Promoting Investment in Mobile
Satellite Services
Olga Madruga-Forti
Vice President, Legal and Regulatory
Iridium Satellite LLC
[email protected]
Satellite Connectivity Plays Essential Role in
Achieving WSIS Targets by 2015
Targets include Connecting:
• Villages with ICTs and establish community access points
• Universities, colleges, secondary schools and primary schools with
ICTs
• Scientific and research centers with ICTs
• Public libraries, cultural centers, museums, post offices and
archives with ICTs
• Health centers and hospitals with ICTs
• All local and central government departments and establish
websites and e-mail addresses
Satellite Connectivity is Critical in Times of Disasters and
Emergencies
• Always available even though terrestrial infrastructure is
damaged, destroyed or overloaded
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Interconnect widely distributed networks during times of disasters
Provide interoperability between disparate systems and networks.
Can warn of impending disasters
Uniquely appropriate for first responders
Critical Role of Regulator
• Commercial investment is based on analysis of the opportunity, the
costs involved and legal possibilities and requirements. There are
three key roles of the regulator.
• 1. POLICY. Regulators create opportunities and inform the public.
Policies should exist, be transparent and readily identifiable.
• 2. COSTS. Regulators have a significant role in determining the
cost of providing service. Spectrum fees, and all local
requirements sum up by country to affect feasibility. The higher the
cost, the less likely an investment will occur, particularly where
market for services is small
• 3. ADJUDICATION. Regulators also affect timing and rollout in
adjudicating applications and authorizations.
• Key is promoting competition, transparency in regulatory process,
light-handed regulation where possible
Iridium Provides Global Coverage
• Constellation of 66 Low Earth Orbit (LEO) satellites
• 6 planes of 11 satellites
• Polar orbits provide at 780 km altitude
• 100% global coverage
• Inter-satellite links are key differentiator
• Multiple spares in orbit
Mission Orbit at
780 km (485 mi)
(66 Satellites)
Storage Orbit
Barriers to Satellite Connectivity
• Service Barriers
• No policy.
• Approval required for satellite system in every country, not just
the distributors
• High application fees, licensing fees, infrastructure requirements
• Lengthy approval process, local incorporation requirements
• Equipment Barriers
• Difficulty in obtaining type approval.
• Absence of coordination between different parts of the
government (e.g., customs and the regulatory authority)
• Results??
• Satellites will bypass the market.
• Users left unserved.
Facilitating Market Access and Investment
• Light-touch regulation – “Open Skies” policy
• Minimum necessary to achieve government objectives of protecting
public safety and managing scarce resources
• Simplified application process for foreign satellite systems
• Focus on the service provider (distributor) and not on infrastructure
• Regulations should be technology neutral
• Accommodate the maximum number of satellite systems possible
• Adopt application fees and annual fees that reflect the actual cost
of regulation
• Rely on international coordination process at ITU
• If satellite is operational, it is coordinated
• Blanket licensing of terminals and other terrestrial equipment
International and Regional Efforts to Facilitate
Investment
GMPCS MOU
• Blanket or class licensing for handsets, mutual recognition of type
approval
• Elimination or reduction of customs requirements for handsets
• Allow MSS subscribers to carry and use their handsets in-country
Tampere Convention
• Facilitate provision of prompt communications assistance during
times of disaster and emergencies
• Covers both installation and operation of communications systems
• Addresses regulatory barriers in advance
• Licensing
• Use of frequencies and equipment
• Import of equipment
• Movement of personnel
Regional Efforts
European Union
• Granted a pan-European license for S-band
• Eliminated individual country type approvals of satellite and other
telecom terminals
• Introduced harmonized equipment standards
CITEL Recommendation 20 (VIII-06).
.
• Consider the adoption of procedures that facilitate the free
circulation and implementation of GMPCS satellite system terminals
for when Administrations consider them needed
• Notify the CITEL Exec Secretary of authorized systems and
terminals, including contact points for posting on CITEL website
Country-Specific Examples of Light-Touch Regulation
• Satellite system does not
require license
• Focus on distributor of
service
• No limits on number of
licensees or foreign
ownership.
• Observe ITU coordination
of frequencies.
Singapore
• Service-based Operator License
• No application fee
• Annual fee of US$3,384
Uganda
• Public Service Provider License
• Application fee – US$2,500
• Annual fee – US$10,000 plus 1%
levy on gross annual revenue in
country
Uruguay
• Low fees, which are transparent
and identifiable
• Speedy adjudication.
Conclusions
• To promote investment in satellite services, regulators should adopt
a “light touch”
• Eliminate unnecessary regulation
• Streamline regulations for satellite services
• Regulators should work through regional and multilateral fora to
harmonize regulations and standardize licensing requirements
• Regulators should coordinate with other government agencies to
promote ease of entry and reduced costs for satellite terminals and
other necessary equipment