COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT GOVSATCOM Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the space programme of the European Union, relating to the European Union Agency for Space and repealing Regulations (EU) No 1285/2013, No 377/2014 and No 912/2010 and Decision 541/2014/EU
Date: 2018-06-06
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: EU office or agency, EU programme, European Space Agency, extra-atmospheric space, satellite communications, satellite navigation, space policy, space technology, use of outer space

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.6.2018  SWD(2018) 328 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  GOVSATCOM Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  establishing the space programme of the European Union, relating to the European Union Agency for Space and repealing Regulations (EU) No 1285/2013, No 377/2014 and No 912/2010 and Decision 541/2014/EU {COM(2018) 447 final} - {SWD(2018) 327 final}  
 
 
Impact  assessment  on:  Proposal  for  a  Regulation  on  the  Creation  of  a  Program  for  Secure  Satellite 
Communications for Governmental Users (EU GOVSATCOM) 

Executive Summary Sheet 

Why? What is the problem being addressed? Maximum 11 lines 

A. Need for action 

The  challenging  operational  environment  for  European  security  actors  is  increasingly  hostile,  and  new  threats 
and  risks  emerge  constantly.  In  parallel,  the  requirements  for  secure  satellite  communications  by  public 
authorities  at  national  and  EU  level  also  evolve  rapidly.  Today,  there  is  a  mismatch  between  these  risks  and 
needs and the limited available solutions, which are often fragile, inappropriate, and/or not secure enough. This 
mismatch  will  increase  and  creates  risks  to  key  missions,  security  operations  and  infrastructures  of  the  Union 
and  its  Member  States.  The  main  drivers  are  the  fragmented  supply  and  demand  for  secure  satellite 
communications (SatCom), the fact that critical security needs of many users are not or  not fully met, and  the 
changing environment in terms of threats (e.g. cyber) and technology developments.  
Affected stakeholders are the security actors at the EU and national level, such as military and police forces, the 
maritime community, and services in charge of external action, civil protection and humanitarian aid, as well as 
operators  of  key  infrastructure.  Industry,  including  satellite  operators,  manufacturers  of  space  and  ground 
infrastructure, and service providers are also affected.  

What is this initiative expected to achieve? Maximum 8 lines 

The initiative will ensure reliable access to secure and cost-effective SatCom capacities and services for EU and 
national authorities who manage security-critical missions and infrastructures. It will cover the costs for setting up 
and  running  a  new  "GOVSATCOM  Hub"  -  the  necessary  ground  infrastructure  to  seamlessly  interconnect  the 
multiple  users  and  providers  of  secure  SatCom  –  and  the  operational  costs  for  the  SatCom  capacities  and 
services provided to authorised EU and national users. 

What is the value added of action at the EU level? Maximum 7 lines  

Current and future security risks affect the EU as a whole and MS. Only some MS own secure communication 
satellites, but the majority of MS and EU institutions do not. EU action and inherent economies of scale will lead 
to  improved  user  access,  reliability,  resilience,  security  and  cost-effectiveness.  This  will  generate  more  civil-
military  synergies,  more  coherence  and  better  coordination  between  EU  and  MS  efforts,  and  greater  EU 
autonomy. Industry will benefit from a more stable and predictable environment that will stimulate innovation and 
R&D,  thereby  enhancing  the  competitiveness  of  the  EU  space  industry.  Citizens  will  benefit  from  enhanced 
security. 

B. Solutions 

What  legislative  and  non-legislative  policy  options  have  been  considered?  Is  there  a  preferred 
choice or not? Why? Maximum 14 lines  

In addition to the baseline-scenario, we have analysed four options. All options build on an aggregation of user 
demand  at  EU  and  national  level,  on  security  accreditation,  and  on  the  implementation  of  a  smart 
"GOVSATCOM  Hub"  that  will  interconnect  the  multiple  suppliers  and  users.  The  options  differ  on  the  supply 
side. Since neither commercial nor national satellites (Options n° 1 and 2) can provide the full solution, two more 
options are considered. Both combine the supply from national and security-accredited commercial sources, and 
address possible longer-term shortfalls at a later stage: either via a Public-private partnership between EU and 
industry (Option n°3), or through EU-owned assets (Option n°4).  

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
Option n°3 provides the most effective and diversified solution in terms of access, security, and geographic and 
frequency  cover,  for  both  all  users.  This  option  also  allows  using  existing  user  equipment,  is  flexible  and 
scalable. It will not distort the existing commercial SatCom market, and enable the EU to act as a major anchor 
client. Service-delivery will be more cost-effective thanks to the built-in economies of scale, and if needed, the 
partial investment from the EU through a PPP. The PPP approach promotes innovation by sharing technology 
risks. The overall costs are equivalent or lower compared to what the current governmental SatCom users will 
have to pay anyhow in fragmented markets, so the EU added value is considerable. 

Who supports which option? Maximum 7 lines  

There is broad support for the options by all stakeholders, but overall Option n° 3 scores best: MS and EU actors 
without  access  to  secure  SatCom  will  be  much  better  served,  while  MS  with  national  assets  can  sell  surplus 
capacities  and  gain  access  to  redundancy  and  additional  services.  All  industry  stakeholders  favour  a 
'confederating'  or  'anchor-client'  role  of  the  EU,  notably  to  aggregate  the  user  demand,  to  harmonize  security 
requirements,  and  to  stimulate  EU  autonomy,  innovation  and  R&D.  Satellite  operators  and  service  providers 
reject Option 2 (MS assets only) and prefer the more commercial Options n° 1, 3 and 4. The European space 
manufacturing  industry  supports  all  4  options,  arguing  that  an  EU  anchor  client  together  with  stringent  EU 
autonomy-  and  security  requirements  will  lead  to  greater  demand  for  EU-made  satellites.  Industry  as  a  whole 
also appreciates the resulting innovation that will enhance its competitiveness on the global market.  

What are the benefits of the preferred option (if any, otherwise main ones)? Maximum 12 lines                                       

C. Impacts of the preferred option 

On the basis of the various  studies, targeted stakeholder consultations, and bilateral discussions  with MS and 
industry, the initiative will generate significant positive impacts in terms of: 

  Security:  guarantee  of  access  and  information  assurance  for  all  users,  in  particular  for  MS  without 

national assets. 

  Defragmentation benefits for users: ensured SatCom access, more frequencies, and better geographic 

coverage. For industry: more predictable and stable EU markets, new (anchor) clients. 

  Economy: cost-effective solutions by economies of scale.  
  EU  autonomy:  availability  of  more  and  better  European  SatCom  capacities,  and  less  dependence  on 

third countries; 

  Competitiveness: positive impact on competitiveness of the EU space sector. 
  Direct and indirect social benefits for European citizens, as police, military, border guards, civil protection 

services, etc. have the tools to operate more effectively.  

  More effective EU External Action worldwide, including CSDP operations and humanitarian aid. 

What are the costs of the preferred option (if any, otherwise main ones)? Maximum 12 lines                                       

In the fully operational stage, the programme could cost up to 100-150 M€ per year from the EU budget, based 
on identified user  needs. The build-up phase will cost up to 100 M€; if required, an  additional budget for gap-
filling  space  infrastructure  could  be  foreseen  from  2025  onwards.  Beyond  the  program  costs,  no  negative 
impacts on the economic, social or environmental side are expected. There are no compliance costs.  

How will businesses, SMEs and micro-enterprises be affected? Maximum 8 lines 

The  aggregation  of  demand  and  the  establishment  of  EU  GOVSATCOM  security  standards  will  have  positive 
effects  on  businesses.  It  will  in  particular  reduce  the  cost  of  doing  business  for  the  private  sector  (EU  as  an 
anchor client, instead of hundreds  of ad hoc contracts). The user-base will be larger thanks to new users and 
applications,  and  will  also  be  more  stable  and  predictable.  This  will  stimulate  innovation  and  R&D.  The  PPP 
approach will favour private investments due to the sharing of technology risks. 
The impacts on SMEs (and micro-enterprises) are generally evaluated as limited. However, given their essential 
role  for  innovation,  specific  rules  to  facilitate  their  involvement  in  EU  GOVSATCOM  procurements  could  be 
beneficial. 

Will there be significant impacts on national budgets and administrations? Maximum 4 lines 

2 

 
 
 
 
  
 
 
 
 
  For  MS  with  national  SatCom  satellites,  moderate  positive  impacts:  better  service  for  security  actors, 

greater resilience, and possibility to sell surplus capacity.  

  For  MS  without  national  capacities,  strong  positive  impacts:  better  service  for  security  actors,  greater 
resilience thanks to guaranteed access to secure SatCom solutions at EU-level that would be very costly 
or impossible to afford on a national level. 

Will there be other significant impacts? Max 6 lines  

No  significant  other  impacts  have  been  identified  during  the  impact  assessment,  in  particular  with  regard  to 
fundamental rights or regional/international aspects. Industrial stakeholders have flagged the potentially positive 
effects of harmonized EU Security standards which could lead to more contracts for accredited European firms; 
compliance could become a commercial selling point for similar services worldwide. 

When will the policy be reviewed? Maximum 4 lines  

D. Follow up 

The  Program's  performance  and  evolution  should  be  monitored  regularly  to take  evolving  demand  and supply 
into account, and to react to new threats and risks. Adequate provisions to this end, such as implementing acts 
for the service portfolio and a mid-term program review, should be included in the draft Regulation. 

3