Evaluating and purchasing a communications satellite system - Operational Costs
From INVESaTWIKI
Operational costs
Bidders should be evaluated on the operational support
they provide over the typical 15-year life of a
spacecraft. What is the extent of the manufacturer’s
post-launch customer services? Are they available 24/7
to assist with anomaly analysis and resolution? Does
the manufacturer charge extra for this support or is it
included in the price of the spacecraft?
A study by the Futron Corp., “GEO Commercial Satellite
Bus Operations: A Comparative Analysis, 2003”, found
that ongoing operations and program management
costs such as staff, hardware and software vary greatly
depending on the satellite. This ‘consumer report’ on
the commercial satellite industry found that the major
components of total operations costs over the life of a
satellite are those for staff and the hardware and
software for spacecraft monitoring and maneuvering.
According to the Futron study, “Operators report that
their operations staff spend 20 to 40 percent of their
time on anomaly-related activities, with the rest spent
on routine maneuver planning, development of new
procedures and preparations for new satellites.” This
finding suggests that by increasing the onboard
autonomy of their satellites, buyers can more efficiently
manage anomalies and reduce annual operating costs
through lower staffing needs over the life of the
satellite.
The cost of operating a satellite is the aggregate of
many factors, such as the complexity of components,
ease of spacecraft pointing and the effectiveness of onboard
autonomy. The complexity of hardware and the
sophistication of the software are intrinsically related.
Achieving a balance between these elements is
essential to providing an “operator friendly” satellite.
The Futron Study , illustrates this relationship among
current spacecraft models. The more difficult a satellite
is to keep stable and maneuver, the more likely it is to
cause operator errors. The analyses and resolution of
these errors, as well as hardware anomalies, drive up
staffing demands and consequently, operating costs.
The age of the satellite is another key consideration
impacting costs. While 21st Century technology can
achieve satellite lifetimes longer than 15 years, it should
be noted that longer lifetime could increase operational
costs. First, older satellites are less effective
moneymakers owing to limited bandwidth and
transponders compared to newer models. Secondly, the
operating procedures will be different for the newer,
high quality software-controlled satellites now
available, thereby increasing an operator’s burden.
Furthermore, customer support by the manufacturer
almost two decades after satellite delivery, but certainly
beyond contract life, is not a reasonable expectation. [1]
References
[1] Satmagazine.com - January 2004
Satellite System Acquisition: A Fresh Approach to Evaluating and Purchasing a Communications Satellite System





