Communication Satellite Corporation

Communications Satellite Corporation - Judgment The following judgment on the appropriate economic regulations of the Communications Satellite Corporation (Comsat) has been arrived at after considering the due deliberations presented before the Commissioners by the two parties; namely Comsat and FCC. Central to this judgment is the premise that "the return to the equity owner should be commensurate with returns on investments in other enterprises having corresponding risks." Also, the fair rate of return should be …

…of capital already committed to the enterprise over and above the operating expenses incurred; and b)<Tab/>to attract additional capital as needed in competitive money markets at reasonable costs. We instruct FCC and Comsat to calculate the appropriate revenues for Comsat in line with the preceding judgment. Comsat should be penalized 50% of the excess revenue, if any, and FCC should use this money to further infrastructure development in Communication systems.