View source for COMSAT

{{Short description|Former U.S. telecommunications company}}
{{for|the intergovernmental organization in Pakistan|COMSATS}}
{{Use mdy dates|date=May 2025}}
{{Use American English|date=March 2019}}
{{Infobox company
| name = Communications Satellite Corporation
| logo = 
| type = 
| traded_as = 
| founded = {{Start date and age|1962}}
| founder = [[United States Congress]] by<br />[[Communications Satellite Act of 1962]]
| hq_location = [[Washington, D.C.]]
| hq_location_city = 
| hq_location_country = United States
| key_people = Leo D. Welch, Joseph V. Charyk, David M. Kennedy, George Killion, Leonard H. Marks and Bruce Sundlun
| industry = [[Telecommunications]]
| products = [[Communications satellite]]
| revenue = 
| operating_income = 
| net_income = 
| num_employees = 
}}

'''Communications Satellite Corporation''' ('''COMSAT''') is a global [[telecommunications]] company based in the [[United States]].

By 2007, it had branches in [[Brazil]], [[Argentina]], [[Colombia]], [[Mexico]], [[Peru]], [[Venezuela]] and several other countries in the [[Americas]]. Although it operated many kinds of [[data communication]] technologies, it is best known for its [[Communications satellite|satellite communication services]].

== History ==
[[File:Comsat-campinas-03.jpg|thumb|Outside view of COMSAT facilities and antenna farm near [[Campinas]], [[São Paulo (state)|São Paulo]], [[Brazil]]]]

COMSAT Corporation was created by the [[Communications Satellite Act of 1962]] and incorporated as a publicly traded company on February 1, 1963.<ref>{{cite web | title=Billion Dollar Technology: A Short Historical Overview of the Origins of Communications Satellite Technology, 1945-1965 | last=Whalen | first=David | accessdate=March 11, 2023 | url=https://history.nasa.gov/SP-4217/ch9.htm | publisher=[[NASA]] | quote=The first task of Comsat was to incorporate, which it did in the District of Columbia on 1 February 1963. }}</ref> The primary goal of COMSAT was to serve as a public, federally funded corporation intended to develop a commercial and international satellite communication system. Although the corporation was government regulated, it was equally owned by some major communications corporations and independent investors.<ref>{{citation|title=The Rise of Cable Programming in the United States: Revolution or Evolution?|publisher=University of Texas, 2003|id={{ASIN|0292752725|country=ca}}}}</ref> COMSAT began operations with its headquarters in [[Washington, D.C.]], in 1962, with a six-person founding board of directors appointed by President [[John F. Kennedy]], including: [[Phil Graham]] who served as Chairman (until his resignation in January 1963);<ref>JFK Presidential Library, dictabelt recordings</ref> Leo D. Welch, [[Joseph V. Charyk]], [[David M. Kennedy (politician)|David M. Kennedy]], [[George Killion]], [[Leonard Marks|Leonard H. Marks]], and [[Bruce Sundlun]].<ref>{{cite web|url=https://news.google.com/newspapers?nid=888&dat=19640918&id=bxYOAAAAIBAJ&pg=6593,4433191|title=Stockholders Back COMSAT Management|publisher=[[Tampa Bay Times|St. Petersburg Times]], 18 September 1964|access-date=17 May 2009}}{{Dead link|date=September 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

In August 1964, COMSAT helped create the International Telecommunications Satellite Consortium ([[Intelsat]]), an international satellite organization with the goal of global satellite coverage that today has 143 member countries and signatories. COMSAT was responsible for the launching of the [[Intelsat I|Early Bird]] [[communications satellite]], on 6 April 1965.

[[File:COMSAT Building, exterior (21439421630).jpg|thumb|COMSAT Laboratories, [[Clarksburg, Maryland|Clarksburg]], [[Maryland]]]]

To further satellite technology, in September 1969, COMSAT opened COMSAT Laboratories, a research, and development arm, in [[Clarksburg, Maryland]]. The founding director of COMSAT Labs was Bill Pritchard from 1969 to 1973. He was followed by [[Burton Edelson]], director from 1973 to 1982. Director from 1982 to 1995 Dr. John V. Evans, Dr. Ramesh K. Gupta, director from 1995 to 2000.

Following many open inquiries into ongoing disagreements with major broadcasting companies and COMSAT, the [[Federal Communications Commission|FCC]] created the [[Open Skies Policy]] in June 1972.<ref>{{cite web|publisher=FCC|title=Wired, Zapped, and Beamed, 1960's through 1980's|url=http://transition.fcc.gov/omd/history/tv/1960-1989.html}} {{PD-notice}}</ref> This policy authorized the use of satellites for domestic broadcast use and encouraged competition between different systems.<ref>{{citation|title=Communication, Commerce, and Power: The Political Economy of America and the Direct Broadcast Satellite|publisher=MacMillen Press Ltd, 1998}}</ref> In 1976, COMSAT deployed [[Marisat]], three [[geosynchronous satellite]] systems providing mobile services to the [[United States Navy]] and other maritime customers, and Comstar, a domestic satellite system. To separate these activities from its [[Intelsat]] business as required by the Federal Communications Commission, a subsidiary company named Comsat General was formed. In 1982, the [[Marisat]] satellites, along with three Marisat [[Ground station|Earth station]]s (two in the US — [[Southbury, Connecticut|Southbury]], [[Connecticut]], and [[Santa Paula, California|Santa Paula]], [[California]] — and one in [[Japan]]) formed the initial operating system for the [[International Mobile Satellite Organization|International Maritime Satellite Organization]] ([[Inmarsat|INMARSAT]]).

COMSAT provided 2-way communication via [[Geostationary orbit|geostationary satellite]] for a number of cruise ships in [[Caribbean]] and other offshore applications. The ship on-board system included an antenna stabilized with [[Spacecraft attitude control#Types of stabilization|3-axis]] gimbals, beacon signal receiver and an active control system to search and lock the antenna on the satellite during the ship maneuvers and severe waves. The system called Startrack was developed by the Canadian company Techwest Data Systems. In 1995, the system was acquired by the UK Marine Data Systems for their floating rigs operations in the [[North Sea]] and in 1996 manufacturing moved to [[Aberdeen]], [[Scotland]].

Between 1998 and 2000, COMSAT merged with [[Lockheed Martin|Lockheed Martin Corp]]. In a US$2.7 billion merger, to become an element of the subsidiary Lockeed Martin Global Telecommunications (LMGT).<ref>http://www.lockheedmartin.com/news/press_releases/1998/LockheedMartinCOMSATCombine.html Lockheed Martin - COMSAT to Combine] {{webarchive|url=https://archive.today/20070722034516/http://www.lockheedmartin.com/news/press_releases/1998/LockheedMartinCOMSATCombine.html|date=2007-07-22}} Lockheed Martin press release, 20 September 1998. Retrieved 10 January 2010.</ref> COMSAT's ticker symbol CQ was removed from the [[New York Stock Exchange]] on 2 August 2000.<ref>[https://www.nyse.com/about/listed/pse_i_historicalcomponents.shtml NYSE Historical Component Changes] {{Webarchive|url=https://web.archive.org/web/20121012011046/http://www.nyse.com/about/listed/pse_i_historicalcomponents.shtml|date=2012-10-12}} NYSE.com. Retrieved 10 January 2010</ref>

During the two-year approval process, Comsat shareholders lost about US$300 million in purchase value because of a drop in Lockheed Martin stock as the two companies struggled through complex congressional and regulatory hurdles.{{Citation needed|date=January 2010}}

With the integration of COMSAT, LMGT became the U.S. owner, and the largest shareholder, in both the INTELSAT and INMARSAT systems. INMARSAT was fully privatized on April 15, 1999. Comsat serves as the U.S. Signatory to INTELSAT, and will continue in that role until INTELSAT's expected privatization in 2001 at which point it will become a shareholder.{{Citation needed|date=January 2010}}

On 27 March 2001, LMGT announced the sale of the [[COMSAT Mobile Communications|COMSAT mobile communications]] unit, which had been aligned with the satellite services business, to [[Telenor]] of [[Norway]] for US$116.5 million. This sale was completed on 11 January 2002, and included COMSAT mobile's two Earth station facilities, one in Southbury, Connecticut, and one in Santa Paula, California.

[[Viasat (American company)|Viasat, Inc.]] acquired COMSAT Laboratories from Lockheed Martin in 2001.<ref>{{cite news|last=Madigan|first=Sean|title=Lockheed Martin sells broadband satellite arm |url=https://www.bizjournals.com/washington/stories/2001/07/16/daily7.html|date=2001-07-16|work=Washington Business Journal}}</ref>

On 7 December 2001, Lockheed Martin announced plans to exit its Global Telecommunications services business, disbanding the wholly owned LMGT subsidiary and immediately implementing actions to reassign certain of LMGT's businesses and investments to other operating segments of Lockheed Martin, sell the remaining operations, position investments for monetization, and eliminate the LMGT administrative structure. The COMSAT General telecommunications unit was realigned with the Space Systems business area.<ref>[https://web.archive.org/web/20111020212923/http://www.lockheedmartin.com/news/press_releases/2001/LockheedMartinExitGlobalTelecommuni.html Lockheed Martin To Exit Global Telecommunications Services Business] Lockheed Martin press release, 07 December 2001. Retrieved 10 January 2010</ref>

COMSAT International Holdings (CIH), formerly known as World Data Consortium, acquired an 81% of COMSAT International (formerly Enterprise Solutions-International, a provider of network services to the South American corporate market) from Lockheed Martin Corporation in the 2nd quarter of 2002.<ref name="lockheedmartin.com">http://www.lockheedmartin.com/news/press_releases/2007/LockheedMartinAnnouncesSecondQuarte_2.html Lockheed Martin Announces Second Quarter 2007 Results] {{webarchive |url=https://web.archive.org/web/20090612080803/http://www.lockheedmartin.com/news/press_releases/2007/LockheedMartinAnnouncesSecondQuarte_2.html|date=2009-06-12}} Lockheed Martin Press Release, 24 July 2007. Retrieved 10 January 2010</ref>

On 11 May 2004, Lockheed Martin announced that [[Intelsat|Intelsat, Ltd.]] would acquire Lockheed Martin's COMSAT General business for US$90 million. At that time, COMSAT General provided satellite-centric telecommunications services and equipment, concentrating on international fixed and mobile satellite systems.<ref>[http://www.lockheedmartin.com/news/press_releases/2004/LockheedMartinSCOMSATGeneralBeAcqui.html Lockheed Martin's COMSAT General To Be Acquired By Intelsat] {{webarchive |url=https://web.archive.org/web/20100626055538/http://www.lockheedmartin.com/news/press_releases/2004/LockheedMartinSCOMSATGeneralBeAcqui.html|date=2010-06-26}} Lockheed Martin press release, 11 May 2004. Retrieved 10 January 2010</ref>

In the 2nd quarter of 2007, [[BT Group]] of the [[United Kingdom]] announced the acquisition of COMSAT International from CIH,<ref>[http://www.comsatint.com/noticias.php?lang_id=1&coun_id=1&n=544&section_id=6 2007/April - BT to acquire Comsat International]{{Dead link|date=April 2019|bot=InternetArchiveBot|fix-attempted=yes}} COMSAT International press release, April 2007. Retrieved 10 January 2010</ref> and Lockheed Martin announced the sale of its remaining 20% interest in COMSAT International.<ref name="lockheedmartin.com"/>

=== Sports team ownership ===
{{See also|Colorado Avalanche|Denver Nuggets}}

COMSAT operated the [[Denver Nuggets]] of the [[National Basketball Association]] from 1989 to 2000 [https://www.washingtonpost.com/archive/politics/1989/10/22/comsat-2-businessmen-to-buy-denver-nuggets/2d4a843d-ae2d-4c40-88d2-6bd2af4f5826/link], and added to its sports portfolio by purchasing the [[Quebec Nordiques]] in 1995 and moving them to [[Denver]] as the [[Colorado Avalanche]]. The Nuggets' purchase was one of professional sports' first attempts to introduce African-Americans into ownership groups (it included [[Peter Bynoe]], a Chicago lawyer, and business partner [http://www.encyclopedia.com/doc/1G2-3431200041.html Bertram Lee], who held a combined 37.5% interest). COMSAT bought out its other shareholders in 1992.

After buying the Avalanche, COMSAT organized its Denver sports franchises under a separate subsidiary, '''Ascent Entertainment Group Inc.''', which went public in 1995, with COMSAT retaining an 80% controlling interest and the other 20% available on [[Nasdaq|NASDAQ]].<ref name="nuggetscompanyhistory">{{cite web|title=Denver Nuggets — Company History|url=http://www.fundinguniverse.com/company-histories/Denver-Nuggets-Company-History.html|publisher=Funding Universe|access-date=17 June 2007}}</ref> The franchises took convincingly different directions in terms of on-court/ice production: the Nuggets were perennially among the worst teams in the NBA (bottoming out with an 11–71 record in [[1997–98 Denver Nuggets season|1997–98]]), while the Avalanche won a [[Stanley Cup]] in their first season in Colorado ([[1996 Stanley Cup Finals|1996]]) and five consecutive division trophies under Ascent's watch. In addition, COMSAT/Ascent were responsible for the construction of the [[Ball Arena|Pepsi Center]] (which opened in 1999) where the two franchises play today, and costs began to put a drain on business.

In 1997, COMSAT agreed in principle to sell Ascent to [[Liberty Media]].<ref name="nuggetscompanyhistory"/> However, Liberty was not interested in sports ownership at the time (though it has since bought [[Major League Baseball]]'s [[Atlanta Braves]]), and made the deal contingent upon Ascent selling the Avalanche and Nuggets.<ref name=CSprings>[[The Gazette (Colorado Springs)]], 23 February 2000</ref>

After almost two years, Ascent sold the Avalanche and Nuggets to [[Walmart]] heirs [[Nancy Walton Laurie|Bill and Nancy Laurie]] for US$400 million. However, a group of Ascent shareholders sued, claiming that the sale price was several million dollars too low. Ascent then agreed to sell the Avalanche and Nuggets to Denver banking tycoon Donald Sturm for US$461 million.<ref name=Press>Schley, Stewart. [http://www.allbusiness.com/north-america/united-states-colorado/1181899-1.html Stan Kroenke's full-court press]. Colorado Biz, 2006-06-01.</ref>

However, the deal unraveled when the city of Denver insisted that Sturm promise to keep the Nuggets and Avalanche in Denver for at least 25 years before it transferred the parcel of land on which Pepsi Center stood. Sturm had bought the teams in his own name, and city officials wanted to protect taxpayers in case Sturm either died or sold the teams before the 25 years ran out. While Sturm was willing to make a long-term commitment to the city, he wasn't willing to be held responsible if he died or sold the teams. After negotiations fell apart, Liberty bought all Ascent, but kept the Nuggets and Avalanche on the market.<ref name=bizjournal>Moore, Paula. [http://www.bizjournals.com/denver/stories/2000/07/17/story4.html Why one deal went smoothly]. [[Denver Business Journal]], 2000-07-17.</ref> Finally, in July 2000, the Avalanche, Nuggets and Pepsi Center were bought by real estate entrepreneur [[Stan Kroenke]] in a US$450 million deal.<ref name="nuggetscompanyhistory"/> Kroenke is the brother-in-law of the Lauries; his wife [[Ann Walton Kroenke]] is Nancy Laurie's sister. Liberty retained only a 6.5% stake of the sports franchises. As part of the deal, Kroenke placed the teams into a trust that would ensure the teams will stay in Denver until at least 2025.<ref name=bizjournal/> After the deal, Kroenke organized his sports assets under [[Kroenke Sports & Entertainment|Kroenke Sports Enterprises]].

== See also ==
{{portal|Spaceflight}}
* [[COMSAT Mobile Communications|COMSAT mobile communications]]

== References ==
{{reflist}}

== External links ==
* [https://www.comsatteleports.com www.comsatteleports.com]
{{Intelsat}}

[[Category:Intelsat]]
[[Category:Telecommunications companies established in 1963]]
[[Category:Former Lockheed Martin companies]]
[[Category:Telecommunications companies of the United States]]
[[Category:Privately held companies based in Washington, D.C.]]
[[Category:1963 establishments in Washington, D.C.]]
[[Category:Colorado Avalanche owners]]
[[Category:Denver Nuggets owners]]
[[Category:1999 mergers and acquisitions]]
[[Category:Telecommunications companies disestablished in 2007]]
[[Category:2007 disestablishments in Virginia]]
[[Category:American companies established in 1963]]