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Businesses Fear U.S. Policy Is Threat to Satellite Industry
By Jonathan Lipman

Special to space.com

posted: 09:43 am ET
04 November 1999

isba_991104

WASHINGTON (States News Service) – The opening of the first International Space Business Assembly brought forth a near consensus that U.S. export policy is threatening the international satellite industry.

Keynote speaker Bernard Schwartz, CEO of Loral Space & Communications, said Wednesday that Globalstar plans to follow its satellite phone network with a constellation of low-earth-orbit satellites that could provide high-speed Internet connections, or broadband, called Cyberstar.

"We think broadband has to happen," said Douglas Heydon, President of launch provider Arianespace’s U.S. subsidiary. "And we like it, because it takes big, heavy satellites."

Heydon said he felt "cautious optimism" for the future, because the U.S. business edge in satellite technology is troubled by the shift in export licensing from the Department of Commerce to the State Department.
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More stringent requirements and insufficient staff has led to a delay in processing export licenses at the State Department, which companies require in order to send any detailed information or products overseas.

Control was switched to the State Department last March in response to fears over protecting national security.

"Companies cannot get to the suppliers they prefer," Heydon said. Lots of corporate resources are being wasted on non-productive activities, such as lobbying for swift passage of licenses, he said.

"Defense and State (departments) did not want this dumped on them," Heydon said. "I believe reason will prevail."

American companies are not the only ones hurting from the controls. Intelsat CEO Conny Kullman and Tomifumi Godai, Executive Vice President of the Japanese space agency NASDA, both called export controls troubling.

"Basically, it should be a free market," Godai said through an interpreter. "United States policy seems to change, right to left, this to that, in part because of domestic affairs, but also because of the international picture."


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