Benchmarking Financial Models of Earth Observation Commercial Operators
- Paper number
IAC-09.B1.5.7
- Author
Mr. Adam Keith, Euroconsult, Canada
- Coauthor
Mr. Steve Bochinger, Euroconsult, Canada
- Year
2009
- Abstract
Following the launch of IKONOS in 1999 the commercial Earth observation sector has expanded rapidly with an increasing number of commercially operated EO systems. Given the relative age of the commercial satellite market for Earth observation the industry is still considered immature. This is highlighted by the differing financial models adopted by the varying actors with not one preferred model. Indeed it is considered that all the existing commercial operators have adopted markedly different financial structures. GeoEye for instance stands alone as the sole publicly listed company as DigitalGlobe looks towards a potential IPO with current private investment. Europe and Canada on the other-hand has veered more towards the PPP with RapidEye and Infoterra – the former including private equity the latter through the parent company. Canada similarly funded Radarsat-2 under a PPP with MDA with the government supplying funding under a data pre-purchase agreement. In addition, these commercial-operators are being challenged by commercialization of government-owned satellites. Telespazio for example through e-GEOS will distribute COSMO-Skymed products and services offering further competition to the data market. Furthermore an increasing number of government satellite systems are seeking to commercialize data as it offers a direct return on the initial investment placed. The primary objective of these companies however remains the same – obtain revenues from the commercial satellites through the sale and distribution of imagery. They compete internationally to sell data for ranging applications. Government is considered the first market for data with defense and homeland security the first application area. However with this increasing supply of operational data services will look to emerge and drive the market forward. Considering this how would a new operator be able to enter the Earth observation market, which model would be preferred? What are considered the overall costs and requirements to develop an EO system in order for it to compete in this expanding sector? And which customers are required to provide a suitable base for business in order for the company to become profitable and continue to grow?
- Abstract document
- Manuscript document
(absent)