Exploring the Unknown - NASA's History Office

principal institutional options discussed in the document are:
(1) A private corporation (or consortium) selected competitively to own and operate
all or part of the civil operational land remote sensing satellite system and to sell
data to Federal agency users under a guaranteed purchase contract;
(2) A for-profit private corporation, authorized by Federal legislation, with private
equity and privately and publicly appointed Board members;
(3) A wholly-owned government corporation authorized by Federal legislation, with
Government equity, reporting to the Secretary of Commerce, with provision for
subsequent transformation to a private stock corporation as system revenues
warrant; and
(4) Federal agency ownership with private contractor operation, and provision for
subsequent transfer to a private sector owner as system revenues warrant.
Options 1 and 2 offer the earliest possibilities of private sector ownership and assumption
of risk. Options 3 and 4 delay implementation of private sector ownership until the
next decade.
[12] These options will be examined by the Administration over the next several months
to evaluate which alternative best serves the Federal, state and local government and private
sector interests in having an operational land remote sensing satellite program.
2. Establishment of Federal Policy to Encourage Private Sector Investment
Several policies impact the likelihood or willingness of the private sector to own the
operational system. For example, under present policy, a system owner has no ownership
rights in the Landsat data and standard data products. Without a change in this policy, a
private owner would be denied the opportunity for profitability; therefore the Federal
government would have to authorize the private sector to own and sell civil operational
land remote sensing satellite data and standard data products on terms that eventually
permit a reasonable return on investment. Other factors that affect private sector investment
are competition from ongoing Federally funded R&D land remote sensing satellite
systems and the duration of the Federal government’s financial commitment to the land
remote sensing satellite program. Conversely, a private system owner should be required
to abide by the government policy of widest practical dissemination of data and standard
data products on a public nondiscriminatory basis at prices that are consistent for domestic
and foreign users.
3. Regulation of Private Sector Operation
A private owner of the land remote sensing satellite system could enjoy a monopoly.
To protect the national interest, the private owner’s activities should be regulated to the
extent necessary to conform to national space and other domestic and foreign policy
objectives. A private or government entity owning the operational system should be
required, for example, to comply with international treaties such as the Outer Space
Treaty for the conduct of peaceful activities in outer space; continue the widest practical
dissemination of data and standard data products on a public nondiscriminatory basis;
meet the needs of U.S. government users; and refrain from misuse of insider knowledge
obtained from the land remote sensing satellite data.
Market Expansion
EXPLORING THE UNKNOWN 303
The system manager should undertake a market expansion program to increase revenues,
reduce required Federal [13] financial assistance, and enhance decision-making
through the use of land remote sensing satellite data. An important element of this program
is assuring continuity of land remote sensing data.
A market expansion program for the operational system can build on the types of