Assessing Commercialization Strategies for Evolving Network Demand (Ascend) in the Nasa Space Communications and Navigation (Scan) Program

Abstract

What will NASA’s future communications demand and expenditure look like, in a paradigm where space policy encourages maximum private sector involvement? In this paper we consider this question, as NASA moves towards commercial procurement for Direct-To-Earth and Space Relay communication services. We develop a new quantitative Techno-Economic Assessment (TEA) model capable of evaluating the incremental cost over time to NASA of utilizing commercial communication services, for different mission and market scenarios. We find that current and future NASA demand could be viably procured from commercial services, with the potential to reduce cost using non-exclusive networks and the sharing of fixed costs. However, there is a key trade-off identified between maximizing economies of scale benefits and ensuring sufficient competition between communication providers to avoid collusion and excessive pricing. For example, procuring from 1-2 providers would maximize scale economies, whereas procuring from 5-6 providers would maximize competition. Given this context, it would be prudent to seek to award service contracts for 3-4 providers to optimize economies of scale benefits, while mitigating possible market collusion. These recommendations enable NASA to successfully achieve its scientific mission over the next decade, while managing limited financial and networking resources.

Keywords: Satellite, Communications, Low Earth Orbit (LEO), Commercial, Non-Terrestrial Networks (NTNs), Policy