EN   EN 
 
 
 EUROPEAN  
COMMISSION   
Strasbourg, 15.2.2022  
SWD(2022) 31 final  
 
COMMISSION STAFF WORKING DOCUMENT  
 
EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  
 
Accompanying the document  
Proposal for a  
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  
establishing the Union Secure Connectivity Programme for the period 2022 -2027  
{COM(2022)  57 final}  - {SEC(2022)  77 final}  - {SWD(2022)  30 final}   
 
 Impact assessment on the proposal on building an EU space -based global secure communication system  
A. Need for action  
Why? What is the problem being addressed?  
The megatrends of digital hyper -connectivity and technological transformation prompt an unprecedented increase 
of demand for services dependent on edge technologies , improving  safety, security and resilience . The rapidly 
evolving international system renders the global satellite connectivity a strategic asset for security and safety. At 
EU level, the g overnmental satellite communication needs are increasing quantitatively and evolving qualitatively , 
moving towards  higher security solutions, low latency and higher bandwidth. The core problem is thus a mismatch 
between these rapidly evolving governmental needs and the absence of available EU solutions (both at national 
and European level) in secure, reliable and dive rse satcom services, notably enabled by the technology -edge of 
Medium and Low Earth orbit . Main drivers comprise the hybrid and cyber threat level increase , the evolving nature 
of secure governmental satcom needs towards low latency and global coverage  as well as the absence of space 
assets’ capacity able to support the evolving needs. Member States' governmental actors are mostly affected with 
an impact to  the security and safety of all EU citizens. In addition, t he European space (including the New Space)  
and the digital industry competitiveness is also directly affected.  On a wider scale, this problem could affect the 
credibility of the EU and its MS as a security actor on the global stage.  
What is this initiative expected to achieve?  
The general objective is to safeguard the EU sovereignty and security by increas ing the  provision of resilient, 
global, guaranteed  and flexible  satcom solutions built on an EU technological and industrial base. Based on the 
EU GOVSATCOM and EUROQCI and a strict service -based approach,  the proposed initiative will be able to  fill 
several capacity gaps  mainly for governmental users , by providing higher security solutions, low latency and 
higher bandwidth . To this end l ow latency and higher bandwidth will be reached by deploying multi -orbital assets  
(LEO and MEO in addition to the existing GEO ); and enhanced security by quantum cryptography (EUROQCI). 
The system design together with an incremental development and deployment could start  as of 202 3. The 
deployme nt of the first new satellites and the utilisation of existing satcom  capacity would enable provision of 
initial services and in -orbit test of quantum cryptography  by 2024 -2025 . The full deployment of the space 
constellation with the integrated  quantum cry ptography  would allow full operational capability by 2027.  
What is the value added of action at the EU level?   
The objectives of the proposed initiative cannot be sufficiently achieved by Member States alone  as the scale and 
global dimension of the evolving needs and the related costs can be only addressed at EU level . Action and 
coordination at EU level would avoid duplication of efforts across the Union and Member States, and would 
increase synergies between existing and future capacity as well as civil, space and security communities . It would 
lead to a better exploitation of existing assets and thus economies of scale, greater security and resilience, 
notably through quantum cryptography, better geographical, uninterrupted coverage, and to provision of a greater 
array of flexible services.  All E uropean  citizens would directly benefit in the same way from the enhanced 
operational effectiveness of the  initiative.  
B. Solutions  
What legislative and non-legislative policy options have been considered? Is there a preferred 
choice or not? Why?   
To close the capacity gap in the provision of required governmental services, the following policy options were 
considered to achieve the objective in the most effective and efficient manner: First it was considered whether the 
EU could purchase these secure accredited services from established solutions by the public or private sector, 
currently limited to foreign market providers ( Option 3 – non EU constellation ). Although the EU satcom market 
is already well developed, there are currently no EU providers that can serve all the increasing and evolving 
governmental needs. Buying the services from non-EU private sources is from a security and a strateg ic 
autonomy point of view not preferred. Therefore, the EU  need s to act to ensure the provision of these services by 
either fully funding and procuring its own system (Option 1 – fully p ublic)  or establishing a public -private 
partnership ( Option 2 – in the  form of a concession ). The last option was considered to be the preferred option, 
striking the right balance between the security and reliability needs of the EU Member States and  the financial 
burden related to the deployment and operation of the system.  This option would also permit the private partner to 
deploy additional infrastructure elements to provide commercial services.  
 
 Who supports which option?   
The outcome of the public consultation and additional targeted consultations showed the following : 
 Several Member State stakeholders have provided positive feedback on the public -private partnership option, 
building on the integration of existing EU GOVSATCOM capacity as well as indications of national 
commitments towards the development of additional s atcom capacity.  
 The industrial stakeholders, both well -established industry and New Space ecosystem, have favoured the 
public -private partnership model, in view of the possibility to provide additional commercial services and 
accordingly invest.  
 Non-EU c onstellation operators have supported the option 3, where the Union would procure services from 
their system s. 
C. Impacts of the preferred option  
What are the benefits of the preferred option (if any, otherwise main ones)?   
The preferred option would allow the EU to obtain a space -based secure connectivity system  at a lower cost, as 
the Union would share the design, development and deployment with the private operator. The involvement of the 
private sector creates additional benefits; competition during the concession process  would enable innovative 
solutions and enhance the competitiveness of the EU industry. Further more , the concessionaire (s) will exploit the 
system for commercial services, hereby creating additional  benefits for the downstream sector . The development 
of a new system would contribute significantly to the EU industrial  economy  (for both upstream and downstream 
private actors) ; creating additional jobs and adding to the gross value added (GVA) of the Europe an space 
industry . Citizens would benefit from the technological advantages and reliability of satcom. The social footprint of 
satcom services could go beyond the strict governmental contexts and allow  breach ing the digital divide by 
providing broadband to  unconnected areas . 
What are the costs of the preferred option (if any, otherwise main ones)?                                 
A rough order of magnitude  of the  total cost of the infrastructure  is € 6 billion. A blending of funds in the form of  a 
public -private p artnership (PPP)  could be structured as follows: € 4 billion from the public sector ( EU and Member 
States) and € 2 billion  from the private sector.  
How will businesses, SMEs and micro -enterprises be affected?  
Space industry (including New Space): fostering innovation on upstream space technologies, launchers, and 
downstream applications  that will allow them to increase their global competitiveness. Digital industry: the  
exploitation of such a system  will allow  telecommunication  operators to benefit from the increased  capacity and 
reliable  and secure  service s. In addition, the commercial dimension will allow retail se rvices  to reach more 
customers across the entire EU . All other businesses w ill benefit from the s ecure and reliable connection, making 
them able to provide new services, less vulnerable to cyber threats and service disruptions.  
Will there be significant impacts  on national budgets and administrations?   
Under the preferred option, there will be no significant impacts on national budgets and administrations. The 
governmental users would have to adapt their equipment to benefit from the service. However, this does not entail 
a significant investment.  
Will there be other significant impacts?   
The preferred option would have a positive impact on the global competitiveness of the European space industry, 
particularly in the field of operations of multi -orbital and multi -satellite constellations. Furthermore,  the EU, by 
control over the system under the preferred option,  would ensure that it  is designed and operated in a sustainable 
manner, and in line with the existing standards on the protection of the space environment . 
D. Follow up  
When will the policy be reviewed?  
The system would be evaluated every fourth year based on dedicated KPI relevant to its ability to answer to 
identified capacity gaps of governmental user needs, guaranteed and uninterrupted access to secure satcom 
solutions and on the appropriate level of non -dependence of third countries.