Smith International Legal Consultants, P.A.

The demand for digital televisions and cellular phones with 3G and 4G capabilities in Latin American is increasing rapidly. Meeting the demand requires the use of commercial satellites. With the help of China, many Latin American countries have answered the call by contracting for the construction of their very own commercial satellite. And while the purpose or the funding for these satellites is grabbing international attention, the issue hovering over Latin America is how to avoid a space jam.

First, a background on the past helps. Historically the cost to construct a satellite was astronomical and the ability to launch it was non-existent. In response, industry giants like Comsat and Intelsat were able to fill many orbital slots with their satellites. Countries without their own satellites bought or borrowed satellite capacity from these operators. Inevitably small companies and university research groups designed the technology to build smaller and cheaper satellites accessible to everyone for the right price. And with that came the boom in the private sector for satellite construction. Now Venezuela, Colombia, and Bolivia have started funding and constructing their own satellites.

Placing a satellite into orbit requires an orbital slot. The International Telecommunication Union (ITU) is an agency of the United Nations responsible for assigning orbital and electromagnetic positions (or slots) worldwide. When a satellite operator wants to develop a communications system, it reaches out to the ITU to request assignment of a certain frequency or geostationary orbital position. Requests are generally handled on a “first-come, first-served” basis. Presently, the orbital positions above Latin America are occupied. But the private commercial launch industry maintains there is ample capacity and space in the market to support existing satellites and projected demand

It appears Venezuela and Colombia have not secured orbital positions over their respective countries. Venezuela is borrowing Uruguay’s satellite position and Colombia is still negotiating its own space. Bolivia has been told by the ITU that the position it wants is overcrowded. But China (planning to launch 100 of its own satellites soon) and the private sector remain undeterred in their willingness to fund and build because even without assurance of an approved orbital position the demand is sky high.

If you are imagining rogue satellites colliding into each other in outer space, you are correct. The most common problem with satellites is launching them. According to the Space Liability Convention, when an object is launched from a country’s territory, that country is absolutely liable to pay “compensation for damage caused by its space object on the surface of the earth or to aircraft in flight," where fault is established. Even if the launch is private, the government is held liable for damages caused by any launched object that collides into another or causes damage by way of disruption to other satellites. This might explain why governments elect to jockey for position rather than defy the norm by launching a satellite without the rights to the orbital position.

So what’s next for Latin American satellites? Demand is going to grow, more private companies will fight for space, and the potential for a vibrant sector is on the horizon.

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