Abstract The economics and financing of satellite communications is a very large and complex topic. It ranges from normal business planning, analysis, and investment financing, to issues of government policy, dual-use technologies, and national security and defense. Commercial satellite systems represent a special case of economic analysis since such systems are heavily dependent on a government market that is focused on political considerations of budgeting and regulation. Today, satellite telecommunications systems are critical to almost all nations of the world, and they are especially important in approximately 60 nations that have domestic launch and/or satellite operations capabilities. This chapter will specifically focus on four topics: (1) a summary of the economic characteristics of the industry and a review of major trends in the industry, (2) a summary of the elements of a business plan for satellite telecommunications, (3) an analysis of issues in the manufacturing productivity for satellites and an analysis of commercial satellite manufacturing compared to government satellites, and (4) a brief discussion of future cost considerations including the increasing risk of space sustainability, insurance, and rules concerning disposal of satellites after their useful lifetime.


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