The government’s role in commercial space
For a long time, the government was the only real source of money for commercial space. They were the only ones launching satellites regularly and the only ones asking for launches. While the government still plays a significant role, the private sector of space has started to make a name for itself without the government’s help. That was until the coronavirus hit and brought most of the industry to grinding halt.
Most of the launch companies were deemed unessential and were not able to launch, and if these companies can’t launch, they can’t survive, and if these satellite companies can’t get their satellites up, they can’t provide service. It is all around terrible for the industry. To make matters worse, most space companies were not eligible for small business loans from the government, due to the technicality that they are usually partnered with a big company and not considered a small company.
So what is the government doing instead?
- They are changing regulations on the remote sensing market
- Adding direction to the space force
- Allocating more money towards space
The remote sensing market
Even though there is a private sector in the space industry, they still have to interact heavily with government agencies. They have to get licenses and have their technology reviewed and approved by the government.
Remote sensing companies had to get their technology classified by national security agencies, and they would be classified as “low risk” or “high risk.” The problem was that almost every company was considered a high risk to national security. That forced remote sensing companies to adhere to special regulations and let security agencies watch what they are doing. These regulations slowed down U.S companies and made them less competitive and made them spend more resources for no reason.
That all changed when a new regulation came out, taking out the high risk low risk and changing it to a 3 tier system.
Tier 1: “Proposed systems that offer data “substantially the same” as sources not licensed by the Commerce Department, such as foreign systems.”
Tier 2: “Those systems that would provide data matched only by other U.S. systems would go into Tier 2. Those would be subject to more conditions, including what’s known as “shutter control” that allows the government to temporarily restrict imaging of certain areas. Shutter control previously applied to all licensed systems, although was never used by the government. It also requires companies that propose to take resolved images of satellites or other artificial space objects to obtain the permission of the owner of that object and notify the Commerce Department five days in advance.”
Tier 3: “A Tier 3 is limited to proposed systems that offer “a completely novel capability” not otherwise available globally. Those systems would operate under the same rules as Tier 2 systems, but Commerce would have the authority to impose additional temporary conditions lasting up to three years.”
Those new changes allow U.S companies to compete better, and it gives them more clarification on how their technology is going to be classified. It will also allow the U.S security agencies to focus on specific companies rather than every single one, which saves time and resources.
Space Force initiatives
The department of defense released and updated space strategy that outlines what the Space Force is going to be focusing on. The key priorities of this strategy are:
- Protect and defend U.S. and, as directed, allied, partner, and commercial space capabilities.
- Deter and defeat adversary hostile use of space.
- Deliver advanced space capabilities for national, joint, and combined operations.
- Leverage and bolster the domestic civil and commercial space industry.
- Uphold internationally accepted standards of responsible behavior.
Those key points are a big deal for the space private sector! As you can see in the 4th point, they want to bolster the commercial and civil space industry!
What caused this shift?
From a SpaceNews article, “DoD recognizes there’s a space technology race underway and the United States has to accelerate the pace of innovation. The United States will “leverage commercial technological advancements and acquisition processes,” the document says. By the same taken, U.S. adversaries are now acquiring commercial space technologies at decreased costs to expand their capabilities.”
“China and Russia have analyzed U.S. dependencies on space and have developed capabilities to challenge U.S. access to space, says the document. “Concurrently, their use of space is expanding significantly. Both countries consider space access and denial as critical components of their national and military strategies.”
Basically, the Space Force recognizes that the U.S is behind in terms of military strength in space, and to make up for the delay, they are looking to the commercial market for help. That is good news for new start-up companies looking to work with the government that may not have had a chance before.
New resource Allocations
In the first two sections, I talked about regulatory changes, but is the U.S government doing anything specifically monetary wise?
Yes!
- For starters, “The Senate Armed Services Committee’s markup of the National Defense Authorization Act for Fiscal Year 2021 directs the Air Force to fund up to $250 million in research and development projects to help launch providers prepare to meet future national security launch requirements.”
- The House Armed Services Committee will also allocate $150 million to launch programs, specifically prize amounts from competitions, and more even more specific money for the National Security Space Launch Phase 3. A competition between the major launch companies to earn contracts with the Air force. By adding this incentive, it will drive these companies to actually compete and finish on time.
- To bring it full circle, the National Reconnaissance Office plans to increase its annual spending on commercial imagery by $50 million to $100 million. The NRO already spends around $300 million, so adding more will help companies that could have been affected by the coronavirus. It can also help companies come out with new technology.
Wrap up
It is great to see that the U.S government is actively supporting the commercial space industry. With the capabilities of these companies advancing, we need a government that can recognize the advancements and advances with them. Be prepared to seem more regulations and laws put into place regarding commercial space. Space is a complex industry, so the government usually takes their time with it, but as we have seen, they are willing to make changes and work with the companies. The addition of the Space Force has helped the commercial market and will most definitely help with the industry’s growth. By watching these changes, you can be ahead of the curve and know when to invest and what to invest in!