Satcom Policy in Europe

SatCom Policy in Europe

Report 32 May 2011

Veronica La Regina

Short title: ESPI Report 32 ISSN: 2076-6688 Published in May 2011 Price: €11

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ESPI Report 32 2 May 2011 SatCom Policy in Europe

Table of Contents

Executive Summary 4

1. Introduction 11

2. The Setting 13 2.1 SatCom as a Technological Tool and its Legal Context 13 2.1.1 SatCom and International Space Law 13 2.1.2 SatCom and International Telecommunication Law 15 2.1.3 SatCom and European Telecommunication Law 18 2.2 SatCom in the European Policies 23 2.2.1 SatCom as Element of Space Policy 24 2.2.2 SatCom as an Element of the Lisbon Strategy 26 2.2.3 SatCom as an Element of International Relations 31

3. The Policy Priorities 34 3.1 SatCom Industrial Policy 34 3.1.1 SatCom Industrial Policy: EU 35 3.1.2 SatCom Industrial Policy: ESA and National Space Agencies 41 3.1.3 SatCom Industrial Policy: Achievements 49 3.2 The Case of Broadband: Development and Deployment in Europe 53 3.2.1 Definition of Broadband and Technologies 53 3.2.2 Broadband Technologies Adopted in the EU 56 3.2.3 Broadband Development: Evaluation Criteria 60

4. Conclusions 64

5. Policy Recommendations 65

List of Acronyms 68

Acknowledgements 71

About the Author 71

ESPI Report 32 3 May 2011

Executive Summary

SatCom, as satellite communications, are manufacturers, launchers, operators, down- space-based technologies providing commu- stream service providers and equipment nication (point-to-point) and broadcasting manufacturers, has been lost as a direct re- (point-to-multi-points) services. SatCom ser- sult of failing to foster a relevant policy vices includes fixed satellite services such as framework around key SatCom applications. TV & radio broadcasting, and mobile satellite The main attention of European space policy services such as for crafts in the air or for focuses on the delivery of the two flagship ships at sea. programmes, Galileo and GMES, losing, at the same time, the necessary interaction with SatCom are one of the most successful appli- SatCom. SatCom shall play a crucial role in cations of space technologies. The related Galileo-derived applications and services and industrial sector generated a worldwide in maximizing the value of GMES data. The commercial market volume of around 84 absence of efforts to develop SatCom means, Billion US $ in the year 2009. The majority of in a certain way, reducing the autonomy of revenues were generated by direct-to-home Europe. SatCom provides the largest number broadcasting services with a quota of 83%. of launches thus enhancing the performance Then, 5 Billion US $ were originated by satel- of the European launcher – Arianne-; it per- lite manufacturers and launch service provid- mits Europe to fill the orbital positions as- ers, while actual transponder lease generated signed by ITU that would otherwise be lost, it 11.6 Billion US $. The sector presents an sustains European know-how in digital com- average of 10% compound growth rate for munication in terms of patents and interna- which SatCom will reach 93 Billion US $ by tional relationships from the scientific, mili- 2019. The European market share is in terms tary and commercial points of view. of 48% for manufacturing activities, 40% for transponder leasing, 15% of terminal equip- Concerning the second cluster there are sev- ment manufacturing and 10% of Value- eral reasons why SatCom should be included Added-Services. The sector involve a work- as an element for the Lisbon Strategy and force of 45.000 employees belong all the the updated strategic plan through Europe SatCom industrial segments in Europe. In 2020. The principal ones concern the innova- addition, the European SatCom sector is tion benefits from advanced digital communi- more patent intensive than the other regions, cation systems and technologies and the such as USA and Japan. This leadership is highly qualified job-skills required. These recognised by a relevant volume of export points fit into policies such as Innovation sales to customers in the Rest of the World, Policy, New Skills & Jobs and Youth on the in terms of € 1.2 billion. Move. Moreover, Europe 2020 requires smart, sustainable and inclusive growth. Sat- Considering this economic magnitude, the Com can contribute to delivering the Digital study presents SatCom as an enabling ele- Agenda by filling the digital divide of remote ment of different European policy initiatives locations, mostly populated by low-income that can be grouped into four clusters, people. In this sense, SatCom can also be namely, space policy, Lisbon strategy and its seen as an element of the policy initiative as policy for growth, industrial policy, and inter- Fighting Poverty. In addition, SatCom can national relations. Among these ones two provide services used in the management of policy priorities have been identified such as energy power plants and oil and gas net- the Digital Agenda for the development and works providing connectivity to offshore plat- deployment of broadband in Europe and the forms, and applications for management of industrial policy. prevention and precaution of potential disas- The first cluster is analysed through the ters. All these examples show how SatCom seven Space Councils from 2004 to 2010. can be a contributor to Resource Efficiency & The conclusion of this analysis is that by not Energy. Among these policy initiatives, the developing a specific policy line for SatCom, study focuses attention on the issues to de- its key-role in a coherent European space livery of the Digital Agenda in Europe. In policy has been lost. This means that a huge 2010 the EC issued a communication on the potential for dynamic growth and competi- Digital Agenda1 with the ambition of providing tiveness of the whole space sector, including

ESPI Report 32 4 May 2011 SatCom Policy in Europe

broadband for all European citizens with the considered in order to satisfy the system following specific targets: requirements like the backhauling as operations transport data from the node point to • Basic broadband for all by 2013: basic the destination and go back, the last mile or broadband coverage for 100% of EU citi- last kilometre as the final leg of delivering zens; connectivity from a communications provider • Fast broadband by 2020: broadband to a user, the capacity to serve a number of coverage at 30 Mbps or more for 100% people at a time, and the last the coverage of of EU citizens; the infrastructure over the land-country. A qualitative evaluation in terms of high, me- • Ultra-fast broadband by 2020: 50% of dium and low amount of necessary resources European households should have sub- and policy actions is given to these variables. scriptions above 100Mbps. The evaluation is independent from the ques- It is one of the priorities for the growth of tion of who will support the required invest- Europe. These three targets basically require ment, such as government, commercial op- two types of technological action: extending erator or end-users. It is evaluated in terms the network and upgrading the network in of the action required to extend or upgrade terms of higher capacity. The basic broad- the network for the types of technology in- band target mostly needs of the first action; volved. At the current stage, it is relevant to the other two targets require the upgrading note that SatCom with the European satellite of the network assuring higher capacity for capacity already in orbit can easily provide faster speediness and interactions among the the basic broadband where no alternative users. There are different technologies to be network exists and where terrestrial networks chosen and implemented, each of which has are not economically affordable. pros and cons in terms of technical achieve- Here, two matrixes are proposed, one for the ments and socio-economic resources. A ma- basic broadband by 2013 and another one for trix is proposed to compare the magnitude of the advanced broadband as fast and ultra- required resources per each technology in fast broadband by 2020. In particular, the order to implement the two technological two tables can help to take the decision re- actions. Each matrix identifies the three lated with the present digital divide implying groups of technologies, as fixed communica- lack of infrastructures due to geographical tion technologies including the wired ones, and demographic reasons where terrestrial terrestrial wireless technologies and SatCom. network is not available and it shall not be Then the dimension of the investment in economically sustainable. terms of necessary economic resources is

Technological Terrestrial Variable Fixed SatCom Action Wireless

Investment High Medium Low

Backhaul High High Low Extending Network for basic broadband Network sys- Last - Km High Medium Low by 2013 tem requirements Number of Peo- High Medium Low ple served

Land Coverage High High Low

It is evident the prompt and efficient role of broadband in Europe in time by 2013 as the SatCom in comparison with the other terres- Digital Agenda has established. trial technologies for delivering the basic

1 EC, Communication from the Commission to the Euro- pean Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A Digital Agenda for Europe, Brussels, 19.05.2010, COM (2010) 245.

ESPI Report 32 5 May 2011

Technological Terrestrial Variable Fixed SatCom Action Wireless

Investment High Medium High

Upgrading Net- Backhaul High High Low work - Higher Capacity - Last - Km High Medium Low for fast and ultra- Network system fast broadband by requirements Number of 2020 High Medium Low People served

Land Coverage High Medium Low

As shown above, the main challenge of Sat- multi-spot beams, data compression algo- Com is in the upgrading action because its rithms and ground equipments in order to capacity is fixed from the beginning of its more efficiently use the spectrum and to in- development. The development of a SatCom crease the data per second capacity in order system does not have any exit-strategy; the to reduce the delay in transmissions. This is initial choice to start a SatCom mission has to to help address the problem of connectivity be thoroughly evaluated to avoid wasting with mobile users in that SatCom terminal resources and effort. This is one of the rea- devices have tended to be bulky, giving only sonable motivations to have a specific Euro- a signal for connectivity but without user- pean space policy line for SatCom. In addi- friendly applications in comparison with the tion, the choice for broadband has to be sus- current smart-phones. For this purpose, ESA tainable for Europe, where the dimensions of has established the Integrated Applications the metropolitan areas with already terres- Programme (IAP) that is user driven. In addi- trial infrastructures for broadband are chang- tion to these issues, in 2010 the EC estab- ing year by year due to population growth. If lished an integrated industrial policy for the advanced broadband is delivered only by Europe2. The challenge is to establish an terrestrial technologies even a continuous industrial policy with an integrated perspec- extension of the network has to be deployed. tive in order to reduce inefficiencies and to increase synergies between different indus- The third cluster, concerning the industrial trial sectors, thus minimising costs and the policy, where three actors, the EU, ESA and burden for Europeans. The Communication Member States, are involved. The EU and pointed out that industry is still the founda- Member States use two fields of competence: tion of the European economy and empha- telecommunications and space. The EU sised the fact that it makes a significant con- mainly uses the Framework Programme (FP) tribution to the external competitiveness of structure, currently FP7, and focuses on R&D the EU. SatCom is explicitly mentioned as a for SatCom. The overall FP7 is managed ac- key space sector from the economic and cording to areas, including ICT and Space. If technological point of view and I can also SatCom is an element of the space sector, it enhance the space sector of space aiming at must be used for international cooperation, competitiveness and sustainability. It is de- such as new emerging markets and notably fined as crucial for delivering the Digital in Africa. If SatCom is an element of the ICT Agenda closing the broadband gap for strategy it has the task of implementing in- Europe. In line with this target, even an ade- ternational cooperation with aim of seeking quate spectrum policy should be preserved strategic partnerships to tackle some of the for SatCom to have communications free of future grand challenges in ICT R&D such as interferences. The implementation of this the Future Internet. Till now, SatCom has industrial policy must follow three impera- been an element of projects funded by FP7 tives: to be societal, because of benefits for ICT and not by FP7 Space. This has been all Europeans; to be economic, in terms of unexpected because of 30% of projects, space as a generator of knowledge that funded by previous FP6, were from budget allocated for FP6 Aerospace. The roles of ESA 2 and the national space programmes have EC, Communication from the Commission to the Euro- pean Parliament, the Council, the European Economic and been mainly directed at developing the space Social Committee and the Committee of the Regions, An component of the system. The main techno- Integrated Industrial Policy for the Globalization Era Put- logical challenges have been in terms of ting Competitiveness and Sustainability at Centre Stage - {SEC(2010) 1272} {SEC(2010) 1276}.

ESPI Report 32 6 May 2011 SatCom Policy in Europe

drives innovation; and to be strategic, as per Art. 4 para 3 of the TFEU3, with a sui space is a policy tool that contributes to the generis shared competence, and/or an ele- role of Europe as a global actor. ment of the trans-European network under Art. 4 para 2 TFEU, with a shared compe- The last cluster includes international rela- tence. From the regulatory point of view, the tions, because SatCom can be an element of EU Telecom-Package regulates European the Common Foreign Security Policy (CFSP), electronic communications. The two most the European External Action Service (EEAS), controversial aspects of the recently updated the European Security and Defence Policy EU electronic communications policy for Sat- (ESDP) and Space Policy as discussed above. Com satellite services are the European spec- Its contribution is in terms of communication trum allocation process, and its technology services provisions for defence purposes, and service neutrality approach to spectrum trans-national borders communication and access and usages. The first was designed to disaster management issues. In addition, implement the common market, and the sec- underlining the strategic role of SatCom for ond aims to make spectrum bands available the Digital Agenda, SatCom can be the right to all users irrespective of the technology enabler to deliver millennium goals also to used and the services provided. The concepts European neighbours, such as Africa and the of technology neutrality, service neutrality, Middle East in a very cost-effective way be- and flexible spectrum management can affect cause the services are provided with the each technology in a different way, even if same investment that is required for EU the overall principle is intended to foster Broadband. In addition, the EU should be competition and efficient allocation of re- autonomous, not a stand-alone actor, but sources. In the case of SatCom, the neutral with others depending on it. For this purpose allocation and assignment of frequencies is SatCom enables this strategic role and it can unfair as satellites are more suited to specific be a “traded-good” in relations with other frequency bands. Since these bands are fi- countries, such as Russia, USA, and Asia. In nite, with every frequency allocation lost to addition, the EU has the duty to enhance its terrestrial services, a progressively less suit- own growth and competitiveness also in view able spectrum is available for future satellite of the fact that foreign satellite operators can deployment. Moreover, the coexistence of also serve European consumers; thus an terrestrial, especially mobile terrestrial com- opportune preventative action is required. munications and SatCom is very difficult in The study also considers the issues related some frequency bands. Service neutrality is with space law and international telecommu- seen by device manufacturers and operators nication law because, by definition, SatCom is as a barrier to investing in the development an asset located in outer space that provides of new technologies if spectrum availability communication over a large coverage area for them is uncertain. The negative aspects of from a transmitting point to another such both service and technology neutrality are point, thus easily crossing national borders. smaller economies of scale for device manu- The main principle of international space law facturers, and loss of international harmoni- is the free use of outer space without any zation, making interworking and roaming State sovereignty and carrying out activities difficult if not impossible. These factors are for the benefit of all countries. Consequently also seen as contributing to higher end user there should be no military or aggressive use prices. Other considerations concern the op- of outer space. SatCom is receiving particular portunity to create the best value for the attention with regard to making satellite spectrum in an environment free of adminis- communications available on a worldwide and trative costs and barriers. These issues are non-discriminatory basis. The importance of not addressed here. In this regard, SatCom SatCom as an element of international tele- must satisfy the international filings and co- communication law is addressed by the role ordination through the ITU. It is an additional of ITU that has the duty to assure an equita- obligation –burden- on the development of ble, economic, efficient and free-of- the sector that operators with terrestrial interferences use of the spectrum. Thus, the technologies do not have. regulation of orbital position, frequency allo- All these issues lead to a set of policy rec- cation and coordination with terrestrial tech- ommendations to the EU institutional actors, nologies is done at international level with ESA and Member States. continuous adaptation to emerging realities. The current issue concerns the exploitation of the Ka-Band for SatCom to meet the needs of the mass-market as required for the implementation of the Digital Agenda for Europe. In the European context, SatCom can be considered as an element of space policy as 3 Treaty on the Functioning of the European Union

ESPI Report 32 7 May 2011

Action by Policy Recommendations EU Council • Establish a Space Policy which uses SatCom as a cross-sectional technology satisfying the needs of different policies (e.g. defence, energy, disaster management, maritime, air transport, etc) in order to reduce the inefficiency and to maximize the benefit that can be shared in the implementation of the EU 2020 policies • Establish a Space Policy with a coherent vision of International relations, such as with Africa, to provide services supporting the delivery of the Mil- lennium Development Goals, share technological achievements with Japan and USA and coordinate market position with neighbour Russia • Address the dual-use of SatCom including by sharing participation between the EU and national defence SatCom programmes • Address the model of Private-Public-Partnership (PPP) in order to save costs and effort in achieving the same goals and creating opportunities for tax revenue EU Commission • Establish a monitoring platform to understand the conflicts and complemen- tarities between terrestrial and SatCom technologies in terms of economic, societal and strategic outcomes; • Establish a mutual learning platform in order to implement SatCom as a cross-sectional technology satisfying the needs of different fields, e.g. defence, energy, disaster management, maritime, air transport, etc • Coordinate the vision of FP7 ICT and FP7 Space and the next FP8 in order to gain economies of scale and of scope of all SatCom systems • Evaluate as a positive discrimination the vertical model of SatCom industry mainly between satellite operators and service providers and not just between SatCom manufactures and service providers in order to spread profit along the entire supply chain • Establish a common indicator at EU level to sense actual current and future needs of broadband services and assess the capacity of SatCom to respond to EU Digital Agenda on a level playing field with other technologies EU Parliament • Revisit the principle of technology and services neutrality in a way which takes into consideration the particularity of SatCom technologies in the field of ICT • Revisit the principle of efficient use and equitable access to the spectrum for SatCom considering its advantages in reaching remote areas with low demographic density • Establish the right of e-citizenship with the concept of the technological environment guaranteeing full interactivity between citizens and government (public administrations) ESA • Enhance the “integrated industrial policy” approach for EU Competitiveness not only for the EU but also in terms of better coordination between the ESA, EU and national initiatives; • Establish coordination measures between EU FP7 programme and ESA (ARTES 20) Integrated Applications • Enhance the concept of Integrated Applications for exploiting user needs in the field of SatCom • Coordinate with EC and Member States a SatCom system providing advanced value-added services to achieve convergence needs • Enhance R&D efforts for a winning technology of Ka-band SatCom in terms of satellite payloads and terminal devices Member States • Evaluate a position, harmonized in European sense, towards CEPT and ITU for the orbital positions and an environment free of interference • Propose a platform in order to implement coordinated national space initiatives as much as possible with ESA programmes also with an integrated vision using FP7, for instance national initiatives such as contributory elements of ESA programmes in line with the strategic mission of FP7 • Create, or make more consistent use of, fiscal and financial mechanisms (e.g. Structural funds) for encouraging the use of SatCom for citizens located in disadvantaged areas in order to achieve the EU Digital Agenda objectives • Support the implementation of PPP in order to coordinate private investment and public expenditure

ESPI Report 32 8 May 2011 SatCom Policy in Europe

The initiative to implement these messages might affect other actors thus requiring inte- could be taken by any one actor although this grated coordination of the measures.

Action by Interaction with ESA Interaction with Member States EU Coun- • Establish a Space Policy which uses • Address the dual-use of SatCom in- cil SatCom as a cross-sectional technol- cluding by sharing participation be- ogy satisfying the needs of different tween the EU and national defence policies (e.g. defence, energy, disas- SatCom programmes ter management, maritime, air • Address the model of Private-Public- transport, etc) in order to reduce the Partnership (PPP) in order to save inefficiency and to maximize the costs and effort in achieving the benefit that can be shared in the im- same goals and creating opportuni- plementation of the EU 2020 policies ties for tax revenue • Establish a Space Policy with a co- • Establish a Space Policy with a coherent vision of International rela- herent vision of International relations, such as with Africa, to provide tions, such as with Africa, to provide services supporting the delivery of services supporting the delivery of the Millennium Development Goals, the Millennium Development Goals, share technological achievements share technological achievements with Japan and USA and coordinate with Japan and USA and coordinate market position with neighbour Rus- market position with neighbour Rus- sia sia EU Com- • Enhance the “integrated industrial • Establish a monitoring platform to mission policy” approach for EU Competitive- understand the conflicts and com- ness not only for the EU but also in plementarities between terrestrial terms of better coordination between and SatCom technologies in terms of the ESA, EU and national initiatives; economic, societal and strategic out- • Establish coordination measures becomes; tween EU FP7 programme and ESA • Establish a mutual learning platform (ARTES 20) Integrated Applications in order to implement SatCom as a • Enhance the concept of Integrated cross-sectional technology satisfying Applications for exploiting user needs the needs of different fields, e.g. de- in the field of SatCom fence, energy, disaster management, • Coordinate with EC and Member maritime, air transport, etc States a SatCom system providing • Coordinate the vision of FP7 ICT and advanced value-added services to FP7 Space and the next FP8 in order achieve convergence needs to gain economies of scale and of • Enhance R&D efforts for a winning scope of all SatCom systems technology of Ka-band SatCom in • Coordinate with Member States a terms of satellite payloads and ter- SatCom system providing advanced minal devices value-added services to achieve convergence needs • Evaluate as a positive discrimination the vertical model of SatCom industry mainly between satellite operators and service providers and not just between SatCom manufactures and service providers in order to spread profit along the entire supply chain • Establish a common indicator at EU level to sense actual current and future needs of broadband services and assess the capacity of SatCom to respond to EU Digital Agenda on a level playing field with other technologies

ESPI Report 32 9 May 2011

Action by Interaction with ESA Interaction with Member States EU Par- • Establish the right of e-citizenship • Revisit the principle of technology liament through the concept of the techno- and services neutrality in a way logical environment guaranteeing the which takes into consideration the full interactivity between citizens and particularity of SatCom technologies government (public administrations). in the field of ICT ESA should provide the most feasible • Revisit the principle of efficient use technology for this purpose, and equitable access to the spectrum for SatCom considering its advantages in reaching remote areas with low demographic density • Establish the right of e-citizenship with the concept of the technological environment guaranteeing full interactivity between citizens and government (public administrations)

ESPI Report 32 10 May 2011 SatCom Policy in Europe

1. Introduction

During the last decade, the field of communi- e-government, i.e. digital interaction between cation has seen many changes in terms of citizens and public institutions. Users/citizens, user needs and related technologies. The located in remote locations where terrestrial entire phenomenon is named convergence infrastructures are unaffordable to provide and it can be classified into four categories: digital communication, cannot easily interact convergence of services, convergence of with government with respect to e- transmission lines, convergence of terminals government services (requests for tran- and convergence of providers. The driver of scripts, certifications, enrolment procedures, this phenomenon is user mobility and the tax payment system, e-justice, e-wealth, e- desire to know increasingly about where the learning and so on). This development cre- user is, where other users are and what is ates an exclusion of certain parts of society available in the vicinity. This situation implies and consequently creates inefficiency and a continuous “local awareness” of people who barriers to the inclusive growth of Europe. travel and move very often. The condition of In order to fill this gap in a strategic way, the mobility implies, on its side, having a com- EC has adopted a policy initiative, Europe fortable and convenient technology in terms 2020, establishing three imperatives for the of fast connectivity, deployment and hand- concept of European growth: smart, sustain- usage. Thus great efforts have been made in able and inclusive. The ambition is to include the development of broadband and large- every European citizen in the growth of capacity info-communications network tech- Europe and this must be achieved with the nology and the improvement of mobile com- minimum level of inefficiency and with no munications technology resulting in the ex- harmful inflationary impact. This target is plosive growth of the Internet in terms of becoming increasingly problematic due to the “infrastructure” and the number of users. continuing demand side effects of the 2008- Accordingly, prompt action to formulate and 2009 financial crisis on the market confidence implement policies that can deal with these of consumers. This issue has been addressed realities is an urgent matter in order to in- in another EU policy initiative, the European crease the growth and the competitiveness of Economic Recovery Plan, which is an anti- EU. cyclical measure to offset the financial crunch SatCom, as satellite communications, can by providing a demand stimulus through four provide communication (point-to-point) and initiatives including High Speed – Internet for broadcasting (point-to-multi-points) services. Everyone, for which purposes SatCom is po- The sector plays a significant role in TV tentially a highly contributive element. Sat- broadcasting due to its ability to transmit Com can also be appreciated as providing a content from a single point to many users, cost-effective solution to the implementation localized in a huge area, in a very cost- of the EU Digital Agenda with the ambition of effective way. This has been the pot of gold making every European digital. for TV broadcasting services for 30 years that The social inclusion dimension is also en- has enabled the enhancement of the market hanced by other EU policy initiatives that are power of satellite operators in economic and part of the strategic plan of Europe 2020, financial terms. The economic and social im- such as New Skills & Jobs, Fighting Poverty portance of this sector has induced many and Youth on the Move. For these purposes, governments to reduce State regulation and SatCom can play a significant role providing intervention and to leave the floor to market connectivity infrastructures and services as competition forces. Nowadays, with the well as requiring a high level of qualified job- greater convergence between the two fields skills and relevant job-mobility for employees mentioned above, SatCom is at a relative throughout European countries. SatCom in- disadvantage for the mass market when dustrial capacity is not uniformly distributed compared with traditional communication among European countries; some Member that receives higher policy attention. This has States have a developed space industry and created a gap in attention to some relevant others do not. Thus a degree of transfer of elements of user rights in the sense of the knowledge and expertise is required. More- exercise of citizenship. This issue is going to over, in emerging European space States be increasingly important with the advent of

ESPI Report 32 11 May 2011

there is a clear trend towards the establish- for a European Data Relay Satellite that could ment of new companies belonging to the improve the data delivery system to the main holding groups. For instance, the estab- ground of the Sentinels, which are the EU lishment of corporate entities of EADS, Fin- space components of GMES. While SatCom is meccanica, Thales is common in the new part of this link, any specific ad hoc policy for Eastern European countries, above all when SatCom is not easy to find in the ESP. More- they became ESA Member States acquiring over, this linkage in itself is insufficient to the right of juste retour on investments made complete the strategic vision of the ESP be- for ESA programmes. cause the absence of efforts to develop Sat- Com means, in a certain way, reducing the Continuing with the political target of Euro- autonomy of Europe. SatCom provides the pean growth, SatCom can also be an element largest number of launches thus enhancing of two other essential attributes - smart and the performance of the European launcher – sustainable - mainly through the policy initia- Arianne-; it permits Europe to fill the orbital tives of Innovation Policy and Resource Effi- positions achieved after the extensive proc- ciency & Energy. SatCom can also contribute ess of coordination and notification to ITU to the aim for a better life in providing near- that would otherwise be lost, it sustains real time communication and alert messaging European know-how in digital communication systems for air and maritime safety, military in terms of patents and international relation- communications, disaster management pro- ships from the scientific, military and com- cedures and monitoring energy infrastruc- mercial points of view. All these achieve- tures with their high degree of criticality. In ments of European industrial policy should addition, SatCom is a front-runner technology take the opportunity of delivering the EU in terms of performance and it can inter-play Digital Agenda. actions between the public and private actors to enhance the benefits of the investments. In light of these considerations, this study provides a contextual setting, in terms of All these issues indicate the magnitude of the international law, including space law and potential contribution of SatCom to European telecommunication law, and European tele- growth as a means of advanced digital com- communication law, for analyzing the main munications. In addition, as an asset located issues emerging from the European Telecom in outer space it falls within the common Package. Then, the report focuses on two policy field of European Space Policy (ESP), policy priorities: industrial policy for SatCom, which has been addressed through seven and broadband development and deployment space councils from 2004 to 2010. In this for delivering the Digital Agenda. These policy context, a paradox exists because it does not priorities are seen as timely opportunities for have any specific policy line. The main atten- enhancing the sector in a more competitive tion of ESP focuses on the delivery of the two way. The analysis of these two fields shows flagship programmes, Galileo and GMES, the main critical issues to be solved. This will losing, at the same time, the necessary inter- lead to conclusions and policy recommenda- action with SatCom. SatCom will play a key tions, addressed to specific actors – the EU role in Galileo-derived applications and ser- Council, EC, EU Parliament, ESA and Member vices and in maximizing the value of GMES States – for individual or interactive consid- data. There is an ESA programme (ARTES 7) eration and implementation.

ESPI Report 32 12 May 2011 SatCom Policy in Europe

2. The Setting

vices. This approach is the most focused one5 in the world in dealing with the convergence 2.1 SatCom as a Technologi- issue. cal Tool and its Legal Con- SatCom comes from SATellite COMmunication and it refers to the field of communications text provided via satellites, based in Outer Space. SatCom acts as a relay station in space The deployment of global satellite systems transmitting messages from one part of the raises technical and regulatory, as well as world to another. In this study report, it is economic and political issues, the full dimen- assumed that a SatCom system consists of a sions of which can only be addressed through space component (satellite) and ground in- a systematic and comprehensive vision en- frastructures (e. g. control centre, network compassing technological, industrial, market centre, end user devices). Thus, three seg- and regulatory dimensions. SatCom is the ments can be considered: outgrowth of developments in two main areas - space technology and communications • Space asset: satellite working in outer technology. Thus, this field is involved in the space; current phenomenon of convergence4 of • Ground and Network: control centre, the communication needs and related technolo- type of network required per type of ap- gies. The borders between telephone, inter- plication (e. g. simplex transmissions, net, television broadcast and mobile phone point-to-point/duplex transmission, services are becoming blurred, even irrele- point-to-multipoint transmission, mobile vant. Convergence and the demand for new antenna, star network and mesh network applications are associated with being “band- etc); width hungry”, which implies new frameworks of spectrum uses, technological chal- • Value Added - Services (VAS): terminal lenges and business models. SatCom is equipments and several applications (e. deeply involved in this development. Thus g. broadcasting transmissions, maritime there are several different new trends in services, IP transport, news gathering, terms of satellites with multi-spot beam an- telephony, corporate networks, back- tennas working in the Ka-band and the re- hauling etc). duced size of terminals for communication- Applicable law and policy principles therefore on-the-move (COTM) and communication-on- relate to areas such as: space international the-pause (COTP) with integrated applica- communication; principles concerning human tions (e. g. navigation, timing, positioning, rights and freedom of information; legality of geo-reference information, data and video transmitted or broadcast programmes and transfers). The issue of convergence involves content with regards to copyright and also the borders between communication neighbouring rights; right of privacy, defama- (communication as one-to-one) and broad- tion, regulated marketplaces for systems and casting (communication as one – to – many) services, governance models for policy provi- with the adoption of IP multicast technology sions, etc. that transmits the same data by designating multiple destinations thus facilitating the delivery of large-volume data such as broad- 2.1.1 SatCom and International Space Law cast-type voice and video. In light of this consideration, this study will consider SatCom Space law is a body of international legal in its broadest sense without a strict division norms that has been developed since the between communication and broadcasting. beginning of the 1960’s primarily under the This choice follows the approach of the EU auspice of the United Nations General As- with its unified regulatory framework of elec- sembly and its Committee on the Peaceful tronic communications networks and ser-

5 T. Shinohara – Y. Okano, Worldwide progress in the convergence of telecommunications, information technol- 4 Jenkins, H. 2006. Convergence Culture: Where Old and ogy and broadcasting: the tasks facing Japan, NRI Papers New Media Collide, New York University Press. N. 41, 2002.

ESPI Report 32 13 May 2011

Uses of Outer Space6. Today, there is a cor- space activities whether they are carried out pus of five international treaties7 of space law by the States themselves, by international that constitutes a framework8 for the interna- organizations or by non-governmental enti- tional regulation of all space activities and ties. This implies that no outer space activity that is therefore valid also for SatCom. The can be conducted without the consent of the formulation of legislative provisions for space liable government. This principle has also has been approached intellectually in a fash- been incorporated into national space laws ion very different from traditional notions of mainly for the regulation of private sector international law. The basic approach, as space activity such as private companies expressed in the Preamble of Art. 1 of the operating satellites in orbits and providing Outer Space Treaty, is the common interest satellite services. It is important to underline of mankind in outer space. This principle is that private actors are not directly relevant explicitly and implicitly brought to the fore in inside international community. a number of provisions such as that the ex- There is also another international principle of ploration and use of outer space shall be car- space law that has relevance for SatCom; it ried out for the benefit of all countries. The is the non-military use of outer space. Mili- international law of outer space is also ex- tary SatCom is one of the most common pressed in the general principle that interna- space applications and there has been a huge tional law, including the Charter of the United debate concerning the non-military use of Nations, applies to space activities. This prin- space. A part of juridical doctrine interprets ciple is complemented by a number of provi- this principle in a strict and absolute way sions that are particular to space law: the concluding with the prohibition of any military principle of free use of outer space by all status in space activities. This view is no States, without discrimination which should longer current and the more accepted sense be seen in conjunction with the principle that of “non-military” is that it means no aggres- outer space is not subject to national appro- sive behaviour in space activities. Even so, priation in any form; particular stress is also there are some doubts as to whether a dis- laid on the principle of cooperation, mutual tinction should be made between active and assistance and mutuality of interests as ap- passive behaviour in the face of aggressive plicable to all space activities. conduct - active conduct being in response to The principle of State sovereignty and equal- an aggression, passive conduct being “pre- ity of States is complemented by the notion ventive” conduct in response to potential that States bear the international liability for further aggression. While this issue is again on the table, there is nonetheless a kind of customary law that accepts and permits mili- 6 Following various basic resolutions (1972 (XVI) and 1802 tary SatCom applications in the context of the (XVII)), the General Assembly, in 1963, adopted a “Decla- peaceful use of space for the benefit of all ration of Legal Principles Governing the Activities of States in the Exploration and Use of Outer Space”. mankind. 7 The Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, includ- The subject of SatCom has been specifically ing the Moon and Other Celestial Bodies (the "Outer mentioned in a number of resolu- Space Treaty"), adopted by the General Assembly in its tions9adopted by the General Assembly. All resolution 2222 (XXI), opened for signature on 27 January stress the principle of international coopera- 1967, entered into force on 10 October 1967; The Agree- tion, particularly with regard to making satel- ment on the Rescue of Astronauts, the Return of Astro- lite communications available on a worldwide nauts and the Return of Objects Launched into Outer Space (the "Rescue Agreement"), adopted by the General and non-discriminatory basis. Satellite broad- Assembly in its resolution 2345 (XXII), opened for signa- casting has attracted particular attention. ture on 22 April 1968, entered into force on 3 December Following the work of the Working Group on 1968; The Convention on International Liability for Damage Direct Broadcast Satellites set up in 1969, Caused by Space Objects (the "Liability Convention"), the 25th General Assembly unanimously adopted by the General Assembly in its resolution 2777 (XXVI), opened for signature on 29 March 1972, entered adopted a resolution (2733 (XXV)) on this into force on 1 September 1972; The Convention on Reg- subject-matter. Apart from recognizing the istration of Objects Launched into Outer Space (the "Reg- potential benefits of satellite-borne television istration Convention"), adopted by the General Assembly particularly for developing countries and the in its resolution 3235 (XXIX), opened for signature on 14 importance of large-scale international coop- January 1975, entered into force on 15 September 1976; The Agreement Governing the Activities of States on the eration, the Assembly recommends “that the Moon and Other Celestial Bodies (the "Moon Agreement"), Member States, regional and international adopted by the General Assembly in its resolution 34/68, opened for signature on 18 December 1979, entered into force on 11 July 1984. 9 Inter alia see: UN, Resolution adopted by the General 8 Most of these principles were thereafter incorporated in assembly n. 1721 (XVI) International co-operation in the the Outer Space Treaty of 1967, which has been comple- peaceful uses of outer space, 1085th plenary meeting, 20 mented by special instruments on particular subjects December 1961; Resolution n. 2776 (XXVI) International (rescue of astronauts, liability, etc.). The principles are co-operation in the peaceful uses of outer space, 1998th embodied in the Declaration and the Treaty. plenary meeting, 29 November 1971.

ESPI Report 32 14 May 2011 SatCom Policy in Europe

organizations, including broadcasting associa- telecommunication law. At the international tions, should promote and encourage interna- level a significant problem posed by the tional cooperation on regional and other lev- transmission or broadcast of programmes via els in order, inter alia, to allow all participat- satellites lies with the need to strike a bal- ing States to share in the establishment and ance between two legitimate and sometimes operation of regional satellite broadcasting contradictory considerations: on the one services and/or in programme planning and hand the desire and need to increase the free production”. It is obvious that in new, con- flow and wide dissemination of information stantly evolving fields such as space law, and of educational and cultural materials and, there would be a difference of opinion as on the other, the desire to protect the holders regards the interpretation of the principles of rights covered by the various international adopted, particularly since these principles conventions. In these respects, there is a represent a new dimension in international need to reach globally acceptable interna- law. There are also other principles of inter- tional arrangements taking into account the national space law that are relevant for these interests of all countries, particularly the purposes, such as: needs of developing countries. • The identification of the launching State10; 2.1.2 SatCom and International Telecommunica- • International State liability for outer tion Law space activities. Telecommunications poses extra-national These matters are common to all space- issues. Thus, coordination among different based activities, thus they are not investi- States is required. There exists an Interna- gated in this context. tional Organization under the UN, the Inter- While this is general agreement on the appli- national Telecommunication Union (ITU), with cability of the United Nations Charter, the the task of assuring an operational environ- Outer Space Treaty and relevant provisions of ment for communication that is free of inter- the International Telecommunication Conven- ference so orbital location and radio spectrum tion and the Radio Regulation to satellite are regulated by two types of actions: communication and broadcasting, opinions • Allocations: this is the process by which differ as to whether and to what extent the the ITU identifies particular ranges of ra- content of satellite broadcasts should be dio frequencies as appropriate for par- regulated by further legal rules. Some coun- ticular services. Allocations are decided tries favour new sets of general principles or in the Table of Frequency Allocations set even detailed rules while others consider that out in the Radio Regulations as an inter- no rules be established and still others would national treaty. Once adopted as part of prefer regional and international cooperative the Radio Regulations, the frequency al- arrangements. The difficulties are obvious in locations are binding upon ITU members; view of the differences in the roles, status and structures of broadcasting in the world • Allotments: this solves the problem of and in the interpretation given to concepts interference. It is a bilateral agreement such as freedom of speech, censorship and between two interested States. control of media. At the basis of international This framework is established by ITU Regula- telecommunication law is the principle of tion. The aim of the Radio Regulations is to State sovereignty expressed in terms of the ensure rational, equitable, efficient and eco- fully recognized sovereign right for each nomical use of the spectrum/orbit resources State to regulate its own telecommunications, by all radio services, terrestrial and space including SatCom. However, international services. In so doing, the sovereign right of cooperation is necessary to establish tele- each country to regulate its telecommunica- communication links between countries and tions must be preserved. As a starting point, for the use of radio waves, the behaviour of the applicable legal instruments are the In- which varies with frequency and which are ternational Telecommunication Convention propagated without regard for man-made and the Radio Regulations, which both have frontiers. Thus, preventing harmful interfer- treaty force. These instruments differ from ence to the delivery of costly communica- most other international treaties in the way tions, the international allocation of frequen- they are prepared and adopted by the Pleni- cies, government licensing of all kinds of potentiary and Administrative Conferences, in radio stations and international notification their contexts and in the manner in which and registration of frequency use are the they are applied and administrated. Conse- main activities regulated by international quently, the ITU performs a number of func- tions related to management of the RF spec- 10 Ex art. 1 Convention on International Liability for Dam- trum. It establishes technical standards to age Caused by Space Objects, 1971.

ESPI Report 32 15 May 2011

govern the power, modulation techniques, The WRCs are officially part of the ITU. They and other properties of radio emissions; it provide a unique global forum in which gov- allocates frequencies to particular services; it ernments and regulators, service providers makes allotments of frequencies among na- and manufacturers, and other spectrum users tions; and it defines conditions under which can share knowledge and improve settle- users of spectrum have the right to operate ments. free of interference. Thus the ITU is organ- The issue of political versus technical inter- ised under three sections11: Radio communi- ests becomes more crucial with the growth of cation (ITU-R); Telecommunication Stan- regional activities for coordination and the dardization (ITU–T) and Telecommunication economic value of the spectrum. In addition, Development (ITU-D). industry has international – rather than ITU-R focuses on terrestrial and space-based merely national – representation, affecting wireless services, and develops operational the technical study process. In turn, the WRC procedures. The world for ITU purposes has process’ impacts on industry are significant: been divided into three regions: Region 1 resulting in delays, uncertainties and political comprises Europe and Africa, Region 2 is the compromises can affect viability. At national Americas and Region 3 is Oceania and Asia. level each country has an internal regulator Each area has proper frequency allocation organization in charge of national positions plans12 with planned sections following a for the WRC as well as for national frequency command & control model, where frequencies management, authorization and licensing. are allocated by type of uses and each State Each country has the right to regulate tele- has its proper spectrum quota; and un- communications in its territory. A member planned sections having a common model country cannot change the service alloca- where the rule of “first-come, first served” tions, but it can apply them to particular ser- applies. Within the ITU-R overall mission, one vices or operators. SatCom can result in in- of its main strategic objectives is to maintain terferences with the ground antenna and and enhance the relevance of the sector in other terrestrial technologies. Thus, to have a the efficient management of the radio fre- free-from-interferences operational status, quency spectrum – and orbital locations, spectrum and orbit15 and coordination with which are increasingly in demand from a terrestrial technologies, as picture 1 shows, large number of services and/or Administra- have to be determined16. tions. In addition, it provides a forum for The table 1 shows three mechanisms to regu- technical studies, which serve as a basis for late and manage spectrum, which have been the regulatory decisions made at World Radio proposed in specialized literature. Communications Conferences (WRC)13. In order to harmonize the position of States in a coherent way, the pre-workload to each WRC is managed through regional organizations14.

11 Each works through world conferences or assembles and meetings, where members negotiate agreements that serve as the basis for the operation of global telecommunication services. 12 As regards spectrum regulation, it is necessary to take account of the fact that the spectrum is a natural resource that is infinite by definition but not all the spectrum has the same peculiarities in terms of related wavelength, thus it has limitations in terms of sharing and related uses. 13 Changes to the Radio Regulations can only be made by the WRC, meeting every three years. Each WRC defines the agenda for the next WRC. The WRC agenda contains the regulatory matters which will be • African Telecommunication Union (ATU) for African under discussion. The WRCs are prepared in the spe- Countries and cific subject Working Groups at national, regional and • League of Arab States (LAS) for Arabic Bloc. world levels during the three year interval. 15 The geostationary position is also a scarce resource 14 Regional organizations are responsible for preparation since the number of orbital positions is limited and it is of the regional common positions about each item to be necessary to have a minimum separation between discussed in WRC as well as standardization activities, adjacent satellites to avoid interference. etc, they include: 16 Before bringing into service a new assignment, the • Inter-American Telecommunication Commission user has to follow the procedures included in the RR. (CITEL) for American countries; There are two main mechanisms to share the or- • European Conference of Postal and Telecommuni- bit/spectrum: cations Administrations (CEPT) for European coun- • National allotment in a Plan for accessing BSS and tries; FSS planned bands, and • Asia-Pacific Tele-community (APT) for Asian and • Coordination to access unplanned band ex Art. 9 Pacific countries; ITU RR.

ESPI Report 32 16 May 2011 SatCom Policy in Europe

Picture 1: Cases of Interferences concerning SatCom (Source: ITU, 2010)

Mechanism PROs & CONs ITU Regime Note Command & PROs: It clearly determines It is adopted per the It is considered to give Control how the spectrum must be planned Frequencies equitable access to used in terms of technologies Bands. spectrum usages to all and services. It solves all the countries (developed interference issues. and developing). CONs: It is a restrictive use as it does not give incentives for efficient or further uses. Commons PROs: It is a flexible mecha- It is adopted for the It is suitable for new Model nism and easily adaptable to unplanned frequencies technologies permitting new demand in terms of tech- bands but requires more efficient use of nologies and services. mandatory coordina- the spectrum but it CONs: It is difficult to imple- tion and uses the prin- creates some inequity ment with several actors and ciple of first come first for developing coun- technologies. served. tries with fewer capabilities. Market PROs: It is a flexible mecha- --- There are at least four Mechanism nism and easily adaptable to types of approaches: new demand in terms of tech- ‐ First come & first nologies and services. It is served; able to create a value for the ‐ Lottery spectrum. ‐ Beauty Contest CONs: It can generate rents ‐ Auctions. seekers and consequently abuse of dominant position. It creates lack of concern for services that may not be economically sustainable.

Table 1: Spectrum Regulatory Model and ITU Approaches

This ITU practice can generate some ineffi- Com systems can easily cover more than one cient uses of the spectrum, particularly for national area. Thus ITU could promote a countries that are not ready to use advanced mechanism of “share technologies” between technologies, because of the way that Sat- developed and developing countries with

ESPI Report 32 17 May 2011

respect to the financial risks and the national quencies and related usage for deploy- sovereign right of each country to access and ment of broadband22. use the spectrum. The mechanism of first come first served has been mitigated by the establishment of a monetary fee during the 2.1.3 SatCom and European Telecommunication process of notification with the aim of reduc- Law ing cases of “paper satellites” that produces a The role of the EU in this context is under- wasteful workload for the ITU. In particular, taken by different actors, involving a high this bad attitude bypasses the co-operative degree of coordination of technical and policy spirit of the ITU RR, reduces the efficiency of issues. The main active players remain the the ITU system, and increases congestion in EC and the Member States because the spec- the skies and leads to business uncertainty trum is still an issue of national sovereignty and regulatory risk. There is little incentive particularly affecting matters of security, for national administrations to stop this prac- defence, safety and emergency. The EU as an tice. First, over-filing increases the chances of observer member is involved in ITU activities, getting a good orbit or frequency assignment. but it does not have voting or other rights. Second, the ITU has no enforcement mecha- There is a current debate about whether the nism; it relies instead on members' goodwill EU should be recognized a full-member of and cooperation. Third, goodwill can give way ITU and its relevance. The issue is not easy; to commercial interests when large sums of if the EU were a full individual member of the money are at stake. Fourth, the ITU process ITU, European Member States would lose only works correctly if the spirit of the RR is their votes and for the EU overall it would not universally respected. In light of these issues, be an advantage. On the other side it is true the next WRC 2012 already has a detailed 17 that EU would increase its weight under the agenda and the main points for SatCom are CEPT towards other CEPT members. The dia- the following: gram in picture 2 shows the coordination • Reconsidering mechanisms to reduce pa- mechanisms of EU with respect to the ITU. per satellites that restrict access op- 18 There are different players that are classified tions ; by competence in terms of policy, technical • Preventing the situation of satellites that and areas of services. The two dimensions of maybe already in orbit before completion this categorisation – technical and policy – of filling procedures and coordination19; necessitates having separate entities. On the technical side there is the Radio Spectrum • Reconsidering the timeframe may often Committee (RSC)23. It assists the EC in the be insufficient for developing countries to development and adoption of technical im- be able to complete the regulatory re- plementing measures aimed at ensuring quirements as well as the design, con- harmonized conditions for the availability and struction and launch of satellite sys- efficient use of the radio spectrum. The Euro- 20 tems ; pean Telecommunications Standards Institute • Increasing awareness concerning the (ETSI) produces globally-applicable standards lack of provisions for international moni- for Information and Communications Tech- toring to confirm the bringing into use of nologies (ICT), including fixed, mobile, radio, satellite networks (assignments and or- converged, broadcast and internet technolo- bits)21; gies; it is officially recognized by the EU as a European Standards Organization. The dia- • Increasing coordination of new satellite gram in the picture 3 shows the relationships systems with systems providing aeronau- in the EU framework for spectrum manage- tical and maritime radio-communications ment. and preventing harmful interference; • Consideration of a CEPT Proposal for Europe requiring review of ka-band fre-

17 ITU, 2012 World Radio Communication Conference - Agenda and References (Resolutions and Recommen- dations), 2010. 18 Under Resolution 86, Agenda Item 7 to the Agenda of the WRC 2012, several proposals are considered to 22 The position of CEPT can be seen on ECC Report improve the procedures of Advance Publication- 152 (publication: Sept. 2010) that provides details on Coordination-Notification and Recording of frequency those issues and studies to be carried out by CEPT assignments associated to satellite networks. (FM44/SE40 – www.ero.dk). 19 ITU, id., pp. 42. 23 It was established under the Radio Spectrum Decision 20 ITU, id., pp. 42. 676/2002/EC as part of the new regulatory framework for 21 ITU, id., pp. 43. electronic communications since 2002.

ESPI Report 32 18 May 2011 SatCom Policy in Europe

ITU World Radio Conference (WRC)

Radio Regs WRC-12 Conference preparation (CPM) (ITU RR) (23.1.-17.2.12) Regional entities: Arab Group (1)

Africa (ATU) (1) Ratification EU MS (1) Americas (CITEL) (2) (ITU members) Asia-Pacific (APT) (3)

(*) European Common Coordination within CEPT Positions ECPs(*) (CPG meetings) (1) = ITU Region 1 Preparation (2) = ITU Region 2 (3) = ITU Region 3 COM EC policy inputs A Communication on WRC-12 planned in 1H11 EC RSPG Opinion (EU is ITU sector member)

Picture 2: Coordination of EU toward ITU (Source: EC DG INFSO, 2010)

EU Spectrum Mgmt/Regulatory Process

RSPGRSPG RSPG advisory Commission (Group) action (Group) Opinion advice Since 2009, EP/Council can policy input / initiative also ask for RSPG advice by EC / members EPEP CouncilCouncil input / initiative by Commission NO Council Opinion RSC Opinion on EC Decision RSCRSC on EC NO (Committee)(Committee) Decision draft YES Co-decision mandates Commission proposal YES Adoption

technical implementation measure CEPTCEPT EPEP EC Decision Technical studies scrutiny on compatibility

Picture 3: EU Spectrum Management and Regulatory Framework (Source: EC DG INFSO, 2010)

On the policy side, the role of Radio Spec- been extended as a result of the adoption of trum Policy Group (RSPG)24 is relevant for the new telecom regulatory framework in the spectrum management among European 200925. According to the new remit, the RSPG Member States. The remit of the RSPG has can now also be requested by the European Parliament and/or the Council, in addition to the Commission, to issue an opinion or pro- 24 The RSPG is established under Commission Decision duce a report on specific radio spectrum pol- 2002/622/EC, which was one of the Commission initiatives icy issues relating to electronic communica- following the adoption of the Radio Spectrum Decision 676/2002/EC and it adopts opinions, position papers and reports, as well as issuing statements, which are aimed at assisting and advising the Commission at strategic level on 25 EC Decision 2009/978/EU of 16 December 2009 amend- radio spectrum policy issues. ing the Decision establishing the RSPG.

ESPI Report 32 19 May 2011

tions. Those opinions and reports shall be • Directive on regulatory framework 29, transmitted by the Commission to the institu- • Directive on the authorization30 of elec- tion which so requests. Where appropriate, tronic communications networks and ser- they may be in the form of oral presentation vices (the “Authorization Directive”); to the European Parliament and/or the Coun- cil by the chairman of the Group or a member • Directive on access31 to, and intercon- nominated by the Group. nection of, electronic communications networks and associated facilities (the Recognizing the risks to international satellite “Access Directive”); operators, the EU's 2002 Spectrum Decision established a Community legal framework to • Directive on the universal service32 (the ensure that national spectrum allocation poli- “Universal Service Directive”); cies are coordinated26, and where necessary, 27 • Directive on the processing of personal harmonized . Although the Spectrum Deci- 33 sion was a significant step for satellite opera- data (the “Privacy and Electronic tors, the jury is still out on the success of the Communications Directive”). pan-European spectrum allocation process. This legal corpus is currently on the process The system, as picture 3 presents, was de- of national transpositions. The set of regula- signed to remove regulatory risks; the se- tory policies has seminally ambitious goals of lected entities often require an additional creating an environment with the following license from individual States, which is un- aims: better regulation for competitive elec- necessary under a national allocation proc- tronic communications34, completing the sin- ess. A pan-European selection and authoriza- gle market in electronic communications35, tion process can be time consuming to estab- and increasing the level of consumer protec- lish and run, and is open to legal challenges if tion and facilitating access to and use of a well-balanced process is not in place. The communications36. harmonization approach permits saving time and money. The management of the spectrum, whether by command and control or by market forces, serves broader policy goals, primarily the the two Directives “Better law-making” and the “Citizens' delivery of the information society and rights” , as well as by a body of European regulators for electronic communications. through that the Lisbon agenda of jobs and 29 growth. The primary framework for this is the EU Directive 2002/21/EC on a common regulatory framework for electronic communications networks and creation of the single market, supported by services. policies for competition, spectrum allocation 30 EU Directive 2002/20/EC on the authorization of elec- and research and development. These issues tronic communications networks and services. have particular relevance in the establish- 31EU Directives 2002/19/EC on access to, and intercon- ment of the internal market for electronic nection of, electronic communications networks and associated facilities. communications, including SatCom. The EU 32 28 EU Directive 2002/22/EC of the European Parliament Telecom Package comprises five Directives and of the Council of 7 March 2002 on universal service in table 2, namely: and users' rights relating to electronic communications networks and services (Universal Service Directive). 33 EU Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the process- 26 Decision No. 676/2002/EC of the European Parliament ing of personal data and the protection of privacy in the and of the Council of 7 March 2002 on a regulatory frame- electronic communications sector (Directive on privacy and work for radio spectrum policy in the European Community electronic communications). (Radio Spectrum Decision), [2002-OJ L 108 of 24.4.2002]. 34 The EC proposes improving the existing regulatory 27 Commission Decision 2007/98/EC of 14 February 2007 framework by maintaining ex-ante regulation, subject to on the harmonized use of radio spectrum in the 2 GHz market trends. It also proposes simplifying access to the frequency bands for the implementation of systems provid- radio spectrum in order to encourage investment in new ing mobile satellite services [2007 OJ L43 of 15.2.2007] structures and release the economic potential of the spec- further acknowledged the specific characteristics of satel- trum. lite services in relation to terrestrial providers, thus paving 35 The single market for electronic communications is still the way for the first competitive pan-European spectrum currently segmented and suffering from a complete ab- allocation process. sence of coherence. The EC recommends establishing an 28 EU Directive 2009/140/EC of the European Parliament independent “European Electronic Communications Mar- and of the Council of 25 November 2009 amending Direc- ket Authority” which will build on the increased independ- tives 2002/21/EC on a common regulatory framework for ence of NRAs and improve existing coordination mecha- electronic communications networks and services, nisms. 2002/19/EC on access to, and interconnection of, elec- 36 It includes disabled users. The proposals aim in particu- tronic communications networks and associated facilities, lar to strengthen security and privacy and to promote a and 2002/20/EC on the authorization of electronic commu- high quality of service and unobstructed access to digital nications networks and services. Added to this list, there is content. The EC wishes to ensure the independence of also the Decision on a regulatory framework for radio regulatory authorities, whose links with traditional opera- spectrum policy (the “Radio Spectrum Decision”). The tors are often overly close, so as to ensure competition “Telecoms Package” was amended in December 2009 by and consumer rights.

ESPI Report 32 20 May 2011 SatCom Policy in Europe

Directive Aims Remarks Regulatory It establishes a harmonized regula- It sets out management of scarce Framework tory framework for all electronic resources such as radio spectra communications networks and services across the EU. Authorization It aims to implement harmonization It considers a “general authorization” and simplification of authorization that should limit administrative barri- rules and conditions in order to facili- ers to entry into the market to a tate their provision throughout the minimum. EU. Access Technological neutrality for product or It provides legal certainty for market service markets in particular geo- players by establishing clear criteria graphical areas, to address identified on their rights and obligations and on market problems between access and regulatory intervention. interconnection. Universal Service It aims to ensure universal service It aims to ensure the interoperability provision for public telephony services of digital consumer television equip- in an environment of greater overall ment and the provision of certain competitiveness, mandatory services. Privacy and Elec- It harmonizes the provisions of the It basically translates the Privacy tronic Communi- Member States required to ensure an Directive into the case of electronic cations equivalent level of protection of fun- communications. damental rights and freedoms,

Table 2: EU Telecom Package The two most controversial aspects of the of satellite operators. In addition, the neu- recently updated EU electronic communica- trality approach was introduced when techno- tions policy for communications satellite ser- logical solutions were already on the market vices are the pan-European spectrum alloca- with the aim of not disadvantaging anyone. tion process, and its technology and service Harmonization contributes to the single mar- neutrality approach to spectrum access. The ket in terms of greater economies of scale, first was designed to implement the common more competition, less cross-border interfer- market, and the second aims to make spec- ence, more pan-European networks and more trum bands available to all users irrespective roaming. On the other side, a low degree of of the technology used and the services pro- harmonization creates less flexibility to fit vided. The concepts of technology neutrality, local markets, instances of both under and service neutrality, and flexible spectrum over utilization of the spectrum at the same management are poorly defined and open to time, additional costs and unequal benefits. varying policy-driven interpretations. While According to the EU set of rules, the spec- the satellite industry favours technology and trum must be managed in a transparent, service neutrality in principle, it considers the non-discriminatory, objective way with equi- neutral allocation and assignment of frequen- table access to the spectrum, pursing the cies unfair as specific satellites are more principle of neutrality in terms of technology suited to specific frequency bands. These and service. The effects of service neutrality bands are finite, and with every frequency and technology neutrality were other issues allocation lost to terrestrial services, increas- that were under consideration. Service neu- ingly less suitable spectrum is available for trality was seen to maximize the economic future satellite deployment. Moreover, it has value of the spectrum, in that the services been proven regarding C-band that the coex- creating the highest revenue would be im- istence of terrestrial, especially mobile terres- plemented. This was also seen as a negative trial, and satellite services in some frequency issue, as public services such as public bands is very difficult, if not impossible37. broadcasters would likely be replaced by Introducing flexibility into the management of more profitable services. Also, device manu- certain core satellite frequency bands there- facturers and operators were seen as more fore jeopardizes the existing spectrum rights unlikely to invest in the development of new technologies if spectrum availability for them was uncertain. A possible negative effect that 37 Earth station receive antennae are very sensitive and therefore susceptible to harmful interference generated by respondents named was spectrum hoarding, co-frequency transmissions and out of band transmissions that is, the possibility of acquiring frequen- from terrestrial services operating in adjacent bands. cies for speculative purposes or to lock-out

ESPI Report 32 21 May 2011

competition. Technology neutrality without Space Policy, it could be addressed by the service neutrality was seen in a more positive Treaty on the Functioning of the European light. It would enable technology upgrade Union (TFEU) in accordance with Art. 4 para. paths for operators using existing spectrum 3, which expressly established a sui generis leading to faster time-to-market for new shared competence between the EU and the technologies38. Easier migration paths were Member States in the area of space. In the also seen to lead to increased competition areas of research, technological development between technologies. The negative aspects and space, the EU shall have competence to of both service and technology neutrality carry out activities, in particular to define and were identified as smaller economies of scale implement programmes. However, the exer- for device manufacturers and loss of interna- cise of that competence shall not result in tional harmonization, making interworking Member States being prevented from exercis- and roaming difficult if not impossible. These ing theirs. Space is mentioned in Art. 179 factors were also both seen to contribute to (TFEU) in the “objective of strengthening its higher end user prices. There are also con- scientific and technological bases by achiev- siderations concerning the opportunity to ing a European research area in which re- create the best value for spectrum with an searchers, scientific knowledge and technol- environment free of administrative costs and ogy circulate freely, and encouraging it to barriers that, here, are not addressed39. become more competitive, including in its There is also another way to achieve effective industry”. Art. 189 TFEU mentions space as and efficient use of the spectrum by cognitive leverage “to promote scientific and technical radio devices. This requires that devices are progress, industrial competitiveness” and it able to switch operations into “white areas” charges the EU to develop a Space Policy. It of the spectrum where performances are continues in the following paragraph estab- better. This technology should be useful also lishing that the European Parliament and the for SatCom due to interference created with Council, acting in accordance with the ordi- terrestrial technologies in down-link opera- nary legislative procedure, shall establish the tions. necessary measures, which may take the form of a European space programme, ex- The areas for EU regulation must take into cluding any harmonization of the laws and account the legal personality of the EU vis-à- regulations of the Member States. vis its Member States and other international organizations, for instance the ITU and ESA. On the other hand, if SatCom is considered a It is not easy to see where the right location component of a Trans-European Network, EU for SatCom is. If SatCom is an element of competence is expressed in Art. 4 para 2(h) as a shared competence between EU and Member-States: Shared competence between 38 South Korea should be mentioned as an encouraging the Union and the Member States applies in example: South Korean operators migrated to 3G technologies in existing frequencies as early as 2000, and the following principal areas: (…) (h) trans- today 3G users make account for 75% of subscribers, European networks; (…). It is suggested that contributing to a 12 – 18% increase in revenues due to this second possibility would establish a more add-on services (CDG 2004). 39 harmonized and systematic policy with a This means that the system of spectrum regulation higher degree of coherence and with a fair should be workable, administrative outlay should remain within reasonable bounds, and transaction costs should degree of efficiency for all European citizens. be kept as low as possible. In addition, institutional In addition, the behaviour of the EC in its barriers to spectrum trading should be kept as low as mandate for telecommunication regulatory possible. policy has been peculiar since the beginning. The set of regulations establishing this framework has The EC has been by far the most active of the the duty to assure best use of the spectrum. In economic terms it means that frequencies have to be as- European institutions in telecommunications signed to those who can use them most efficiently. This matters. In 1987 the EC published the Green can be for those who have a higher willingness to pay Paper on Telecommunications40. This docu- but at the same time this does not assure the best ment went one step further by acknowledging benefits for the effective use of the spectrum. Other- the need for increased competition in tele- wise, it creates positions of speculation and abuse. It implies that the charge for using the spectrum should communications as a way of providing con- never be higher than the corresponding opportunity sumers with “a greater variety of telecom- cost, which is equal to the market price. It is required, munications services, of better quality and at then, to create incentives for investment in new technologies that are able to contribute in a positive way to the effective use of the spectrum. It implies that users 40 The Green paper was a clear declaration of principles have to able to use the spectrum for a period that is on the part of the EC. Far from deferring to national sufficient to amortize the investment occurs and on the governments, the EC announced that it would act ag- other hand, care also needs to be taken to ensure that gressively to open the telecommunications sector to spectrum regulation does not have a negative impact on competition as soon as feasible. The EC was certainly the returns that can be achieved in certain sectors. aware that it would encounter strong resistance from Some theorists envisage creating a framework for a State Members’ intent to preserve telecommunication simulated market contest. monopolies.

ESPI Report 32 22 May 2011 SatCom Policy in Europe

lower cost”. The EC took a bold step: the Community trade” are illegal under Art. 30 of regulations that implemented its telecommu- the EEC Treaty43. nication policy were adopted under Art. 9041 of the Treaty Establishing the European Eco- nomic Community (EEC Treaty), which ar- guably permitted the EC to bypass other 2.2 SatCom in the European European Community institutions in promul- Policies gating laws. The directives were addressed to Member States and had to be implemented SatCom is addressed by different European through national legislation. They could be policies due to its place as a means of com- issued by the EC or by the Council. Member munication, critical infrastructure and its stra- States opposed this aspect of EC regulation tegic value for Europe. This paragraph shows and submitted a case to the Court of Justice. the enabling role of SatCom for each identi- The Court of Justice dismissed this as under fied European policy, such as the Lisbon Art. 90 (1) which directs Member States to Strategy and, more broadly, space policy, “neither enact nor maintain” rules that permit international relations and industrial policy. monopoly holders to engage in anticompeti- The table 3 gives an overview. The context of tive behaviour to preserve their market industrial policy and broadband development power. In addition the Court drew a distinc- and deployment will be considered in the tion between general decision-making powers next chapter as “the policy priorities”. regarding establishment of the Common Mar-

ket, which it deemed to be subject to Art. 100 A, and specific enforcement powers in Policy Field Current Policy Initiatives

competition matters placed under EC jurisdic- st th tion by Art. 90 of the EEC Treaty. This deci- Space Policy • 1 - 7 Space Councils sion was a victory for the EC and bestowed Lisbon Strat- • European Economic Re- upon it new levels of authority. Then the egy covery Plan Court went further by affirming the principles • Europe 2020: of a well-known competition case, making it • Digital Agenda applicable to telecommunication equipment, • Innovation Policy and leaving the door open to its application to • New Skills & Jobs services. In the case Procurer du Roi vs. • Fighting Poverty 42 Dawsonville , it was firmly established that • Youth on the Move “all trading rules enacted by Member States • Resource Efficiency & which are capable of hindering directly or Energy indirectly, actually or potentially intra- International • Common Foreign Secu- Relations rity Policy • European External Action 41 Art. 90 of the EEC TREATY imposes upon Member Service States the obligation to neither enact nor maintain • European Security & De- measures contrary to the treaty in their relationship with state enterprises (as undertakings) and with enterprises fence Policy which have been granted exclusive rights of the same Industrial • Integrated Industrial Pol- kind. Art. 90 (3) contains a special enforcement procedure permitting the EC to address directives to the Policy icy Member States directly without first submitting them to • FP7:Space and ICT the Council and the Parliament. 42 Procureur du Roi v. Dassonville (Case 8/74): This was Table 3: SatCom is an element in EU Policy Initiatives one of many court cases that helped to precisely define the European Economic Community's internal free trade policy. Belgium had imposed a law that firms importing Scotch whisky had to provide certificates of authentication from the government of the United Kingdom. When several importers began bringing in Scotch from France, the Belgian government sued them. The European Court of Justice found that the Belgian law was in viola- tion of Art. 28 EC (Art. 30 of the original EC Treaty), which states: "Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States." The court ruled that "all trading rules enacted by Member States which are capable 43 See for a comprehensive survey on these topics: EC, of hindering, directly or indirectly, actually or potentially, Guide to the Case Law of the Court of the Justice of the intra-Community trade are to be considered as meas- European Union in the field of Telecommunications, ures having an effect equivalent to quantitative restric- 2010, tions." In essence, the case established that EC Mem- [http://ec.europa.eu/information_society/policy/ecomm/doc/ ber States could not show favouritism, in any way, implementa- shape, or form, toward other Member States in their tion_enforcement/infringements/guidetocaselaw2010en.pd trade policy. f - available at Nov. 2010]

ESPI Report 32 23 May 2011

space powers, other powers and international 2.2.1 SatCom as Element of Space Policy organizations. The classification was made The starting point for Space Policy is an with the aim of increasing Europe’s role in the analysis of Space Council Documentation, world. It is also in this context that SatCom form the first one in 2004 to the most recent can play its role due its technological one - draft proposal - in 2010. The first achievements and features but the sector is Space Council44 focused on four pillar points; missed in a specific way. scope and content of European Space Policy The fourth Space Council47 proposed a vision (ESP), governance, industrial policy and for Europe with a general strategy of viewing funding ESP. It did not give any specific ad- space as an element for enhancing European dress line for SatCom, even if an elaborate cohesion; established steps for programmes interpretation in favour of SatCom can be and their implementation rules, recognizing made using points establishing rules of “mak- the strategic value of sustainability for im- ing best use of existing capacities and plementation of space activities; considered strengths and avoiding duplication of tasks” the dual-value of space assets for civil and and recognising the “strategic importance for defence purposes; and emphasised the vital their contribution to the implementation of a importance for Europe of maintaining inde- wide range of European Policies”. A specific pendent, reliable and cost-effective access to policy on the role of SatCom was expected space at affordable conditions. In addition, it because the assets were already in orbit and emphasised the political and scientific impor- they could be enablers for a wide range of tance of the ISS and space exploration. It European policies. stressed the role of science and technology to The second Space Council45 recognized the enhance the leading role of Europe. It pro- strategic value of the space sector for posed a coordination measure for the gov- Europe. It identified a role for the EU as a ernance of space activities between ESA and pro-active actor with the duty of identifying the EU. In establishing industrial policy, it and bringing together user needs and political recognized the flexibility of ESA rules as an will in support of ESP and wider policy objec- effective and cost-effective industrial tool. It tives. On the other side, it established the also enhanced the role of international rela- role of ESA as developer of space technolo- tions as tools for improving access to third gies and systems, supporting innovation and markets for European industrial players and global competitiveness. In addition, the pri- for cost-saving of space activities whose orities of ESP were identified in terms of the costs are so high for only a single space two European flagship programmes, Galileo power. In addition it encouraged the imple- and GMES, the competitive access to space mentation of Public-Private-Partnership (PPP) through launchers and all elements of the as a financing scheme for involving lead- value chains. The key principles of implemen- market initiatives. In this contest the role of tation were incorporated as part of the moti- SatCom should be proposed as a component vation to maintain and reinforce scientific and of European cohesion as it can provide the technological expertise and capacities, and to same services for huge areas at same time, it encourage the necessary investment to sus- can have dual-use relevance for civil and tain know-how, independence and globally military communications, it can be easy af- competitive of European space industry. fordable for the PPP model and it can be an While SatCom was again not specifically men- asset to strengthen the European role for tioned, its importance could be seen as part sustainable development towards developing of the maintenance of achieved know-how of countries, inter alia, African States. the European SatCom sector. The fifth Space Council48 recognised the need The third Space Council46 took account of the to develop and deploy space applications and role of international cooperation in the Euro- services and related infrastructures to con- pean strategy for Space activities. Interna- tribute to societal, cultural, economic and tional partners were classified into four cate- scientific achievements, develop industrial gories: established space powers, emerging and scientific potentialities and assure political and technological autonomy in a rea- soned, coherent and realistic manner. It rec- 44 1st SPACE COUNCIL, Orientations from the first Space Council on the preparation of the European Space Pro- ognised four priority areas, namely, the con- gramme, Council of the European Union, 25 November tribution of space to climate change, space as 2004. an enabler of the Lisbon strategy, the rela- 45 2nd SPACE COUNCIL - Orientations from the second tionship between space and security as de- Space Council, Council of the European Union, 7 June 2005. 46 3rd SPACE COUNCIL - Orientations from the third 47 4th SPACE COUNCIL - Resolution on the European Space Council on Global Monitoring for Environment and Space Policy, Brussels, 22 May 2007. Security (GMES), Council of the European Union, 28 48 5th SPACE COUNCIL, Council Resolution: Taking for- November 2005. ward the European Space Policy, 26 September 2008.

ESPI Report 32 24 May 2011 SatCom Policy in Europe

fence and foreign policy highlighting coordi- ance of space activities in Europe. Particular nation between civilian and defence space mention was made of the potential contribu- programmes in the long-term arrangements, tion of space activities, including SatCom, to and establishing mitigation strategies to en- the sustainable development of the African sure guaranteed European access and re- continent and achieving the Millennium De- duced European dependence. In addition, it velopment Goals (MDGs). The expansion of also remarked on need to develop a common broadband is a critical factor in development, vision and long-term strategic planning for and in meeting the MDGs. Broadband has exploration. value in delivering health services and education, as well as its role in cultural diversity, The sixth Space Council49 recognised the and the generation of economic activity and value of an established framework for a management of climate change, natural dis- structured dialogue concerning the coordina- asters and other global crises. Highlighting tion of space and defence, and the potential- the need for governments to raise broadband ity of identifying critical space technologies to the top of the development agenda and for European non-dependence. It emphasized speed up its rollout, the importance of pro- the contribution made by space activities to viding affordable broadband in the least de- the targets of the European Economic Recov- veloped countries was recommended. The ery Plan (EERP), recognising inter alia the role of SatCom as the best tool in the provi- existing innovation support mechanisms in sion of broadband services in rural and re- Europe at all levels, the cross-fertilization of mote areas or in the case of natural disasters knowledge, innovation and ideas between when land infrastructure is not available space and non-space sectors and between should be stressed. Satellite technology is space industry and the academic world. It is rapidly deployable, highly reliable and capa- the first time that a specific role of SatCom ble of delivering the access speeds required was recognised for Europe. SatCom was seen by applications. Satellites represent instant as an enabler technology to fill the broadband infrastructure that is economically viable and in terms of the binding implementation of efficient. The main challenge for SatCom, EERP. It was seen as an integrating technol- following the policy lines of this last space ogy in the future broadband for Europe re- Council, is to establish a significant role in the specting the principles of open competition, partnership with Africa initiative. The mes- technology neutrality and open and neutral sage is different from previous Space Coun- Internet architecture. In addition, there is the cils as the policy is with and not for Africa need to explore innovative approaches and anymore. Thus it is opportune to identify architectures for the provision of global satel- synergies of Europe with African stake- lite communications services in response to holders. In a special way, strategic synergies institutional demand for wider European poli- with local satellite operators with planned and cies: transport, energy and security. on-orbit satellites for providing services lo- The seventh Space Council is fully aware that cally are envisaged. space is an enabler for the delivery of EU The ESP is deeply focused on the successful policies, specifically in contributing to Europe delivery of GMES and Galileo. On the one 2020´s growth aims. It promised the neces- hand, this seems to exclude the relevance of sary actions to protect and sustain the avail- SatCom but there are tasks that can be de- ability of critical space technologies, launch- livered only if SatCom is considered. The full ers, satellite systems and know-how; to pro- role of Galileo and GMES can be exploited mote healthy industry for a sustainable only if communications are effective and uni- Europe, to prevent harmful interferences of form over the European continent. The real satellite signals and to take into account the relevance of downstream services and the needed frequencies for Europe. European effective strategic value of the two pro- industry has to be sustained in a competitive grammes are evident in the context of disas- way on European and export marketplaces. ter management and post-crisis events where Attention then focused on the seven pillars: land telecommunication infrastructures col- strategy and investment; the implementation lapse or are damaged or even destroyed. The of the flagship programmes Galileo and last two Space Councils remarked on the GMES; the contribution of space to combating leadership role of the two programmes as climate change and its effects; the role of drivers of all space value chain and applica- space for security and the security of space; tions, including SatCom that is a basic under- the vision of space exploration; the partner- lying layer. The ESA expressed some con- ship on space with Africa; and the govern- cerns about data delivery systems for Senti- nels because they have less data storage 49 6th SPACE COUNCIL, Council Resolution: The Contri- capability on board than their data acquiring bution of space to innovation and competitiveness in the systems. This could be a bottle-neck to the context of the European Economic Recovery Plan, and timely delivery of data that are acquired further steps, 15 June 2009.

ESPI Report 32 25 May 2011

through the orbit routes of satellites. A tech- • Anti-cyclical fiscal stimulus and nological tool can help to solve the problem - • Structural reform as an anti-cyclical this is the interaction with a data-relay satel- measure. lite based in a geostationary orbit. This sys- The thrust of the EERP is to restore confi- tem will be considered with some possibility dence of consumers and business. It is envis- of piggy-back payloads for SatCom. Every aged to provide a demand stimulus of € 200 time European Space policy documents men- billion, equivalent to 1.5 % of EU Gross Do- tion SatCom, it is just added as an ancillary mestic Product (GDP), in addition to possible component of the two flagship programmes. further monetary easing. It consists of four It is clear that SatCom has its peculiar fea- measures: monetary and credit policies51, tures in terms of technology and value for fiscal policy52, Lisbon-type structural reform53 European socio-economic growth. Thus, a and external co-operation54. limited role for SatCom is perceived because the involvement of specific transponders on- board a satellite and the related architecture of the SatCom system are not taken into full 51 Monetary policy is decided independently by the ECB, account. The EC has noted to Member States but it is assumed that the Bank will continue to provide that: "Space policy is driven by three main liquidity as necessary, and possibly lower the interest rate imperatives: societal [...]; economic [...]; further. Concerning credit policies, it is suggested that Member States encourage a return to normal lending strategic [...].” Commercial SatCom is the activities and ensure that ECB interest rate cuts are only sub-sector of space services today capa- passed on to borrowers. The EIB Group has taken on to ble of delivering these three imperatives. In increase its yearly interventions in the EU by some € 15 addition, SatCom can play a crucial comple- billion in 2009/10, equivalent to 7,5 % of the total of € 200 mentary role in delivering the two main flag- billion (including loans, equity, guarantees and risk-sharing financing), while the EBRD is expected to increase present ship programmes. Galileo is a positioning financing in the new Member States by some € 0.5 billion. system which, when complemented with 52 Fiscal policy should provide a significant stimulus to the communications, becomes a navigation sys- EU economy, without breaching the Stability and Growth tem and as a result opens up a wealth of Pact (SGP). This stimulus should amount to € 185 billion, opportunities, of which the EC is well aware. equivalent to 1.4 % of Union GDP. Then, an amount of € 170 billion, equivalent to 85 % of the total, should be con- It must also be recognized that the communi- tributed by Member States, in addition to letting automatic cation element cannot always be achieved stabilizers work. It is suggested that the share of each terrestrially and therefore SatCom will play a Member State be determined by macro-economic criteria, key role in Galileo-derived applications and in particular its current budgetary, competitive and external position. services and in maximizing the value of GMES 53 data. Measures should be targeted towards employment, availability of credit and Lisbon-type structural reform, and The last communication of EC, namely “To- combine revenue and expenditure instruments, with the latter also including guarantees and loan subsidies. In wards a space strategy for the European Un- 50 addition, it is suggested that structural reform address ion that benefits its citizens” , recognises to some of the underlying root causes of the present crisis, SatCom to be a “significant part” of the space bring down prices in key markets, reinforce the link be- market. SatCom is relevant not only for its tween wage setting mechanism and productivity develop- generated turnover but also for its role as ments, avoid temporary labour shedding through more leverage for the independence of European flexible working time, and reduce the time to start up a business. The remaining 7,5 % would come from the EU space sector because of it can foster the in- budget, taking mostly the form of shifting spending appro- novation. SatCom is envisaged to have a priations (from areas with foreseeable under-spending) to clear role for the delivering the broadband infrastructure projects and of increasing pre-financing of connectivity in Europe as established by the projects. Action on Lisbon-type structural reform comprises Digital Agenda. 10 proposals, which the Commission will specify in mid- December at level of Member State. These proposals include launching a major European employment support initiative (partly subsidized by the EU Budget), reducing 2.2.2 SatCom as an Element of the Lisbon social security contributions on lower incomes, reducing Strategy VAT on labour-intensive services, facilitating public-private partnerships, accelerating investments in infrastructure, In order to take anti-cyclical measures “greening” energy policies, investing in R&D, innovation against the economic-financial crisis, the and education as well as providing universal access to Council of the EU adopted the European Eco- High-speed Internet. 54 nomic Recovery Plan. It is an initiative with A greater engagement is envisaged in the context of addressing the current downturn, of renewing commitment two main pillars: to an open world trade (also including early agreement on the WTO Doha round), of a more effective regulatory cooperation with key industrialized countries, of tackling 50 EC, Communication from the Commission to the Coun- climate change, and of stepping up development support. cil, the European Parliament, the European Economic and References to macro-economic issues are limited to a call Social Committee and the Committee of the Regions: on the European Council to continue close co-operation Towards a space strategy for the European Union that with international partners with a view to implementing benefits its citizens, SEC(2011) 381 final, SEC(2011) 380 global solutions to strengthen global governance and final, Brussels, 4.4. 2011, COM (2011) 152 final. promote the economic recovery.

ESPI Report 32 26 May 2011 SatCom Policy in Europe

In 2009, reduced access to capital, changing • Social pillar modernizing the European perceptions of risk and shifting definitions social model, investing in people and about what is economically viable in this cli- combating social exclusion; mate – i.e. provides sufficient return on in- • Environmental pillar sustaining the vestment –reduced the number of areas healthy economic outlook and favourable where operators could venture due to lack of growth prospects by applying an appro- finance. These factors have also affected priate macro-economic policy mix. operators’ ability to make financial commitments to upgrade existing networks. Funding By 2010, it was alleged by some that most of is also required in light of the increased chal- Lisbon Strategy Agenda goals had not been lenges associated with the rollout of broad- achieved. Official appraisal of the Lisbon band infrastructure. The EERP stimulus is Strategy took place in March 2010 at a Euro- distributed through [the following initiatives pean Summit, where the new Europe 2020 strategy was also launched. Europe 2020 is a 1. Factories of the Future (FoF); 10-year strategy proposed by the EC on 3 2. Energy – Efficient Buildings (EEB); March 2010 for reviving the economy of the 3. Green cars (GE) and; EU. It aims at "smart, sustainable, inclusive 4. High Speed –Internet for everyone growth" with greater coordination of national (HIS). and European policy. It identifies five head- The cases addressed to SatCom are FoF with line targets: a total budget of € 1.2 billion, and HIS. HIS is 1. Employment: 75% of 20-64 year-olds considered as an action on Lisbon-type struc- to be employed; tural reform for which the EU will propose an employment support initiative (partly subsi- 2. R&D and Innovation: 3% of the EU's dized by the EU Budget), reducing social se- GDP to be invested in public and pri- curity contributions on lower incomes, reduc- vate R&D for innovation; ing Value Added Tax (VAT) on labour- intensive services, facilitating PPPs, accelerat- 3. Climate Change & Energy: reducing ing investments in infrastructure, “greening” greenhouse gas emissions 20% (or energy policies and investing in R&D, innova- even 30%, if a satisfactory interna- tion and knowledge. tional agreement can be achieved to follow Kyoto) lower than in 1990, The Lisbon Strategy was an action and devel- providing 20% of energy from re- opment plan for the economy of the EU be- newable sources, saving of emissions tween 2000 and 201055. Its aim was to make through at least 20% increase in en- the EU "the most competitive and dynamic ergy efficiency; knowledge-based economy in the world capable of sustainable economic growth with 4. Education: Reducing school drop-out more and better jobs and greater social co- rates below 10% at least 40% of 30- hesion", by 2010. This target had three pil- 34 year-olds completing third level lars56: education (or equivalent); • Economic pillar preparing the ground for 5. Poverty & Social Exclusion: at least the transition to a competitive, dynamic, 20 million fewer people in, or at risk knowledge-based economy by better of, poverty and social exclusion. policies for the information society, These targets will be implemented through strengthening the role of R&D and com- national targets in each European country, pleting the internal market; reflecting different situations and circumstances. They are highlighted through 12 Flagship Initiatives which contain three segments of Growth: smart, sustainable and 55 This was set out by the European Council in Lisbon in inclusive. March 2000. 56 The Lisbon Strategy focused attention on the concept of This high level strategic plan for the EU af- Innovation as the motor for economic change. Under the fects the SatCom sector insofar as this tech- strategy, a stronger economy would create employment in nology can play a crucial role in reaching the the EU, alongside inclusive social and environmental headline targets through different flagship policies, which would themselves drive economic growth even further. initiatives, in a direct way: An EU research group found in 2005 that current progress • Digital Agenda for Europe: SatCom is one had been judged "unconvincing", so a reform process was introduced wherein all goals would be reviewed every of the unique technologies that through three years, with assistance provided for failing items. its unique infrastructure permits closing Translation of the Lisbon Strategy goals into concrete the current broadband gap; measures led to the extension of the Framework Programs for Research and Technological Development (FP) and the and in an indirect way: Joint Technology Initiatives (JTI).

ESPI Report 32 27 May 2011

Picture 4: An integrated vision of the role and infrastructure of utilities, inter alia telecommunications (Source: EC DG MOVE, 2010)

• Innovation: SatCom requires a high level the mobility of the workers throughout of innovation for its industrial develop- Europe; ment in order to sustain, protect and im- • Fighting Poverty: SatCom solutions can prove its “independent” European know- help to reduce the exclusion of people how; living in poor circumstances in remote • Climate, Energy and Mobility: SatCom and isolated locations. applications – asset management solu- The diagram in picture 4 depicts SatCom as a tions, and monitoring and alarming cross-sectional communication infrastructure communication systems - can improve in which SatCom is not only a “critical infra- the efficiency of energy systems and structures” in itself but also supports other networks in terms of energy saving and sectors including the industrial sector (en- increased safety; ergy, postal, and transport infrastructure, • Competitiveness: SatCom can help to banks, financial entities) and social sectors increase the competitiveness of tele- (e-government, e-justice, e-health, e- learn- communication solutions through differ- ing). ent technological systems. Its deploy- One particularly relevant new initiative is New ment requires a global approach; Skills and New Jobs57, which is a joint policy • Employment and Skills: The SatCom industry is characterized by a few big en- 57 This initiative enables EU Member States to learn from terprises and several European SMEs; each other and share solutions by pooling their efforts at the former require the contributions of the European level, as well as cooperating with other the latter; they are used to working to- international organizations on themes related to skills gether in special way for the deployment upgrading, matching and anticipation. New Skills for New of ESA programmes that works under the Jobs draws on existing EU instruments such as the Euro- pean Social Fund (ESF) to achieve its aims. It is an essen- system of juste retour under which tial tool of the European Employment Strategy to expand members of programmes can expect to and enhance investment in workers’ skills, as part of its receive back in industrial contracts an overall aim to create more and better jobs throughout the amount roughly equivalent to their con- EU. tributions, less overheads. This requires New Skills for New Jobs also contributes to the EU 2020 Strategy, the follow-up of the EU Lisbon Strategy for

ESPI Report 32 28 May 2011 SatCom Policy in Europe

initiative carried out in cooperation between The aims of this policy initiative are mirrored the EC and the EU Member States. It aims to in Youth on the Move, which is an initiative address some of these issues by developing pursuant to Europe 2020. Its package pro- more effective ways to analyse and predict poses measures aimed at: which skills will be required in tomorrow's • Improving the job prospects of young labour markets and, with this knowledge, to people; develop and adapt education and training so that workers gain the required skills. The • Making education and training more rele- SatCom sector represents a workforce of vant to their needs; around 45.000 employees58. The European space industry is distributed across all ESA • Raising awareness of EU mobility grants countries, resulting in significant fragmenta- to study, train or do voluntary service in tion, particularly in the smallest contributors another country - independent studies to the ESA. Yet, the 6 major ESA-Member show this experience is highly rated by contributors (France, Germany, Italy, United employers. Kingdom, Spain and Belgium) account for SatCom can contribute to reaching the de- about 90% of employment. European space sired targets because the sector employs industry employment is composed of a ma- young people and encourages mobility jority of males (77%), with an average age through Member States. This happens be- around 44. Female employees are slightly cause the sector is dominated by big compa- younger (42.5 average age). The proportion nies based in different States. of employees above 50 is 32%, a figure which is slightly worrying as it suggests an The aim of inclusive and sustainable growth 61 ageing working population with potential re- is also addressed by the Innovation Union placement issues and know-how preservation that focuses on major areas of public concern problems in the next decade. Concerning such as climate change, energy efficiency and employees’ qualifications, European space healthy living. It pursues a broad concept of industry employment is marked by a signifi- innovation, not only technological, but also in cantly higher than average proportion of uni- business models, design, branding and ser- versity graduates/engineers (53% of the vices that add value for users. It includes total)59. As a whole 77% of space industry public sector and social innovation as well as employees are high level technicians, scien- commercial innovation. It aims to involve all tists and/or engineers. In addition, the work- actors and all regions in the innovation cycle. force is highly concentrated in the “big com- The policies in the Innovation Union Plan aim panies” so policy intervention is easily ad- to: dressable and implementable. The biggest 1. Make Europe into a world-class sci- company, EADS, comprises around 32% of ence performer; the entire workforce. This implies also that the sector is worker-intensive so every new 2. Revolutionize the way public and pri- policy in favour of the workers will have di- vate sectors work together, notably rect effective results. There is a huge debate through Innovation Partnerships; and in the trade-off between SatCom and terres- 3. Remove bottlenecks – like expensive trial technology because the latter has a patenting, market fragmentation, higher number of employees. This point slow standard setting and skill short- needs clarification because the development ages - that currently prevent ideas of a SatCom has a 10-year lead-time and the getting quickly to market. phases of mission design and manufacturing deployment need a huge number of employ- SatCom can intuitively play a substantial role ees60. In light of these facts, the sector is as it can create new job-opportunities62 as highly labour-intensive, with a high level of well as life patterns and conditions through a qualifications and innovation for development and deployment. 61 EC, Communication from the Commission to the Euro- pean Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions, Growth and Jobs. Recommendations on how to advance Europe 2020 Flagship Initiative - Innovation Union, SEC the New Skills for New Jobs agenda as a part of EU 2020 (2010) 1161, Brussels, 6.10.2010, COM(2010) 546 final. were presented in the report of a group of independent The Innovation Union is a flagship of the EU 2020 Strat- high-level experts set up by the European Commission. egy. Like the Integrated Industrial Policy and other EU 58 ESOA, Communication of Association on European 2020 flagship programs, it must be smart, sustainable and Space Programmes, 2010. inclusive. This policy proposes ten actions in order to boost 59 Eurospace, The European Space Industry: Facts & the role of innovation, easily expressed by the EU target Figures, 2010. that 3% of GDP should be invested in R&D. 60 ESOA, Communications Satellites & The EU Regulatory 62 There exist several studies and estimations describing Framework, 2008 and proving that satellite communication can boost job- [http://www.esoa.net/upload/files/policy/ESOA_20080513_ growth in the economy. An exhaustive overview will be EUTelecoms.pdf available at Feb 2011] presented in Chapter 4 concerning broadband.

ESPI Report 32 29 May 2011

Picture 5: Use of Internet versus use of e-government services (Source: Europe’s Digital Competitiveness Report 2010)

unique and common satellite telecommunica- homelessness more effective. The EC now tion system that can satisfy the needs of wants to promote innovation in social policy, people living in a larger area. SatCom can using small projects to evaluate potential new also indirectly satisfy the target of “greener policies or reforms. The aim is for EU coun- and better societies” because it has low envi- tries to learn from each other’s experiences, ronmental-impacts due to the fact that it is and ultimately fine-tune their social policies easily deployable and less land-invasive in so that they have a greater impact. The com- terms of infrastructure, and its electromag- ing years - 2011-12 in particular - will see a netic pollution is lower than terrestrial tech- range of initiatives, including coordination on nologies. SatCom can also contribute to the voluntary policy and information sharing, new aim of a better life as it can provide substan- legislation and project funding. Specific ac- tial assistance to: air and maritime safety, by tions will target those most at risk, including guaranteeing near-real time communication young people, people with disabilities and and alert messaging systems; military com- minority groups such as Roma. It has been munication; disaster management procedures already highlighted that SatCom in a one- and monitoring energy infrastructure with its stop action cover a large area and can con- high degree of criticality. In addition, Sat- tribute to inclusion policy mechanisms in a Com is a front-runner technology in terms of concrete and easy way. The EC Communica- performance; it can inter-play between public tion explicitly declares that poverty as social and private actors to enhance the benefits of exclusion has different reasons also including investments. the digital divide in terms of the unavailability not only of skills to be able to use digital tools Continuing with the aim of inclusive growth, but also in the availability of the infrastruc- the European Platform Against Poverty And ture –signals and systems – to participate in Social Exclusion63, as a flagship programme society where a lot of services are electronic. of Europe 2020, will encourage new ways of Europe’s Digital Competitiveness Report working and helping governments and other 201064 shows the increase in the dimension actors develop more effective and innovative of e-government services for citizens includ- methods to tackle poverty. Although fighting ing use of the Internet. The graph of picture poverty is primarily the responsibility of indi- 5 shows the relationship between general vidual member countries, EU-wide targets uses of the Internet in the last three month and approaches have helped make national of 2010 and e-government uses. policies in areas such as child poverty and It can be seen that e-government uses increase as general Internet use increases, 63 EC, Communication from the Commission to the Euro- thus e-government applications are used pean Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, The European Platform against Poverty and Social Exclusion: An European framework for social and territorial cohesion - 64 http://ec.europa.eu/information_society/digital- SEC(2010) 1564 final - Brussels, 16.12.2010, COM(2010) agenda/documents/edcr.pdf [It is available at January 758 final. 2011].

ESPI Report 32 30 May 2011 SatCom Policy in Europe

more widely where the digital society is bet- 2.2.3 SatCom as an Element of International Re- ter established. This implies unfair treatment lations of citizens who live in isolated areas where no use of e-government is made because of the SatCom can enhance the role of Europe in its lack of infrastructure. This directly impacts on international relations because it can be an the equal citizenship rights of Europeans who element of the Common Foreign Security are excluded from these important services. Policy (CFSP), the European External Action Service (EEAS), the European Security and With respect to sustainable European growth, Defence Policy (ESDP) and Space Policy as energy is a critical and strategic commodity discussed above. for every State and group of States, including the EU. The EU is particularly concerned Specifically, with respect to CFSP, Member about energy provision and resources as it is States have committed themselves to a a “big” energy consumer with limited energy Common Foreign Security Policy for the resources and without a technological domi- European Union with aims of strengthening nant position for energy exploitation and the EU's external ability to act through the supply65. Thus, much of its international rela- development of civilian and military capabili- tions is related to the need to have secure ties in Conflict Prevention and Crisis Man- energy supplies in the most effective and agement. Foreign and security policy is one efficient way. Relations with Russia are criti- area where essential authority remains with cally impacted by reliance on gas supply. EU governments, although the EC and, to a Relations with US are also affected by energy lesser extent the European Parliament, are technology dependence for energy exploita- associated with the process. Key decisions tion. The relationships with new emerging are taken by unanimous vote. Aware of this countries such as China and India also com- constraint, the EU has introduced more flexi- prise energy issues and are mainly impacted ble voting procedures on CFSP decisions by by international law regarding global warming allowing individual governments to abstain, and the need to reduce CO2 emissions, along or by using majority voting, or by allowing a with the question of technology transfer to majority of countries to act on their own; but emerging countries. Overall policy on energy unanimity is still required on decisions with security and efficiency is quite complex as military and/or defence implications. Each there are several expressions of interest and European State has its own telecommunica- communications by the EC, the Council and tion systems for military purposes, even if the Parliament. Here, the interest is in under- dual-use and/or vocation of SatCom is being standing the enabling value and contribution increasingly adopted. SatCom is clearly rele- of SatCom in providing services for 24/7 re- vant in this area but Europe does not have a mote control and monitoring systems for coordinated approach that would surely result industrial processes including renewable en- in cost-savings. It should be noted that cur- ergy plants, which are often located in re- rently the sales of the European industry can mote areas. In addition to being feasible be- also be split between civil and military sys- cause of its instant connectivity to such sites, tems. Interestingly, the total value of military SatCom provides a green solution that does systems sold exceeds the value of sales to not emit CO2 while monitoring such plants. military entities. This is because military sys- Furthermore an increasing number of oil & tems can be procured by some civil custom- gas companies that have vessels and plat- ers, as is the case of the private operator forms in remote and hostile locations, such as Paradigm that procured the military Skynet-5 off-shore, polar areas, and desert zones, are systems, and also of some civil agencies such using corporate networks through VSAT tech- as CNES, DLR and ASI, that procure military 66 nology. In these situations terrestrial tele- systems for defence authorities . communication technologies are not easily With respect to EEAS67, EU High Representa- affordable or not available at all. The value of tive for Foreign Affairs and Security Policy establishing a network of communication for has diverse responsibilities including: oil & gas companies includes greater efficiency for drilling operations, for safety and 1. Security & Defence; security issues and for reducing the impact of disasters. 66 ESPI (S. Pagkratis), Space Policies, Issues and Trends in 2009/2010, 2010, pp. 98 – 101. 67 To address these issues the EU maintains diplomatic relations with nearly all countries in the world. It has strategic partnerships with key international players, is deeply engaged with emerging powers around the globe, and has signed bilateral Association Agreements with a number of States in its vicinity. Abroad, the Union is represented by a network of 136 EU Delegations, which have similar func- 65 International Energy Agency, Statistic Yearbook, 2010. tions to those of an embassy.

ESPI Report 32 31 May 2011

Table 4: European Sales & Export 2010 (Source: Eurospace, 2010)

2. Foreign Policy; communications for relief efforts, which oth- 3. Global challenges; erwise would have taken much longer to set 4. Instrument for Stability; up. SatCom offer a range of solutions to meet 5. Human Rights and the immediate needs of emergency response, 6. Regional policies. help civil protection as well as the on-going needs of humanitarian aid. In addition, Sat- Beside the issue of peace in the Middle East Com permits affirmation of this strategic role and promoting the cultural debate to enhance and it can be a “traded-good” with other democracy and human rights in the world, countries such as Russia, USA, and Asian there is also the duty to act in foreign trade countries. Russia is one of the European and support the principles of free and fair neighbours and it is quite convenient to have international trade. Concerning European a coordination action with it. Europe is energy SatCom the almost perfect split between dependent from Russia, thus SatCom can be sales to European institutional customers one of commodities for a policy of market (50.1%) and commercial and export sales and trade reciprocity. USA is achieved an (49.9%) confirms the important level of ex- economy of scale for SatCom spacecrafts and posure of the European Space industry68 to even European satellite operators are buying open markets. SatCom is one of the Euro- USA satellites. In addition, USA with its global pean industrial sectors with a significant satellite operator, Intelsat, can also affect amount of exports. Export sales (or sales to European marketplace for SatCom services. customers in the Rest of the World, € 1.2 Thus, a coordinated vision will prevent a lim- billion are evenly split between three catego- ited market performance of European play- ries, public operators, private operators and ers. The relations with Asian countries are sales to other companies in the sector. It is more complex because China can be a good interesting to note in table 4 that exports are market for European industry due to its huge almost exclusively composed of telecommu- demand for SatCom services and Japan can nications systems. be a good partner for provision of advanced This policy action can also support the social digital communication components as shown and economic development of partners, and in the follow section 3.1.3 concerning with be ready to help when they are faced with the achievements of industrial policy. disaster. Together, the EU and its Member The European Union's European Security and States are the world’s largest donors of de- Defence Policy (ESDP) includes the gradual velopment and humanitarian aid. Their con- framing of a common defence policy which tributions account for 60% of the world’s might in time lead to a common defence. The official development assistance. As seen most ESDP aims to allow the Union to develop its recently in Haiti & Chile, established and so- civilian and military capacities for crisis man- phisticated ground infrastructures can be agement and conflict prevention at interna- damaged and rendered useless during disas- tional level, thus helping to maintain peace ters. SatCom infrastructures have almost and international security, in accordance with complete immunity from catastrophic events the United Nations Charter. The ESDP, which such as hurricanes, floods, and earthquakes does not involve the creation of a European and are therefore deployed during most if not army, is developing in a manner that is com- all disasters to enable immediate crucial patible and coordinated with NATO. Space capabilities that could be made available to 68 The positive trend in commercial and export sales ob- NATO forces run the entire gamut of space served since the recovery of the commercial market in products and services available. NATO has 2003 is ongoing. With an overall turnover of € 2.5 billion made under unfavourable exchange rate conditions, the already made great strides in SatCom and European Space industry demonstrates its competitive- missile warning and notable achievements in ness on the global market.

ESPI Report 32 32 May 2011 SatCom Policy in Europe

geographic imagery exploitation. SatCom are NATO from within their nationally owned sys- an area where NATO has long been success- tems. This provides NATO with more commu- ful in providing NATO commanders and forces nications capacity and an increased robust- with a vital military space capability. Since ness by virtue of the inherent diversity of the the launch of the first NATO communications satellite design and command and control system via satellite in 1970, NATO has united architecture. Designed to published NATO in providing common funding according to standards and guidance, the space-based agreed cost-sharing formulas. Although that systems and the ground-based equipment arrangement provided a vital capability in an used within the NATO force structure and by area where resources were very scarce, the NATO member nations are compatible. Of all communications requirements in the informa- of the areas of space force enhancement, tion age have outstripped the capacity of the communications alone is the one that is ma- dedicated NATO satellites. In response, NATO ture and robust, and can serve as the stan- changed the scheme in 2005 to an arrange- dard against which the other areas may be ment with the United Kingdom, Italy, and compared. France to provide military communications to

ESPI Report 32 33 May 2011

3. The Policy Priorities

SatCom is currently being asked to play cru- with fiscal and monetary instruments; redis- cial roles as an element of industrial policy tribution tools ; agricultural and services poli- and as an element of European initiatives for cies; tax policy; energy; land-use, and so on) broadband connectivity. The first field is go- and 'policies which directly help or constrain ing to fit the right place in line with the de- industry but are not meant (only) for indus- veloping new governance model between EU try' (such as price controls, buy-national and ESA for space programmes. The second campaigns, tied development aid or environ- field is going to play a substantial role not mental policies addressing specific hazards only in implementing the technology but also such as poisonous chemicals or smog). in contributing to European growth according SatCom industrial policy has also these two to the three ambitious attributes: smart, levels of policies. EU policies affecting Sat- sustainable and inclusive. Com have been analysed above. Here, the policy context that directly addresses industry policy is addressed. In the case of Sat- 3.1 SatCom Industrial Policy Com there is also the interaction with another player, ESA, which addresses the space pro- To discuss the industrial policy of the EU is a grammes. Thus, the picture is more complex complex matter with, at least, two levels of than that previously described in general policy-making, drastic changes over time and terms. The sector requires policy analysis in the overall difficulty of where to draw the terms of the technological and industrial ef- boundaries of EU industrial policy. In the EU, forts of stakeholders from the two fields, industrial policy is pursued by (at least) two space and communication. Historically, the levels of government: the EU and the Mem- field of communication was seen as a public ber States. These two ‘European’ features good in terms of the natural monopoly of add to ‘general’ complications in analyzing infrastructure and the positive externalities industrial policy, such as the contrast be- for users/customers and even citizens. Space tween normative economics ('welfare') and was historically considered to be an area of positive analytical approaches to industrial research and development of technology and policy, variations in classification of what science and/or foreign affairs. Nowadays, the industrial policy is, and the potentially vast two fields are converging because of current range of tools, quasi-tools and soft forms of trends of liberalization of the telecommunica- persuasion in this area69. These two levels of tions sector and much reduced State inter- intervention require identifying the division of vention even on the infrastructure side, and powers between them, and the complemen- the increasing interest in recognising the role tarities between the Member States and EU of space infrastructure in providing utilities level of government when it comes to indus- for the daily needs of citizens. This context trial policy. Then, there is the classification assists in identifying three levels of players in that begins by distinguishing two sets of pol- SatCom industrial policy, namely: icy which influence industry, yet are not part • EU; of industrial policy, namely, 'policies not for • ESA and industry which affect industry' for obvious • Member States. reasons (such as macroeconomic stability Within the category of Member States there 69 The great significance of European integration in deter- are also other players such as Ministries of mining (changes in) structure and performance of industry Defence procuring SatCom systems and ser- in Europe is due to the deepening of economic integration vices but here they will not be considered as since the 1970s, the widening of its scope and the playing a direct and active role as policy enlargement of the club. Member States, drawing on the makers but as procurement actors. SatCom treaties but also on changing insights about the role and dynamics of markets, have agreed to bind themselves ever systems, as described above, can be viewed more by the pro-competitive logic of deepening market as three components that involve three in- integration and to abide by the ever stricter constraints that dustrial segments and related market play- this implies. In addition, they have not (or better, only ers. Thus, industry policy is going to be ana- marginally and selectively) shifted to the EU level the tools lysed according to the scheme in table 5. for interventionist policy-making Member States themselves used to employ in the past.

ESPI Report 32 34 May 2011 SatCom Policy in Europe

Component of EU ESA National Industrial Segment System Industrial policy Industrial Policy Industrial Policy System Manufac- Space 8 9 9 turers Network & Ground Satellite Operators 8 9 9 VAS & End-Users Services Providers 9 9 9 Key-Reading: 9 as ‘yes’ - 8 as ‘no’.

Table 5: SatCom Industrial Policymakers and Related Segments

on the adaptation of skills to changing indus- 3.1.1 SatCom Industrial Policy: EU tries, and an explicit paragraph72 on Space. With this perspective, industrial policy has to In 2010 the EC proposed an integrated indus- be addressed with the aims of competitive- 70 trial policy for Europe . It is a challenge to ness and sustainability. In this context Sat- establish an industrial policy with an inte- Com is explicitly mentioned as a key space 71 grated view in order to reduce inefficiencies sector from the economic and technological and to increase synergies among different point of view. It is defined as crucial for de- industrial sectors, minimising costs and bur- livering the Digital Agenda closing the broad- dens for Europeans. The communication on band gap for Europe. In line with this target, industrial policy is a central element of the EU the EC has the duty to establish an adequate 2020 Strategy which targets sustainable, spectrum policy. The implementation of this inclusive and smart growth. It meets the wish industrial policy must pursue three impera- expressed by a majority of Member States for tives: societal because of benefits for all the implementation of a truly European in- Europeans; economic in terms of space as a dustrial policy. The Communication pointed generator of knowledge that drives innova- out that industry is still the foundation of the tion and, strategic as space has to act as a European economy. It also emphasised the policy tool contributing to the role of Europe fact that it makes a significant contribution to as a global actor. the external competitiveness of the EU. Three major items have renewed the policy’s This new policy approach permits reviewing approach: the implementation of current policy tools. EU Industry Policy has leverage on at least three 1. The linking of a horizontal (transver- areas: sal) dimension and of a sector-based approach; • Competitiveness and Innovation Frame- work Programme (CIP); 2. The inclusion of complete value • Framework Programme (FP currently chains; FP7) and 3. The publication on a regular basis of • Structural Funds. status reports on industrial policies The first supports innovation activities (in- and Member State competitiveness cluding eco-innovation), provides better ac- including the tracking of legislation cess to finance and delivers business support implemented to promote entrepre- services in the regions. The CIP is divided neurship. into three operational programmes73. Each The Communication has several chapters programme has its specific objectives, aimed dedicated to access to financing, the links at contributing to the competitiveness of en- between industrial policy and the Single Mar- terprises and their innovative capacity in their ket Act, the development of infrastructure own areas, such as ICT or sustainable en- and product standardisation. The document ergy. The CIP runs from 2007 to 2013 with also has several chapters on innovation and an overall budget of € 3.621 million. Of particular relevance for SatCom purposes is The 70 Information Communication Technologies EC, Communication from the Commission to the Euro- pean Parliament, the Council, the European Economic and Policy Support Programme (ICT-PSP) that Social Committee and the Committee of the Regions, An funds mainly pilot actions, involving both Integrated Industrial Policy for the Globalization Era Put- public and private organisations, for validat- ting Competitiveness and Sustainability at Centre Stage - {SEC(2010) 1272} {SEC(2010) 1276}. 71 The EU started to have an integrated vision of policy 72 EC, Int. Ind. Policy, para 8.1 Space. A driver for innova- implementation in 2006 with the Integrated Product Policy tion and competitiveness at citizens’ service, 2010. for Environmental concerns. It continued in 2007 with EC, 73 They are the Entrepreneurship and Innovation Pro- An Integrated Maritime Policy for the European Union - gramme (EIP),the Information Communication Technolo- COM(2007) 575 final 10 Oct 2007 and in 2008 with Inte- gies Policy Support Programme (ICT-PSP) and the Intelli- grated Policy for Climate Change and Energy Policy. gent Energy Europe Programme (IEE).

ESPI Report 32 35 May 2011

ing in real settings, innovative and interoper- • The “convergence” objective to acceler- able ICT based services in areas such as: ate the convergence of the least developed EU Member States and regions by • ICT for health, ageing and inclusion; improving growth and employment con- • Digital Libraries; ditions. This objective is financed by the • ICT for improved public services; ERDF, the ESF and the Cohesion Fund. It • ICT for energy efficiency and smart mo- represents 81.5% of the total resources bility; allocated. The co-financing ceilings for • Multilingual web and Internet evolution; public expenditure amount to 75% for • Networking actions for sharing experi- the ERDF and the ESF and 85% for the ences and preparing the deployment of Cohesion Fund; innovative ICT based solutions in such areas are also supported, as well as the • The “regional competitiveness and em- monitoring of the Information Society ployment” objective to anticipate eco- through benchmarking, analyses and nomic and social change, promote inno- awareness raising actions. vation, entrepreneurship, environmental protection and the development of labour FP bundles all research-related EU initiatives markets which include regions not cov- together under a common roof playing a cru- ered by the Convergence objective. It is cial role in reaching the goals of growth, financed by the ERDF and the ESF and competitiveness and employment; along with accounts for 16% of the total allocated a new CIP, Education and Training pro- resources. Measures under this objective grammes, and Structural and Cohesion Funds can receive co-financing of up to 50% of for regional convergence and competitive- public expenditure; ness. The broad objectives of FP7 have been grouped into four categories: Cooperation, • The “European territorial cooperation” Ideas, People and Capacities. For each type objective to strengthen cooperation at of objective, there is a specific programme cross-border, transnational and interre- corresponding to the main areas of EU regional levels in the fields of urban, rural search policy. All specific programmes work and coastal development, and foster the together to promote and encourage the crea- development of economic relations and tion of European poles of scientific excel- networking between small and medium- lence. It is managed by thematic areas that, sized enterprises (SMEs). This objective for present purposes, can be achieved in In- is financed by the ERDF and represents dustry and Industrial Technology and Infor- 2.5% of the total allocated resources. mation and Communication Technology. Measures under the Territorial Coopera- tion objective can receive co-financing of The Structural Funds and the Cohesion Fund, up to 75% of public expenditure. with the European Regional Development Fund (ERDF) for large infrastructures and the With the exception of grants coming from the European Social Fund (ESF) for job- FP, these funds have not been directly in- integrations, are the financial instruments of volved in the development and/or deploy- EU regional policy, which is intended to nar- ment of SatCom. At present, FP7 is running row the development disparities among re- and has a specific involvement in SatCom as gions and Member States. The Funds partici- an element of the ICT Sector and Space. It is pate fully, therefore, in pursuing the goal of considered to be a component of the ICT economic, social and territorial cohesion. For programme for enhancing the role of the EU the period 2007-2013, the budget allocated but there is no specific mention as Space of to regional policy amounts to around € 348 FP7 programmes. It is clear that SatCom is billion, comprising € 278 billion for the Struc- considered as an enabler technology for the tural Funds and € 70 billion for the Cohesion ICT sector and not of the space industry. Fund. This represents 35% of the Community Thus the focus is more on network and con- budget and is the second largest budget nectivity provision than space service in it- item. self. Consequently there is no identified specific strategic value for the EU in its foreign These Funds74 will be used to finance regional relations but for Europe towards its citizens. policy between 2007 and 2013 in the frame- This is in line with the EU i2010 and Digital work of the three new objectives, namely: Agenda initiatives. In addition, these initiatives have to fulfil the aims of Europe 2020. 74 Structural Fund and Cohesion Fund support for the three The R&D for ICT has a precise strategic pur- objectives always involves co-financing. The rates of co- pose as A Strategy for ICT R&D and Innova- financing may be reduced in accordance with the "polluter tion in Europe: Raising the Game75, where the pays" principle or where a project generates income. All priorities are different from those for Space projects must of course comply with EU legislation, particu- sectors. In particular there is a divergence of larly with regard to competition, the environment and public procurement. vision for international cooperation. If Sat-

ESPI Report 32 36 May 2011 SatCom Policy in Europe

Com is an element of the space sector it The table 6 is a non-exhaustive overview of must be part of international cooperation the main current EU projects concerning Sat- notably for Africa. If SatCom is an element of Com under FP7 – ICT, indicating the total the ICT strategy it has the task of implement- cost of the project in terms of million of Euros ing international cooperation with the aim of (Cost) and the EU funds (EU Fund). seeking strategic partnerships to tackle some of the future grand challenges in ICT R&D such as the Future Internet.

EU Relevance of Project Name Cost Aims Fund SatCom 20-20 3D Media: Spatial 15.21 9.84 Creation of new forms of Broadcasting sound and vision stereoscopic and immersive Execution: 2008-12 networked media for the home and public spaces ACTION-GRID: Interna- 1.12 0.99 Creation of a common health Tele-medicine tional cooperative action on information infrastructure in grid computing and biomedi- Europe, and extending it to cal informatics between the other regions European Union, Latin Amer- ica, the Western Balkans and North Africa Execution: 2008-09

ASCENS: Autonomic Ser- 7.21 5.3 Exploiting the future genera- Satellite network vice-Component Ensembles tion of software-intensive Execution: 2010-14 systems ensembles CRISP: Cutting edge recon- 4.4 2.8 Optimal utilization, efficient Downstream figurable ICS for stream programming and dependabil- satellite Services processing ity of reconfigurable many- related with IP- Execution: 2008-10 cores for streaming applica- TV and broad- tions. casting

FISI: Future Integral Sat- 0.64 0.49 Definition of a strategic vision SatCom Policy Com Initiative on R&D priorities for the Execution: 2010-12 European SatCom industry in the evolving ICT context LOCON: Platform for an 4.4 2.8 Development of connectivity Network platform inter-working of embedded and inter-working of embed- with interaction localization and communica- ded localization and commu- of SatCom Assets tion systems nication systems Execution: 2008-10 MEDNET: Latin American 2.14 1.4 Development of a medical Tele-medicine Health Care Network network that addresses the Execution: 2008-10 problems of providing health care from a distance in Latin America MEMS-4-MMIC: Enabling 2.9 2.9 Proof-of-concept of an RF- SatCom Antenna MEMS-MMIC technology for MEMS MMIC based antenna cost-effective multifunctional module RF-system integration Execution: 2008-10 MONET: Mechanisms for 3.6 2.43 Development of hybrid solu- SatCom Connec- optimization of hybrid ad-hoc tion SatCom and terrestrial tivity networks and satellite net- technology networks

75 EC, A Strategy for ICT R&D and Innovation in Europe: Raising the Game, {SEC(2009) 289} - Brussels, 13.3.2009 COM(2009) 116 final.

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EU Relevance of Project Name Cost Aims Fund SatCom works Execution: 2010-12 MUSCADE: Multimedia Scal- 11.7 7.45 Evolution from HDTV to 3DTV Broadcasting able 3D for Europe Execution: 2010-12 MYMEDIA: Dynamic per- 4.4 2.8 Integration of multiple, con- Broadcasting sonalization of Multimedia tent catalogues and recom- Execution: 2008-10 mender algorithms in a single system. NETMAR: Open service net- 3.8 2.9 Interoperability and connec- SatCom Network work for marine environ- tivity between heterogeneous mental data data systems to meet the Execution: 2010-13 demand for information from different user groups OPTIBAND: Optimization of 4.5 2.8 Demonstration of the video Broadcasting Bandwidth for IPTV video content data dropping algo- streaming rithm Execution: 2010-12 PII: Pan-European labora- 8.3 5.7 Federated test bed for new SatCom down- tory infrastructure imple- communication services and stream services mentation applications across Europe Execution: 2008-10 SEACOOP: Further develop- 0.8 0.5 Interaction of South-Asian SatCom Network ing strategic RandD coopera- needs with European ones tion with Southeast Asia on (user driver mechanisms) ICT Execution: 2007-09 SFERA: Structural funds for 1.09 0.9 Evaluation architecture for SatCom Network European regional research network of the future advancement Execution: 2007-09 SISI: Support action to the 1.42 0.9 Support platform involving SatCom Policy Integral SatCom Initiative stakeholders for SatCom de- (ISI) velopment Execution: 2008-10 TELEIOS: Virtual Observa- 3.7 2.8 Implementing a SatCom net- SatCom Network tory Infrastructure for Earth work for EO data sharing foe EO data dis- Observation Data semination Execution: 2010-13 WHERE: Wireless hybrid 5.5 4 Combination of wireless SatCom Connec- enhanced mobile radio esti- communications and naviga- tivity mators tion for the benefit of the Execution: 2008-10 ubiquitous access for a future mobile radio system WHERE2: Wireless Hybrid 7.48 5.26 Integral research of coopera- SatCom interac- Enhanced Mobile Radio Esti- tive positioning and communi- tion with terres- mators - Phase 2 cations trial technologies Execution: 2010-13 Total [Million €] 94.31 64.96

Table 6: Projects funded by FP7 - ICT with SatCom relevance

SatCom is also an element of the FP7work is going to serve policy priorities that are plan for Space. Under this framework space different from those under FP7 - ICT. In par-

ESPI Report 32 38 May 2011 SatCom Policy in Europe

ticular, FP7 is tasked with delivering the fol- tional Space Station (ISS), as well as to lowing EU policies: maintain independent access to space; • Sustainable Development including cli- • Develop a more coordinated and coher- mate change; ent approach to international relations in • Common Foreign and Security Policy and space; • Europe 2020. • Create, for the first time, a common Work plan 201176 of FP7 Space provides the European Space Programme, serving as overall political framework for the develop- a basis for transparency of European and ment of a viable and strong European space national space programmes. sector that will: Space is considered to have a role also in • Develop and exploit European space ap- International Cooperation. SatCom is explic- plications, such as Galileo, GMES and itly recognized as a central tool to support satellite communication applications to Africa in its sustainable economic and social secure maximum political, economic and development. Thus, under FP7 ICT, SatCom social return from investments in space has a role in supporting the external, not technologies; internal, role for Europe, as above described. The real role of SatCom is seen as an ele- • Establish appropriate funding arrangement of integrated applications with naviga- ments for the operational phase of tion and remote sensing. The integration of GMES, in order to ensure the sustainabil- SatCom and satellite navigation solutions ity of the services for users; with space-based observing systems foster- • Improve coordination of and better ex- ing the convergence of these space-based ploit synergies between civilian and mili- capacities with an emphasis on prevention tary programmes – to find ways and and management of emergencies is seen as a means to improve the coordination be- priority. There has not actually been any pro- tween civilian and defence space project for SatCom funded by FP7 Space. It is a grammes in long-term arrangements. sort a back-step from the previous FP6 where This will help to ensure that each sector SatCom has been funded for projects through can take maximum advantage of the in- FP6 Infrastructures, FP6 Aerospace, FP6 Mo- vestments of the other; bility and FP6 Information Society Technol- ogy. The table 7 presents the main projects • Invest to maintain technological exper- for SatCom referring the project cost (Cost) tise as well as knowledge in space-based and the project funding (Fun) in million of science and space exploration, for exam- Euros. ple by the extensive use of the Interna- .

PF6 Information Society Technology Cost Fun Wireless infrastructure over satellite for emergency communications 2.53 1.28 IP-based Networks, services and terminals for convergence systems 17.38 9.6 Broadband to rural America over satellite integrated links 0.9 0.9 Satellite-based communications systems within IPv6 networks 7.17 4.25 Advancing interactive Broadband satellite access by optimal convergence 5.15 2.9 of session based services over DVB-RCS Qubit applications 12.79 9.9 Universal satellite home connection 6.26 3.55 Cooperation on digital broadcasting convergence with mobile communica- 1.06 0.9 tions between Europe and China Satellite communications network of excellence - Phase II 7 Satellite access technologies: Leading improvements for Europe 8.43 4.5 Mobile applications and services based on satellite and terrestrial inter- 10.21 5.2 working Satellite Communications Network of Excellence 4.4

76 EC, C (2010) 4900 of 19 July 2010.

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Advanced satellite mobile systems-task force specific support action 0.7 0.6 Communications from Aerial Platform Networks delivering Broadband 5.65 3.1 Communications for All Total [Million €] 78.23 58.08 FP6 Aerospace Cost Fun Land and sea integrated monitoring for European security 21.2 11.93 Satcomms in support of transport on European roads 10.33 5.38 Airborne new and advanced satellite techniques and technologies in a 19.46 11.09 system integrated approach MObile Wideband Global Link sYstem 12.6 6.61 Telecommunications advanced networks for GMES operations 9.25 5.19 New technologies to avoid digital division in e-divided areas 3.07 1.9 RURAL WINGS 8.83 5.4 BASE2 - Broadband Access Satellite Enabled Education 2.15 1.34 African satellite communication and Galileo applications 0.3 0.3 Networking the Sky for Aeronautical Communications 3.59 2.13 Aeronautical surveillance and planning by advanced satellite-implemented 4.24 2.37 applications Study on High Altitude Aircrafts and Airships (HAAS), deployed for spe- 0.5 0.5 cific aeronautical and space applications Improved material exploitation at safe design of composite airframe 6.69 4 structures by accurate simulation of collapse Improvement of Fan Broadband Noise Prediction: Experimental investiga- 4.83 3 tion and computational modelling Total [Million €] 107.04 61.14 FP6 Infrastructures Cost Fun Organising Caucasus and Central Asian services for Internet offerings to 0.8 0.8 NRENs Total [Million €] 0.8 0.8 FP6 Mobility Cost Fun Multi-application advanced channel coding 0.15 Modelling and analysis of dielectric resonators for microwave applications 0.04 0.04 Total [Million €] 0.04 0.19 Total [Million €] 186.11 120.21

Table 7: Projects funded by FP67 with SatCom relevance

ESPI Report 32 40 May 2011 SatCom Policy in Europe

These issues are not here deeply considered. 3.1.2 SatCom Industrial Policy: ESA and National The Council resolution recognized that the Space Agencies EU, together with the ESA and the Member States, is a major player in space. The EU The main role of industrial policymaker is was charged in particular with strengthening played by ESA in accordance with its Institu- the coordination of resources and pro- tional Convention of 1975, Art. VII ESA Con- grammes with ESA and the Member States 77 vention . According to the ESA Convention and the development of EU instruments and and the framework agreement between ESA funding schemes to allow for long term EU 78 and EU , one of the major tasks of ESA pro- investment in space. There is a huge debate curements is to increase the competitiveness about the differences between the mandates of European industry on the international of the EU and ESA and the difference be- market. The whole ESA procurement ap- tween the internal market framework under proach aims at developing the capacity of the EU and the ESA framework with the prin- European industry to enable it to react to ciple of juste retour is going to receive much market demands in the most efficient and the attention. While on the surface these princi- most economical way. One of the Agency's ples seem to be contradictory, it should be essential industrial policy activities is to per- noted that the overall context has worked form a number of co-ordination and harmoni- very well for establishing a European space zation tasks between European and national industry. The ESA principle encouraged space activities. States to join ESA while the European rules The profile of Industry Policy for space activi- with respect to the establishment of the in- ties is linked with the model of governance ternal market helped the industrial players to and coordination for a common view of Space easily establish themselves in new ESA Mem- Policy between ESA and the EU, which is still ber States. This permitted a natural transfer under construction79. This matter involves of space technology, industrial capabilities important issues with two dimensions: and market dynamics. Thus, the fair competition context is not affected in a negative way • Geographical asymmetry of ESA and EU but is, on the contrary, saved because the Member States; European economy did not suffer any loss of efficiency with negative effects for citizens • ESA principle of juste retour and EU prin- and consumers. The table 8 shows how the ciple of “fair competition in the internal EU has favoured the establishment of new market”. industrial players even if they came from the same holding company and it also shows the industrial consolidation in Europe and its extent. 77 The industrial policy which the Agency is to elaborate and apply by virtue of Art. II d. shall be designed in particu- Here, a sort of positive “discrimination” by EU lar to: towards merger and antitrust operations in • meet the requirements of the European space pro- the field of SatCom is understandable. The gram and the co-ordinated national space programs rational is often envisaged in the positive in a cost effective manner; • improve the world-wide competitiveness of Euro- value of the vertical model for SatCom in pean industry by maintaining and developing space order to reduce inefficiency in developing new technology and by encouraging the rationalization innovative customized services for “profes- and development of an industrial structure appropri- sional” consumers (military, governmental ate to market requirements, making use in the first entities, oil & gas companies and corpora- place of the existing industrial potential of all Mem- tions in general terms). It is also due to the ber States; • ensure that all Member States participate in an absence of a huge mass market of satellite equitable manner, having regard to their financial services with the direct involvement of citi- contribution, in implementing the European space zens/users. program and in the associated development of space technology; in particular the Agency shall for the execution of the programs grant preference to the fullest extent possible to industry in all Member States, which shall be given the maximum opportunity to participate in the work of technological interest undertaken for the Agency; • exploit the advantages of free competitive bidding, except where this should be incompatible with other defined objectives of industrial policy. 78 EU Council Decision on the signing of the Framework Agreement between the European Community and the European Space Agency, Brussels, 7 October 2003 (OR. en)- 12858/03, RECH152, OC 589. 79 EU and ESA, Resolution on the European Space Policy, March 2007.

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Policy Case Num- Parts Time Remarks Result Area ber Nordic Satellite Distri- Council Regulation 4064/89 Merger 1995 M. 490 8 bution Art: 8 (3) Concentration Magneti Marelli - Tele- Council Regulation 4064/89 Merger 1998 M 1211 9 spazio Art. 3 (1) (b) Art. 6 (1) (b) Art. 85 (1) - (3) Antitrust TPS + 7 1999 36237 9 EC Treaty Art. 81 (1) Antitrust Eutelsat 2000 37562 9 EC Treaty Council Regulation 4064/89 Merger MMS - DASA - Astrium 2000 M 1636 9 Art. 8 (2) Antitrust Intelsat 2001 37995 Cooperation Agreement 9 Concentration Finmeccanica - Tele- Merger 2002 M 2949 Council Regulation 4064/89 9 spazio Art. 6 (1) (b) Council Regulation 4064/89 Merger EADS - Astrium 2002 M 2924 9 Art. 6 (1) (b) Council Regulation 4064/89 EADS - Astrium 2003 M 3156 9 Merger Art. 6 (1) (b) Lombardia - Trasport- State Aids 2005 XS139/2004 Direct Grant 9 Satellite Control Alcatel - Finmeccanica Concentration Merger - Alcatel Alenia Space 2005 M 3680 Council Regulation 139/2004 9 - Telespazio Art. 8 (1) Apax Partners - Concentration Merger Telenor Satellite Ser- 2007 M. 4709 9 Regulation (EC) No 139/2004 vices Thales - Finmeccanica Council Regulation 139/2004 Merger - Alcatel Alenia Space 2007 M 4403 9 Art. 8 (1) (b) - Telespazio SES Astra - Eutelsat - Council Regulation 139/2004 Merger 2007 M 4477 9 JV Art. 6 (1) (b) Council Regulation 139/2004 Merger Serafina - Intelsat 2007 M 4804 9 Art. 6 (1) (b) Theodorus I - Theo- dorus II - EADS As- Council Regulation 139/2004 Merger 2008 M 5060 9 trium - Euro Heat Art. 6 (1) (b) Pipes Abertis - SEPI - CDTI - Council Regulation 139/2004 Merger 2008 M 5105 9 INTA - Hispasat Art. 6 (1) (b) Key-Reading: 9 as ‘Approved’ - 8 as ‘Rejected’.

Table 8: EU Cases of Antitrust, Merger and State Aids in SatCom

ESPI Report 32 42 May 2011 SatCom Policy in Europe

ESA began developing communications satel- grammes are presented in the table 9: lites in 1968. Past relevant ESA SatCom Pro-

SatCom Programmes Description Achievements Orbital Test Sat- SatCom in C- and Ku-Bands Lost at launch in 1977 ellite (OTS-1) Orbital Test Sat- SatCom with six Ku-band trans- ESA, Eutelsat and national tele- ellite (OTS-2) ponders and provided services com companies used OTS-2 for for 7,200 telephone circuits. over 13 years. It demonstrated broadcasting to cable feeds and direct-to-home television. OTS-2 inspired subsequent satellites in Europe. European Com- Each ECS allowed coverage of These satellites were used by munications Sat- the whole European continent Eutelsat. ellites (ECS) for cable television, telephone communications, specialized services and Eurovision transmissions MARECS SatCom Development for com- They were leased for operations munications with mobile sta- to Inmarsat. Their L-band pay- tions, especially ships at sea loads, with global coverage, han- dle 50 telephone circuits. Olympus Its design incorporated tech- Its direct-to-home TV broadcast- nologies that were later incorpo- ing payload allowed national net- rated in commercial satellites, work programme to be captured including high-power transmit- with dish antennas as small as 30 ters, multi-spot beam Ka-band cm in diameter. technology and on-board switching. Artemis A technological demonstration It is one of the European Experi- satellite that incorporates Data ments for a multi-task satellite. Relay Satellite at both optical frequencies and in the Ka-band, a navigation payload for EGNOS and a mobile services payload. Hylas - 1 The Highly Adaptable Satellite is It is ESA’s first public–private an advanced satellite system partnership resulting in a full focused on high-speed internet satellite system. The commercial connectivity for Europe. Operat- operator, UK-based Avanti Com- ing across Ku- and Ka-band munications, has contributed frequencies with advanced most of the mission budget and communication technology, will use the satellite to deliver Hylas-1 can pipe broadband broadband services to customers. through the sky to hundreds of ESA’s involvement focuses on thousands of previously under- Hylas-1's payload technology. served users while simultane- ously broadcasting multiple standard and high-definition TV channels.

Table 9: Past ESA Programmes and Achievements

Industry policy for the development and/or ellite Systems (ARTES) programme. Cur- deployment of SatCom has traditionally in- rently, ESA has a long-term telecommunica- volved manufacturing players. Up to now, tion plan in which the items in table 10 refer ESA and National Space Agencies have driven to SatCom from the point of view of satellite industry policy in these senses. ESA has cre- systems: ated a programme line known as the Ad- vanced Research on Telecommunication Sat-

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ARTES Programme Description Challenge ARTES 7 – Euro- DRS are satellites placed in To add to Europe’s independence, the pean Data Relay geostationary orbit to relay European Data Relay Satellite System will Satellite (EDRS) information to-from non- fill the gap of an independent European geostationary satellites, telecom network that is fast, reliable and spacecraft, other vehicles seamless. and fixed Earth stations, which otherwise are not able to permanently transmit-receive data. ARTES 8 Al- This is the satellite that, in The Inmarsat extended L- band (XL) phabus/Alphasat partnership with Inmarsat, payload will support advanced geomobile will incorporate the first communications and augment Inmarsat's unit of the Alphabus Plat- BGAN service with its coverage centred form jointly developed by over Africa and providing additional cov- Astrium and Thales Alenia erage to Europe, the Middle-East and Space. Alphasat incorpo- parts of Asia. rates innovative on-board The other technological tests are of: processing technology and ‐ Advanced Laser Communication Termi- user services. nal to demonstrate GEO to LEO communication links at 1064nm; ‐ Q-V Band communications experiment to assess the feasibility of these bands for future commercial applications; Advanced Star Tracker with active pixel detector; Monitor the GEO radiation environment and effects on electronic components. ARTES 10 IRIS Development of a new Air- By 2020 it will contribute to the moderni- Ground Communication zation of air traffic management by pro- system for Air Traffic Man- viding digital data links to cockpit crews in agement. continental and oceanic airspace. The satellite-based solution for the Single European Sky ATM Research (SESAR) programme. ARTES 11 Small - Development and imple- The core team of companies that is jointly GEO mentation of the Small developing and will later commercialise GEO System. the platform includes, besides OHB- This is a satellite that, in System AG and its Luxembourgish sub- partnership with Hispasat sidiary LuxSpace, Swedish Space Corpora- will fly the Luxor Platform tion, Carlo Gavazzi Space (Italy) and Oer- developed by OHB and likon (Switzerland). partners. The selection of Hispasat for the mission This satellite will incorpo- was made through an open Call for Inter- rate advanced payload est (ESA, June 2007). technology: DVB-S2 Proces- sor and active antennas.

Table 10: ESA Programmes with SatCom System

The interest of ESA is to address front-runner • Exploration use of “new” bands as XL- SatCom systems in terms of: Bands, where there are crowded uses, and Q/V Bands after the Ka-Band (Al- • New concept of satellite systems (EDRS) phasat/Alphabus); with the aim of European Autonomy80 of space assets; • Procuring of innovative systems for critical services in support of Air Traffic Man- agement (IRIS);

80 European Autonomy is a concept stressed by ESPI. It is • Development of affordable SatCom sys- close to European Dependence and Independence of tems with aim of reducing barriers of Space Policy.

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satellite infrastructures to new-entry • Affirming the relevance of SatCom tech- players in the market and to permit nologies for provision of broadband ser- economies of scale in the supply of vices with the further aim of exploit manufacturing chains (Small – GEO). bands in anticipation of a crowded environment for Ka-Band uses; The strategy of ESA is characterised by the following points: • Supporting the needs of new operators through the development of small- • Enhancing the role of SatCom also for satellites in order to gain efficiency space exploration needs as EDRS can through a standardized supply chain. provide communication for the deep space environment; From the network and platform point of view, ESA also includes items referring to SatCom • Enhancing, again, the role of SatCom for in the current telecommunication long-term institutional purposes such as air traffic plan, such as in table 11: management issues with IRIS;

Programme Description Challenge ARTES 1 Pre- Dedicated to strategic analysis, • Integration of Mobile Satellite Sys- paratory market analysis, technology and tems in terrestrial mobile networks system feasibility studies and to • The role of satellites in converged the support of satellite communi- mobile/fixed/broadcasting environ- cation standards. ments • Emerging system concepts for UAS command and control via satellite ARTES 3 – 4 Dedicated to the development, • Integration and Trial of an Ad-hoc Products qualification, and demonstration Terrestrial Component into Global of products such as a piece of Satellite Communications Systems equipment, either of the platform • S-band Satellite Broadcasting Experi- or payload of a satellite, a user mentation Campaign through NICT terminal or a full telecom system ETS-VIII satellite integrating a network with its • Resource for Emergency Services to respective space segment. Access Command and control data using satellite and hybrid Technologies • Satellite Enhanced Network System for flexible bandwidth management ARTES 5 Focuses on research and develop- • Broadband Access over multi-spot Technology81 ment of new technologies and beam Ka-band satellites techniques in telecom satellites, • Satellite Interactive Multimedia Plat- ground and user equipment for form for Low-cost Earth stations future or evolving SatCom systems.

Table 11: ESA Programmes addressed to Networks and Platforms

81 ARTES 5 is composed of two sets of activities: • the “Competitive Work plan” activities or ARTES 5.1: activities are implemented on the basis of an annual work plan. This work plan is established based on the results of an annual Call for Ideas open to Participating States’ satellite in- dustries, satellite operators, service providers, universities and research centres, national space agencies and to ESA employees. • “Non-Competitive Industry Initiated” activities or ARTES 5.2: supports, through co-funding, the development of new technologies, techniques and system concepts in the area of satellite communication. Activities are identified and proposed by Industry through an Always Open Calls for Proposals, a mechanism allowing Industry to submit one or several proposals at any time. A proposal shall include a plan for completing the ARTES 5.2 activity in a follow-on development of a product.

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The ESA approach to the concept of a net- • Quality of Service (QoS): Application QoS work starts from a feasibility study (ARTES 1) must be supported providing guaranteed and its attention is towards the integration of bandwidth, delay, and meet a delay jit- SatCom and terrestrial technology. ESA then ter, packet loss, and availability require- proposes a work plan in order to implement ments; the network required for operational SatCom • Scalability: Network scalability should systems (ARTES 3 -4) and its current focus is support large numbers of users, e.g. a on S-Band, emergency services and efficient few million, and resources in proportion use of the spectrum. The attention towards to the number of users, application scal- technology (ARTES 5) is not only about satel- ability providing the necessary QoS lev- lite components but also concerns access els without performance degradation, i.e. techniques to the network. Future global 100,000 users with multimedia service network infrastructure should support the support and QoS level guarantees per following requirements: system; • Data rates: Applications such as video • Security: User authentication, privacy, streaming, media cast distributions, encryption, and end-to-end security must telemedicine, two-way telephonic educa- be supported; tion, require rates ranging from a few hundred megabits to several gigabits. • Multicast: In addition to uni-cast, IP mul- Broadband systems have approximately ticast service must be provided; 11-30 Mbps transmission speeds. The target speed for 4G cellular will be • Interoperability: Standard protocol inter- around 10-20 Mbps; operability must be provided at all levels with interface designs supporting homo- • Delay: Real-time applications require a geneity of terminals, networks, and user- maximum delay of 400 ms and packet to-user applications. transfer delays for other classes of service are even more stringent; ESA also plays a role in value-added services of a SatCom system as shown in table 12. Its • Mobility: new systems will require at role is to deploy applications through two least 2 Mbps for moving vehicles; types of measures: industry driven (ARTES 3- 4 and 5) and user driven (ARTES 20). The • Wide Coverage: Next-generation systems latter aims are to involve non-space sectors must use GSO systems to provide wide as users in order to increase the awareness coverage. Mobile satellite networks using of benefits coming from space-based tech- NGSO cover roaming and handover to nologies. The involved programmes are ARTE other systems; 3-4 and ARTES 5.

Programme Description Challenge ARTES 3 – 4 It offers an opportunity for Small and The IETN aims to support SMEs in the Medium sized Enterprises entering into development of services or applications the field of satellite communications emerging from the creative use of exist- with the Initiative for ESA Telecom ing satellite technology such as multi- Newcomers (IETN) for the early media, Internet, mobile applications, or stages of R&D services for the SatCom systems or technologies to support new, market. or improve existing, services. ARTES 5 It considers ground and user equip- The development of User Terminals has ment for future or evolving SatCom the aim of increasing bandwidth for DTH systems. applications, cost reductions in user terminal antennas, and innovative mechanisms for rapidly deployable antennas. ARTES 20 It is dedicated to the development and The goal is to provide innovative added pilot operations of Integrated Applica- value to services by combining different tions that combine different types of space assets, integrating with existing satellites, considering Health, Safety, terrestrial assets. Development, Energy, Transport.

Table 12: SatCom Value – Added Services - Industry Policy

ESPI Report 32 46 May 2011 SatCom Policy in Europe

At the level of national programmes, tele- use also comprises the dual procurement of communications are still an issue of national the system with the consequent right of use sovereignty particularly for military and de- by both of the entities. Some dual use con- fence purposes. In this sense, national space cepts comprehend also the commercial uses agencies have played a crucial role in support of downstream services. In the table 13, the of military SatCom programmes. This matter past and present programmes are presented presents some trend peculiarities, such as per country. The main initiatives have been dual use –civil and military applications – and led by France, Italy, Germany and United the cooperation of France and Italy. The dual Kingdom.

SatCom Pro- Present -Past Description Achievements gramme France SYRACUSE There have been three It also provides services SYstème de Radio generations of MilSatCom for UK Army, NATO Forces Communication since 1980. and Italy Army. Present -Past Utilisant un Satel- litE Athena Fidus It is a dual use system for It comprises cooperation civil and military require- with Italy also with a dual ments. It will work inside use profile. EHF- and Present Ka-Band and transmission technologies on standard DVB-RCS e DVB-S2. Italy SIRIO 1 and 2 SIRIO was a spin stabilized It was a cooperation of geostationary experimental ESA programme as communications satellite MARECS. Past with a nominal life of two years. ITALSAT 1 and 2 It was a body stabilized ITALSAT 2 also hosted experimental geostationary ESA's first European Mo- satellite which provided bile Services payload. pre-operational domestic Past Italian telecommunications services in the 20/30 GHz bands. SIGMa GEO Satellite with trans- It aims to fill the broad- ponders in Ku- and Ka- band gap for Italy. Bands. It will also provide a Present complementary service to Athena Fidus. Athena Fidus See above See above Present United Kingdom SkyNet 1-5 Skynet is a family of mili- It is a model of Private tary satellites, now oper- Financial Initiatives (PFI) ated by Paradigm Secure with commercial purposes. Communications on behalf of the UK Ministry of De- fence, which provide stra- Present -Past tegic communication services to the three branches of the British Armed Forces and to NATO forces engaged on coalition tasks.

ESPI Report 32 47 May 2011

SatCom Pro- Present -Past Description Achievements gramme Germany SATCOMBw The programme presents It is a dual use system two military communica- with commercial orienta- Present tions satellites for the tion. German Bundeswehr. Heinrich Hertz It is a Small-GEO satellite It intends to maintain a to include advanced Ka- national capability in the band broadcast technolo- sector and to help Ger- Present gies as part of a partner- man industry maintain its ship with a commercial telecommunications com- satellite operator. petitiveness

Table 13: National SatCom Programmes – Present and Past

In the table 14 it is clear the main strategic exceptional. In terms of national initiatives guidelines in the development of these sys- there are several projects enhancing broad- tems have been defence and security. They casting services, establishing TV-platforms, have been national initiatives in order to have developing techniques and algorithms for IP- independent space capacity and capability for TV, etc. Following, are some examples from national purposes. The case of cooperation France and Italy. between France and Italy for Athena Fidus is

Programme Description Challenge FRANCE Cospas- Initiated in 1982, it is an interna- The system comprises a satellite constel- Sarsat tional search-and-rescue programme lation, orbiting the Earth continuously for mobiles at sea, in the air and on with the task of listening for signals emit- land anywhere on the globe. ted by distress beacons. Telehealth Modern space technologies—satellite Its applications cover four key areas: pro- communications, Earth imaging and vision of care in remote regions, epidemic satellite positioning systems—enable monitoring (environment, climate and us to better measure, compare and health), crisis management, and education understand health-related parame- and training. ters. ITALY EMERSAT The project foresees as its primary Its aim is the enhancement of the satel- objective, the development, integra- lite’s role: interoperability between differ- tion and testing of satellite solutions ent networks, strength and "survival”, for applications and communications security of communications and access, services to national institutional back up and complementariness of solu- agencies dedicated to security and tions that optimizes the use of satellite emergency management. technology. TELESAL It proposes a technological architec- Its success can ensure the forecast insti- ture for operating and managing a tutional services of Telemedicine, espe- broad-band satellite communications cially in the two specific sectors of opera- system integrated and interoperable tions for emergencies and home care as- with ground communications net- sistance. works.

Table 14 National SatCom Programmes – Value Added Services

ESPI Report 32 48 May 2011 SatCom Policy in Europe

Industry with the current market players per 3.1.3 SatCom Industrial Policy: Achievements segment in table 15. These types of mechanisms from ESA, EU and Member States, have created a SatCom

Component of Industrial Seg- Players Typical EBIT Margin System ment (European Presence) [%] Space System Manufac- • EADS Astrium (FR, ES, DE, turers CZ, PL) • SSTL (UK) [EADS company] 2 – 8 % • Thales Alenia Space (IT, FR) • OHB (DE, IT) • INDRA (ES) Network & Satellite Opera- • Eutelsat (FR) Ground tors • SES – ASTRA (LX) Transponder • Hispasat (ES) leasing • Hisdesat (ES) 30 – 40 % • Hellasat (HE) • Paradigm (UK, DE) • Inmarsat (UK) Terminal Equip- • Thrane & Thrane (DK) ment Manufac- • CMS Electronics (AT) 5 – 10% turer • Cobham (UK) VAS & End- Services Provid- • Astrium Services (FR, ES, DE) Users ers • Telespazio (IT, FR, DE) • ND Satcom (DE) [SES Com- pany] minus – 15% • Deimos Space (ES) • Several SMEs for peculiar SatCom Applications

Table 15: SatCom Industry Players in Europe

In particular, there are two satellite opera- icy, it is envisaged to use as a measure the tors, Eutelsat and SES, with global relevance Intellectual Property Rights (IPRs) by Europe as they have big fleets of satellites and they from 1988 to 2009. The form of IPRs consid- compete directly with the other global satel- ered here is the Patent Label. It is a reason- lite operator, Intelsat. Eutelsat has 25 satel- able “proxy” because its requirements are lites in orbit and plans 5 more satellites. SES Industrial Applicability82, Novelty83 , and a has a fleet of 44 satellites on orbit and a plan Patentable subject matter84. The table 16 for 10 new satellites. The picture presents shows the number of Patent labels obtained some criticalities in the sector of “service per segment by European stakeholders. providers”. The established business model considers the sale relationship between satellite operators, selling space transponder usages, and service providers selling VAS for end-users, which requires customized solutions with consequently low economies of 82 The invention must be of practical use, or capable of scale. Thus the market risk is often trans- some kind of industrial application. ferred to service providers. Then, there are 83 It must show some new characteristic that is not known not numerous terminal manufactures in in the body of existing knowledge (referred to as prior art) Europe with a leading technology and related in its technical field. Inventive step (non-obviousness) must market power thus the price is not affordable show an inventive step that could not be deduced by a person with average knowledge of the technical field. for the mass market. On the other side it is 84The invention must fall within the scope of patentable an element affecting the performance of ser- subject matter as defined by national law. This varies from vices providers building the turn-key solu- one country to another. Many countries exclude from tions with outsourcing of satellite capacity patentability such subject matter as scientific theories, and terminal equipments. mathematical methods, plant or animal varieties, discover- ies of natural substances, methods for medical treatment In order to understand the “value-added” (as opposed to medical products), and any invention where prevention of its commercial exploitation is neces- produced by this framework of industry pol- sary to protect public order, good morals or public health.

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Components European Geographical Distribution Remarks Space The leading European Countries registered 2.856 patent labels in the sector from 1988 to 2009.

Network & The leading European Ground countries, together with DK and AT, are those Terminal where firms for Terminal Equipment Equipment are based. They achieved 2.300 patent labels between1988 - 2009.

VAS & End- The share of leading Users countries is lower than in other sectors. Here, also other European countries participate. 3.125 patent labels were reached in the sector in 1988 - 2009.

Table 16: SatCom Patent Labels in Europe per Industry Segment

In order to evaluate the significance of this PAT number of patents, some proxy of compara- i,EU tive performance should be considered, such PATTot,EU as the degree of European SatCom intensity PAT _ int ensity = PATi,World compared to worldwide industry, export sales of the sectors, and technical comparison. PATTot,World Various aspects make patents particularly • where PAT is the number of patents of useful as a proxy for technology and techno- i, EU sector (i) in Europe; logical developments. Patent statistics refer • where PAT is the total number of to the output of the research process under- Tot, EU patents in Europe; taken by firms and sectors. They provide • where PAT is the number of patent information on a large number of sectors and i, World of sector (i) in Europe; technologies and they permit good coverage • where PAT is the total number of of developments over time, which is particu- Tot, World patents in the World. larly interesting. As these data are available for a large number of countries, they also Values greater than 1 indicate that the sector enable calculation of the relative performance has a ‘patent’ specialization relative to the of the EU, or any other country or region with reference area, here the world. respect to the world. The index proposed is:

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PAT_ The red character in the table 17 indicates Field of Technology inten- that the sector is global in terms of patents. sity The telecommunication field is not EU- I - Electrical engineer- specific; the only sector dominated by the EU

ing is digital communication. SatCom is partially Electrical machinery, appa- included in the category of digital communi- 0.83 ratus, energy cations in terms of modulars, transmitters, power amplifiers. Some years ago there was Audio-visual technology 0.60 a huge international debate concerning Sat- Telecommunications 0.67 Com development and the contextual policy Digital communication 1.01 environment85. There have been several stud- Basic communication proc- ies comparing SatCom technologies from the 0.83 esses EU, USA and Japan in order to understand Computer technology 0.63 the impact of the policy context on techno- IT methods for manage- logical performance. These studies compare 0.48 ment European, US American and Japanese satellites in terms of implemented technology. The Semiconductors 0.46 table 18 presents an overview with the main II - Instruments technical “proxies” of satellites. Each proxy Optics 0.43 has been evaluated with a value of 1 as “the Measurement 1.15 best in class”, “2” as medium level and “3” as Analysis of biological ma- low level. 1.28 terials It is evident that EU SatCom performance is Control 1.00 not low even if it never achieves a “1” as the Medical technology 1.09 best in class. This “middle-position” allows III - Chemistry the EU SatCom industry to reach, as already Organic fine chemistry 1.67 indicated, a significant level of exports in terms of SatCom services and SatCom sys- Biotechnology 1.19 tems and turn-key solutions form spacecraft Pharmaceuticals 1.33 to network architecture, including satellite Macromolecular chemistry, 1.10 operations and transponder leasing. Concern- polymers ing with the index of PAT_intensity, SatCom Food chemistry 0.93 is more patent intensive in Europe than in the Basic materials chemistry 1.21 other regions, USA and Japan. The European PAT_intensity index is higher for the space- Materials, metallurgy 0.94 craft and its components and lower for Surface technology, coat- 0.87 ground elements and terminal devices. The ing European leadership, related with patent Micro-structural and nano- 0.93 intensity, is achieved but from performance technology point of view it is not really recognised by the Chemical engineering 1.32 technical literature. Environmental technology 1.04 When considering exports and domestic mar- IV - Mechanical engi- kets, it is interesting to note that the exports neering are almost solely composed of telecommuni- Handling 1.38 cations systems sales. All other systems pro- Machine tools 1.21 duced by European industry are sold only in Engines, pumps, turbines 1.34 Europe. Only half of telecommunications sys- Textile and paper ma- tems produced by European industry are 1.03 chines exported, the rest are sold on the European market86. The size of exports is around 23% Other special machines 1.20 of the current revenues coming from SatCom Thermal processes and 0.94 sales. With an overall turnover of € 2.5 billion apparatus made under unfavourable exchange rate con- Mechanical elements 1.48

Transport 85 1.46 Burton I. Edelson, Joseph N. Pelton, Satellite communi- V - Other fields cations systems and technology--Europe, Japan, Russia, Furniture, games 0.83 ndc, 1995; Gérard Maral, Michel Bousquet, Zhili Sun, Satellite Communications Systems: Systems, Techniques Other consumer goods 1.06 and Technology, 2002; Takashi Iida, Joseph N. Pelton, Civil engineering 1.22 Edward Ashford, Satellite communications in the 21st century: trends and technologies, American Institute of Table 17: European Patent Intensity per Sector Aeronautics and Astronautics, 2003, and http://www.wtec.org/loyola/satcom/toc.htm 86 Idem, p. 8

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Technical proxy EU Satellite USA Satellite Japan Satellite Spacecraft Antenna 2 3 1 Ground Antenna 3 2 1 Antenna Positioning 2 3 1 VSAT 3 2 1 Large Scale Antenna 2 3 1 Ultra Small Aperture Terminal 3 2 1 /Personal Communication On Board Processing 2 3 1 Inter-satellite Link 2 3 1 Power System 2 3 1 Optical Link 2 3 1 Ion Thrusters 2 3 1 Solid State Power Amplifiers 2 3 1 (SSPAs) Travelling Wave Tube 2 3 1 High Data Rate Communication 2 1 3 High Electron Mobility Transistor 2 3 1 Technology Device for SSPAs 3 2 1 Advanced system concept 2 3 1 Total Average life 2 3 1 PAT_ intensity EU Satellite USA Satellite Japan Satellite Spacecraft Antenna 1.21 1.08 0.61 Ground Antenna 0.97 0.90 1.14 Antenna Positioning 1.27 1.08 0.32 VSAT 0.85 1.51 0.44 Large Scale Antenna 0.80 0.59 0.50 Ultra Small Aperture Terminal /Personal Communication 0.70 1.23 1.14 On Board Processing 1.27 0.69 1.39 Inter-satellite Link 0.95 0.59 0.63 Power System 0.82 1.33 0.69 Optical Link 1.12 0.98 0.76 Ion Thrusters 0.80 0.72 0.88 Solid State Power Amplifiers (SSPAs) 0.57 0.54 0.63 Travelling Wave Tube 0.62 0.46 0.76 High Data Rate Communication 1.27 0.59 1.14 High Electron Mobility Transistor Technology 1.20 0.69 1.58 Device for SSPAs 0.95 0.54 0.57 Advanced system concept 1.52 0.51 0.69 Total Average life 1.35 0.74 0.95

Table 18: Technical Comparison of a “typical regional satellite” and PAT_intensity per proxy. (Source, ITRI, 2007 ; WIPO, 2011; OECD, 2011) ditions, the European Space industry demon- Exports are mainly to emerging countries; strates its competitiveness on the global the import-export ratio with the USA is still market. The successful cases of Europe ex- dominated by import flow. The SatCom sector port are mentioned by Euroconsult87 in the quota as a proportion of the overall telecom- picture 6. munication sector was, as picture 7 presents, around 13% in 2000, 15% in 2007 and 17, 4% in 200888.

87 Euroconsult, Nurturing the development of space technology: an international comparison, Industry Symposium of the Scientific and Technical Subcommittee of the OOSA, February 8, 2010 - United Nations Office, Vienna. [http://www.unoosa.org/pdf/pres/stsc2010/symp-01.pdf - 88 EUROSTAT, Note DS 0189- Statistics in Focus,

available at Nov. 2010 - ]. 03/2009.

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Picture 6: SatCom Cases of European Exports (Source: Euroconsult, 2010)

Picture 7: Extra EU-27 trade in telecommunication, sound and video equipment [€ Million] (Source: EUROSTAT, 2009)

• Ultra-fast broadband by 2020: 50% of European households should have sub- 3.2 The Case of Broadband: scriptions above 100Mbps. Development and Deploy- The task of providing “connectivity” for all Europe is also an element of Europe 2020 ment in Europe and the European Economic Recovery Plan. Thus, it is one of the priorities for the growth In 2010 the EC issued a Communication on of Europe. the Digital Agenda89with the aim of providing broadband for all European citizens with the following specific targets: 3.2.1 Definition of Broadband and Tech- nologies • Basic broadband for all by 2013: basic broadband coverage for 100% of EU citi- As there is no clear definition of broadband, zens; the meaning of the first target basic broadband is not clear. There exist different defini- • Fast broadband by 2020: broadband coverage at 30 Mbps or more for 100% tions of broadband in terms of capacity, of EU citizens; number of Kbitps, as adopted by the U.S. - FCC90, or in terms of the number of applications provided at the same time, as adopted by Canada91, or a connectivity able to provide

89 EC, Communication from the Commission to the Euro- 90 pean Parliament, the Council, the European Economic and FCC, Connecting America: National Broadband Plan, Social Committee and the Committee of the Regions, A 2010. Digital Agenda for Europe, Brussels, 19.05.2010, 91 Canadian Ministry of Economics, Broadband Canada: COM(2010) 245. connecting rural Canadians, 2009.

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a downstream access at 256 Kbitps and an quires a technology able to assure a high upstream at 128 Kbitps as the OECD92 has throughput of data in downlinks and in up- proposed, or, even, as a capacity over the links. This definition underlines the concept of primary rate of ISDN that is over 1,5 Mbitps “technological environment” thus the context in the USA and over 2Mbit/s in Europe as is complex and it has policy relevance. proposed by the ITU93. In a commercial Different technologies to provide broadband sense, broadband is connectivity at 256 exist. They can be classified as fixed broad- Kbitps. There is also a complex definition of band and as wireless. Each one requires a broadband as “a technological environment network infrastructure and related terminal that is able to use high level of advanced equipment in the hands of users. Some work digital communications and permitting a high in the same range of the spectrum where, by degree of interactivity”94. In this definition EU law, the neutrality principle has been es- the key word is the “interactivity” that re- tablished in terms of technology and service. ogy Max Usage Range Shared Capacity Capacity Technol- Spectrum Spectrum Limitation Advantage

Fixed Line ADSL Up to 1.1 No 12 Mbps @ 0.3 km 5.4 Km Uses existing Limited bandwidth MHz 8.4 Mbps @ 2.7 km POTS which is distance 6.3 Mbps @ 3.6 km sensitive, asym- 2 Mbps @ 4.8 km metric – order of 1.5 Mbps @ 5.4 km magnitude lower upstream rate Wireless 3G 1.92–1.98 Yes Up to 3 Mbps per Coverage area Mobile terminals Costly Spectrum WCDMA GHz mobile subscriber of host net- Ride on existing Limited Applica- CDMA200 2.11–2.17 work cellular infra- tions UMTS GHz structure HSDPA (licensed) HSUPA WiFi 2.4–5.7 GHz Yes 11.54 Mbps Up to 100 m Ethernet com- For LAN Applica- pliant Standard- tions only ized 802.11 Security issues a/b/g Unlicensed ISM Mass Consump- tion WiMAX 3.5 GHz Yes 2.8 to 11.3 Mbps LOS 10-6 km NLOS No large coverage DWLK per CPE NLOS 1-2 km of area 0.17 to 0.7 Mbps Indoor self- Required ground per UPLK per CPE install infrastructures for NLOS 0.3–0.5 deployment km Satellite L, S, C, Ku, Yes Up to 155 Mbps per Large cover- Large coverage Expensive to build Ka - Bands downlink age area of up Multicast appli- Limited capacity 1.5 ~ 3.5 to: cation per subscriber but 3.7 ~ 6.4 1.000 – Limited ground suitable for remote 11.7 ~ 12.7 36.000 Km infrastructures locations with low 17.3 ~ 17.8 Fast Deploy- number of users 20 ~ 30 GHz ment

Table 19: The Main Technologies for Broadband

92 OECD, The Development of Broadband Access in OECD Countries, 2001. 93 ITU, Communication from ITU-R and ITU-T: nr. 256-A1, 2003. 94 Fondazione Ugo Bordoni, Le reti di telecomunicazioni in Italia, 2001.

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For this reason, at present, there is not a There are several terrestrial wireless tech- dominant technology in the EU. Each Member nologies, such as 3G97, WCDMA98, CDMA State has its own particular historical reasons 20099, UMTS100, HSDPA101, HSUPA102 and Wi- for why it chose one technology over another. Fi103 and WiMAX104, and then there are satel- The table 19 shows the main broadband lite105 solutions that are wireless by definition. technologies. The technologies can be broadly classified into three categories, such as wired as in 97 International Mobile Telecommunications-2000 (IMT — ADSL95 with a cable support, terrestrial wire- 2000), better known as 3G or 3rd Generation, is a genera- less as in 3G, WCDMA, CDMA 200, UMTS, tion of standards for mobile phones and mobile telecommunications services fulfilling specifications by the Interna- HSDPA and HSUPA, and SatCom. Inside the tional Telecommunication Union. set of wired technologies, ADSL is currently 98 Wideband Code Division Multiple Access (WCDMA). the most widely-used broadband access 99 CDMA2000 (also known as IMT Multi-Carrier (IMT-MC)). 100 technology, used in a number of countries Universal Mobile Telecommunications System (UMTS). 101 since 2002. Its limitations are beginning to be HSDPA (High Speed Data Packet Access) technology employs more efficient coding than classic UMTS, and felt: the distance between the subscriber and currently delivers commercial speeds of 3.6 Mbps (peak the distribution frame is a problem, bitrates rate of 14 Mbps). Enjoying improved performance depends are asymmetrical and in some cases not high on the modulation and coding that adapts to the quality of enough, particularly if more and more multi- the transmission and reduces lag (2 ms). Available with media files are being sent over the network. Release 5 from 3GPP, HSPA is fully compatible with In using this technology there is a new issue WCDMA – so much so that the same wireless channel can support both types of user. This specification also brings concerning the burden on users due to the an evolution to the core network: IMS (IP Multimedia Ser- new standards for Reach extended ADSL vices). Release 5 offers an improvement only in down- (ReADSL)96. It should be pointed out that the stream speeds, with upstream speeds getting a boost compatibility of existing equipment will help thanks to HSUPA (High-Speed Uplink Packet Access) spur the implementation of the new stan- which is available with Release 6 of the 3GPP specification. dards. ReADSL, which was standardized in 102 HSPA (High Speed Packet Access) is an evolution of 2005, is a technology aimed at rollouts in WCDMA systems and is compatible with existing net- rural zones as it is dedicated to use on long works. It makes it possible to achieve speeds of 14 Mbps lines and can increase the signal transmission downstream over 5 MHz UMTS channels, with predictions distance by 20% compared to ADSL. ReADSL of reaching 42 Mbps when using MIMO (Multiple- Input Multiple-Output), starting in 2008/2009. operates on first generation ADSL but re- 103 Wi-Fi is a trademark of the Wi-Fi Alliance. A Wi-Fi en- quires users to be equipped with a dedicated abled device such as a personal computer, video game ReADSL modem. There are issues of bottle- console, smart phone or digital audio player can connect to necks in the last kilometre. They can limit the the Internet when within range of a wireless network con- speeds and services available on networks nected to the Internet. The coverage of one or more (inter- connected) access points — called hotspots — generally even if the backhaul capacity is sufficient. comprises an area the size of a few rooms but may be Here, the crucial issue for the policy maker expanded to cover many square miles, depending on the deciding to implement a full coverage is that number of access points with overlapping coverage. the marginal cost of extending a backbone 104 Some BWA (Broadband Wireless Access) systems are connection to an additional community could based on wireless local loop technologies that have been be much lower than the benefit it could po- equipped with mobile capabilities. This category also includes proprietary technologies that have not received tentially provide. In addition, the “benefit” widespread industry support. Alternative broadband ac- has to be accurately evaluated not only in cess technologies (fixed and mobile WiMAX, Flash-OFDM terms of economics but also according to the and Wi-Fi to a lesser extent) also provide a complement to social dimension, for instance the size of in- cellular technologies, particularly since they make it possi- clusive growth that can be achieved as indi- ble to alter the width of the frequency band used, in addition to delivering high bitrates. cated by Europe 2020. Thus, governments It is a WLAN, or wireless local access network, technology. must also take great care not to displace In addition to the initial applications that can be based on private investment and letting the market Wi-Fi, such as wireless private networks and inter site play its role as an efficient “allocator” of re- connections, the technology can be employed for applica- sources and an optimal consumer surplus. tions such as public hotspots and as a local loop access solution. Initiated by the WiMAX Forum in 2003, WiMAX, or Worldwide Interoperability for Microwave Access, is a wireless MAN (Metropolitan Area Network) technology. Like other broadband access technologies, both wire line and wireless, WiMAX can be used in different configura- 95 Asymmetric Digital Subscriber Line. tions, the main ones being providing internet access to 96 In 2002, the ITU approved two new standards to remedy businesses and residential users in outlying regions, and these problems: ADSL2 and ADSL2+, compatible with as a backhaul solution for Wi-Fi or even cellular networks. existing ADSL equipment. Based on higher frequencies 105 Satellite broadband solutions using Ka-band are start- than ADSL (1.1 MHz for ADSL2 and 2.2 MHz for ADSL2+), ing to be deployed by providers, and the future is promis- these standards enable much higher speeds: up to 10 ing in terms of performance, as bit-rates between 10 and Mbps for ADSL2 and up to 20 Mbps and even 25 Mbps for 20 Mbps are expected. Ka-band technology reduces the ADSL2+ provided the subscriber is less than 2.5 km from required dish size, resulting in a lower equipment cost to the exchange. consumers. It employs “spot beams”, rather than regional

ESPI Report 32 55 May 2011

Wireless networks are often relatively less television signals. Long-range terrestrial expensive to install and even to deploy for wireless connections will also continue to be the case of SatCom than wire-based net- an important backhaul technology for certain works and now offer speeds comparable to rural and remote areas. Considering this, average wired-broadband connections. Wire- policy makers should examine spectrum allo- less broadband will likely be the right choice cations to see if there are ways to open up in some rural and most remote areas where certain frequency bands which have efficient installing wired infrastructure is too difficult signal propagation characteristics for broad- or too expensive. Wireless networks may band use. This implies an appropriate policy allow for faster installation than wired infra- for spectrum management. There will be structure, assuming the rights for existing incremental advancements in the amount of towers have been negotiated or new towers data which can be transmitted over a finite have been constructed and spectrum is avail- amount of spectrum but new high-speed able. Wireless connections may be attractive networks will need large amounts of spec- to end-users as well because the connections trum in which to operate. Ka-Band uses for offer mobility which is not possible with a SatCom broadband are going to be estab- fixed broadband connection. However, wire- lished. The drawbacks of SatCom solutions less connections are often more expensive consist of latency of the transmission, the and may be subject to download constraints shared technologies, limited bandwidth per that are much lower than fixed networks. The users compared with fixed technologies and key drawback with wireless investment is the the requirement of a long development proc- limited capacity of wireless technologies. The ess without an exit strategy. This last point speed of any wireless network technology is a requires a strong ex-ante effort, such as a function of the amount of spectrum available, specific and consistent policy action, because the number of users sharing the bandwidth, it implies deciding on the SatCom capacity at and other physical characteristics such as mission design stage. Thus, policymakers interference. Presently, technological devel- should know if the system will be able to opment and industrial policy focus on how to satisfy user requirements during the satellite provide similar speeds of wireless technolo- life, around 15 years, avoiding being crowded gies compared to the advanced wired net- out by other technologies. works. Wireless connections are also by their nature a shared technology. The capacity in a cell is shared among all users in a given area 3.2.2 Broadband Technologies Adopted in the so the capacity of all users decreases when EU another user connects to the network in the This section presents an overview of tech- same area. To be a shared technology is not nologies that are in use in the EU in terms of a big issue for remote areas where demo- three categories of technology and also the graphic density is not high, it may affect met- SatCom capacity in orbit or already planned ropolitan areas but there fixed broadband to be launched. Knowledge of broadband solutions are easily affordable. Wireless con- availability is therefore a precondition in in- nections will still need good backhaul connec- 106 forming policies aimed at maximizing the tions in order to offer high broadband availability of services and the opportunities speeds to users. Public investment in back- they present for economic and social devel- haul networks reaching out into rural areas opment. The ideal situation would be having can provide the needed capacity to support full, 100%, residential and business broad- new wireless broadband access networks. band coverage, thus enabling each segment Within wireless technologies, satellite connec- of society to profit from the possibility of tions will continue to play a key role in pro- broadband access. Thus, a map is essential viding broadband to remote areas out of eco- to understand the current status of the EU nomic reach by traditional wired networks. and identify the dimension of the digital di- Satellite also is among the most efficient vide through lack of infrastructure. Compar- methods for delivering high-definition linear ing data on broadband coverage across countries still faces some challenges because of the use of different metrics. Coverage data or hemispheric transponder coverage, allowing for a more efficient use of bandwidth. are important to policy makers in that they 106 In a hierarchical telecommunication network the back- indicate the extent to which businesses and haul portion of the network comprises the intermediate residential customers have access to broad- links between the core network, or backbone, of the net- band, i.e. to what extent the population and work and the small sub networks at the "edge" of the entire businesses are able to subscribe to broad- hierarchical network. For example, while cell phones communicating with a single cell tower constitute a local band if they wish, regardless of price, usage sub network, the connection between the cell tower and or speed constraints. It is important to rec- the rest of the world begins with a backhaul link to the core ognise that the data show availability and/or of the telephone company's network (via a point of pres- coverage/physical coverage. It is desirable to ence).

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have data showing presence of each technol- of broadband services (number of subscrib- ogy in terms of density, such as availability ers), but not the only factor. The only factor per square-kilometre of territory. There is not that could bias the household indicator, in a clear common view on the issue for several relation to the population indicator, is the fact reasons. For instance, the data are provided that households might have, on average, a by local operators who have no incentive to higher or lower people-to-household ratio, monitor the real situation. Common data are which would result in a different population presented in terms of percentage of served proportion. This could well happen in under- population, or as the number of households served areas, which are quite likely to be or as the number of subscriptions. These rural, where demographic characteristics of a methodologies require some caveats. household might vary in relation to the average, urban, served household. In general, There is no uniform database for ADSL; its therefore, in urban areas the population and coverage might be measured in terms of household indicator are likely to be more household availability, population coverage, comparable than in rural areas. Then, the or by the percentage of telephone lines that number of subscriptions can help to under- may deliver services. Broadband coverage is, stand which technology has been more of course, not the only factor that needs to adopted but it is not useful in understanding be considered in order to assess potential the dimension of the digital divide, or where digital divides. It is, however, a necessary the technology is not available at all for lack indicator in determining whether some seg- of signal, or as a simple choice of users. ments of the population are unable to participate in economic and social activities that The table 20 presents the broadband pres- require high speed Internet access. Other ence in terms of the percentage of population indicators surrounding factors such as price, per each Member State and the presence of speed or usage are complementary in assess- the technology in terms of the number of ing the true availability of service. Availability subscriptions per 100 inhabitants. of broadband clearly is a factor in the take-up

Broad- Terres- band Satel- trial Country ADSL* 3G* Cable§ Fibre§ pene- lite§ Wire- tration* less§ Austria 22.70% 94% 84% 6.9 0.1 0.01 17.6 Belgium 29.10% 100% 89.90% 13.2 0.01 75.6 Bulgaria 13.00% 85% 50.00% Cyprus 22.20% 96% 85.00% Czech Republic 19.10% 92% 89.90% 4.5 1.5 0.00 10.1 Croatia Denmark 37.80% 99% 97.00% 10 4.4 72.8 Estonia 24.80% 94% 62.00% Finland 29.40% 96% 80% 4.3 0.3 48.3 France 30.30% 99% 73% 1,6 0.2 47.3 Germany 30.40% 95% 80.00% 3.2 0.1 0.05 47.4 Greece 17.00% 91% 88% Hungary 18.70% 91% 56% 8.7 1.8 46.6 Iceland 93% 63% 2.8 0.02 44.4 Ireland 24.80% 90% 89% 3.9 0.1 0.01 43.2 Italy 20.60% 96% 92% 0.5 0.03 42.0 Latvia 19.30% 89% 48% Lithuania 18.90% 89% 59% Luxemburg 32.10% 100% 90% 5.8 0.2 34.3 Malta 26.80% 99% 100% Netherlands 37.70% 99% 90% 14.8 0.9 30.0 Norway 33.50% 90% 87% 9.2 4.8 30.0 Poland 13.50% 64% 19% 4.0 0.2 28.9 Portugal 18.60% 96% 60% 7.6 0.7 23.6 Romania 13.00% 74% 30%

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Broad- Terres- band Satel- trial Country ADSL* 3G* Cable§ Fibre§ pene- lite§ Wire- tration* less§ Slovak Republic 14.80% 78% 62% 1.6 3.4 0.005 22.1 Slovenia 22.90% 93% Spain 21.50% 93% 80% 4.1 0.1 0.025 21.3 Sweden 31.50% 98% 94% 6.4 7.8 7.5 Switzerland 98% 91% 10.4 0.4 0.038 6.9 United Kingdom 29.80% 100% 90% 6.4 0.1 1.2 (*): % of population | (§): Number of subscriptions per 100 inhabitants

Table 20: The presence of broadband in Europe (Source: EU DG INFSO, Europe’s Digital Competitiveness Report 2010, 2010. – OECD, Broadband statistics, 2010)

This picture is going to change soon as many is a key component of many national plans. governments are considering infrastructure The table 21 shows the main national initia- investments as a way to counter the cyclical tives for deployment of broadband in various nature of the current economic downturn. Member States. Broadband network investment, in particular,

Entity Fund Dimension Policy Initiative EU 1.2 Billion € Digital Agenda Belgium Super Fast Belgium Bulgaria National Program for Development of Broadband Czech Republic National Broadband Access Policy Denmark From hardware to content Estonia Estonian Electronic Communications Act Finland 200 Million € National Plan France > 2 Billion € France Numérique 2012 Germany > 2 Billion € Breitbandstrategie der Bundesreigierung Greece 2 Billion € Greek Digital Strategy Ireland 223 Million € National Broadband Scheme Italy 1.5 Billion € e-Government 2012 Lithuania Rural Area Information Network (RAIN) Netherlands Nederland BreedbandLand Portugal 1.1 Billion Next-generation broadband networks Spain 110 Million € Avanza Infraestructuras Slovenia Strategy for Development of Broadband Networks UK 230 Million € Digital Britain Sweden 1 Billion € National Plan

Table 21: The main national broadband policy initiatives in Europe

In order to better see the potential for coor- of the major advantages of satellite over dination with space programmes, the next terrestrial technology, both wire line and table shows policy initiatives in the fields of wireless, is undoubtedly its coverage capabili- space and telecommunication. Some national ties. Available across the globe, in some in- programmes do not explicitly consider Sat- stances it is the only connectivity solution Com solutions while in others SatCom could possible. It does, however, fall short of the be included to reach the ambitious target of most widely available solutions when it 100% coverage for broadband provision. One comes to connection speed.

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ESA Pro- SatCom State National Programmes EU ESA grammes Player Status Status Status Status

Austria 9 9 4.4 M€ (10,8%) Belgium 9 9 6 M€ (4%) SuperFast Belgium (TLC) National Programme for Development Bulgaria 9 8 of Broadband (TLC) Cyprus 9 9 Czech Re- 9 9 0.9 M€ (11,1%) National Broadband Access Policy (TLC) public Denmark 9 9 2 M€ (6,9%) From hardware to content (TLC) Estonian Electronic Communications Estonia 9 ~ Act (TLC) Finland 9 9 2 M€ (8,3%) National Plan (TLC) Athena Fidus (Defence) France 9 9 45 M€ (6,6%) Syracuse (Defence) Eutelsat France numérique 2012 (TLC) Heinrich Hertz (Space) COMSATBw-2 (Defence) (Space) Germany 9 9 51 M€ (8,6%) Satcom BW Breitbandstrategie der Bundes- reigierung (TLC) Greece 9 9 0.1 M€ (1,3%) Greek Digital Strategy (TLC) Hellasat Hungary 9 ~ Ireland 9 9 0.7 M€ (5,1%) National Broadband Scheme (TLC) SIGMa Athena Fidus (Defence) Italy 9 9 13 M€ (3,2%) Syracuse (Defence) Telespazio SICRAL (Defence) Piano e-Government 2012 (TLC) Latvia 9 ~ ~ Rural Area Information Technology - Lithuania 9 RAIN- (TLC) Luxembourg 9 9 15.4 M€ (54%) Lux LAUNCH SES Global Malta 9 8 Netherland 9 9 3 M€ (2,6%) Nederland BreedbandLand (TLC) Norway 8 9 6 M€ (10,7%) Telenor Poland 9 ~ Next-generation broadband networks Portugal 9 9 2.2 M€ (14%) (TLC) Romania 9 9 National Space Programme Slovakia 9 8 Strategy for Development of Broad- Slovenia 9 ~ band Networks (TLC) XTAR (Defence) Hispasat, Spain 9 9 22 M€ (11,8%) Avanza Infraestructuras (TLC) Hisdesat Sweden 9 9 5 M€ (8,9%) National Plan (TLC) 8 9 7 M€ (6,6%) Switzerland United King- SkyNet 5 Inmarsat, 9 9 58 M€ (28%) dom Digital Britain (TLC) Paradigm Key-Reading: 9 Member States; ~ Cooperating States; 8 No Status - TLC: Telecommunication Sec- tor; (Percentage of national budget for ESA programmes for telecommunication)

Table 22: SatCom Initiatives in Europe

In addition to this, the contribution of Sat- Europe. That is the rational adopted for the Com that are already available or are in the table 23 including all SatCom in the Ka-band early planning stages by satellite operators as the most promising band for SatCom has to be considered. SatCom can provide technologies. The cells indicated in grey pre- connectivity over large areas, thus Europe sents Ka-band without European coverage. can be served by operators located outside of

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Fre- Location Manufac- Orbital Coverage Operator SatCom quency HQ turer Position areas band Telesat Canada Anik F2 Boeing SS 111.1° W Ka North America HNS USA SpaceWay 3 Boeing SS 95° W Ka North America HNS USA Jupiter SS Loral TBD Ka North America ViaSat USA WildBlue 1 SS Loral 109.2° W Ka North America ViaSat USA ViaSat1 SS Loral 115° W Ka North America Thaicom Thailand iPSTAR SS Loral 119.5° E Ku & Ka Asia Oceania Avanti UK Hylas 1 EADS 33.5° W Ku & Ka Europe EMENA Avanti UK Hylas 2 OSC TBD Ka South Africa Eutelsat France KA-SAT EADS 13° E Ka Europe Eutelsat France Hotbird 6 TAS 26° E Ka EMENA Eutelsat France W3A EADS 7°E Ka EMEA Al Yah UAE Yahsat 1B EADS/TAS 52.5° E Ka MENA, Asia SatCom SES Luxembourg AMC 16 LM 85° E Ka Americas SES Luxembourg AMC 15 LM 105° W Ka Americas SES Luxembourg Astra 1H Boeing SS 19.2° E Ka Europe SES Luxembourg Astra 1L LM 19.2° E Ka Europe SES Luxembourg NSS 6 LM 95° E Ka EMEA Intelsat USA Galaxy 28 SS Loral 89° W Ka Americas Venesat Venezuela Venesat 1 CGWIC 82.7° W Ka Latin America Spacecom Israel AMOS 3 IAI 4° W Ka EMEA Hispasat Spain Hispasat SS Loral 30° W Ka EMEA Arabsat Saudi Arabia BADR 5A EADS/TAS 26°E Ka EMEA Nilesat Egypt Nilesat 201 TAS 7° W Ka EMEA Measat Malaysia Aricasat 1 46° E Ka EMEA South Europe Nigcomsat Nigeria Nigcomsat 1 CGWIC 46° E Ka Africa Antrix India GSAT 11 n. a. n. a. Ku & KA India JSat Japan Superbird B2 Boeing SS 162° W Ka Asia KT Corp. South Korea Koreasat 3 LM 116° W Ka Asia Kt Corp. South Korea Koreasat TAS 113° W Ka Asia

Table 23: Planned Ka-Band SatCom Capacity by Satellite Operators

It is evident that the EMEA region is going to ies demonstrating that investment in broad- be a competitive environment, thus European band also enhances the economy in terms of operators are not alone in serving this mar- growth of GDP, increasing the rate of job ket. In addition, Africa has not adopted stan- growth and saving costs and inefficiency. dards for some terrestrial wireless technolo- Broadband networks are increasingly being gies. Thus the market for SatCom is growing recognised as fundamental for economic and thanks to the lower competition of terrestrial social development. They serve as a commu- wireless technologies. nication and transaction platform for the entire economy and can improve productivity across all sectors. Advanced communication 3.2.3 Broadband Development: Evaluation Crite- networks are a key component of innovative ria ecosystems and support economic growth. All policies for broadband development and Broadband networks also increase the impact deployment have the duty of making a sub- and efficiency of public and private invest- stantial contribution to the growth of Member ments that depend on high-speed communi- States and of the EU as a whole in terms of cations. Broadband is needed as a comple- social inclusion, sustainable development and mentary investment to other infrastructure smart growth. Thus, it is necessary to choose such as buildings, roads, transportation sys- the right technology to achieve these three tems, health and electricity grids, allowing principles. There has been a huge amount of them to be “smart” and save energy, assist scientific literature since the seminal work of the aging, improve safety and adapt to new Haavelmo that demonstrated that investment ideas. in infrastructure increases the level of GDP. The following presents a method to help poli- There have also been several empirical stud- cymakers evaluate the best solution that can

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implement and reach the targets of the EU technologies, as fixed communication tech- Digital Agenda. This policy requires two types nologies including the wired ones, terrestrial of intervention: extending the current net- wireless technologies and SatCom. Then the work that is sufficient in terms of capacity for dimension of the investment in terms of nec- providing basic broadband by 2013 but not essary economic resources is considered in available in some areas and upgrading the order to satisfy the system requirements like existing network and/or implement a new the backhauling as operations transport data one to reach the capacity targets level estab- from the node point to the destination and go lished by the Digital Agenda by 2020. Policy back, the last mile or last kilometre as the makers considering broadband investments final leg of delivering connectivity from a need to balance any investment in last- communications provider to a user, the ca- kilometre networks with similar investment in pacity to serve a number of people at a time, backhaul networks107 servicing targeted areas. and the last the coverage of the infrastruc- In other countries and regions there is still a ture over the land-country. A qualitative significant number of people who cannot sub- evaluation in terms of high, medium and low scribe to broadband. Investments targeting amount of necessary resources and policy these areas will likely focus on extending actions is given to these variables. The backhaul connections closer to users and evaluation is independent from the question installing new last-kilometre networks. Last- of who will support the required investment, kilometre upgrades in rural and remote areas such as government, commercial operator or are typically more expensive than similar end-users. It is evaluated in terms of the upgrades in urban areas. action required to extend or upgrade the network for the types of technology involved. Here, two matrixes are proposed, one for the At the current stage, it is relevant to note basic broadband by 2013 and another one for that SatCom with the European satellite ca- the advanced broadband as fast and ultra- pacity already in orbit can easily provide the fast broadband by 2020. In particular, the basic broadband where no alternative net- two tables can help to take the decision re- work exists and where terrestrial networks lated with the present digital divide implying are not economically affordable. The table 24 lack of infrastructures due to geographical presents the matrix for basic broadband by and demographic reasons where terrestrial 2013. network is not available and it shall not be economically achievable and sustainable. Each matrix identifies the three groups of

Technological Terrestrial Variable Fixed SatCom Action Wireless

Investment High Medium Low

Backhaul High High Low Extending Network for basic broadband Network sys- Last - Km High Medium Low tem require- by 2013 Number of Peo- ments High Medium Low ple served

Land Coverage High High Low

Table 24: Matrix of Technology Actions and technologies for basic broadband by 2013

It is evident the prompt and efficient role of SatCom in comparison with the other terrestrial technologies for delivering the basic broadband in Europe in time by 2013 as the Digital Agenda has established.

107 Backhauling is the transport of traffic from a cellular network to a core network where voice and data switching takes place. This transport of traffic can be over various transport mediums such as copper, fibre, microwave, or satellite.

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Technological Terrestrial Variable Fixed SatCom Action Wireless

Investment High Medium High

Upgrading Net- Backhaul High High Low work - Higher Capacity - Last - Km High Medium Low for fast and ultra- Network system fast broadband by requirements Number of 2020 High Medium Low People served

Land Coverage High Medium Low

Table 25 Matrix of Technology Actions and technologies for advanced broadband by 2020

As shown in the table 25 the main challenge sector about whether wireless connections of SatCom is in the upgrading action because should be considered substitutes for wired its capacity is fixed from the beginning of its broadband in the longer term. Clearly, wire- development. The development of a SatCom less connections can provide basic broadband system does not have any exit-strategy; the connectivity capable of supporting most of initial choice to start a SatCom mission has to the current available applications over wired be thoroughly evaluated to avoid wasting connections. resources and effort. This is one of the rea- Government investment in broadband net- sonable motivations to have a specific Euro- works will likely include a mixture of extend- pean space policy line for SatCom. In addi- ing access to un-served/underserved areas tion, the choice for broadband has to be sus- and upgrading infrastructure in areas which tainable for Europe, where the dimensions of already have connectivity. There are a num- the metropolitan areas with already terres- ber of technological choices which each have trial infrastructures for broadband are chang- benefits and drawbacks for government in- ing year by year due to population growth. If vestment. When policy makers focus on con- the advanced broadband is delivered only by nectivity there are different variables to take terrestrial technologies even a continuous into account such as the number of impacted extension of the network has to be deployed. users, the marginal improvements users will Nevertheless the upgrading through other receive, the capacity of the network, longev- technologies also involves other issues such ity and upgradability of the system and the as the compatibility of the end-user equip- strategic value of the projects under consid- ment with the new system that eventually eration. has new standards. Different network investments affect different Currently, the fixed technology has been numbers of end users. Governments should largely adopted so it does not exist mainly in consider the number of users who will benefit remote locations thus the extension of the from any network investment in order to network is high costly. The cost should be perform a valid cost/benefit analysis. In the lower with terrestrial wireless; however, it case of the Digital Agenda, the aim of social requires some ground infrastructure, such as inclusion is to not exclude anyone. Delivering radio bridges. This often includes a satellite low-speed broadband to an area previously backhaul connection through Very Small Ap- without connectivity will likely have a differ- erture Terminals, usually coupled with wire- ent impact than upgrading network capacity less technologies such as Wi-Fi. This combi- for existing users at 10 Mbitps to 100 Mbitps. nation allows access to telecommunication The impacts of network investment on pro- and data services even to more remote ar- ductivity in the economy will be tied to the eas, albeit with limited and expensive band- practical lifespan of the constructed net- width. The backhauling action by satellite is works. Investments in networks with long affordable with low effort as the footprint is predicted life spans will produce higher ag- usually bigger than a country’s territory. This gregate impacts on GDP and growth than peculiarity permits extending the network in investment in networks which may need to a better cost-effective way. On the other be upgraded or rebuilt after only a few years. side, the drawbacks of transmission delay, At some point all networks need to be up- and to be a shared technology can be im- graded to allow for higher capacity transmis- proved by new R&D effort. It is important to sions. SatCom as a physical network offers a note that there is extensive debate in the

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nearly limitless upgrade path while others SatCom for broadband can be the right en- may not be able to accommodate higher abler to deliver millennium goals also to speeds without new, significant investment in European neighbours, such as Africa and the the network infrastructure itself. On the other Middle East in a very cost-effective way be- hand, it permits having a uniform quality of cause the services are provided with the services over the covered area and it also same investment required for EU Broadband. enables last countries to be on-line in this In addition, the EU should be autonomous context. Policy makers should also consider not as a stand-alone actor but with other non-budgetary measures that foster the use States depending on it. of SatCom and improve economic efficiency.

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4. Conclusions

SatCom is one of the technologies that de- inefficiency and consequently inflationary liver telecommunication. Its particular pressures are partially avoided. Implement- strength in cost-effectively providing commu- ing the dialogue in an integrated way also nication over large areas of coverage and its helps in reducing the time and costs required easy deployment for end user solutions make for adoption of policy initiatives. The integra- the sector of special interest in the present tion is also envisaged between the EU and era of globalization feeding the phenomenon ESA whose geo-asymmetry permits including of convergence. This external factor is a chal- more States than if they work as stand-alone lenge for the success of SatCom in Europe actors. and from Europe to the rest of the world. The importance of the Digital Agenda is a Europe has made significant achievements in challenging opportunity to start new dia- the sector in terms of technology, regulatory logues among European stakeholders, as frameworks and market share. At the same both public and private players. This process time, new efforts are required to enhance will bring benefits in several areas, such as a these achievements and to address new chal- more equitable international and European lenges in a strategic way. The main challenge communication regulatory framework, an comes the Millennium Development Goals, industrial policy that enhances the competi- coming from the UN Summit on the Millen- tiveness of the EU, a market more satisfying nium Development Goals concluded in Sep- for consumers, a space policy more inte- tember 2010 with the adoption of a global grated to deliver economic, societal and stra- action plan to achieve the 8 anti-poverty tegic aims. All these issues need of a set of goals by their 2015 target date, and the an- policy recommendations that are considered nouncement of major new commitments for in the following section. women's and children's health and other ini- In conclusion, the objective for the EU should tiatives against poverty, hunger and disease. be an integrated vision for SatCom that Europe has already started dialogues on the would deliver the Digital Agenda as a key- eight goals that, in a broader sense, establish space component with an appropriate space the concept of smart, sustainable and inclu- policy that, on its side, feeds the concept of sive growth. Of particular relevance is goal European growth and competitiveness in number 8 - Develop a global partnership for order to enhance the European role of global development and sub-target 8F that suggests actor. A coherent and appropriate SatCom establishing partnerships making available system for broadband, delivering services as the benefits of new technologies, especially one of the Millennium Goals for the EU and information and communications. Here, the for Africa, is an opportunity to give substance role of the EU should be to provide broad- to the fundamental principle of international band in a sustainable way for and with Africa. space law that the exploration and use of It means sustaining partnerships with local outer space shall be carried out for the bene- actors and stakeholders using existing ca- fit of all countries. It is a reason to revisit the pacities and transferring the necessary com- seminal idea of the Wideband European Sat- petences that are lacking locally. ellite Telecommunications (WEST) pro- To achieve this “goal” it is opportune to note gramme 108 that offered an interactive wide- the contribution that SatCom can make to the band communications network that would EU Digital Agenda for the EU itself and, using have been initially used by one or more Ka- the same effort in terms of infrastructure, for band geostationary satellites that cover EU goals for its neighbours, Africa and the Europe and neighbouring regions. Middle East. This involves a set of considerations from the industrial and regulatory points of view. It is crucial to enhance the synergies, at least, between the traditional or, better, terrestrial telecommunication sector and SatCom through an integrated industrial policy as proposed by the EC in 2010. The integrated approach permits reducing 108 ESA; Annual Report, 1998; UNOOSA General Assem- bly, A/AC.105/729/Add.1, 8 January 2000.

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5. Policy Recommendations

The EU has the duty to pursue the Lisbon Agenda. Accordingly, the policy recommenda- Strategy, reviewed by Europe 2020, estab- tions are addressed in the table 26 to EU lishing smart, sustainable and inclusive institutions such as the Council, Commission growth. There is a set of policy initiatives in and Parliament, ESA and Member States. this context, and one of them is the Digital

Action by Policy Recommendations EU Council • Establish a Space Policy which uses SatCom as a cross-sectional technology satisfying the needs of different policies (e.g. defence, energy, disaster management, maritime, air transport, etc) in order to reduce the inefficiency and to maximize the benefit that can be shared in the implementation of the EU 2020 policies • Establish a Space Policy with a coherent vision of International relations, such as with Africa, to provide services supporting the delivery of the Millennium Development Goals, share technological achievements with Japan and USA and coordinate market position with neighbour Russia • Address the dual-use of SatCom including by sharing participation between the EU and national defence SatCom programmes • Address the model of Private-Public-Partnership (PPP) in order to save costs and effort in achieving the same goals and creating opportunities for tax revenue EU Commission • Establish a monitoring platform to understand the conflicts and comple- mentarities between terrestrial and SatCom technologies in terms of economic, societal and strategic outcomes; • Establish a mutual learning platform in order to implement SatCom as a cross-sectional technology satisfying the needs of different fields, e.g. defence, energy, disaster management, maritime, air transport, etc • Coordinate the vision of FP7 ICT and FP7 Space and the next FP8 in order to gain economies of scale and of scope of all SatCom systems • Evaluate as a positive discrimination the vertical model of SatCom industry mainly between satellite operators and service providers and not just between SatCom manufactures and service providers in order to spread profit along the entire supply chain • Establish a common indicator at EU level to sense actual current and future needs of broadband services and assess the capacity of SatCom to respond to EU Digital Agenda on a level playing field with other technologies EU Parliament • Revisit the principle of technology and services neutrality in a way which takes into consideration the particularity of SatCom technologies in the field of ICT • Revisit the principle of efficient use and equitable access to the spectrum for SatCom considering its advantages in reaching remote areas with low demographic density • Establish the right of e-citizenship with the concept of the technological environment guaranteeing full interactivity between citizens and government (public administrations)

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Action by Policy Recommendations ESA • Enhance the “integrated industrial policy” approach for EU Competitive- ness not only for the EU but also in terms of better coordination between the ESA, EU and national initiatives; • Establish coordination measures between EU FP7 programmes and ESA (ARTES 20) Integrated Applications • Enhance the concept of Integrated Applications for exploiting user needs in the field of SatCom • Coordinate with EC and Member States a SatCom system providing advanced value-added services to achieve convergence needs • Enhance R&D efforts for a winning technology of Ka-band SatCom in terms of satellite payloads and terminal devices Member States • Evaluate a position, harmonized in European sense, towards CEPT and ITU for the orbital positions and an environment free of interference • Propose a platform in order to implement coordinated national space initiatives as much as possible with ESA programmes also with an integrated vision using FP7, for instance national initiatives such as contributory elements of ESA programmes in line with the strategic mission of FP7 • Create, or make more consistent use of, fiscal and financial mechanisms (e.g. Structural funds) for encouraging the use of SatCom for citizens located in disadvantaged areas in order to achieve the EU Digital Agenda objectives • Support the implementation of PPP in order to coordinate private investment and public expenditure

Table 26: Policy recommendations by policymaker

These recommendations are directed towards versa. The weight of the interaction is evalu- individual actors: the EU Council, EC, EU Par- ated in an ex facto not de jure way as the liament, ESA and Member States but can also current legal framework of Lisbon Treaty be seen in terms of relationships among them establishes. as in the table 27. There are some policies that affect ESA and/or Member States or vice

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Action by Interaction with ESA Interaction with Member States EU • Enhance the “integrated industrial • Establish a monitoring platform to Commis- policy” approach for EU Competitive- understand the conflicts and com- sion ness not only for the EU but also in plementarities between terrestrial terms of better coordination between and SatCom technologies in terms of the ESA, EU and national initiatives; economic, societal and strategic out- • Establish coordination measures becomes; tween EU FP7programme and ESA • Establish a mutual learning platform (ARTES 20) Integrated Applications in order to implement SatCom as a • Enhance the concept of Integrated cross-sectional technology satisfying Applications for exploiting user needs the needs of different fields, e.g. de- in the field of SatCom fence, energy, disaster management, • Coordinate with EC and Member maritime, air transport, etc States a SatCom system providing • Coordinate the vision of FP7 ICT and advanced value-added services to FP7 Space and the next FP8 in order achieve convergence needs to gain economies of scale and of • Enhance R&D efforts for a winning scope of all SatCom systems technology of Ka-band SatCom in • Coordinate with Member States a terms of satellite payloads and ter- SatCom system providing advanced minal devices value-added services to achieve convergence needs • Evaluate as a positive discrimination the vertical model of SatCom industry mainly between satellite operators and service providers and not just between SatCom manufactures and service providers in order to spread profit along the entire supply chain • Establish a common indicator at EU level to sense actual current and future needs of broadband services and assess the capacity of SatCom to respond to EU Digital Agenda on a level playing field with other technologies EU Par- • Establish the right of e-citizenship • Revisit the principle of technology liament through the concept of the techno- and services neutrality in a way logical environment guaranteeing the which takes into consideration the full interactivity between citizens and particularity of SatCom technologies government (public administrations). in the field of ICT ESA should provide the most feasible • Revisit the principle of efficient use technology for this purpose, and equitable access to the spectrum for SatCom considering its advantages in reaching remote areas with low demographic density • Establish the right of e-citizenship with the concept of the technological environment guaranteeing full interactivity between citizens and government (public administrations)

Table 27: Policy recommendations by EU policymaker in relationship with ESA and Member States

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List of Acronyms

Acronym Explanation ADSL Asymmetric Digital Subscriber Line APT Asia Pacific Telecommunity ARTES Advanced Research in TElecommunications Systems AT Austria ATU Africa Telecommunications Union Art. Article BSS Broadcasting Satellite Services BWA Broadband Wireless Access CDMA Code Division Multiple Access CEPT European Conference of Postal and Telecommunications CFSP Common Foreign Security Policy CIP Competitiveness and Innovation framework Programme CITEL Inter-American Telecommunication Commission COTM Communication-On-The-Move COTP Communication-On-The-Pause CZ Czech Republic DE Germany DK Denmark EBRD European Bank for Reconstruction and Development ECB European Central Bank EEAS European External Action Service EEB Energy – Efficient Buildings EEC European Economic Community EERP European Economic Recovery Plan EC European Commission EC DG MOVE European Commission Directorate General Mobility and Transport EC DG INFSO European Commission Directorate General Information Society EDRS European Data Relay Satellite EIB European Investment Bank EIP Entrepreneurship and Innovation Programme EMEA Europe Middle East Africa EMENA Europe Middle East North Africa ERDF European Regional Development Fund ES Spain

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Acronym Explanation ESA European Space Agency ESDP European Security and Defence Policy ESF European Social Fund ESOA European Satellite Operators Association ESP European Space Policy ESPI European Space Policy Institute ETSI European Telecommunications Standards Institute EU European Union FCC Federal Communications Commission FP Framework Programme FoF Factories of the Future FR France FSS Fixed Satellite Services GDP Gross Domestic Product GE Green Energy cars GMES Global Monitoring for Environment and Security GSO GeoSynchronous Orbit HE Greece HIS High Speed – Internet for everyone HSDPA High Speed Downlink Packet Access HSUPA High-Speed Uplink Packet Access ICT Information and Communication Technology ICT - PSP Information Communication Technologies Policy Support Programme IEE Intelligent Energy Europe programme IEEE Institute of Electrical and Electronic Engineers IMS Internet protocol Multimedia Service IP – TV Internet Protocol - Television ISDN Integrated Services Digital Network IT Italy ITRI Industrial Technology Research Institute ITU International Telecommunication Union ITU-R International Telecommunication Union – Radio communication ITU-T International Telecommunication Union – Telecommunication Standardization ITU-D International Telecommunication Union - Telecommunication Development ITU – RR International Telecommunication Union – Radio Regulations JTI Joint Technologies Initiatives LAS League of Arab States LOS Line-of-sight LX Luxembourg MAN Metropolitan Access Network

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Acronym Explanation Mbps Megabit per second MDG Millennium Development Goal MIMO Multiple Input Multiple Output NATO North Atlantic Treaty Organization NGSO Non GeoSynchronous Orbit NLOS Non-line-of-sight OECD Organisation for Economic Co-operation and Development OFDM Orthogonal Frequency-Division Multiplexing OTS Orbital Test Satellite Para. Paragraph PL Poland POTS Plain Old Telephone Service PPP Public-Private-Partnership QoS Quality of Service R&D Research and Development RAIN Rural Area Information Network RF Radio Frequency RSC Radio Spectrum Committee RSPG Radio Spectrum Policy Group SatCom Satellite Communications SSPA Solid State Power Amplifier TFEU Treaty on the Functioning of the European Union TLC Telecommunication TV Television UK United Kingdom UMTS Universal Mobile Telecommunications System USA United States of America VAS Value Added Service VAT Value Added Tax VSAT Very Small Aperture Terminal WCDMA Wideband Code Division Multiple Access WEST Wideband European Satellite Telecommunications Wi-MAX Worldwide Interoperability for Microwave Access WIPO World Intellectual Property Organization WRC World Radiocommunication Conferences WTO World Trade Organization

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Acknowledgements

The author would like to thank the distin- ously dedicated time for discussion, especially guished participants of the workshop on to Jorge Ciccorossi (ITU); Gabriella Arrigo “SatCom Policy in Europe”, held at ESPI at 15 and Cosimo La Rocca (Italian Space Agency); December 2010 in Vienna for their valuable Thomas Weber (European Communication inputs and comments. These have been An- Office – European Conference of Postal and tonio Colaço (European Commission, Direc- Telecommunications Administrations); Pearse torate General for Mobility and Transport); O’ Donohue (European Commission, Director- Pertti Jauhiainen (European Commission, ate General for Information Society and Me- Directorate General for Information Society dia); Iulia Simion (European Commission, and Media); Benoist Deschamps, (European Directorate General for Enterprise and Indus- Communication Office – European Conference try); Caroline Loup (European Commission, of Postal and Telecommunications Admini- Directorate General Internal Market and Ser- strations); Aarti Holla-Maini, (European Satel- vices); Stefano Agnelli (European Satellite lite Operators’ Association); Christine Operators’ Association); Armando Tempesta Leurquin (SES – ASTRA); Maurizio Fargnoli and Sara Cavelli (Italian Society for Interna- (Telespazio); Yves Blanc (Eutelsat); Jose tional Organization). Maria Casas (European Space Agency); An- In addition, as it is the first ESPI Study Re- dras Roboz (European Commission, Director- port of the author, she would like to extend ate General for Enterprise and Industry); her gratitude to the ESPI colleagues led by Thomas Brandtner (General Secretariat of the the Director Prof. Dr. Kai-Uwe Schrogl for Council of European Union). their substantial and constructive help and The author would also to express sincere support during the process of preparing this appreciation to the persons, who have gener- Report.

About the Author

Veronica La Regina has been Resident Fellow, vation of the SMEs. She holds a Master De- seconded by Italian Space Agency (ASI), at gree in Institutions and Space Policy (2009) European Space Policy Institute since July at Italian Society for International Organiza- 2010. Prior to joining ESPI, she was em- tions (SIOI) in Rome, PhD in Economic Sci- ployed at Telespazio SpA, satellite services ences (2004) at State University of Milan, provider, in Italy, where she worked in the Graduate Studies in Maths and Statistics department of business strategies and mar- (2001) at University of Rome Sapienza and a keting since 2007. Previously she held posi- Graduation in Law (1999) at LUISS G. Carli in tion as Experienced Research at Wave Energy Rome. She also attended several summer Centre in Lisbon (Portugal), where she took schools dealing with Law&Economics, Game care of the public policy issues related with Theory and Public Policies and technical the development and deployment of wave courses for satellite applications. She also has energy in Europe. Even previously, she was been invited to give lectures about energy economic researcher at Osservatorio Filas, economics and space issues. centre of socio-economic researches for inno-

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Mission Statement of ESPI

The European Space Policy Institute (ESPI) provides decision-makers with an informed view on mid- to long-term issues relevant to Europe’s space activities. In this context, ESPI acts as an independent platform for developing positions and strategies