A New Frontier: The Privatization of Space

by George McClure

Entrepreneurs have long eyed space in the hopes of exploiting its seemingly boundless commercial potential. When the space shuttle was first conceived as a “space truck” carrying payloads into orbit on a frequent schedule that would allow the shuttle cost to be amortized over many flights, it was hoped that the cost to orbit a payload would drop from $10,000 per pound to $1,000 per pound, at least with successor launch vehicles, such as single-stage-to-orbit [http://members.nova.org/~sol/station/planetar.htm]. Federal budget constraints reduced the number of NASA-sponsored space flights even before the loss of the shuttle Columbia in 2003, and successor experimental launch vehicle programs were being scaled back or canceled. But while NASA was cooling its jets, private entrepreneurs, electrified by incentives like the $10 million Ansari X Prize, were charging forward.

Paul Allen's Mojave Aerospace Ventures funded the recent pair of sub-orbital flights by SpaceShipOne, designed by Burt Rutan and sponsored by Sir Richard Branson. By completing two flights above 100,000 km (62 miles) within two weeks (the second one reached an altitude of 69 miles), their venture garnered the prize. Branson, owner of Virgin Atlantic Airways, is establishing a new company, Virgin Galactic, to satisfy travelers who want to fly out of the earth's atmosphere and experience the weightlessness of space for a fare of nearly $200,000 per trip [www.theallineed.com/news/0410/054514.htm]. They are designing a fleet of five, rocket-propelled, passenger space ships for the world’s first private commercial spaceship operation, scheduled to start in 2007.

Thus far, Dennis Tito and Mark Shuttleworth are the only space tourists to have taken a ride into orbit. They enjoyed a ten-day stay aboard the International Space Station, for which they paid $20 million each to the Russian space agency [www.gizmag.com/go/1318].

Robert Bigelow's plans to operate space hotels for private vacations have been delayed. But his Bigelow Aerospace has three “Space Act Agreements” with NASA permitting the exchange of personnel and technology, joint testing at NASA facilities, and transfer of NASA patents. Bigelow expects that eventually his space tourists may travel for as little as $50,000 to $100,000 each [www.lasvegasmercury.com/2004/MERC-Jul-08-Thu-2004/24250261.html].

Bigelow has established a $50 million prize, called America’s Space Prize, to encourage private orbital flight and pave the way for a piloted spacecraft to service his space hotels [www.bigelowaerospace.com].

House Science Space and Aeronautics Subcommittee chair, Rep. Ken Calvert (R-Calif.), says that U.S. commercial, civil and military space organizations must do a much better job of coordinating efforts to avoid duplication. He noted that each of the three major sectors of space activity — commercial, civil and military — has had successes and setbacks in recent years. Yet, unnecessary barriers between the sectors have prevented full cooperation — barriers that he said have no place in the post-Cold War era. In particular, he suggested that all three sectors need new launch technology at their disposal that would give them reliable, responsive access to space as affordably and as efficiently as possible.

Unmanned civil applications have taken off quite well, from communication satellites to navigation and positioning systems to remote sensing and surveillance systems. Last year, BusinessWeek magazine named commercial space as one of the top five innovative industries in terms of potential job growth, along with telecommunications, biotechnology, nanotechnology and energy.

According to Patricia Grace Smith, associate administrator for Commercial Space Transportation (AST) in the Federal Aviation Administration (FAA), commercial space transportation represents a critical sector to the U.S. economy, and to the states in which commercial space activities occur. AST is the only office in the federal government responsible for licensing, regulating and promoting the U.S. commercial launch industry. In 2004, AST licensed 14 commercial launches, nine orbital and five suborbital. Worldwide, there were six other commercial orbital launches, five by Russia and one by Arianespace.

Last year, AST completed a study on the impact of commercial space transportation and its corollary industries on the nation’s economy. According to the report, in 2002, commercial space transportation and related industries were responsible for more than $95 billion in economic activity, $23.5 billion in earnings, and 576,400 jobs.

Whether we're aware of it or not, we all experience the benefits of space transportation and its related industries daily. For example, commercial satellite imagery is used for mapping and agriculture; and satellite communications provides us with television, Internet, credit card purchasing, digital radio, and many other services that we take for granted today.

Source: AST's "Economic Impact of Commercial Space Transportation on the U.S. Economy"

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Adventure travel likely will be the forerunner to regular passenger transportation to and from space. A recent Japanese opinion survey found that 80 percent of those under age 40, and 70 percent of those under age 60 would want to travel into space at least once during their lifetime, and that 70 percent would allocate three months’ salary to the endeavor [http://aerospacescholars.jsc.nasa.gov].

The Commercial Space Launch Amendments Act of 2004 (P. L. 108-492) was signed into law in December 2004. The law supports advancements in commercial human spaceflight through a number of updates to the Commercial Space Launch Act of 1984 [http://spacetourism.blogs.com/space_tourism_news]. Among other things, the law directs the FAA to start shaping medical requirements for a commercial spaceship passenger [www.space.com/missionlaunches/050325_space_tourism.html].

In addition to licensing launches, AST is also responsible for regulating non-federal launch site operations in the United States. Before 2004, AST provided oversight for four, non-federal launch sites in the United States — in California, Florida, Virginia and Alaska. This year a fifth was added — Mojave Airport in California — to become the first inland launch site regulated by AST. Other potential launch sites in Oklahoma and New Mexico are working with AST on their applications.

Experts expect that, in the future, a network of non-federal launch sites throughout the United States will support a commercial launch sector that is responsive to national needs and emerging applications, including space tourism. Companies are already taking advantage of these potential opportunities by locating their operations near future launch sites. These new opportunities for orbital and suborbital launches could create the next giant leap for space transportation. The transition to a commercially driven and innovative launch sector will empower U.S. progress in space flight. The promise of suborbital, and eventually orbital, space tourism is beneficial to all users of our national aerospace system.

To dig deeper, see the AST report on the Economic Impact of Commercial Space Transportation on the U.S. Economy: 2002 Results and Outlook for 2010 [http://ast.faa.gov/files/pdf/2004Economic_Impact.pdf].

George McClure is chair IEEE-USA's Communications Committee, a member of the IEEE-USA Career & Workforce Policy Committee, and technology policy editor for IEEE-USA Today’s Engineer. Comments may be submitted to todaysengineer@ieee.org.