{"id":139130,"date":"2024-02-06T11:18:21","date_gmt":"2024-02-06T16:18:21","guid":{"rendered":"https:\/\/www.ucf.edu\/news\/?p=139130"},"modified":"2025-03-13T10:56:33","modified_gmt":"2025-03-13T14:56:33","slug":"new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding","status":"publish","type":"post","link":"https:\/\/www.ucf.edu\/news\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\/","title":{"rendered":"New UCF Study Proposes Space Auctions to Ease Satellite Overcrowding"},"content":{"rendered":"<p>Currently there are more than 4,500 SpaceX\u2019s Starlink satellites orbiting the Earth, and this number is expected to rise to 42,000 in the next 10 years. SpaceX\u2019s next biggest competitor, tech giant Amazon,\u00a0has plans to launch more than 3,200 broadband satellites into orbit.<\/p>\n<p>With this many privately-owned satellites in low Earth orbit, there are concerns about catastrophic collisions in outer <a href=\"https:\/\/www.ucf.edu\/space\/\">space<\/a>, signal interference and the sheer number of satellites located there.<\/p>\n<p>In response to the challenge of allocating this shared resource, Enrique Guerra-Pujol, a law professor in the UCF <a href=\"https:\/\/www.ucf.edu\/college\/business-administration\/\">College of Business<\/a> and the School of Accounting, has proposed a new model of outer space governance in the new issue of the <em>Annals of Air &amp; Space Law<\/em>: outer space auctions.<\/p>\n<p>Under the existing legal framework, if a private firm like SpaceX plans to launch a satellite into orbit from the U.S., it must first obtain permission from three public agencies: the\u00a0Federal Aviation Administration (FAA), which has jurisdiction over the launching and re-entry of commercial space vehicles; the Federal Communications Commission (FCC), which has jurisdiction over the orbits of communication satellites launched from the United States; and the International Telecommunication Union (ITU), which allocates radio-frequency allocations to the ITU in accordance with the provisions of the international treaty governing the use of radio frequencies, called the Radio Regulations.<\/p>\n<p>\u201cWhat if, however, these agencies used auctions instead of giving away these resources for free?\u201d Guerra Pujol says.<\/p>\n<p>Guerra Pujol\u2019s new study provides a systematic analysis of the problem of space congestion and proposes a market-based solution through the implementation of outer space auctions, drawing inspiration from Coasian principles.<\/p>\n<p>Coasian solutions propose using market mechanisms to allocate resources efficiently.<\/p>\n<p>A historical precedent for orbit and launch auctions is the Omnibus Budget Reconciliation Act of 1993 or OBRA-93, which gave the FCC the legal authority to use auctions to allocate property rights in the electromagnetic spectrum, Guerra Pujol says. Subsequently, the United States Congress expanded the FCC\u2019s auction authority when it enacted the Balanced Budget Act of 1997.<\/p>\n<p>The researcher says most business firms are already familiar with the first-price sealed-bid auction or blind auction in which bidders simultaneously submit secret bids so that no bidder knows how much the other auction participants have bid. The bids are not opened until a certain date, and the person with the highest bid \u2014 or second-highest bid in the case of a second-price auction \u2014 is declared the winner. This simple format, however, is not the method used by the FCC to allocate licenses in the electromagnetic spectrum. Instead, the FCC uses a method called the simultaneous ascending auction or simultaneous multiple-round auction.<\/p>\n<p>In principle, the FCC or ITU, or both, could use some variation of the simultaneous ascending auction to allocate orbit or launch licenses, especially for the new generation of mega-constellation satellites since the simultaneous ascending auction format is flexible enough to accommodate the plethora of variables in the case of orbit auctions, such as variation in radio-frequencies for various applications, different orbits, different altitudes, or variable numbers of satellites, Guerra Pujol\u00a0 says.<\/p>\n<p><strong>Researcher\u2019s Credentials<\/strong><\/p>\n<p>Enrique Guerra Pujol joined UCF in 2014 and has published dozens of scholarly articles, five book chapters and two textbooks. He has a Juris Doctorate from Yale Law School and bachelor\u2019s degrees in Spanish literature and political science from U.C. Santa Barbara. His areas of <a href=\"https:\/\/www.ucf.edu\/research\/\">research<\/a> include law, markets and property rights.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The study provides a systematic analysis of the problem of space congestion and proposes a market-based solution.<\/p>\n","protected":false},"author":199,"featured_media":139132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"lazy_load_responsive_images_disabled":false,"footnotes":"","_links_to":"","_links_to_target":"","_wp_rev_ctl_limit":""},"categories":[4,5,23,24],"tags":[7309,2641,4361],"tu_author":[],"class_list":["post-139130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-colleges","category-research","category-science-technology","tag-college-of-business","tag-kenneth-g-dixon-school-of-accounting","tag-space"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New UCF Study Proposes Space Auctions to Ease Satellite Overcrowding | University of Central Florida News<\/title>\n<meta name=\"description\" content=\"The study provides a systematic analysis of the problem of space congestion and proposes a market-based solution.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ucf.edu\/news\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New UCF Study Proposes Space Auctions to Ease Satellite Overcrowding\" \/>\n<meta property=\"og:description\" content=\"The study provides a systematic analysis of the problem of space congestion and proposes a market-based solution.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ucf.edu\/news\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\/\" \/>\n<meta property=\"og:site_name\" content=\"University of Central Florida News | UCF Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/UCF\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-06T16:18:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-13T14:56:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ucf.edu\/wp-content\/blogs.dir\/20\/files\/2024\/02\/space-auction-concept-v1_crop01.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Robert Wells\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@UCF\" \/>\n<meta name=\"twitter:site\" content=\"@UCF\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robert Wells\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\\\/\"},\"author\":{\"name\":\"Robert Wells\",\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/#\\\/schema\\\/person\\\/9512118dceafb8df4e29be3674361895\"},\"headline\":\"New UCF Study Proposes Space Auctions to Ease Satellite Overcrowding\",\"datePublished\":\"2024-02-06T16:18:21+00:00\",\"dateModified\":\"2025-03-13T14:56:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\\\/\"},\"wordCount\":575,\"image\":{\"@id\":\"https:\\\/\\\/www.ucf.edu\\\/news\\\/new-ucf-study-proposes-space-auctions-to-ease-satellite-overcrowding\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ucf.edu\\\/wp-content\\\/blogs.dir\\\/20\\\/files\\\/2024\\\/02\\\/space-auction-concept-v1_crop01.jpg\",\"keywords\":[\"College of Business\",\"kenneth g. dixon school of accounting\",\"space\"],\"articleSection\":[\"Business &amp; 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