Privatization Issues

Private Space Program

Industry analysts claim thousands of private businesses have sprung up over the past decade to develop nongovernment space services ranging from satellite communications and navigation systems to utilizing space as a mausoleum for deceased humans.

  • In 1996, some $77 billion was spent on space commerce -- 53 percent of which came from private industry.

  • In 1997, private industry financed 42 commercial launches -- compared to 41 government-sponsored military or research launches, some of which included commercial cargo.

  • Most commercial traffic comes from satellite television and personal communications services -- including the global satellite positioning system which can pinpoint an individual's location at any point on the globe.

  • Two firms are creating small aerospace planes to take a half-dozen passengers to the edge of space and experts predict private vehicles will be able to take passengers into orbit within a decade -- as part of a space-adventure vacation.

The U.S. is currently lagging behind many nations in some space commerce areas because of bureaucratic restrictions, observers report. For example, a remote sensing industry wants to sell people pictures of their houses from space, but the State Department is concerned that might constitute a national security risk.

Aerospace companies would also like to develop reusable launch vehicles, but the agency which issues licenses to launch vehicles does not issue licenses to land them.

Source: Alcestis "Cooky" Oberg, "Who Needs NASA? Private Sector Can Do It Cheaper," USA Today, April 6, 1998.


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