The Rise and Fall of COMSAT Technology, Business, and Government in

After pioneering this technology and growing the market, COMSAT fell prey to changes in government policy and to its own lack of entrepreneurial talent. The author explores the factors which contributed to this rise and fall of COMSAT.

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The Rise and Fall of COMSAT Technology, Business, and Government in Satellite Communications David J. Whalen University of North Dakota, USA

© David J. Whalen 2014 Softcover reprint of the hardcover 1st edition 2014 978-1-137-39691-4 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2014 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries.

ISBN 978-1-349-48473-7 ISBN 978-1-137-39693-8 (eBook) DOI 10.1057/9781137396938 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.

Contents List of Figures and Tables

vi

Acknowledgements

vii

Note on Sources

viii

Introduction: A Technological Camelot 1 The Communications Satellite Act of 1962

1 6

2 Creating COMSAT

37

3 Creating Intelsat

67

4 Rising to the Peak

88

5 Mobile Satellite Communications

112

6 Technology

131

7 Domsats (COMSTAR and SBS)

144

8 Direct Broadcast Satellites

172

9 The Old Guard Retires

184

10 Fadeout

203

Epilog: Post-Mortem

222

Glossary

226

Notes

233

Index

271

v

Figures and Tables Figures 5.1 9.1 10.1 10.2

COMSAT’s Inmarsat revenues and operating income COMSAT revenues and net income COMSAT revenues COMSAT operating income

129 194 206 206

Tables 3.1 3.2 5.1 5.2 5.3 5.4

Hughes-built Early Bird and Intelsat II series Intelsat III series MARECS satellites Intelsat V satellites with MCS Inmarsat II satellites Inmarsat III satellites

vi

72 74 125 125 126 127

Acknowledgements I would like to thank all who contributed both to this book on COMSAT and to my previous book o