Workshop Outline
U.S. Market Access –A U.S. Regulatory Cheat Sheet for Space & Satellite Companies 1. Introduction/Key Takeaways: SMRH attorneys will provide a concise overview of the regulatory considerations for small satellite operators entering the U.S. market, focusing on the FCC’s regulatory framework, as well as national security considerations including the Committee on Foreign Investment in the United States (CFIUS), Team Telecom, the potential need for a remote sensing license from the National Oceanic and Atmospheric Administration (NOAA), and government contracting considerations. 2. FCC Regulatory Regime. Three FCC licensing options: U.S. market access under Part 25, a Part 25 “SmallSat” authorization, and a Part 5 STA/license. • Part 25 Authorization. A full commercial authorization, this is the lengthiest application process that can take anywhere from six months to well over a year. This authorization requires disclosure of all 10% or greater owners, as well as legal and technical narratives, as well as completion of the FCC’s “Schedule S” technical annex—a notoriously cumbersome filing system for technical data. • SmallSat Authorization. A streamlined process, a SmallSat Authorization can be obtained in < 6 months, depending on the complexity of the system. This option can be beneficial for small spacecraft with planned non-Earth orbiting missions, such as commercial lunar missions. The number of satellites is capped at 10 satellites, with a maximum orbital lifetime of six years (including de-orbit). Ownership information must still be disclosed. • Part 5 License or Special Temporary Authority. The quickest process to obtain launch authority, these authorizations can often be obtained in 3-6 months. Ownership information is not disclosed, but a full technical description of the system (including an ODAR and interference analysis) is required. Certain spectrum bands (e.g., X-band) can often present challenges. These authorizations can later be converted into full Part 25 authorizations. 3. CFIUS/Team Telecom. For M&A transactions that involve U.S.-based assets or operations, foreign buyers often are required to seek CFIUS approval of the transaction. Similarly, the FCC can refer market access applications to the collection of U.S. Executive Branch agencies known as “Team Telecom” to review the national security and law enforcement implications of a Part 25 application. Team Telecom is a lengthy, extensive review process that can add 6-9 months to the application process. 4. NOAA. If a constellation or satellite will image the earth, a NOAA license may be required. Typically, operators will consult with the Commercial Remote Sensing Regulatory Affairs division prior to filing a license application. While NOAA has up to 60 days to process applications, NOAA has recently been processing licenses more quickly, with an average review time of 14 days in 2023. NOAA has three tiers of licenses, ranging from Tier 1 (least stringent) to Tear 3 (most stringent). Recently, NOAA has loosened restrictions imposed on many operators licenses, enabling higher-resolution imagery and other services. 5. Government Contracting Considerations. Non-U.S. satellite operators face some unique considerations when selling space-based services to USG. These can include the need to obtain facility security clearances, setup proxy companies, and address specific “flow-down” contractual conditions. We will also cover aspects of the small business innovation research program, or SIBR, which is a government funded research and development program many small satellite operators seek to utilize to kickstart their business.
