Page 28: of Maritime Reporter Magazine (November 1997)

NAV/COM UPDATE Jim-

Decision Time For Inmarsat

It was almost 20 years ago that

Inmarsat, the United Nation's (U.N.) global satellite provider, first came into being under the wing of what is now IMO. It has during that time developed its global communications network and been instrumental in the implementation of GMDSS. But now an air of uncertainty is per- vading its roots.

As the launch of the last of the net of third generation of Inmarsat satellites approaches, heralding a new era in low-cost global commu-

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Circle 245 on Reader Service Card 26 nications, the organization finds itself at a cross roads in its devel- opment.

Initially a non-profit making organization as part of the U.N., it now has to decide whether to remain in that area or to enter the cut-throat commercial world.

Its options include remaining purely a service provider and lead- ing maritime safety body funded by the U.N., or becoming a com- mercial enterprise and to achieve its stated aims while seeking to make profits.

There are those among its ranks who believe that next year, the organization will be reconstituted and recreated as a formal company with a national registration sup- ported by its members, of which

Hungary is now the 81st and lat- est. Inmarsat Director-General

Warren Grace has said that a company structure should be adopted as soon as possible after its meeting in October.

He considered the benefits to be gained operating as a business rather than an international orga- nization would include: •more flexible financial structure for existing investors and potential shareholders; • speedier decision-making process through a nominated board of directors; and •the removal of certain privileges through the inter-governmental process which would normally not be available to competing compa- nies.

Whatever decision is made, Mr.

Grace said, the organization was totally committed to the provision of distress and safety services, and denied that these tenets would be undermined should a commercial solution be adopted.

Inmarsat's operations are gov- erned by its convention. It is unique in that the organization is the only one under IMO auspices to have the power to develop and supply its own systems. This is one reason why there is such a dilemma facing Inmarsat, as it seeks to be the provider and final arbiter of how systems should operate.

It is this situation of handling commercial issues with safety matters that has reportedly caused friction. (Continued on page 34)

Maritime Reporter/Engineering News!