Telecom - ARTES 3-4

ESA UNCLASSIFIED – For Official Use
ARTES Applications
An Overview of
Commercial Opportunities
BELSPO, Space Applications WS
June 19th 2014, Brussels
A. Ginati (Head of TIA-A Department)
F. Feliciani (Head of TIA-APC Section)
ESA-TIAA-HO-2014-0260

Commercial products, services & applications
drive the sustainability of our space industry
SatComs = 50% of the number of satellites,
67% of the value of satellites (owing to high complexity)
Source: SIA State of the Satellite Industry Report October 2013

The Three Value Chains in
Commercial Satellite Applications
Global Space Market Revenue in US$Bn
1. Sat communications are dominant with >75% of the downstream services revenue
2. Navigation is emerging 21%
3. EO is currently 2%
Source: Euroconsult & GSA, 2010
+ HSF

Service revenues are dominated by
applications based on SatComs
Source: SIA State of the Satellite Industry Report October 2013

Data source: Euroconsult
Data source: Euroconsult
2009-2019: Revenues shifting
downstream in the value chain
Avanti, SES Astra
Inmarsat, Eutelsat

Foster (new) utilization of existing space capacity and
capability, in close partnership with users, through the
development of integrated (different space and non space
technologies) applications projects which demonstrate a
potential for sustainable operational services.
ARTES Applications Objective
- Existing space infrastructure
- Partnerships
- Customers
- Sustainable services
- Attract Investors attention

ARTES Applications
Elements providing a steady stream of opportunities
≈300 projects

Achievement examples
(either operational, commercial or profitable)
NAME DESCRIPTION
SATForM Online platform combining space and ground assets for forest monitoring
SATMODO Real-time monitoring of timber harvesting
eLeaf Water management and crop monitoring
DeSIRE Remotely piloted aircrafts for maritime surveillance
Blue-Belt Ship tracking for European waters
SatFinAfrica Financial services for remote African villages
ISIDE Satellite-distributed digital cinema
FlySafe * Tracking and forecast of bird movements to reduce bird strikes in aviation
VECMAP Mapping disease-carrying mosquitos in Europe
AMAZON Portable telemedicine units for diagnostic support in the field
iHST Internet services for high speed trains
Talkingfields Satellite technology supporting precision farming
SASS@Sea Flexible satellite broadband for ships
S2BAS Satnav support for small airports
INTOGENER Water flow monitoring and prediction
Planet2 Meteo. services for general aviation
* Inkef Capital (ABP) and MIF (KLM, Schiphol Airport a.o.) became shareholders by providing
significant funds to support international roll-out and ambitious Innovation Agenda

GAF (1997-2004): 360 collisions strikes/year
FAF (1998-2005): 320 collisions strikes/year
RAF(<2004): 110 documented serious accidents
Estimated conservative cost due to damage
and delays of commercial aircraft worldwide
1.2 billion USD per year
Birds and Flight Safety

After significant contributions TNO in conjunction with the FlySafe initiative by the Integrated
Application Promotion (IAP) Program of the European Space Agency, Robin spun out in the
summer of 2010 to pursue market leadership as an independent company. Since then:
• The world’s first purpose built avian radar marked the next generation of the industry
• Contracts were won in the Netherlands, Belgium, Spain, England, Norway, Poland, Estonia,
Bulgaria and Turkey.
• Beaten the worlds market leader 7 out of 8 times.
• Rapid increase in international inquiries, mainly from Middle East and Asia.
• The team grew fivefold, from 4 to 20 workers.
• Revenues increased 25% every 6 months.
• Minister of Dutch Economic affairs labels Robin as part of 100 most innovative SME companies.
• Inkef Capital (ABP) and MIF (KLM, Schiphol Airport a.o.) became shareholders by
providing significant funds to support international roll-out and ambitious Innovation Agenda.
FlySafe has facilitated the establishment of
ROBIN Radar Systems (TNO’s spin-off)
TNO
Swiss/NL
Ornit. Inst.
Meteo
France
Belgium
Meteo Inst.
IDA

 Every year between 700-1000 people die during long duration flights
(>6 h) due to medical reasons
 Each day 1- 1.5 planes are landing in emergency conditions for
medical reasons the statistic data on these landings showed that
45% can be avoided if a single electrocardiogram could be
transmitted from the plane to an emergency medical department in
an hospital;
 The cost of such re-routings is about 80K€.
 Increase flights duration, A380, 15 hours non stop
 Increase number of passengers will increase with the new capacities
of the planes
AMAZON, Management of Medical Emergency
for commercial aviation => the issues

Deployed and operated by airlines (Virgin Atlantic, bmi, Etihad,
Emirates, Virgin Australia), commercial shipping companies, luxury
yachts and military health services
CE marked and cleared to market by US FDA
AMAZON, Management of Medical Emergency
for commercial aviation => the service

Express Union remote branch in Cameroon
EMI Money remote branch in Cameroon
SatFinAfrica
Money Transfer Service

• Market roll-out for TF Base Map and TF
Zone Map already achieved during
demonstration phase.
• More than 45 000 ha service area for TF
Base Map and TF Zone Map already
processed.
• Many of the TF customers are already
paying.
• Orders have been processed from 8
countries (Germany, Russia, Denmark,
Czech Republic, Poland, Latvia, Hungary and
Kazakhstan).
• Strong market position in Germany due to
PC Agrar customer base and combined offer
with soil probing service of PC Agrar.
• Return of Investment expected 4 years after
demo phase.
Talking Fields
Strength of the Business Case & Commercial Success

Profitable
15
9%
Commercial
44
27%
Operational
29
18%
Seed
30
19%
No Follow-on
44
27%
Qualifier Definition
5
Profitable
Led to a business that has reached
break-even point
4
Commercial
A commercial offer generating
revenues has been put in place
3
Operational
Operations continue after the end
of the ESA contract
2
Seed
Have generated other pilot
projects inside or outside ESA
1
No Follow-up
No Follow-up after the conclusion
of the contract
162 projects assessed, 93 projects (57%) from SMEs
ARTES Applications
Evaluation of projects’ success in the marketplace

ESA Project Execution
Time
5 KPIs and timing for measure
1. Customer willingness to pay (evidence via formal written statement in the
proposal)
2. Product/Service quality: technical aspect of the product/service, working as
expected (measured via monitoring of technical status)
3. User acceptance: users were actually using the product/service during the pilot
(measured via utilisation profile)
4. Stakeholders confirmed their needs were satisfied during the pilot (measured
via feedback)
5. Products/services have generated revenues before end of the pilot stage
(measured via sales)
Proposal Development/Integration Pilot Service Evaluation
54321

Applications Broker
in Belgium
(BELSPO )

Applications Broker in Belgium
(BELSPO )
Spread and increase awareness of Space Applications to
Users to federate User demand (generate “critical mass”).
Local Presence and Domain
expertise.
Act as an “honest broker” between ESA, industry and user
community.
Motivate stakeholders to submit viable
proposals.
Organize and run workshops (with ESA support).
Role

ESA UNCLASSIFIED – For Official UseSources: Law Offices of Countryman & McDaniel/CargoLaw.com, International Salvage Union, 2003
European Satellite AIS Mission
Users Driven in partnership with EMSA

Applications & Services
 Maritime Security : support of security
operation,…
 Law enforcement services: anti-
piracy, illegal fishing, …
 Search and Rescue (SAR)
 Maritime surveillance services:
monitoring of vessel in sensitive areas
 Environmental services: pollution
response…
 Maritime Safety services: vessel traffic
management,…
 Fleet management services for
commercial users: for shipping
companies…

Cocaine Trafficking –
M/V Winner, Bolivian flag
Interception by French warships
Loading point
COURTESY OF EUROPOL

30/06/2014 22
FEMIP
Facility for
Euro
Mediterranean
Investment and
Partnership
through which the European Investment Bank supports the economic development in
the Mediterranean partner countries

SMAP

ESA UNCLASSIFIED – For Official UseESA UNCLASSIFIED – For Official Use
Annual ARTES Applications Workshops
• The 1st WS in ESTEC in 2011
• The 2nd (2012) hosted by UKSA/TSB in Harwell
• The 3rd Workshop (2013) with ASI at CASD in
Rome, More than 250 attended
• The 4th Annual ARTES Applications & Services
Workshop is hosted by Luxinnovation. Among
other elements of the programme, a session
dedicated to financing, matching and partnership
and dedicated session with EIB for “Space 4 Med”
with Guests from the Med region are attending
during this Event.
• The 5th Annual Workshop will be hosted by
SSO in Switzerland (Feb 2015) “Lift 4 Space”

4th Annual Apps WS,
April 29/30 Luxembourg
Did the workshop meet your expectations?
Yes 54
Partly 2
No 0

Concept
Development
Feasibility
Study
Demonstration
Project
Seed
Capital
Start-up
Capital
Development
Capital
Company
Creation
Service
Incubation
Investment &
rollout readiness
Funding Stream (ESA up to Demo)
Business Support Stream
Funding/
Resource
Cliff
No ongoing support for
Project/companies!
New ways of supporting
project/companies!
26
We need to increase support for SMEs at all
stages in the process

TTP
Brokers
ESA
BICs
ARTES
AP
Network
Horizon 2020, national programmes and ESA directorates activities are
coordinated through intensive collaboration with DG-ENTR, ESA Inter-
directorate Application Group and national/regional entities contacts
Pilot Cases:
- Portugal
- Belgium
- Switzerland
- UK
ESA Space Solutions ®
Convergence Towards One ESA
Innovation Funds

ESA Investment Readiness Programme (IRP)
and the ARTES Applications programmes
1. The ESA Investment Readiness Programme helps companies to
make successful pitches to potential investors.
2. IRP training courses lead to the ESA Investment Forum (this
year in Toulouse on 2/7/14 to coincide with the Space Show).
3. One course took place during the ARTES Applications
Workshop, with “ARTES companies” also joining a training
webinar in June.
4. Topics included “What investors want”, “Top ten mistakes to
avoid”, “How to improve your pitch” and “Crowdfunding”.
5. Coaching was conducted by Business Angels, Venture Capitalist
and Business Coaches from UK, USA and Switzerland.
6. A session on partnership brokering was run with Enterprise
Europe Network, the world’s largest B2B network.

One size does not fit all…
1. Different companies need different types of investment –
and investors also have varying interests.
2. SMEs in ARTES programmes typically benefit more from
early stage equity investment by Business Angels, rather
than from Venture Capitalists.
 So ESA is building contacts with Business Angel
Networks.
3. SMEs seeking to scale up their business are more likely to
benefit from VCs or Bank Loans/Debt.
 So ESA is building contacts with Banks, including EIB.

Space /
Non Space
company
• Funds (€)
• In kind
Equity partner e.g.
Gov (Bavaria) or
Business Angels
• Funds (€)
ESA / ARTES
App. & Services
=<50%€
PROJECT
= 0 €
EIB: grant/loan/
guarantee
<=100% €
Investors, Partners
EMSA, EDA, Satcom
Operators
+<50%€
Market readiness requires access
to several types and sources of support

Outcome of the HLF second round
table
“How can ESA better contribute to
growth & employment in the
European space sector”
HLF: Reflection on recommendations for ESA’s
future role and mandate in the development of
the downstream sector

Outcomes of the second round table
1. Do more demonstration projects up to pre-operational phase
2. in parallel of pre-operational demo, develop regulatory framework,
certifications …
3. ESA to open doors to large user organisations, and promote space
capabilities
4. More for the EC, a support legislation to be developed (transports)
5. When the big infrastructure is to be deployed, identify priorities, i.e.
what is the most promising, or difficult cases when the services will not
naturally develop; and reflect on sustainability of the eco-system
6. Industry to propose a single counter to ESA for the definition of future
space infrastructures including dev. Operations, downstream…
7. There is a need to improve coordination and minimize areas of overlap,
between ESA, industry and EC activities
8. Recommend increase of ESA budget to provide for the downstream
sector and activities on pilot services from current level of 1% to 3%

Opportunities of the
ARTES Applications
Programmes
&
How to Apply

ARTES Applications
Programme Elements Objectives
ARTES 3-4 Satcom Applications (part of ARTES 3-4)
Study or Develop and validate applications and services making use of
Satcom
Typically supplier/industry driven
ARTES 20 Integrated Applications Promotion
Study, develop and validate integrated space applications (at least two
space assets) for pre-operational services
Typically user driven
TIA Missions ARTES 21/Hylas, Alphasat
Supports the definition and development of new applications and
services
Applications and service providers driven 1. Applications & Services
1. Feasibility Studies
2. Demonstrations Projects
1. Newcomers’ Initiative
2. Study Activities
3. Satcom Apps Projects
3rd Party Funding (e.g EIB/EC/EDA/EMSA/Partners)

ARTES 3-4 SatCom Applications
The three different entry points
For all activities: ESA price
can be up to 50% of the
project costs
1 - Study
Activities
max 250k
ESA price
Products:
Space
Products:
Ground
Terminals
2 - Products:
Satcom Apps
Open Call AO/1-5891/08/NL/US ARTES 3-4 “Telecom - Products Programme”
INDUSTRY
Open Call AO/1-5658/08/NL/US
“ESA Telecom – Newcomer’s Initiative”
*: 150k for F and NL
SMEsnewto
ESATelecom
3-Newcomers
Initiative
Max 200k (or 150k*)
ESA price
Ground
Space
SatComApps
MARKET

1. The Outline Proposal is a key step in the process of preparation of
your project
2. It allows ESA to understand the ground of your ideas, and provide
early feedback to highlight potential challenges in the successive
steps of the project preparation process
3. It allows ESA to extract the information required to prepare the
internal paper to be submitted to the relevant ESA internal
committees
4. The outline proposal is an instrument for collaboration and
reciprocal help rather than a formal burden
First step to apply:
Outline Proposal

ARTES Applications
Outline Proposal
http://telecom.esa.int/opdt/

Guideline and Template for the Preparation
of the Outline Proposal
Organised in 11 Sections:
1. System/Service Overview
2. Major Project Stakeholders
3. Service Value Chain
4. Competitive Positioning
5. Market Analysis
6. Financial Indicators
7. User Requirements
8. System/Service Architecture
9. Implementation Approach
10. Pilot Service
11. Finance, Management &
Administrative (FMA)
Word document available under:
http://artes-apps.esa.int/publications

ARTES Apps Outline Proposal
Development Tool
1. System/Service Overview
2. Major Project Stakeholders
3. Service Value Chain
4. Competitive Positioning
5. Market Analysis
6. Financial Indicators
7. User Requirements
8. System/Service Architecture
9. Implementation Approach
10. Pilot Service
11. Finance, Management & Administrative (FMA)

ARTES Applications Outline Proposal
Development Tool
Short Introductory Video
After you have done
with the tool, please
leave us your
feedback!!!

Due to the pre-commercial orientation,
up to 50% funding of the total (allowable) project cost is funded by ESA
Costing and Pricing
Prime
Cost
Elements
Sub
Cost
ElementsSub
Cost
Elements
User
Contributions
TOTAL
PROJECT
COST
Elements of
Eligible
Costs
ESA Price,
max 50%
Total
Eligible
Project
Cost
Internal
Funding
Cost: value of the project
Price: what ESA pays
Source: industrial share, investors,
alpha customers contributions, …

1. Register to ESA EMITS at http://emits.esa.int (to get access to ITT documents)
2. Read the documents (invitation letter, special tender conditions, draft contract) for
AO5891 ARTES 3-4: TELECOM - PRODUCTS or
AO6124 OPEN CALL FOR PROPOSAL FOR ARTES 20 IAP
3. If you wish to get first feedback about the eligibility of your idea, prepare a concise
concept paper (one-two pages) that you could share with ESA. Send the concept
paper to iap@esa.int
4. Contact the relevant National Delegation(s) [countries of prime and subs] to get
feedback on their potential support. Contact points are available at:
http://artes-apps.esa.int/national-delegations
5. If feedback is OK, prepare the Outline Proposal in line with applicable ITT
documents (from EMITS). Templates and on-line tools to support the preparation of
the Outline Proposal are available under:
http://artes-apps.esa.int/news/opdt-artes-applications
6. In case you want to apply for the special access to Satcom capacity and services at
preferential conditions, clearly indicate this in the Outline Proposal. Further info at:
http://artes-apps.esa.int/opportunities/satcom-apps/operator-opportunity
7. Submit the Outline Proposal in accordance with what is indicated in the ITT
8. After ESA feedback and green light, proceed with Full Proposal preparation and
submission
How to apply – Checklist

Dates for Full Proposal Submission
Evaluation Session
ID
Full Proposal
Submission
Deadline
TEB Meeting
2014#3 19 Jun 2014 08 Jul 2014
2014#4 18 Sep2014 07 Oct 2014
2014#5 20 Nov 2014 09 Dec 2014
To improve efficiency, evaluation of the Full Proposals submitted in
response to the Open Calls ARTES 20 Demo and ARTES 3-4 Satcom
Applications will take place at pre-planned dates:
TEB: Tender Evaluation Board

ESA-SatCom Operators Applications
& Services Initiative
Formal agreement between ESA and the Satcom Operator guarantees the
following undertakings:
1) A set of privileged conditions to access the satellite capacity for the duration
of the ESA project (either free of charge, or at discounted fees)
2) Structured access to technical, operational and commercial information to
support the selection of the most suitable option
3) Dedicated support during the preparation of the proposal and the execution
of the project
The agreements currently(*) in force are the following:
Satcom Operator Satellites Provision Status
Avanti HYLAS 1 Raw Capacity, Managed IP
Access Services
Operational
SES Broadband
Services
Astra @ 23.5˚
and 5˚ East
Managed IP Access
Services
Operational
(*) In Nov2012, Eutelsat has also started discussions with ESA for possibly joining the initiative

ARTES Applications
Contact Points
Francesco.Feliciani@esa.int
Rita.Rinaldo@esa.int
Norbert.Huebner@esa.int
Jan.Dettmann@esa.int
Amnon.Ginati@esa.int
Andreas.Schoenenberg@esa.int
Stefan.Gustafsson@esa.int

Thank You!
ARTES Applications & Services Portal:
http://artes-apps.esa.int
“Space has no
Limit”

Telecom - ARTES 3-4

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