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Satellite Firms See Opportunity in Pentagon

Commercial satellite and space firms are hoping the Pentagon’s increasingly tight budgets will translate into more business as military officials seek faster and cheaper options.

Traditional military satellite programs have become increasingly expensive and delayed, even as the need for communications capacity continues to grow, said Marco A. Caceres, director of space studies at the Teal Group research firm.

Commercial options are often considered quicker ways to get satellites launched or obtain additional capacity, but the military has been resistant to relying on non-custom-built options, said Todd Harrison, a defense analyst with the Center for Strategic and Budgetary Assessments. Using commercial firms would generally require the military to “accept something that’s not exactly what you want,” he said.

“DOD has not been forced to compromise this way in a while,” Harrison said. “If you needed more money for a program, you could usually get it, so there’s not a discipline in terms of requirements or being willing to make trades.”