International Satellite Communications Reform Act of 1998

International Satellite Communications Reform Act of 1998 - Directs the U.S. party to the International Telecommunications Satellite Organization (INTELSAT) agreement and the U.S. signatory to INTELSAT and COMSAT to take all necessary steps to: (1) achieve the continuing restructuring of the intergovernmental satellite organization (ISO) to result in increased private competition in international satellite telecommunications services; (2) ensure that the INTELSAT restructuring plan adopted by the INTELSAT Assembly of Parties in March 1998 is implemented in a pro-competitive manner; and (3) establish safeguards to ensure that any future INTELSAT privatized successor entity or separated entities are established on certain pro-competitive terms and conditions. Outlines similar pro-competitive requirements for the U.S. party to the International Mobile Satellite Organization (INMARSAT) and the U.S. signatory to INMARSAT and COMSAT.

Directs the Secretary of State and all other agencies involved to pursue the objectives of privatization and open commercial competition with respect to international communications through a vigorous program of international negotiation both within established international telecommunications organizations and directly with other interested nations. Requires the President to take appropriate implementation steps if such objectives have not been realized by January 1, 2003.

(Sec. 5) Amends the Communications Satellite Act of 1962 to prohibit a person from sending or receiving telecommunications services using a satellite owned or operated by an ISO or any other entity unless such person has a license or permit granted by the Federal Communications Commission (FCC) under specified requirements. Authorizes the FCC to grant an application to provide such services to, from, or within the United States using satellites owned or operated by an ISO only if the applicant is subject to the same rules and requirements as persons providing the same or similar services using U.S.-licensed communications satellite systems. Directs the FCC to require COMSAT, in its capacity as a common carrier, to waive immunity from any suit as part of its application to provide domestic telecommunications services via INTELSAT or INMARSAT. Requires any person using satellites owned or operated by an ISO for telecommunications services to, from, or within the United States to: (1) waive any privileges or immunities it may possess for the provision of domestic services; and (2) show that entry into the domestic market would promote competition for U.S. satellite communications services.

Directs the FCC to: (1) apply a presumption in favor of entry into the U.S. satellite communications services market for an ISO affiliate licensed by a World Trade Organization member; and (2) take steps to ensure that entry by such an affiliate would not raise the potential for competitive harm. Provides for the determination of potential for competitive harm.

Requires the FCC to ensure: (1) regulatory parity among all persons providing similar telecommunications services for profit by means of communications satellite systems; (2) access to such services by all persons; and (3) equal access to satellite orbital slots (requiring such slots to be reallocated if not scheduled for use within a reasonable period).

(Sec. 6) Repeals or revises obsolete provisions of such Act, including provisions made ineffective due to the initial public offering privatizing INTELSAT and INMARSAT.

(Sec. 7) Directs the President to create an Interagency Working Group to: (1) advise on international satellite telecommunications policy matters; (2) coordinate Federal agency activities in such field; (3) formulate U.S. positions; and (4) work within INTELSAT to ensure that its approved restructuring plan is implemented in a pro-competitive manner that meets the objectives outlined in this Act.

(Sec. 8) Requires the Working Group to study and report annually to the President and specified congressional committees on the state of competition in the international satellite telecommunications market. Requires the FCC Chairman to report annually to the Congress on FCC actions to implement U.S. obligations and commitments for satellite services under the Fourth Protocol to the General Agreement on Trade in Services.

(Sec. 9) Requires the Working Group Chairman to consult at least semiannually with specified congressional committees regarding progress made in achieving the objectives and purposes of this Act.

(Sec. 10) Prohibits the Federal Government, in procuring telecommunications services from private vendors, from favoring or being prejudiced against the satellite space segment operated by INTELSAT or INMARSAT.

(Sec. 13) Prohibits the FCC from engaging in, and directs the President to oppose, the auctioning of orbital slots or spectrum assignments for satellites that provide international or global communications services.