The booming U.S. commercial space economy is not just a technological revolution, it is a critical frontier for American competitiveness. To ensure the United States remains the global leader in this field, modernizing outdated regulatory processes is paramount. The Satellite And Telecommunications Streamlining Act (SAT Act) and the Federal Communications Commission’s (FCC) recent Space Modernization for the 21st Century Notice of Proposed Rulemaking (NPRM) are a great effort to clear regulatory roadblocks, foster innovation, and secure a competitive advantage for U.S. space companies.
The SAT Act seeks to amend the Communications Act of 1934 with the core purpose of modernizing the FCC’s satellite licensing rules. The legislation directly addresses the massive delays and unpredictable outcomes facing innovative companies seeking to deploy new satellite technologies.
Currently, companies often wait years for approval. Many startups and small businesses lack the capital to survive multi-year delays in approval, which limits new entrants and innovation into the commercial space market. Additionally, many companies are moving to iterative development cycles for satellite technology thanks to access to cheaper, more frequent launch opportunities. The current review process was not designed for this rapid pace of innovation, meanwhile, new enterprises from China and other global competitors threaten to topple U.S. leadership in commercial space as they continue to grow without such constraints
To help reduce this bureaucratic bottleneck, the SAT Act would make the FCC review process more efficient by:
- Requiring the FCC to create rules to streamline procedures for granting initial licenses, renewals, and modifications for both geostationary satellite orbits (GSOs) and non-geostationary satellite orbits (NGSOs); and,
- Establishing a 1-year shot clock for the FCC to grant or deny license applications for GSOs, NGSOs, and earth station applications; and,
- Establishing a 180-day shot clock for the FCC to grant or deny a renewal of GSO and NGSO licenses, grants of market access, or earth stations; and,
- Allowing the FCC to authorize emergency licenses for 180 days if needed for national security or defense purposes; and,
- Establishing a 30-day shot clock for the FCC to put an application out for public notice or notify the applicant if their application is incomplete; and,
- Establishing a 30–day shot clock for the FCC to grant or deny an application for a technically similar replacement for part or all of a space station or earth station; and,
- Establishing a 90-day shot clock for the FCC to grant or deny an application for a minor modification to a station that increases transmission capacity or improves spectral efficiency, but makes no other substantial changes; and,
- Limiting extensions by the FCC for NGSO application review periods to no more than two 90-day extensions, except for extraordinary circumstances such as danger to life, property, or national security.
In a complementary action, the FCC released the Space Modernization for the 21st Century NPRM, proposing a comprehensive restructuring and reform of its satellite and earth station licensing rules (Part 25) into a new framework, Part 100. Ultimately, the NPRM centers on designing a new “licensing assembly line” intended to dramatically accelerate processing while increasing predictability and flexibility for applicants.
Both the SAT Streamlining Act and the FCC’s NPRM are explicitly designed as a strategy to boost U.S. economic competitiveness. By drastically cutting down approval times for routine and non-controversial projects, the combined reforms send a powerful signal to the global financial market.
Predictable timelines and reduced regulatory friction lower the financial risk associated with launching and operating a space business in the United States, thereby attracting foreign and domestic capital to American companies. Additionally, the modernization efforts ensure the U.S. is the most attractive place to license and operate a space-based business, maintaining America’s technological lead over strategic adversaries.
While the NPRM sets the long-term vision, the rule-making process for implementing its proposals will require time. Congress, however, has the power to move the SAT Streamlining Act forward now and help American companies secure their lead as a global space leader.
