Azerbaijan, Kazakhstan expanding space cooperation
Review by Caliber.Az

ANALYTICS  13 May 2022 - 13:02

Azerbaijan has been successfully developing its national space industry for the ninth year in a row by launching two Azerspace telecommunication satellites and Azersky low-orbit satellite into orbit. Over five-sixths of all revenues of the Space Agency of Azerbaijan, Azercosmos are generated on foreign markets, and today, the space agency is also doing its best to expand international cooperation within the integration with space agencies and specialized organizations of the Turkic countries. Another step in this sphere was the recent cooperation agreement signed between Azercosmos and the Kazakhstan Gharysh Sapary company.

The space industry sphere of the domestic economy was developing dynamically during the COVID-19 pandemic peak in 2020, having overcome the difficult period four years ago. Azercosmos gained $45.3 million from the commercial operation of satellites in 2021, which slightly exceeds the income of the previous year.

Unfortunately, the first quarter of 2022 was not so successful for Azercosmos, as the space agency’s revenues have decreased by 58.5 percent, amounted to about $6.2 million. However, the financial data of early 2022 do not always determine the final annual figures, and, probably, the space agency will make up for lost opportunities by expanding the subscriber base and increasing the number of services.

Of course, the key moment here is the favourable external situation. Thus, the demand for broadband internet and telecommunications services increased by many times worldwide during the above-mentioned peak of the pandemic crisis in 2020 and fixed cable networks often failed due to the load. These processes have stimulated the global demand for space communications services.

Despite the lower cost of transmitting internet traffic over terrestrial optical lines, the expansion of such networks takes a long time, while the excess demand caused by the COVID-19 pandemic had to be met very quickly. The satellite communications and VSAT technologies enabled to quickly provide numerous people, in remote regions, mountainous or forest areas, outside cities, with internet in which it is unprofitable to lay optical communication lines.

As for providing various vessels, drilling platforms, remote fields with internet, space communication services have no alternative at all. In particular, the revenues of Azercosmos from the commercial operation of satellites greatly increased in 2020 and the space agency has overcome the decline which was observed in previous years.

A number of Western and Asian companies refuse from cooperating with the Russian Federation in the production and launch of satellites, the implementation of other space programs and the rent of satellite switches amid the war in Ukraine and anti-Russian sanctions. Accordingly, plenty of opportunities arise in this market, and over time, Russia’s commercial positions in the field of space may be squeezed out by other participants. Moreover, new positions are available not only for such high-level players as Turkey, Iran, India, Pakistan, but even for Kazakhstan, Azerbaijan, etc.

In the future, the global market for orbital services will be less static as before and Azerbaijan can expand its niche under favourable circumstances. This is a very important circumstance, as the activity of Azercosmos is most export-oriented – 86 percent of the space agency’s income is generated as a result of rendering services in the foreign market. The main countries importing the Azerbaijani space agency’s services today are the UK, France, Luxembourg, the United Arab Emirates and Pakistan. At the same time, the space agency is very actively developing the markets of the CIS countries, Eastern Europe, China, the Middle East, Africa - a total of 31 countries. Presently, over 150 TV and radio channels are broadcast via Azerbaijani satellites for 20 million people.

Taking into account the above-mentioned facts, it is obvious that the increase in the space agency's profitability today entirely depends on efforts aimed at expanding international business ties and developing partner cooperation with neighbouring countries, participants in the field of space. Actually, for these purposes, there has been a steady trend towards cooperation between the Azercosmos and the specialized structures of the Turkic countries since 2021.

Thus, a working meeting of space agencies and organizations of the Turkic-speaking countries was organized in Azerbaijan’s Baku city in late 2021 at the initiative of Azercosmos. The priority spheres for joint activity for the development of projects in the field of space were determined during the meeting within “Turkic World Vision 2040” document.

The basis for such cooperation is the implementation of experience exchange programs with Turkish space agencies, the process of improving knowledge and skills in the field of space science, education and industry. Among other important goals for the Turkic-speaking countries are cooperation in commercial projects, while in the future, participation in the joint production of satellite platforms.

“These are quite feasible goals. By combining financial and technical potential, the Turkic-speaking countries can create a powerful space alliance,” Chairman of the Board and President of the Turkish Space Agency Serdar Yildirim said.

The Turkic-speaking countries, namely, Azerbaijan, Turkey, Kazakhstan, Kyrgyzstan, Uzbekistan and two observers - Hungary and Turkmenistan, are expected to discuss the cooperation issues within the space cluster during the 74th International Astronautical Congress, to be held in Azerbaijan in 2023. However, some progress is already being observed towards the future convergence of national space agencies in the Central Asian countries and these processes were emphasized during the Space Technology Conference (STC 2022) held in Tashkent, Uzbekistan on May 10-12, 2022.

During the forum, the Uzbek and Kazakh governments approved an agreement on cooperation in the field of exploration and use of outer space for peaceful purposes. The cooperation envisages mutual technical assistance in space, the development of partnership in the international technology market through the use of ground facilities, as well as spacecraft launching and controlling systems.

Today, Kazakhstan is the second Turkic-speaking country after Turkey with a developed space infrastructure and industry. One of the world's biggest Baikonur Cosmodrome, the enterprises producing and repairing special equipment and systems for launching rockets are located in Kazakhstan. In turn, Kazakhstan launched six spacecraft into orbit, namely, two KazSat communication and broadcasting satellites, two more KazEOSat high resolution Earth Observation Satellites and two KazSTSat science and technology satellites.

Such a solid potential makes Kazakhstan a good partner for the joint implementation of space programs, and Azerbaijan took advantage of it. An agreement on the implementation of joint projects in the field of space and the mutual use of satellite resources was signed between Azercosmos and the Kazakhstan Gharysh Sapary national company during STC 2022.

For example, cooperation between Azerbaijan and Kazakhstan in the field of Earth remote sensing is very promising. During the STC 2022 conference, Chairman of the Board of Azercosmos Samaddin Asadov spoke about the capabilities of Azerbaijan's telecommunication satellites, as well as the projects which are implemented through the Azersky satellite in agriculture, ecology, geological research, tourism and a number of other spheres. In particular, valuable information on water resources, agricultural lands, their condition and erosion processes, timely warning about climate change and land degradation is obtained through the domestic low-orbit satellite.

The detailed information on the monitoring analysis which is carried out through satellite resources was given in accordance with the infrastructure and relief of the territories of Azerbaijan’s Karabakh region [liberated from Armenian occupation]. It is possible to remotely monitor the Earth surface through Azersky. It has the necessary resolution for high-quality images of a 6-million-square-meter-area per day. 

The close cooperation with Turkey, Kazakhstan and other regional countries will expand the market demand for space services in the future, contributing to the further expansion of the Azerbaijani orbital satellite group. In particular, such demand is predicted primarily for the services of Earth observation satellites, and over time, the issue of launching new small low-orbit satellites into orbit may be put on the agenda.

Caliber.Az