space industry bulletin

24
M anaging satellite filings costs Ofcom in the order of £1m per year on average. To date, Ofcom has performed this work at no charge to the organisations who request that it manages their satellite filings, but it has announced its intent to start recovering those costs from April, and detailed what those filing costs will be. Ofcom consulted on propos- als for satellite filing charges in June 2018 and received support for its preferred charging option. In a statement it has set out the charges that it is now introducing. These charges, which include an upfront application fee, an on- going annual charge for the man- agement of the filing process, and an application fee for notifi- cation requests, will likely come as something of a shock for ap- plicants, particularly given Ofcom’s assertion that it can take up to seven years for a filing to be approved. Typical estimated costs come in at £12,600 for a non-coordi- nated API filing with five years to notify, £27,750 for a coordi- nated GSO or non-GSO filing (<100 ITU units) with six years to notify, £36,550 for a consoli- dated GSO/non-GSO filing (≥100 ITU units) with six years to notify, and £40,150 for a coordinated non-GSO filing with EFPD (≥100 ITU units with six years to notify. Ofcom notes that, in each case, these charges are less than the total estimated costs for these filings as outlined in the 2018 consultation. In tandem with these new costs, Ofcom has also published its updated procedures for the application and management of satellite filings. l Full report page 6 Ofcom issues statement on satellite filings cost recovery Mitigation goals and guidelines needed to tackle orbital debris CONTENTS Industry news 2 l OneWeb launch secures $1.25bn in new funding l FAA aims to simplify rules on launch and re-entry l Scotland has ambition for £4bn space sector l China suffers second space industry setback l A European Space Council is needed to better reflect the importance of the space sector l Space industry growth will drive growth in cyber attacks Satellite market analysis 6 l Ofcom warns that satellite filings can take seven years l Satcom outlook for 2019 means companies must innovate or die Space economy 8 l Value of global space economy to grow almost three-fold by 2040 l Effective space agencies are key to realising sector’s full potential Orbital debris mitigation 16 l Addressing the challenges of increasingly congested space Technology 18 l New technologies open up space manufacturing opportunities Future missions 19 ESA invitations to tender 20 UK Space Agency grants 22 Space Industry Bulletin VOLUME 2 • ISSUE 4 www.spaceindustrybulletin.com Market analysis and business intelligence for the space community THIS ISSUE IN NUMBERS... A t the International Sym- posium on Ensuring Sta- ble use of Outer Space, JC Liou, chief scientist for orbital debris at NASA, made a presen- tation on the need for orbital de- bris mitigation in support of space situational awareness and space traffic management. Highlighting that the orbital debris population has continued to increase over time despite decades of efforts to limit the generation of new debris, he pointed to a future that could see a 330% rise in the numbers of large (≥10cm) orbital debris if no action is taken. Noting that prevention (or- bital debris mitigation) is a better solution than cure (orbital debris remediation), he pointed to key sections in the US Space Policy Directive 3 (the National Space Traffic Management Policy) which sets out goals and guide- lines for orbital debris mitigation. He also highlighted the lack of data on small debris above 600km altitudes. l Full report page 16 $926bn Potential value of the global space economy by 2040 Page 12 157% Growth in number of space companies in five years Page 14 7 Number of years it can take to complete satellite filings Page 6 55k Potential number of large orbital debris objects by 2210 Page 16 300% Return on £1 public spending in the UK space industry Page 15 $3.4bn Takeover bid for Inmarsat from investor consortium Page 10

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Managing satellite filingscosts Ofcom in theorder of £1m per year

on average. To date, Ofcom hasperformed this work at nocharge to the organisations whorequest that it manages theirsatellite filings, but it hasannounced its intent to startrecovering those costs fromApril, and detailed what thosefiling costs will be.

Ofcom consulted on propos-als for satellite filing charges inJune 2018 and received supportfor its preferred charging option.In a statement it has set out thecharges that it is now introducing.These charges, which include anupfront application fee, an on-

going annual charge for the man-agement of the filing process,and an application fee for notifi-cation requests, will likely comeas something of a shock for ap-plicants, particularly given Ofcom’s assertion that it cantake up to seven years for a filingto be approved.

Typical estimated costs comein at £12,600 for a non-coordi-nated API filing with five yearsto notify, £27,750 for a coordi-nated GSO or non-GSO filing(<100 ITU units) with six yearsto notify, £36,550 for a consoli-dated GSO/non-GSO filing (≥100ITU units) with six years to notify,and £40,150 for a coordinatednon-GSO filing with EFPD (≥100

ITU units with six years to notify.Ofcom notes that, in each case,these charges are less than thetotal estimated costs for thesefilings as outlined in the 2018consultation.

In tandem with these newcosts, Ofcom has also publishedits updated procedures for theapplication and management ofsatellite filings.l Full report page 6

Ofcom issues statement onsatellite filings cost recovery

Mitigation goals and guidelinesneeded to tackle orbital debris

CONTENTSIndustry news 2

l OneWeb launch secures $1.25bn

in new funding

l FAA aims to simplify rules on

launch and re-entry

l Scotland has ambition for £4bn

space sector

l China suffers second space

industry setback

l A European Space Council is

needed to better reflect the

importance of the space sector

l Space industry growth will drive

growth in cyber attacks

Satellite market analysis 6

l Ofcom warns that satellite filings

can take seven years

l Satcom outlook for 2019 means

companies must innovate or die

Space economy 8

l Value of global space economy

to grow almost three-fold by 2040

l Effective space agencies are key

to realising sector’s full potential

Orbital debris mitigation 16

l Addressing the challenges of

increasingly congested space

Technology 18

l New technologies open up

space manufacturing opportunities

Future missions 19

ESA invitations to tender 20

UK Space Agency grants 22

Space Industry

Bulletin

VOLUME 2 • ISSUE 4 www.spaceindustrybulletin.com

Market analysis and business intelligence for the space community

THIS ISSUE IN NUMBERS...

At the International Sym-posium on Ensuring Sta-ble use of Outer Space,

JC Liou, chief scientist for orbitaldebris at NASA, made a presen-

tation on the need for orbital de-bris mitigation in support ofspace situational awareness andspace traffic management.

Highlighting that the orbitaldebris population has continuedto increase over time despitedecades of efforts to limit thegeneration of new debris, hepointed to a future that couldsee a 330% rise in the numbersof large (≥10cm) orbital debrisif no action is taken.

Noting that prevention (or-bital debris mitigation) is a bettersolution than cure (orbital debrisremediation), he pointed to keysections in the US Space PolicyDirective 3 (the National SpaceTraffic Management Policy)which sets out goals and guide-lines for orbital debris mitigation.He also highlighted the lack ofdata on small debris above600km altitudes. l Full report page 16

$926bn Potential value of the

global space economyby 2040Page 12

157%Growth in number ofspace companies in

five yearsPage 14

7Number of years it can

take to completesatellite filingsPage 6

55kPotential number oflarge orbital debris

objects by 2210Page 16

300%Return on £1 publicspending in the UK

space industryPage 15

$3.4bnTakeover bid for

Inmarsat from investorconsortium Page 10

2 www.spaceindustrybulletin.com

Industry news

Following a successfulsatellite launch, OneWebhas announced that it has

secured its largest fundraisinground to date with thesuccessful raise of $1.25 billionin new capital. This brings thetotal funds raised to $3.4 billion.This round was led by SoftBank,Grupo Salinas, QualcommTechnologies and theGovernment of Rwanda.

The new funds enable thecompany to accelerate thedevelopment of a globalcommunications network by2021. OneWeb says its systemwill deliver high speed, lowlatency, seamless broadbandaccess, everywhere on Earth.

“This latest funding roundmakes OneWeb’s serviceinevitable and is a vote ofconfidence from our coreinvestor base in our businessmodel and the OneWeb valueproposition,” said CEO AdrianSteckel. “With the recentsuccessful launch of our first sixsatellites, near-completion ofour innovative satellitemanufacturing facility with our

partner Airbus, progresstowards fully securing our ITUpriority spectrum position, andthe signing of our first customercontracts, OneWeb is movingfrom the planning anddevelopment stage todeployment of our fullconstellation.”

OneWeb Satellites will ramp-up production this spring at itsmanufacturing facility inExploration Park, Florida.Following the company’s

successful launch of satelliteson February 27th, OneWeb willembark on what it describes asthe largest satellite launchcampaign in history. Starting inQ4, OneWeb will begin monthlylaunches of more than 30satellites at a time, creating aninitial constellation of 650satellites to enable full globalcoverage. After this first phase,OneWeb will add more satellitesto its constellation to meetgrowing demands.

OneWeb launch secures$1.25bn in new funding

Chinese state mediareported the failure ofa rocket developed by

OneSpace to reach orbit witha satellite payload, markingthe second failed orbitallaunch by a privately fundedChinese firm in five months.

The anomaly, caught onfilm by a spectator and reportedby Reuters, appeared to occuraround 44 seconds into thelaunch of OneSpace’s OS-M1rocket. The state-run China Dailynewspaper quoted OneSpaceCEO Shu Chang as saying hiscompany is determined tocontinue with its research anddevelopment of rockets. He said:“I accept today’s failure. Other

solid-propellant carrier rocketsbefore ours also have hadsetbacks in their development,but all of them passed throughhard times and eventuallysucceeded. Explorations inscience and technology havesuccesses and failures. We willnever flinch or quit.”

The OneSpace OS-M1 wascarrying the Lingque-1B Earth-

observation satellitedeveloped by Beijing-basedZeroG Lab. The satellitemaker, partly funded byShenzhen-listed HuaxunFungzhou, has plans to build anetwork of remote sensingsatellites.

OneSpace became thefirst private Chinese firm to sendan independently developedrocket into space in May lastyear, followed by successfulsuborbital launches by iSpace.But the OS-M1 satellitedeployment failure comes justfive months after Beijing-basedLandspace attempted to delivera satellite into orbit in Octoberbut failed.

Tens of private Chinesespace companies have joined arace in recent years to developrockets capable of deliveringlow-cost micro-satellites withcommercial applications,backed by mostly Chineseventure capital.

Reuters noted that Beijinghas encouraged privateinvestors to participate in itspush to commercialise someaspects of the space industry,setting up funds and opening upgovernment launch sites fortheir use. One of China’s near-term ambitions is to developsatellite systems of remotesensing, communications,navigation and positioning.

China suffers second space launch setback

FAA aims on launch A

s the UK looks todevelop its own rulesfor minimising risk

from space launch activities,using the existing US FAAregulations as a startingpoint, the FAA itself hasproposed new rules that itbelieves will streamlinefederal commercial spacetransportation requirementsfor future launch, re-entry andlaunch site providers.

The proposed rule followsthe National Space Council’s2018 ‘Space Policy Directive2’, which called on theSecretary of Transportation toreview and revise theDepartment’s commercial

Image courtesy of ESA, CNES, Arianespace

www.spaceindustrybulletin.com 3

Industry news

Scotland has ambitionfor £4bn space sector

Innovation minister IvanMcKee has asserted thatScotland’s space sector could

be worth £4 billion by 2030.Speaking during a parliamentarydebate on Scotland’s spacesector potential, Mr McKeeoutlined the ScottishGovernment’s ambitious plansto introduce at least onespaceport by the early 2020s.

More small satellites are builtin Glasgow than any other placein Europe, and nearly a fifth of allUK space jobs are based inScotland. Findings from the Sizeand Health of the UK SpaceIndustry 2018 report show a27% increase in the number ofspace organisations in Scotland.

There are now more than 130space organisations in Scotland– including the headquarters of83 UK space industry firms –and these organisationsgenerate a combined income of£140 million. Mr McKee said:“Scotland already has aninnovative and diverseengineering base, with world-class companies competing ininternational markets. As acountry already punching aboveits weight in the space sector, weare in a great place to

consolidate these existingstrengths.

“Our ambitious plans for thespace sector need strongleadership to succeed, and weare working with the ScottishSpace Leadership Council, whichhas representatives from allparts of the sector includingpotential launch sites, satellitemanufacturers and data analysisbusinesses.

“Together I’m confident wewill deliver the aspiration forScotland to become a £4 billionindustry by 2030 and beEurope’s leading space nation.”

That view was endorsed byScottish Conservative MSPEdward Mountain, who said thatall MSPs should get behindproposals to increase thecountry’s space capabilities.

to simplify rules and re-entry

space launch and re-entrylicensing regulations. “Theserules will maintain safety,simplify the licensing process,enable innovation, and reducecosts to help our countryremain a leader in commercialspace launches,” said USsecretary of transportationElaine Chao.

The proposed rule wouldprovide a safe, performance-based regulatory approach tocommercial spacetransportation. It wouldpromote safety practices bycreating flexibility foroperators to meet safetyrequirements, and byenhancing collaborationamong stakeholders. The rule

would also improve efficiencyby encouraging potential andcurrent launch site andreentry operators to suggestand implement design andoperation solutions.

The proposed ruleadvances proposals by theStreamlined Launch andReentry Licensing Require-ments Aviation RulemakingCommittee, which is made upof commercial space andaviation leaders fromgovernment and industry.Formed by the FAA a year ago,the Committee discussed andput forward proposals andrecommendations to theagency. The proposed ruleannounced today is a result ofthat effort.

The establishment of aEuropean Space Council,attached directly to the

European Council or itspresident, is needed to set inmotion a process to defineEurope’s vision for space. Sosaid Elżbieta Bieńkowska,commissioner for internalmarket, industry,entrepreneurship and SMEs,speaking at the 11th Conferenceon European Space Policy.

She added that this would bethe culmination of a processaiming at emphasising thecomprehensive strategic natureof the European space sector

and the need to projectEuropean ambitions in spacearound a shared, long-termvision endorsed at the highestpolitical level and allowing spaceto be positioned at the core ofthe political debate whileensuring a coherent Europeanapproach.

Initially driven by sovereigntyand autonomy-relatedconcerns – in particular in thefield of access to space – MsBieńkowska argues thatEuropean space policy hasbecome increasingly economy-oriented. However, thisbusiness-led approach is

preventing space beingaddressed from a morepolitical angle. “Today thereis a growing awareness ofthe need to revisit the‘European way’ to bettercope with a fast-changinginternational landscape.

“The future position ofEurope in space willstrongly depend on its capacityto reconcile its approach with astrategic vision defining clearambitions, a consistentimplementation across theboard, and to decide onallocations of resourcesaccordingly. The establishment

of a European Space Council,able to define such vision at thehighest political level and toagree on decisive principles witha far-reaching and long-termimpact would certainly be timelyto pave the way ahead of Europein space and of space in Europe.”

A European Space Council is needed to betterreflect the importance of the space sector

4 www.spaceindustrybulletin.com

Industry news

The commercial growth inthe space industry willpresent a larger attack

surface from a cyber securityperspective, and willdemonstrate a growing need toassure the security of theintegrated network, themanufacturing supply chain andthe information transmission,analysis and storage.

So says Gordon Sweny, cyberlead for defence and space atPwC, who added: “Only throughimplementing security andprivacy by design, and assuringfor safety and security, willspace enterprises obtain andsustain customer confidence inthis growing market.”

The Centre for the Protectionof National Infrastructure(CPNI) judges that criticalnational infrastructure (CNI)sectors represent core strategicinterests for foreign intelligenceservices. “Many CNI sectors, ofwhich space is one, are bringingtheir operational technology andcontrol systems online to easemonitoring and management,which is increasing the digitalattack surface for these foreignintelligence services to exploit,”said Mr Sweny.

“Combining this intent withthe commoditisation of hackingtools, made available to non-nation state adversaries,increases the threat of digitalinterference to the space sectoreven further.”

With a relatively segmentedvalue chain, Mr Sweny arguesthat the sector would benefitfrom more consolidated threatintelligence. This would help the‘manufacturing’, ‘operations’ and‘applications’ segments to

quantify risk and enhance theresilience of services.

The space sector wasdesignated a CNI in 2015 andthe UK Space Agency is on ajourney to understand the scopeof its obligations in this context;not least of which isunderstanding and improvingsecurity across the sector.

“Longer term, we see a future where effective securitylicensing processes are matchedby the agency assuming, in roleif not in name, the function of aNetwork and InformationSystems (NIS) CompetentAuthority,” said Mr Sweny. “Inorder to achieve this, the sectoris seeking to understand theexisting situation from anetwork point of view, cruciallywhere the dependencies lie.”

He added that space sectororganisations would benefitfrom a more evolved

understanding of informationsecurity and how their cybermaturity benchmarks againstothers in their sector and acrossother CNIs.

Research partnershipRecognising that understandingthe risks to these importantassets and how they aremanaged is critical for ensuringthe security of futureinfrastructure, a researchpartnership has been set up byNCC Group and the University ofSurrey to advance securityresearch within the spaceindustry.

Establishing a centre ofexcellence through the SurreySpace Centre and Surrey Centrefor Cyber Security, this newpartnership will utilise theUniversity’s world-leadingexpertise in technologicalinnovation and focus on high-

impact research to improve theunderstanding of current andfuture security challenges facingthe industry.

Andy Davis, transportassurance practice director atNCC Group, said: “Cybersecurity research in this field isurgently required andestablishing this centre ofexcellence will help furtherincrease knowledge about thepotential threats facingemerging space assets.”

Dr Mark Manulis, deputydirector of Surrey Centre forCyber Security added: “Spaceand satellite systems open up anew frontier for cyber securityresearch, both in academia andindustry. Through thispartnership with NCC Group wehope to contribute to the designof new security technologies forfuture nanosatellites and groundcontrol equipment.”

Space industry growth willdrive growth in cyber attacks

Space Industry Bulletin is available on UK subscription

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USA $540, Rest of the World £450 or $580.

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Volume 2, Issue 4 • April 2019

Wales will play host to the 2019 UK Space Conference.This biennial flagship event brings together the entire spacecommunity, including government, industry, academia, researchand financial communities. The conference will offer the spacecommunity unrivalled opportunities to meet, network, do businessand shape the landscape for the coming years.

The event will be held at the International Convention Centre (ICC)

Newport, WalesThe UK Space Conference is considered the most influential event for the space community, bringingtogether government, industry and academia, to build links, share opportunities and address mutual concerns at a crucial time of unprecedented change and growth for the sector.

The 2019 conference is set to be the biggest andmost significant event to date with over 1,200delegates anticipated. The ICC Wales, an £84million investment development, is due to openshortly before the 2019 event. This biennialconference has been held previously in Glasgow,Liverpool and Manchester, with the first held in2011 in Warwick.

The UK Space Conference provides a vital forumfor the UK space sector, academia and policymakers to network, debate, form newcollaborations, and do business.

For further information, please contactthe event team:E: [email protected]: +44 (0)117 906 4573Twitter: #ukspace2019follow @ukspace2019

Newport, Wales24-26 September 2019

We are working with the spacesector to build on our significantcapability and maximise the benefitsof space to life on Earth, creating jobsand opportunities across the country.

The UK Space Conference is afantastic event for sparking the kind ofcollaborations and partnerships thatwill help our sector grow. I amdelighted that Wales will be hostingthe 2019 conference and I’m sure itwill build on the huge success of the2017 conference in Manchester.

Dr Graham TurnockCEO, UK Space Agency

Businesses anticipating that theycould have a satellite designed, built,launched and operational with 12

months need to factor into their thinkingthat the filing process can take up to sevenyears. Furthermore, as of 1 April this year,Ofcom is now charging for handling thesatellite filing process.

Currently, the majority of communi-cations satellites are located ingeostationary orbit (GSO). There are plansfor many new non-geostationary orbit (non-GSO) satellite systems which typicallyoperate at a lower altitude than GSOsatellites and can operate in multiple orbitalplanes. Spectrum and orbital positions arevaluable and limited resources and must bemanaged and planned to allow equitableaccess to all and mitigate any potentialinterference. Satellite filings in certainfrequency bands are required to coordinatewith higher priority filings.

To operate a satellite network/system, itis necessary to obtain access to appropriatespectrum – for the uplink (Earth to space)and the return path downlink (space toEarth) from the satellite to stations in theservice area. An orbital position in space,which influences the area of the Earth’ssurface that the satellite can serve (thecoverage area), must also be secured.

Obtaining international recognition ofthese spectrum and orbital resourcesrequires an associated satellite filingthrough the International Telecommuni-cations Union (ITU). As the notifyingadministration of the UK, Ofcom submitsand manages all satellite filings to the ITU onbehalf of organisations registered in the UK,the British Overseas Territories, the ChannelIslands and the Isle of Man. Ofcom’s roleensures that new satellite filings can be

brought into service without causingharmful interference to, or receiving harmfulinterference from, existing or plannedservices, as required under the ITU RadioRegulations.

Applicants must establish, to thesatisfaction of Ofcom, that their satelliteproject can be realised within the relevantregulatory time limits and the relevanttechnical and operational parameters. Inparticular, Ofcom needs to be satisfied withthe content of the management andtechnical due diligence deliverables providedby the applicant, and that the application isconsistent with the ITU and UK tables offrequency allocations.

Satellite filing timescalesOnce a filing has been submitted, Ofcom willprocess it and submit it to the ITU within ten

days. “ITU will look at it and consider it, andwithin four months they commit to publishit in a biweekly report,” says ElizabethQuitana, head of satellite industryengagement at Ofcom. “Then every otheradministration which receives the report hasfour months to comment. Some will say ‘yes,please coordinate with one of my services’and the ITU will publish those comments. Alltold, that’s an eight-month process.

“If you have an Earth observationsatellite, or a satellite service which doesn’tneed to coordinate, then you can launchyour satellite and notify it. If however, you areusing a satellite that does need coordinationyou now have to go to the operators of allthose different networks, coordinatebilaterally with them and make sure that youcan both operate without causinginterference to each other. We can help if

6 www.spaceindustrybulletin.com

Satellite market analysis

Ofcom warns that satellitefilings can take seven years

TYPICAL GANTT CHART SHOWING BUSINESS PLAN MILESTONES

ID Task Name 2015 2016 2017 2018 2019 2020

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

1 RFP for satellite(s) 28/06/2015

2 Spacecraft contract awarded 08/12/2015

3 RFP for ground segment 14/12/2016

4 Spacecraft CDR 16/11/2017

5 Launch vehicle RFP contract award 19/09/2018

6 Spacecraft integration and launch

7 Start of service

31/12/19

GROWTH IN ACTIVE FILINGS (2003 TO 2017)

www.spaceindustrybulletin.com 7

Satellite market analysis

CHARGES FOR OFCOM’S SATELLITE FILING WORK FROM 1 APRIL 2019

there are difficulties, but as anyone who hasbeen in these meetings will know,coordination can be quite an aggressivenegotiation process. And in some cases, it isnot always possible to achieve coordination.Because of that, the ITU gives you sevenyears to notify or ‘bring into use’ yoursatellite. And I can guarantee you that ifyou’re a GSO operator you take every one ofthose seven years to do it.”

That timescale is someting that smallsatellite operators might not haveconsidered, expecting that they can design,build and launch within a year. “When they suddenly realise that they need tocoordinate and that it might take quite a longtime, that’s a bit of a rude awakening,” saysMs Quintana.

Another fly in the ointment is that the ITUdivides up the world into three differentregions. Region 1 covers Europe, Russia,Africa and the Middle East; Region 2 coversthe Americas; and Region 3 is Asia andAustralasia. Equipment developed for oneregion may or may not work in the other two.“Satellite services tend to have globalservices, so when we look for satelliteallocations we try to get them globallyharmonised,” she adds.

Updating the rulesEvery four years, the radio regulations areupdated to reflect the changes in howspectrum is used. The next opportunity todiscuss changes is at the World Radiocommunications Conference (WRC) inNovember. High priority items for this year’sWRC include 5G frequency bands, but alsounder discussion are mobile Earth stations(antennas on aircraft and ships), TT&C for

small satellites, and the rules around bringingmega constellations into use.

Why might this last rule be important? “Atthe moment you can file and then you haveseven years to coordinate your satellitenetwork and bring your satellite into use,”says Ms Quintana. “You can also file for asmany different orbital planes and as manysatellites as you would like to deliver yournetwork. This one filing secures yourspectrum and orbital resources upfront.

“At the moment, you can file for a megaconstellation, put up one satellite withinseven years and thereby secure indefinitelyall those resources. Others then have tocoordinate with you even if you don’t put upanother satellite.

“So what this agenda item is trying to dois to bring in a series of milestones thatmeans that after a while if you don’t use yourfiling, you lose your rights to those orbitalresources and spectrum. Again, this isdesigned to help new services gain theresources that they might need in thefuture.”

Ms Quintana notes that there is potentialgood news for small satellite operators, witha proposal through the ITU to shorten thecoordination process for short durationmissions. “This agenda item relates tosatellites in orbit for no more than threeyears and for constellations of less than tensatellites,” she says. “Once again, this is theITU trying to work to meet the needs ofnewer satellite operators.”

l The process that organisations filingthrough the UK are required to follow areset out in Ofcom’s ‘Procedures for theManagement of Satellite Filings’

Satellite filings costsOfcom says that managing satellite filingscosts it approximately £1m per year onaverage. To date, Ofcom has performed thiswork at no charge to the organisations whorequest that it manages their satellite filings.The Government initiated legislation to giveOfcom new powers in 2017 (under section28A of the Communications Act 2003) torecover those costs for this work from theorganisations that request it.

Ofcom consulted on proposals forsatellite filing charges in June 2018 andreceived support for its preferred chargingoption to introduce the following charges forits satellite filing work:l An upfront application fee for newsubmission (and modification) requests.Non-GSO (geostationary orbit) filings withEPFD (Equivalent Power Flux Density) maskassessments will be charged a higher upfrontapplication fee than for all other filing types,recognising the extra work they require.l An annual management charge betweenthe initial request and notification, incurredon 1 April annually (unless suspended orsuppressed/cancelled), with differentcharges for different filing types based on thecomplexity of coordination requirements:

– Non-coordinated API (AdvancePublication Information) filings;

– Less complex coordinated GSO andnon-GSO filings (<100 ITU units); and

– More complex coordinated GSO andnon-GSO filings (≥100 ITU units).

l An application fee for notificationrequests. Non-coordinated filings will becharged a lower application fee thancoordinated filings, recognising theirreduced complexity.

Filing activity/type Effort weighting Payment due Charges (2019/20)

Submissions (and modifications)

New filing requests (except non-GSO EPFD filings) 1.0 £1800

New non-GSO EPFD filing requests 3.0 £5400

Annual management

API filing 1.0 £1800pa

CR/C GSO and non-GSO filing (<100 ITU units) 2.0 £3600pa

CR/C GSO and non-GSO filing (≥100 ITU units) 3.0 £5400pa

Notifications

API requests 1.0 £1800

CR/C GSO and non-GSO requests 1.3 £2350

Exceptional cases

Determined on a case by case basis TBD On date request To be notified

is accepted and agreed

On date of

request/application

Q1 annually (on

receipt of invoice)

On date of

request/application

8

Charges will apply to requests for all newfiling submissions (and activities related tothose new submissions) received by us from(and including) 1 April 2019. The relative sizeof each charge will reflect the average levelof effort involved for that activity and filingtype. Existing filings received on or before 31March 2019 will not incur charges.

Ofcom argues that it undertakes severaltypes of activities in dealing with satellitefilings, and has laid out the activities whichit considers fall within the meaningchargeable ‘satellite filing work’. These canbe summarised as:

l Submitting the filing application: asset out in the Procedures, Ofrom reviews thesatellite operator’s business plan, assessesand validates the filing’s technical charact-eristics and ensures it is content with thedue diligence requirements, before sub-mitting the filing to the ITU. This activityincludes addressing queries from the ITUbefore the submission is accepted and caninvolve meetings with the operator bothbefore and during submission.

For submissions containing frequenciessubject to coordination, the date of receiptis vital in securing priority against othersatellite filings. For some submissionsOfcom will also liaise with the UK Ministry ofDefence for relevant frequency assignments,and assess and submit EPFD masks forrelevant non-GSO filings.

l Managing the filing: this is an ongoingpart of Ofcom’s satellite filing work followingthe initial submission until the filing is readyto be notified, which can take up to sevenyears. The details Ofcom submits arecirculated to other NRAs, who Ofcom thenengages with as necessary to coordinate thefiling during that period. Specific activitiesOfcom carries out here are:

– handling correspondence betweenNRAs, the ITU and satellite operatorsand organisations, arising from thepublication of the filing in the BR-IFIC(Ofcom’s level of work variesdepending on coordinationrequirements)

– reviewing the BR-IFIC to considerimpacts on active UK filings anddrafting of appropriate responses toNRAs

– international coordination meetingsand ratification of coordinationagreements between organisations,where required; and

– due diligence meetings andinformation (including annual reviewof progress reports as well asinformation specified in table 1 of theProcedures) to ensure satelliteoperators remain on track with theproject (against the original filing).

l Notifying the filing: once Ofcom issatisfied that all coordination (includingsufficient measures to mitigate interferencefor APIs) is complete or carried out to theoperator/organisation’s best efforts, Ofcomsubmits the notification information to theITU. Once the satellite filing has beennotified, it then obtains internationalrecognition. This activity covers work we do,until the point that the filing is published asnotified and recorded in the MIFR, to:

– assess technical characteristics of thefiling and check against requiredmilestones;

– liaise with the UK MOD for relevantfrequency assignments;

– analyse coordination and addressoutstanding requirements;

– submit the notification to the ITU, andaddress their queries before thenotification is accepted – includinghandling Return of Notices under PartIII-S, and requesting Radio RegulationNo. 11.41 (RR 11.41), where required;

– review and submit Resolution 49submissions where required, whichcontain information on the satellitefiling, manufacturer and launchservice provider; and

– confirm the satellite has been broughtinto use (BIU) with the ITU andoperator.

Satellite market analysis

www.spaceindustrybulletin.com

ESTIMATED CHARGES FOR A NON-COORDINATED API FILING, 5 YEARS TO NOTIFY

£12,000

£9,000

£6,000

£3,000

£0

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 TOTAL

£1800 paidon application

Notification

Ongoing annual charge

New filing submission

£1800 paidon application

£1800 papaid in Q1

Total estimated cost £12,600

The total estimated cost of £12,600 compares with

total estimated costs of £13,100in the 2018 consultation

COORDINATED GSO/NON-GSO FILING (<100 ITU UNITS), 6 YEARS TO NOTIFY

£25,000

£20,000

£15,000

£10,000

£5,000

£0Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 TOTAL

£1800 paidon application

Notification

Ongoing annual charge

New filing submission

£2350 paidon application

£3600 papaid in Q1

Total estimated cost £25,750

The total estimated cost of £25,750compares with total estimated

costs of £35,300 for GSO filings inthe 2018 consultation

9

Satellite market analysis

www.spaceindustrybulletin.com

l Maintaining notified UK filings: in orderto protect the operational characteristics ofnotified satellite filings from proposals fornew/modified filings, Ofcom reviews the BR-IFIC, and draft responses as appropriate(between NRAs, the ITU and satelliteoperators/organisations). This activity maybe ongoing in perpetuity followingnotification, as filings can remain in placeindefinitely (subject to extensions), ifoccupied (and replaced) by a satellitecapable of transmitting or receiving on thefiled frequency assignments. This includessatellite filings which have been suspended

and only ceases when a satellite filing iscancelled/suppressed. This activity is alimited proportion of our overall satellitefiling work.

In addition, although most cases ofinterference to/from notified satellites areresolved directly by the satellite operatorsconcerned:

– where interference originates in the UK,Ofcom may provide advice, investigateand resolve specific sources, and carryout any relevant enforcement action;

– where interference originates outsidethe UK, Ofcom has the ability to pass

issues to other administrations toinvestigate;

– where interference arises betweensatellite networks, Ofcom has the abilityto investigate and (if necessary andappropriate) request UK operators tostop interfering. For satellite networksfiled with other NRAs Ofcom can liaisewith those other NRAs in order toresolve the case.

l Ad hoc requests: from organisations orNRAs which go beyond normal managementof the filing (as set out above), for modifyinga filing, transfers, suspensions, lodging anappeal to the Radio Regulations Board(RRB), cancellations/suppressions, andbringing a filing back into use.

l Policy and project work: work Ofcomcarries out to support satellite filings policy,for example international work on AgendaItem 7 at WRCs and updates to theProcedures.

Filing cost categoriesSatellite filing costs comprise a number ofrelevant cost categories, the relevance ofeach is summarised below:l Spectrum projects and programmes:the majority of costs in this categorycomprise the FTE costs of staff (plusassociated direct costs) supporting thesatellite filings process. This category alsoincludes a proportion of staff effort anddirect costs from relevant projects andprogrammes which support our satellitefiling work.

For example, it includes a share of thecosts of Ofcom’s satellite international work,as some of that work supports Agenda Item7 at WRCs. Other relevant projects can varyfrom year to year, for example Ofcompreviously ran a project to update its satellitefiling procedures.l Spectrum technology, engineering andenforcement (STE&E): not frequentlyapplicable to satellite filings but canoccasionally be required. For example,investigation of cases where a UK notifiedsatellite suffers interference.l International: relevant proportion ofmemberships for the ITU and CEPT.l ICT and property and other commoncosts: both apportioned based on thenumber of FTEs providing satellite filingeffort.

Average satellite costs by category are:spectrum policy projects and programmes –45%; spectrum technology engineering andenforecement – 1%; international member-ship – 15%; ICT – 14%; and property andother common costs – 25%.

l Extracted from the Ofcom statementon satellite filings cost recovery

CONSOLIDATED GSO/NON-GSO FILING (≥100 ITU UNITS) , 6 YEARS TO NOTIFY

£35,000

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 TOTAL

£1800 paidon application

Notification

Ongoing annual charge

New filing submission

£2350 paidon application£5400 pa

paid in Q1

Total estimated cost £36,550

The total estimated cost of£36,550 compares with total

estimated costs of £35,300 forGSO filings in the 2018 consultation

COORDINATED NON-GSO FILING WITH EPFD (≥100 ITU UNITS), 6 YEARS TO NOTIFY

£40,000

£35,000

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 TOTAL

£1800 paidon application

Notification

Ongoing annual charge

New filing submission

£2350 paidon application£5400 pa

paid in Q1

Total estimated cost £40,150

The total estimated cost of£40,150 compares with total

estimated costs of £50,900 forfilings in the 2018 consultation

10 www.spaceindustrybulletin.com

Satellite market analysis

Recent satellite operators’ earnings andtheir 2019 outlook reflect continueddisruption and transformation in the

Satcom industry. Here we look at satellitecommunications industry trends, challengesand growth opportunities, and provide asummary of recent results of leading satcomoperators, including SES, Eutelsat, Intelsat,EchoStar, Viasat, Iridium and Orbcomm.Video and fixed data revenues continue

to decline; growth is being driven bynetworks for government, mobility, broad-band and IoT. The industry is undergoing amajor transformation and recent resultsvalidate this continuing trend. GEO satelliteoperators struggled to grow their traditionalsatellite TV broadcasting and fixed databusiness in 2018 and provided flat todeclining 2019 revenue guidance due tocontinued capacity pricing pressure.

However, most operators saw growth innetwork connectivity, in particular for thegovernment and mobility verticals. Thegovernment market is driven by demand forsecure, resilient global high capacitynetworks for military intelligence andsituation awareness. Mobility representscommunications on the move, broadbandaccess for ships, aeroplanes and vehicles.These market verticals, in addition to satelliteIoT services, remain key growth drivers forthe satcom industry. Capacity pricing pressure accelerates;

oversupply and soft video and fixed datademand. Satellite capacity pricing has fallenfor the last three years by 32-57% acrossdifferent applications and regions, and thisdecline has accelerated over the last twelvemonths, according to Northern Sky Research.This is due to new capacity coming from HighThroughput Satellites (HTS) and intensecompetition among existing players.

Despite this, demand remains soft asvideo, the largest satellite communications

market, continues to lose subscribers to OTT(over-the-top) media streaming over theinternet. This trend appears to be accel-erating in North America; indeed, AT&Tparent company of Direct TV recentlyannounced it would not order anyreplacement satellites, signalling a potentialexit from satellite TV altogether.Early adopters of innovative tech-

nologies are well-positioned for growth inmultiple markets. SES has been successfulin growing its networks business anddelivered strong double-digit growth in thissegment in 2018 driven by the governmentand mobility markets with its unique MEOnetwork capability of high throughput and lowlatency global connectivity. In addition, Viasatreported record revenue growth and YTDbookings from government, In-flightconnectivity and US consumer broadbandsupported by the highest capacitycommunications satellite ever launched lastyear (ViaSat-2).Breaking into the $6 trillion-dollar telco

data networking market is essential forsatcom growth. Satcom capacity isexpected to grow eight-fold from 1.3Tbps in2017 to nearly 10Tbps by 2022 from newVHTS satellites and LEO mega-constellations,according to Euroconsult. However, satellitescurrently only account for 1% of the $6 trilliontelecom data market.

In order to break into this marketdecisively and gain market share, satcomoperators need to rapidly innovate across the

entire ecosystem in order to drive bettereconomics and interoperability in space andon the ground. This will enable satellitesolutions to be an integral part of themainstream data network with terrestrialfibre and 5G, and accelerate growth.The number of connected IoT devices

is expected to increase significantly in thecoming years for both personal andcommercial applications. This has drivenmany smallsat startups to target the low-cost, high-latency narrow-band IoT market.Robust double-digit IoT subscriber growth ofLEO satellite operators (Iridium andOrbcomm) in 2018 supports momentum inthis market.

While we think there are opportunities todrive down costs in satellite IoT, companiesthat can develop capable networks providingend-to-end applications and services willcreate greater value over the long-term.Iridium is executing well in existing verticals(including heavy equipment, consumer,government, transportation, utilities andmanufacturing) and expanding into newmarkets such as UAVs, connected ships,aircraft and vehicles. Keeping a close eye on the C-Band

Alliance for 5G roll-out in the US. The FCCis expected to issue a final order on clearingspectrum from the C-Band Alliance (Intelsat,SES, Eutelsat and Telesat) for wirelessoperators to accelerate US 5G rollout in mid-2019, but this is far from a done deal. FCCapproval could bring the four operators asmuch as $40 billion to pay down debt andinvest in new capabilities.

However, influential US lawmakersrecently threatened to prevent the FCC fromallowing foreign satellite companies to pocketall that money. Comcast Corp and T-MobileUS have separate proposals for the FCC tohold an airwaves auction to open up 5G-dedicated bandwidth that could bring billionsof dollars to the US government.

l Author Josephine Millward is head ofresearch at Seraphim Capital

Satcom outlook for 2019 meanscompanies must innovate or die

INMARSAT AGREES TO $3.4 BILLION TAKEOVER

GLOBAL SATCOM EQUIPMENT MARKET FORECAST Source: Variant Market Research

Inmarsat has accepted a $3.4bn takeover bid from a consortium of investors, includingBritish venture capital group Apax Partners and US buyout firm Warburg Pincus. Ifsuccessful, the takeover will represent the second time Apax has held an interest in thecompany, having bought shares in 2003, before listing the company on the London StockExchange in 2005. The board of directors is said to believe that the offer is “fair andreasonable” and is recommending that shareholders accept the offer.

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

CAGR 8.6% (2017-2025)

US $39.61

www.spaceindustrybulletin.com 11

Satellite market analysis

COMMUNICATIONS SATELLITE OPERATORS’ 2018 YEAR END RESULTS Commentary: Seraphim Capital

SES REPORTS FULL YEAR 2018 SALES OF 2 BILLION EUROS, UP 2% Y/Y

saw strong double-digit growth (16% y/y) in its networks business driven by government and mobility;

management expects momentum in networks to continue and become more than 40% of its revenue mix by

2020. The strength in networks is a result of the company’s early adoption of technology innovation with its

unique MEO/GEO hybrid constellation to provide high throughput and low latency global connectivity. On the

other hand, the market for satellite TV remains challenging; video (65% of total revenue) was down 5% y/y.

Outlook for 2019 is flat to slightly down, assuming a 5% y/y decline in video with pressure in North America.

2020 guidance assumes 1% y/y decrease in video.

EUTELSAT REPORTS H1 2018-2019 REVENUE OF 660 MILLION EUROS, DOWN 4% Y/Y

Three out of its five markets were down including its core business video (66% of sales). Video was down 2%

y/y, fixed data (10% of sales) fell 12% y /y, while fixed broadband (6% of sales) decreased of 6% y/y. Fixed

data continues to face intense competition and pricing pressure, and scarcity of capacity in Europe led to lower

revenue for fixed broadband. On the other hand, government services (12% of sales), was up 2% and mobility

(6% of sales) grew 7% y/y. Eutelsat confirms its financial broadly stable outlook of in FY 2018-2019 and return

to slight growth from FY 2019-20. Guidance implies a stronger H2 to meet its full year target of flat revenue.

INTELSAT REPORTS FULL YEAR 2018 REVENUE OF $2.16 BILLION, UP SLIGHTLY FROM LAST YEAR

Q4 revenue was down 4% y/y due to decrease in renewals and lower pricing in its government, media, and

networks segments. The media division was hit particularly hard by a drop in US and Latin America video

consumption. Management lowered its 2019 outlook to a 3% y/y decrease in revenue. Guidance assumes a

revenue/EBITDA decline of 3 % and 6 % for both its media and networks division, and a 1 % and 2% decline

in its government services. Management is focusing on bringing new HTS and managed services to new

customers, as well as clearing spectrum to sell for future 5G services.

ECHOSTAR REPORTS A WEAKER THAN EXPECTED Q4

2018 revenue of $2.1 billion, up 11% y/y. driven by double-digit growth from consumer broadband and

international expansion, partially offset by capacity price erosion and lease cancellations. Hughes’ consumer

broadband business delivered strong growth (+25% y/y) to $1.18 billion in 2018, but the company expects

growth to slow in North America with its satellite reaching capacity. 2019 outlook is reduced to approximately

5% y/y growth.

VIASAT SEES REVENUE GROW 45%

Viasat’s Q3FY 2019 revenue grew 45% y/y to $555 million from strength in all three segments including

commercial networks, government and satellite services. YTD new contract awards are up 39% y/y from record

government awards, in-flight connectivity and US consumer broadband. Viasat believes its strategy of superior

bandwidth productivity and investment in the new ViaSat 3 constellation will support its continued growth

through expansion into new markets such as community Wi-Fi and broadband enterprise services.

IRIDIUM REVENUE GROWTH 17% TO $523 MILLION

Iridium reported a strong 2018 and expects momentum to continue with capabilities of the new constellation.

Revenue grew 17% y/y to $523 million, the highest growth as a public company. Key drivers included

commercial IoT, government, and hosted payload. With capabilities of its new LEO network and products,

Iridium sees new growth opportunities in maritime, aviation, land mobile and expansion of its IoT verticals

including heavy equipment, consumer, government and others. Longer term, it sees new opportunities in UAS,

connected ships, trucks and vehicles.

ORBCOMM REPORTS A Q4 MISS ON A TOUGH HARDWARE COMPARABLE

Orbcomm is focused on improving its M2M IoT offerings and providing the most complete transportation

solution. 2018 sales were $276 million, up 9% y/y. The increase is driven by service revenues, which grew 14%

y/y to $154 million. Outlook for 2019 is 5%-8% growth for recurring service revenues.

12 www.spaceindustrybulletin.com

Space economy

The global space economy can grow toUSD 926bn by 2040, an almost three-fold rise from a current value. This

translates to a compound annual growth rate(CAGR) of 4.6%. And beyond this the marketcould grow to over USD 2tn by 2045. Mostforecasts however are contingent uponreusable rockets being commerciallyoperational in the next couple of years andsatellite broadband being a success.

While traditional satellite, government andmilitary applications in space will continue togrow, the space economy will start to havemajor spillovers across several industries. Theemergence of satellite broadband internet isone such example, and this will provide thekey growth delta, being forecast to grow intoa USD 300bn market by 2040. This figuredoes not factor in internet revenuesgenerated from internet advertising, e-commerce and other traditional internetrevenue sources.

The ground equipment market, namelysatellite observation stations, will need togrow alongside the number of new satelliteslaunched, which will be determined byreusable rocket technology producing lowerlaunch price points. A 5% CAGR in annualsatellite launches over the next 22 years isforecast, and this will grow the groundequipment market to USD 331bn by 2040.

Other segments of the space economy –namely ‘government’ and ‘other’ – areforecast more conservatively to grow at a lowsingle-digit annual growth rate withrespective forecast values of USD 130bn andUSD 68bn by 2040; growth risk forecast ismuch lower in these segments. Little furthergrowth to the satellite consumer TV marketis anticipated, which will maintain at USD 98bn.

Inflection pointIn the last decade, several factors haveconverged to bring us closer to an inflectionpoint in the business of space than at anyother time. These include a surge in privatesector investment, as well as major advancesin both rocket and satellite technology.Mainstream financial markets are only juststarting to awaken to the commercial anddisruptive opportunities that space offers, astechnology is starting to tear down the highentry barriers to access space.

In the next two years, we will likely witnessthe first commercial space tourism flights tolow orbit space by Virgin Galactic and Blue

Origin and the launch of the first satelliteinternet service by Space X. These will beimportant catalysts for the space economy,awakening consumers and investors to thecommercial possibilities of space, andcreating demand for new applications, notunlike the trajectory of the online economyover the last 20 years.

CommercialisationAdvances in rocket technology are producingsmaller, lighter and more powerful rockets,which have lowered the cost of launch to lowEarth orbit (LEO). A new generation of low-cost light rockets have emerged to deliverlight payloads to LEO.

Over the next decade, launch costs arepredicted to decline ten-fold. Part of thisdecline will be driven by the mainstreamadoption of reusable rocket technology. Whilefuel accounts for most of the weight of arocket, most of the cost is in the hardware.This argues for substantial cost savings fromreusability.

However, not all launch cost savings aredue to rocket technology. Manufacturingsupply chain consolidation has cut launch

costs, particularly in Europe, as has greaterhuman capital productivity; almost 90% ofthe cost of a rocket is manpower.

Declining costs are lowering the barrier toinvesting in space. The key growth catalyst forthe space industry in the last two decadeshas come from the private sector. Accordingto Goldman Sachs, USD 13.3bn alone hasbeen spent on new space start-ups since theyear 2000.

Rising private sector investment isdiversifying the traditional focus of spaceaway from government/military use and intoareas as diverse as satellite internet, spacetourism, space mining, etc. Moreover,increasingly affordable private satellites willprovide data on weather, floods and pollutionthat could have a huge impact on thedevelopment of agriculture and urbanisation.

Government spending in space programstotalled USD 62.2bn in 2016 and is expectedto increase to USD 79bn annually by 2026(Source: Euroconsult). But much of theincremental investment in the spaceeconomy will likely come from the privatesector, with start-ups opening a new era ofopportunities for investors.

Value of global space economy togrow almost three-fold by 2040

FALLING COSTS OF LAUNCH TO SPACE

USD Cost per kg of LEO (USD)

Source: Company data, FAA, UBS

www.spaceindustrybulletin.com 13

Space economy

Disruption in the satellite sectorAdvances in satellite technology, includingminiature satellites, high throughput satellitesand constellation satellites, are disrupting thetraditional satellite operating market.Cubesats can now be as small as 10x10x10cmand as light as 1kg, and can be launched for aslittle as USD 40,000. A single high throughput(HTS) satellite can offer more internetbandwidth than the sum of everythingcurrently in orbit.

Meanwhile, constellations of smallsatellites can grow orbit bandwidth by a factorof ten at rapidly falling costs (source: GS).Greater satellite capacity and smaller sizesimply lower launch costs augurs, spurring asubstantial rise in satellite supply and a rapiddecline in prices. The situation is furtherexacerbated by weakening demand fromtraditional end markets such as satellite videoand TV due to competition, further pressuringprices down.

However, the flip side to the new low costsof satellites is new demand creation from endapplications in communications, surveillanceand other new areas. Many of these willdovetail as major disruptive trends unfoldover the next three decades. The area ofgreatest commercial potential here, in ourview, will come from satellite broadbandinternet.

According to Nielsen Online, there arecurrently some 4 billion internet usersworldwide. Three quarters of the remainingunconnected population are located in just 20countries. With the falling costs of satellitelaunches, the potential to offer affordable andcompetitive internet access via satellite isbecoming a real prospect.

According to Ibis World, the provision ofinternet services currently has a global valueof USD 620bn. Based on the simplisticpremise of doubling the existing number ofinternet users, halving the current cost ofaccess suggests a market worth at least USD300bn. This does not factor in the additionalUSD 720bn in revenues from internetadvertising, e-commerce, social media andothers.

Other new marketsWhile new unconnected geographies areobvious markets where satellite internet canbe competitive versus terrestrial services,other new areas are emerging. One potentialgrowth market for satellite networks is mobilebackhaul – the transfer of digital data frommobile cell sites to data centres. According toVizcom, the cost of Mbps over satellite will fallsix-fold over the next two years while trafficwill double due to high throughput satellites.

Backhaul by satellite will be especiallycost-effective for mobile operators in areaswhere terrestrial backhaul over fibre or cablebecomes too expensive.

The rising demand for bandwidth over thenext couple of decades suggests a wider rolefor satellite broadband, particularly asconnectivity costs fall. Digital data doublesevery two years, with the size of the globaldigital universe set to reach around 44zettabytes (ZB) by 2020 – a 50-fold increasefrom 2010.

Further, as we become increasingly relianton satellites for collecting data, we will alsosee a proliferation of applications for dataanalysis in logistics, agriculture, maritime andretail. It is also likely that satellite networks willbecome an increasingly versatile and cost-effective solution to address the connectivityneeds of the IoT industry.

Space tourismThe cost of accessing space for individualshas fallen from USD 20m, paid by Dennis Titoin 2001 to fly to the ISS, to USD 250,000, theprepaid cost of a ticket to sub-orbital spacewith Virgin Galactic. The key to successfulspace tourism will be rocket reusability.

The two key players, Virgin Galactic andBlue Origin, are pursuing this route throughtheir respective SpaceShipTwo and NewShepard rocket models. Because it will besome time before these companies canachieve payback on their initial investments,ticket costs for sub-orbital space travel arelikely to remain expensive and out of range formost individuals. But if the launches by bothcompanies prove successful, they will act ascatalysts for space economy investment aswell as the share prices of stocks exposed tothe space economy.

Asteroid miningAccording to Goldman Sachs, a singleasteroid the size of a football field couldcontain USD 25–50bn worth of platinum.Asteroid mining could help eliminate thescarcity of several resources on Earth, as wellas transfer the pollutive aspects of mineral

extraction off-planet. Some asteroids containlarge quantities of water, carbon andphosphorus, while others have an abundanceof precious metals like platinum.

Asteroid mining could potentially redefinethe concept of natural resources on Earth.According to Planetary Resources, aroundtwo trillion tons of water are available on near-Earth asteroids.

While the financial and technologicalbarriers to asteroid mining are considerable,as the cost of manufacturing spacecraftdeclines, the chances for exploration andextraction of resources should increase.

Space-based manufacturingThe idea of manufacturing in space is not anew one, as it already exists on a small scaleas a necessary feature of long-duration spacemissions and exploration. Typically, it involves3D printers, manufacturing tools and spare orreplacement parts for use in space, as hasbeen happening on the ISS.

The employment of advanced robotics tobuild infrastructure and habitats on moonsand planets for long-term missions ahead ofmanned space missions will also lay thefoundations for future potential space-basedmanufacturing. The key challenge formanufacturing goods off-planet for use onEarth will be sourcing raw materials fromother bodies in space and the cost of freightback to Earth.

Scalable space-based manufacturing isseveral decades away but will likely becatalysed by advances in robotics andartificial intelligence, as well as by themainstream use of reusable rockettechnology. Space manufacturing to meet thespecific requirements of activities in space islikely to experience rapid growth in a shorttime frame.

l Extracted from the report Longer TermInvestments in Space by UBS

GLOBAL SPACE ECONOMY VALUE BY 2040

Source: Satellite Industry Association, UBS

Satelliteinternet300

Other130

Government68

Consumer TV68

Groundequipment

331

14 www.spaceindustrybulletin.com

Space economy

The UK Space Agency has publishedtwo reports (see panel) looking at thebenefits of investments in space

programmes, with one report looking atspillovers from investment, and the otherproviding an economic evaluation of theSpace for Smarter Government Programme(SSPG). Both reports come as managementconsulting firm Arthur D Little publishesinsights on what is required of a nationalspace agency in what it defines as the era ofSpace 4.0 (NewSpace), recommendingmeasures that can help decision makers torealise their national space sector’s fullpotential.Today, the space industry is undergoing a

paradigm shift, driven by changes inmotivations, actors, roles, and technologies.While Space 3.0 has been characterised bylarge government investments and public-public collaborations, Space 4.0 is a moredemocratised and accessible field with morepublic-private and private-private collabor-ations. It entails the emergence of a plethoraof small to medium-sized private companies.In fact, we are already in the middle of this

movement. Since 2000, roughly 350 privatespace companies have been established, andthe growth rate of newly established firms isaccelerating rapidly. With the risingopportunities in Space 4.0, the number ofspace companies established per year hasmore than doubled in the past five years. This

momentum has also sparked unprecedentedprivate investments in the space sector, with112 venture capital deals worth nearly USD3.9 billion in 2017 alone – approximatelydouble the annual budget of the JapaneseSpace Agency, JAXA.

Major implicationsThe emergence of private space participantshas major implications for the incumbents ofthe space industry, especially for traditionalspace agencies. They need to define theirfuture places in the space industry carefully.The future agency’s roles will build upon thetraditional mandate and assure that the

agency is a key enabler of Space 4.0. ArthurD Little believes the future agency shouldassume the following roles:

Enable the national space sector: Thefuture agency should define and pursueinitiatives to enable private and public spacesector participants. This includes providingaccess to infrastructure, creating human-capital development programs, providingtargeted funding and promoting the spacesector.

Foster private sector growth andattract foreign business: A key charac-teristic of Space 4.0 is the increasedparticipation of private space actors. More

Effective space agencies are keyto realising sector’s full potential

ESTABLISHED EMERGING SPACE COMPANIES

ROLES OF THE FUTURE SPACE AGENCY

Establish a conducive and strategicregulatory framework

Foster private sector growthand attract foreign business

Be the national space sector’sinternational face

Drive strategic space activities

Define and communicate aclear vision and strategy

Enable the national space sector

Source: Arthur D Little analysis based on publicly available data, NSR

Source: Arthur D Little

www.spaceindustrybulletin.com 15

Space economy

and more of these are international and arelooking for the best national spaceecosystems in which to thrive. Therefore, thefuture agency should introduce initiatives toattract foreign investment and foster privatesector participation in the national spacesector.

Define and communicate a clear visionand strategy: Together with the executivepower, the future agency should continue toset long-term strategic objectives to provideclear direction to all participants of thenational space sector – both public andprivate. In addition, each participant’s rolesand responsibilities in the national spacesector need to be defined. This is typicallyachieved by defining a comprehensivenational strategy and communicating it to allactors of the sector through a space policy.

Establish a conducive and strategicregulatory framework: Together with therelevant regulatory authorities, the futureagency should continue to enact a regulatoryframework that provides legal certainty andserves as a strategic tool to enable andincentivise private sector participation.

Be the national space sector’s inter-national face: Since Space 3.0, spaceexploration has been a truly internationalendeavour. The future agency shouldcontinue to forge international collaborations(for example leading space agencies, govern-ments, aerospace companies, academicinstitutions) to be fully integrated in theinternational space ecosystem, participate inmajor projects and build local know-how.

Drive strategic space activities: In linewith the space agency’s traditional role, thefuture agency can be involved in drivingstrategic space activities such as sciencemissions. The activities assigned to theagency should not put it in competition withother actors of the sector. Therefore, theyshould be limited to strategic space activitiesthat are not fully pursued by other actors ofthe national space sector due to their scope,economic viability or other reasons.

Insight for decision makersThe global space industry is undergoing aparadigm shift. It is at the cusp of a new era,moving from Space 3.0 which, as we havediscussed, was character-ised by largegovernment investments and public-publicrelationships, to Space 4.0, a moredemocratised and accessible field with public-private and private-private relation-ships. To operate under such a paradigm, the

success of national space programs hinges ontransforming their space agencies towardsfuture-proof entities that act as key enablersof Space 4.0 – or on establishing spaceagencies in the first place – as well as assuringthat all enablers for Space 4.0 are in place.Arthur D Little has identified key questions

that decision-makers should ask themselvesto understand whether the national spacesector is ready for Space 4.0:l Is there a clear vision and strategy in placefor my space sector that gives a cleardirection and sets long-term developmentobjectives and priorities?l Are the initiatives that will implement thesector strategy clearly defined and ade-quately empowered (for example, funding),and do they have clear responsibilities?l Is the space sector’s regulatory frameworkconducive to the strategy by assuring legalcertainty and serving as a strategic tool at thesame time?l Are the required international partner-ships in place to assure the national spacesector’s integration into the internationalecosystem and help localise know-how?l Is the space agency’s role in the spacesector clearly defined, and does it facilitate

cooperation and support of the private sectorto truly enable the space sector?l Is the space agency’s organisationalstructure agile and outward-looking, in orderto embrace innovation and partner with publicand private actors?The space sector has been increasingly

moving from specialised activity within thedomain of superpowers and large industrialconglomerates and corporations to a moredemocratised and accessible undertaking.The spur of new actors, both public andprivate, as well as emerging space countries,has created a new impetus for space agenciesand governments as key space sectorenablers. They have the potential to establishand drive a flourishing space sector in the eraof Space 4.0.

l Extracted from the Arthur D Littlereport ‘The Space Agency of the Future’

SPILLOVERS IN THE SPACE SECTOR

The wider benefits of space investments for the UK economy

Every £1 of public spending generates£3-4 in value for the recipients in thespace industry, with additional wider

spillover benefits to the UK economy. Theseare the findings of the “Spillovers in thespace sector report” which was carried outby London Economics on behalf of the UKSpace Agency. The report reviews theevidence of spillovers in the space industryand assesses the impact of severalprogrammes that have received Agencyfunding, highlighting the critical role thatthese grants playThe report looks at a number of

programmes, including Reaction Engines’SABRE, the ExoMars mission, the Govern-ment’s Space for Smarter GovernmentProgramme (SSGP) and the National SpaceTechnology Programme (NSTP)The UK government committed £60

million of funding to support thedevelopment of SABRE. This is underpinnedby a pre-cooler heat exchanger that can coolan incoming stream of air from 1000–150°Cin one hundredth of a second. This heatexchanger has applications in a number ofmarkets that also have extreme thermalmanagement needs. Examples include: pre-cooling technology for high-performanceautomotive; industrial heat recuperation;battery cooling systems; and coolingsystems for power stations.ExoMars is a mission to search for life on

Mars, with the UK leading the build of the‘Rosalind Franklin’ Mars rover. The project

developed advanced welding techniquesthat are now being used to manufacturealuminium cans, saving 12% on rawmaterials, or £100m in total. Potentialspilllovers include the development ofbuggies for airport transport which couldcontribute £10m to UK GDP and navigationsensors in areas with no access to satellitepositioning and navigation technologies,which could contribute £7.2m to UK GDP.SSGP is a UK Space Agency programme

that aims to promote the uptake of spaceproducts and services in government andthe wider public sector. One example is the‘Air Quality Hotspot Mapper’ projectdeveloped by the University of Leicester andlater exploited by its spin-out company,EarthSense. The spillover benefits includedEarthSense data being used to underpin theBBC’s free-to-use ‘MappAir’ service whichprovides postcode level data on trafficpollution, which was used by 2 million userswithin the first 48 hours of launching.NSTP is the Agency’s national capability

programme that provides funding toorganisations looking to develop spacetechnologies. The second phase of theprogramme funded 120 projects, withawards totalling £8.4 million. Funding hassupported the progression of R&D fromearly/proof of concept stage towards theend goal of commercialisation. As a result,80% of project leads were able to reportthat their project has been de-risked tosome degree.

16 www.spaceindustrybulletin.com

Orbital debris mitigation

Orbital debris (OD) – human-madedebris in Earth orbit – is a keyproblem that needs to be addressed,

with a population growth that will present anincreasing risk to space missions. As a matterof urgency, we need to mitigate orbital debrisin support of space situational awareness(SSA) and space traffic management (STM).The number of catalogued orbital debris

populations is growing rapidly. Today the USCombined Space Operations Center(CSpOC) tracks around 23,000 large objectsand catalogues most of their orbits. With theincreasing number, so the total material massin Earth orbit continues to increase and hasnow exceeded 8,000 metric tons. There is nosign of this slowing down.When we talk about the 23,000 large

objects, this is orbital debris of size 10cm orgreater. But we can add to that objects thesize of a marble or greater (above 1cm) ofwhich there are some 500,000, plus over 100million objects in the millimetre size range,about the size of a grain of salt.While the mission-ending threat is

dominated by the small (mm to cm sized)debris impacts, even sub-millimetre debrisposes a realistic threat to human spaceflightand robotic missions, due to the high impactspeed in space – around 10km/sec in LEO.

Long-term OD problemOrbital debris is already a very real problem,and the population continues to increase,despite decades of efforts to limit thegeneration of new debris. For example, in theUS, NASA drew up orbital debris mitigationguidelines in 1995, while the US Government

set out orbital debris mitigation standardpractices in 2001. And the Inter-AgencySpace Debris Coordination Committee (IADC)drew up space debris mitigation guidelines in2002, followed by the UN COPUOS in 2007.The four guiding principles of orbital

debris mitigation to limit the generation ofnew debris are:l Limit mission-related debris (adapterrings, payload covers, etc)

l Minimise accidental explosionsl Avoid accidental collisionsl Follow post-mission disposal (the 25-year rule, etc).

The graph top right is an extrapolation ofthe historical population of debris objects ofsize greater than 10cm in LEO to show howdifferent mitigation measures will impactpopulation growth. Failure to take anyeffective action could see the orbital debrispopulation grow by over 330% over the next200 years.When we look at managing the long-term

orbital debris problem, both mitigation(prevention) and remediation (cure) arediscussed. As the proverb says, prevention isbetter than cure.

Mitigation goals and guidelinesSpace Policy Directive 3 (SPD-3), theNational Space Traffic Management Policy,contains key references and guidelinesspecific to orbital debris. Under Section 4,Goals, it says: “It is in the interest of all tominimise new debris and mitigate effects ofexisting debris. “This fact, along with increasing numbers

of active satellites, highlights the need toupdate existing orbital debris mitigationguidelines and practices to enable moreefficient and effective compliance, andestablish standards that can be adoptedinternationally.”Further, under Section 5, Guidelines,

Space Policy Directive 3 states: “The UnitedStates should pursue active debris removalas a necessary long-term approach to ensure

Addressing the challenges ofincreasingly congested space

MASS OF OBJECTS IN ORBIT CONTINUES TO INCREASE

Green triangles indicate when key OD mitigation requirements,standard practices, and guidelines were first established

NOTIONAL CUMULATIVE SIZE DISTRIBUTION OF CURRENT LEO CROSSING OBJECTS

www.spaceindustrybulletin.com 17

Orbital debris mitigation

the safety of flight operations in key orbitalregimes. This effort should not detract fromcontinuing to advance international protocolsfor debris mitigation associated with currentprograms.”

Short-term OD problemThe orbital debris population follows a power-law size distribution. This means there issignificantly more small debris than largedebris. Therefore, mission-ending risk isalways dominated by small debris impacts.Conjunction assessments and potential

collision avoidance manoeuvres against thetracked objects (which are typically 10cm andlarger) only address a small fraction (<99%)of the orbital debris impact risk.A recent NASA Engineering and Safety

Center panel study concluded that the risk ofmillimetre-sized orbital debris represents thehighest penetration risk to most operational(robotic) spacecraft in LEO. However,currently more than 400 missions operatebetween 600 and 1000km altitudes, andthere is a lack of data on such small debrisabove 600km.Direct measurement data on such small

debris is needed to support the developmentand implementation of cost-effectiveprotective measures for the safe operationsof future missions.This again is covered within SPD-3,

Section 4, Goals, which states: “The UnitedStates should continue to engage in andenable science and technology research anddevelopment to support the practicalapplications of SSA and STM. These activitiesinclude improving fundamental knowledge ofthe space environment, such as thecharacterisation of small debris.”Further, it says: “Space traffic

management shall mean the planning,coordination, and on-orbit synchronisation ofactivities to enhance the safety, stability, andsustainability of operations in the spaceenvironment.”In conclusion, there are two priorities to

enhance the safety, stability, and sustain-ability of operations in the future spaceenvironment. First is to improve SSA on smalldebris, especially the millimetre-sized debrisin LEO, to better protect future spacemissions. Second is to improve existing orbital debris

mitigation best practices and promote betterglobal compliance to slow down the debrispopulation growth for the long-term sustain-ability of near-Earth space activities.

l Extracted from the presentation by JCLiou, chief scientist for orbital debris atNASA, at the International Symposium onEnsuring Stable Use of Outer Space:addressing the challenges of increasinglycongested space

25-YEAR RULE IMPLEMENTATION SUCCESS RATES (SIMULATIONS)

CURRENT NASA ORBITAL DEBRIS DATABASE

US CSPOC TRACKS AROUND 23,000 LARGE OBJECTS AND CATALOGUES THEIR ORBITS

18 www.spaceindustrybulletin.com

Technology

The global space industry is boomingand is set to be worth over £400 billionby 2030. The UK space sector has

trebled in size since 2000 and with furthersignificant growth predicted, presents amajor opportunity for high-value manufac-turing companies. To help businesses makethe most of new manufacturing opportunitiesin this booming sector, the Coventry-basedManufacturing Technology Centre (MTC) ishosting the Made for Space event.

Running from 2-3 May 2019, Made forSpace is a two-day intensive conferenceexamining the opportunities and challengesfor manufacturing within the global spacesector. With sessions focusing on keyadvanced manufacturing technologies, suchas: additive manufacturing, surfaceengineering and advanced coatings, roboticsand automation, and joining,

Made for Space brings togetherinternational experts from both the spaceand advanced manufacturing sectors whowill show how these new manufacturingtechnologies can help to address thechallenge of producing the next generation ofspace hardware. Manufacturing technologiesthat will be covered include additivemanufacturing, advanced joining technology,robotics and autonomous systems, surfaceengineering and high performance coatings.

Additive manufacturing: topics coveredinclude:l Case studies from the world's leading

space companiesl Development of high performance

materials for directed energy depositionand power bed additive manufacturingprocesses

l New approaches to ensure additivelymanufactured parts meet space require-ments

l Maximising part performance througheffective design for additive manufac-turing

Advanced joining technology: topicscovered include:l Development of precision laser joining

methodsl Novel joining techniques for dissimilar

materialsl Manufacturing large space components

using friction weldingl High performance structures for extreme

conditions

Robotics and autonomous systems:topics covered include:l Development of new approaches for

space manufacture, assembly and repairl How modular assembly methods can be

used to generate and maintain spaceassets

l New robotic systems which address theneeds of the space sector

l Deployment of robotics and autonomoussystems in space

l The future role of artificial intelligence,robotics and autonomous systems inspace

Surface engineering and high perform-ance coatings: topics covered include:l Finishing methods for complex additively

manufactured partsl Antimicrobial and smart coatings for

space applicationsl Laser and plasma finishing methods to

improve surface quality and partperformance

l New thermal coatings for spacecraft andsatellites using metamaterials

With keynote talks from NASA, ESA andthe UK Space Agency, Made for Space is atwo-day conference that will examine theopportunities and challenges for manufact-uring within the global space sector. Keynotespeakers and topics include: How can the UKspace sector lead the world? – GrahamPeters, chairman, UK Space; What does thefuture hold for space manufacturing in the

UK? – Tony Mears, technology roadmappingand harmonisation lead, UK Space Agency;Future manufacturing challenges inspace –Thomas Rohr, head of materials andprocesses, ESA; Advanced manufacturing –an extraordinary technology ecosystem –John Vickers, principal technologist, spacetechnology mission directorate, NASA; andHow will Industry 4.0 change the Spacesector and deliver novel value propo-sitions? – Maria Kalama, innovations lead,satellite communications, Innovate UK.

In addition, there will be technicalpresentations by experts from the likes ofAirbus Defence and Space, Autodesk, BAESystems, Cranfield University, ESA, Fair-Space/SSC, Fraunhofer IWS, Heriot-WattUniversity, Innovate UK, Keronite, LockheedMartin UK, Loughborough University, MTC,NASA, Nitropep, Oxford Space Systems,Satellite Applications Catapult, SensorCoating Systems, The University ofManchester, TWI, UKAEA, ULC Robotics,University of Southampton, VTT, Wallwork,3TRPD

David Wimpenny, chief technologist at theMTC, said: “This event brings togetherinternational experts from both the spaceand advanced manufacturing sectors whowill show how new manufacturingtechnologies can help to address thechallenge of producing the next generation ofspace hardware.”

l To find out more or to book your place, visit www.the-mtc.org/madeforspace

Technology opens up spacemanufacturing opportunities

www.spaceindustrybulletin.com 19

Future missions

INDIAN SPACE RESEARCH ORGANISATION MISSIONS IN DEVELOPMENT

GSLV-F10/CHANDRAYAAN-2 Scheduled launch date: 2019Chandrayaan-2, India's second mission to the Moon is a totally indigenous mission comprising of an Orbiter,Lander and Rover. After reaching the 100 km lunar orbit, the Lander housing the Rover will separate from theOrbiter. After a controlled descent, the Lander will soft land on the lunar surface at a specified site and deploya Rover. The instruments on the rover will observe the lunar surface and send back data.

NASA MISSIONS IN DEVELOPMENT

EUCLID Scheduled launch date: 2020Euclid, a planned mission to investigate the profound cosmic mysteries of dark matter and dark energy, haspassed its preliminary design review. This clears the way for construction to begin. Euclid is a European SpaceAgency mission with important contributions from NASA, including infrared detectors for one instrument andscience and data analysis.

WIDE FIELD INFRARED SURVEY TELESCOPE Scheduled launch date: 2020the Wide Field InfraRed Survey Telescope (WFIRST) is a NASA observatory designed to settle essentialquestions in the areas of dark energy, exoplanets, and infrared astrophysics. The telescope has a primary mirrorthat is 2.4 meters in diameter (7.9 feet), and is the same size as the Hubble Space Telescope's primary mirror.WFIRST will have two instruments, the Wide Field Instrument, and the Coronagraph Instrument.

ESA MISSIONS IN DEVELOPMENT

NEOSAT Scheduled launch date: 2019 Neosat is dedicated to developing, qualifying and validating next-generation satellite platforms for the coresatcom market. A crucial objective for Neosat is to reduce the cost of a satellite in orbit by 30%, comparedwith today’s designs, by the end of the decade. Existing and new technologies will be used in innovative wayswith economies of scale achieved through creating a common supply chain for the satellite prime contractors.

QUANTUM Scheduled launch date: 2019Eutelsat Quantum represents a shift from custom-designed, one-off payloads to a more generic approach,resulting in reduced cost and time through a modular and scalable answer to the payload specification, design,technology and manufacturing. It will also be capable of unprecedented in-orbit re-configurability in coverage,frequency and power, allowing complete mission rehaul, including orbital position.

SAT-AIS Scheduled launch date: 2019ESA will improve satellite-based ship identification and tracking in partnership with the European MaritimeSafety Agency and exactEarth to meet the requirements of users, particularly those of government agenciessuch as coastal administrations. The ship’s identity is recorded and decoded by the satellite then sent to groundstations for further processing and distribution.

BIOMASS Scheduled launch date: 2020The Earth Explorer Biomass mission addresses one of the most fundamental questions in our understandingof the land component in the Earth system: what is the status of our forests, as represented by the distributionof biomass and how is forest biomass changing?

SOLAR ORBITER Scheduled launch date: 2020ESA’s Solar Orbiter mission is conceived to perform a close-up study of our Sun and inner heliosphere - theuncharted innermost regions of our Solar System- to better understand, and even predict, the unruly behaviourof the star on which our lives depend. At its closest point, the spacecraft will be closer to the Sun than anyprevious spacecraft. It will provide unique data and imagery of the Sun.

ELECTRA Scheduled launch date: 2021Electra will support European satellite industry in developing, launching and validating in orbit a full electric-propulsion telecommunications satellite in the 3-tonne launch mass range. Electra can offer powerconsumption and communication capabilities equal to those offered by larger mid-size satellites while keepingthe launch mass low enough for small launcher vehicles.

METEOSAT THIRD GENERATION Scheduled launch date: 2021Meteosat Third Generation (MTG) Imaging and Sounding satellites. The space segment procurement willinclude four MTG-I imaging and two MTG-S sounding satellites.

20 www.spaceindustrybulletin.com

ESA Invitations to tender

AO9610 COPERNICUS SPACE COMPONENTS - ACQUISITION AND TT&C SERVICES FOR COPERNICUS 31/12/21

AO9101 EO SCIENCE FOR SOCIETY PERMANENTLY OPEN CALL FOR PROPOSALS EOEP-5 BLOCK 4 31/12/21

AO9090 INVESTING IN INDUSTRIAL INNOVATION - INCUBED ANNOUNCEMENT OF PARTNERSHIP OPPORTUNITY (APO) 31/12/21

AO9671 ARTES CC - ADVANCED TECHNOLOGY - WORKPLANS EMITS / WEBSITE 31/12/21

AO9427 NAVIGATION INNOVATION SUPPORT PROGRAMME ELEMENT 3 ANNOUNCEMENT OF OPPORTUNITY (AO) 28/12/21

AO8859 CALL FOR OUTLINE PROPOSALS UNDER THE HUNGARIAN INDUSTRY INCENTIVE SCHEME - EXPRO PLUS 01/12/21

AO8927 NAVISP ELEMENT 2 - OPEN CALL FOR PROPOSALS 31/12/20

AO5651 FRAME CONTRACT FOR MEDIUM SIZE INFRASTRUCTURE WORKS ON-ESTEC SITE, NOORDWIJK (NL) 31/12/20

AO9569 ARTES INTEGRATED APPLICATIONS PROMOTION (IAP) - 5GRONINGEN 30/12/20

AO9305 OPEN CALL FOR PROPOSAL FOR IAP- ESA BUSINESS APPLICATIONS 30/12/20

AO8872 ARTES INTEGRATED APPLICATIONS PROMOTION (IAP) KICKSTART ACTIVITIES 31/12/19

AO9729 POLISH INDUSTRY INCENTIVE SCHEME - ROADMAPS WORKPLAN 31/12/19

AO9128 ARTES SCYLIGHT ROLLING WORK PLAN 31/12/19

AO8893 ScyLight - Open Call for proposals 31/12/19

AO9038 CALL FOR PROPOSALS: EXPERT: POST-ISS HUMAN SPACEFLIGHT RESEARCH AND APPLICATIONS CAPABILITY IN LEO 31/12/19

AO9072 ARTES INTEGRATED APPLICATIONS - SECOND CREATED RFX IN ORDER TO HANDLE OVERLAPPING THEMATIC CALLS 18/12/19

AO8793 ARTES C&G - CALL FOR PROPOSALS 20/10/19

AO9765 TOOLSET FOR POST FLIGHT ANALYSIS OF ESA MISSIONS 22/05/19

AO9777 MINIATURIZED SENSOR PACKAGES AND DELIVERY SYSTEMS FOR IN-SITU EXPLORATION 16/05/19

AO9525 STUDY INTO FRACTIONATED GEOSYNCHRONOUS RADAR SYSTEMS FOR CONTINUOUS MONITORING - EXPRO+ 14/05/19

AO9709 E1X1-007 DESIGN CONCEPT AND REQUIREMENTS STUDY FOR THE HERACLES INTERFACE ELEMENT (PHASE 0) 14/05/19

AO9783 GENERATIVE ARTIFICIAL INTELLIGENCE FOR HIGH PERFORMING INVERSION MODELS - EXPRO + 13/05/19

AO9633 MOOC-CRYO EXPRO+ 10/05/19

AO9565 PROTOTYPE REMOTE INTERFACE UNIT (RIU) FOR SWE HOSTED PAYLOADS 10/05/19

AO9702 SSA P3-SWE-VIII: SWE SERVICE SYSTEM DESIGN 06/05/19

AO9581 GSTP - LOOSE - TECHNOLOGIES FOR THE MANAGEMENT OF LONG EO DATA TIME SERIES 03/05/19

AO9351 E-COMMERCE PLATFORM FOR MICRO-GEOSERVICES EXPRO+ 02/05/19

AO9791 FIFTH CALL FOR OUTLINE PROPOSALS UNDER THE PLAN FOR EUROPEAN COOPERATING STATES (PECS) IN LATVIA 01/05/19

AO9790 FIFTH CALL FOR OUTLINE PROPOSALS UNDER THE PLAN FOR EUROPEAN COOPERATING STATES (PECS) IN LITHUANIA 01/05/19

AO9658 SPICA TELESCOPE ASSEMBLY PHASE A (M5) 01/05/19

AO9811 PLATO - ANCILLARY ELECTRONIC UNIT (AEU) 30/04/19

AO9527 HIGH PERFORMANCE MEMS REFERENCE OSCILLATOR (PTRP) 30/04/19

REF DESCRIPTION END DATE

www.spaceindustrybulletin.com 21

ESA Invitations to tender

AO9739 VIRTUAL SPACE WEATHER MODELLING CENTRE (VSWMC) - PART III 30/04/19

AO9292 FEEDS WITH END FIRE RADIATION FOR SINGLE-REFLECTOR-BASED MULTIBEAM ANTENNAS (ARTES AT 5B.177) 30/04/19

AO9723 TIME TRANSFER USING LOW COST HIGH-GAIN ANTENNAS - EXPRO+ 30/04/19

AO9621 HIGH VOLTAGE ELECTRIC PROPULSION THRUSTER SIMULATOR (ARTES AT 4F.121) (RE-ISSUE 1-9278) 30/04/19

AO9566 H2020-ESA-038 GNSS EVOLUTIONS EXPERIMENTAL PAYLOADS AND SCIENCE ACTIVITIES CALL FOR IDEAS 30/04/19

AO9780 TOOL FOR GNSS SYSTEM FAILURE MODES INVESTIGATION - EXPRO+ 29/04/19

AO9600 FEASIBILITY STUDY OF A HYPER-VELOCITY EARTH RE-ENTRY TECHNOLOGY DEMONSTRATOR - EXPRO+ 29/04/19

AO9613 IMPROVEMENT OF SAMPLE CONTAINMENT/HANDLING FOR VOLATILE ANALYSIS - EXPRO+ 29/04/19

AO9667 ESTEC FACILITY MANAGEMENT SOFT SERVICES 29/04/19

AO9563 H2020-ESA-029 - STAGE 1 - G2G SATELLITE AND PAYLOAD TEST BED 29/04/19

AO9728 AUTHENTICATION OF GNSS SIGNALS BY RADIO SIGNAL FINGERPRINTING - EXPRO PLUS (RE-ISSUE) 29/04/19

AO9602 CARBON+ METHANE EXPRO+ 29/04/19

AO9625 GUIDELINES FOR THE SAFE USE OF LASER TECHNOLOGY (SCYLIGHT SL.004) EXPRO+ (RE-ISSUE OF ITT 1-9260) 29/04/19

AO9330 WIDEBAND ACOUSTIC FILTERS FOR PRE-AND POSTPROCESSORS (ARTES AT 5C.354) 29/04/19

AO9649 SENTINEL-3 AND CRYOSAT SAR/SARIN RADAR ALTIMETRY FOR COASTAL ZONE AND INLAND WATER [RACZIW] 26/04/19

AO9669 TANDEM OF ROVER AND ASSOCIATED WAIN FOR LUNAR EXTENDED ROAMING (TRAILER) - EXPRO PLUS 26/04/19

AO9283 SOLID REFLECTOR WITH METAL MESH AS THE REFLECTIVE SURFACE (ARTES AT 5B.183) 26/04/19

AO9776 EXPRO+ NAVISP ELEMENT 1 (NAVISP-EL1-011): RESILIENT, TRUSTWORTHY, UBIQUITOUS TIME TRANSFER REISSUE 25/04/19

AO9392 NANOSAT X-BAND TT&C TRANSPONDER EM 24/04/19

AO9735 SOFTWARE-DEFINED RADIO TT&C MODEM FOR RF-SCOE AND GROUND SEGMENTS 24/04/19

AO9796 EFFECTIVE USE OF GERMANIUM - EXPRO+ 24/04/19

AO9657 ENVISION: PHASE A & B1 SYSTEM STUDY (M5) 23/04/19

AO9656 THESEUS: PHASE A & B1 SYSTEM STUDY (M5) 23/04/19

AO9655 SPICA: PHASE A & B1 SYSTEM STUDY (M5) 23/04/19

AO9582 GNSS RECEIVER CHAIN TECHNOLOGY ENABLER AND INTEGRITY TECHNIQUES FOR THE RAILWAY ENVIRONMENT 23/04/19

AO9720 DELIVERY AND INSTALLATION OF MECHANICAL DATA ACQUISITION SYSTEM (MDH) - EXPRO PLUS 22/04/19

AO9431 INVESTIGATION OF ADDITIVE MANUFACTURING OF IMPROVED CERAMIC PACKAGES FOR DETECTORS - EXPRO PLUS 19/04/19

AO9706 SSA P3-SWE-V.2 - UTILISATION OF EISCAT 3D IN SSA SWE SERVICES 18/04/19

AO9760 PROPOSALS FOR TECHNOLOGY TRANSFER FEASIBILITY STUDIES AND TECHNOLOGY TRANSFER PROOF OF CONCEPTS 16/04/19

AO9630 EGS-CC INTEGRATION CONTRIBUTION 02/04/19

REF DESCRIPTION END DATE

Each month Space Industry Bulletin updates these pages with the latest ESA invitations to tender, taken from the emits pages of the ESAwebsite. You can visit the ESA website for the full list (http://emits.sso.esa.int/emits/owa/emits.main), or usual our simple ‘quick links’ facilityon the Space Industry Bulletin website at www.spaceindustrybulletin.com/tenders

22 www.spaceindustrybulletin.com

UK Space Agency spending data

SSGP BUDGET AND EXPENDITURE BREAKDOWN

London Economics has produced areport on the Space for SmarterGovernment Programme (SSGP), a UK

Space Agency-led and funded programmeestablished in 2014, which aims to drive theuptake and use of space products andservices across the public sector.

The present value (PV) of industrialeffects of SSGP is estimated at £3.0m,implying that each £1 of SSGP grantexpenditure generates an additional £0.78 ineconomic activity. This is equivalent to amultiplier of 1.78. However, this multipliershould be interpreted as a lower bound sinceit is does not include the actual and potentialbenefits to grantees and government users,respectively, that are also identified.

SSGP also appears to support a total of 29FTEs over four years, including 10 FTEs thatare estimated as having been supported bythe grants, and a further 19 in the supplychain. Industry participants in the SSGP thatwere consulted indicated that SSGP was theonly viable funding source given its flexibility,offer of full funding, and general support toconnect suppliers to end users ingovernment. Almost all industry consulteesindicated that their project would either nothave taken place or as quickly without SSGPfunding. Contract recipients reported anumber of key benefits, which fall into fourmain areas: commercial, network, reputation,

and knowledge. This suggests that thebenefits to industry of participating in SSGPextend significantly beyond the value ofcontracts that are received and reflect thenon-funding elements of the programme.

At this early stage, no SSGP project hasbeen adopted for national use by a publicsector end-user, although several SSGP

projects have been procured on more limitedscales. The consultations with public sectorand supplier stakeholders suggest a numberof reasons for this (often related to publicsector resource constraints), even if theyappear to agree on the general success andeffectiveness of the SSGP demonstrationsolutions.

SSGP grant benefits extendto other areas of business

2014/15 2015/16 2016/17 2017/18 2018/19 Total

Budget 700,000 1,500,000 1,500,000 1,560,500 1,416,205 5,260,500

Outturn 1,023,580 1,602,188 1,476,704 894,949 TBC 4,997,421

Expenditure

Grants 763,580 1,347,604 936,711 774,505 TBC 3,822,400

Grant % 75% 84% 63% 87% – 76%

Non-grant 260,000 254,584 539,993 120,444 TBC 1,175,021

Non-grant % 25% 16% 37% 13% – 24%

Total 1,023,580 1,602,188 1,476,704 894,949 TBC 4,997,421

CONTRACT VALUES DISTRIBUTED BY SSGP

Period Number of bids Successful bids (%) Total grant value Average grant size

2014/15 60 15 (25%) £ 763,580 £ 50,905

2015/16 58* 21 (36%) £ 1,347,604 £ 64,172

2016/17 8* 7 (87.5%) £ 936,711 £ 133,816

2017/18 28 8 (28.5%) £ 774,505 £ 96,813

Total 154* 51 (33%) £ 3,882,400 £ 74,949

* Missing values. Actual number of bids likely to be higher than this

SSGP INDUSTRIAL EFFECTS

www.spaceindustrybulletin.com 23

UK Space Agency spending data

MONTHLY SPENDING ANALYSISAs part of its transparency obligations, the UK Space Agencypublishes its spending report for each month. We strip out theemployee expenses, training costs, the costs of other professionalservices, costs of contractors, etc, to look at the grants and fundingawarded to private businesses and universities.

Having stripped out all of those additional sums, the remaining £1.25mrepresents the lowest monthly spend on grants for over 14 months,with the previous lowest being £2.6m in June 2018.

A new recipient on the funding list is CAB International – the Centrefor Agriculture and Bioscience. This not-for-profit inter-governmentaldevelopment and information organisation is focused primarily onagricultral and environmental issues in the developing world. Itengages in a variety of projects, focusing on commodity crops,invasive species, and scientific communication.

Reaction Engines (REL) continues to be a prime funding recipient. In2016 the UK Government committed £60m of funding via the UK

Space Agency and the ESA to support the development of thecompany’s SABRE engine. The grants helped signal the viability of theconcept and helped progress the technology to a stage where it wasattractive to outside investors. As a result, REL has been able to attracta further £49.5m in private capital, including £21m from BAE Systemsand £28.5m in equity.

While SABRE remains at a pre-revenue R&D phase, long term thecompany and its backers believe the engine has the potential to offersubstantial value in the aviation sector by improving the fuel efficiencyand contributing to a reduction in the sector’s environmental footprint.Rolls Royce has invested in SABRE to help unlock this potential.

Nottingham Scientific, having received £31,600 in November infunding, received the same amount in January to further develop itsGNSS technologies. Neptec UK was a new funding recipient, with theHarwell-based company focused on designing and buiding spacequalified LiDARs, metrology instruments, IR cameras and otherintelligent sensors for mission critical space applications.

DATE EXPENSE TYPE TYPE COMPANY AMOUNT

29/01/19 R & D Other Professional Services Grant Nottingham Scientific 31,600

28/01/19 R & D Current Grants to Private Sector Grant Vivid Economics 56,353

28/01/19 R & D Other Professional Services Grant NSSC Operations (National Space Centre) 1,128

28/01/19 R & D Other Goods/Services Grant NSSC Operations (National Space Centre) 1,641

23/01/19 R & D Other Professional Services Grant Winning Moves 15,550

23/01/19 R & D Current Grants to Private Sector Grant Dynamic Imaging Analytics 14,837

16/01/19 R & D Current Grants to Private Sector Grant The Association for Science and Discovery Centres 35,000

16/01/19 R & D Other Professional Services Grant Winning Moves 15,908

15/01/19 R & D Current Grants to Private Sector Grant Reaction Engines 360,000

15/01/19 R & D Current Grants to Private Sector Grant Reaction Engines 15,045

15/01/19 R & D Current Grants to Private Sector Grant Reaction Engines 126,911

07/01/19 R & D Current Grants to Private Sector Grant NSSC Operations (National Space Centre) 2,400

28/01/19 Capital Grants To Private Sector Vendor Neptec UK 78,331

28/01/19 R & D Current Grants to Private Sector Vendor DSTL 3,109

28/01/19 R & D Current Grants to Private Sector Vendor DSTL -27,899

28/01/19 R & D Current Grants to Private Sector Vendor DSTL 5,104

28/01/19 R & D Current Grants to Private Sector Vendor DSTL 56,274

28/01/19 R & D Current Grants to Private Sector Vendor DSTL 4,480

25/01/19 R & D Current Grants to Private Sector Vendor DSTL 434

25/01/19 R & D Current Grants to Private Sector Vendor CAB International 294,136

24/01/19 R & D Current Grants to Private Sector Vendor DSTL 217

24/01/19 R & D Current Grants to Private Sector Vendor DSTL 8,110

22/01/19 Capital Grants To Private Sector Vendor Surrey Satellite Technology 127,802

22/01/19 R & D Current Grants to Private Sector Vendor University of the West of England -3,000

22/01/19 R & D Current Grants to Private Sector Vendor University of the West of England 6,000

15/01/19 R & D Sponsorship Support WGA only UKRI - Science and Technology Facilities Council -41,295

15/01/19 R & D Sponsorship Support WGA only UKRI - Science and Technology Facilities Council 61,942

TOTAL 1,250,118

UK SPACE AGENCY GRANTS/INVESTMENT, NOVEMBER 2018

M T C | A N S T Y P A R K | C O V E N T R Y

W W W . T H E - M T C . O R G / M A D E F O R S P A C E

2 - 3 · 0 5 · 1 9

R E G I S T E R N O W

KEY TOPICS Additive manufacturing Automation and robotics Surface engineering and high

performance coatings Advanced joining technology

WHY ATTEND? Get an insight into the opportunities for

manufacturers in the space sector Hear from leading international experts from

both the space and manufacturing sectors Visit our all-day exhibition accompanied by

refreshments and networking Take a tour of the MTC’s state-of-the-art facilities

REGISTER NOW FOR OUR MADE FOR SPACE EVENT ON 2-3 MAY 2019 TO EXPLORE THE OPPORTUNITIES IN THE SPACE INDUSTRYMade for Space is a two-day intensive conference examining the opportunities and challenges for manufacturing within the global space sector. Made for Space brings together international experts from both the space and advanced manufacturing sectors who will show how new manufacturing technologies can help to address the challenge of producing the next generation of space hardware.

KEYNOTE SPEAKERS Graham Peters, Chair of UK Space Graham Turnock, CEO of the UKSA Thomas Rohr, Head of Materials & Processes ESA John Vickers, Principal Technologist, Space

Technology Mission Directorate NASA

HOW TO BOOKDelegate Pass: from £120 +VAT

Register today… www.the-mtc.org/madeforspace

For more information contact:[email protected]