WASHINGTON — The U.S. government last week announced a series of reforms to export control regulations for space technology exporters. However, the changes exclude space products that are increasingly in demand around the world, such as high-resolution synthetic aperture radar (SAR) satellites.

At the heart of the issue is a technical specification that determines whether satellite technology falls under less restrictive Commerce Department oversight or much stricter State Department arms controls. Only SAR systems operating at a bandwidth of 500 MHz or less will benefit from relaxed rules – a threshold that industry executives say is already obsolete.

Frank Backes, CEO of Capella Space, a California-based manufacturer and operator of SAR satellites, said the new regulations would benefit companies selling off-the-shelf satellites and components. High-resolution SAR payloads still require licenses under the International Traffic in Arms Regulations (ITAR).

“There is no significant commercial operator on the planet today that operates at 500 MHz or less,” Backes said. SpaceNews. The company’s current satellites offer a resolution of 600 MHz, and there are plans to increase to 1,200 MHz – the same capacity already achieved by competitors Umbra in the United States and Iceye in Finland.

Global race for space assets

U.S. companies like Capella view export restrictions on high-resolution SAR as a competitive disadvantage as more countries seek to develop their own space capabilities. The war in Ukraine was a wake-up call to many countries about the strategic value of satellite technology, particularly high-resolution radar imagery that can see through clouds and darkness.

“The lesson for many countries is that if they don’t have their own space assets, they will be at a disadvantage if someone decides to attack them,” James Crawford, president of remote sensing company Orbital Insight, said in October . .21 at the Satellite Innovation conference in Mountain View, California.

“Is it really necessary for 100 countries to each have their own dedicated satellite constellation? I don’t know, but it seems like that’s where we’re going,” Crawford said.

The competition conundrum

For potential buyers like Japan, regulatory hurdles created by U.S. export controls could make alternatives like Finland’s Iceye SAR satellites more attractive. U.S. companies selling advanced SAR systems must still navigate the complex process of the International Traffic in Arms Regulations (ITAR), which requires both specific licenses and agreements between countries.

The new reforms offer some relief, especially for trusted allies. The Department of Commerce has waived licensing requirements for certain remote sensing satellites and spacecraft components intended for members of the “Five Eyes” intelligence alliance (UK, Canada and Australia) and partners in Western Europe .

The China factor

Industry experts suggest that U.S. policymakers are beginning to recognize the strategic implications of overly restrictive export controls. Alex Greenberg, co-founder of space infrastructure company Loft Orbital, said that if U.S. companies fail to meet global demand for space technology, Chinese companies will step in to fill the void.

“If it’s not American companies that have a presence there, it’s going to be China,” Greenberg said at the Satellite Innovation conference. “And that’s why a lot of this policy is softening, and there’s a greater willingness to push American businesses overseas.”

Signs of progress

Despite these limitations, industry leaders are seeing positive developments. Backes highlighted better cooperation with government regulators, including faster processing of ITAR applications and more open dialogue. The public comment period on the new rules runs until November 22, giving companies like Capella Space an opportunity to push for new reforms.

U.S. satellite makers are particularly eager to access emerging markets in the Middle East, Asia-Pacific, Africa and South America. “There are many customers in the market beyond Europe who really need and want SAR,” Backes said.

“The new rules are appreciated and long overdue,” he said. “But there is still work to do. As U.S. space companies see growing demand for advanced systems, many are hampered by regulations that do not fully account for current global commercial capabilities.

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