SATELLITES INDUSTRY AND THE DIGITAL AGE*
By Christian Bovet**

Technical framework.
Any object that orbits or revolves around another one is a satellite.  Today artificial satellites constitute one of the most effective means of providing broadcast and communications services on a very large scale, offering worldwide or, at least, broad regional coverage (e.g. Europe).  There are many kinds of satellites.  Satellites in geosynchronous (or "geostationary") orbits are generally used for television and radio broadcasting as well as for broadband Internet services.  Other satellites fly at low earth orbits (LEO) or at medium earth orbits (MEO).  Equipment also varies:  beside complex and sophisticated satellite systems, one finds satellites not belonging to any network and weighing less than 10 kg (so-called "nanosatellites").
Information and communication technologies (ICT) have evolved tremendously in recent years.  The digital transformation of traditional content - such as films, video or music - and the emergence of new services "born digital" - e.g. interactive software ? have favoured the digital convergence of information society and media services, networks and devices.  Satellite communications and mobile broadband communications, including Universal Mobile Telephone System (UMTS) and Worldwide Interoperability for Microwave Access (WiMAX) technologies, contribute to make content and data available everywhere at any time.  This evolution changes users' habits, combining "placeshifting" and "timeshifting".

Legal framework
The 1967 UN Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, provides that outer space “shall be free for exploration and use by all States without discrimination of any kind, on a basis of equality and in accordance with international law, and there shall be free access to all areas of celestial bodies” (Article I,1) and that it “is not subject to national appropriation by claim of sovereignty, by means of use or occupation, or by any other means” (Article II).  Although there is some controversy regarding the altitude at which outer space begins, it can be stated that all satellites use outer space.  Lack of sovereignty does not imply lack of coordination.  That is why rather complex procedures have been set up within the International Telecommunication Union (ITU) in order to manage the two scarce resources essential to the basic operation of satellites: space (i.e. orbits) and radio spectrum (i.e. frequencies).

At the European Union level, the coordinated use of frequencies is warranted through the Radio Spectrum Committee (RSC) and the Radio Spectrum Policy Group (RSPG).  The EU regulatory framework for the electronic communications sector also covers broadcasting activities.  For instance, the Authorisation Directive applies to networks and services used for the transmission of radio and television broadcast content, including satellite broadcasting networks.  However, the provision of broadcast content is subject to additional conditions imposed by national and European regulations.  Changes should shortly occur in this context too, since the EC Commission launched a full review of the "Television Without Frontiers" Directive and is closely monitoring the roll-out of digital terrestrial television (DTT) and switch-off of analogue terrestrial television in Member States ("switchover plans").

Political and economic challenges
Without playing on words, one of the central questions is whether digitalisation of information and data will indeed reduce the digital divide or aggravate it.  Although this issue concerns first and foremost the relationship between industrialised and developing countries, it also relates to the differing ICT levels found across Europe.  European governments should undertake serious efforts in order to reach some kind of technological equality among their citizens.  In addition, digitalisation has a significant impact not only on the behaviour of users but also - and perhaps primarily - on the actions and reactions of the industry.  Does digitalisation increase competition or does it rather accentuate the concentration phenomenon that can currently be observed in the telecommunications and media markets?

A continuing debate is whether, although international law clearly excludes those claims, developing countries should be compensated for the use of outer space by geosynchronous satellites flying above them.  Another topic is the impact of the privatisation process of Intelsat and Eutelsat on public service.  The structures of these organisations have been designed so that public service can continue beside purely commercial activities.  Is this effectively working in everyday business and how?  The influence of the recent controversy involving US firms cooperating with the Chinese authorities in order to control political content on the Internet is also of interest for the satellites industry because of these equipments' capacity to cover broad geographical areas.

*  Abstract for the European Satellite Cultures Conference, Copenhagen, 4-5 May 2006.
**  Professor at the University of Geneva, Switzerland, and visiting professor (2005-2006) at the Max-Planck Institute of Munich, Germany.  Deputy chairman of the Swiss Federal Communications Commission (ComCom).