Commercialization of Space

Table of Content

The space research organizations have come a long way since the launch of Sputnik, focusing on self-reliance and national application of space science. Technology has become the cornerstone of space programs, with a main focus on satellite communications for various national and international uses, remote sensing for resource survey and management, environmental monitoring and meteorological services, as well as development and operationalization of indigenous satellites and launching vehicles to provide these services. Initially driven by curiosity about space exploration, it is now time for everyone to consider commercializing space.

There has been a significant increase in the range of applications pertaining to civilian space. Currently, telecommunications, earth observation, and navigation systems are the major applications of space.

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Telecommunications include fixed telecommunication services such as data, voice, internet, and multimedia. Broadcasting services like radio and TV are also included in this category. Mobile services like data, voice, internet, and digital radio are also part of telecommunications.

The evolution of satellite communication has led to large global coverage. Telecommunications provide the most dynamic market for space applications.

Earth Observation helps to measure and monitor the Earth’s climate and environment, as well as map its resources.

Positioning and Navigation:

The use of satellites can greatly assist in localization and navigation. With the implementation of GPS, many applications are increasing, such as air transport, maritime transport, or even the localization of isolated individuals.

GPS technology is rapidly advancing thanks to the Global Positioning System. It offers unparalleled precision and flexibility in navigation, as it relies on satellite-based positioning.

The applications have proven to be difficult in terms of commercial viability. This has made it challenging for financial communities and industries to make progress in space development. As a result, many countries are reconsidering their overall space strategies.

For the development of space infrastructure and commercialization of space, Future Projects are being launched with the aim of providing an assessment of the long-term prospects for the sector. This includes examining key factors associated with shaping its evolution, identifying new promising applications that may come on stream over time, and determining required conditions for their emergence. These conditions may include possible changes to existing space infrastructure as well as deployment of new space infrastructure. Implications will be drawn regarding supportive measures that could foster development, including new and innovative forms of public/private partnerships. The government will also identify measures that can be taken to provide a policy, legal, and regulatory framework better suited to developing new commercial applications.

The Project on the Commercialization and Development of Space Infrastructure, like past OECD projects, is primarily funded by public and private organizations that participate in the project through voluntary contributions and grants. These organizations include major users of space services and products. Non-OECD stakeholders may also be invited to participate on an ad hoc basis with the agreement of OECD participants.

The US government’s Commercial Space Act of 1998 changed the direction of space development after the Cold War by committing to commercialize the International Space Station. NASA has acknowledged in publications that space travel has great economic potential for the general public. However, to date, only a few hundred people have come forward to travel to space. In contrast, aviation is a global industry that involves a wide range of activities from engineering design to marketing and provides services to more than 1 billion passengers per year.

For the development of safe and profitable passenger travel services in space, it is important for individuals, companies, or organizations with prior experience in space activities to collaborate with various branches of the aviation industry.

In the present perspective, the aviation industry has extensive experience operating piloted rocket-powered vehicles, such as Rocket-Assisted Take-Off (RATO) or Jet-Assisted Take-Off (JATO), which were used during the 1940s and 1950s. RATO systems were not only used for military activities but also on commercial passenger aircraft for a long period. The experience gained from this will be a valuable tool in developing procedures for commercial passenger space travel services.

In the space industry, companies and government organizations have launched disposable rockets into orbit and remotely controlled satellites in space. Crewed vehicles have also been developed for passenger space travel services. However, government-funded space agencies lack experience in commercial passenger service operations and are not as interested in such activities.

However, the landmark report General Public Space Travel and Tourism,” created in cooperation with the US Space Transportation Association, acknowledges that travel by the general public in space is a rational idea. This could potentially grow into the largest business activity in space.

Like many other industries, the space industry has also undergone significant restructuring after the Cold War. Large aerospace companies were consolidated due to cuts in defense budgets and the commercialization of satellite communication activities. However, despite these changes, the pattern of government funding domination remained unchanged.

The potential economic value of space travel has been acknowledged by the general public and the government’s focus on commercial space activities is evident. However, there is still reluctance to turn this potential into reality. Nevertheless, it remains a significant matter due to its economic importance. If current patterns continue with space agencies’ budgets at $25 billion per year, taxpayers will pay $500 billion over the next 20 years.

Currently, deflation is threatening the world economy due to a lack of innovative fields for economic growth and an oversupply in older industries. Therefore, it is highly desirable for more advanced countries to increase their efforts towards developing new industries. The commercial space travel industry has the potential to grow on a large scale within 30 years and employ several million people if it follows the JRS scenario.

There are different schools of thought when it comes to advocating for the development of space tourism and determining the best vehicle configuration to be used. The leading configurations include single-stage-to-orbit (SSTO), vertical take-off and landing (VTOL), two-stage-to-orbit (TSTO), and horizontal take-off and landing (HTOL). HTOL vehicles are winged and expected to carry passengers with ease, especially when compared to VTOL vehicles in sub-orbital systems. However, when it comes to landing requirements, VTOL vehicles have an advantage as they do not require runways. [4]

The International Space Station (ISS) was built by five partners: the National Aeronautics and Space Administration (NASA), the Russian Aviation Space Agency (RSA), the European Space Agency (ESA), the Canadian Space Agency (CSA), and the Japanese Aerospace Exploration Agency (JAXA). The ISS provides opportunities for long-duration space flights for humans in microgravity. Commercialization of the ISS involves selling its products and services to private companies without transferring ownership of it. Society can benefit from commercialization of space technology in areas such as environmental protection, disease prevention, and technological innovation.

The prime objective of NASA’s long-term plan in 1998 was to establish a foundation for a marketplace and stimulate the national economy for space products and services in the low Earth orbit region. This region was dominated by the private sector in both demand and supply. The plan marked the beginning of transitioning to private investment, offsetting public share for operating the space shuttle fleet and space station through commercial enterprises in open markets.

In 1997, the Commercial Space Act was passed into law. This act aimed to commercialize space activities such as launch vehicles and the International Space Station. To improve the reasonability and impact on society and the economy, the Committee on Economics and Commercialization in Space Activities (CESA) operates under the International Academy of Astronautics (IAA). The goal is to utilize space for the betterment of mankind.

The Commercial Space Transportation Competitiveness Act was enacted in 1999 to renew the commercial indemnification authority of the Secretary of Transportation. The Office of Space Transportation at FAA and the Office of Space Commercialization at the Commerce Department were also authorized under this act. Additionally, it required the production of an independent report on how to handle indemnification in the future.

In October 1998, NASA conducted an internal study to identify potential businesses that could pave the way for commercial development of the International Space Station by removing any barriers. NASA has also been conducting various studies and acts to explore commercial utilization of space.

On June 21, 2004, history was made when the first non-governmental rocket ship was safely flown and landed at Mojave, California. Mike Melvill became the first test pilot to convert to an astronaut. While there was controversy surrounding the flight of Space Ship One on that day, it is unclear whether it holds significant importance. Overstating its importance would be difficult. However, it has been reported that commercial version flights may cost approximately $20,000 per passenger which is significantly cheaper than NASA’s rocket journeys. Space Ship One successfully demonstrated the progress in technology that has taken place over the last fifty years as it only required four test flights to reach space.

The space security situation ended without military combat and an arms race, which contradicted previous predictions. There were several reasons for this outcome:

  1. Risks of collective ‘bads’.
  2. Fear of action-reaction dynamics.
  3. The high cost of space weapons.
  4. The advantage of transparency.

Everything has become commercialized, even space which was once unreachable. Commercialization, globalization, privatization, and other similar trends cannot be stopped; however, they should have reasonable restraints. International organizations must take care to establish a defined legal framework while nations should contribute to success with a moral framework. Only then can the commercialization of space have a bright future without negative impacts.

References:

  1. Collaboration with Aviation – The Key to Commercialization of Space Activities, Azabu University & NASDA,  Aviation Industry Consultant, Patrick Collins & Yoshiyuki Funatsu. http://www.spacefuture.com/archive/collaboration_with_aviation_the_key_to_commercialisation_of_space_activities.shtml
  2. Global Positioning System http://www.gisdevelopment.net/tutorials/tuman004.htm
  3. Leonard David, (2004, June 21), Spaceship One Makes History with First Manned Private Spaceflight, Senior Space Writer. http://www.space.com/missionlaunches/SS1_touchdown_040621.html
  4. Message from the NASA Administrator: 2008 National Aviation Operations Monitoring Service (NAOMS), (2008, January 15). http://www.spaceref.com
  5. Ms. S.A. Tkatchova | Master of Space Studies, Frankrijk, promotor | Prof.ir. K. Smit and prof.mr.dr.ir. S.C. Santema (LR). From space exploration to commercialisation http://www.tudelft.nl/live/pagina.jsp?id=50ce5af0-1ebc-4e8e-a042-374306ced676&lang=en
  6. Protecting safe access to space: Lessons from the first 50 years of space security,James Clay Moltz,   space policy, volume 23, Issue 4, November 2007, Pages 199-205.
  7. The Historic Significance of Spaceship One’s June 21 Space Flight, Space future’s view, 17 June 2004 http://www.spacefuture.com/journal/journal.cgi?art=2004.06.17.June_21_flight
  8. The Commercialization of Space and the Development of Space Infrastructure

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Commercialization of Space. (2016, Sep 14). Retrieved from

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