Presentation on theme: "Promoting Investment in Mobile Satellite Services"— Presentation transcript:
1 Promoting Investment in Mobile Satellite Services Olga Madruga-FortiVice President, Legal and RegulatoryIridium Satellite LLC
2 Satellite Connectivity Plays Essential Role in Achieving WSIS Targets by 2015 Targets include Connecting:Villages with ICTs and establish community access pointsUniversities, colleges, secondary schools and primary schools with ICTsScientific and research centers with ICTsPublic libraries, cultural centers, museums, post offices and archives with ICTsHealth centers and hospitals with ICTsAll local and central government departments and establish websites and addresses
3 Satellite Connectivity is Critical in Times of Disasters and Emergencies Always available even though terrestrial infrastructure is damaged, destroyed or overloadedInterconnect widely distributed networks during times of disastersProvide interoperability between disparate systems and networks.Can warn of impending disastersUniquely appropriate for first responders
4 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 small3. 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
5 Iridium Provides Global Coverage Constellation of 66 Low Earth Orbit (LEO) satellites6 planes of 11 satellitesPolar orbits provide at 780 km altitude100% global coverageInter-satellite links are key differentiatorMultiple spares in orbitMission Orbit at780 km (485 mi)(66 Satellites)Storage Orbit55
6 Barriers to Satellite Connectivity Service BarriersNo policy.Approval required for satellite system in every country, not just the distributorsHigh application fees, licensing fees, infrastructure requirementsLengthy approval process, local incorporation requirementsEquipment BarriersDifficulty 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.
7 Facilitating Market Access and Investment Light-touch regulation – “Open Skies” policyMinimum necessary to achieve government objectives of protecting public safety and managing scarce resourcesSimplified application process for foreign satellite systemsFocus on the service provider (distributor) and not on infrastructureRegulations should be technology neutralAccommodate the maximum number of satellite systems possibleAdopt application fees and annual fees that reflect the actual cost of regulationRely on international coordination process at ITUIf satellite is operational, it is coordinatedBlanket licensing of terminals and other terrestrial equipment
8 International and Regional Efforts to Facilitate Investment GMPCS MOUBlanket or class licensing for handsets, mutual recognition of type approvalElimination or reduction of customs requirements for handsetsAllow MSS subscribers to carry and use their handsets in-countryTampere ConventionFacilitate provision of prompt communications assistance during times of disaster and emergenciesCovers both installation and operation of communications systemsAddresses regulatory barriers in advanceLicensingUse of frequencies and equipmentImport of equipmentMovement of personnel
9 Regional Efforts European Union Granted a pan-European license for S-bandEliminated individual country type approvals of satellite and other telecom terminalsIntroduced harmonized equipment standardsCITEL 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 neededNotify the CITEL Exec Secretary of authorized systems and terminals, including contact points for posting on CITEL website.
10 Country-Specific Examples of Light-Touch Regulation Satellite system does not require licenseFocus on distributor of serviceNo limits on number of licensees or foreign ownership.Observe ITU coordination of frequencies.SingaporeService-based Operator LicenseNo application feeAnnual fee of US$3,384UgandaPublic Service Provider LicenseApplication fee – US$2,500Annual fee – US$10,000 plus 1% levy on gross annual revenue in countryUruguayLow fees, which are transparent and identifiableSpeedy adjudication.
11 ConclusionsTo promote investment in satellite services, regulators should adopt a “light touch”Eliminate unnecessary regulationStreamline regulations for satellite servicesRegulators should work through regional and multilateral fora to harmonize regulations and standardize licensing requirementsRegulators should coordinate with other government agencies to promote ease of entry and reduced costs for satellite terminals and other necessary equipment