To shed light on the strategy behind China's global satelllite marketing efforts, Satellite Markets and Research caught up with Mr. Fu Zhiheng, Executive VP of China-based satellite launch services provider Great Wall Industries.
How do find Great Wall’s position in the global launch market today?
China Great Wall Industry Corporation (CGWIC) has been in the international launch services market since early 1990s. As of today, Long March launch vehicles have performed more than 280 flights with high reliability. Among all these flights, CGWIC has provided over 50 launch services to our international customers, serving customers’ needs with cost-effective solutions.
However, due to the US export control restrictions, Long March launch vehicles have not been able to compete fairly in the international launch services market since late 1990s. Currently, CGWIC has not been able to launch any western built communications and earth observation satellites, and our main focus on the launch market is on the small and micro satellite launch services, along with providing packaged in orbit delivery solutions with Chinese satellites, launch services and ground segment bundled together. Since there are highly intensive domestic launch manifest in China in recent years, CGWIC is also actively providing piggyback launch services, sending a lot of secondary payloads to space for international customers. CGWIC is also promoting newly delevoped small launchers to the market to provide quality and affordable services to the mirco and nano satellites.
What do you think of the International Traffic in Arms Regulations (ITAR) rules and how are you adjusting your sales and marketing strategy given the ITAR regulations?
For China’s space industry, ITAR is a kind of political obstacle preventing us to compete fairly in market. It is somewhat used as a trade barrier for us. There are quite significant demands for our products and services, but we are not able to serve these demands due to ITAR constraints. We can fairly say that we would have a much bigger market share if no ITAR constraints existed, and many satellite operators would have an additional alternative choice to their business success.
However, the political barriers have not prevented CGWIC from becoming an active player in the commercial space market. CGWIC has been promoting launch services for unrestricted satellites, with more countries being able to manufacture such small in size but capable in performance satellites using COTS components. In the meantime, CGWIC’s main strategy is to provide tailor-made packaged solution with launch services, satellite, ground tracking and control facility, satellite application, insurance, financing, and technical training in case of need. This approach is quite successful among customers in emerging spacefaring countries, who have not many experiences in procuring and operating a satellite system, and it has also attracted more and more established operators as well. Many established operators have recognized that our Long March rockets already have an excellent track record, and now people are realizing that Chinese satellites are also competitive and reliable.
Can you elaborate on your sales strategy? What markets are you going after and how are you approaching these markets? How different is your strategy with your competitors?
Packaged commercial space solutions differentiate us from our competitors in the market. Few of our competitors would like to provide the bundled solutions like we offer in the market. We are a system integrator for space product and services based on customers’ demand. We even help some of them to do the early program planning. Our roadmap is to start business with emerging government customers, and expand to established operators. Our products are becoming more competitive especially in the medium capacity communications satellite market. We are also developing more competitive and advanced products for this market.
How are your newer satellites like the DFH-4 platform for your customers performing in orbit?
The DFH-4 platform is the third generation communications satellite bus in China and it is becoming more mature and more reliable. Our first DFH-4 satellite operational in orbit is VeneSat-1 for Venezuela, launched in 2008. Until now it has been in orbit for about ten years without any problem. It has been in operation in very high usage rate in capacity and has brought good economical returns to the customer. The international customers of DFH-4 satellite also include Nigeria, Pakistan, Bolivia, Laos, Belarus as well as commercial operators like APT of Hong Kong. Generally speaking, all these DFH-4 based satellites are performing well in orbit, which are also recognized by international insurance companies.
Talk about your newest satellite platform the DFH-5--what new technologies are you using for this satellite and what are its advantages over other satellite platforms in the market today?
As the next-generation geosynchronous orbit platform in China, the capacity and technical performance of DFH-5 satellite platform will be at a par with the main stream products in the market. With a lift-off mass up to 8000 kg, it will be able to accommodate much larger and complex payload, with higher output power and enhanced flexibility. New cutting edge payload technologies will also be adopted. DFH -5 platform will be able to meet the requirements for very high throughput satellites as well as other missions with various configurations.
How do you see the planned Low Earth Orbit (LEO) satellite systems?
As for the emerging LEO systems, It’s true that they have some advantages over the traditional GEO systems, and they may have learnt some lessons from the previous generation LEO systems. But, to be realistic, I don’t believe that all these systems will succeed due to limited resources available, both technically and financially. These LEO systems also have to face the intensive competition with the terrestrial as well as GEO systems. I think that the Chinese space industry is following the trend in the market and several systems are under planning.
Generally speaking, it is a good thing for the satellite manufacturers and launch services providers, which may bring more opportunities as well as great challenges. For example, as a manufacturer and service provider, we have to innovate our production process in order to meet the demand for the deployment of the constellation as quickly as possible. In return, this will help the space technology and industry forward.
