Australia has terminated a multibillion-dollar military satellite project with Lockheed Martin. On Monday, the Department of Defence released a statement announcing that the military would redirect its efforts toward a multi-orbit satellite system. This decision follows years of planning for the Geostationary Earth Orbit (GEO) satellite communications system. According to the Defence Department, the cancellation of JP 9102 reflects a reassessment indicating that the project no longer aligns with current strategic priorities.
The original project, JP 9102 Phase 1, was to deliver a next-generation sovereign satellite communications system for the Australian Defense Force. The project included new defense-controlled defense and operated GEO communications satellites, multiple ground stations nationwide, an integrated sitcom management system, and two new sitcom operations centers.
According to the DoD statement, the system would increase “the resilience, agility, and flexibility of Defence’s current military satellite capability.” The system was expected to cost between $3 and 4 billion AUD. Air Vice-Marshal David Scheul, the head of the Air Defence and Space Systems Division, said that up to 89 Defense capabilities currently depend on satellite communication. The new system, he said, was expected to be built to be resilient against anti-satellite threats such as electronic warfare, direct ascent missiles, and co-orbital anti-satellite operations.
Despite the cancellation of the single orbit system, Lockheed Martin Australia says it will continue to partner with the Department of Defense for future satellite and space technology needs. The company said in a statement that it will work to ensure the new multi-orbit system, still to be determined, is resilient against counter-space threats. The company also plans to work with the Victorian Government to establish Victoria as the engineering and technical hub for its JP9102 solution, claiming to create over 200 advanced space industry jobs in the state.
Lockheed Martin had partnered with local companies, including Inovor Technologies, EM Solutions, AV-Comm, Linfox, Shoal Group, Ronson Gears, Calytrix Technologies, Conscia, Clearbox Systems, and DXC, to develop its proposed solution for JP 9102. The solution was to include a communications payload on the Optus C1 satellite fleet and satellite services from Inmarsat.
According to several analysts, the cancellation of the single orbit system is a setback for local satellite technology companies and an unfortunate sign for the Australian economy. James Brown, a satellite industry analyst at IHS Markit, called the decision “staggering” and said it was a wrong signal for Australian Defense. “We’re building a defense force that’s going to cost hundreds of billions of dollars, and it’s useless if we can’t talk to each other,” Brown said. “That’s what this satellite communications program was meant to do.” Defense officials are expected to discuss alternatives, including leveraging existing commercial satellite networks or joining allied nations’ military satellite communications systems, shortly. The move comes amid concerns about increasing space threats, including China’s development of hypersonic missiles and Russia’s use of new anti-satellite weapons.
