Satellite group warns investment at risk unless policy settings are fine-tuned

A key group representing major global companies in the commercial satellite industry has warned that Australia risks losing both important satellite expertise and significant investments to overseas markets, unless better regulatory and investment-incentive settings are enacted. Responding to the federal government's review of Australia's space industry capability, the Satellite Services Working Group of Communications Alliance also called for better engagement with the commercial sector of the space industry.

It noted that 75% of global space activity was in the commercial sector and suggested this should be reflected in the way that government engages with the space sector as a whole.

Ultimately, improved engagement could come via proposals for an Australian Space Agency, which the SSWG acknowledged there was significant support for. However, it also cautioned that any new agency should reduce rather than create further red tape.

The submission said that an Australian Space Agency should be designed primarily as an organisation to provide industry facilitation and government coordination/liaison. “It is interesting to note that the recently created New Zealand Space Agency has been granted regulatory powers. Some of our members are not convinced at this stage that this would be appropriate in Australia. In particular, members are concerned about the risk of simply creating an additional regulatory body and set of red tape that has to be engaged with,” the submission noted.

According to the group, the commercial side of the Australian satellite sector has long felt that it has not always been easy to open the doors to contribute to space policy development. In 2013, in the wake of an earlier satellite utilisation review, the government created a Space Advisory Council as a formal avenue for input to government from across the space sector. However, the submission noted that in the ensuing four years, the SAC has never been convened to hold its first meeting.

“The SSWG believes that the space review should consider the appropriateness of recommending the invigoration of the SAC or a similar channel to government, given that this has not been effective to date. Clearly, if a space agency was to be established, it could sensibly be responsible for this function,” it noted.

INVESTMENT INCENTIVE NEEDED: The SSWG submission used the development of the OneWeb global satellite system, based in the UK, and the emergence of New Zealand as a satellite launch location as two recent examples of overseas developments that might lure skills away to foreign opportunities. It also noted that Australia had previously missed out on a significant ground-segment investment by a global operator primarily due to licences fees that were globally uncompetitive.

“There is a material risk that, unless regulatory and investment-incentive settings are well calibrated in Australia, we will lose important expertise to overseas markets and miss out on opportunities for significant investment in the Australian space sector,” the submission noted.

Some Communications Alliance members have also cited the public liability insurance requirements for an overseas launch in Australia as a barrier to potential investment. The SSWG submission called for greater focus on intellectual property transfer and efforts to build on Australia’s existing skills in terrestrial space infrastructure, telemetry, tracking and control gateways and user terminals. It pointed to significant new opportunities for Australia in fields including: • satellite-based resiliency solutions; • next-generation compression equipment; • satellite backhaul to support the roll-out of new 5G mobile networks; and • satellite integration into burgeoning Internet of Things networks.

The SSWG proposes that government better define the altitude at which “space” begins and points to the potential importance of the high-altitude zone that lies above the operating domain of commercial aircraft but below the 100km altitude that is generally considered to be the beginning of space.

Written submissions to the review closed last week, while a series of roundtable meetings are scheduled in various cities for the next two weeks. The review, which runs until March 2018, is led by an expert reference group chaired by former CSIRO CEO Megan Clark. Geoff Long, Commsday