-22 accorded me to express views as to S. 657 and the role of the private sector in the establishment and operation of an earth resources system. STATEMENT OF DR. JOHN L. McLUCAS Mr. Chairman and members of the Subcommittee, we appreciate this opportunity to comment on the important questions posed by the Subcommittee relating to the establishment of an Earth Resources Information System (ERIS). We believe an exploration of these issues will contribute greatly to a better understanding of the benefits of the technology, the state of the art of remote sensing technology, the physical characteristics of an ERIS, whether an operational ERIS should be implemented now and the institutional, organizational and economic arrangements pursuant to which an ERIS might be established. In considering the questions posed by the Committee, our perspective has been to focus on the potential contributions to an ERIS which can be made by the private sector, and particularly on the efficient, effective and economical provision of data products and services which meet the requirements of the user community. It is from this standpoint that we have examined the reports prepared by Mr. Matthews, which provide a useful basis upon which to examine the issues under consideration. As we understand it, the basic concepts set forth in the reports prepared for the Committee contemplate that ERIS should consist of a centralized space segment owned and operated by the Government, together with a centralized ground segment, also owned and operated by the Government, which would provide basic product packages to users. Valueadded services would be provided by a decentralized service industry. In essence, the private sector in the United States would be limited to the provision of value-added services and would be in partial competition with the Government. In other words, an extension of the present arrangements for the experimental Landsat program is proposed for the operational ERIS. We To summarize our views on the questions posed by the Subcommittee, we believe earth resources satellite technology is ready to be implemented on an operational basis. The major inhibiting factor in the establishment of an operational system is the undeveloped and unaggregated market for earth resources data products and services. believe the approach reflected in the reports prepared for the Committee, which contemplate an extension of the arrangements of the experimental Landsat programs into an operational mode, 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, 24-215 O - 78 - 25 the marketing of services to a wide and varied user community and the formulation of new and innovative services meeting user requirements. Based on our experience in the area of communications satellites, it would appear that 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. Such an approach would be more consistent with traditional U. S. policy to transfer to the private sector responsibility for operational implementation of services which have been the subject of Government experimental programs. Finally, we believe transfer of operational responsibility to the private sector can be accomplished consistent with the protection of legitimate Government and international interests. I will expand briefly on these points in my following remarks. With respect to the state of the technology, there is technology available today, including that developed in the NASA experimental Landsat programs, which is ready for implementation in an operational ERIS. While we do not consider the technology an inhibiting factor in the transition to an operational system, we believe that there is an important R&D function which should continue to be performed in order to ensure that future earth resources satellite systems provide as wide a range of services as possible and that U. S. technological leadership is maintained. With respect to the market for earth resources data products and services, we believe there is a substantial potential global market. However, that market is presently undeveloped. One of the most important factors inhibiting development of the market is the lack of assurance that data will be available in the future and in a form which satisfies user requirements. Given the present state of the market, we believe it is of critical importance to involve the private sector in an operational ERIS in a manner which extends beyond the mere provision to the Government of equipment and services to be used by the Government in the establishment and operation of the system. The private sector has extensive experience and capabilities in the assessment of user requirements, the tailoring of services to meet varied user requirements, the marketing of services and the development of new services. The full application of this experience and capability is important with respect to the development and operation of both the space segment and the data handling segment. private sector investment and involvement in an operational system will provide a much greater incentive to ensure that user requirements are met and that the market for services is fully developed. Further, |