III. Earth Resources Satellite Programs Our comments with respect to earth resources satellite programs proceed from the proposition that the potential contribution to our society, as well as to the world, of earth resources satellite programs is great. This potential contribution is well-documented and it will not be necessary, therefore, to catalog in this response the benefits to be derived from earth resources satellite technology. Rather, we will concentrate on a presentation of our views as to those areas which we believe require emphasis in earth resources satellite programs in order to realize in the most expeditious, effective and economical manner the promise that such technology holds. In June 1977, the House Subcommittee on Space Science and Applications, as well as the Senate Subcommittee on Science, Technology and Space, held extensive hearings relating to the establishment of an Earth Resources Information System. Dr. John L. McLucas, President of COMSAT General Corporation, a wholly owned subsidiary of the Communications Satellite Corporation, participated in both the House and Senate hearings on this subject. Copies of Dr. McLucas's prepared statements for those hearings are attached for your ease of reference. The statements submitted by Dr. McLucas continue to reflect our views as to the most appropriate arrangements for the development and implementation of an operational Earth Resources Information System. Based on the comments of most witnesses appearing at both the House and Senate hearings on earth resources satellites, there is general agreement that earth resources satellite technology is ready to be implemented on an operational basis. This does not mean, however, that there is no further need for research and development programs in the area of earth resources satellites. Much remains to be learned and further R&D programs will increase the potential benefits available from earth resources satellite technology. While the technology is available as a result of the Landsat program and other remote sensing programs to implement a successful operational system, other elements necessary to establish a successful operational system are lacking. First, a broad-based user community has not been sufficiently developed to give the expectation that an operational earth resources system would be self-supporting. Second, there is no clear conception as to the roles that either the government or the private sector will play in establishing an operational system. The lack of a developed market for earth resources data products, as well as uncertainty as to the extent of the operational role which the private sector will be permitted The Honorable Olin E. Teague -7 " January 24, 1978 to play in the establishment of earth resources systems and the provision of data services and products, are clearly inhibiting factors. In Dr. McLucas's statement before the Senate Subcommittee on Science, Technology and Space, we stated our view that the "major inhibiting factor in the establishment of an operational system is the undeveloped and unaggregated market for earth resources data products and services. We further expressed the view that any approach "which affords only a limited private sector role in support of a governmentally owned and operated system, fails to fully enlist the considerable resources, experience and capabilities of the private sector in exactly those areas which are most in need of development, that is, the marketing of services to a wide and varied user community and the formulation of new and innovative services meeting user requirements." Finally, we stated that "based on our experience in the area of communications satellites, it would appear there are means by which to provide for a more complementary cooperation between the public and private sectors which will result in a more meaningful role for the private sector and increased services to the user community.' We continue to believe that an increased private sector role is required in decisions relating to the establishment of an operational earth resources satellite system and in the development of arrangements for provision of data products and services to the public. We believe the private sector should be more than a supplier of hardware and equipment in support of a governmentally owned and operated earth resources system. As set forth in Dr. McLucas's statements, it is our view that there are means by which to enlist the resources, experience and capabilities of the private sector in a significant manner in the establishment and operation of an earth resources satellite system. One such means which we believe should be given serious attention is the adoption of a policy directing that government requirements for the earth resources data products and services be satisfied from privately owned and operated sources, where available. Adoption of such a policy would result in a customer base which could induce the private sector to undertake the risk of obtaining additional revenues required to earn a reasonable return on investment through the marketing of services and data products to non-governmental and foreign customers. Because we believe the successful establishment of an operational earth resources system by the United States will be enhanced considerably by increased private sector involvement, one aspect of future earth resources space The Honorable Olin E. Teague -8 January 24, 1978 programs needing increased emphasis is the exploration of means by which to involve the private sector in an operational role at an early date. Based on the record to date, we believe little serious attention has been given to the potential benefits of involvement of the private sector as the operator of earth resources satellite systems. Rather, there appears to be an unfounded view that no interest in such a role exists in the private sector, which view should have been dispelled by the statements of Dr. McLucas on behalf of COMSAT General. In summary, therefore, we suggest that future earth resources space programs include an added emphasis on the means by which to best involve the private sector in an operational role at an early date. STATEMENT OF DR. JOHN L. MCLUCAS Mr. Chairman and members of the Subcommittee, for several years COMSAT General has followed with considerable interest the experimental earth resources satellite programs conducted by the U. S. Government. We believe those programs have demonstrated that earth resources technology offers a great promise of substantial benefits to the United States and all mankind. Since the United States has been instrumental in the development and demonstration of the technology, we believe it important that the United States exercise a leadership role in the formation of an operational earth resources system. Without such exercise of leadership, the United States may find it difficult to satisfy its own national objectives in the utilization of the earth resources technology it has developed. We therefore appreciate this Committee's interest and concern with respect to the establishment of an operational Earth Resources and Environmental Information System and its efforts to develop legislation pertaining to such a system. In considering the establishment of an opera tional earth resources satellite system, our perspective is perhaps different from most other witnesses appearing before this Committee in that, as a representative of the private sector, we are already engaged in the provision of satellite services on an operational basis. Therefore, in addition to our concern with the maintenance of a U. s. leadership role in the earth resources satellite area, a principal concern of ours has been how to best establish an operational system which will result in the provision of earth resources information services to the user community, both in the United States and internationally, in the most effective, efficient and economical manner. To summarize our views, Mr. Chairman, we believe earth resources satellite technology is ready to be implemented on an operational basis by the private sector. The major inhibiting factor in the establishment of an operational system is the undeveloped and unaggregated market for earth resources data products and services. In our view, the undeveloped state of the market results from the following factors: (1) the lack of confidence in the user community that data will continue to be available in the future; (2) the incorporation of sensor technology in present and |