Possible regulatory initiative on earth observation satellite data for commercial purposes: Ways ahead
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1 Possible regulatory initiative on earth observation satellite data for commercial purposes: Ways ahead Space Policy Expert Group 18/07/2013 DG ENTR/G1 1
2 Context 1. High and very high resolution satellite data is subject to control by national authorities for security reasons. 2. HRSD is a growing business. 3. Are the framework conditions ideal for business to grow? 2
3 Consultation and internal process Consultation of MS: started in 2011 Consultation of legal experts in March 2012 Two studies finished in August 2012 and April 2013 Bilateral consultation with industry Online questionnaire targeting data resellers: June-July 2013 Public hearing July 2013 Internal Impact Assessment started April 2012 possibly finished in September 2013 Inter-service Consultation possibly followed by Commission proposal November
4 Problem: Market development thwarted by lack of transparency, predictability and equal treatment (1) What is high resolution satellite data? Definition? Without HRSD definition and no mechanism to update the definition not possible to know with certainty if data subject to regulation 60% of respondents to online questionnaire consider it would be useful to have standard threshold (definition) What are the criteria and the procedure to determine whether HRSD needs to be further scrutinized for security reasons? Data reseller consider this a problem as they cannot guarantee reliable service supply to customers, Criteria may be different so data resellers can be treated differently 70% consider helpful to know the technical criteria 60% helpful if criteria were identical across Europe 4
5 Problem: Market development thwarted by lack of transparency, predictability and equal treatment (2) What are the process whereby HRSD is scrutinised to determine whether it can be released? How are these decisions made? Who are the actors in this process? Data resellers complain that lack of transparency is damaging for business continuity. Business is lost when decisions are made late. 75% consider that access should be faster 60% respondents to on-line questionnaire consider helpful greater transparency when requests are refused 90% consider useful to know precisely how long it will take for a data request to be fulfilled (or rejected) 5
6 Problem: Market development thwarted by lack of transparency, predictability and equal treatment (3) How can we ensure transparent conditions for access to HRSD? Nationality plays a role in HRSD distribution 20% of online respondents consider that location of business may be an obstacle to HRSD access What are the conditions to get into the data-providing business? No possibility to become a data providers if your business is not registered in the MS with regulatory framework. 65% of respondents of the questionnaire would be interested in becoming data providers. Rules to become data provider are unclear 6
7 Elements for common approach 1. Definition of HRSD 2. Procedure and security criteria for the screening of data transaction defining "sensitiveness" 3. Basic standards for an authorization-procedure for requests flagged as being "sensitive" 4. Obligation of non-discrimination 5. Common criteria for licensing obligation and conditions for data-providers 7
8 Elements potentially addressed by a EU initiative (1) 1. Technical parameters defining HRSD Defined through the "information content" of acquirable data As a consequence of the capabilities of sensors (spatial resolution, spectral resolution/coverage, Capabilities of the HRS-system (temporal resolution, revisit time) 2. Procedure and criteria for determining which data transaction is sensitive and would therefore need authorisation: Procedure and criteria would be published, to guarantee transparency and legal certainty To be suitable to automatic implementation (avoid burden, guarantee certainty) To be regularly updated 8
9 Elements potentially addressed by a EU initiative (2) 3. Basic standards for authorisation-procedure to determine whether HRSD can be released or not: Set a target time-to-decision for releasing or withholding HRSD request. Precise criteria and competent authority to be defined by MS 4. Obligation of non-discrimination of data resellers 5. Standard criteria for licensing: Reliability, technological standards, security procedures for handling data etc. Licences issued by national authorities mutually recognised 9
10 Summary of elements and options Key elements Uniform definition of HRSD Opt X? R R Uniform procedure and criteria for data screening, defining «sensitiveness» X? R R Basic standards for authorisationprocedure to determine whether HRSD can be released or not X? R R Obligation of non-discrimination of data resellers X? R R Common licensing-standards for operators and data-providers X? X R 10
11 Option 1: Baseline scenario Option 2: OMC Option 3: Basic legislative instrument Option 4: Extended legislative instrument Strengths There would be no immediate change, no adaptation needed. Depending on the unpredictable outcome of OMC, in the best case, almost equal to option 4. Economically beneficial due to a higher level of transparency, legal certainty and business predictability, fostering competitiveness. In addition to option 3, more competition on data provider market and fostering competitiveness. Weaknesses Fragmentation of regulatory frameworks and of markets will remain and grow, if more MS will establish their own regulations. Deficits in transparency and predictability of different legal frameworks will remain. Depending on the unpredictable outcome of OMC, in the best case, almost equal to option 1. Less competitive businesses in individual MS could suffer by being exposed to more competition and eventually give up their activity. Same as option 3. 11
12 Thank you very much for your attention! 12
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