but set certain issues related to ComsatInternational's jurisdictional multipur-pose earth station tariffs for furtherinvestigation.

"We are also pleased that the Com-mission declined all requests that itinvestigate the rates that ComsatInternational proposes to charge for itsnew competitive services. The Commis-sion concluded that the accounting prac-tices and corporate structure alreadyimplemented by the Corporation are suffi-cient to permit Comsat International tocompete on an equal regulatory footingfor the full range of its internationalservices.

Commenting on the actions, ComsatInternational President William Taylorremarked. "We believe that this orderwill allow Comsat International to moveswiftly forward in the important andgrowing market for end-to-end andspecialized international communicationsservices. While we remain concernedthat several tariff issues impactingComsat International's jurisdictionalmultipurpose earth station businesseshave been set for investigation, we alsonote that the Commission dismissed awide range of arguments and has statedthat these tariffs represent a worthwhileattempt to achieve a justified, reasonableand nondiscriminatory rate. Furthermore,we are confident that once the Commis-sion has had an opportunity to reviewComsat's and Comsat International'ssubmission in the investigation proceeding,it will also conclude that the jurisdictionalrates are justified and supported by thepublic interest."

TeleSystems ship terminalhas type approval for Japan

The MCS-9100 maritime communicationssystem of Comsat TeleSystems, Inc., hasreceived Type Acceptance from theJapanese Ministry of Posts and Telecom-munications. The MCS-9100 is thesmallest, lightest, and most technologicallyadvanced ship earth station available to-day. It is also the only ship terminal pro-duced by a United States manufacturerto be type accepted by the Japanese. Allship earth stations must receive Type Ac-ceptance from the Ministry of Posts andTelecommunications before they can beused aboard Japanese flaq vessels.

Corporation to list on fourStock Exchanges in Europe

The Corporation intends to list its shareson the Stock Exchanges of Frankfurt,Germany, and Geneva, Basel and Zurich,Switzerland. Announcements of this in-tention were made by Comsat Chairmanand Chief Executive Officer Irving Gold-stein during separate luncheons held forthe financial communities of Frankfurtand Zurich.

Mr. Goldstein explained. "We atComsat are proud to join with manyother American companies that havetheir shares listed on these majorexchanges. The capital markets of Ger-many and Switzerland have been impor-tant to Comsat, and we expect to con-tinue our involvement with them."

In 1983, Comsat issued US$110.000.000 in convertible subordinateddebentures to the international bondmarkets through a subsidiary. In 1984and 1985, a Comsat subsidiary andComsat, respectively, each issued US$100,000.000 in Eurobonds. German andSwiss investors hold a large portion of allthree issues and are active holders ofComsat stock as well.

44,

Corporate Locations Comsat

Headquarters.Executive OfficesCommunications SatelliteCorporation .950 L'Enfant Plaza. S.W.Washington , D,C, 20024.2198Telephone: 202.863.6000

Comsat Technical Services950 L' Enfant Plaza. S.W.Washington . D.C. 20024.2198Telephone : 202.863.6000

Space CommunicationsDivision

Intelsat Satellite Services22300 Comsat DriveClarksburg , Maryland 20871Telephone : 301.428.4000

Maritime Services22300 Comsat. DriveClarksburg , Maryland 20871Telephone: 301.428.4000

Comsat Laboratories22300 Comsat, DriveClarksburg, Maryland 20871Telephone: 301.428.4000

Maintenance and Supply Center22250 Comsat DriveClarksburg, Maryland 20871Telephone: 301.428.4286

Comsat TechnologyProducts Division

Comsat technology Products22300 Comsat DriveClarksburg , Maryland 20871Telephone: 301.428.5000

Amplica. Inc.950 Lawrence DriveNewbury Park. California 91320Telephone: 805.498.9671

Network Products Division22300 Comsat DriveClarksburg, Maryland 20871Telephone: 301.428.5000

Comsat TeleSystems Inc.2700 Prosperity AvenueFairfax , Virginia 22031Telephone : 703.876.3000

CommunicationsServices Division

Comsat General Corporation950 1-' Enfant Plaza, S.W.Washington . D.C.20024.2198Telephone : 202.863-6010

CI'1L•n7

Santa Paula , CaliforniaSouthbury . ConnecticutFucino , Italy (Marisat TTC)

Comsat InternationalCommunications. Inc.

950 L ' Enfant Plaza, S.W.Washington, D.C. 20024.2198Telephoner 202.863.6000

Earth Stations

Andover, MaineBrewster , WashingtonEbeye , Rep. of Marshall IslandsElam, West VirginiaJamesburg , CaliforniaKosrae . Fed. States of MicronesiaMajuro , Rep. of Marshall IslandsPago Pago , American SamoaPalau . Rep. of PalauPaumalu . HawaiiPonape . Fed. States of MicronesiaRoaring Creek , PennsylvaniaPulantat, GuamSusupe , Northern Mariana IslandsTruk . Fed. States of MicronesiaYap, Fed . States of Micronesia

Satellite Television Corporation950 L 'Enfant Plaza, S.W.Washington, D.C. 20024.2198Telephone: 202.863,6110

Office of Corporate AffairsCommunications DepartmentCommunications Satellite Corporation950 L 'Enfant Plaza, S.W.Washington , D.C. 20024.2198Telephone : 202.863.6102

The Communications Satellite Corpora-tion is a shareholder-owned corporationbased in Washington , D.C. Comsat pro-vides international communications ser-vices through the global satellite networkof Intelsat and maritime communicationsservices through the satellite capacity ofInmarsat . In addition , the Corporationprovides customized communicationsystems and networks and markets end-to-end 'international communications andinternational earth station services andinformation and consulting services.

also manufactures

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HI-NET-meeting the entertainmentneeds of the lodging industry . Partnership,involving Comsat General and HolidayCorporation is on target to bring televi-sion programming to over 1 ,000 hotels.

With Starcom , IBM computerscommunicate interactively in a protocolenvironment with excellent responsetimes.

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