Space reboot: Azercosmos, SpaceX establish orbital business Review by Caliber.Az

Azerbaijan has been successfully developing its national space industry with a focus on the export of services for over a decade: in the past, the lion's share of space operator Azerkosmos' revenues were generated in foreign markets. Today, the space agency is doing its best to develop international cooperation, introduce new technologies and create a regional space hub in the country.

Another step in this direction was the recently signed memorandum of cooperation between Azerkosmos and the American SpaceX Corporation, providing for the joint launch of new Azerbaijani satellites, as well as access to broadband satellite Internet services through the Starlink orbital system.

The Azerbaijan Space Agency (Azerkosmos), which operates under Digital Development and Transport Ministry, is one of the most export-oriented government organisations: over 80 per cent of its income comes from providing services on foreign markets.

The main importers of Azerkosmos' products are the UK, France, Luxembourg, the United Arab Emirates (UAE) and Germany, but the agency has recently entered the markets of the Commonwealth of Independent States (CIS), Eastern Europe, China, Pakistan, Malaysia, the Middle East and Africa - around 40 countries in total.

Currently, it has a global audience of around 150 TV and radio channels, service providers and other entities using services of Azerbaijan's Azerspace-1 and Azerspace-2 satellites, with the total user audience reaching 20 million people. Now, when it comes to providing communications and internet to Azerbaijan's maritime vessels of various purposes, drilling platforms, remote fields and fields the JSC space communications, these services have no alternative at all. All in all, Azerbaijan has undoubtedly been a leader in terms of the pace and scope of development of the space industry in the post-Soviet region over the past decade.

The space segment of the domestic economy has been developing quite dynamically, in particular, during the pandemic crisis of 2020, having confidently overcome the difficult period of the previous four years. The fact is that at the peak of the pandemic and quarantine restrictions around the world, the need for the Internet and other telecommunications services has increased many times over, and the Azerbaijani space operator has become one of the beneficiaries of this demand.

Unfortunately, last year was not so successful - the operator's income amounted to $26.600,000, which is 41.3 per cent less than the previous year. This decline was somewhat corrected in the first quarter of this year, however, according to the Center for Analysis of Economic Reforms and Communications (CAERC), the decline in income is still 12.9 per cent. It should be noted that these temporary difficulties are of an objective nature and are associated with a slight decrease in demand for space services in a number of countries of the world.

At the same time, the operation of the low-orbit optical satellite Azersky, launched by the French company Airbus Defense and Space and transferred to Azerkosmos in December 2014, has become quite successful from a commercial point of view.

The capabilities of the Azersky satellite played a very important role in ensuring the defence and security of the country, especially during the 44-day war in Karabakh. The optical satellite was actively used in Azerbaijan in such areas as agriculture and land reclamation, environmental protection and emergency situations, cartography and cadastral works, extractive industry, transport sector, road construction and power transmission lines, tourism, and urban planning.

Space images worth $88,235,293 were handed over to various government agencies. The low-earth orbiter played a somewhat smaller role in the provision of services on the international market: revenues from its commercial operation for more than eight years amounted to $61,800,000.

Unfortunately, due to technical problems in April 2023, the Azersky satellite stopped its mission a year earlier than planned: despite repeated attempts by the manufacturer and operators of the ground-based Satellite Control Center in Azerbaijan, it was not possible to restore communication with the low-orbit vehicle.

Nevertheless, even taking into account the recent force majeure circumstances, the economic benefit from the operation of Azersky exceeded the investment by 1.5 times, Azerkosmos notes. In addition, the optical satellite was insured for $26,470,588, and today procedures have begun to receive insurance compensation.

The Space Agency intends to compensate for this loss and recently began to create a new low-orbit satellite with higher resolution and optical characteristics. According to the ministry, negotiations are underway with leading international specialised companies to launch new Azerbaijani orbital vehicles into orbit.

The memorandum of cooperation between Azerkosmos and US SpaceX (Space Exploration Technologies Corporation) signed on May 9 in this direction, which provides for the provision of Starlink broadband satellite Internet services in Azerbaijan, became the most important step in this direction.

“Azerbaijan Space Agency provides us with support on many levels, and the signing of an agreement between us means that now the Starlink network is available in your region. The main mission of Starlink is to accelerate the coverage of the entire territory of Azerbaijan with Internet services and thereby provide residents of the country living in the most remote regions with access to high-speed Internet,” SpaceX President and Chief Operating Officer Gwynn Shotwell said, commenting on the signed document.

With the support of the American partner, it is planned to launch new Azerbaijani satellites into orbit using Falcon rockets. Recall that since 2018, SpaceX has begun the withdrawal of small-sized satellites (no more than 260 kg) with an expected service life of about seven years, and currently this orbital group has reached 4,000 units.

“In the coming years, Azerbaijan will start implementing new satellite projects. During a meeting in Baku with the head of SpaceX Gwynne Shotwell, we discussed the possibility of launching new Azerbaijani satellites into orbit with Falcon rockets, as well as the participation of SpaceX in the International Astronautical Congress in Baku in October this year,” Head of the Space Department S. Asadov said at the ceremony of signing the memorandum.

It is noteworthy that projects with SpaceX are far from the only direction of international cooperation of the Azerbaijan Space Agency: the agency intends to develop relatively new service markets, in the near future it is planned to form an optical network at a ground station and develop laser communications.

Work will also continue on placing antennas of the European Geostationary Navigation Service (EGNOS) in the Main Ground Control Center for Satellites in the village of Gyuzdek, which will contribute to the development of domestic aviation, transport communications, agriculture, cartography and navigation.

Meanwhile, in September last year, Azerkosmos and the American company Voyager Space signed a memorandum of cooperation, which will allow partners to exchange experience and knowledge in order to develop the local space ecosystem, including the formation of space infrastructure, scientific centres, the implementation of research programs, the introduction of technologies and innovations, which will enhance the potential of the space regional hub being formed in Azerbaijan.

In the same vein, the cooperation of the national operator with the space agencies of Türkiye and other member countries of the Organization of Turkic States (OTS) is expected. In particular, it is planned to strengthen cooperation with Türkiye on observing the Earth's surface.

This trend also dominates in relation to other OTS member countries: memorandums of cooperation between Azerkosmos and the space agencies of Kazakhstan and Uzbekistan have been signed, partnership with Kyrgyzstan is being strengthened in preparation and advanced training of specialized personnel, implementing projects in the field of space technologies, exchanging experience in implementing and regulating space monitoring and operation of GIS-centers.