by Gerry Oberst

Comments are being submitted in response to two consultations on space policy in Europe, one from the European Commission and another from the British National Space Centre (BNSC). The papers released almost simultaneously in late January both recognize the contributions of commercial space operations, as part, however, of much larger themes and goals.

The Commission document, called a "Green Paper" and prepared jointly with the European Space Agency (ESA), has a consultation deadline at the end of this month. Its focus is intensely European, noting that growing challenges relating to security and space use have led to a "complete reappraisal of the role of Europe in space." It leads with a provocative statement that "no European nation is capable of independently maintaining a space policy at the necessary level."

Would the BNSC agree with that assessment? The BNSC’s draft "U.K. Space Strategy" says Europe is "clearly central" to that strategy, with roughly 70 percent of U.K. government expenditure throughout the last year devoted to European programs. Nevertheless, it also says the U.K. government’s vision for civil space is to be the "most developed user of space-based systems." One of its objectives is to induce companies to place headquarters in Britain for space-based activities.

The British strategy is to invest in space for three primary purposes: expanding knowledge, creating opportunities for commercial exploitation of satellite systems and advancing key public services. The European Commission document is not as focused on specific programs, commenting that space policy in Europe contains "certain ambiguities" flowing from the more strategic, rather than commercial, nature of space.

Nevertheless, both papers measure the size of the world space market in commercial terms, but using different definitions that make comparison difficult. The BNSC paper sets forth global revenue forecasts, measured in dollars, showing an industry of just more than $80 billion in 2001 that is predicted to rise to almost $140 billion by 2007. A large part of this increase would come from substantially expanding satellite services markets, including the core market of media distribution, broadband and Internet access. The Commission document speaks in terms of expenditures, measured in Euros, showing a worldwide market of Euro 167 billion (U.S.$177 billion) in 2001. Despite this apparently broader focus, at some other points this document refers to the "space industry" as if it included only the manufacture and sale of satellite infrastructure, without including the services, which are an integral part of that industry.

A large part of revenues or expenditures, no matter how one measures them, come from the communications satellite sector. Beyond the revenues, however, the impact of that sector is strongly recognized in both papers. The Commission paper argues that space systems are closely linked to a competitive knowledge-based society. The U.K. paper says satellite services are "recognized as a strategic, value for money contribution to the global knowledge-based economy."

Both papers contain short but valuable references to regulatory issues. The BNSC says that one theme cutting across all its objectives is to maximize benefits from space infrastructure and services through a stable and balanced regulatory regime. It calls for increased clarity in the licensing regime for launching and operating satellites. Here we think the BNSC is focused in the wrong area–this increased clarity is needed more with respect to licensing services and network infrastructure used with space resources rather than for satellite operations, much less for launching regimes. The BNSC language on helping service providers is somewhat limp, saying that one action should be to "represent the legitimate interests" of service providers, giving only the example of discussion with the U.K. Radiocommunications Agency on spectrum matters. This area could use a lot more attention.

The Commission paper is more specific on regulatory matters, and there is a helpful discussion on the need for European approaches toward licensing services. It argues "the aim should be to eliminate regulatory barriers hampering the swift settlement of problems of licenses for operating and installing terminals," which it labels as an "indispensable condition" for obtaining sufficient investment for European services and developing new markets.

In addition to this specific recognition of licensing issues, the Commission paper refers to the need for EU members to act jointly within the ITU and its World Radiocommunication Conferences with respect to spectrum allocations. The Commission says these efforts should be further intensified to better present European positions. It also notes the need for open and shared standards to enhance commercial efficiency.

The underlying goals of these papers are likely different, but the advantages to the commercial satellite sector from clear space strategy seem obvious. Although discussion of the "space sector" frequently seems to focus more on the launch and hardware aspects than commercial services, any recognition of societal benefits from commercial space services is welcome.

Gerry Oberst is a partner in the Brussels office of the Hogan & Hartson law firm. His email address is [email protected].