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
Date: 2022-02-15
Institutions: Directorate-General for Defence Industry and Space, European Commission
Subjects: EU programme, European security, critical infrastructure security, information security, provision of services, satellite communications, space policy, space technology, use of outer space

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   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 governmental 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 diverse 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, the 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  increasing  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 low 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  2023.  The 
deployment  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 cryptography 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  European  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  strategic 
autonomy point of view not preferred. Therefore, the EU needs to act to ensure the provision of these services by 
either  fully  funding  and  procuring  its  own  system  (Option  1  –  fully  public)  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 satcom 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  constellation  operators  have  supported  the  option  3,  where  the  Union  would  procure  services  from 

their systems. 

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. Furthermore, 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  European  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  breaching  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 partnership (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  services.  In  addition,  the  commercial  dimension  will  allow  retail  services  to  reach  more 
customers across the entire EU. All other businesses will benefit from the secure 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.