PLANNING FOR A CIVIL OPERATIONAL LAND REMOTE SENSING SATELLITE SYSTEM: A DISCUSSION OF ISSUES AND OPTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP10M02313R000703980023-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 129
• Document Creation Date: December 23, 2016
• Document Release Date: July 9, 2012
• Sequence Number: 23
• Publication Date: June 20, 1980
• Content Type: REPORT

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PLANNING FOR A
CIVIL OPERATIONAL LAND REMOTE SENSING SATELLITE SYSTEM:
A DISCUSSION OF
ISSUES .AND OPTIONS
JUNE 20, 1980
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TRANSMITTAL
To assist in the discussion of the establishment
of a civil operational land remote sensing satellite program,
the Commerce Department has prepared this document entitled
"Planning for a Civil Operational Land Remote Sensing
Satellite System: A Discussion of Issues and Options."
These issues and options are being given careful considera-
tion by the Administration in its development of the FY 1982
budget and legislative program.
One of the key issues to be resolved by the Federal
government is, When to initiate an operational system that is
fully responsive to the data requirements of users at a cost
that users are willing to pay. The timing of the development
of such a fully operational system will: depend to a large
degree on the willingness of users, including Federal agency
users, and the private sector to invest in the operational
system. Until a decision is reached on the detign and
funding of the fully operational system, the Federal govern-
ment will rely on the existing NASA-planned Landsat D system
with any extensions or improvements which may be necessary
in order to meet the Administration's commitment to continuity
of data during the 1980s.
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TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY 1
CHAPTER I INTRODUCTION 17
A. Land Remote Sensing from Space 17
B. Development of the Administration's
Decision on Civil Operational Remote
Sensing 19
C. Current Presidential Direction 21
D. Underlying Assumptions 22
CHAPTER II PROVIDING CONTINUITY IN THE 1980s 24
A. The Existing Landsat 3 System 24
B. The Currently Planned Landsat D
System 28
C. The Interim Operational System...? 29
D. Transfers of Functions, Hardware
and Personnel 36
CHAPTER III USER REQUIREMENTS FOR THE FULLY
OPERATIONAL SYSTEM..., .... 39
A. Methodology Used in Projecting User
Requirements 39
B. Current and Projected Uses of
Landsat Data 41
C. Data Specifications of Major Users 44
CHAPTER IV PERFORMANCE OPTIONS FOR THE FULLY
OPERATIONAL SYSTEM 48
A. System Performance Options 48
B. Initial Evaluation 54
CHAPTER V REVENUES, PRICING POLICIES AND FINANCIAL
ASSISTANCE 56
A. Projected Revenues & Costs 56
B. Pricing Policies 57
C. Financial Assistance 61
D. Appropriation of Federal Financial
Assistance Costs 63
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TABLE OF CONTENTS (CONTINUED)
Page
CHAPTER VI INSTITUTIONAL APPROACHES TO PRIVATE
SECTOR =VESTMENT AND maxamm....... 67
A. Institutional Alternatives 67
B. Factors Affecting Industry's
Decisions on Investment 76
C. Policies to Involve the Private Sector
During Federal Ownership of the
Interim System........ 83
D. Regulation of Private Sector
Operation ?............. 84
CHAPTER VII MARKET EXPANSION. ...... 88
A. Prerequisite for a Market Expansion
Program ... ............ . . .. . 88
B. Current Market Expansion Activities... 89
C. Some Suggestions for a. Market
Expansion . ..... 91
CHAPTER VIII INTERNATIONAL ASPECTS 95
A. History and 95
B. Relationships with Foreign Users 96
C. Relationships with Foreign
Satellite Operators 100
CHAPTER IX ADDITIONAL LEGAL AUTHORITY 104
A. Proprietary Interests in Satellite
Data and Products 104
B. MORA Enabling Legislation 105
C. Institutional Framework for Eventual
Private Sector Operation 106
D. Regulatory Authority 107
GLOSSARY 108
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EXECUTIVE SUMMARY
This document discusses the issues and options relating
to a national civil operational land remote sensing satellite
system pursuant to the President's decision to assign to the
National Oceanic and Atmospheric Administration of the
Department of Commerce the management responsibility for
civil operational land remote sensing satellite activities.!!
This document, prepared by the Commerce Department (Commerce),
in coordination with other interested agencies12/ discusses
the issues involved in implementing an operational land
remote sensing system from space, initially based on
Landsat technology, with the goal of eventual private sector
ownership and operation of the system. Some policy and
technical options related to implementing an operational
system are contained in this document, but decisions on
these options will, for the most part, await the Administra?
tion's FY 1982 budget review and subsequent actions.
A land remote sensing satellite system provides informa-
tion about the condition of the Earth's surface by a process
of sensing radiation from objects on the Earth. The
system uses sensors located on satellites which transmit the
data to ground receiving stations for processing into usable
data products. The current system is largely an experimental
program called Landsat managed by the National Aeronautics
and Space Administration (NASA). Information from the
system has proven of value to a variety of public and
private sector users in the United States and abroad for
helping to make decisions related to such areas as agricultural
crop forecasting, rangeland and forest management, mineral
and petroleum exploration, mapping, urban and regional land
use planning, water quality assessment and disaster assessment.
1/ The White House Press Release of November 20, 19791
announcing this decision is appended to this Summary at
Attachment A.
2/ The National Aeronautics and Space Administration, the
Departments of Agriculture, the Interior, Energy,
State, and Defense, the Agency for International
Development, the Environmental Protection Agency, and
the Director of Central Intelligence.
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Background
The issuance of the President's decision regarding
civil operational remota sensing from space culminated a
two-year Administration review of the nation's space policy.
During this period, the Policy Review Committee (space) was
established and national 'policy on space programs was
clarified. /n May 1978, the President announced that the
United States will encourage domestic commercial exploitation
of space capabilities under appropriate U.S. authorization
and supervision. Further, in October 1978, the President
made a commitment to continue the availability of data from
the Landsat program for all classes of users. In his March
27, 1979, Science and Technology Message, the President
reiterated his Administration's commitment to the continuity
of land remote sensing satellite data over the coming
decade. Subsequently, Dr. Frank Preis, the President's
Science Advisor, in Administration testimony before the
Senate Subcommittee on Science, Technology, and Space on
April 9, 1979, stated that "the Administration is committed
to an operational remote sensing system, although yet
undefined."
From October. 1978, through the summer. of 1979, Executive
Branch agencies examined the potential for integrating
U.S. civil remote sensing satellite programs and for private
sector involvement in U.S. civil space activities. They
recommended that all U.S. civil operational remote sensing
programs be managed by a single agency. The agencies also
reported that the private sector would be interested in
assuming more responsibility for land remote sensing from
space if Federal policy and market uncertainties were
clarified.
In November 1979, the President provided the framework
within which a civil operational land remote sensing satellite
system should be implemented, and assigned to the National
Oceanic and Atmospheric Administration (NORA) in Commerce
the management responsibility for civil operational land
remote sensing activities in addition to its ongoing
atmospheric and oceanic responsibilities. ' NOAA's related
ongoing responsibilities include managing the national
civil operational meteorological satellite program and the
Commerce Department's ,responsibilities for a joint operational
demonstration by the Department of Defense (DOD), NASA and
Commerce of a National Oceanic Satellite System (NOSS).
a
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The Executive Branch's review of remote sensing
satellite programs and policies was paralleled by a series
of Congressional hearings during the 96th Congress on
operational land remote sensing from space, including
hearings before the House Subcommittee on Space Science and
Applications of the Committee on Science and Technology and
the Senate Subcommittee on Science, Technology and Space of
the Committee on Commerce, Science and Transportation. Two
bills before the 96th Congress focused on operational land
remote sensing: S. 663, introduced by Senator Adlai E.
Stevenson, which proposed the establishment of an Earth Data
and Information Service in NASA, and S. 875, introduced by
Senator Harrison Schmitt, which proposed the creation of a
for-profit Earth Resources Information Corporation.
Assumptions
This document was developed in accordance with the
following assumptions, which reflect the policies, established
in the President's decision on civil operational remote
sensing and previous space policy pronouncements, and the
prerequisites to their achievement:
o The Federal government will ensure continuity of data
during the 1980s;
o A national civil operational land remote sensing
satellite system should ensure continuity of data and
the appropriate reliability and timeliness of standard
data products;
o User requirements, projected levels of demand and
the cost of meeting these requirements should determine
the design of the operational system;
o The Administration's goal is eventual private sector
ownership and operation of the operational system,
which includes the Assumption of financial risk, as
well as operational control by the private operator;
o Prices for land remote sensing satellite products
should be set at.levels that ensure maximum recovery
of system costs consistent with the public good;
o The practice of the widest practical dissemination of
Landsat data on a public nondiscriminatory basis
will be continued for the data and standard data
products from the Interim and Fully Operational
Systems in accordance with prevailing U.S. national
policies;
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o Eventual private Sector ownership and operation of
the U.S. program will be conducted under Federal
government regulation, consistent with U.S. policies
and international obligations;
o The civil operational land remote sensing satellite
program i& a, national program responsive to Federal
interests and U.S. user requirements. Due regard
will be given to foreign user interests .and to
foreign participation in the U.S. program;
o NOAA will manage the operational system ...until a new
institutional framework is established.
The Present Landsat System
The existing Landsat system consists of one satellite,
Landsat 3, launched in 1978, which covers the Earth once
every 18 days and transmits sensed data, from an on-board
multi-spectral scanner (MSS) and two return beam vidicon
(RSV) cameras back to Earth, either directly to U.S. or
foreign ground stations or indirectly from an on-board tips
recorder which stories data until the satellite is within
range of a U.S. ground station. NASA's Goddard Space Flight
Center controls, the satellite and performs the initial
preprocessing of the data transmitted to Goddard from U.S.
ground stations via, domestic- communications satellite
(DOMSAT).
At the Department of the Interior's EROS Data Center in
Sioux Falls, South Dakota, the Goddard preprocessed high
density digital tapes are archived and further processed
into standard data products (either computer compatible
tapes or photographic images) for dissemination to domestic
and foreign users at the cost of processing the order and
reproduction. Similar preprocessing, processing, archiving
and dissemination functions are performed by the nine
foreign ground stations that now receive data direct from
Landsat 3.
Two additional satellites, Landsat D and D', currently
are under construction, with Landsat D tentatively planned
for launch in 1982. The Landsat D series of satellites is
designed to carry a new sensor, the Thematic Mapper (TM),
which will provide 30m resolution1/ for the first time, as
well as the MSS, and to use the Tracking and Data Relay
1/ The term "resolution", as used in this document,
refers to the instantaneous field of view (IFOV).
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Satellite System (TDRSS) for relay of data direct from
Landsat to a single U.S. ground station at White Sands, New
mexico. To provide continuity with data from previous
Landsats, the multispectral scanner (MSS), which provides
80m resolution, will continue to be deployed on Landsat D
and D'. Direct readout of sensor data to foreign ground
stations will be continued.
Because of difficulties in developing the TM and the
associated ground data processing system, NASA is considering
launching Landsat D without TM in 1982, to be followed by
Landsat D' with TM later.1/ Current estimates for the
operational preprocessing ofLandsat D and D' data at
Goddard are 200 MSS scenes per day beginning no earlier than
1983 and up to 50 TM scenes per day when the TM system
becomes operational possibly no earlier than 1985.
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The Interim and Fully Operational Systems
A fully operational land remote sensing system that
meets optimal performance standards can be implemented at
the earliest in 1989, given best estimates of the state of
the art advances in sensors and the time required for
Federal contracting procedures if they are used. Until that
time, extension of the Landsat D system can ensure that,
after 1983, the commitment to continuity of data during the
decade of the 1980s is met.
From a technical standpoint, the following performance
standards have been identified as applicable to a high
quality operational system:
o Sensors designed to generate data meeting a broad
range of user requirements at a reasonable price;
o Assured continuity of satellite coverage without
break, with one backup satellite in orbit at all
times and another on the ground;
o 95% confidence that, averaged over a two-day period,
all data will be processed and made available from
the ground station within 48 hours of receip,t; and
o Ability to identify and process certain data out of
order to meet urgent user needs.
1/ The Administration is also considering other alternatives
such as delaying the launch of Landsat D until 1983
when the TM sensor will be ready.
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However, the extent to which these compabilities are pursued
will depend upon their full capital and operating costs and
the demonstrated existence of an adequate private and
Federal market to justify such costs.
While sensors specifically designed to generate data
a broad scope of user requirements cannot be provided
until the late 1980s, the Landsat D sensors can be used as
the basis for an interim system which will help to ensure
continuity of data during the 1980s and meet many user
needs.
The Administration is currently reviewing the Landsat D
system to see where improvements may be required to ensure
data continuity during the 1980s. For instance, the current
Landsat system includes no satellites after Landsat D'.
Anticipated gaps in spacecraft coverage of several years
between about 1966 and the initiation of a fully operational
system may have to be filled by the construction of one or
more satellites or by the refurbishment of Landsat D. In
addition, changes in the Landsat D ground segment may be
required to minimize, the- risk of losing- some data or having
an excessively long delay in processing some data. The
Landsat D system-, with any follow-on satellites and ground
system improvements, has been designated the "Interim
Operational System.*
The earliest possible date by which all four performance
standards for a high quality operational system could be met
is 1989, when the R&D necessary for the new solid state,
multilinear array sensors should have been completed, and
the sensors will have been fabricated, tested, and incorporated
into either an existing multi-mission modular spacecraft
(MMS) or a new spacecraft. The Landsat D system so modified
is designated the "Fully Operational System."
A decision on when to implement the Fully Operational
System requires careful examination of the Federal government's
priorities, needed financial assistance, private sector
willingness to invest in and take over the system, user
demands during the interim system and the potential risk of
foreign satellite systems obtaining a portion of the domestic
and foreign land remote sensing market.
Management Arrangements for the Interim Operational System
Certain changes in management responsibility will take
place as the Interim Operational System is implemented.
Although the exact dates for transferring managerial respon-
sibility to NOAA are subject to changes in NASA's schedule
for Landsat 0, NOAA plans to assume the following responsi-
bilities from NASA and Interior on the following schedule:
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o NOAA will assume responsibility from NASA in FY 1983
for the command and control of the systim and will
begin providing MSS data on an operational basis
after the successful launch and check-out of Landsat
D and the MSS ground system and after NASA has
demonstrated that the system is operational. NOAA
will assume responsibility for TM data when that
portion of the system reaches an initial operational
level of performance;
o NOAA will assume responsibility from NASA and the
EROS Data Center in FY 1983-84 for the generation and
dissemination of data and standard data products.
Assuming it is cost-effective, a new facility would
be co-located with the Landsat D preprocessing
facility at Goddard and would be the sole sales
outlet in the United States of data and standard data
products from the Interim Operational System; and
o NOAA will take title to the Landsat archival material at
Goddard and the EROS Data Center in FY 1984 and will
be responsible for archival and dissemination functions
for the Interim Operational System.
During the interim operational phase based on the
Landsat D series of satellites, NOAA will manage the system
in coordination with an interagency Assistant Secretary
level Program Board. In addition, the Secretary of Commerce
will establish a Land Remote Sensing Satellite Advisory
Committee with representatives of state and local governments,
other domestic non-Federal users, and interested domestic
private sector groups. Within NOAA, a new major line
component, the National Earth Satellite Service, has been
proposed to have managerial responsibility for the civil
operational land remote sensing satellite program.
User Requirements for the Fully Operational System
User requirements should determine the design of the
fully operational land remote sensing satellite system. A
survey of governmental and private users indicates a wide
range of possible requirements, depending on the type of
application being considered, which could justify differing
types of satellite systems.
To assist NOAA or an eventual private owner to develop
a responsive operational system, a preliminary survey of
possible user requirements was made. This survey indicated,
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for example, that agencies that are interested primarily in
renewable resource applications such as agricultural crop
assessment want frequent obserVations, delivery of data
within 48 hours in certain circumstances, spectral bands
that discriminate between various types of vegetation and
resolution higher than that by the current Landsat
system. State, and local governments, requiring data for
land use management and protecting environmental quality,
request higher resolution over urban and suburban areas and
time-series analyses to detect detailed changes. The U.S.
mineral extraction and related industries call for
stereoscopicli capabilities, global coverage, thirty to
forty meter resolution and processing of data within a few
weeks. Foreign users interests appear to be similar, to
those of their U.S. counterparts, although area coverage
requests obviously differ.
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Further analysis and sorting of these requirements with
respect to resolution, spectral bands, stereo coverage,
frequency of observation and timeliness of product delivery
will-be necessary as plans are developed for the operational
system.
Performance Options for the Fully Operational System
Sypothetical System performance options have been
identified to meet some or most of the preliminary user
requirements identified above. These-options range from
designing a system with capabilities similar to the Landsat
3 with MSS only, at an estimated.10-year cost of $1 billion,
to building a new system which meets most of the currently
stated user requirements, including two meter resolution, at
an estimated 10-year maximum cost of $10 billion./ Stereo
coverage can be provided at an additional cost of up to $700
million.
A final decision on the system design to be pursued for
the Fully Operational System can be reached only after
further analysis of user requirements, technical options,
cost comparisons, system financing, and the effect of
potential foreign competition.
1/ As used In this context, stereoscopic means two or more
images, taken from different angles, to permit inference
of the relative height of various topographic features.
2/ All costs are in FY 1980 dollars.
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Revenues, Pricing Policies and Financial Assistance
Reliable projections of revenues from sales of standard
data products, and from the direct reception fees to be paid
by foreign ground station operators cannot be made at this
time since the characteristics of the Interim and the
Fully Operational Systems, the users' level of demand at
various prices, the impact.of a market expansion program
and the impact of foreign competition are not now known.
Tentative projections indicate that this system may not and
probably will not be self-financing before the end of the
century. Therefore, continued Federal financial contribu-
tions to support of the system likely will be necessary for
the foreseeable future.
System revenues, generated by the sale of standard
data products and foreign ground station access fees, now
amount to only $6 millionl/ a year.2/ Current fees consist of
a nominal $200,000 access fee.for foreign ground stations
and cost of reproduction charges for standard data products
-- $200 for a computer compatible tape and between $8 and
$50 for various types of Landsat images. The projected
costs of the Fully Operational System range from $100 to
$400 million a year. To achieve the objectives for the
sharing of costs by users, and for the eventual ownership
and operatiom by the private sector, prices must be increased
to cover, over time, the capital and operating costs of the
system and the data and data products treated in a proprietary
manner.
The system's manager could charge three types of
fees for data and standard data products:
o Basic Fee. A fee paid by each user on each standard
data product it purchases from the U.S. system
operator. These fees would vary in proportion to the
costs incurred in producing that product. They would
be paid by users of both real-time and retrospective
data. Other factors such as timeliness, the placing
of special orders and special handling could be
reflected in a surcharge schedule.
1/ All revenues are in FY 1980 dollars.
2/ This figure includes $2.7 million from sales, $1.8
million from foreign ground station access fees and
$1.3 million attributed to the value of the data
distributed without charge to Federal agency users.
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o Royalty- Film. A fee paid by each U.S. and foreign
user and foreign ground station operator on the
reproduction or resale of Landsat standard data
products.
o Direct Reception Fee. One or more fees paid by
foreign grouna station operators - receiving' data
directly from C.S. land remote sensing satellites.
Examples of such fees are: Cl) an annual access fee
like the $200,000 fee per station per year currently
being paid by Landsat station operators, and (2) a
transmission fee paid by foreign ground station
operators for data transmitted to and received
by the foreign ground stations. This latter fee
would be based on the amount of data requested.
Upon the completion of pricing studies, a proposed
pricing schedule will be developed based on these types-of
fees, and possibly others, for consideration by the Program
Board and the Land Remote Sensing Satellite Advisory Committee.
f
Since, a substant s pro5iL4ied bitwn
annual revenues and the estimated annual costs' - of running an-
operational system of between $100 and $400 million per
year, Federal financial assistance likely will be required.
In this event, the Federal government could provide various
types of capital and operating assistance to a. private or
government corporation, whichever institutional option is
eventually chosen. Such Federal capital assistance could
include grants, equity guarantees, and Federal loan and loan
guarantees. Federal operating assistance could include
Federal support of research and development, purchase
guarantees, appropriations, free services and tax incentives.
Whether for the Interim or Fully Operational System,
three possible options for Federal agencies to share in the
costs of financing the operational land remote sensing
system are under consideration:
o NOAA could budget for all "core "l/ and special
system costs;
o NOAA could budget for "core" system costs and user
agencies would budget for special system capabilities;2/
1/ The "core" system includes the space and ground segment
elements necessary to meet the common needs of the
majority of users.
2/ Special system capabilities include stereoscopic
coverage.
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o User agencies could fund individually a predetermined
portion of all "core" and special system costs.
A decision on the preferred financing option will
weigh, on the one hand, the benefits of having a mechanism
that forces agencies to make trade-offs between land remote
sensing data and other sources and, on the other hand, the
advantages of focusing responsibility for the program and
budgeting in one agency.
Institutional Approaches to Eventual Private Sector
Ownership and Operation
1. Institutional Alterantives
Several institutional options exist for achieving
the goal of eventual ownership and operation by the private
sector of our civil land remote sensing satellite activities.
The four principal institutional options discussed in the
document are:
of pr
3 and
until
(1) A private corporation (or consortium) selected
competitively to own and operate all or part
of the civil operational land remote sensing
satellite system and to sell data to Federal
agency users under a guaranteed purchase
contract;
(2) A for-profit private corporation, authorized
by Federal legislation, with private equity
and privately and publicly appointed Board
members;
(3) A wholly-owned government corporation authorized
by Federal legislation, with Government
equity, reporting to the Secretary of Commerce,
with provision for subsequent transformation
to a private stock corporation as system
revenues warrant; and
(4) Federal agency ownership with-private contractor
operation, and provision for subsequent
transfer to a private sector owner as system
revenues warrant.
Options 1 and Z offer
ivate sector ownership and
4 delay implementation of
the next decade.
the earliest possibilities
assumption of risk. Options
private sector ownership
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These options will be examined by the Administration
over the next several months to evaluate which alternative
best serves the Federal, state and local government and
private sector interests in having an operational land
remote sensing satellite program.
2. Esqablishpalt of riltdotr*I 10014S7 t9 InCourege
Private Sector investment
Several policies impact the likelihood or willing-
ness of the private sector to own the operational system.
For example, under present policy, a system ower has no
ownership rights in the Landsat data and standard data
products. Without a change in this policy, a private owner
would be denied the opportunity for profitability; therefore
the Federal government would have to authorize the private
sector to own and sell civil operational Zand remote sensing
satellite data and standard data, products on terms that
eventually permit acreasonable return on investment. Other
factors that affect private sector investment are competition
from ongoing.. Federally funded R4Q land remote sensing,.
satellite systems and. the duration of the, Federal. government's
financial commitment to the Iand remote senting satellite.
program. Convereely, a private system owner should be
required to abilie by the government policy of widest practical
dissemination of data and standard data products On a.
public nondiscriminatory basis at prices that are consistent
for domestic and foreign users.
3. Regulation of Private Sector Operation
A private owner of the land remote sensing satellite
system could enjoy a monopoly. To protect the national
interest, the private owner's activities should be regulated
to the extent necessary to conform to national space and
other domestic and foreign policy objectives. A private or
government entity owning the operational system should be
required, for example, to comply, with international treaties
such as the Outer Space Treaty for the conduct of peaceful
activities in outer space; continue the widest practical
dissemination of data and standard data products on a public
nondiscriminatory basis; meset the needs of U.S. government
users; and refrain from misuse of insider knowledge obtained
from the land remote sensing satellite data.
Market Expansion
The system manager should undertake a market expansion
program to increase revenues, reduce required Federal
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financial assistance, and enhance decision-making through
the use of land remote sensing satellite data. An important
element of this program is assuring continuity of land
remote sensing data.
A market expansion progam for the operational system
can build on the types of training and technology transfer
activities now being conducted by NASA dnd the Department
of the Interior. NOAA could arrange for reimbursable
training programs, enter into joint applications demonstra-
tion projects with users in all sectors, encourage university
land remote sensing instructional programs and work with
domestic and international assistance agencies to promote
new opportunities for American business in the land remote
sensing satellite field. As part of its ongoing R&D re-
sponsibility, NASA could continue to develop and demonstrate
to users new techniques and technologies for using land
remote sensing satellite data.
International Aspects
The United States should continue to encourage interna-
tional participation in the U.S. civil operational land
remote sensing satellite program by further developing an
international community of data users and by continuing
discussions with prospective foreign land satellite system
operators to explore the prospects for encouraging complemen-
tarity and compatibility among future operational land
satellite systems.
The United. States should ensure that data from the
Interim and Fully Operational Systems are made available to
foreign users through sales of standard data products
on a nondiscriminatory basis. NOAA, working closely
with the Department of State and other interested agencies,
should take the following actions:
o Consider foreign user requirements in planning
the Fully Operational System;
o Conclude agreements with those foreign agencies wishing
to receive data directly from the Interim and Fully
Operational Systems;
o Establish pricing policies for data sales and direct
reception fees that are consistent for domestic
and foreign users; and
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o Continue the Landsat Ground Station Operations
Working Group as a forum for the exchange of tech-
nical information.
The land remote sensing satellite systems being developed
by other countries offer the prospect of both competition
and cooperation with the U.S. -The comeetitime challenge to
U.S. technological leadership is likely to occur in such
areas as the development of multilinear array sensor technology,
and sales of ground equipment, services and data products.
NOAA, working closely with the Department of State and other
interested agencies, should encourage the expansion of
world-wide markets for U.S. equipment, services and data
products, and pursue prospects for complementarity with
foreign satellite operators in order to develop complementary
system characteristics (e.g., orbits, coverage patterns and
repeat cycles) and compatible system outputs (e.g., standard
. data product formats).
Legislation for the Operational System
?
Legal authority in four principal areas may be required
in order to implement a civil operational land remote
sensing satellite.system:
1. Authorization for NOAA to develop, own and- manage
the civil operational land remote sensing satellite system.
until the responsibility is transferred to a private or
other entity;
. 2. Establishment of the institutional structure,
financial assistance and transition to private sector
ownership and operation of the U.S. civil land remote
sensing satellite system;
3. Establishment of a regulatory system to ensure that
a private sector owner's activities are in compliance with
U.S. laws, policies and international obligations; and
4. Establishment of proprietary interests in operational
land remote sensing data and standard data products.
Summary of Issues
The following is a summary of the issues that have to
be addressed as the Federal government moves toward an
operational land remote sensing satellite systpm:
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1. Continuity of Data in the 1980s
a. Operations
o Whether to fund, construct and launch
additional Landsat D series satellites with
tape recorders to provide continuity in the
acquisition of data from space until a
Fully Operational System can be deployed?
o Whether to improve the existing Landsat D
ground segment at the Goddard Space Flight
Center to provide continuous processing of
the acquired data into timely and reliable
standard data products?
o Whether to transfer responsibility for
command and control of the Landsat D space
and ground segments from NASA to NOAA?
o Whether to transfer responsibility for
archiving and disseminating land remote
sensing satellite standard data products
from the Department of the Interior to
NOAA, and whether to co-locate these
functions with the satellite command and
control and preprocessing facilities at the
Goddard Space Flight Center?
b. Management
o When to submit to Congress an Administration
bill that authorizes NOAA to own and manage
an operational land remote sensing satellite
system until that system is transferred to
another entity?
2. Initiation of a Fully Operational System
o How to validate user requirements and their
priorities?
o When to establish a Fully Operational System
utilizing new sensors that meet a broad range of
user needs?
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Pricing Policies and Financial Assistance
o How to establish initial price increases for
direct reception and for data and standard data
products that are consistent for foreign and
domestic users, provide adequate advance notice
of price increases, and. encourage potential
users to invest in support equipment and reduce
use of competing methods of data collection?
o When to implement price increases?
o How to fund the capital and operating costs
of the Interim and Fully Operational Systems
that exceed revenues?
4. Institution for Private Sector Involvement
o What, if any, institutional framework for
private sector ownership should be submitted to
Congress?
o What mechanisms for regulating and providing
Federal financial assistance to the private
sector should be provided in any bill authorizing
an institutional framework for private sector
involvement?
o What policies should control the activities of
any private sector owner for ownership of data
and standard data products, for conditioning
their dissemination on the payment of appropriate
fees, for making possible the users' sharing of
system costs beyond the costs of reproduction,
and for requiring consistent pricing and ensuring
nondiscriminatory availability of standard data
products.
5. Market Expansion
o what market expansion should be authorized for
the Federal system manager?
6. International Aspects
o How, to encourage the growth of worldwide markets
for U.S.-produced equipment, services and land
remote sensing satellite data and standard data
products?
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Chapter I
INTRODUCTION
This document discusses the issues and options relating
to a national civil operational land remote sensing satellite
system pursuant to the President's decision to assign to the
National Oceanic and Atmospheric Administration of the
Department of Commerce the management responsibility for
civil operational land remote sensing satellite activities.
The document addresses the issues involved in implementing
an operational system, including the physical elements of an
operational land remote sensing satellite system, user
requirements, system financing including pricing policies
for users sharing of costs, Federal management and private
sector involvement, market expansion, international aspects,
transfers of functions, hardware and personnel and legislative
matters.
This chapter discusses land remote sensing from space,
reviews the development of applicable civil space policy
with respect to land remote sensing from space, and sets
forth current Administration direction and the assumptions
underlying the document.
A. Land Remote Sensing from Space
The purpose of a land remote tenting satellite
system is to provide data and information about the condi-
tion of the surface of the Earth's land masses to assist
a wide variety of users to make resource-related decisions.
Observing instruments are placed aboard a satellite which
circles the Earth in an orbit chosen so that the satellite
will traverse almost all areas of the Earth on a schedule
that facilitates the observations of most interest. The
instruments respond to emitted or reflected energy at a
number of discrete wavelengths ranging from those of visible
light into the infrared region and, potentially, on into the
microwave region normally associated with radar.
The character of the data produced and its utility
to users are determined by the following key parameters:
o Resolution, related to the size of the smallest
object that can be delimited accurately from the
data;
1/ The term "resolution," as used in this document,
refers to the instantaneous field of view (IFOV).
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o Spectral bands, related to the portions of the
electromagnetic spectrum of energy radiated or
reflected by the earth to which the spacecraft
sensors are sensitive;
o Stereo coverage, related to' the -availability of
data toms wfilch the variation the height of
the surface being viewed can be determined;
o Frequencv of observation, related to the interval
between repeat coverage of the same spot on the
Earth; and
o Timeliness, related to the length of time
between the observation itself and the delivery
of suitable processed data to users or to the
archive.
The signals from the instruments are combined into
a data stream which the satellite transmits to one or more
receiving stations when it is? instructed to do so. ,The
received data stream is recorded and processed to various
standard formats. These materials, which are described in
greater detail in Chapter It, will be referred to in. this.
document as *standard data products."
Data are either used immediately or stored in an
archive for later retrieval and study: Since many processes
of long-term interest, such as desertification, land
use, or the spread of disease in forested areas, require
accurate detection of changes, the ability to retrieve
standard data products from the archive for so-called
retrospective users significantly enhances the usefulness
of the data.
Depending on the information desired by a user,
the standard data products may be used directly, or manipulated
by computers and interpreted in various ways to produce
"value added products". ?or instance, an image can be
constructed using arbitrary colors assigned to ranges of the
measured quantities to emphasize differences from one part
of the scene to another. The contrast at boundaries within
the scene can be enhanced, and the intensities of two
wavelength bands at each point of the scene can be compared.
This information can be combined with information from other
sources, such as topographical surveys or precipitation
records. Users often employ professional geologists,
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agronomists, urban planners, or others as appropriate to
interpret these products, providing information that is
valuable to those who wish to make decisions involving
knowledge about or changes on the surface of the Earth.
The benefits of this information have become
evident in decisionmaking on renewable resources (agricultural
production and forecasting, and management of rangeland,
forests and water resources), non-renewable resources (geologic'
survey; mineral and petroleum exploration; cartography,
coastal oceanography and resource evaluation; and demography)
and environmental management (urban and regional land use
planning; environmental protection; disaster assessment; and
coastal engineering). These uses are detailed in Chapter
III, User Requirements for the Fully Operational System.
The growing recognition of the value of and need for
this data has led to a widespread demand that the Federal
government take steps to assure continuity of data.
B. Development of The Administration's Decision
on Civil Operational Remote Sensing
The President's decision regarding civil operational
remote sensing from space culminated a two-year Administra-
tion review of the nation's space policy. In 1977, President
Carter directed the National Security Council to lead a
review of the existing space policy of the United States and
to formulate overall principles to guide United States spate
activities. This review resulted in a Presidential directive
in May 1978, which articulated broad national policies to
guide the conduct of United States activities in space and
established a Policy Review Committee on Space (PRC (Space))
to provide a forum for discussion of proposed changes to
national space policy and fOr rapid referral of issues to
the President. The directive also established that the
United States will encourage domestic commercial exploitation
of space capabilities under United States government authoriza-
tion and supervision.
Upon the completion of a four-month interagency
analysis by the PRC (Space), in October 1978, a more
detailed space policy was formulated setting the direction
of U.S. efforts in space over the next decade. Three principal
directions for the nation's civil space program were specified:
(1) activities will be pursued in space when they can be
more efficiently accomplished there; (2) our space policy
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will reflect a balanced strategy of applications, science
laul technological development: and, (3) an adequate Federal
budget commitment will be made to achieve the objectives of
identified space applications.
In October 1978, the deCision WAS also made that
the United States 'woad ensure continuity of data tram the
experimental 'Landsat program anit tineto pride these
data to public and private users. In his March 27, 1979,
Science and Technology Message, the President reiterated his
Administration' s commitment to the continuity of land remote
sensing satellite data througia the 1980s.
In the spring of 1979, Congressional attention
also was focused on operational land remote sensing from
space. Two major land remote sensing satellite bills were
introduced Ln the 96th Congress: S. 663, introduced by
Senator Adlal E. Stevenson, Pro-Poled the establishment of an
Earth Data and Information Service in NASA, while S. 875,
introduced by Senator Harrison schpitt, proposed the creation
of a for-profit Earth Resources Information Corporation...
The Rouse Subcommittee on Space Sciencit and Applicationm of
the Committee on Science and Tichnology, and the Senate
Subcommittee on Science, VeChnologY and Space of. the Committee
on Commerce, Science and TransPortat ion, among others, held-
bearings.. The President's Science- Advisor, Or. Frank- Press,
stated in Administration testimony that the Administration
ISis cOmatitted to the continuity of remote Singing data for
civil application. through the 1980s,**and further that the
Administration is committed to an operational remote sensing
system, although yet undefined.* Se asked the Congrest not
to enact a specific bill on operational land remote sensing
until the PRC (Space) completed its studies of the system.
The Federal government's policy review of civil
operational land remote sensing activities considered
in part the satellite system plans of other countries:
o France is planning a two satellite land remote
sensing system called SPOT, which will begin with
a launch in 1984.
o Japan is planning a five satellite land and
ocean observations program--including a marine
Observations Satellite (MOS-1) in 1985 and a
Land Observations Satellite (LOS-1) in 1987.
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o The European Space Agency (ESA) is planning
to launch a Coastal Ocean Monitoring Satellite
System (COMSS) in 1986 and a Land Applications
Satellite System (LASS) in late 1987 or early
1988.
o India launched a rudimentary remote sensing
satellite in 1979 and plans one similar to the
first in 1982 and a more elaborate mission in
the mid-1980s.
o The Soviet Union has flown a high resolution
land observations camera system on manned and
unmanned missions. The Soviets also are test-
ing coarse resolution multispectral scanners
on their meteorological satellites.
Some of these systems will incorporate high resolution solid
state multilinear array sensors more advanced in terms of
resolution than those on Landsat D.
By the summer of 1979, agency task forces had
completed their studies and had submitted their recommendations
to the FRC (Space). A principal recommendation was to
integrate the management of civil operational remote sensing
satellite programs within a single agency.
C. Current Presidential Direction
President Carter announced the United States
policy on civil operational remote sensing in space in
November 1979, outlining the policy framework for civil
operational land, meteorological and ocean remote sensing
satellite programs. NOAA was assigned the management
responsibility for civil operational land remote sensing
satellite activities in addition to its on-going atmospheric
and oceanic responsibilities, and was directed to prepare,
in coordination with other appropriate agencies, a time-phased
transition plan proposing how to move from the largely
experimental Landsat program built by NASA to a fully
operational system, with the goal of eventual operation by
the private sector.
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D. Underlying Assumptions
This document has been developed in accordance with
the following assumptions, which reflect the policies,
established in the President's decision on civil operational
land remote sensing and Previ043 space policy announe*montal
and the prerequisites to their achievement:
o The Federal government will ensure continuity of,
data during the 1980s;
o A national civil operational land remote sensing
satellite system should ensure continuity
of data and the appropriate reliability and
timeliness of standard data products;
o User requirements, projected levels of demand and
the cost of meeting these requirements should
determine the design of the operational system;
o The Administration's goal is eventual private
sector ownership and operation of the operational
system, which includes the assumption of financial
risk, as well as operational cOntrol by the
private sector;
o Prices for land remote sensing satellite products
should be set at levels that ensure maximum
recovery of system costs consistent with the
public good;
o The practice of the widest practical dissemination
of Landsat data on a public, nondiscriminatory
basis will be continued for the data and standard
data products from the Interim and Fully Operational
Systems in accordance with prevailing U.S.
national policies;
o Eventual private sector ownership-and operation-
of the U.S. system will be conducted under
Federal government regulation, consistent with
U.S. policies and international obligations;
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o The civil operational land remote sensing satellite
program is a national program responsive to
Federal interests and U.S. user requirements.
Due regard will also be given to foreign user
interests and to foreign participation in the
U.S. program; and
o NOAA will manage the operational system until a
new institutional framework is established.
????
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CHAPTER II
PROVIDING CONTINUITY IN THE 1980s
Because of the long lead time required for budgeting,
design, development, construction, Launch And check.out, a
fully operational satellite and ground system responsive to
user requirements could not become operational until 1989 at
the earliest. Accordingly, the United States must rely on
the existing Landsat D satellite and ground system designs,
with additional satellites and ground system improvements as
needed and justified programmatically, to meet the objective
of assuring data continuity in a reliable and timely manner
through the 1980s. The Landsat D satellite design is
largely experimental but its capabilities are generally
those desired by most users when the TM sensor is operational.
It also carries the proven MSS sensor which is? operationally
reliable, although the current ground system does not meet
fully operational standards..
This chapter reviews the existing Landsat 3 system, thE
currently planned Landsat D system and identifies some
system design changes that could be useful for upgrading
the Landsat D *Interim Operational Systems. The management
structure and transfers of hardware and personnel necessary
to implement this Interim Operational System are also
identified.
The chapter assumes certain dates for launching
Landsat D and Landsat D', the currently NASA-planned satellite
system, but these dates may be changed when a final launch
schedule is developed later this year.
A. The Existing Landsat System
At the present time, United States land remote
sensing satellite data comes from a single experimental
satellite, Landsat 3, and its associated ground facilities.1/
Its design and operating characteristics are described in
the following paragraphs.
1. Data Acouisition
Landsat 3 was launched in 1978 and currently
is operating in an orbit that allows it to acquire data from
almost any given spot on the Earth every 18 days. Two
After ceasing operation in November 1979, Landsat
2 is currently able to provide data within view of the
receiving stations within the U.S. and abroad.
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instruments are aboard: (a) a Multi-spectral Scanner
(MSS), which provides data in four bands of the visible and
near-infra-re 0 portions of the spectrum, and (b) two Return
Beam Vidicon (RBV) cameras, which essentially provide black
and white TV images. The MSS scans a swath 185 km wide and
has an instantaneous field view (IFOV) of 80 meters, which
for many scenes is approximately equivalent to a photo-
graphic resolution of about 160 meters. Each REV image from
Landsat 3 covers an area 90 km on a side (180 km total
swath) and has an equivalent IFOV of 40 meters.
Data can be returned to Earth when the
satellite is within view of one of the receiving stations
the NASA stations in Alaska, California, and Maryland, and
nine foreign owned and operated Landsat ground stations
which operate under agreements with NASA. Data acquired while
beyond the range of a ground station are stored by a wide-
band video tape recorder on board the satellite until the
satellite is within range of a U.S. station. A control
center at the Goddard Space Flight Center (Goddard) monitors
and commands the satellite to acquire and transmit data
directly to U.S. or foreign ground stations.
The total anticipated life of Landsat 3 is
three years, although it may cease to function at an earlier
date. No backup satellite for Landsat 3 exists in the
current system, so a gap in continuity of MSS coverage may
well exist from at least some time in 1981 until Landsat D
is launched and begins to function in 1982 at the earliest.
2. Preprocessing
The master recordings (station tapes) at U.S.
ground stations of Landsat 3 data are processed at Goddard
to segregate data from each of the spectral bands of the MSS
and to apply (a) radiometric corrections to account for the
difference in response of the detectors in the various
spectral bands, and (b) geometric corrections which account
for distortions in the satellite viewing process and relate
the received data to the exact position on the ground that
was observed by the satellite.
The results of this preprocessing are recorded
in High Density Digital Tape (HDDT) form, either as fully
corrected data, or with the required geometric corrections
only noted on the tape. Foreign ground stations perform an
equivalent function, although not all of them apply a full
set of corrections. The time required for this process
currently averages about two weeks at Goddard, although high
priority special tasks can be completed within 48 hours.
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HDOTs are provided to the Department of the
Interior's EROS Data Center in Sioux Palls, South Dakota,
and the Department of Agriculture's facility in Houston,
Texas.
3. Processing into Standard Data Products
At the EROS Data Center, the data in EIDDT
form are put through additional computer processes to
convert them into standard data products suitable for
sale to public or private sector customers, who in turn may
use them in that form or further process them for their own
use or for resale to additional customers. Two classes of
standard data products are available -- film imagery, which
is convenient for those accustomed to working with maps and
photographs, and computer compatible tapes ?(CCTs). The tape
form is suitable for input to standard computers and lends
itself to automated or specialized data handling and analysis.
Depending on workload and priority, the time required for
the preparation of standard data products averages about 10
days, rangingfrom a few days to several weeks. The prices
charged for these standard data products are set by the cost
of producing copies and handling orders-. Each of the
foreign ground stations is able to generate its own standard
products for sale to customers.
4. Special Processing
Some users require extremely rapid processing
because of the ephemeral value of the data for such uses as
crop forecasting and water quality assessment. Special
processing to enhance certain features or to meet R&D needs,
such as the development of new interpretation techniques, also
is required by users. Some users, such as the mineral
extractive industry, arrange for their own special processing
to obtain information suited for their particular requirements.
S. Archiving
The bulk of U.S. Landsat data is archived at-
Goddard and the EROS Data Center. (Master tapes
Goddard; processed products are at the Center.)
to the physical safekeeping of the records in an
form, the archival function includes maintaining
a browse system for searching the records, and a
system that permits rapid and efficient response
for retrospective data.
are at
In addition
economical
an inventory,
retrieval
to orders
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The NASA agreements with foreign ground
station operators call for such stations to provide the EROS
Data Center with a listing, but not copies, of all their
accessions from the Landsat program. This approach
reduces the cost of operating the archive at the EROS Data
Center by avoiding the cost of generating a duplicate
archive for the foreign holdings.
In addition to the central products archive
at the EROS Data Center, separate partial collections
are maintained by major users of Landsat data for their own
purposes.
6. Training and Applications Development
Since the application of Landsat observations
to resource management is a relatively new field, training
is an important part of the current program. Training
breaks into two categoriA: (a) maintenance and operation of
station and processing equipment, and (b) training in the
interpretation and use of Landsat data.
Training in maintenance and operation is done
by the equipment manufacturers or on the job. Training in
interpretation and use of the data is available through a
number of universities and private organizations, but the
major organized effort is run by the EROS Data Center, which
has developed curriculum material and acquired the necessary
facilities. The EROS Data Center is not able to accommodate
all of the requests for training it receives. About 901 of
its current training is in support of Department of the
Interior (DOI) needs, and the balance is devoted to students
sponsored by other U.S. government agencies or foreign
governments. Foreign students often are sponsored by the
Agency for International Development (AID), either at the
EROS Data Center or in training programs abroad, which have
been conducted to foster the beneficial use of Landsat
data.
The development of new applications of
Landsat data and new techniques of interpretation goes
hand-in-hand with training professionals in the new methods.
NASA, through its technique development and transfer programs,
works directly with potential new users partly to develop
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and test new application techniques and Partly to learn at
first hand the users' practical needs. Similarly, DOI has
set up arrangements for joint application programs with
users. Someprivate sector firms work directly with customers.
S. The Currently Planned Landsat D system.
The Landsat D system was designed by NASA in large
part as an experimental system. The major objectives of the
Landsat 0 program are to continue the availability of MSS
data after the demise of Landsat 3, to assess the capabilities
of a new sensor, the Thematic Mapper (TM), and to provide a
transition from MSS to TM data. The Landsat D system as
currently designed has the following characteristics:
1. Data Acquisition
The Landsat 0 series of satellites is
designed to carry a, TM in addition to an MSS. The TM will
have seven spectral bands, including three in the infrared
region, and an instantaneous field of view (IPOV) of 30
meters for all but. the thermal infrared band. Each satellite i
sun-synchronous- orbit will have a repeat cycle of 16 days..
Data will be returned. to ground stations in two ways: (a)
directly to foreign ground stations, at S-band for those- who.
wish to continue to receive only MSS data without modification
to their equipment, and. at X-band for those who wish to
receive- a combination signal of mss and, Tit data; and (b)
indirectly through the Tracking and Data Relay Satellite
. system (TDRSS) to the single U.S. TDRSS ground station at
White Sands, New Mexico.
Two satellites, Landsat D and 0', are
currently under construction. Each satellite is estimated
to have a life expectancy of about three years.
2. Preprocessing
Preprocessing will take place at the
D ground system facility at GOddard. The production
objective is a daily output in RDDT form of 200 MSS
per day beginning no earlier than 1983, and up to 50
scenes per day no earlier than 1985. Because of the
spectral bands and the higher resolution of the TM,
resultant substantially higher complexity and volume
data, TM preprocessing, although similar in nature,
substantially more complex than MSS preprocessing.
system design provides for serial processing with 85
Landsat
scenes
TM
additional
and the
of
is
Current
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confidence that, averaged over a ten day period, all data
will be processed and made available from the ground station
within 48 hours of receipt. A Landsat Assessment system, an
R&D facility for investigation and development of new earth
resources management techniques using data from the TM
sensor, is planned by NASA in conjunction with the Landsat D
ground facility.
3. Processing and Dissemination of
Standard Products
Standard data products will include film
imagery, digital data for direct transmission where required
for immediate use, and digital data on magnetic tape. The
data will be radiometrically corrected and will include
geometric referencing information (i.e., HDT-A form). In
addition, a limited variety of standard mapping projections
will be available in both digital and film form.
The EROS Data Center will archive and dissemi-
nate Landsat standard data products to domestic and foreign
users from its facility in Sioux Falls, South Dakota.
C. The Interim Operational System
1. System Design
From the point of view of the users, "data
continuity" means that data will be collected continuously
and made available in a timely manner with a reasonable
degree of reliability. From a technical standpoint, the
following performance objectives have been identified as
applicable to a high quality operational land remote sensing
satellite system:
o Sensors designed to generate data meeting a
broad range of user requirements at a
reasonable price;
o Assured continuity of satellite coverage
without break, with one backup satellite
in orbit at all times and another on the
ground;
o 95% confidence that, averaged over a
two-day period, all data will be processed
and made available from the ground station
within 48 hours of receipt; and
o Ability to identify and process certain
data out of order to meet urgent user
needs.
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While sensors designed to generate data
meeting a broad range of user requirements cannot be
provided until the late Mast the LandSat 0 sensors will be
able to accommodate many user needs. Some system design
changes could be Made in the currently Planned Landsat 0
system that would move towards meeting these performance
objectives during the Interim Operational System. Such
system design changes have to he justified on how essential
they are to the users and how they will be financed.
a. Data Acquisition
In response to the commitment to continuity
of land remote sensing satellite data through the 1980s,
NASA and NOAA are reviewing the Landsat 0 series launch
schedule in light of two interrelated concerns:
o No backup to Landsat 3 exists other than
Landsat 0 which could lead to a, gap in
coverage between the demise of Landsat 3
and the launch of Landsat 0; and
o One or more additional satellites may have
to be scheduled to follow Landsat.0 and D',
to ensure coverage following the end of
the useful life of. Landsat D' and before
? the Fully Operational System is established.
There is a strong' likelihood that there will
be some data coverage gap between Landsat 3 and D. NASA,
however, is currently reviewing possible alternatives for
launching Landsat D. One alternative is the launch of'
Landsat D without the TMm in 1982. In that case, Landsat D'
with .the TM, which will be available for launch in 1983,
would be launched in late 1983 or early 1984.1/ To maintain
continuity between Landsat D' and the eventual Fully Opera-
tional System may necessitate procurement of follow-on
spacecraft.
Another change which could be made to the
Interim Operational System is the placement of tape recorders
on Landsat D' and subsequent satellites to ensure full
collection of MSS data when the TDRSS system is unavailable
due to schedule conflicts and to provide MSS data from the
so-called "zone of exclusion, the area over the Indian
The Administration is also considering other alternatives
such as delaying the launch of Landsat 0 until 1983
when the TM sensor will be ready.
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sub-continent and south-central USSR where direct satellite
transmission via the TDRSS is physically impossible.
However, some of the data might be obtained through ground
stations on an as needed basis.
b. Preprocessing
Improvements to the Landsat D ground
system facility at Goddard could also be made at some time
in the interim phase if necessary to minimize the risk of
losing some data or having an excessively long delay in
processing some data. Some possible ground system changes
are discussed below. To increase reliability, points in the
current system where failure of a single component could
completely halt the processing of data could be eliminated.
Equipment also could be added to provide out-of-order
processing for data on significant events such as flooding
and crop freezes. Initiation of these improvements could
move the system towards the high quality operational perfor-
mance standards.
MSS data and.standard data products will
be available on an initial operational basis no earlier than
1983. Following the launch of Landsat D4, no later than
early 1984, and assuming techniques for producing standard
data products from TM are, developed, TM data can be produced
on an Initial operational basis by 1985.
c. The "Core".SyStem
The Landsat D system, with any improve-
ments suggested above, will be considered the "core" Interim
Operational System for purposes of the document. Additional
capabilities, such as stereoscopic capability and continuous
dedicated dual coverage, will not be added to the Interim
Operational System unless users are found who are willing to
pay the initial capital and subsequent operating costs.
2. Management Arrangements
a. NOAA's Management Functions
The following transfers of operational
responsibility will allow NOAA to operate the Landsat D
System as an Interim Operational System:
o NOAA will assume responsibility from NASA
in FY 1983 for the command and control of
the system and will begin providing MSS
data on an operational basis after the
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successful launch and check-out of
Landsat 0 and the MSS ground system,
and after NASA has demonstrated that
the System is operational. NOAA will
assume responsibility for TM data when
that portion of the System reaches an
initial operational level of performance;
0 NOAA will assume responsibility from.
NASA and the EROS Data Center in loY
1983-84 for the generation and dissemina-
tion of data and.. standard data. products..
Assuming this is cost-effective, a new
facility would he co-located with the
Landsat 0 preprocessing facility at
Goddard and would be the sole sales
? outlet in the United States of data
and standard data predicts from the
Interim Operational System; and
o NOAA will take title to Landsat
? archival material at Goddard and the
EROS Data Center in. FY 1984. amd wilL
be responsible for archival. functions
for the Interim' Operational Systen..
Plans for the transfer of functions, hardware and personnel
are described in Section D of this chapter.
/n addition to managing the technical
system during the interim operational phase, NOAA should
carry out the following functions in order to assure full
implementation of an operational system:
o Manage all Federal funds required for
the operational system. Except as
necessary for its market expansion
programs and NOAA's other mission
needs, NOAA.wilI nitt fund the purchase_
of data andstandard data products by
users, the provision of special
services uniquely required by user
agencies, the preparation of value-added
products, or the R&D and any prototype
procurements required for the operational
systems (the latter being funded by
NASA);
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o Evaluate the data requirements of
users and ensure that the operational
system meets their needs to the
maximum extent possible, given user
willingness to reimburse for services
and budgetary constraints;
o Establish and operate a satellite and
? ground processing tasking system that
responds to programmatically justified
user priorities;
o Implement the President's goal with
respect to the eventual ownership by
the private sector of the land remote
sensing satellite system by pursuing
appropriate pricing and market expansion
efforts, and the establishment of a
satisfactory institutional framework
based on the private sector's willing-
ness to invest and share in the risk;
o Establish policies for the sale of Landsat
data and standard data products to users;
o Arrange for direct reception at
appropriate cost of Landsat data by
foreign ground stations, pursue
complementarity and compatibility
among national operational land remote
sensing satellite systems, and represent
U.S. operational land remote sensing
satellite interests with other countries
and international organizations;
o Seek such legislation, Executive Orders,
and Presidential directives as are necessary
for the operation of the U.S. operational
land remote sensing satellite system and
for the adoption and enforcement of appropriate
regulations.
NOAA proposes to assign the responsibility
for managing the operational land remote sensing program to
a new National Earth Satellite Service (NESS). When approved,
NESS would be a major line component within NOAA, headed by
an Assistant Administrator for Satellites who reports
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directly to NOAA's Administrator. NESS will consist of
NOAA's programs under the former National Environmental
Satellite Service, augmented to handle NOAA's new management
and policy responsibilities and the additional technical
activities. NESS will be organized to- ensure adequate
attention to policy formulation, regulation, relations with
USItts and private industry, end internet tonal activities
related to land remote sensing. NESS will continue to manage
the Nation's civil operational meteorological satellite
system and NOAA's responsibilities related to the proposed
National Oceanic Satellite System (NOSS). NOAA'S Environ-
mental Data and Information Service will manage the Landsat
archiving function and 'willdisseminate Landsat standard
data products to users of retrospective data.
b. Interagency Coordination
Pursuant to the President's decision,
the Commerce Department will, in rY 1981, establish and
chair an Assistant Secretary level Program Board for continu-
ing federal coordination and to consider issues related to
regulation of private sector in4Olvement. The Board will be
composed of representatives frOm the Departments of Defense,
the. Interior, Agriculture:, Energy, State and Commerce, the
National Aeronautics and Space Administration, the Environ-
mental Protection.Agency, the-AgencYlor International
Development, the U.S. ArMY Cot,* of-Engineers-Civil Works,
the Director of Central Intelligence and the Executive
Office of the President.
The Program Board will serve as a
mechanism for continuing Federal coordination and regulation
on such matters as:
o Policy issues related to the civil
land remote sensing statellite program;
o NOAA's management of the civil land
remote sensing satellite program;
o International negotiations;
o Priorities among the data requirements
of the Federal and other users;
o A satellite and ground processing
tasking system;
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6 Data and pricing policies;
o Proposals for private sector involvement;
o Private sector regulation;
o Federal budget requests;
o Relationships with other Federal data
sources; and
o Necessary research and development.
If NOAA's management decisions are at variance with the
Program Board's policy recommendations, the Program Board
or any one of its members may rifer such issues to the PRC
(Space) for consideration and action.
The role of the Program Board will be
re-evaluated by the PRC (Space) if an entity other than NOAA
assumes responsisibility for the ownership and operation of
the U.S. civil land remote' sensing satellite program.
c. Non-Federal Participation
The Commerce Department plans, in FY
1981, to establish a Land Remote Sensing Satellite Advisory
Committee consisting of fifteen representatives from the
interested domestic non-Federal communities, including State
and local governments, end users, organizations that use
Landsat data to supply information products, service organiza-
tions, and potential commercial system developers and
operators. These representatives will be selected by the
Secretary of Commerce and will serve three year staggered
terms. The Chairman and Vice-Chairman will be designated by
the Secretary of Commerce. The Chairman will be asked to
attend Program Board meetings as necessary. NOAA/NESS will
provide staff support to the Advisory Committee.
The Land Remote Sensing Satellite
Advisory Committee will advise NOAA with respect to the
interests of the domestic non-Federal user communities in
the following areas:
o Management of the civil land remote
sensing satellite program;
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o Priorities among the data requirements
of non-Federal users;
O Policy issues related to the civil
land remote sensing satellite programt
and
o Proposals for private sector involvement.
The role of the Advisory Committee will be re-evaluated
if an entity other than NOAA assumes responsibility for the
ownership and operation of the U.S. civil land remote
sensing satellite program.
In addition to creating the Advisory
Committee, NOAA will continue to work closely with all
users on their data requirements and on approaches to
private sector involvement in the operation of the system.
NESS will establish _an office to serve as a focal point for
liaison with the Landsat user community, technical societies
and special interest groups, and with those- companies
concerned with private sector involvement.
D. Transfers of Functions, Hardware and Personnel
Implementation of the Interim Operational System
will require transfers of the function of archiving and dis-
semination of standard data products-from the EPOS Data
Center (EDC) in the Department of the Interior and of
hardware and personnel from the National Aeronautics and
Space Administration (NASA). The necessary transfers are
set forth below. Interior and NASA have indicated their
concurrence in these transfers.
1. The EROS Data Center
The only functions at the EROS Data.Center
within NOAA's new management responsibility for the U.S.
civil operational land remote sensing satellite program
are the national archiving of Landsat data, and the servicing
of users who draw upon this archive. The many other functions
performed at EDC, such as the archiving of Interior's
aircraft data, serving users who draw upon this archive, as
well as research related to Landsat applications and the
conduct of training programs in the use of Landsat data,
primarily service Interior in the performance of its
missions.
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Interior and Commerce have agreed that it is
probably in the best interests of the programs of both
agencies that the national Landsat archiving and retrospective
user service functions be co-located with the preprocessing
facility for the Landsat program at the Goddard Space Flight
Center. Such a co-location should ensure more efficient and
reliable operation under one contractor, enable cost savings
to be realized in the modification of the MSS ground system to
handle TM data, and facilitate any future integration of
Landsat data processing with the processing of data from the
meterorological and ocean remote sensing satellite systems.
The transfer of these functions to NOAA will
occur by FY 1984 when operational use of Landsat D MSS data
has begun and management responsibility has been transferred
to NOAA. These transfers will result in the loss of revenues
to Interior from the sale of Landsat standard data products
-- currently $2.7 million. Future revenues will be collected
by NOAA.
2. NASA Transfers
NASA and Commerce have agreed on a phased
transition of operational responsibility from NASA to NOAA
with respect to the Landsat D program beginning in 1983.1/
Ownership of the operational Landsat D hardware will transfer
to NOAA along with the transfer of operational responsibility.
Major steps in this transition are set forth below:
FY 1983
FY 1983
FY 1984
Data processing responsibility
for MSS data transferred after
NASA has demonstrated that the
system is operational;
Command and control responsibility
for Landsat D transferred at the
time data processing responsibility
for MSS data is transferred;
NOAA will work with NASA to
archive and disseminate TM data
during the initial production
phase from early 1984 until
operational status is achieved.
1/ These dates are subject to refinement when the final
launch schedule for Landsat D and D' is determined;
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Specifically, NASA will provide NOAA with
space in Building 28 and elsewhere at the Goddard Space
Flight Center to house the command and control, preprocessing,
processing, archiving and dissemination functions for the
Landsat D program. NOAA will reimburse the Goddard Space
Flight Center for operational support costs and maintenance.
? No building transfers will bet required.
NASA uses contract personnel for most
day-to-day Landsat operations and control. Since NOAA plans
to contract out the operation and maintenance of the Landsat
D facilities, existing NASA contract tasks will be phased
over to NOAA during the transition period and appropriate
budget adjustments between the two agencies will be made.
When Landsat D MSS operations are transferred
to NOAA, NASA will transfer to NOKA available positions from
the Goddard Space Flight Center and from its Office 9f Space
and Terrestrial Applications, which provide current civil
service support, for the management of operational aspects
of the Landsat program, the tasking of Landsat satellites
and the interface 'between operational users and the Landsat
program.
Staff support of these functions is also
provided' by NASAA. Beadguarters staff offices, including the,
Office of the Comptroller, the ,Office of General Counsel,
and the International AffairS Division. As needed, civil
service positions will be transferred from the International
Affairs Division in connection with functions related to the
Landsat Ground Station Operations Working Group and the
negotiation of Memoranda of Understanding with foreign
station operators, which will be assumed by NOAA in FY
1983.
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Chapter III
USER REQUIREMENTS FOR THE
FULLY OPERATIONAL SYSTEM
The earliest opportunity to achieve significant
improvements in performance characteristics beyond the
Landsat D system would be 1989, since the sensor research
and development activities necessary to support an improved
system cannot be completed before that time at the earliest.
To determine the optimum design of such an improved system,
an evaluation of anticipated user requirements for data and
Standard data products from the Fully Operational System is
required.
This chapter reviews briefly the methodology used in
projecting user requirements, the current uses of land
remote sensing satellite data, and the preliminary estimates
of technical performance characteristics to meet user needs
at varying levels of satisfaction.
X. Methodology Used in Projecting User Requirements
Projecting the types and quantities of data that
users will desire a decade from now from a largely unknown,
highly sophisticated, multiple use system is an extremely
risky effort. Among the factors inhibiting meaningful
projections are:
o For those users requiring reliable and timely
standard data products, the current absence of
such products with which users can experiment to
determine the products' usefulness;
o The rapid changes in computer technology -- both
increased capacity and reduced cost -- that may
make currently impracticable types of data
analysis routine by the end of this century;
o The importance of interactive use of these
products with other sources and types of informa?
tion, such as weather, seismic, geomagnetic, and
demographic data, which makes the value of these
products dependent on changes in the availability
and cost of other products;
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o The continuing identification of new techniques for
using the products, as research on the interpreta-
tion of new types of land remote sensing satellite
data progresses;
o The tendency of users to express a preference
for aartentlY available types of data or to make
self-limiting assumptions about available
technology when defining their needs;
o The converse tendency of sophisticated users
to want the very best product, especially when
price differentials and their own levels of use
cannot readily be predicted, because the very
best product will then be available if needed;
and
o The tendency of users to define product require-
ments in terms of their current missions and
objectives, which may undergo significant
alteration by the end of the century.
Several of these factors will be affected significantly
during the 19805-by the experience derived -from the Interim
Operational System described in Chapter II, and by the scope
and character of a domestic and foreign market expansion
program further described in Chapter VII.
In analyzing user needs, the Commerce Department
drew upon the existing body of literature -- prior space
policy studies; internal studies within the major federal
user agencies; studies by associations of state and local
government users; statements by an association of users in
the minerals extraction industry; NASA studies related to
the Landsat program; and the limited number of assessments
by private companies of the future requirements of U.S.
industry, foreign industry and foreign governments.
In addition, NOAA requested the major user
groups to evaluate the initial assessment of user requirements
that was developed from the existing literature. Domestic
non-federal users were asked to contribute by reviewing the
initial assessment at five regional user workshops, commenting
particularly on those system performance characteristics which
were of importance to their applications.
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The material in this chapter includes changes
suggested by the major user groups. It represents the most
comprehensive survey of user requirements conducted to
date.
The process of collecting and assessing user
requirements is by no means complete, however. The initial
assessment was not tied to any information about prospective
costs of standard data products, which will be a key
determinant of actual user demand. In addition, no assess-
ment has been made of the number of images or computer
compatible tapes or other standard data products that could
be sold as a function of price. Such a market survey would
not yield limited meaningful results until the options for a
Fully Operational System are clearly defined and a range of
probable prices for particular types of data can be offered
for evaluation by users.
Assessment of user requirements must, therefore,
be a continuing, interactive process involving the evaluation
of needs and relative benefits as a function of system
performance and cost. Mechanisms for achieving this ongoing
evaluation will be available to federal users through the
Program Board described in Chapter II, and to the relevant
professional societies, industry associations, associations
of state and local governments and representative commercial
users through the Land Remote Sensing Satellite Advisory
Committee, also described in Chapter II.
B. Current and Projected Uses of Landsat Data
This section reviews the currently expressed
requirements of users in terms of the types of uses to which
Landsat data are now being applied. As the section will
indicate, users have widely varying needs. These needs have
been analyzed to identify probable performance characteristics
that the Fully Operational System could possess to serve the
stated users' purposes. Table III-I summarizes these needs
for the various types of domestic users. No prioritization
of these needs was attempted. Decisions of this type must
await the budget review process and subsequent actions.
Likewise, no assessment has been made as to how essential
these characteristics are in terms of users' stated purposes
and their willingness to pay higher costs.
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SUMMARY OF POSSIBLE REQUIREMENTS
FOR LAND REMOTE SENSING (A11 Domestic Users)
'(Based on Available Data as of April 1, 1980)
P00110/1611AATIC C.AUGORY GROUPS
Per 101111:611CO ealritillWlef
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1
P1aonsing/Enviroomertia1 Management
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Range 2-04) str; *030 in Most US*lui
210 in MOWS 90% of Requisenornisti
Range 3-100 01; 3000" Most Useful
3-30 loth 30% liolnigoolvals
10 011 at; 10300 MOS4 thitill
..mmrr. ....i....4 ........... ........... .........
in 01
? --------
10-30 in onsets SI% of flainfillloots
ifs-30 so seems 00116 al IlasitesesseinsAi
....O. .11,1. .0.11???? 4..14?Nomr 1.??????
1040 in snepas 211%.111aquitentenis
16-30 26%0 Ileassirainassest,
rm.. ...mom
1030 es meets 606 oi RiglitlifillIMMS
16 30 ea ousels 60% al 111mitaksilkel$111
....... ?...... ......
*snow
....... ..._. _ ....._. _. _ ....?? ?. .....,?
300(1 in meets 105 of fielietigenblail
--, .,,?. ....... ...... .?..... ?. ........41
3010 in mos 70% oi liequiteasents
.a...... .......=, ..,-.... ..........
3000 so meets MK of IRequiseasseass
Sgsectivl Mauls
tASS/TIA Type Plus Mictoonsee
1180/111 Type MS AlliCIOWIVI
1,60/161 Tins@
I unelosess
lt/hservaieut to User. Days)
2 Days ? 16%ii
2-7 Days ? 60%
7 30 Days? 36%
30 Day noiti
2 7 Days ? 4011.114
7-30 Days ? 60%
? , _
Repeat Coverage Cycle (Days)
6-7 Days ? During Growinu Season
Seasonal at Other Tirstevii
Seasonal
Seasonal
Area Coverage
-
..
Gksisal Capability
Globol Cipaltilt' ty
.
Domestic Capability
;
Steles, Coverage
Needed tor 20% 01 Ora liargurremon11
01?14.4 Or *Ws fa ORD itmliagemohis
?
Needed lot 16% pi the ilmptiriments
?11111140241 Altililal Data VOitillall
(1116 KM Swilla SCUMS) .
72.000 ia 26.000
moos to 10.000
4.000 so 6.600
.11 kossiv ke.m sap...bpe 6,..low4 ameildiesome? Oh. ia? 11141111,1 leagaleele 11010014 0111061 aril sow* Opolliad koPtioirfoh
lire to *apse 410.. dream if a eleapallea ks 4.04rnhoiwe 4???? WOO rillaeleee bir asap. Mai koala, 1400116. ariasalhis. erikabiedi somp, illasiier
rSmt-
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t eane?al S.5 NilAA brume tea Idaleeeepeal? ealaaaarebaei ea ION eaelletee?aeal." data h." Ca" "Id aaallaaallfPall "kg a "Mal alai.? la It. "a aaaaaall ai "'RIB """ "11"1".
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_ 42 _
1. Renewable Resource Applications
The feasibility of using remotely sensed data
as a component of a global agriculture monitoring system was
indicated in the Large Area Crop Inventory Experiment
(LACIE) from 1974 to 1977. This program drew upon Landsat
data and upon weather information to provide timely, objective
estimates of wheat production in several areas of the world.
It substantially transformed the state of the art in machine-
processing of Landsat data.
The LAC/E results led to the initiation of the Agricultural
and Resources Inventory Surveys Through Aerospace Remote
Sensing (AgRISTARS), a six-year research and demonstra-
tion program involving NOAA, USDA, NASA, DOI and AID.
Its goals are to develop and evaluate procedures and methods
to provide routine early warnings of changes in crop
conditions; more objective and reliable production forecasts
of wheat, barley, corn, soybeans and rice; and better
inventories of U.S. land cover, water, forests, rangeland,
and other renewable resources.
Landsat data also appear useful in inventorying and
managing rangelands and in forest management, helping reduce
forest management costs through improved sampling procedures
for estimating volumes of timber, monitoring the progress of
"clear-cutting* operations, and mapping forest fire burn
areas to guide replanting efforts.
Cooperative demonstration programs with a major
wood products company with large holdings of forest areas,
with an industry association concerned with global trading
in cotton, and other commercial organizations have encouraged
these industrial participants to plan for or implement
operational programs using Landsat data. Value added
service companies have created a small but growing service
to supply information to commercial users concerned with
commodity trading.
2. Nonrenewable Resource Applications
Landsat data, combined with other data sources such
as aircraft magnetic and gravity surveys, are widely used by
the minerals industry in its search for and exploitation of
new sources of oil, gas, and other minerals.
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HoITHIEUUMIRMMELHELULW
o LILT, 1 II! IIIJ '1 II
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Landsat data are being used to create geological
maps for the siting of major construction projects, including
railroads, highways, dams, and power plants. Landsat images
have shown many fault lines not detected using conventional
aircraft or ground data, which are iMportant in assessing
nuclear power plant sites and for earthiguaks prediction
research.
Landsat data are particularly useful in detecting
features that change over a short period of time, such as a
stream course following a major flood, or a coastline after
a major storm. Landsat images were used, for example, by
scientists in Bangladesh to measure the accretion of new
Lands to islands in the Bay of Bengal, opening the way for a
tree-planting program to stabilize the land and. expand
agricultural capacity.
3. Planning and Environmental Management Applications
Landsat imagery has proven useful for a variety of
applications related to regional planning, such as monitoring
the conversion of agricultural land to housing or the pact
at which forest land is being depleted. Because of its
limited resolution, ?MSS data have served only to pinpoint
areas of rapid change on which planners can focus more
intensive study. Righer resolution space-derived data would.
reduce the need for more expensive follow-up data collection
programs.
The ability to recognize discontinuities in the
color of inland or coastal waters using Landsat data has
proven of value in identifying erosion, river sediment
loads, oil slicks and oil seepage in coastal areas, effluents
carrying industrial or municipal wastes, siltation and
wetlands conditions. Navigation channels and inlets can be
watched to detect changes in depth which may endanger
shipping and boating.
Landsat data already have proven to be a useful
tool for acquiring valuable hydrologic information for water
resource management, such as identifying water bodies larger
than 10 acres, locating likely ground water supplies,
estimating snow cover and monitoring stream networks, all of
which contribute to water supply management and flood
avoidance studies.
Landsat data have been used for cartography,
greatly exceeding original expectations for the many
areas of the world where adequate topographic maps do not
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exist, as well as for small-scale mapping in the United
States. The satellite information can be turned into a
finished map product very promptly at a much lower processing
cost than aircraft data.
C. Data Specifications of Major Users
A better sense of the nature and scope of the
projected user demand for land remote sensing satellite data
emerges from considering user specifications in terms of
institutional categories as well as by types of use. This
section presents user needs in that framework.
1. Federal Agencies
The largest U.S. user group consists of the
Federal agencies. In 1979, the U.S. Department of Agriculture,
the Department of the Interior, the Civil Works Program of
the U.S. Army Corps of Engineers, NASA (which provided data
to industry, state and local governments, and the academic
community for cooperative research and demonstration programs),
and other Federal agencies used approximately 50 percent of
the data provided by U.S. data distribution centers. While
use by all groups is expected to expand during the coming
decades, the Federal government probably will continue
to dominate the market.
Performance characteristics related to the
analysis of renewable resources dominate the current projected
needs of Federal agencies, including
o Frequent repeat observations -- especially
during critical times in the growing
season;
o Delivery of data within 48 hours to monitor
global crop conditions in certain circum-
stances;
o Spectral bands that are most useful in discrimi-
nating between various types of vegetation,
such as wheat and other small grains;
o Higher resolution to facilitate analysis of
timber, rangeland, and small fields; and
o Capacity to collect and process large volumes
of data to deal with global conditions.
r ?
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I iprilliFliii umilmilimiljumiLt Ir LI Ili 1I 1 liLt TL L 1
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Federal programs related to geology, lithology,
land forms and related activities of the Department of the
Interior, the Corps of Engineers, and other agencies need
data from the visible, the near, shortwave and thermal
infrared, and the radar portions of the Spectrum. These
system performance characteristics are similar to those for
private industry discussed below, but most Federal users
need non-renewable resources data only from the United
States. Monthly to seasonal frequency and data delivery
within a month are adequate in most cases.
Some Federal data requirements related to
planning and environmental management support major program
objectives, such as water quality assessment, wildlife
habitat monitoring, coastal zone activities, beach erosion
assessment and flood control. The system performance
characteristics of the Landsat MSS, combined with data from
the blue-green band of the TM at resolutions higher than the
TM's 30 meters, would meet the needs of these users. The
volume of data taken uniquely for these purposes would be
relatively low, and all of it would be taken over, the United.
States and its territories. A data set taken montbly to
seasonally and delivered within one or two weeks would meet
most requirements.
The Federal government also has a substantial
interest in the availability of land remote sensing satellite
data to support its economic development activities and aid
programs abroad through the Agency. for International Develop-
ment and other Federal and international agencies. These
activities are described in greater detail in Chapter VIII.
The data needs are described below.
Preliminary Federal agency needs are summarized 41
in Table 111-2. These projections of data needs are tentative
until further analyses are completed of their programmatic
value.
2. State and Local Governments
Organizations in thirty-five states have used
Landsat data -- some as part of demonstration programs, some
as parts of established programs.
According to the National Governors Association,
use by state and local governments is expected to expand as
the technology to extract information is further transferred
to local government organizations and to the value added
service industry, which can provide derived products to meet
governmental needs.
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Performance Parameters
TABLE 111-2
SUMMARY OF POSSIBLE FEDERAL
REQUIREMENTS FOR LAND REMOTE SENSING
Percent of Require
Specified Syst
menu Satisfied by
m Parameter
Optimum Value
Minimum Acceptable Value
Spatial Resolution (Meters)
Spectral Bands
Timeliness
(Observation to Users; Days)
Repeat Coverage Cycle (Days)
2-3 m ? 37%
10 m ? 33%
30 m ? 28%
80 m ? 2%
TM Type ? 10090-/
1 Day or Less-- 1416V
2 Days ? 28%V
3 to 14 Days 45%
More Than 14 Days ? 13%
Complete Seasonal Coverage
for Non-Renewable Resources.
4 to 8 Days for Other Users
i0 in ? 25%
30 m ? 20%
80 m ? 56%
MSS-Type ? 100%
1 Day or Less ? 2%V
2 Days? 16%11
3? 14 Days ? 42%
More Than 14 Days ? 40%
Same as Optimum Requirements
Area Coverage
Stereo Coverage
Estimated Data Volume
(185 KM Square Scenes)
Global Capability
Needed for 20% of Requirements
Up to 50,000
Global Capability
Needed for 20% or Requirements
Up to 30,000
1/ MSS ihnd 7 10.9-1.1 pm) is used in analyses and hes boon found valuebta in assessing crop vigor. The TM does not observe in the interval 0.9-1.1 pig. If the
number and crItkrelity of such uses I, high. specltal bands will ins 01111.1?41.
2/ Vory rapid date delivery Is required for observations over woes allected by Migef isturkenes, floods. timilugookm. pollution events. and UMW' episode..
I/ most ethical reouhemeois are for dela which is used by the government or Industry in regions, Of global crop condition assessment and production loi0c?sti.4.
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Renewable resource applications establish
data specifications for resolution, spectral bands and data
delivery that are similar to those of the Federal government.
Only domestic data are required. For non-renewable resource
applications, system performance characteristics that meet
the requirements of Federal agencies and domestic industries
also would satisfy those of state and local governments.
Some state and local government requirements
for data needed for land use management and environmental
quality protection are more stringent. They call for higher
resolution over urban and suburban areas than over rural
areas; as well as time-series analyses to detect detailed
changes. The relative costs of acquiring these data by
satellite or aircraft need to be considered. Other planning
and environmental management requirements are similar to
those of the Federal agencies.
Table /11-3 summarizes the possible require-
ments of state and local governments.
3. U.S Commercial Organizations
Those companies involved in the search for
and extraction of oil and hard minerals are currently
the largest commercial users of Landsat data. Commercial
use of the data for crop monitoring and forest management
is in the early stages, and projections are that this demand
will grow substantially as the interpretation is transferred
to the commercial sector and data continuity is assured.
Another new market that has begun to develop is the consulting
and design engineering community. This value added service
industry is composed of those firms that have established
the capability to extract information from Landsat data to
meet the requirements of their customers. It is expected to
grow rapidly in the future.
Spectral specifications for'both-industry
and government use are the same as those specified for the
TM, with data from the infrared and thermal'portions of the
spectrum being more important than for other applications.
Industrial users who need global data place a relatively
higher priority on the acquisition of stereoscopic data over
those portions of the globe that have inadequate topographic
information. Good quality data taken seasonally and made
available within a few weeks would meet most needs, although
delivery within a day or two of acquisition is important to
those firms that are sending out field parties. Required
data volumes are much higher because industry is involved in
the global search for new mineral sources.
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TABLE 111-3
SUMMARY OF POSSIBLE STATE/LOCAL GOVERNMENT
REQUIREMENTS FOR LAND REMOTE SENSING
(Based on Available Data as of April 1, 1980)
Performance Parameters
Percent of Requirements Specifying Value
Optimum Valli
Minimum Acceptable Value
Spatial Resolution (Meters)
Spectral Bands
Timeliness
(Observation to Users; Days)
Repeat Coverage Cycle (Days)
Area Coverage
Stereo Coverage
Estimated Annual Data Volume
(185 KM Square Scenes)
10-30m 42%
30-50 m 50%
80 m ? 8%
TM TYPE ? 100%11
4 Pays ? 46%li
14 Days ? 54%
7.? 9 Daysai
30 m ?6%
80 m ? 94%
MSS Type ? 100%
4 Days ? 33%Zi
21 Days ? 42%
60 Days ? 25%
Seasonal
Domestic U.S.
Needed By 13%
2000 -- 4000
Domestic U.S.
None Specified
MSS Band 7 i0.8-- 1.1 Haiti Ii MOW in analyses end h considered valuable in assassin alp vigor. The TM does not observe in the inlenral 0.1-0.111*. SI the number
and crilicatily aS such 41 WS la hives. spectral bands sold be edlusied.
...iffy rapid dais delivery is iniquirsd foa observations Wei MOSS Milecied by mildew hurricanea. fiends, earthquakes. pollution events. and similes speseass.
Y Masi crilical rinpiiiannenis a,. low dais which is vied by the govetwesent or istilustry in tespossal et sgebel moo condition omommoonl and lliodueleass telecasting.
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Miff
'1.111111.11IIIIIIILIIIIIIIII1IRILLEILIJ11111111.11111LIF 1 II 1 1 I 1
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Renewable resource applications by industry
demand no operational system performance characterises
? beyond those that would be required by Federal users. No
unique commercial requirements for data related to planning
and environmental management have been identified. A system
that met the stated needs of Federal, state and local
? government users would be adequate for commercial purposes.
Possible requirements of U.S. private industry-
are summarized in Table 111-4. .
4. Foreign Users
Thirty-six percent of the revenue from sales
of standard data products at the EROS Data Center came from
users with foreign addresses. Sales to additional users
abroad have been made by countries that have established
ground receiving stations. Such purchases may increase as
analytical capabilities become more widely developed. NOAA
will assist in organizing and will participate in regional
meetings with foreign users. in order td. be better apprised
of the interests and data needs. of users in other countries.
Commercial and governmental users in other
countries have identified requirements for resolution,
spectral bands, repeat observations and. data delivery that
are substantially similar to those of .their counterpart
organizations in the. United States. At lower resolutions,
such as 80 meters, approximately the same volumes of data
would be acquired and processed to meet the needs of domestic
and foreign users because of domestic requirements for
foreign data. ? As resolution increases to 30 meters or
higher, the demand by foreign users is expected to grow more
rapidly.
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TABLE 111-4
SUMMARY OF POSSIBLE U.S. PRIVATE REQUIREMENTS
(Based on Available Data as of April 1, 1980)
Performance Parameter
Domestic U.S. Coverage
forerlpi Coverage
Optimum Values
Minimum Acceptable
Optimum Values
Minimum Acceptable
Spatial Resolution (Meters)
10 m ? 64%
30 ni ? 36%
30m ? 71%
80 m ? 29%
10 in ? 71%
30 m ? 29%
30 Ill -- 80%
00 m ? 14%
Spectral Bands
TM TYPE ? 86%1/
MSS-Type ? 100%
TM Type ? 100%1/
MSS-Type -- 100%
Radar ? 14%
Timeliness. Days
2 Days ? maw
14 Days ? 72%
2 Days? 17%zai
14 Days -- 14%
(Observation to User)
14 Days ? 86%
90 Days ? 18%
14 Days ? 86%
90 Days ? 80%
Repeat Coverage Cycle sDays)
Complete Seasonal Coverage for Non-
Same as for Domestic Coverage
Renewable Resources; 7-9 Days tor Other
Applicat amid
Area Coverage
Entire United States
Global Land Area Capability
Stereo Coverage
Needed for 60% of Requirements
Needed for 50% of Requirements
Es time ted Annual Data
Volume
2000 ? 5000
8000 ? 12000
(186 KM Square Scenes)
II MSS hand 7 10.8? I. I pml h used in analyses and has been found valuable for assessors, cress iliffes. The TM does not observe in the interval 0e-11.1 urn. H she
has and criticality ol such uses is high. spectral bands will be sdjusted.
2/ Vary rapid data delivery is required for observations over areas affected by major hurricanes. Hoods. earshoualtes pollution events. erid shaila, ephodss.
-I/ Must critical requirements toi data which is used by the fieverement or lositostry in regional or &bid evep condition assessment and produetiun
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CHAPTER ry
PERFORMANCE OPTIONS FOR THE
may OPERATIONAL SYSTEM
Two crucial decisions relevant to the Administration's
objective of having a Fully Operational System are when to
begin development of a system more specifically designed to
meet projected user needs on an operational basis and what
additional data specifications are to be met. As set
forth below, the earliest that a new system can be brought
into operation is 1989. A decision on when to initiate and
implement the Fully Operational System requires careful
examination of the Federal government's priorities, needed
financial assistance, private sector-interest in taking over
the system, user demands during the Interii Operational
System and the potential risk of foreign tatellite syStems
obtaining a portion of the, domestic. and foreign land remote_
sensing market.
This chapter explores some of the potential technical
options for the Fully Operational System, including extending:
and improving the Landsat 0-based Interim Operational
System. Preliminary system studies, further discussions
with users, and market and pricing assessments will have to
take place- before a decision can be reached on the preferred
option.
While prompt resolution of the question of private
sector ownership would facilitate participation by the
private system operator in the design of the system, some
minimal initial funding and development of key elements of
the new system may have to take place simultaneously with a
decision about the institutional arrangement for private
sector ownership or operation in order to better meet the
requirements of users.
?
A. System Performance Options
This section presents four hypothetical systems.
that could serve as the basis of a Fully Operational System:
(1) An extension of the Landsat 0 series;
(2) A "Minimum System!:
(3) A "Middle System"; and
(4) A "Maximum System".
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1. Common Elements
The four systems presented below differ primarily
in levels of resolution, spectral bands and frequency of
coverage, with all of them using more reliable, longer life
solid state multilinear array sensors, rather than the
mechanical scanners currently being used on the Landsat D
series of satellites. User requirements for data from
longwave thermal infrared, now on the Landsat D series of
satellites, and microwave sensors may be most efficiently
met through the modification or addition of appropriate
sensors aboard NOAA's polar-orbiting environmental satellites
or the National Oceanic Satellite System and will be considered
by NOAA in the future design of these satellites. Operational
systems for environmental and geophysical data collection
from in-situ observing platforms already exist on NOAA's
satellites and will be continued. Land data acquired via
these and other satellites could be transmitted to the
operator of the Fully Operational System for distribution
to users.
The initial formats for standard data products
produced by the Fully Operational System using any of these
tentative designs would be similar to those produced
by the Interim Operational System, although the system
operator could alter the format in response to users' needs.
Standard data products would be available routinely.
A "quick-look" capability to assess the quality of images
acquired within 12 hours of observation, and coverage of
disaster events on a limited basis within 6 hours, would be
desirable.
2. Options
At this stage in the planning process, only a
limited number of systems options could be examined in a
preliminary conceptual fashion. The number of possible
technical configurations is large. For example, existing
instruments could be redesigned for improved performance, or
new instruments such as imaging radars, high-resolution
cameras, or thermal infrared heat detectors, could be flown.
To focus this initial examination, NOAA developed data
specifications having three different levels of quality and
utility, drawing upon the still imprecise information on
user requirements summarized in Chapter III. NOAA's synthesis
of the possible data specifications for the three general
classes of uses at the minimum, intermediate and maximum
levels is presented in Table IV-1.
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MINIMUM ACCEPT-
MILE LEVEL
Restarts icit ( I)
Specital Hands (2)
fleireat coverage
Data delay
()nick look
f :liking system
Cover special
events 131
slim r v a* 1
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PUSSIDL11; DATA brpC.tricATIVN4 sly t-UADD ur UDE.D
IIENEWAHLE RESOURCES
NON-RENEWABLE RESOURCES
PLANNING AND ENVIRONMENTAL
MANAGEMENT
80 in. 1M bands 1, 2, 3, 4. plus
TM 5 411 MSS band 7.
8 9 days
two days
yes
yes
yes
80 nt. TM bands I. 2. 3. 4, plus
? TM So. MSS band 7.
30 40 m. TM band 3 or 4
about one month
lour weeks
yes
? Yes
Yes
80 on TM hands I. 2, 3. 4. plus
TM 6 or MSS band 7.
30-40 en, TM band 30r 4
about one Month
QM week
yes
YoS
yet
INTERMEDIATE LEVEL -- Includes minimum level specified above plus the following:
lIesutrition (I)
Arld'I Specs. band
Pick up missed scenes
4111 i/liii14X111 tracks
Stereo heighling
Both 80 arid 30-40 in
TM 7 (short Wave 111)
yes
30 in
Both NI and 3040 fn
TM?
no
30 m
Both 00 and 30-40 HI
TM
yes
30 le
MAXIMUM LEVEL ? Includes the minimum and intermediate Meek plus the killeviing:
Restitution ( I)
Arlin Street. hand
flepeat coverage
Stereo heighting
*wised 80 in end 10 en
TM 8 thermal lIt Il
increase to 5 to 7 dein
increase to 15 on.
derived 80 fsi and 10 in
TM-8 thermal IR Si
Increase to 16 in
derived 80 ni and 10 on
TM B thermal IR Si
increase to 16 in.
(I) COVeliltid of all of the earth's land masses desired al 80 m resolution; more limited. selected coverage on demand at the higher resoltision specified.
1h:solutions given as instantaneous field ol view (IFOVI. USDA requires 2 in resolution of telacted scenes on demand.
(2) See listing below which defines the spectral intervals of the Landsat MuhisPectrat Scanner (MSS) and Thematic Mapper (TM) bandt.
(3) One day maximum delay lot delivery of critical data on such events as Hoods and earthquakes.
l'relei ably on another satellite with an orbit that provides coverarpt at a different lime of day? .
Thansatic4Aapper (TM)
Spectral Interval Channel No.
0.46-0.62 pose 1
Mullispectral Scanner (MSS)
Channel No. Spectral Interval
4
6
0.6 0.6 rein?
0.60.7
010.8
0.8 1.1
? Wavelengds in micrometers
0.62060
0.83 0.69
0760.90
1.55175
2.08-2.36
10.40-12.50
2
3
4
6
7
S
Band description
blue WWI
green
red
near infrared OM
near infrared
-Stint t wave" f
"fiort- wave" IR
-long wave" thermal IR
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The four hypothetical systems have the
following characteristics, which are set out in Table
IV-2:
a. The Landsat D system
This system, which could be continued for
the remainder of the century by purchasing additional
spacecraft and one renewal of the ground system, has 80
meter resolution MSS bands and 30 meter resolution TM
bands. The system could provide 16-day revisit time with
occasional 8-day coverage when required. This is essentially
the same option as the "Middle System," except for the 15 to
20 meter resolution channel, which might be added to the
Landsat spacecraft. Evolutionary improvements in the
Landsat D system would focus on the introduction of solid
state multilinear array sensors as soon as possible and
increasing satellite life to improve reliability and reduce
costs.
b. The Minimum System
This system would provide coverage
in four or five bands at a resolution of 80 meters. The
spectral intervals would be similar to those used in
TM-visible bands 1, 2, 3 and 4, plus either TM shortwave
infrared band 5 or 7 -- when technologically feasible. A
band from 0.9 to 1.1 micrometers (near infrared) could be
substituted for any one of these bands. Observations from
TM band 3 at 40 meter resolution, as well as 80 meter
resolution, would be a highly desirable addition.
This system would provide 16 or 18 day
revisit time with occasional 8 or 9 day coverage when
required. Each year, the system would produce a data output
equivalent to about 40,000 scenesl/ equivalent to MSS
scenes of an area 185 km square at 80 meter resolution, plus
10,000 selected scenes at 40 meter resolution.
1/ As used here, "scenes" means usable scenes. Approximately
twice as many scenes must be carried through the early
pre-processing stage to eliminate those with cloud
cover or other defects. This estimate reflects
current experience with Landsats 1, 2 and 3.
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PERFORMANCE CHARACTERTSTICS 01 Tilts IlTrtrrlIZTICAL
LANDSAT?I) , MINIMUM MT PDI.E ,T AND MAXIMUM OPTIONS
?
LANDSAT 0
SERIES
MINIMUM
SYSTEM
MIDDLE
SYSTEM
MAXIMUM
SYSTEM
-
HIGH RESOL.
SYSTEM
"TM-bands"
1 0.45 - 052m
30m
- 80?m
00 in
89 and 40 In
so mv _
Ong bl.lod
} 80 m
30m
30 m
30andifim
3o m2I
30 in
10 in ,
10 m /
10 111
10 in21 .
20m
(Pancitro-
matic)
2m
?
2 0.62 - 0.6 pm
30m
3 0.63 - 0.69 pin
30m
4 0.76 - 0.9 pin
30m
30 m-
5 1.65 - 1.75 pm
7 2.08 - 2.36 pin
30m
30m
20m
6 10.4 - 12.6 pm
120m
..
.3i
_V
'MSS bands"
4 0.5 - 0.6 pm
80 m
5 0.6 - 0.7 pin
80 m
6 0.7 - 0.8 pill
80 m
? 7 0.8 - 1.1 pin
80 mai .
.11
figures in table are histantaneous-lield-oi -view (IFOVI in meter*.
2/ 'ASS sang ) WA ? 1.1 pan) ii youuels in crop vigor isnslysas. Tho TM does not observe 10 the Woes* 0.9- 1.1 Jon. fish. number sod filikaalv Of such USISS IS high.
spectral bands will be adjusted.
3/
Thermal di coverage may be provided. If required. by *sensor itOrn *nether eleil sendlite?
4/ On board Processing to Provide data it integral nnaltiPlee of Uai issolpilun could be considered so reduce Ade rates svitese
6/
Stereo coverage. either by pointing of the primary sensor or ley swim* inclusion al a guanine Instrument could be considered for both dui middle and maximum systems.
3
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This system would provide a level of
service less than the Landsat D system.
c. The Middle System
This system would provide coverage
in the same bands as the Minimum System at two different
resolutions: 30 or 40 meters and 60 or 80 meters. The
lower resolution will be half that of the higher resolution
in order to facilitate use of a single sensor and simplify
on-board data processing. As soon as technology allows, TM
shortwave infrared bands 5 and 7 would be added at both
resolutions. Observations from TM band 3 at 15 or 20 meter
resolution would be a highly desirable addition.
This system would provide an 8 or 9 day
revisit frequency most of the time, In addition, imaging
sensors could be steerable to avoid cloudy areas or to pick
up areas which were covered with clouds at the regular
viewing time. The number of scenes processed each year
would be 40,000 equivalent.scenes at 60 or 80 meters resolu-
tion and 20,000 equivalent scenes at 30 or 40 meters resolu-
tion; 10,000 equivalent scenes at 15 or 20 meters resolution
would be gathered from limited areas.
resolution, would
equivalent to the
This system, without 15 or 20 meter
provide a level of service essentially
Landsat D system.
d. The Maximum System
This system would provide coverage
in the four TM visible bands 1 through 4, at a resolution of
10 meters, plus TM shortwave infrared bands 5 and 7 at 20
meters resolution. On board data processing also would
provide data at 40 and 80 meters. The latter would provide
regular coverage of global land masses; the 10 and 20
meter data would be gathered from limited areas.
This system would produce global coverage
equivalent to about 40,000 MSS scenes at 60 or 80 meters
resolution, plus 40,000 equivalent scenes at 30 or 40
meters resolution. About 40,000 scenes of areas about 90 km
square would be produced at the full resolution of 10 or 20
meters.
This system would provide a level og
service far in excess of the Landsat D system.
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I II 1' L[Entlimullummajim
II II h I III I I 11{ I _t_L_
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A supplement to this system would be
necessary to meet the need for data from a single panchromatic
spectral band at a resolution of 2 meters. Such a system
would require a much lower orbit than is planned for the
other missions and thus could not be a shared satellite.
? The ground system would be specially delli4n0 for data at 2
meter resolUtiOn, with an output of 40,000 Stenos 20 km
square per year.
one of two ways:
Stereo capability might be provided in
o Stereo adaptation of the multilinear
array imaging system in TM spectral
band 3, or the addition of electronic
camera systems similar to the Return
Beam Vidicon to the Middle Or Maximum
System spacecraft; Or
O Separate spacecraft specially designed
for stereo_coverage, with either film
or electronic imaging, which could be
flown as infrequently as every la
years.
The minimum capability of the stereo
system would be coverage of the Earth's land mass with 30
meter stereo heighting capability once-every 10 years. Thii
coverage could be improved to include Imagery acquired in
each of the four seasons and to raise the stereo heighting
capability to 15 meters.
3. Cost Estimates
Only approximate estimates can be made of
system costs at this time. They do not include NASA and
NOAA system development, market expansion, or planning and
management costs, nor do they include the cost to add a
longwave thermal infrared or advanced microwave sensors to
the operational system. Rough estimates of ten-year capital
and operating costs of the full systems at each level
are:1/
o $2.0 billion for Landsat D continuation;
o $1.0-$1.5 billion for the Minimum System;
o $1.5-$2.5 billion for the middle System;
1/ All costs are in FY 1980 dollars.
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Alb
A F I
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o $3.O-$5.0 billion for the Maximum System;
and
o $4 to $5 billion additional for the 2
meter system.
While any estimate at this time is premature,
the thermal infrared capability, with a. resolution on the
order of 100-200 meters, probably can be added to an existing
operational spacecraft without exorbitant cost. The additional
cost to produce one global set of satellite stereo data is
estimated to be $200 to $400 million for 30 meter stereo
heighting capability and $300 to $700 million for 15 meter
stereo heighting capability.
These estimates assume that:
o The spacecraft will be launched and re-
trieved by shuttle;
o Retrieved spacecraft will be refurbished
for reuse;
o Data will be relayed to ground via geosta-
tionary satellites; and
o Highly reliable, all solid state sensors
and onboard data storage devices will be
used, with sufficient redundancy to achieve
a goal of five-year life for each spacecraft
mission before the end of the ten-year
operational period.
4. Timing Considerations
Initiation of any of these operational
system alternatives is highly dependent on the development
of reliable sensor and other spacecraft subsystem components
needed to achieve long life for each spacecraft and initiation
of detailed system trade-off studies and system design. The
Minimum or Middle System probably could be launched by the
end of this decade if necessary R&D and initial system
studies are initiated in the next few years. A tentative
schedule based on a new spacecraft appears in Table IV-3.
This development period might be one year less if the
shortwave infrared channels are omitted on the first
spacecraft and a shorter life for the initial spacecraft is
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Declassified and Approved For Release 2013/10/24: CIA-RDP10M02313R000703980023-9
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accepted. The improved Landsat D system could also be
launched in 1989, as soon as the solid state sensors have
been developed and integrated into the Landsat D spacecraft,
as shown in Table IV-4. The Maximum System would take at
least two additional years to implement.
Stereo capability can be included in the same
general time frame. If existing technology is used with a
dedicated spacecraft and ground system for stereo capability
and full funding is made available for design in FY 1982 and
construction in FY 1983, a launch as early as 1988 may be
feasible.
B. Initial Evaluation
The following provides an initial, very tentative
evaluation of the hypothetical options. Decisions on
performance specifications will only emerge from the lengthy
interactive process between preliminary system design, user
requirements analysis and cost estimating that will be a
part of the ongoing planning process for the Fully Operational
System.
The Minimum System does not appear to meet the
currently stated needs of the majority of users, especially
with respect to resolution, which is particularly important
for the renewable resources and environmental management
user groups. It has lower performance characteristics
than even the Landsat Thematic Mapper, which will be used
for the Interim Operational System, and would amount to a
regression in the quality of available data. It would not
come close to meeting the competition that may be provided
by the French and the Japanese systems, so both U.S. tech-
nological leadership and a large part of the market for U.S.
data and standard data products could be lost. A system
with this level of performance probably would not be worth
the investment.
The upgraded Landsat D system and the optimum
Middle System are relatively similar in cost and performance.
Indeed, additional system study may show that the basic
multi-mission modular spacecraft (MMS) used for Landsat D
can be improved to serve as the optimum Middle System
spacecraft. These systems would have to provide higher
operational reliability, incorporate the latest technology
and lower average annual costs through longer spacecraft
life if users are expected to forego other data sources in
favor of land remote sensing satellite data. A 15 meter
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TENTATIVE FULLY OPERATIONAL $YSTEM UTILIZING
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TM band 3 with twice the resolution offered by the 30 meter
TM band 3 on the Landsat D could be desirable. In addition,
the development by 1989 of an all solid-state multilinear
array system with a 15 meter TM band 3 would place the U.S.
at least on a par with the French and Japanese systems,
which are scheduled to begin operation in the mid-1980s.
The Maximum System meets virtually all stated user
needs, but at a cost that users will probably not be willing
to pay. Until experience is gained with the data from the
TM system and more widespread use of land remote sensing
satellite data develops, the additional value of the refine-
ments offered by this system is somewhat speculative.
moreover, the development of the maximum System will take at
least an additional two years.
To reach firm decisions on system specifications
will require further analysis of user requirements, including
stereo requirements, the marginal costs of various additional
capabilities, the establishment of budget priorities and the
mechanisms for system financing.
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CHAPTER V
REVENUES/ PRICING POLICIES ANI, FINANCIAL ASSISTANCE
The Administration bawlestablished a& a national
goal eventual ownership and operation by the private sector
of our civil land remote Sensing activities, and directed
NOAA to plan for system financing including pricing policies
for the users sharing of costs. Accordingly, marketplace
objectives should play a significant role in the desigm and
management of the Interim and Fully Operational System*,
although a number of other considerations, such as the
desire to assure U.S. technological leadership, will also
shape the final decisions,
This chapter examinee the Interim and Fully Operational
Systems from a business. lpoint of vietw that requites the
generation of revenues to recover capital and operating
costs and to provide a reasonable return an capital through
the provision of a valuable service to users. The chapter'
identifies the policy choices involved and the nature of the
Federal financial commitment that required for
private sector ownership, reviews the revenue currently
projected to result from new pricing policies and potential,
market expansion activities and discusses alternative
mechanisms for capital and *Pirating assistance. Finally,
the chapter examines alternative approaches to sharing the
burden of Federal financial assistance among the Federal
agencies.
???
A. Projected Revenues and Costs
Revenues of the operational system will be generated
by sales of data and standard data products and by foreign
ground station access fees. The current price of data and
standard data products is based upon the cost of reproduction,
with no attempt being made to control additional reproduction
by users, so that a computer compatible tape costs $200 and
various types of Landsat images cost between $8 and $50.1/
The current access fee is a.nominal annual payment of
$200,000 per station. /n 1978, the current Landsat system
generated $4 million from sales and access fees of $1.8
million for a total of nearly $6 million in annual revenues.
Of the $4 million, $2.7 million was derived from sales and
$1.3 million is the value attributed to the data distributed
without charge.
1/ All revenues are in FY 1980 dollars.
?
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A hypothetical five to ten fold price increase,
phased in over a period of some years, assuming the increases
are absorbed without any significant overall loss of sales
to competing sources of data (such as aerial photography,
field party surveys and foreign land remote sensing satellite
systems) could increase revenues over time to $30-60 million
per year simply by raising prices.1/ In addition, assurance
of data continuity and reliable delivery of data and standard
data products, combined with a market expansion program
discussed in Chapter VII, should enhance the prospects for
growth in unit sales volume. If one assumes a hypothetical
10% growth in data sales per year and only a hypothetical
5-fold increase in both the price of standard data products
and foreign station direct reception fees, then by the year
2000, annual revenues of $140 million would be generated by
the system. Unfortunately, reliable projections of market
growth and price elasticity are not possible at this time.
However, the doubling of current unit sales at higher prices
is a possible goal.
The tentative estimates for the hypothetical Fully
Operational System options, described in Chapter IV, indicate
that approximately $100 million to $400 million or more in
annual revenue would be necessary, depending on the technical
capabilities of the system selected, to cover total annual
costs. They include operating and maintenance costs, replace-
ment of capital equipment, dividends, taxes, interest on
debts, marketing, insurance, and a reasonable return on
initial capital.
Similar tentative estimates covering the remaining
total annual costs for the Interim Operational System
indicate that approximately $150 million in annual revenue
would be necessary to cover total annual costs.
B. Pricing Policies
1. Standards
The pricing of data and standard data products
from the Interim and Fully Operationals System should
conform as much as possible to the following standards:
1/ Whether subsequent reproduction of dissemination of
data products by Federal agencies and other users would
need to be conditioned upon payment of fees to make
prices well above cost of reproduction meaningful
remains to be seen. This matter is addressed under the
heading Control Over Data and Standard Data Products in
Chapter VI, Section B.1.
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a. Consistency.
Pricing policies should be developed that are
consistent for foreign and domestic users. Foreign and
? domestic users, with the possible exception of the Federal
agencies who might pay higher prices as a form of financial
assistance (as discussed below), should pay the Same price
for the same product and associated services. Fees charged
to foreign ground stations receiving data directly should be
set to encourage consistency between prices for domestic and
foreign standard data products.
b. Assistance to Special Users.
Certain classes of users whose data usage
is in the public interest may be driven out of the market by
higher prices. While the policy of consistency precludes
discounts, such users could seek direct Federal grants to
enable them to purchase needed land remote sensing satellite
data at established prices, in special and selected circum-
stances.
c. Market development.
Especially during the Interim Operational
System, prices should be established in a manner to increase
the volume of unit sales without losing major customer
demand. Price changes should be announced well in advance
so that users, especially those dependent on governmental
appropriations processes, can plan their budgets accordingly.
2. Fee Structure
Examples of the types of fees the operator of
the Interim and Fully Operational Systems could charge for
data and standard data products are:
o Basic Fee. A fee paid by each user on
each standard data product it purchases from
the U.S. system operator. These fees would
vary in proportion to the cost incurred in
producing that product. They would be paid
by users of both real-time and retrospective
data. Other factors such as timeliness, the
placing of special orders and special handling
could be reflected in a surcharge schedule.
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o Royalty. Fee. A fee paid by each U.S. and
foreign user and foreign ground station
operator on the reproduction or resale of
Landsat standard data products.
o Direct Reception Fee. One or more fees paid
by foreign ground station operators receiving
data directly from U.S. land remote sensing
satellites. Examples of such fees are: (1)
an annual access fee like the $200,000 fee
per station per year currently being paid by
Landsat station operators, and (2) a transmis-
sion fee paid by foreign ground station
operators for data transmitted to and received
by the foreign ground stations. This latter
fee would be based on the amount of data
requested.
A further study of pricing options will be made during FY
1980 and FY 1981 for review by the Program Board and the
Land Remote Sensing User Advisory Committee.
3. Price Levels
The objective of users sharing of the costs of
the operational system precludes a continuation of the
present policy of limiting prices to the cost of reproduction
and leaving user reproduction completely uncontrolled.1/
While specific price levels for specific products cannot
reasonably be established without more detailed study, two
approaches to pricing during the Interim Operational System
are being considered:
Option 1. Price Increases Designed to
Maximize Revenues
NOAA would raise prices when it assumes responsi-
bility for the Interim Operational System to levels designed
to maximize immediate revenues from sales. For instance,
price increases effective in FY 1983 would be announced in
FY 1981 as a result of preliminary pricing studies, and
would be confirmed through contracted market studies in FY
1982.
1/ Some users oppose increasing prices above the present
cost of reproduction level, which they believe maximizes
the public benefit.
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Pros: o Generates revenue to help offset recurring
costs of the Interim Operational System.
o Tests the market for land remote sensing
data at relatively high prices early enough
to provide some feedback to- decisions with
? respect to the tullY Operational System,
including the potential for private sector
investment.
Cons: o Foregoes introductory pricing to develop
the market; could price some users out of the
market and discourage new users.
o Creates an opportunity for market penetration
by foreign land remote sensing satellite
systems.
o Factual information on price elasticity for
data and standard" data products cannot be
obtained until the. Interim and Fully Operational
Systems are more clearly defined.
Option 2. Price Increases Phased to Promote
Development
mu. would raise prices on a phased basis when
it assumes responsibility for the Interim Operational System.
Data and standard data products would be priced at levels
initially designed to encourage potential users to invest in
support equipment and to reduce the use of competing methods
of data collection.
Initial price increases effective, for instance,
in FY 1983 would be announced in FY 1981 as a result of
preliminary pricing studies. Price increases for FY 1984
and subsequent fiscal years would be developed through
contracted market studies in FY 1982 and announced in late
FY 1982. Notification of price increases well in advance
would be provided to test demand without distortion from-
temporary budget shortfalls resulting from unanticipated
price changes.
Pros: o Factual information on price elasticity for
data and standard data products cannot be
obtained until the Interim and Fully Operational
Systems are more clearly defined;
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?
 I _1 It I IJW
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o Users acquire data at rates that will
allow them to assess its utility to their
operations and make long-term coimitments;
and
o Long-term increases in market volume, through
encouragement of new users and avoidance of
pricing some existing users out of the
market, may generate greater revenues for the
Fully Operational System.
Cons: o A lower revenue flow may result during the
early phases of the Interim and Fully
Operational Systems, possibly discouraging
private sector investment.
C. Financial Assistance
The Federal government could reduce the gap between
the revenues and the total annual costs that likely would be
experienced by a private operator or a government corporation
in a number of ways, ranging from providing some or all of
the initial capital to agreeing to pay higher prices for
the data and standard data products it uses. To the extent
that the Federal government chooses to provide or underwrite
initial capital, the level of operating assistance can be
correspondingly reduced, and vice versa. Actual outlays for
operating assistance unlike capitariiiistance, can be
deferred until the system begins to deliver products, if an
advance commitment guarantees the operator a market for its
products.
The following paragraphs briefly identify
the primary capital and operating assistance techniques:
1. Capital Assistance
a. Grants -- The Federal government could give
one or more grants to a private operator or a government
corporation, which would require neither the payment of
dividends or interest nor repayment of principal, and would
thereby directly reduce the revenues required to meet costs.
Federal grants as direct payments might be unattractive
in tight budget times as compared with equity or loan
guarantees.
b. Equity Guarantees -- A private operator
could raise capital in the private financial market by
issuing stock at a Federal government-guaranteed minimum
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111. ..'.1..1t1111111!111[11.111311111111MINitman Ellim I'111!I 11111! !I IIII[IIH! '1 I!
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price. The Federal government could purchase any unsold
stock at the end of a specified period at the guaranteed
price and could stand ready thereafter to repurchase that
stock at that same price. Such a price guarantee might make
the stock offering of a private operator attractive enough
at the outset so that all stock would be purchased by
private investors.
c. Government Loans and Loan Guarantees --
The Treasury Department or the Federal Financing Bank could
make loans to a private operator by buying corporate bonds,
or NOAA could guarantee loans made to a private operator or
to a government corporation by the Treasury Department, the
Federal Financing Bank, private investors, or all three.
All such loans, except those from private investors, would
involve interest rates at or near Treasury rates, which
could be well below the market rate. The interest rates on
private loans guaranteed by NOAA would be somewhat higher
depending upon market conditions.
2. Operating Assistance
a. Federal Purchase Guarantees -- NOAA
could contract with a private operator or a government
corporation for a specific flow of land remote sensing .
satellite data and standard data products designed to meet
the minimum data needs of all Federal users over a period of
several years at prices that ?would ethsUra that revenues from
these purchases cover virtually all the costs of operation.
Other users probably would be charged lower prices, since
the operator (and therefore the Federal government) would
benefit from sales at any price above direct production
costs for the additional standard data products. Federal
users could purchase additional standard data products at
current market prices at any time.
b. Overall Price Assistance -- The Federal
government could agree to pay a private operator or a
government corporation a fixed amount for each unit of data
or standard data product sold to all or specific groups of
users. The amount could be adjusted periodically based on
an evaluation of the corporation's operations.
c. Appropriations -- The Federal government
could provide funds to a private operator or to a government
corporation to increase the revenue stream sufficiently to
assure cost recovery. The amount could vary annually or be
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fixed at the outset on the basis of a projection of long-term
needs. In the latter case, the corporation would retain a
full incentive to reduce costs and increase revenues.
d. Free Services -- The Federal government
could provide launches, data transmission service from the
satellite to the ground facility via TDRSS, or insurance for
space hardware to a private corporation or a government
corporation, thus reducing the corporation's costs substantially.
e. Tax Incentives -- Accelerated deprecia-
tion or additional investment tax credits could be granted
to a private operator to reduce its taxes. Since this form
of assistance is not useful if the private operator has no
tax liability, tax incentives would be effective only for an
operator with taxable income from land remote sensing
or other operations.
The appropriate financial assistance mechanism
may depend on the institutional option selected. Various
institutional options and assistance mechanisms are considered
in Chapter VI.
D. Appropriation of Federal Financial Assistance Costs
Three possible options exist for allocation of the
Federal financial assistance costs among the budgets of NOAA
and the Federal user agencies:
Option 1. NOAA Budgets all Funds
NOAA would be responsible for obtaining
appropriations for that portion of the capital and operating
costs of the "core" Interim and Fully Operational Systems
not covered by revenues as an add-on to its existing
budget. In addition, NOAA would seek funds for any optional
components beyond the core system that are required to meet
the special needs of users, such as, for example, stereoscopic
or other special sensors, or more frequent coverage.
The pros and cons of Option I are:
Pros: o Provides NOAA with leverage to establish
priorities among users' technical requirements;
o Focuses responsibility for policy and
budget development and presentation in
a single agency; and
o Focuses policy and budget review in
four Congressional subcommittees.
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Cons: o Fails to provide adequate incentives
for user agencies to make tradeoffs
between satellite and other data
sources, and between programs uti-
lizing land remote sensing satellite data
And other mission Protgramm4
o ?Ocuses program justification in. NOAA' S.
Congressional committees, thereby diluting
the influence of the constituencies of user
agencies;
o Requires justification of special system
capabilities before Congressional subcommittees
that are not necessarily knowledgeable about
the specific requirements of the individual
user agencies.
Option 2. NOAA Budgets "Cores System Funds:
User Agencies Budgets Special System,
Capabilities
NOAA would obtain appropr i at ions only for that
portion of the capital and operating costs of the "core"
Interim- and Filly Operational Systems- not covered by revenues
as an add-on to its existing biadget., These "core" systems
would include the space and ground segment elements necessary
to meet the common needs of the majority of users. The
costs for any special system capabilities, such as stereoscopic
or other special sensors or more frequent coverage, would be
budgeted by the user agencies that want these capabilities.1/
The pros and cons of Option 2 are:
Pros: o Provides NOAA with leverage to establish
priorities among users' technical require-
ments for the core system;
o Focuses responsibility for policy and
budget development and presentation,for
the core system in a single agency;
In addition, joint funding arrangements with the
private sector could be negotiated.
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o Focuses policy and budget review of the
core system in four Congressional sub-
committees;
o Provides incentives for user agencies to
make cost tradeoffs with respect to the
Special system capabilities between
satellite and other data sources, and
between programs utilizing land remote
sensing satellite data and other mission
programs; and
o Requires agencies with special needs to
justify provision of any special system
capabilities.
Cons: o Fails to provide incentives for user
agencies to make cost tradeoffs between
satellite core system and other data
sources;
o May require NOAA to coordinate budget
presentations with one or more other
agencies and complicates the budget
approval process;
o Requires justification of special system
capabilities before additional sets of
authorization and appropriation committees
that are not necessarily knowledgeable
about land remote sensing from space; and
o Focuses program justification for the core
system in NOAA, thereby diluting support
from the constituencies of other agencies.
Option 3. User Agencies Fund All System Funds
The major Federal user agencies would obtain
the appropriation of their proportionate share of that
portion of the capital and operating cost of both the "core"
and any special system capabilities of the Interim and Fully
Operational Systems not covered by revenues.
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The pros and 02nS Of Option 3 Are:
Pros: o Provides maximum incentives for Federal
user agencies to make cost tradeoffs
between satellite and other data sources,
and between programs utilizing land remote
sensing satellite data and other mission
programs;
Cons:'
o Most fairly distributes costs based
on expected use;
o Brings to bear the constituency influence
of the user agencies;
o Shows commitment of Federal user agencies
to the benefits of this program; and
? Gives participating agencies more leverage
in setting priorities.
o* Limits NOAA's effectiveneis in establishing
priorities between users' technical
requirements;
o Splits resposibil ity for program an&
budget review among many Congressional
subcommittees;
o /f one Federal user agency withdraws from
or loses Congressional support for the
program, costs to the remaining agencies
would increase unexpectedly, or the System
could be jeopardized;
o Makes NOAA's technical defense of the
budget difficult due to the large number
of concerned Congressional committees;
and
o Would lessen the probability of non-Federal
user requirements being considered in the
design of the system.
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CHAPTER VI
INSTITUTIONAL APPROACHES TO
PRIVATE SECTOR INVESTMENT AND MANAGEMENT
Four principal institutional alternatives are examined
in this Chapter for meeting the goal of eventual operation
by the private sector of the U.S. civil operational land
remote sensing satellite activities. In addition to these
alternatives, the need for legislative policies to guide a
private sector owner in its operation and for the establish-
ment of a regulatory framewrk to oversee any private owner's
activities are discussed.
some
land
A. Institutional Alternatives
Four major options have been identified for achieving
degree of private sector operation of the U.S. civil
remote sensing satellite system. These options are:
o A private corporation;
o A legislatively established for-profit private
corporation;
o A government corporation with private sector
operation and with a subsequent transfer to the
private sector.
o Federal agency ownership with private sector
operation and with a subsequent transfer to the
private sector.
These options were developed in part and reviewed at two
workshops conducted with representatives of a broad cross-
section of private corporations interested in the land
remote sensing satellite program. An initial assessment of
some pros and cons of these options is set forth below.
Option 1. Private Corporation
A private corporation or a consortium of private
corporations would be selected to own and operate all or a
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Part1/ of the Fully Operational System. This arrangement
woulU have the following attributes:
o A private corporation would be selected
through a competitive process to own and manage
the system for a specific period of time. Re-
competition would occur at the end of this Period.
o The private corporation's.own management and
board of directors would be responsible for
managing the system.
o The capital needed to develop and build the
system would be provided through private
equity, private debt investments and
corporate retained earnings. No Federal
loans or loan, guarantees would be provided.1/
Industrial interest in owning and operating the U.S.
civil land remote' Sensing satellite system varies.
Two companies have expressed interest in Awning and:
operating both the space and the ground segments.
Other companies, depending on whether they are aerospace%
or data processing companies, have expressed.. interest.
in either the space segment or the ground segment, with
the Federal government owning and operating the other
segment. In addition, interest has been expressed
Among mineral and petroleum companies in a specialized
satellite system that would provide stereoscopic
data. .
2/ Industry representatives are in agreement that, in the
absence of Federal data purchase guarantees, this
option is not viable at this time because of the
projected gap between system revenues and system costs
and the uncertain market during the 1980s. Their
preferred Federal assistance. appears to be a long-term
service contract by which-the Federal government would
guarantee a certain annual income to the private
corporation, for perhaps a ten-year period, in return
for having its requirements for standard data products
met. The Department of the Navy's Leasesat is an
example of this approach. The private corporation
would be required to meet non-Federal user requirements
and would assume the associated business risk.
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o A portion of the system's revenues would
be provided by a long term Federal contract
guaranteeing purchases of the standard data
products required to meet the government's
needs ?i/
o The private corporation would assume the
risk of recovering the remaining percentage
of its capital and operating costs, plus a
profit, through an aggressive market
development program.
o The private corporation would be regulated
by NOAA to ensure compliance with U.S.
national and international policies.2/
The pros and cons of Option I are set forth
below;
Pros: o Would achieve the goal of private sector ownership
and operation at the earliest possible time;3/
o Could place some of the financial risks in the
private sector.
1/ The contract terms would provide the necessary financial
assistance by setting the prices to be paid by the
Federal government for its basic data needs at a
sufficiently high level to make cost recovery feasible.
Alternatively, the quantities of data, but not the
prices, could be specified, with a separate fixed
subsidy in addition.
2/ NOAA would need authorizing legislation to enable it to
regulate any private system operator, to enter into a
long-term service contract on behalf of Federal user
agencies and appropriations to finance any long-term
service contracts.
3/ Transfer of Federal land remote sensing equipment
or designs to private ownership may be inhibited by the
possible existence of contract restrictions protecting
equipment suppliers against the transfer of such
technology.
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o Would defer Federal outlays for the fully
operational system through use of a long-term
data purchase contract by whose terms control
over the private owner's activities could be
established.
O Would provide a, strong Profit incentive for
vigorous market development and system
efficiency.
o Might be more responsive to market demands than
the Federal government since a private corporation
is likely to spend more resources on market
development.
o Would permit Federal reassessment of this option
at the end of the contract period.
Cons: o Would probably be infeasible unless long-term
Federal purchase guarantees were given.
O The Federal goverheent would be Wow to 4point
members to the private corporation's Board of
Directors to ensure. Federal participation
in the day-to-day direction of a system largely
serving Federal needs and largely funded with
Federal monies.
o Changing Federal information needs might not
always be met by a private corporation.
o A private corporation owning the space segment
and the resulting data could cause foreign
concerns about abuse, possibly leading to
adverse foreign and space policy consequences.
o Could make it more difficult to achieve the goal
of complementarity with foreign operated satellite
systems, since limited Federal control of the
private corporation's satellite activities would
exist.
o Could make it more difficult to achieve potential
savings by integrating atmospheric and oceanic
operational remote sensing satellite activities
with those for land remote sensing.
o In the absence of sizeable Federal capital and
operating subsidies, the competitive process for
ownership and operation of the system would be
limited to a few very large corporations.
o Those large corporations who would respond to a
competitive selection process might have potential
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conflicts of interest as users or as system
providers with the operation of a land remote
sensing satellite corporation.
Option 2. Federal Establishment of a For-Profit
Private Corporation
The Federal Government, through legislation would
establish a for-profit private corporation to own and
operate all or a part of the U.S. civil land remote sensing
satellite system. This corporation would have the following
attributes:
o Federal and non-Federal representation
would be provided on its Board of Directdrs.
o The capital needed to develop and operate the
system would be provided through the sale of
capital stock and debt obligations in the
private financial market or through the Federal
Financing Bank and the Department of the Treasury.1/-
If all the corporation's stock were not purchased
on the private market within a pre-determined
period, the enabling statute could provide
for government purchase of a limited percentage of
the unsold stock or for the withdrawal of the stock
offering and use of another option.2/
o Stock ownership by private corporations active
in the aerospace, data processing and value-added
service fields would be limited to a specific
percentage of the corporation's stock.
o A portion of the corporation's revenue would be
provided through a long-term Federal service
contract guaranteeing purchase of the standard
data products required to meet the Federal
government's needs.
1/ NOAA would need authorizing legislation to enable it to
obtain up-front appropriations covering any government
loan.
2/ If necessary, the statute could authorize the Federal
government to guarantee a base price for the shares of
stock purchased by the general public. However, such a
guarantee would significantly limit the assumption of
risk by the private sector under this option. If not
enough stock was purchased, the desirability of moving
forward with such an institition would have to be
reassessed.
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o The corporation would assume the risk of
recovering the remaining percentage of its
capital and operating costs, plus a profit,
through an aggressive market development
program.
o The corporation would be precluded from it-
self building the space and ground SegmentS
and would be required to procure its hardware
and software through a competitive bidding
process.
o The corporation would be regulated by NOAA
to ensure compliance with U.S. national and
international policies. The statute also
could provide for periodic Federal review of
the corporation's affairs.
The Pros and Cons of Option 2 are set forth
below:
Pros: o Would achieve the ?giml Of eventual private
sector ownership and and operation earlier than
Options 3 and 4.1/
o Would ensure Federal. participation in the
day-to-day management of a system largely
serving Federal needs and largely funded with
Federal monies.
o Would spread financial risks among private
investors, private lenders and the Federal
government.
o Use of a long-term data purchase contract would
defer Federal outlays for the Fully Operational
System, although any Federal equity participation
would require immediate outlays.
o Would provide a strong profit incentive for
vigorous market development and system efficiency.
o Might be more responsive to market demands than
the Federal government since a private corpora-
tion is likely to spend more resources on
market development.
1/ Transfer of Federal land remote sensing equipment or
designs to private ownership may be inhibited by the
possible existence of contract restrictions protecting
equipment suppliers against the transfer of such
technology.
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Cons: o Once the corporation is established, the Federal
government might be committed to its continued
support for an indefinite period of time if it
turned out to be unsuccessful financially.
o Would create a statutory monopoly, limiting
entry into the market by other private
corporations for the foreseeable future.
o Although less likely to cause serious
concern than Option 1, a legislated private
corporation owning the space segment and
the resulting data is more likely than
Options 3 and 4 to raise foreign concerns
about abuse, possibly leading to adverse
foreign and space policy consequences.
o Might make it more difficult to achieve the
goal of complementarity with foreign operated
satellite systems than under Options 3 and 4.
o Might make it more difficult to achieve potential
savings by integrating civil atmospheric and
oceanic operational remote sensing satellite
activities with those for land remote sensing
than under Options 3 and 4.
Option 3. Federal Establishment of a Wholly-
Owned Government Corporation with a
Subsequent Transfer to the Private
Sector
The Federal government would establish a wholly-owned
government corporation to own and operate the U.S. civil
land remote sensing satellite system. This corporation
would have the following attributes:
o The corporation would report to the Secretary
of Commerce.
o Federal and non-Federal representation would be
provided on its Board of Directors.
o The members of the Board of Directors would be
appointed by the President or the Secretary of
Commerce.
o The capital needed to develop and operate
the system would be provided through
government purchase of the equity interest
in the corporation and through the sale of
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debt obligations in the private financial
market or through the Federal Finance Bank
and the Department of the Treasury.
o A portion of the corporation's revenue would
be provided through a longterm. Federal,
service contract guaranteeing purchase
of the standard data products required to
meet the Federal government's needs.
o The corporation would assume the risk of
recovering the remaining percentage of its
capital and operating costs through an aggressive
market development program.
o The corporation would be precluded from itself
building the space and ground segments and would
be required to procure its hardware and software
through a competitive bidding process.
o The corporation would be managed so as to ensure
compliance with U.S. national and international
policies. The statute also would provide for
periodic review of the corporation's. affairs.
o The corporation would be-transformed into a
tor-profit private corporation through the
sale of its stock or the disposition of its
assets to a private corporation or consortium
as system revenues warrant.
The Pros and Cons of Option 3 are set forth
below:
Pros: o Transition to private sector financing and
management of the system could occur when
system revenues so warrant.
o Would continue close Federal management and
control of a system for which Federal entities
are currently the largest users.
o Could make it easier than Options 1 or 2
to achieve the goal of complementarity with
foreign operated satellite systems.
o Foreign concerns about abuse would be less
likely than with Options 1 and 2.
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o Offers greater potential for integration of
atmospheric, oceanic and land remote sensing
satellite activities than Options 1 and 2.
Cons: o Would not immediately achieve the goal of
private sector ownership.
o Would create another government program, restricting
participation by private corporations to equipment
or service contracts.
o Would place all financial risks on the
government.
o Would not provide as strong an incentive for
recovering all costs through data and product
sales since, historically, the market development
programs of Federal agencies have been unsuccessful.
Option 4. Federal Agency Ownership With
Private Sector Operation with a
Subsequent Transfer to the Private
Sector
As the Federal program manager, NOAA would develop
and own the U.S. civil land remote sensing satellite system
and private corporations would operate all or a part of the
system under contract with NOAA.- When the system becomes
financially viable, it would be transferred to the private sector.
The option involves the following:
o A private corporation would be selected
through a competitive process to operate
all or a part of the system for a specific
period of time. Re-competition would
occur at the end of this period.
period.
o The government would be responsible for the
capital and operating costs of the system.
o Users would pay the Federal government fees for
data and standard data products.
o Transfer to private sector ownership would take
place when the system becomes financially viable.
The Pros and Cons of Option 4 are set forth below:
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Pros: o Would ensure maxim= Federal control of a
system largely serving public needs and
largely funded with Federal monies during
the period of Federal ownership.
o Could make it easier to achieve the goal.- of
coMpleMentarity with. foreign operated satellite
systems during the period of Federal ownership.
o Could minimize foreign concerns about
abuse during the period of Federal ownership.
o Could enhance potential for savings through
integration of atmospheric, oceanic and land
remote sensing satellite activities during the
period of Federal ownership.
o Would permit Federal reassessment of private
sector ownership options after the implementation
of the Interim Operational System.
Cons: o Would achieve thel goal of evenival piivite sector
operational involvement, but would not do SD now.
o Transition to private sector, financing and
management of the system would be deferred at
least until the early 1990s. or until an industry
proposal is accepted.
o Would place all financial risks for development
of the first Fully Operational System on the
government.
o Would require appropriations of initial Federal
outlays for the Fully Operational System in 1982.
o Would not provide as strong an incentive for
recovering all costs through data and product
sales since, historically, the market development
programs of Federal agencies have been unsuccessful.
These options will be carefully examined by the
Administration over the next several months to determine
which alternative best serves Federal, state and local
government and private sector interests.
B. Factors Affectin9 Industry's Decisions on Invest-
ment
Private sector representatives tentatively have
identified a number of factors that will have a strong
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influence on the willingness of private individuals and
organizations to invest in land remote sensing satellite
operations. This section reviews these factors and some
initial Federal responses. Inevitably, the Federal govern-
ment, in considering the national interest, may not give a
private operator all of the advantages it might want.
The information with respect to these concerns comes
from discussions with industry representatives. In a June
1979 report, an interagency task force led by the Department
of Commerce and NASA reported on the results of its discussions
with fifty people in aerospace, financial, and other companies
on the issues, opportunities and options for private sector
investment. NOAA discussed the issues raised in this report
individually with companies known to have given additional
thought to the investment questions since the June 1979
report and at two investment workshops convened in April,
1980. While the private sector does not speak with a single
voice, the issues discussed below were considered important
to many, if not all, of the companies.
1. Control Over Data and Standard Data Products
Fees for data and standard data products,
including revenues from foreign ground stations, represent
the primary source of income for the private operator, other
than some form of gcmernment data purchase guarantee.
Reproduction or resale of standard data products by a user
without additional payments could reduce the revenue of the
private system operator and make the system less viable
financially. Three areas are of major concern:
o Data or standard data products purchased by a
private organization or a government agency may
be reproduced for use in-house;
o Data or standard data products puchased by a user
may be reproduced or resold for use by other
users; and
o Data or standard data products purchased by
a Federal agency may have to be provided
at private request under the Freedom of Informa-
tion Act (FOIA) at the cost of reproduction.
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To address these concerns the Federal govern-
ment would probably have to enact legislation to enable the
system owner-operator to own the data and standard data
products and condition their dissemination on the pay-
ment of appropriate fees. The Protections of the United
States copyright laws would apply for a private owner and
Purchasers would not be able legally to reproduce or resell
the data or standard, data products without permission or
payment of royalties to the copyright owner. Reproduction
by foreign purchasers would be governed by international
copyright agreements. The system operator could require
all users to Sign a sales agreement at the time of purchase
prohibiting unauthorized resale or reproduction, and similar
protection could be incorporated in the agreements with the
operators of the foreign ground stations.
Under the FOIA, Federal agencies may be
required or allowed to produce or reproduce the data or
standard data products for external users at the cost of
reproduction. Legislation limiting this authority and
providing for the exemption of land remote sensing satellite
data and standard data-products from the "cost of reprodut-
tion" pricing provision of the FOIA is one way to resolve
this. concern.
Finally, the value of copyright protection
may be significantly diluted if minor modifications to the
format of the data or standard data products would free the
derived product from the reproduction prohibition. rf
additional study indicates that legislation is required to
preserve the value of the original copyright, it could be
sought.
2. Equal Access to Data and Consistent
Pricing Policies
Present U.S. policy requires nondiscrimina-
tory availability of land remote sensing satellite data and
consistent pricing policies, applicable to both foreign and
domestic users. The information extracted from certain data
can have a particularly high economic value when it is used,
for example, in commodities trading and in mineral exploration
activities, particularly if it is not generally available.
Some users would therefore be willing to pay a premium for
privileged access.
While the practices of public nondiscrimi-
natory availability of data and consistent prices may
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discourage some investors, they represent a carefully
considered U.S. policy and no recommendation for change is
made.
3. Cost Recovery through Data Sales
A primary concern for a potential private
operator is the large gap between present system revenues
and system costs. Opportunities for data ownership, Federal
financial assistance and sales of data to the Federal
government, in addition to implementation of a realistic
pricing program (see Chapter V) and a market expansion
program (see Chapter VIII) will be important elements
in establishing private sector confidence in the future
profitability of land remote sensing satellite activities.
4. Federal Regulation
Federal regulation of a private operator of
the land remote sensing satellite system will be necessary
to some extent because of treaty obligations and national
security interests, in addition to the national and foreign
policy considerations discussed below in Section D. Regulation
should be kept to the minimum required to implement these
obligations. Regulatory policy for the Fully Operational
System should be established well in advance of the private
operator's assumption of responsibility for the system, and
to the maximum extent possible remain constant for the
useful life of the system.
5. Competition with Data from Federal R&D Systems
The concern has been expressed that data
freely available from Federal R&D land remote sensing
satellite systems will compete with the data from the
private operational system, reducing private system revenues.
NASA probably will continue, however, to develop some
advanced experimental sensors and spacecraft systems for
land remote sensing because:
o National policy requires maintenance of
U.S. technological leadership, a function
assigned to NASA under the 1958 Space
Act, to be in a favorable competitive
position with respect to foreign systems;
and
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o Sigh costs and high risks are associated
with these developmental systems, and
experience in the satellite communications
arena indicates that the private sector may
not fund R&D activities to the extent
necessary to maintain national leadership.
Since NASA currently is required by its enabling statute to
ensure the widest practicable and appropriate dissemination
-
of information concerning tts activities and the results
thereof, one solution could be to establish procedures
under which the private operator would distribute NASA's
experimental land remote sensing satellite data to potential
users other than those directly engaged in programs in
cooperation with NASA. Fees compatible with those from the
Fully Operational System could be charged for the experimental
data. In addition, NASA could limit its R&D in land remote
? sensor technology to those areas where the most ,advanced
technological efforts are involved.
6. Federal Competition in Services
Federal agencies prepare information products,?
derived from standard data products provided by the system
operator to meet the needs of the agencies and their con-
stituents. Such activities present two pOtential problems
to the private sector:
o In-house preparation of information products
could hamper transfer of the resulting
technology to non-Federal users and
the value added service industry; and
o Distribution of information products by
Federal agencies could preclude development
of markets for similar private sector
? information extraction services, thus
reducing the consumer market available
to the value-added service industry.
Although transfer of technology to non-federal
users is essential if the full range of benefits to the
nation from the operational land remote sensing satellite
system is to be achieved and private sector investment is to
be encouraged, some agencies have missions that require them
to produce information products for constituent groups.
Land remote sensing satellite data are often only one of
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many inputs into these products. Thus, the in-house produc-
tion of derived information products for governmental
purposes should not be prohibited, but should not compete
with the private sector where at all possible.
Federal agencies already are required to use
private sector services whenever the private sector can
provide them rather than compete with it. OMB. Circular
A-76, "Policies for Acquiring Commercial or Industrial
Products and Services Needed by the Government", reaffirms
the Federal government's general policy of reliance on the
private sector for goods and services, while recognizing
that governmental functions must be performed by government
personnel. This Circular establishes the policy that the
Federal government should not be in competition with the
private sector where the capacity exists to meet Federal
needs. As private sector capabilities in the field of land
remote sensing satellite data analysis and information
extraction expand, Federal and non-Federal users can be
encouraged to locate and make use of these commercial
capabilities.
7. Federal Government's Role in Technique
Development and Training
Federal agencies conduct certain large,
high-cost demonstration projects, such as LACIE and AgRISTARS,
to meet their needs. However, these programs often are
conducted by government personnel using government facilities.
Consequently, they may not contribute directly to the
development of the value added services industry and to the
expansion of its capability to deliver these new services to
other potential users.
Major portions of the federally funded
training programs now are conducted at government centers
through workshops, "hands-on" training programs, and other
activities under the technology transfer programs. Little
use is now made of the training and demonstration capabilities
of the not-for-profit or value added services companies
in these Federal programs to train users in Federal,
state and local governments, industrial concerns and foreign
organizations.
The Federal policy expressed in OMB Circular
A-76 applies to demonstration and training programs and
provides that, if cheaper, they should be performed under
contract by the private sector. As discussed in Chapter
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V/I, A-76 analyses can be used to determine if private
sector provision of these services is cost effective. If
so, Federal agencies should contract with private firms to
provide demonstration and training programs on a reimbursable
basis, for a wide range of users.
8. Coordination wit p Fc;ei9n Satellite Operators
Present U.S. civil space policy requires that
the U.S. promote development of complementary nationally-
operated satellite systems so as to increase benefits for
all nations. Industry representatives share this view that
duplication in spacecraft and ground systems should be
avoided whenever possible. Potential private system operators
are concerned, however, that this policy may preclude the
development of U.S. satellite systems which could provide
high market value standard data products, such as stereoscopic
data similar to those produced by foreign systems.
Foreign land remote sensing satellite systems
have both competitive and cooperative aspects. The prospects.
for competition and cooperation with foreign land remote
sensing satellite operators are discussed in Chapter. vim
A related industry concern is that the U.S.
system would be in competition with foreign owned systems
that may be assisted financially by their governments,
putting the U.S. industry at a competitive di5sdvantage
unless the U.S. operation is similarly treated. Since
financial assistance in some form may be needed until a
reasonable return on investment can be realized by a private
operator, the impact of possible foreign government assistance
to foreign systems should be addressed in that context.
9. Long-Term Government Financial Commitments
The Federal government is currently the
major user of land remote sensing satellite data and standard
data products and is likely- to.. continue to be a major user,
at least during the 1980s. As discussed in Chapter V, the
extent to which the Federal government is willing and able
to provide financial assistance to the operator of the land
remote sensing satellite system may be a key factor in the
private sector's decision to invest. Of concern to industry
is the duration and binding nature of any Federal commitments.
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The private sector wants to avoid making substantial initial
capital investments in spacecraft and ground facilities only
to find that changed policies or economic conditions have
eliminated the anticipated revenues from Federal data
purchases or assistance.
C. Policies to Involve the Private Sector
During Federal Ownership of ihe Interim System
During NOAA's management of the operational
system, substantial efforts should be made to encourage
private sector investment through:
(1) Expanding opportunities for the value-added
service industry by:
o Encouraging large users of data products to
arrange for their own special processing
capability;
o Assisting customers in occasional need of
special processing to locate appropriate
capability in the private sector; and
o Providing only two types of special services,
for which extra fees will be charged:
(a) special tasking of the satellite to
provide data on areas not in the archives
and not normally observed in routine
operations, and
(b) accelerated preparation of standard
products when the need for data is
urgent.
(2) Use of the private sector to the fullest
extent possible to conduct market expansion activities
described in Chapter VII below.
(3) Contracting with private corporations to
operate all or part of the operational system on terms
that allow a fair rate of return. Such contracts might
include suplying retroactive data or operating all or a
part of the ground system under general NOAA supervision.
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D. Regulation of Private Sector Operation
When NOAA's responsibilities as the system
operator are transferred to another entity, the implemen-
tation of international obligations, adherence to national
policies and achievement of national goals will require
a continuing Federal regulation of land remota? sensing
satellite activities that extends beyond the Federal govern-
ment's concerns as a user of data and standard data products.1/
1. Federal Policies Applicable to the Civil
Land Remote Sensing Satellite System
The necessary Federal regulatory framework
must be established in any legislation authorizing private
sector ownership and operation of our civil operational land
remote sensing satellite activities. The following are the
major policy areas expected to require regulation:
a. Compliance with Treaties
The United State* is 4 party to
several treaties and agreements that apply to the space
activities of the civil operational land. remote sensing
satellite program. The principal treaties and agreements
are (1) the Treaty on Principles Governing the Activities of
States in the Exploration and Use of Outer Space, including
the Moon and'Other Celestial Bodies (..the Outer Space Treaty),
(2) the Convention an International Liability for Damage
Caused by Space Objects, (3) the Convention on Registration
of Objects Launched into Outer Space, and (4) treaties and
agreements reached in the International Telecommunications
Union.
The Outer Space Treaty stipulates
in Article VI that States bear international responsibility
for outer space activities whether carried on by governmental
agencies or non-governmental entities, and for assuring that
such activities are carried out in conformity with the
Treaty's principles in support of the use of outer space for
peaceful purposes and for the benefit of all peoples irrespec-
tive of the degree of their economic or scientific development.
1/ In May 1978, the President called for supervision
and regulation of any private sector entity's space
activities to ensure, inter alia, that advances in land
remote sensing from space will be permitted under
controls and when such needs are justified and assessed
in relation to civil benefits, national security and
foreign policy.
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The Liability Convention and the Registration Convention
implement the broad principles of the Outer Space Treaty
by requiring, respectively, (a) that each State which
launches a space object be absolutely liable to pay compensa-
tion for damage caused by its space object on the surface of
the earth or to aircraft in flight, and (b) that each
launching State register with the Secretary-General of the
United Nations information identifying the space objects,
launching State, registration number, date and location of
launch, basic orbital parameters and general function.
The International Telecommunications Union, a UN Organization,
controls the allocation of the radio frequency spectrum
to satellite services throughout the world.
b. National Space Policy Considerations
In addition, U.S. civil space
policies that reflect significant national interests should
be applied to the activities of nongovernmental entities in
enabling legislation or implementing regulations. These
policies require, among other things:
o The widest practicable dissemina-
tion of data and results from
civil space programs, except
where specific exceptions are
established by legislation,
Executive Order, or directive;
o The monitoring and, if necessary,
control of technological advances
and capabilities in accordance
with national policies;
o General support of nondiscriminatory
direct readout to foreign ground
stations under specific conditions;
o Pricing policies that are consistent with
respect to foreign and domestic users,
and
o Pursuit of complementarity with
foreign-operated satellite
systems so as to limit U.S.
program costs, but protect
against unwarranted technology
transfer.
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c. Provision of Adequate Data for
Governmental Use
National policy should establish that
a private owner of our civil operational land remote sensing
satellite system .be required to, meet the data requirelehts
of government users because Vf the importance of -this data
to the missions of Federal agencies and the responsibilities
of state and local governments, many of which derive from
Federal statutes.
d. Improper Use of Inside Information
When the system is transferred to
the private sector, private investors and corporations will
have control over the land remote sensing satellite system
and the initial data stream. This data, as discussed above,
can be particularly valuable t* anyone who has exclusive
rights or advance access to it. -Continued implementati0h of
existing policy for equal access to the data and standard
data products is recommended. In addition, appropriate
steps must be taken to ensure that the data is not improPerly
used for the financial advantage of a private owner, investor
or corporate board member. In addition to direct legislative
prohibitions of these abuses, prohibitions or restrictions
on stock ownership or board membership by those with potentially
conflicting obligations or interests may be necessary.
Preservation of Comzetition and
Pilcing Policies
Another important public policy,
expressed in the Federal antitrust laws, is the preservation
and promotion of a free competitive economy. Although
Federal governmental action may grant an exclusive license
or give a statutory monopoly to a private operator, the
operator's pricing policies, procurement, data production
and dissemination policies should not be allowed to restrain
competition beyond the scope of the government grant. For
instance, Federal regulation should insure that the private
operator's procurement of major facilities, such as satellites
or ground stations, is accomplished by competitive bidding,
and that small and minority businesses are given an opportunity
to compete. All users should have nondiscriminatory use of
and equitable access to the data and standard data products
generated by the System. The Federal government should
regulate the operator's pricing policies to prevent abuse
of its monopoly position. The fees charged by a private
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operator should provide a reasonable rate of return and be
structured to avoid discrimination or undue preference to
any class of users.
2. Selection of Lead Regulatory Agency
An agency must be identified,to take the
primary responsibility for the regulation of the private
operator. This designation should be timed so that appropriate
administrative arrangements can be established and any
necessary regulations can be adopted before the transfer of
system operation to the private operator.
As part of its on-going management
responsibilities, NOAA should assume primary responsibility
for the implementation of this Federal regulatory role, with
other agencies maintaining specific regulatory roles in
areas of their particular responsibility, such as the
foreign and antitrust aspects of the System.
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CHAPTER VII
?
MARKET EXPANSION
Land remote sensing data obtained from spacecraft have
been used to help meet user decisionmaking needs for only a
few years, often on a limited, trial basis. If the system
is to pay for itself and be transferred to the private
sector, strong efforts must be initiated to stimulate new
uses of the data products and to evaluate the domestic and
foreign markets that develop.
This chapter briefly states the prerequisite for a market
expansion and evaluation program, summarizes efforts to date
to develop uses for Landsat data and standard data products,
and suggests actions that could be taken to ensure an
agressive program of market growth and evaluation during the
1980s.
A. Prerequisite for a Market: ExpansiOn Program
As noted in Chapter II, continuity of land remote.
sensing data is a prerequisite to the increased use of land
remote sensing satellite data. Users will not rely on
satellite data until its continuity, with adequate reliability
and timeliness are assured. Only then. can users confidently
invest in the personnel, training and processing equipment
necessary to utilize the data and standard data products in
their operational programs. Without these assurances,
growth in the utilization of the data will be limited and
any new efforts at market expansion might be inappropriate
and unsuccessful.
B. Current Market Expansion Activities
Within the Federal government, the primary respon?
sibility for market expansion activities for Landsat data
and standard data products has been shared by NASA and the
EROS Data Center (EDC) of the Department of the Interior. ?
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NASA, in addition to providing Landsat data from
the R&D program, has been engaged in substantial technique
development and test programs made up of several components:
o The Application Systems Verification and Transfer
Program, consisting of over 20 large scale
feasibility projects directed at testing,
demonstrating, and transferring Landsat applica-
tions in representative operational settings,
with the direct participation of user organiza-
tions. These projects serve as detailed proto-
types for large, relatively homogeneous user
markets and provide a major stimulus for more
widespread use of the demonstrated application.
o The Regional Remote Sensing Applications Program,
through NASA's three 'regional centers, is
conducting a national scale technology demonstra-
tion and training effort to develop capabilities
within the states to apply Landsat data to their
every day resource management problems.
State-wide programs have been undertaken in
approximately 30 states, and more than 1500
state agency personnel have been trained.
o The University Applications Program, designed to
build university capabilities for the conduct of ?
research, education, and public service activities
supporting the transfer of Landsat technology,
primarily to state and local governments. In
addition to developing recognized centers of
expertise in Landsat applications, the University
Applications Program serves to stimulate the
development of basic specialized remote sensing
courses in the university curriculum and the
creation of the body of trained people that are
critical to any successful long-term technology
transfer program. Over 25 such university
programs have been established.
About 160 Federal and contractor support personnel are
engaged in these efforts. The NASA FY 1980 budget for these
programs totals $10 million.
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The EROS Data Center also has played an active
role in the development of user capability. It has:
o Conducted about 20 seminars per year, primarily
for Interior Personnel, which also serve
as the primary medium of training for students
Sponsored by other gOvernment agencies, state
governments, and foreign organizations;
o Sponsored approximately 30 cooperative projects,
primarily for DOI investigators, with six more
planned for FY 1980; and
o Encouraged curriculum development for post
graduate studies, primarily at the University of
Michigan, Harvard University, and the University
of California.
About 10 Federal contractor support personnel and $1.0
million were devoted to training and technology transfer
activities in FY 1980.
Other Federal &gencies have focused primarily
on the development of users within their own organizations.
To date, USDA, the U.S. Army Corps of Engineers, and the
Department of Commerce, through the Census Bureau and NORA,
have been most actiVe in this regard. The Agency for
International Development has conducted it grant program
designed to increase Landsat technolOgY awareness in develop-
ing countries and has supported the establishment of regional
training and user assistance centers in Africa and Asia.
The private sector has been involved in the
development and sale of devices for visual interpretation
and computer analysis of remote sensing data, the provision
of processing and analysis services that add value to the
data products, and contract support to NASA and the EROS
Data Center in data dissemination and the transfer of remote
sensing technology. In addition, some 178 colleges, universi-
ties, and nonprofit organizations are providing instruction
in remote sensing or photogrammetry. A number of professional
societies conduct symposia designed to inform their members
about scientific and technical developments and operational
applications of land remote sensing from space.
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Several international organizations have been
active in helping foreign users of Landsat data. The United
Nations and some of its specialized agencies have sponsored
training programs and are helping to develop Landsat data
analysis programs in developing countries. The Inter-American
Development Bank makes loans for development projects using
Landsat data and has funded training programs for Latin
American users. Similarly, the World Bank makes loans for
Landsat analysis activities in connection with development
projects in Africa and Asia. Finally, certain foreign
countries -- among them Canada, Japan, the Federal Republic
of Germany, France, and Italy -- utilize Landsat data and
related analyses in connection with their own foreign
assistance programs.
C. Some Suggestions for a Market Expansion Program
In order to expand the beneficial use of land
remote sensing satellite data and thereby enhance the market
for system products. twofactors should be considered:
tailoring the system to user needs, and helping users
benefit from the products; Ways to implement these objectives
are suggested below:
1. Tailoring the System
Continuing attention to user requirements
through market surveys and other studies is essential for
the system to be refined and for detection of new markets as
they emerge and develop. Particular study of the user
requirements of local governments, the private sector,
international organizations, and foreign nations is necessary,
since these market areas are so far the least well understood.
By its compilation of preliminary user
requirements, NOAA has already initiated a significant step
in marketing the system to user needs over the long term.
These preliminary user requirements will play a key role in
determining the characteristics of the Fully Operational
System. Other actions that could be taken in order to
validate these requirements are:
o Developing standard data products which
will be made available over for long
periods of time, e.g., data in the MSS
format;
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o Adding new data products designed to
satisfy most nearly the requirements of all
users; and
o Evaluating systematically the response of
users to the products of the Interim
Operational System in order to refine the
practices being followed and to shaper the
characteristics to be offered by Fully
Operational System.
2. Helping Users Benefit From the Products
The three main categories of assistance to
users are training, the development of new techniques and
applications, and the demonstration of existing and new
applications in the users' operations. For all three, user
participation and investment are important factors in
realizing the benefits of the new technology embodied in
satellite remote Sensing. This can be encouraged by NOAA's
undertaking joint ventures in working with users, wherever
that is possible.
a. Training. The Department of the Interior
has developed successful training equipment and course:
materials in support of departmental interest*., as have..
other major Federal government users. Major Federal users
can be encouragedto arrange* for specialized or on-the-job
training for their employees to enhance their successful
utilization of land remote sensing data. In addition, NOAA
cbuld arrange through the private sector for general training
on a reimbursable basis for Federal, state, and local
government personnel and for foreign students. Specialized
training programs can be arranged whenever sufficient demand
arises. NORA also could assist universities and private
sector organizations in developing course materials to be
used in training students from the private sector.
b. Applications Development. NASA.probably
will continue to develop and share with users technology and
.techniques for acquiring, processing, and interpreting
land remote sensing satellite data as part of its basic
responsibility for R&D in space-related technology. NASA
also could continue testing new techniques and potential new
applications in joint projects with users in all sectors.
As part of this program, NASA could undertake the development
of a broad array of information extraction procedures
aimed at specific applications.
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The NASA budget devoted to continuing
its program of remote sensing technology transfer and
applications testing is approximately $5.7 million for FY
1981.
c. Applications Demonstration. A series
of joint demonstration projects with users in all sectors,
including other Federal agencies and state and local govern-
ments, could enhance the market for land remote sensing
satellite data. As part of such a program NOAA could:
o Work with the major Federal user
agencies to help them expand their
development of new applications of
the data;
o Demonstrate the utility of land remote
sensing data in meeting Federal
requirements for information imposed
on state and local governments;
o Explore the uses of government extension
programs such as the USDA county agent
system, to reach potential users
throughout the country; and
o Assist the Agency for International
Development and other organizations in
demonstrations to foreign users.
In these joint demonstrations, private sector firms could be
used so that they can repeat the demonstrations with additional
potential users after each joint demonstration project is
successfully completed.
3. Other Actions
More general support to develop the field of
land remote sensing from space could be provided in the
following ways:
o Information dissemthation activities could be
conducted to develop public awareness of the
potential benefits of land remote sensing
satellite data;
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o University centers of excellence could be
supported and universities could be assisted in
developing research and instructional capabilities
in the use of land remote sensing satellite data
so as to expand the cadre of trained professionals;
o The Small Business Administration? and the
Economic Development Administration could be
involved in assisting new entrepreneurs in
entering the land remote sensing satellite
. field; and
o The International Development Cooperation
Agency, the International Trade Administration,
the Overseas Private Investment Corporation, and
the Export-Import Bank could assist in expanding
opportunities abroad for U.S. vendors of
land remote sensing equipment and services.
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CHAPTER VIII
INTERNATIONAL ASPECTS
The U.S. land remote sensing satellite program has
included significant international participation since its
inception. This chapter reviews the history and current
objectives of this participation and discusses relationships
with foreign data users and with operators of foreign land
remote sensing satellite systems.
A. History and Objectives
International participation in the U.S. experimental
land remote sensing program was stimulated by U.S. efforts
in the late 1960s and early 1970s to acquaint potentially
interested countries and international organizations with
NASA's plans for the development of land remote sensing
satellites and their prospective benefits. As a result,
investigators from some 50'countries took part in three NASA
research programs designed to assess the usefulness of land
remote sensing satellite data. In addition, agencies in
thirteen foreign countries made arrangements with NASA for
direct reception of data from the current experimental
Landsat satellites. Table VIII-1 lists the status and
depicts the coverage of the foreign receiving stations
currently operating as well as those being planned. These
foreign Landsat stations operate under agreements concluded
between NASA and a cooperating foreign government agency
which provide for: (a) foreign agency funding and operation
of the ground station, (b) public availability of all
Landsat data acquired by the station, (c) support for
NASA in the event of a Landsat onboard tape recorder failure,
and (d) the payment to NASA of an annual access fee (currently
set at $200,000 per station per year).
The U.S. should continue to ensure international
participation in the Interim and Fully Operational Systems
under arrangements that contribute to the objectives of:
o Fostering international receptivity to and
acceptance of U.S. space remote sensing
activities;
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1
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TABLE VIII-1
FOREIGN LANDSAT GROUND STATION COVERAGE
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LANDSAT GROUND STATION STATUS
Agreement
Data
Data
C.ountre
Signed
Reception
Processing
Argentina
1976
1980
1980
Australia
1979
1980
1980
Brazil
1973
1973
1974
Canada
Prince Albert
1972
1972
1972
Shoe Cove
1976
1977
1977
Chilef
1975
TBO
TBO
China
1980
TBO
180
India
1978
1979
1980
Iran.
1974
TBO
TBO
Italy (ESA)
1974
1975
1976
Japan
1979
1979
1979
Sweden (ESA)
1978
1978
1979
Thailand
1979
7130
TBO
Zaire?
1975
TBO
TBO
Other courrtries contemplating Landsat Stations:
Kenya, New Zeeland, Romsnia. South Africa, and Uador Volta
'Note: Chile and Zaire have thus far been unable to fund the iscebiishtliont of their proposed Landsat stations. The Landsat
station in Iran wee largely comoletscl and began receiving some rest data in late 1978. However, me station ceased operations
in early 1979 as a result of the political situation in Iran.
130 ? To Sc Determined
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o Developing a world-wide market for U.S. com-
mercial data products and associated hardware
and services;
o Enhancing the technical quality and scope and
reducing the cost of the U.S. land remote
sensing satellite program;
o Encouraging utilization of land remote sensing
satellite data and techniques in the national
and regional development programs of developing
nations; and
o Maintaining U.S. commercial and technological
leadership in the field of space remote sensing.
In pursuing these objectives the U.S. should
concentrate its efforts on the further development of an
international community of data users and on the establish-
ment of constructive relationships with those foreign
countries also planning to operate land remote sensing
satellite systems. ?T
B. Relationships with Foreign Users
Since the first experimental Landsat was launched
in 1972, foreign use of Landsat data has grown steadily.
This trend is evident in *the growing list of countries
establishing Landsat stations (see Table VIII-1) and in the
data sales statistics of the EROS Data Center, which currently
receives 36% of its sales revenues from users with foreign
addresses. A further indication of this trend and the long
term foreign market potential for land remote sensing
satellite data is the increasing use of remote sensing
techniques by national and international development
assistance organizations. The Agency for International
Development, for example, has worked closely with its
counterparts in Canada and France to help the African
countries establish three regional training and user assist-
ance centers which are making extensive use of Landsat data.
The World Bank, the Inter-American Development Bank and a
number of UN entities such as the Food and Agricultural
Organization and the UN Development Program are increasingly
using Landsat Data in support of national development
projects. These activities are likely to continue to
expand and, as they do, so too will the demand for land
remote sensing satellite data.
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1. Availabiliv of Data to Foreign Users
In recognition of the growing international
demamd for land remote sensing data, the U.S. should continue
to provide for the availability of data from the Interim and
Fully Operational Systems thrOugh4
o? Direct readout of data to foreign ground
stations. This will carry forward the
IZE4=1"anding U.S. practice of permitting
direct foreign reception of data from U.S.
civil Landsat satellites; and
o Public nondiscriminatory availability of