OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 505
Date:05/02/00

1. LAW NUMBER: P.L.106-180 (S. 376)
2. BILL TITLE: Open-market Reorganization for the Betterment of International Telecommunications Act
3. BILL PURPOSE: Establishes a framework for the pro-competitive privatization of the International Telecommunications Satellite Organization (INTELSAT) and the International Mobile Satellite Organization (Inmarsat).
4. OMB ESTIMATE: P.L. 106-180 creates a new exemption for orbital locations or spectrum used for the provision of international or global satellite communications services to the requirement that the Federal Communications Commission (FCC) auction licenses if there are mutually exclusive applications to use radio frequencies for commercial services. OMB's baseline did not assume the need to conduct any auctions that are covered by this exemption during the projection period and therefore OMB does not estimate any costs from this change.

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs.................	0	0	0	0	0	0

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs.................	0	0	0	5	5	5

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

The differences between OMB and CBO estimates are the result of different baseline assumptions.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect..............	2	4	2	1	1	1
Receipt effect............	*	*	*	*	*	*
Net costs....................	2	4	2	1	1	1

* $500,000 or less.