MSS Provider Selection For Pan-European Comm Services Starts

According to Futron in a 2008 report, the satellite industry is a 77 billion euros market worldwide, growing at 16 percent in 2007. Of this, satellite services alone generated approximately 38 billion euros in global revenue. European companies represent an important force on this market: the European space industry holds 40 percent of world markets for manufacturing, launching, and operating satellites. Furthermore, Europe is home to three of the five largest satellite system operators in the world. A competition for providers of communication services via satellite across Europe has been launched by the European Commission (EC). Satellite operators will, for the first time, be able to offer services such as high speed data, mobile TV, disaster relief, and remote medical services under a single European selection procedure rather than via 27 different national systems. This is made possible by a new EU decision on mobile satellite services (MSS) that entered into force this past July. MSS use radio spectrum to provide services between a mobile earth station and one or more stations, either in space or on the ground, at fixed locations. They have the capability to cover a large territory and reach areas where such services were previously not economically viable.


The new European selection procedure could allow companies to offer innovative wireless services throughout Europe over a specifically reserved spectrum as of 2009. This competition among satellite operators launched by the EC is a first, as it takes place under a single European selection procedure. Until now, in spite of the clear cross-border dimension of satellite services, existing national rules obstructed the creation of a single market for mobile satellite services by leaving the selection of operators to each Member State. The result was a divergence in national approaches that created a patchwork of procedures, legal uncertainty and a substantial competitive disadvantage for the satellite industry in Europe. To remove these obstacles, the Commission proposed on August 22nd of 2007, on the basis of its single market competences, a new EU decision under which a single selection procedure for mobile satellite services can be organized at European level (IP/07/1243). This decision was adopted by the European Parliament and the Council and establishes common EU rules for the use of the 2 Ghz bands by mobile satellite services. Interested companies have until October 7th, 2008 to present their applications to the EC. During the first phase of the selection process, technical and commercial ability of the candidates to launch their systems in time will be assessed. Depending on the number of candidates, the Commission expects that the selection procedure can be completed in the first part of 2009. First satellite launches could take place in 2009.