ANALYSIS
Bangladesh’s motivation for owning a satellite is strengthening the foundation for economic development, conforming to the growing trend of developing countries investing in their own satellites.
Bangladesh has become the latest country to own a satellite. The Bangabandhu-1 satellite, named after the father of Bangladesh Sheikh Mujibur Rahman, has been launched on an improved version of SpaceX Falcon 9 rocket. Bangladesh’s motivation for owning a satellite is strengthening the foundation for economic development, conforming to the growing trend of developing countries investing in their own satellites. However, the capacity of developing countries to generate enough revenue for recovering the satellite expenditure is questionable, especially if the local market is already crowded. The trend also comments on the validity of the United Nations and international space treaties stressing on sharing of space exploration benefits. The rising number of space actors also brings to forth the pressing need to ensure sustainability of outer space.
The World Bank has classified countries into low income, lower middle income, upper middle income and high income sections. While none of the low income countries own a satellite, a number of lower and upper middle income economies have launched satellites. These satellites include communications, remote sensing and student satellites. The small satellites, based on the Cubesat standard, is allowing many countries to experiment with satellite building. These satellites are capable of carrying cameras and multispectral sensors for earth observation. India’s PSLV has captured global attention for launching these satellites.
However, developing indigenous sophisticated remote sensing or communications satellites is beyond the scope of majority middle income countries and they are therefore dependent on established players. Venezuela, Pakistan, Nigeria, Cambodia, Laos, etc., have given contracts to China to launch their first communications satellites. Only a few such as India, China and Russia represent the middle income group, with capacity to develop and launch satellites indigenously. India and China also offer cheaper launches compared to Western launchers.
Therefore, the aspiring countries are making efforts to indigenise satellite technology by partnering with established operators. For example, China is obliged to train the technicians from the ordering countries such as Venezuela, Bolivia, etc. However, a completely indigenous space programme is not possible without mastering the launch technology. Given the associated military-strategic implications, the spacefaring countries will not be inclined to readily share or train on this technology. Moreover, a new launch capable country means increased competition and dwindling business opportunities to established operators.
Given the economic conditions, the middle income countries also have to consider initial funding and operational expenses in addition to finding business opportunities. The contrasting stories of Nigeria and Belarus offer a good example in this scenario. Both launched their first communications satellites with China’s loans and technical help. However, Nigeria had to compel its state entities to utilise the satellite before it becomes a liability. On the other hand, Belarus launched the satellite with business motive and has already leased half the capacity to users.
Bangladesh also leases some of the capacity to its neighbours. But it is already a crowded market. It is imperative to find business opportunities, given that satellites are costly and some of them are built on foreign loans. It is interesting that the middle income countries have to obtain major loans for satellite services when the United Nations and the international space treaties emphasise helping the developing countries. It has been observed that a majority of Sustainable Development Goals can be achieved using satellites. The American GPS is free for use across the globe and also its Landsat earth observation data.
India has welcomed its South Asian neighbours to use its navigation satellite system free. However, it is hard to imagine communications satellites or earth observation images being offered free, across established players.
Still, it might be prudent to buy satellite data rather than launching one’s own. It seems these countries have calculated that it is economical over the long term to use their own satellites rather than depend on external operators. The launching of own satellites also awards political mileage to incumbent leaders or help support a geopolitical narrative. For example, Pakistan rejected the SAARC satellite and contracted China for its satellites. The African countries such as Ethiopia, Egypt, etc., can be seen using satellites as instruments for African leadership position.
While there could be more terrestrial issues behind the middle income countries owning satellites, it should be noted that outer space is getting crowded. The competition for geostationary slots and frequency is well known. Tracking of satellites and mitigating threats from natural and man-made objects should be given priority during the planning stage. The increasing number of small satellite operators, concentrating on imagery and internet services, might offer a cheaper and secured option, given their ability to scale better than the countries in discussion.
It is welcoming to see that more middle income countries are using satellite services in their economic development. A nuanced study for understanding the concurrent political, financial and space security implications, along with advances in business models across the globe, could be helpful in mitigating liabilities and fostering economic benefits.
The author is a Junior Fellow in the Nuclear and Space Policy Initiative of Observer Research Foundation, New Delhi. Views are personal.
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