Abstract: The commercial space industry is growing rapidly. In 1997, the number of commercial space payloads exceeded the number of government payloads for the first time in history. Although the figures vary, space analysts and experts project that the remote sensing imagery segment of the commercial space market will continue to grow well into the next century. This market trend has serious implications for the National Reconnaissance Office (NRO) - the government agency responsible for developing, launching, and operating U.S. imagery and signals intelligence satellites. This market trend, the end of the Cold War, and the NRO's recent declassification have forced the NRO to reassess its role in the American intelligence community. These events have also presented the NRO with several new options for completing its mission, which is to provide the U. S. intelligence community with high-quality imagery at a reasonable cost. The competitive environment of the commercial remote sensing market has several unique characteristics. The barriers to entry are high because satellite systems are capital intensive. The market is also highly regulated. In the U.S., for example, remote sensing firms must obtain a license from the Department of Commerce, which regulates the imagery quality and the customers to whom the product can be sold. Given foreign and domestic competition and the market's characteristics, the NRO's competitive advantage lies in differentiating its product from all others. The NRO should focus its resources on imagery that is custom-tailored for its intelligence customers (and purposefully lacking in practical application for other users).
| Limitations: |
 APPROVED FOR PUBLIC RELEASE |
| Pages: |
75 |
| Report Date: |
26 JUL 1999 |
| Report Number: |
A016663 |
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