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GAO Says Industry Uncertain About Station Commercial Potential
By States News Service

posted: 11:50 am ET
19 July 1999

GAO says space industry uncertain about commercial potential of the

WASHINGTON, July 16 The space industry is uncertain about the commercial potential of the International Space Station (ISS), so the government cannot yet estimate whether private activity will ever reduce the ISSs operating costs, according to Congress's investigative arm, the General Accounting Office (GAO).

The GAO says that the business community is "unclear about the stations capabilities and concerned about the lack of a regulatory framework and pricing policy." Responding to an inquiry from the House Committee on Science about the station's commercial potential, the agency said that even if the business communitys concerns "are alleviated, it is uncertain whether the current low level of interest in commercializing the station will increase enough" to make a "significant difference in operating costs."

In its letter to congressmen F. James Sensenbrenner, Jr. and George E. Brown, Jr. (who died last week from a long-term infection), the GAO noted that the station's x-ray crystallography facility may have some commercial use. However, the agency stated that "uncertainty over funding of the facility brings to the forefront the issue of who should pay to develop station-based commercial facilities."

"This is an issue that NASA could face repeatedly," the GAO said "as it considers various commercial efforts aboard the space station. Accordingly, NASAs decision on the x-ray facility may assume an importance that is larger than the issue of whether to spend $50 million for this one specific facility."

 

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