CONSULTENCY MANAGEMENT OF SPACE CAPTALIZATION

Consultancy Management of

Space Capitalization

MIB 2012

Sireesh PALLIKONDA

Rasha ITANI Karen PORTUGAL

Vineet TYAGI

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Why Space?

Is it just a fascination or business? Yes its more of a business than fascination What are all business that are dependent on the space satellites

• Internet • Telecommunication • Television and radio

broad casting • Transportation

(navigation) • Metrology • Agriculture planning

• Irrigation planning • Town/ Urban Planning • Disaster management • Costal and forest

conservation • Medicine • Tele-reach(education) • Space exploration and • Space travel

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How does this business works

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Why Privatization of Space

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Scope and Depth of Privatization

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Scope Depth

Only few countries have the capabilities of space launch 1. US 2. Russia 3. France 4. UK 5. Japan 6. China 7. India 8. Israel 9. Iran 10. Ukraine

As many as 1,185 satellites are to be built and launched by governments, companies and universities between 2009 and 2018. Revenue estimated is $178 billion

• Launching a satellite is 12-15% costlier in Europe, and 25-30% more expensive in the US. Russia used to offer launch services at rates comparable with India—but not any more.

• Consultancies helps satellite makers negotiate contracts with get regulatory clearances, besides transporting the communications device to the launch site.

WHICH GOVERNMENTS ARE TAKING INITIATIVE

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1. A pro-space government 2. An established professional infrastructure 3. An established base of space, aerospace and high tech

industries 4. Zero tax on space and satellite business 5. Access to orbital slots; and 6. Financial incentives and grant aid for businesses which create

new jobs on the Island.

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Operations

• Operations are considered one of the main zones to focus on. • True common language of business, the decision consists of a

complex set of functional components, technical and organizational.

Business Intelligence Software

• They are divided into main parts • Technical: tracking down the position and health of the

satellite at a given point of time. • Supply Chain: 5 W’s : Where,when,how,what,who? • Opportunities & Revenue Returns.

Anticipated results

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We believe in a parallel approach: Operational Performance Improvements : design of results-oriented projects and programs aimed at effectively realizing gains in terms of customer satisfaction, quality, speed, cost and risk.

Operational Performance Foundations : developing the building blocks

needed to Operational Excellence focused organization, with the required leadership, ownership, roles & responsibilities, and suitable underlying instruments.

Proposed advantages in cost and volumes

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Before privatization After privatization

The cost each launch for telecom company Is 1000 euros. Telecom companies have to depend on government launch stations for their satellites to get launched. In a single launch, they orbit one or two satellites and make a profit of 100 euros Markets were restricted and limited

The cost becomes 500 euros for each launch for telecom company. Launch companies will the autonomy to market themselves and increase their volumes of launch. In a single launch they can orbit 6 satellites and make a profit of 1500 euros. No restrictions This gives the competitive edge to the telecom-companies in reducing the price of their service and increase the volume of their customer base.

Organization, Systems and Process

EUTELSAT is a holding Company, the leading European satellite operator and one of the top 3, in the world “Where the space, telecoms and audiovisual industries converge, Eutelsat Communications is at the heart of the new challenges facing the digital economy with its ability to make broadband facilities available for people to access information worldwide” Wide range of services, has become an essential source of high performance and flexibility for telecommunications operators and companies in more than 150 countries. Counts with a fled of 28 satellites, operation in 20 positions on the geostationary satellite orbit, covering Europe, the Middle East, Africa and a large part of Asia and the Americas. The Group is based in Paris and employs a workforce of 700 people representing 30 different nationalities.

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Management Committee

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Michel de Rosen CEO

Committee Chairman

Michel Azibert Deputy CEO

Committee Deputy Chairman

Catherine Guillouard Chief Financial Officer

Jacques Dutronc Chief Development and

Innovation Officer

Izy Béhar Director of Human

Resources

Manuel Calvo Director of Operations

Francesco Cataldo Management of Resources &

Sales of Capacity Director

Ignacio Gonzalez Nunez Chief Risk Officer

Yohann Leroy Director of Strategy

Raphaël Mussalian Director of

Engineering

Jean François Bureau Director of Institutional &

International Affairs Jean François Bureau

Director of Institutional & International Affairs

Vanessa O'Connor Director of Corporate

Communications

Arduino Patacchini Director of Multimedia & Value-

Added Services

Ariane Rossi Director of Accounting, Controlling

& Corporate Finance

As Consultants:

Important information in order to:

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• An adequate communication - Know who to talk • Integrated and engage – Right people, right time, right place • Understanding of supply chain – Improve the production process • Knowledge of cross cultural differences • Loop holes (Weaknesses)

BUILD SKILLS

HOW TO BUILD SKILLS

Create a pilot team to train them “understanding the privatization process”

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Supplier’s Issues

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Shuttle and launch facilities logistics and supply chain will interfere with existing supply chain of industry targeted for equipment and component integration. Satellite and equipment manufacturing suppliers location has to be strategic from trade point of view to keep additional costs under control. Suppliers will have to adapt to new standards of technological requirements in their equipment.

People Religious organizations and their belief towards commercialization of space.

People perception and space tourism.

People’s belief and their faith in space technology , success rate so far at 92.7

% per launch

Employee’s belief towards their organizations new vision in space.

Economy Developing economies have keen interest in such projects , number of countries like Sri Lanka, Bangladesh and many small developing economies have vision to have their own launch capabilities.

Every dollar spent on Apollo Programme has brought back 15 USD , however absence of chronological quantified data are not abundant.

Space sector will create multifold growth on GDP of a economy as most industries targeted have to depend on space sector due to recent technological advancements.

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Competitors

What is nature of the added value created against the

competitors?

Who are the potential competitors?

What strategies can be used to establish and maintain

competitive advantage against existing competitors

Will the offering be superior to alternatives as provided by

competitors when they reach the market?

WHO LAUNCHES FIRST?

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Legislation and Auditing

The Outer Space Treaty 1967 The Rescue Agreement 1968 The Liability Convention 1972 The Registration Convention The Moon Agreement 1979 International Telecommunications Union (ITU) and by virtue of The Communications Act 2003 (orbit slotting) Technical auditing Financial auditing

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Science and Technology

Satellite once launched with existing technology cannot be replaced or upgraded. Future advancement will force the technology to change and hence need of international space stations will arise. Technological advancements and up gradations will be performed at such space stations followed by re entry to orbits

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Industries shift

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Agricultural revolution

Industrial Revolution

IT Revolution SPACE REVOLUTION

References : http://www.eutelsat.com/eutelsat/eutelsat.html http://www.eutelsatigo.int/en/eutelsat.php?menu=5 United Nations/Nigeria Workshop on Space Law, Abuja, 21 - 24 November 2005 LEGAL FRAMEWORK IN SUPPORT OF COMMERCIALIZATION OF OUTER SPACE: THE CASE OF THE ISLE OF MAN Space and Society: Bringing the Benefits of Space Technology to Earth” (In Observance of World Space Week – 4-10 October) OECD Global Forum on Space Economy www.oecd.org/futures/space http://www.eutelsat.com/investors/documents.html http://www.eutelsat.com/news/compress/en/2010/pdf/PR3510-Annual-Results-2009-2010.pdf http://www.gao.gov/assets/120/111523.pdf http://www.gov.im/ebusiness/spacesector.xml http://www.youtube.com/watch?v=cfSaztUiw5s

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