Unnecessary regulations could hamper the development of the commercial satellite sector
23th February 2012
The global satellite industry today repeats its grave concerns over the proposed UNIDROIT
Space Assets Protocol.
As delegates of UNIDROIT and its member states convene on February 27 in Berlin, Germany,
for the Diplomatic Conference on the Draft Space Assets Protocol to the Convention on
International Interests in Mobile Equipment, the European Satellite Operators’ Association, the
Satellite Industry Association of Washington, D.C., the Space Industry Association of Australia
and the Cable and Satellite Broadcasting Association of Asia today urged delegates and
Member States to defer any consideration of the Protocol due to an absence of support from the
global satellite industry.
In an unprecedented show of unity, the world’s satellite sector submitted a letter to the Unidroit
Conference Chairman signed by close to 100 companies, expressing opposition to the potential
new piece of legislation that threatens the stability of satellite financing. The list of signatories
includes established and start-up satellite operators on all continents, most of the
world's satellite manufacturers and launch providers, the major satellite insurance brokers and
underwriters, the large banks participating in the satellite sector, and the major satellite and
space-related associations. The global satellite industry has repeatedly raised its concerns with
UNIDROIT over the last few years but those concerns still remain unaddressed.
The signatories believe that the draft UNIDROIT Space Assets Protocol, while aiming to
facilitate the financing of space assets, would have the exact opposite effect in practice, and
would risk creating a new and unnecessary layer of regulation for the financing of satellites, with
serious negative consequences.
Patricia Cooper, President of SIA: “The satellite industry has been one of the world’s most
successful and strategic sectors to voice its concerns regarding the draft UNIDROIT Space
Assets Protocol. We urge UNIDROIT and its member states to avoid measures that would
threaten that success, which are virtually unanimously opposed by the world’s satellite industry.”
Aarti Holla, Secretary General of ESOA: “Satellite finance is a booming business, with operators
of all sizes and from diverse countries raising funds to launch new satellites the world over. The
Protocol is inconsistent with financial market practices and unnecessary.”
Brett Biddington, Chairman of the SIAA: “There is no problem for this draft Protocol to solve. On
the contrary it will create numerous uncertainties that will only serve to raise transactional costs
for an already investment-intensive sector.”
Simon Twiston Davies, CEO of CASBAA: “The world’s satellite industry is united against this
unprecedented intrusion that risks impeding the smooth operation of a sector which secures
billions of dollars in private commercial financing every year.”
The signatory associations hope that States will take their very real concerns into account and
stand down from adopting what would be a disaster for the future of satellite financing.
