The Federation of the Electronics Industry is the UK's leading trade association for the information technology, telecommunications, radio, electronic components, defence, aerospace, naval electronics, and office technology industries. Together with the Society of British Aerospace Companies, the FEI is a joint sponsor of the UK Industry Space Committee and has contributed fully to the quite detailed response which that committee will have submitted. We, therefore, support fully that submission.

  Nevertheless, we wish to emphasise important aspects of National Space Strategy associated partly with our FEI interests in the ground sector, which address the delivery of advanced Information Technology services to the consumer. Such services delivered from satellites represent a rapidly growing global market far in excess of those associated with other sections of the UK space programme. They include delivery of a large variety of digital and broadband communications, broadcasting and positioning services on a global scale. Thus these services will offer the greatest potential for return on investment in the whole UK space programme. It is, therefore, important in the longer term interests of both the UK and the European economies that these sections of their space programmes are well supported. It is also particularly important that the Authorities assist with the funding of the much needed longer term and leading edge research. This will help us to maintain the very high standing which we and Europe enjoy in this sector of advanced technology.

Satellite Communications (Sections 43 through to 52)

  The UK Government and private sectors must, together, make every effort to capture the maximum share of the £100 billion market which is confidently predicted in the communications services sector. Wideband broadcasting, internet access, interactive facilities and multimedia applications, delivered from satellites to both fixed and mobile terminals, must be major objectives for funding by the National and the European authorities.

  We fully support the increased priority which the BNSC is giving to telecommunications in general and, in particular, to the European Space Agency research programmes in advanced telecommunications (ARTES) and the plans for co-ordination of all the EU research and development programmes in this area.

Satellite Positioning and Navigation Systems (Sectors 53 through to 57)

  This, again, is an area of increasing interest to all forms of transport, survey and emergency operations. The present world market of £10 billion is predicted to increase at least three or four times within the next 10 years.

  In these sections of the BNSC strategy and programme there is a particularly important EU project, Galileo, which aims to provide, under European civil public sector regulation, a highly accurate and reliable global positioning service, integrated with advanced communication facilities, within the decade. Europe has already invested some

80 million in the definition phase of this project, some

12 million of which has been contributed by the UK Government.

  It is also essential for the future commercial interests of both the UK and of Europe that every effort be made to ensure that the first definition phase of this project is successfully completed to the very tight schedule of approximately one year which has been set.

  Early planning and organisation of the support for the phase two implementation programme to follow must be anticipated and the necessary arrangements made to ensure an immediate and effective transition. Industry is already considering the formation of a special company to support this project and a full commitment must be made by all concerned, both government and the private sectors, to this farsighted European project which will represent a very large return on the investment in the longer term.

The ESA Organisation

  The ESA operation has recently been made much more effective, largely as a result of the efforts of the UK. Its recently published programme and action plans incorporating essential R&D must continue to be supported fully.

  Also a careful balance must be made between the funding of National programmes and the contributions to those of the EU and ESA. There is a strong case for more overall financial and enabling support in the Communication and Positioning areas. In any case, the balance between support for our national programmes of leading edge R&D and of ESA requires very careful judgement if maximum advantage is to be given to our UK industry in the very large ground and space sector markets which are confidently predicted over this next decade.

Funding of EU and ESA Contracts

  There is a need for more equality in the way in which EU and ESA projects contracted to industry are funded. The UK's insistence on a 50/50 arrangement with the private sector often puts our companies at a serious disadvantage to those in mainland Europe whose government contributions are invariably at a much more generous level.

  In conclusion, the FEI would welcome an invitation to give oral evidence to the Trade and Industry Committee in support of the BNSC UK Space Strategy Document and Programme and to emphasise the advanced User Services which will be made available from satellite bearer systems in the future.

22 February 2000