International Telecommunications Competition Act of 1985

International Telecommunications Competition Act of 1985 - Amends the Communications Act of 1934 to create a new title dealing with international telecommunications. Declares that it is U.S. policy to: (1) rely upon marketplace competition and the private sector to provide international telecommunications services; (2) reduce unnecessary regulations; (3) encourage entry by new carriers into the international communications marketplace; and (4) promote the interconnection of international telecommunications facilities based upon the cost of providing such facilities.

Directs the Federal Communications Commission (FCC) to deregulate international telecommunications services or carriers as competition develops, unless the deregulation may result in a significant adverse impact upon the national defense and security or emergency preparedness or upon the competitiveness of U.S. businesses with foreign competitors.

Directs the FCC to publish a list of those international telecommunications carriers which are regulated by the FCC on the date of enactment of this title. Declares that the FCC shall have continuing authority over the provision of telecommunication services by dominant international carriers.

Authorizes the FCC to classify or reclassify as a dominant international carrier any international telecommunications carrier that has market power. Lists factors that the FCC shall consider in determining whether a carrier has such market power. Requires that, notwithstanding any other provisions of this Act, any carrier that has control over essential facilities or that owns both international and domestic transmission facilities in excess of $50,000,000 shall be classified as a dominant international carrier for at least two years.

Requires each international telecommunications service which is being provided under tariff on the date of enactment to continue to be regulated for at least six months. Directs the FCC to determine which of such services must continue to be regulated beyond such six months. Directs the FCC to review biennially any determination that such a service must be regulated.

Requires every international telecommunications carrier to establish, upon reasonable request, interconnection of its regulated service or facilities with: (1) a telecommunications carrier; (2) a telecommunications facility or Government telecommunications system; and (3) any customer premises equipment which is owned or leased by a customer of such carrier. Prohibits the charges for such interconnection from being imposed in a discriminatory manner. Requires such charges to be based on the cost of the services or facilities provided for such interconnection.

Requires that telecommunications carriers which provide both international telecommunications and domestic telecommunications treat the two operations as separate entities for purposes of interconnection requirements. Requires such carriers which provide interconnection between their domestic and international operations to provide other carriers with interconnection of equal quality and at the same rates. Sets forth the maximum penalty for violations of the interconnection requirements.

Amends the Communications Satellite Act of 1962 and the International Maritime Satellite Act to require the President to: (1) supervise and issue instructions to the Communications Satellite Corporation (Comsat) concerning its relationships and activities with foreign governments, international entities, and the International Telecommunications Satellite Organization (Intelsat) to ensure that such relationships are consistent with national interest and U.S. foreign policy; (2) make his or her instructions to Comsat concerning foreign governments, international entities, Intelsat, or the International Maritime Satellite Organization (Inmarsat) available to the public upon conclusion of the event to which they pertain; and (3) appoint Government representatives to participate in all of Comsat's activities with Intelsat and Inmarsat.

Requires the FCC: (1) upon receipt of the agenda for an Intelsat or Inmarsat meeting, to provide public notice and opportunity for comment on the agenda; (2) to make recommendations to the President, which shall be made public, on instructions to Comsat; and (3) to require Comsat to place all Intelsat and Inmarsat documents, with specified exceptions, which are circulated to foreign signatories in a file for public comment prior to the event to which they pertain.

Authorizes the FCC to issue instructions to Comsat on regulatory matters within the FCC's jurisdiction. Requires the President's instructions to prevail over FCC instructions. Declares that such instructions shall be binding.

Directs the FCC to issue a report for the public on the responses to public comments on Intelsat and Inmarsat documents and on the implementation of FCC instructions to Comsat.

Requires the Corporation, after a specified time, to engage solely in: (1) investing in Intelsat and Inmarsat; (2) representing the United States on the Intelsat Board of Governors and the Inmarsat Council; (3) furnishing Intelsat services; (4) furnishing Inmarsat services; and (5) researching and developing new technologies for the Intelsat and Inmarsat satellite systems. Requires the Corporation to divest all divisions and affiliates that engage in any other activity.

Imposes penalties for violations of this Act.

Establishes the Satellite Communications Study Commission to analyze and report to the Congress, the President, the Departments of State and Commerce, and the FCC on: (1) United States access to the satellite communications services of Intelsat; (2) the economic impact of the existing structure of participation and representation and alternative arrangements; and (3) changes necessary in the public interest. Authorizes appropriations.