5 minute read
Unlocking the skies: The crucial role of landing rights in satellite services
Alongside the technical and operational difficulties that must be overcome to set up and run a satellite communications service, navigating a complex regulatory environment is high on the list of issues operators face. One regulatory element, often shrouded in complexity, is the concept of “landing rights”. As satellite operators seek to expand their reach and deliver innovative services worldwide, landing rights emerge as both a critical enabler and a formidable challenge.
Matthew Evans, Director of Regulatory Affairs at River Advisers
Typically granted by national regulatory authorities, landing rights sit separately from other authorizations, such as the radio spectrum used by ground devices or gateways and the sale of telecommunications to users. They are also distinct from the International Telecommunication Union (ITU) filing procedures, which handle the registration and coordination of satellite networks on a global scale. While ITU registration is necessary, it does not eliminate the need for obtaining landing rights in every country where the satellite services will be deployed.
Landing rights are, in essence, permissions granted by a country for a foreign-owned satellite, or a constellation of satellites, to deliver signals or traffic into its national territory. These permissions are essential for satellite operators to legally offer their services within a specific jurisdiction.
A JOURNEY THROUGH TIME AND SPACE
The regulatory frameworks governing satellite landing rights have evolved significantly over the past few decades. During the 1980s, most satellite systems were owned by national governments or intergovernmental organizations like Intelsat and Eutelsat. These entities operated under “closed skies” policies, which restricted access to satellite capacity based on national ownership, ensuring that local providers used capacity from domestically owned systems.
However, the liberalization of telecommunications markets in the 1990s, coupled with the privatization of satellite systems and the emergence of independent operators, prompted a shift towards ‘open skies’ policies. Major World Trade Organisation (WTO) agreements on trade and telecommunications in 1997 and 1998 further catalyzed this shift, as countries committed to abolishing measures that restricted free selection between satellite resources. This move was aimed at fostering market competition, improving service quality, and reducing prices for end-users.
In Europe, the open skies principle was incorporated into the European Union’s regulatory framework through EC Directive 2002/77/EC, leading to the phasing out of landing rights across the continent. However, in many regions, particularly in South America, Asia-Pacific, the Middle East, and Africa, landing rights are still a regulatory requirement. The terminology and procedures vary widely across these regions, reflecting diverse regulatory environments and historical contexts.
NAVIGATING THE COMPLEX LANDSCAPE
For satellite operators, obtaining landing rights is a critical step in their business development process. The procedures vary significantly from country to country, involving different levels of technical detail, regulatory fees, and timeframes. In the United States, for instance, the application process is detailed and technical, while Saudi Arabia offers a more streamlined approach.
The challenges are particularly acute in rapidly growing markets. In India, one of the world’s fastest-expanding telecom markets, obtaining landing rights can take up to 18 months and involve multiple government agencies. This delay can significantly impact an operator’s ability to enter the market and provide services efficiently. Brazil, another key emerging market, has a regulatory framework for satellite landing rights that industry experts describe as “complex and time-consuming”.
The application fees also vary widely. In Africa, these range from as low as US$20 in Nigeria to over US$12,000 in Kenya. Some countries, including Brazil, Indonesia, and Mexico, also require that landing rights be obtained by a locally incorporated entity, forcing foreign satellite operators to either establish a subsidiary or partner with a local company. This adds additional complexity and expense to the process.
To complicate matters even more, satellite operators are continuing to face obligations to install gateways and other network facilities within certain national territories to comply with data security and legal interception rules. These requirements add regulatory, technical, and financial burdens for satellite operators, which often impact the supply chain.
THE NEED FOR REGULATORY REFORM
Despite the challenges, there is a growing recognition among regulators and governments that a simplified and efficient landing rights process can bring certain benefits. Streamlined procedures, such as registration databases, can enhance regulatory transparency, reduce administrative burdens, and foster a more competitive market environment. Simplified processes also help regulators maintain oversight of foreign satellite systems operating within their territories, ensuring service quality and security for resellers and end-users.
Recent developments in Argentina illustrate this trend towards simplification. In December 2023, the Argentine government issued a decree to institute a simplified, free “prior registration.” This change was part of a broader effort to stimulate market competition and address economic challenges in the country.
Similarly, Saudi Arabia introduced a foreign satellite registration procedure in 2022, aiming to balance regulatory oversight with market accessibility. These examples highlight a growing awareness of the need for regulatory frameworks that support the dynamic and evolving satellite industry.
THE PATH FORWARD
As the satellite industry continues to expand and innovate, the importance of clear and efficient regulatory processes cannot be overstated. Landing rights, while essential and unlikely to be phased out globally, should not become an insurmountable barrier to market entry. By adopting best practices and learning from successful reforms in other countries, regulators can perfectly meet their objectives while supporting environments that encourage investment, innovation, and competition.
For satellite operators, understanding the intricacies of landing rights and leveraging expertise in this area remains crucial. Engaging specialist advisers with practical experience and know-how of the complex regulatory landscape can help identify potential challenges early and develop strategies to secure the necessary permissions efficiently.
