Enter Intersputnik

Sponsored chiefly by the U.S., the four-year-old International Telecommunications Satellite Consortium (Intelsat) has four satellites in the sky, links 62 nations around the globe and is considered a highly successful outpost of free enterprise in space. It is so successful, in fact, that Russia has decided to bid for a piece of the action. It is now planning its own global space-communications network, Intersputnik.

When and if it goes into operation, the Intersputnik satellite will weigh more than 1,000 Ibs. That would make it about four times bigger than the newest Intelsat models, the first of which is to be launched from the U.S. later this month (see cut). The Russians also say that Intersputnik will require less elaborate ground installations for transmitting and receiving, making its use less expensive than Intelsat and therefore more attractive to underdeveloped countries.

Luring Away. "We are not worried," says Intelsat Chairman John A. Johnson, with good reason. The U.S. alone accounts for more than half of the world's communications business. That leaves a relatively puny share for the U.S.S.R. The Russians' hope seems to be pinned on luring away some of Intelsat's present members with promises of greater authority in Intersputnik's affairs. Whoever joins, the Russians promise, will have equal voting rights in Intersputnik's council, whatever the country's size or share. Several smaller members of Intelsat resent the fact that management is heavily weighted in the U.S.'s favor, with voting rights allocated in proportion to a country's share in ownership and capital investment.

To qualify for a seat on Intelsat's 18-member governing committee, a country must have at least a 1.5% share in world telecommunications. The U.S., which owns 53.4% of Intelsat, has more say than the other 61 members combined on how to operate the system. What prices should be charged, even what firms should get supply or service contracts, are decisions made at the top. Four U.S. companies, ITT, A.T. & T., Western Union International and RCA buy up Intelsat's time and circuits and sell or lease them in turn to clients in all 62 countries.

Difficult Job. For one hour's transmission of color television between New York and Paris, the service charges from $11,500 to $18,625, depending on the day of the week and the time of the day. Similarly, black-and-white television prices range from $8,350 to $13,100 an hour. The returns, of course, are high. On a total joint investment of approximately $103 million as of July 31, members distributed some $33 million in profits among themselves. Communications Satellite Corp. (better known as Comsat), representing the U.S., realized a net income of more than $3,300,000 during the first half of 1968, up 58% from a year earlier.

Intersputnik's sponsors have deferred to some unspecified future date all estimates of the size of their investment and projected operating expenses. But clearly, overtaking Intelsat will be a monumentally difficult job.

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