Underpinning new business models: PPPs R. Cammoun, VP Public & Regulatory Affairs

Transcription

1 Underpinning new business models: PPPs R. Cammoun, VP Public & Regulatory Affairs

2 Introduction Outside Telecom, PPPs are rare in space Space projects: highly capital- and labour-intensive, long development time, technically and financially risky, markets are most of the time just budding (if they exist at all), expensive launch systems ROI, if there is one, happens only years after the call for interest But The current level of industry maturity in Europe establishment of large scale integrators and the privatisation of large satellite operators combined with the current global market pressures, and need of institutions to find cost effective solutions with new business models conditions increasingly favourable for PPPs schemes in space

3 Advantages of PPPs Public institutions: can save developments costs and reduce their investments in operational costs Private companies involvement of public partner can bring financial benefit and mitigate market risks Building long-term relationships between public and private partners Encouraging a more efficient and effective exploitation of the infrastructure

4 When to enter into a PPP? (1/4) 1 st Opportunity When the public side has no interest in owning an infrastructure but needs easy to define satellite-based services Example: Stratobus

5 1 st example: Stratobus

6 When to enter into a PPP? (2/4) 2 nd Opportunity When there is an opportunity to leverage a commercial service market, that will then generate revenues Example: Stella Marina

7 2 nd example: Stella Marina A constellation of 20 satellites (innovative radar concept + high performance AIS) launched in only 2 times, offering around 1 h revisit time worldwide to perform an efficient vessel tracking

8 When to enter into a PPP? (3/4) 3 rd Opportunity When the public side has an interest in delivering services to leverage economy but, due to a market failure, these services are not being deployed by the private sector Example: deployment of fast internet access capacities to offer efficient connectivity to every European citizen

9 3 nd example: VHTS - Very High Throughput Satellites Digital economy is growing fast and requires infrastructures able to support the associated explosion of data and videos The next generation VHTS technologies will have enough capacity to provide fast broadband internet access above 30 Mbps to users. They are the obvious choice to ensure the reach of Europe 2020 target in terms of fast broadband access

10 When to enter into a PPP? (4/4) 4 th Opportunity When the public partner enables the private one to incorporate a high degree of innovation in a future commercial product by mitigating the technological risk Examples: Existing ESA ARTES 33 Future H2020/Space IOV/IOD projects?

11 Key factors Existence of a direct ROI Level of technology innovation and service market maturity Cost of insurance / Public guarantee Duration of public commitment (satellite lifespan: years) Access of non-eu space companies to European PPPs?

12 Possible roles for the EC De-risking technologies to support industry competitiveness: IOD Anchor-tenant: Certain aspects of Copernicus or Govsatcom Stratobus Supporting industry access to investments EFSI for fast internet access «Central purchasing oranisation», to leverage a commercial service market Maritime surveillace Certain aspects of Govsatcom

13 Towards more creativity in public procurements New Public procurement directive / adapted Financial Regulation «Innovation Partnership» (art. 31 / art. 129) The contracting authority shall identify the need for an innovative product or service that are not yet available on the market. It provides information sufficiently precise to enable economic operators to identify the nature and scope of the required solution. The innovation partnership shall aim at the development of an innovative product or service and the subsequent purchase of the resulting supplies or services, provided that they correspond to the performance levels and maximum costs agreed between the contracting authorities and the participants

14 TAS is looking forward further contributing to ongoing reflections within the EC