Boeing’s new Commercial Satellite Services entity was created in February to design and market a variety of hosted payload and other configurations based on customer needs. The move is a significant return to the commercial side of the military aisle for Boeing and shows that the hosted payload market represents a major part of the company’s long-term business model, as global demand for communications bandwidth continues to increase dramatically.

Boeing entered the hosted payloads business in 1993, when the company helped the U.S. Navy upgrade its ultra-high frequency (UHF) satellite communications system to host an extremely high frequency (EHF) payload as well as the first military Ka-band payload. In August 2010, the company was contracted to build three Ka-band MSS units for Inmarsat’s new Global Xpress broadband network, also based on the 702HP, following a four-spacecraft sale to FSS operator Intelsat in 2009 that draws on a new medium-power 702MP Boeing developed to broaden its market reach.

Boeing conducted research on new military communications-on-the-move mission requirements for low-altitude airborne intelligence, surveillance and reconnaissance platforms operating on Ka-band frequencies.

Jim Simpson, vice president of business development for Boeing’s Space and Intelligence Systems (S&IS) business unit and its new Commercial Satellite Services division, spoke about what his company has learned during its last 12 months in the hosted payload business, which incorporates partnerships across the industry’s fixed, mobile and broadband satellite service segments.

Via Satellite: In February, Boeing received a U.S. Air Force contract to study ways to modify existing commercial satellites to place hosted payloads on Intelsat and Inmarsat spacecraft. What were some of the key discoveries during your research and development process on this contract?

Simpson: The key element we found was how important it was to have interoperability between the military’s current systems being used in both Ka-band and also in the ultra-high (UHF) frequencies that are already a part of our systems. It was important to consider that if the Inmarsat system and the Intelsat system allowed the same type of ground system to be utilized, the user would not have to purchase unique hardware to be compatible with the system.

Another important discovery we made was that the U.S. government found it surprising that they could actually utilize these hosted payloads autonomously from the actual activities of the satellite. In other words, we found that we would be able to provide this critical capability for them to operate the payload independently of the actual satellite service provider.

Via Satellite: How do the Intelsat and Inmarsat hosted payload projects compare and contrast?

Simpson: In regards to the Inmarsat system, we’re providing a high-capacity military Ka-band payload, as well a commercial Ka-band satellite, with the ability to switch between military and commercial Ka-band bandwidths. For all intents and purposes, the capabilities of the military Ka-band applications are extremely complimentary with our Wideband Global Satcom (WGS) system. In both cases, the satellites provide military frequencies effectively identical to its dedicated satellite counterparts.

Via Satellite: How important is compatibility with ground systems when developing hosted payload space segment systems for military users?

Simpson: In our opinion, compatibility with the ground system is the most critical element. We clearly do not want to have to build additional ground infrastructure when we don’t have to. The construction would defeat the purpose of the great economic savings provided by the ability to have customers share a satellite and have satellites share the launch vehicle.

Via Satellite: Why did Boeing become involved with the Hosted Payload Alliance?

Simpson: Boeing, like many other satellite companies, felt that hosted payloads represent a technology that will eventually be part of the larger satellite community and we wanted to make sure that the infrastructure is available so that it can be used by government customers. We felt that the Hosted Payload Alliance was one of those avenues that enabled a larger front for the community to be advocating for this capability and prevented us from looking like one discrete contractor. It advocates for something that the whole community feels is an important augmentation to the existing government satellite fleet.

Via Satellite: Has the U.S. government’s 2010 National Space Policy been utilized to leverage the full potential of hosted payloads? If not, what challenges need to be overcome?

Simpson: The U.S. government has not yet been able to fully utilize the hosted payload’s potential. To be frank, part of the reason that the government hasn’t been able to do this is because the hosted payloads aren’t up in orbit yet. In addition to simple availability, I think the other aspect that has held things up is that the government is trying to understand how the allocations of spectrum would work and how they would be able to manage these activities within their current infrastructure. Some of the possible ways they could do this would be through a U.S. General Services Administration (GSA 70) schedule with the U.S. Defense Information Systems Agency (DISA) or a contract through the U.S. Space and Naval Warfare Systems Command SPAWAR or some other vehicle. I do believe that there are a lot of opportunities that are being worked right now by both sides. We don’t see any real impediment on the government side; we just see that there is a lot of groundwork that needs to be done.

The good news for the satellite industry is that the U.S. government is clearly interested in hosted payloads. We have had very open dialog sessions with the government on how hosted payloads can complement its primary systems. In addition to that, we’re even starting to see other approaches being investigated that are relative to either hosted payloads or commercial satellites complementing the existing systems by the notion of DISA’s ASSIST program, which they are looking at as something that could come into fruition to work with the WGS fleet.

Via Satellite: How do hosted payloads reduce military costs?

Simpson: For one, hosted payloads allow surge capability without requiring the military to field additional systems. Hosted payloads also allow military end-users to employ the system at specific times when it is required. The economics of the hosted payload then become appealing to military end-users that don’t require the full system. In addition to that, hosted payload capabilities drastically reduce the costs of launching spacecraft, as well as the cost of the satellite and the ability to use the existing ground system. These are huge benefits in enabling hosted payloads to be a part of a military’s fleet.

Via Satellite: What has been the impetus of U.S. military budget discussions with a cost-conscious U.S. Congress concerning hosted payloads?

Simpson: To date, the discussions have been revolving around how much additional, dedicated capability is going to be required by the U.S. military. While the DISA ASSIST program is not a hosted payload, it is being evaluated as an alternative approach to traditional procurement of satellites. I think that one of the key obstacles we’re seeing in these discussions is the fact that none of these systems have been fielded yet, so relying on hosted payloads actually being there is a somewhat suspect angle to take. The influence of this angle hasn’t been as dramatic as I believe it will be in the next couple of years.