Dispute resolution in the satellite, space and telecoms sector

At present, most publicised space-related disputes have occurred within the telecoms industry. In particular these have been satellite operations with typical issue relating to delays or failures in relation to satellite launches and satellite defects.

However, the space industry now spans a far broader spectrum of sectors, which raises the prospect of space disputes in a wide variety of innovative areas.

Commercial operators are also now venturing beyond traditional communication satellites into 5G satellite internet services.  As a result, we expect to see an exponential increase in satellite launches, with the number of satellites in orbit forecast potentially to grow from 2,500 to 50,000 within the next decade, including Low-Earth orbit (“LEO”) satellites. Operators such as SpaceX, Telesat and Amazon have some of the most ambitious plans for the launch of new satellites constellations.

There are a range of dispute resolution options presently available to commercial operators, governments or public bodies in the space industry under international arbitration through institutional rules such as International Chamber of Commerce. The Permanent Court of Arbitration has also developed a specialised arbitration rules to deal with the particularities of space disputes.

More recently in 2021, the Dubai International Finance Centre’s (“DIFC”) launched its Courts of Space as part of the Courts of the Future initiative, which is designed to help build a new judicial support network to serve the commercial demands of international space exploration in the 21st century.

The new court also aims to encourage businesses to opt for this jurisdiction to resolve their space-related disputes. The DIFC has already published two editions of its ‘Space Disputes Guide’ under this initiative.

The two of the most notable space-related disputes in recent years arise from contracts relating to satellites and orbital slots, namely Devas Multimedia Private Ltd v Antrix Corporation Ltd (ICC Case No 18051/CYK) and Eutelsat Communications v SES.

When dealing with a cross-border and large-scale disputes in the space sector, the key question that arises is which is the most appropriate forum for dispute resolution in this sector; because they often involve large-scale commercial or government operations. Therefore, international arbitration is typically regarded as a more attractive forum than standard litigation before national courts. This is because of its unfettered procedural flexibility, its technical understanding of space disputes and the highly-confidential nature of space disputes.

As technological advancements are made within the satellite, space and telecoms sector, we anticipate that arbitration will be the dispute resolution of choice. Therefore, it is vital that the existing arbitration mechanisms are adapted or improved to deal with the changes of the space industry in the future.