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Boom Brings Challenges

Streamlined, Cheaper Smallsat Licensing Vote Coming Aug. 1; LFA Vote Possible

Licensing a small satellite could get cheaper and faster through a streamlined process to be on the FCC's Aug. 1 agenda, Chairman Ajit Pai told a U.S. Chamber of Commerce smallsat conference Tuesday. FCC officials told us the agenda could include a local franchise authority order stemming from last year's Further NPRM that would treat cable operators' in-kind contributions required by LFAs as franchise fees and subject to a cap (see 1809250017).

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Pai said under the draft order, smallsat operators could opt for a streamlined alternative to existing licensing, with a shorter review timeline and lower fees. He said to qualify, smallsats would have to be maximum 180 kilograms -- about 397 pounds -- have a maximum lifespan of six years and orbital height of 600 kilometers, and would de-orbit automatically in the atmosphere if ground operations lose contact.

The rocketing numbers of smallsats is requiring more regulatory reviews by the FCC, making the agency's speed and regulatory flexibility increasingly important, Pai said. He said the agency needs to work with other federal agencies and the private sector on orbital debris issues.

Asked about the possibility of satellite operators increasingly seeking regulatory flags of convenience internationally for licensing of their operations, Pai said FCC hasn't had to ponder that, but coordination is a frequent topic in talks with his counterparts in other countries. He doesn't want regulatory arbitrage, especially in space, where a mistake could have effects for centuries. Asked how the agency considers assigning orbits to constellations, he said the International Bureau tried to ensure every application has a home" despite "some ripples of disagreement." Pai said the agency's overriding goal at the 2019 World Radiocommunication Conference is harmonized spectrum driven by science and economics rather than "politics and parochialism."

SmallSat Alliance President Steve Nixon said the FCC application fee for smallsat operators has been a particular burden, and reducing those fees and streamlining the application time is important for the industry's nimbleness. "We truly are seeing a revolution in the satellite industry," and a streamlined licensing regime "can only serve and encourage continued innovation," Satellite Industry Association President Tom Stroup said in a statement.

There's no uniform definition of what a smallsat is, with smallsat industry players often thinking size isn't a defining feature, said Bhavya Lal, Institute for Defense Analysis Science and Technology Policy Institute researcher. Most smallsats in orbit now are dedicated to remote sensing, but satcom is set to overtake it as broadband mega constellations go up, she said. Lal said from a policy standpoint, the commercial smallsat community sees the biggest needs including spectrum availability and orbital debris management and regulation.

Speakers noted challenges of the satellite boom. That no agency has an exclusive space regulatory mandate makes the government safeguarding the space commons more difficult, said Christian Zur, Space Industry Council executive director-procurement. National Institute of Standards and Technology Computer Security Chief Matt Scholl said current encryption ciphers and cybersecurity management protocols used to protect data won't be effective in eight to 10 years, something quantum computing emerges and satellite operators need to consider when designing their network architectures now for future systems.

Numerous launch company and smallsat company ideas are flooding the market, and industry is in the early stages of sorting them out, with many destined not to make it, said Richard DalBello, Virgin Galactic vice president-business development and government affairs.

Blue Origin Vice President-Sales and Strategy Brett Alexander said the first launch of its reusable New Glenn orbital rocket is expected in 2021, with New Shepard suborbital rocket launches practice for that. Chris Herndon, HawkEye 360 chief information officer, said the company put a cluster of three RF monitoring satellites in orbit in December, and expects to end 2020 with nine in orbit and three more clusters of three satellites "not too far behind."

Brett McMillen, Amazon Web Services director-U.S. federal and ground station, said the company's ground-stations-as-a-service business has two locations now, in Ohio and Oregon, and expects to have global coverage with 12 earth stations worldwide by year-end. Swarm Technologies General Counsel Kalpak Gude said it plans its 150-satellite IoT constellation to be in orbit by mid-2020. Gude said broadband satellites get a lot of attention, but IoT isn't likely to be a big application because of cost.