Satellite Industry Overview U.S. Department of Commerce

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Satellite Industry OverviewU.S. Department of
Commerce Thursday, December 16th 2004
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Value of Satellite Systems

• Value of satellite systems grows with widely
  distributed networks and mobility of users
• Satellite systems perform most effectively when
• interconnecting wide distributed networks,
• providing broadcasting services over very wide
  areas such as a country, region, or entire
  hemisphere
• providing connectivity for the last mile in
  cases where fiber networks are simply not
  available for interactive services.
• providing mobile wideband and narrow band
  communications
• satellites are best and most reliable form of
  communications in the case of natural disasters
  or terrorist attacks - fiber networks or even
  terrestrial wireless can be disrupted by
  tsunamis, earthquakes, etc..

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Satellite-Fiber Comparison
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Typical Fixed Satellite Network

• Applications
• Credit Card Validation
• ATM/Pay at the Pump
• Inventory Control
• Store Monitoring
• Electronic Pricing
• Training Videos
• In-Store Audio
• Broadband Internet Access
• Distance Learning

Network HUB
Apartment Buildings
Internet
Gas Stations
Corporate Data Center/HQ
Corporate Offices
Residential
Branch Offices
Some large scale corporate networks have as many
as 10,000 nodes
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Orbital Options

• A Geosynchronous satellite (GEO) completes one
  revolution around the world every 23 hrs and 56
  minutes in order to maintain continuous
  positioning above the earths sub-satellite point
  on the equator.
• A medium earth orbit satellite (MEO) requires a
  constellation of 10 to 18 satellites in order to
  maintain constant coverage of the earth.
• A low earth orbit satellite (LEO) offers reduced
  signal loss since these satellites are 20 to 40
  times closer to the earth in their orbits thus
  allowing for smaller user terminals/antennas.

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Geostationary Orbit (GEO)

• Characteristics of Geostationary (GEO) Orbit
  Systems
• User terminals do not have to track the satellite
• Only a few satellites can provide global coverage
• Maximum life-time (15 years or more)
• Above Van Allen Belt Radiation
• Often the lowest cost system and simplest in
  terms of tracking and high speed switching
• Challenges of Geostationary (GEO) Orbit
• Transmission latency or delay of 250 millisecond
  to complete up/down link
• Satellite antennas must be of larger aperture
  size to concentrate power and to create narrower
  beams for frequency reuse
• Poor look angle elevations at higher latitudes

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Geostationary Orbit Today
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Low Earth Orbit (LEO)

• Characteristics of Low-Earth Orbit (LEO) Systems
  
• - Low latency or transmission delay
•  - Higher look angle (especially in
  high-latitude regions)
•  - Less path loss or beam spreading
• - Easier to achieve high levels of frequency
  re-use
• - Easier to operate to low-power/low-gain
  ground antennas
• Challenges of Low-Earth Orbit (LEO) Systems
• - Larger number of satellites (50 to 70
  satellites). Thus higher launch costs to deploy,
  build, and operate.
• - Harder to deploy, track and operate. There
  is higher TTCM costs even with cross links.
• - Shorter in-orbit lifetime due to orbital
  degradation

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Medium Earth Orbit (MEO)

• Characteristics of Medium-Earth Orbit (MEO)
  Systems
• Less latency and delay than GEO (but greater than
  LEO)
• Improved look angle to ground receivers in higher
  latitudes
• Fewer satellites to deploy and operate and
  cheaper TTCM systems than LEO (but more
  expensive than with GEO)
• Longer in-orbit lifetime than LEO systems (but
  less than GEO)
• Challenges of Medium-Earth Orbit (MEO) Systems
• More satellites to deploy than GEO (10 to 18 vs.
  3 to 4)
• Ground antennas are generally more expensive and
  complex because of the need to track satellites.
  Or, one must use lower-gain, quasi-omni antennas.
  
• Increased exposure to Van Allen Belt radiation

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Components

• Bus
• Power Subsystem
• Telemetry and Command Subsystem
• Attitude and Control Subsystem
• Propulsion Subsystem
• Payload
• Communications Subsystem
• Transponders

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Transponders

• The transponder is the brains of the satellite
  - provides the connection between the satellites
  receive and transmit antennas.
• Satellites can have 12 to 96 transponders plus
  spares, depending on the size of the satellite.
• A transponder bandwidth can frequently be 36 MHz,
  54 MHz, or 72 MHz or it can be even wider.
• A transponders function is to
• Receive the signal, (Signal is one trillion times
  weaker then when transmitted)
• Filter out noise,
• Shift the frequency to a down link frequency (to
  avoid interference w/uplink)
• Amplify for retransmission to ground

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Frequency Efficiency

• The vital resource in satellite communications is
  spectrum.
• As the demand for satellite services has grown,
  the solution has been
• To space satellites closer together,
• Allocate new spectrum in higher bands,
• Make satellite transmissions more efficient so
  that more bits/Hz can be transmitted, and
• To find ways to re-use allocated spectrum such as
  through geographic separation into separated
  cells or beams or through polarization separation
• Today the satellites systems transmit more
  efficiently than ever before but interference is
  now a bigger problem - there is a basic trade
  off
• The higher the frequency the more spectrum that
  is available
• But, the higher the frequency the more problems
  with interference from other users terrestrial,
  unlicensed, etc.

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Satellite Frequencies

• There are specific frequency ranges used by
  commercial satellites.
• L-band (Mobile Satellite Services)
• 1.0 2.0 GHz
• S-band (MSS, DARS XM, Sirius)
• 1.55 3.9 GHz
• C-band (FSS, VSAT)
• 3.7 6.2 GHz
• X-Band (Military/Satellite Imagery)
• 8.0 12.0 GHz
• Ku-band (FSS, DBS, VSAT)
• 11.714.5 GHz
• Ka-band (FSS broadband and inter-satellite
  links)
• 17.7 - 21.2GHz and 27.5 31 GHz

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Satellite Power Systems

• Main source of power is solar cell panels - new
  solar cells are increasingly efficient
• The solar cell system is backed up by battery
  system that provides energy during solar eclipses
  and other periods of outages.
• Typical power levels of 2 to 5 KWs for Fixed
  Satellite Systems and 10 to 12 KWs for Mobile and
  Broadcast Satellite Systems.
• Batteries
• latest battery technology is represented by
  Lithium Ion systems that can provide a greater
  power density for longer periods of time and
  survive a greater depth of discharge

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Satellite Technologies of the Future

• Satellites in general are becoming more capable,
  with higher power and larger aperture antennas to
  promote frequency re-use and creating highly
  capable super- computers-in-the-sky
• With electronically formed beams, the beam
  patterns can be re-formed on command to respond
  to needs at different times of day, or of
  changing requirements that emerge in response to
  market demand
• Future Technologies include
• Advanced Phased Array Antennas
• Dynamic Beam Management
• Advanced Antenna Systems
• More Efficient Power Systems
• Turbo-coding
• Advanced Modems
• New materials for Light weight antennas
  (Inflatable Antennas)

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Satellite Services Applications

• Voice/Video/Data Communications
• Rural Telephony
• News Gathering/Distribution
• Internet Trunking
• Corporate VSAT Networks
• Tele-Medicine
• Distance-Learning
• Mobile Telephony
• Videoconferencing
• Business Television
• Broadcast and Cable Relay
• VOIP Multi-media over IP

• GPS/Navigation
• Position Location
• Timing
• Search and Rescue
• Mapping
• Fleet Management
• Security Database Access
• Emergency Services

• Remote Sensing
• Pipeline Monitoring
• Infrastructure Planning
• Forest Fire Prevention
• Urban Planning
• Flood and Storm watches
• Air Pollution Management
• Geo-spatial Services

• Direct-To-Consumer
• Broadband IP
• DTH/DBS Television
• Digital Audio Radio
• Interactive Entertainment Games
• Video Data to handhelds

Infrastructure / Support Services
Launch Vehicles Ground Equipment Insurance
Manufacturing
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World Satellite Industry Revenues
91.0
86.1
78.6
73.7
60.4
55.0
49.1
38.0
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World Satellite Services Revenue
55.9
49.1
46.5
39.2
29.7
24.4
21.1
15.8
FSSVSAT services, remote sensing, and
transponder leasing MSSMobile telephone and
mobile data DBS/DARSDTH TV, DARS, and Broadband
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Fixed Satellite Services

• FSS Industry
• Geosynchronous Spacecraft
• 22,000 miles in orbit
• C, Ku and Ka Frequencies
• Terrestrial Infrastructures
• Teleports
• TTC Centers
• Service Platforms
• Fiber Interconnects
• Diverse market-base
• Media Distribution
• Telecom Infrastructure
• Enterprise Networks
• Government Networks Apps
• 250 operational commercial GEO satellites in
  use today

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Mobile Satellite Industry

• Mobile Satellite Services (MSS) refer to services
  to mobile user terminals
• Use a mix of orbit types
• Geosynchronous (GEO)
• Non-geosynchronous (LEO and MEO)
• System sizes range from (1) GEO satellite to (66)
  LEO Satellites
• Some use Inter-Satellite Links (ISLs)
• Use a mix of frequencies
• Mostly L-Band / Some S-Band, UHF/VHF
• Feeder links and some services use C, Ka, and
  Ku-Band
• Applications
• Aeronautical
• Maritime
• Land

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Ground Antennas

• The size of the antenna depends on the satellite
  frequency band used, the data rate, and whether
  the service is bidirectional or receive only
• Higher data rates require larger antennas and/or
  higher power
• Higher transmit capability (EIRP) of the
  satellite allows the antenna size to be reduced
• The use of spot beams instead of global beams
  improves VSAT link performance
• Receive-only antennas can be substantially smaller

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Ground Equipment Trends

• Overall systems costs have decreased because of
  the explosion of low cost user terminals that can
  now receive video via hand-held units.
• Omni directional antennas
• Smaller, lighter, cheaper
• More powerful, faster
• Pocket, notebook, rugged
• Application specific terminals, embedded modems
• Phones
• Voice, Asynchronous Data and Packet Data
• Smaller (antenna and battery in particular)

Minimal Set-Up Time, Robust, Portable, Easy To Use
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World Ground Equipment Revenues
Includes Gateways, NOCs, Satellite News
Gathering equipment, flyaways, VSATs, DBS Dishes,
DARS equipment, satellite phone booths, satellite
phones
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Launch Industry Overview

• U.S. Launch Service Providers
• Lockheed Martin (Atlas)
• Boeing Launch Services (Delta)
• Orbital (Pegasus)
• SpaceX (Falcon)
• International Launch Vehicle Market
• Boeing Ukraine - Sea Launch (Zenit)
• Lockheed Russian - ILS (Atlas/Proton)
• European- Arianespace (Ariane)
• India (PSLV)
• Russian Energia - (Proton)
• China Great Wall - (LongMarch)
• Japan Mitsubishi - (H2A)

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Global Manufacturing Environment
Big Five Manufacturers
Other Players
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Global Supply vs. Demand GEO Communications
Satellites and Launches
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U.S. Manufacturing Market Share
63
64
63
52
40
36
60
47
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• Satellites Are Critical Infrastructure

Early 2003 GAO Report re Commercial Satellite
Infrastructure Commercial Satellite Security
Should Be More Fully Addressed Early 2003
Homeland Security Act Satellite Communications
Infrastructure Is Critical National
Infrastructure Late 2003 GAO Report re DoDs
Procurement Of Commercial SATCOM Strategic
Approach Need For DoDs Procurement Of Commercial
Satcom Early 2004 NSTAC Satellite Task Force
Report to President Commercial Satellite
Industry Is Critical To Our National, Economic,
and Homeland Security
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Critical To The Economy
Eat Out
PumpGas
WatchTV
Shop
Stay at Hotels
Buy Service Automobile
Transact Financially
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Critical to Flow of Information

• Newsgathering First choicefor live coverage,
  providinghigh-bandwidth video links from remote
  locations to capture breaking news
• Program Delivery National broadcasts from four
  major television networks and more than 180 cable
  channels are relayed to over 10,000 local cable
  systems via satellite

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Critical to Homeland Security

• Federal Government utilize satellites for backup
  communications and diversified access
  alternatives to their federal facilities,
  especially at COOP/COG sites
• Over 80 of the Federal agencies rely on
  satellites for communications, such as -
• Federal Emergency Management Agency (FEMA) uses
  mobile satellite on wheels trucks, fixed voice
  terminals, and mobile satellite phones for
  emergencies
• Coast Guard uses satellites for ship-to-ship and
  ship-to-shore communications
• Customs and Border Protection uses satellites for
  border monitoring and remote access voice
  communications
• Satellites support network reconstitution,
  improving infrastructure resiliency with media
  diversity
• USG used PanAmSat capacity over New York to
  during September 11 events
• Satellites support economic continuity
• CIP industries, such as finance/banking, oil,
  gas, communications, and retail rely on satellites

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Emergency Preparedness Users
Bureau of Indian Affairs Centers for Disease
Control Environmental Protection Agency Federal
Aviation Administration Federal Bureau of
Investigation Fish and Wildlife Service Food and
Drug Administration General Services
Administration Internal Revenue Service National
Institutes of Health National Park
Service National Weather Service Nuclear
Regulatory Commission Transportation Security
Agency Social Security Administration White
House
U.S. Senate U.S. Navy U.S. Army U.S. Air
Force U.S. Coast Guard U.S. Marine Corps U.S.
Forest Service U.S. Customs Service U.S.
Geological Survey Department of
Commerce Department of Agriculture Department of
Justice Department of State Department of
Homeland Security Department of the
Treasury Department of Veterans Affairs Agency
for International Development
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Satellite Task Force Findings

• The STF Report includes 22 findings on
  vulnerabilities of the commercial SATCOM
  infrastructure and implications of commercial
  satellite use for NS/EP
• Key task force findings include
• Satellite services are important for NS/EP
  telecommunications because of their ubiquity and
  independence from other communications
  infrastructures
• Civil agencies have a shortage of in-house
  technical expertise that can integrate SATCOM
  into the agencies communications architectures
• Agency procurement processes do not allow the
  Government to compete effectively for commercial
  SATCOM capacity
• All components of commercial satellite systems
  are susceptible to both intentional and
  unintentional threats
• The current regulatory structure evaluating
  foreign ownership provides a framework that
  adequately protects NS/EP interests

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NSTAC STF Recommendations

• The NSTAC made three recommendations to the
  President
• 1. Direct the Assistant to the President for
  National Security Affairs, the Assistant to the
  President for Homeland Security, and the
  Director, Office of Science and Technology
  Policy, to develop a national policy with respect
  to the provisioning and management of commercial
  SATCOM services integral to NS/EP communications,
  recognizing the vital and unique capabilities
  commercial satellites provide for global military
  operations, diplomatic missions, and homeland
  security contingency support
• 2. Fund the Department of Homeland Security to
  implement a commercial SATCOM NS/EP improvement
  program within the National Communications System
  to procure and manage the non-Department of
  Defense satellite communications satellite
  facilities and services necessary to increase the
  robustness of Government communications
• 3. Appoint several members to represent service
  providers and associations from all sectors of
  the commercial satellite industry to the NSTAC to
  increase satellite industry involvement in NS/EP

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Critical To Rural America
Satellites Are The Only Viable Option For Rural
America
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Critical to the Future of Aviation

• Currently providing secure and reliable voice and
  data communications
• In-flight data and voice communications for Crew,
  Air Marshals and passengers
• Establishing specialized secure communications
  for airplanes, airports, seaports, and border
  control.
• Enable Search and Rescue
• Next Generation Satellite Services
• Global Air Traffic Management
• Black Box Alternatives
• Advanced passenger and safety services

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Navigation GPS

• A military system that is now central to the
  lives of millions of civil and commercial users
• Public safety dispatch improves response time
• Search and Rescue locates emergency calls
• Air Traffic Control guides planes in all
  weather
• Telecommunications primary timing source,
• E-911 enabler
• Transportation tracks trains, trucks, vital
  shipments
• Underpins US Warfighting
• Precision Munitions
• Cruise Missiles
• Unmanned Aerial Vehicles

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Commercial Remote Sensing

• Provides scientific, industrial, civil, military
  and individual users with high resolution images
  for
• Defense intelligence
• Homeland security asset protection
• Insurance risk management
• Transportation infrastructure planning
• Natural resource assessment
• Agriculture
• Disaster relief
• Insurance and risk management
• Oil gas exploration
• Mapping

QuickBird .61 m color image
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Remote Sensing Industry

• Three U.S. Commercial Satellite Imagery Companies

Name DigitalGlobe ORBIMAGE Space Imaging
Location Longmont, CO Dulles, VA Thornton, CO
Year Launched 2001 2003 1999
Satellite Name QuickBird OrbView-3 IKONOS
Resolution (meters) 0.61 m black/white 1m black/white 1 m black/white
Resolution (meters) _at_ 2.44 m color 4 m color 4 m color
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Commercial Remote Sensing Space Policy

• CRSSP Signed by President, April 2003
• Goal advance and protect U.S. national security
  by maintaining the nations leadership in remote
  sensing space activities, and by sustaining and
  enhancing the U.S. remote sensing industry.
• Rely to the maximum practical extent on U.S.
  commercial remote sensing space capabilities
• Focus USG remote sensing space systems on meeting
  needs that can not be effectively, affordably,
  and reliably satisfied by commercial providers
• Develop a long-term, sustainable relationship
  between the USG and the U.S. commercial remote
  sensing space industry
• Provide a timely and responsive regulatory
  environment for licensing the operations of
  commercial remote sensing space systems
• Enable U.S. industry to compete successfully as a
  provider of remote sensing space capabilities for
  foreign governments and foreign commercial users,
  while ensuring appropriate measures are
  implemented to protect national security and
  foreign policy
• NGA leading implementation of policy on national
  security side
• Promoting long-term partnerships
• ClearView Guaranteed, long term purchase
  commitments
• NextView Commitment to advancing next
  generation systems

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Critical to Weather Forecasting Search and Rescue

• NOAAs operational environmental satellite system
  is composed of
• Geostationary Operational Environmental
  Satellites (GOES) short-range warning and
  narrowcasting
• Polar Orbiting Environmental Satellites (POES)
  longer term forecasting
• Both are required for providing complete global
  weather monitoring
• The satellites carry search and rescue
  instruments, and have helped save the lives of
  about 10,000 people to date.

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Critical To National Security

• 80 of satellite communications used during
  Operation Iraqi Freedom were provided by the
  private sector
• To meet its near-to-midterm war-fighting
  requirements, DOD must continue to use commercial
  SATCOM

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Increasing Satcom Requirement
388
250
10
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Source Maj. Gen. Charles Croom Briefing,
Federal Telecom Conference, 2002
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Benefits Of Partnership
DoD Benefits
Industry Benefits

• Responsive Procurement
• Long-Term Planning
• Lower Operational Risk
• Coordinated Protection of Private Sector
  Infrastructure
• Timely Response to Jamming and Orbital Debris
  Incidents
• Shaping Warfighter SATCOM Tools for specific
  missions
• Bandwidth portability
• Network-Centric Operations

• Centralized/Bulk Procurement
• Long-Term Contracts
• Lower Business Risk
• Coordinated Protection of Private Sector
  Infrastructure
• Timely Response to Jamming and Orbital Debris
  Incidents
• Information Sharing
• Improved Industry Planning

Mutual Benefits for DoD and Industry
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Emerging Services/Applications
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Source 2003 Media Business Annual Report
Derived from SG Cowan, January 2003
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Satellite Broadband

• Broadband Connectivity to Homes/Offices
• Forward link 2-3 Mbps
• Return link 128 - 512 Kbps
• Connectivity regardless of location/geography
• Mobile Broadband Services Comms on the Pause
• In-motion Transmit and Receive on-the-go
• Multi-Mb inbound to vehicle, up to 500kbs out
• Valuable for Network Centric Operations
• Air, Sea and Land-based vehicle applications

• Broadband Connectivity to Aircraft
• Forward link 10 Mbps
• Return link 128 - 512 Kbps
• Near-global connectivity
• E-mail/Internet access
• FSS Satellite capacity

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Satellite Business Factors

• Satellite Services
• Lower Transponder Rates
• Higher Insurance Costs
• Industry Consolidation
• Export Controls
• DBS/DARS
• Access To Adequate Spectrum
• Competition With Terrestrial Giants
• Satellite Manufacturing/Launch
• Overcapacity
• Export Controls
• Ground Equipment
• Interference with Terrestrial/Unlicensed Devices
• Foreign Licensing/Market Access

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Regulatory Issues

• Satellites Are Inherently International
• Spectrum Fees
• International Telecommunications Union (ITU)
• Interference
• Interference Noise Temperature
• Unlicensed Devices
• Extended C-Band
• Radar Detectors
• Ultra Wide-Band
• Licensing
• Earth Station
• Orbital Debris
• Critical Infrastructure/Homeland Security
• Emergency Alert System (EAS)
• CALEA

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Problems With U.S. Export Controls

• Lack of Transparency and Predictability
• Increase costs and delays
• Widely Available Technologies
• Deny high-tech industries in the U.S. a level
  playing field
• Lack of Tiered System
• Allies are examined under the same scrutiny as
  rogue states
• Extra-Territorial Reach On Components
• Foreign manufacturers wary of U.S. components

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Satellite Manufacturing Orders

• Worldwide Orders For (U.S / Non-U.S)
• Commercial GEO Satellites
• 1995 18 (11 / 7)
• 1996 31 (21 / 10)
• 1997 25 (19 / 6)
• 1998 22 (16 / 6)
• 1999 13 (8 / 5)
• 2000 35 (15 / 20)
• 2001 28 (24 / 4)
• 2002 6 (4 cancelled) (1 / 5)

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Trade/Market Access

• Eliminate Excessive Regulatory Fees
• Regulatory or control fees for satellite services
  should be proportional to the regulation of the
  service i.e. on a cost reimbursable basis
• Provide Transparent, Non-Discriminatory Licensing
  Procedures
• Where individual authorizations or registrations
  are required, they should only serve to validate
  the licenses already obtained by the satellite
  operator from its licensing administration.
• Eliminate Local Entity/Local Presence
  Requirements
• Satellite operators should not be required to
  establish a local commercial and technical
  presence in each country in which they seek to
  provide services.
• Provide National Treatment For Foreign
  Operators/Eliminate Monopolies
• Regulators should remove any foreign ownership
  restrictions (or preference for domestic
  operators) that affect the competitive provision
  of satellite services.
• Eliminate Burdensome Frequency Coordination
  Requirements
• Satellite operators should not be required to
  obtain a license or authorization to use the
  radio-electric spectrum associated with their
  space stations on a country-by-country basis.

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Summary

• Satellite Industry Issues are Inherently Global
• International Ramifications for Domestic Actions
• Satellites Are Critical Infrastructure
• National, Economic, Homeland Security
• Spectrum is the Life-Blood Of The Satellite
  Industry
• Satellite Spectrum Must Be Protected From
  Interference, Excessive Fees, Regulations
• Government Must Improve Partnership/Relationship
  with Satellite Industry
• Acquisition, Protection, Management of Commercial
  SATCOM