Two weeks after a unanimous decision was made by Intelsat's 142 member-nations to create a commercial company, New Skies Satellites, N.V., Intelsat Director General and CEO Irving Goldstein yesterday outlined the transitional plans and timeframe to complete the spin-off in a pro-competitive manner.
At the American Enterprise Institute's speaker series on Competition in
International Telecommunications held late Tuesday, Goldstein described the
pro-competitive nature of the decision and the significance of what was
achieved.
He described the diligent efforts required by Intelsat's members to reach
consensus "without Congressional intervention, in a way that mutually achieved
their disparate regulatory and competitive goals."
Goldstein emphasized that the spin-off is just a first step in the
evolution of Intelsat. "The historic restructuring milestone that Intelsat
achieved two weeks ago is a giant step down the path of its ultimate
commercialization," he said. "We must continue to explore ways to enhance
Intelsat'S competitive stance and customer service," he added.
Goldstein also detailed the safeguards that Intelsat members put in place
to assure a fair, competitive framework for the creation of New Skies.
According to Goldstein, the first meeting of New Skies shareholders is
scheduled to take place by mid-May, at which time the initial Board will be
selected. The first Board meeting is expected to occur by the end of May, at
which time a CEO and CFO will be selected. In emphasizing the competitive
nature of the plan, Goldstein stated that "there will be no cross-
representation by any members of the Intelsat Board and New Skies Board. In
addition, neither Intelsat nor any of its officers or employees will have any
representation on the Board."
He added, "There must be a clear arm's length relationship between
Intelsat and New Skies and total separation of directors, officers, staff and headquarters. More importantly, Intelsat and its Signatories are waiving their immunities with respect to any relations with New Skies."
Goldstein also said that both New Skies and Intelsat will be smaller than
its largest US competitor, GM/Hughes/PanAmSat.
