Exploring the Unknown - NASA's History Office

types of vegetation and resolution higher than that provided by the current Landsat system.
State and local governments, requiring data for land use management and protecting
environmental quality, request higher resolution over urban and suburban areas and
time-series analyses to detect detailed changes. The U.S. mineral extraction and related
industries call for stereoscopic 5 capabilities, global coverage, thirty to forty meter resolution
and processing of data within a few weeks. Foreign users[’] interests appear to be similar
to those of their U.S. counterparts, although area coverage requests obviously differ.
Further analysis and sorting of these requirements with respect to resolution, spectral
bands, stereo coverage, frequency of observation and timeliness of product delivery will
be necessary as plans are developed for the operational system.
Performance Options for the Fully Operational System
Hypothetical system performance options have been identified to meet some or most
of the preliminary user requirements identified above. These options range from designing
a system with capabilities similar to the Landsat 3 with MSS only, at an estimated 10-year
cost of $1 billion, to building a new system which meets most of the currently stated user
requirements, including two meter resolution, at an estimated 10-year maximum cost of
$10 billion. 6 Stereo coverage can be provided at an additional cost of up to $700 million.
A final decision on the system design to be pursued for the Fully Operational System
can be reached only after further analysis of user requirements, technical options, cost
comparisons, system financing, and the effect of potential foreign competition.
[9] Revenues, Pricing Policies and Financial Assistance
EXPLORING THE UNKNOWN 301
Reliable projections of revenues from sales of standard data products, and from the
direct reception fees to be paid by foreign ground station operators cannot be made at
this time since the characteristics of the Interim and the Fully Operational Systems, the
users’ level of demand at various prices, the impact of a market expansion program and
the impact of foreign competition are not now known. Tentative projections indicate that
this system may not and probably will not be self-financing before the end of the century.
Therefore, continued Federal financial contributions to support of the system likely will
be necessary for the foreseeable future.
System revenues, generated by the sale of standard data products and foreign ground
station access fees, now amount to only $6 million 7 a year. 8 Current fees consist of a nominal
$200,000 access fee for foreign ground stations and cost of reproduction charges for
standard data products—$200 for a computer compatible tape and between $8 and $50
for various types of Landsat images. The projected costs of the Fully Operational System
range from $100 to $400 million a year. To achieve the objectives for the sharing of costs
by users, and for the eventual ownership and operation by the private sector, prices must
be increased to cover, over time, the capital and operating costs of the system and the data
and data products treated in a proprietary manner.
The system’s manager could charge three types of fees for data and standard data
5. As used in this context, stereoscopic means two or more images, taken from different angles, to permit
inference of the relative height of various topographic features.
6. All costs are in FY 1980 dollars.
7. All revenues are in FY 1980 dollars.
8. This figure includes $2.7 million from sales, $1.8 million from foreign ground station access fees
and $1.3 million attributed to the value of the data distributed without charge to Federal agency users.