vention as well as other cultural, social, legal and political aspects of broadcast satellites.

Throughout 1972, in coordination with the State Department, USIA, FCC, and other cognizant agencies, OTP has coordinated and participated in the formulation and presentation in international forums of U.S. Government positions on direct satellite broadcasting. The interagency studies and activities necessary in this area will intensify during 1973, and OTP will continue to discharge its policy coordination function to assure timely and responsive policy formulation.

2. UNESCO

UNESCO is an independent agency of the U.N. charged with promoting international cooperation in the areas of education, social affairs and culture. During 1972, UNESCO convened several meetings to develop guidelines for use of communication satellites in the international distribution, and possible international broadcasting, of radio and television programming. OTP has worked closely with the United States Patent Office, the Department of State, USIA,. and the FCC, as well as various interested groups in the broadcasting industry, to establish and maintain a sound and consistent U.S. position on standards, codes of conduct, and protection of intellectual property rights.

In May 1972, a meeting of non-governmental experts in Paris under UNESCO auspices endorsed a draft Declaration of Principles relating to the use of satellites for direct broadcasting. The recommended draft Declaration was circulated by UNESCO in July and was considered and adopted by the UNESCO General Conference in October 1972. The United States strongly opposed the consideration of this Declaration on the procedural grounds that there was insufficient time to study the issues raised by the Declaration, and inadequate coordination with other international organizations. When these concerns were ignored by other countries, the U.S. strenuously voiced its strong opposition to the substance of the Declaration, but was substantially out-voted. Continued effort,. growing out of the UNESCO experience in 1972, will shift to U.N. organs which will be active in this area in 1973. OTP will continue extensive work in integrating policy coordination and position formulation.

3. International Telecommunication Union

The International Telecommunication Union (ITU), a specialized agency of the United Nations with 143 member administrations, maintains and extends: international cooperation for the improvement and rational use of telecommunications of all kinds. The Union uses world conferences of its members to review and update the international regulations needed to assure the smooth flow of global radio and telegraph communications. A principal function is the allocation of radio frequencies among the respective radio services (amateur, broadcasting, fixed, aeronautical mobile, communications satellites, etc.). During the past year, OTP provided guidance and, in some cases, representatives, for U.S. participation in ITU activities. Additionally, matters came up during the year that required OTP personnel to work directly with the ITU headquarters representative in Geneva, Switzerland, and there were two visits during the year of the ITU Secretary-General to Washington.

During 1971, the World Administrative Radio Conference on Space Telecom-munications produced agreements that will influence space and satellite matters: for the next decade. Throughout 1972, OTP developed the necessary policies: and directives to implement these agreements, all of which became effective on January 1, 1973.

In September 1973, the ITU will convene a Plenipotentiary Conference to review the entire content of the ITU Montreux Convention of 1965 and to discuss the structure and roles of the ITU. More than 100 nations are expected to attend and participate in this conference. Preparatory work has been in progress for more than a year within the United States. During 1972, OTP has provided policy guidance and assured coordination of U.S. positions on a wide range of issues both within government and within industry. In addition, OTP provided the chairman for an intra-agency group to review and recommend changes in the Convention. Preparatory work for the Plenipotentiary Conference will continue during 1973, and OTP will continue to coordinate and play an active role in this effort.

The ITU maintains two major international coordinating bodies known as the International Consultative Committee on Telegraph and Telephone (CCITT) and the International Consultative Committee on Radio (CCIR). These orga

nizations have numerous technical study groups which examine problems regarding international standards, practices, system planning, and rates applicable to the international communications services. OTP is responsible for coordinating the preparation of U.S. positions for such activities, particularly those dealing with technical and operational aspects of radio frequency spectrum planning, allocation, and use. During 1972, OTP participated in negotiations leading to the revision of the work of the ITU World Plan Committee; and also participated in the CCITT Plenary Assembly which met in Geneva during December of 1972.

A World Administrative Telegraph and Telephone Conference will be held in Geneva in April 1973. OTP is now actively engaged in the preparatory work which is underway for this Conference. It is expected that the existing agreements concerning telephone regulations will be substantially revised so as to permit the United States to become a signatory to these agreements for the first time.

A World Administrative Radio Conference on Maritime Telecommunications is being convened by the ITU in Geneva in April of 1974. The agenda for the conference was published by the ITU in June 1972. However, U.S. preparatory work in anticipation of both the 1974 Conference and its agenda was commenced during the fall of 1971 and continued throughout 1972 and into 1973. Preliminary views of the United States for this conference were published and distributed through the Department of State to the 143 administrations of the ITU for their comments.

4. INTELSAT

The International Telecommunications Satellite Consortium (INTELSAT) is an organization of 83 nations that provides satellite communications on a global basis. New Definitive Arrangements for INTELSAT were concluded in international negotiations in 1972 and enter into force February 12, 1973. Under these arrangements, COMSAT, the U.S. representative, will no longer hold the controlling vote in the globe satellite system's governing body, and COMSAT's role as Manager will be limited to technical and operational management of the system's satellites. During the transition to the permanent structure of the Definitive Arrangements, the obligation of OTP to advise COMSAT in its role as U.S. Representative in conjunction with the olbigations of the Department of State and the Federal Communications Commission-will take on special importance. This is especially so in the preparation for and participation in the crucial initial meetings of the new principal organs of INTELSAT established under the Definitive Arrangements: (1) the Board of Governors, which meets at six to eight week intervals; (2) the Meeting of Signatories, which is convened annually; and (3) the Assembly of Parties, which meets biennially. The Board of Governors and the Meeting of Signatories will convene for the first time during 1973 and the Assembly of Parties will convene for the first time no later than February 1974.

The FCC is beginning to authorize applications for domestic satellite systems, many of which propose to provide services between the mainland and Hawaii, Alaska and Puerto Rico that have heretofore been provided by INTELSAT. The possible transfer of these services from INTELSAT to the new domestic systems could have significant impacts upon the U.S. role in INTELSAT. general foreign policy relationships between the U.S. and other INTELSAT members, and planning for Pacific Basin communications. OTP's role in this area is of considerable importance because OTP is the only governmental entity having responsibility under the Communications Satellite Act of 1962 and pertinent Executvie Orders to coordinate domestic and international communication policies. Similarly, OTP has worked in a coordinating role on policies concerning U.S. carrier use of the Canadian domestic satellite system for communication within the U.S. In addition, OTP will continue to work in conjunction with the Department of State and NASA concerning the impact on INTELSAT of proposed regional satellite systems, such as the French-German "Symphonie" system. 5. CITEL

In 1971, the Inter-American Telecommunications Conference (CITEL) became a specialized agency within the Organization of American States and was granted a significantly broader charter signifying its rising importance and influence. In general, CITEL promotes the continuing development of the telecommunications in the Americas and conducts studies for the planning, financing, construction and operation of the Inter-American Telecommunications Network.

It also deals with questions of regional telecommunications standards and technical assistance. During 1972, OTP participated actively in preparation for and representation at CITEL meetings in Mexico.

It is important that we strengthen U.S.-Latin American relations in the communications area. This can be helped by more active participation by U.S. entities in CITEL affairs. For example. U.S. views concerning the forthcoming. ITU Plenipotentiary Conference and the World Administrative Radio Conference will be presented at the CITEL meeting scheduled for June 1973. As part of an overall program to improve U.S. relations wtih Latin America in the communications field, OTP commissioned a study which was completed in 1972, and, in conjunction with the Department of State, is now seeking to implement certain recommendations resulting from it.

C. ANTICIPATION OF FUTURE PROBLEMS

The development of communications policy on an ad hoc basis has become a chronic problem, and totally unsuited to the needs of the increasingly complex problems in international communications. Moreover, much policy has been formulated in response to situations after they have reached a critical stage. To correct this problem, policy support studies and activities are being undertaken which will provide a basis for the determination of policy in a more stable environment. A program is under way to gather information needed to formulate policy on existing as well as potential future problems. The information resulting from this program will include data on existing and planned international communication facilities on all existing and planned specialized regional and foreign domestic satellite communication systems; on new technological developments and applications; and on development of service and traffic demand. forecast models.

IV. SPECTRUM PLANS AND POLICIES

There is intense national and international competition for the use of the radiospectrum for all forms of radio transmissions (radio communications, navigation, broadcasting, radar, air traffic control, etc.). In the United States the Federal Government is the largest single user of the spectrum. The Director, OTP, assigns frequencies for these uses, and to this end, OTP coordinates all Federal Government activities related to spectrum management and planning. This includes cooperating with the FCC to develop plans for the more effective overall use of the entire spectrum, for both Federal Government and non-Federal Government purposes.

Specific tasks involved fall basically within the categories of allocation and assignment for particular uses, planning to meet Federal Government and non-Federal Government needs, and evaluation of possible biomedical and other side effects of electromagnetic radiations.

In the allocation and assignment area, much progress was made in the past year. An improved data processing system, 90% completed by the end of the year, and an expanded engineering capability made it possible to improve the management of radio frequencies assigned to Federal Government radio stations, and to permit over 48,000 specific frequency actions taken by OTP during 1972. Communications-electronics systems of the Federal Government continued to increase in complexity. In order to cope with the technical problems inherent in providing the spectrum support necessary to operate them, improved access to the advice and assistance of skilled experts from within the departments and agencies of the Federal Government was necessary. This was accomplished by the establishment of study groups related to such issues as standards, radionoise abatement, improved telecommunications systems, and frequency sharing. Expanded engineering capabilities were used during 1972 to investigate and conduct analyses to assure radio frequency compatibility (reduction of interference) among systems competing for the same spectrum resources. Specfic areas included: Collision Avoidance, Aeronautical and Maritime Satellites, and Altimeters in the 1535-1660 MHz band; Air Traffic Control and Military Radars in the 2700–2900 MHz band ; Aeronautical Satellites and Terrestrial Microwave Landing Systems in the 5000-5250 MHz band; Earth Exploration Satellites, Fixed Satellites and Terrestrial Microwave Systems in the 7250-8400 MHz band; and Fixed Satellites, Radionavigation Radars, Fixed and Mobile Communications, and Space Research all in the 13.4-15.35 GHz band.

OTP plans to continue the development of this engineering and electromagnetic compatibility analysis capability. This is particularly important in light of the OTP directive recently issued in coordination with Government agencies to ensure spectrum availability prior to budgetary requests for development of communications-electronics systems.

During the previous year (1971), some 8,000 MHz of spectrum, formerly reserved for exclusive Federal Government use, was made available to the FCC for shared use by non-Federal Government interests. This precedent was continued. into 1972, and an additional 1763 MHz of spectrum was similarly made available to the FCC. This effort will be continued in the coming year.

In the category of spectrum planning, the study initiated during the previous year was continued to develop alternative methods for allocation of spectrum resources giving more weight to all relevant technical, economic, and social criteria. Plans for implementing the results of the 1971 World Administrative Radio Conference (WARC) for Space Telecommunications were completed and put into effect as regards the Federal Government on January 1, 1973. Joint efforts with the FCC looking toward allocation planning were continued. With new technologies developing for operation of communications-electronics systems on higher frequencies than before, and with the introduction of lasers, more specific planning will be required for the portion of the spectrum above 10 GHz. The Office will also continue to maintain in a state of readiness the national emergency readiness plan for use of the spectrum, and will monitor Federal Government agency compliance with allocations resulting from past ITU Conference agreements (1967 Maritime WARC and 1971 Space WARC).

In response to some evidence and much apprehension about the hazards of electromagnetic radiations to humans and to the environment in general, the OTP announced a coordinated inter-agency "Program for Assessment of Biological Hazards of Nonionizing Electromagnetic Radiation," in the latter part of 1971. This program, which is interdepartmental in nature, will extend over a five-year period commencing in fiscal year 1974, at a proposed funding level of $63 million, a portion of which is already included in departmental budget planning. During 1972, OTP guided and coordinated the implementation of the program, i.e., by seeking to increase the level of activity in this area in departments where it would be the most productive, eliminating duplication of effort, and finding ways to avoid gaps in research activities. These efforts will be continued into 1973.

Dr. WHITEHEAD. The first area covered in our statement is common carrier communications. This sector of the communications industry historically has meant only traditional telephone and telegraph services, provided on a monopoly basis by vertically integrated companies. In recent years, however, new communications technologies have been developed and specialized services and service concepts like computer time-sharing, telephone answering, interconnection, and brokerage have come into being on a competitive basis. Indeed, vigorous competition in this new field is economically inevitable, unless artificially prohibited by Government policy. OTP's efforts are aimed at coming to grips with the difficult policy question of how this new competitive sector, and the traditional sector which may remain monopolistic, can coexist in the public interest.

Cable TV is a second area of OTP involvement. Cable has the potential for becoming a medium of major significance in its own right, providing a technological basis for more consumer choice and diversity. Cable can also be the vehicle for new communications services, such as widespread access to computers, education, and the like. However, there is no satisfactory division of regulatory authority at the present time between the Federal Government and the States, and cable is too often viewed by industry and Government alike solely as an adjunct to over-the-air broadcasting. The FCC has recently issued rules designed to end the long freeze on cable growth, and we are at work on a long-range policy to guide cable's future development.

In the broadcasting field, we have been examining various aspects of the regulatory environment to determine where it is possible to lessen Government's involvement in the process of getting information-news and entertainment-to the public. Our most fundamental goal is to find ways of enhancing first amendment rights and interests. We are continuing to work with the FCC and the Congress on the lessening of radio regulation, which we proposed in 1971. We have developed legislative proposals for the modification of license renewals policies and procedures, which we expect to submit to the Congress for its consideration this year.

In the area of Government communications, there has long been a concern that better management and policy direction were needed. Last year, we took several steps to reduce expenditures and improve our communications capability. Various problems in the Emergency Broadcast System and emergency warning procedures were resolved. The long-standing FTS/AUTOVON merger controversy was resolved. Important technical and managerial improvements in the spectrum allocation process were begun. We also established a planning process for coordinating anticipated Government satellites and navigation systems. We have concluded in this area that the best approach to Government communications planning and policy is prospective; and to that end, last year OTP created the Government Communications Policy and Planning Council.

We have also reviewed the structure of the U.S. international communications industry and have developed a policy framework within which regulatory practices can be improved, and industry can continue to improve its performance and efficiency. I believe that our policy in this area will provide a sound foundation for guiding and evaluating whatever specific changes in legislative or regulatory provisions may be necessary or appropriate in the future.

Mr. Chairman, I have reviewed only briefly some of the most important aspects of OTP's work, and briefly at that. I hope that this short review, together with my longer statement, provides the subcommittee with a good picture of the role we play in developing communications policy and, on behalf of the executive branch, acting as a partner in the policy process with the FCC, the Congress, and the public. In particular, I think OTP and the Commission have maintained a sound balance between the FCC's independence in administering the Communications Act and its function as an arm of the Congress, on the one hand, and its ability to cooperate with the executive branch on long-range policy considerations on the other.

Mr. Chairman, I believe that OTP has made a good start in grappling with some of the basic communications issues we are facing in this country today. Only recently have we as a people come to understand how extensively communications affect us: How we deal with one another, how we form our national character and identity, how we engage in our political process, and how we make our economy more productive. We can turn the tremendous advances in communications technology to our benefit only if there is informed public debate and discussion on major communications policy issues. This is what we have been endeavoring to do, and I am glad that to