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Viewing cable 08BERLIN1537, GERMANY: RAPIDEYE AG READY TO SELL UNIQUE

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Reference ID Created Released Classification Origin
08BERLIN1537 2008-11-13 16:22 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Berlin
VZCZCXRO0245
PP RUEHAG RUEHAST RUEHDF RUEHHM RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD
RUEHTM
DE RUEHRL #1537/01 3181622
ZNR UUUUU ZZH
P 131622Z NOV 08
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 2626
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNFRG/FRG COLLECTIVE
RUEHRL/USDAO BERLIN GE
UNCLAS SECTION 01 OF 02 BERLIN 001537 
 
SENSITIVE 
 
SIPDIS 
STATE FOR EUR/CE, EUR/ERA AND OES 
 
E.O. 12958: N/A 
TAGS: TSPA EINV ETRD PGOV PREL PINR GM
SUBJECT: GERMANY: RAPIDEYE AG READY TO SELL UNIQUE 
SATELLITE IMAGERY BY JANUARY 2009 
 
1.  (SBU) SUMMARY: By January 2009, German satellite imagery 
provider RapidEye AG (RE) will likely begin commercial 
delivery (without significant export restriction) of unique, 
space-based imagery with potential reconnaissance 
applications and capable of imaging any point on Earth daily. 
 Although primarily designed to image biomass, RapidEye's 
multi-spectral-imagery (MSI) capabilities and high revisit 
rate will serve expanded customer applications such as broad 
area coverage (similar to USG LandSat program), land-use 
change detection, and possibly even camouflage detection. 
Still seeking a large commercial contract for agricultural 
imagery and operating on a dwindling 160 million euro of seed 
funding secured in 2004, the company's business model will 
likely be adjusted to sell MSI to worldwide customers with a 
variety of national security interests.  END SUMMARY 
 
IMAGING CAPABILITIES 
-------------------- 
2.  (SBU) RapidEye's system distinguishes itself from its 
peers with its combination of a wide imaging spectrum, high 
revisit rate, and considerable imaging volume.  The system 
images in five spectral bands including blue, green, red, 
red-edge, and near infra-red.  The red-edge spectral band is 
a unique capability, which is important for RapidEye analysis 
of crop health/ stress and gives the company first-mover 
advantage in a niche market. 
 
3.  (SBU) Each satellite images a 77 kilometer (km)-wide 
swath while orbiting the earth in a sun-synchronous orbit 
(inclination angle 97.8 deg) 15 times per day.  Because of 
the orbital geometry and its swath width, RapidEye platforms 
can image the entire globe in as little as five days 
(assuming no cloud cover) or a large targeted land mass like 
Germany in as little as four days.  The system also has a 
limited ability (18 degrees off nadir) to steer their 
imaging, allowing them to image any point on the Earth on a 
daily basis.  Because RapidEye does not possess real-time 
control of their satellites, targeting of a specific area for 
imagery not already scheduled to be imaged would require up 
to 24-hour prior notice for satellite tasking. 
 
4.  (SBU) RapidEye imagery has a horizontal resolution of 6.5 
meters with a pixel size of 5 meters.  At this resolution, 
for example, buildings and large machinery would be 
distinguishable, whereas automobiles might not.  RapidEye 
also has the ability to produce digital elevation models 
(DEM).  Company officials said that DEM capabilities are 
currently being developed and predicted that their system 
could populate up to 50 thousand square kilometers worth of 
DEM data per day with a vertical resolution of around 19 
meters. 
 
FOREIGN INTEREST / EXPORT RESTRICTIONS 
-------------------------------------- 
5.  (SBU) In an October 15 meeting, RapidEye officials (in 
the presence of CEO Wolfgang Biedermann) told EconOff that 
they have received a considerable amount of interest from 
foreign governments.  Regarding this interest, Biedermann 
helpfully clarified, "you know, for intelligence 
applications."  For the most part, the export of RapidEye 
imagery is not restricted under German export law.  The only 
exceptions would be if the export destination was a listed 
country, firm, or individual prohibited by the German Federal 
Office for Export Control (BAFA), such as Iran.  In export 
cases where the end-user is not listed (but may be of export 
concern due to the dual-use nature of satellite imagery), 
Biedermann said his company would inquire with BAFA whether 
or not export control laws apply. 
 
EXPANDING THE BUSINESS MODEL - CAREFULLY 
---------------------------------------- 
6.  (SBU) Biedermann added that many potential foreign 
customers have expressed interest only in raw imagery data, 
rather than in purchasing their analytical products.  While 
Biedermann's clear preference is to focus the business model 
on delivering analytic product, he has made the executive 
decision to foster these business opportunities while 
maintaining control of their data.  Biedermann said, 
"RapidEye understands the opportunity to just sell raw data, 
but RapidEye does not distinguish between raw versus 
processed data pricing wise." 
 
7.  (SBU) Biedermann also indicated that foreign governments 
have expressed an interest in setting up ground stations for 
direct download of RapidEye data.  Biedermann rejected this 
notion, saying that "we do not like this idea at all, it is 
our data, and we want to control our archives."  However, he 
 
BERLIN 00001537  002 OF 002 
 
 
left the door open and added, "However, this all depends on 
our customer needs and anything is possible." 
 
8.  (SBU) Biedermann said that RapidEye is always interested 
in expanding its product offerings and capabilities, 
mentioning the possibility of partnering with space-based 
radar data providers.  (COMMENT: Space-based radar data could 
potentially be used to fill imagery requirements when 
environmental factors such as cloud cover would obstruct 
RapidEye electro-optical imagery.  Based on unclassified 
notes from a NGA visit to RapidEye on September 8, RapidEye 
already has a cooperation agreement with EADS Astrium 
subsidiary Infoterra Ltd, which holds exclusive commercial 
rights over TerraSAR-X space based radar data.  END COMMENT.) 
 
PROSPECTS 
--------- 
9.  (SBU) Although RapidEye is nearing full operational 
status, they are running on fumes financially.  Their 160 
million euro 2004 financing is running out and they have 
apparently not seen the demand they expected from the 
agricultural industry - their primary business focus. 
Biedermann complained about the difficulty of marketing their 
product to the agricultural insurance industry and said they 
are still looking for an economic hook to entice customers. 
To further complicate this situation, the current financial 
crisis may limit their future financing options, thereby 
increasing the pressure to reach out to more liquid sources 
of cash. 
 
10.  (SBU) RapidEye knows that their long-term viability is 
dependent on their ability to establish themselves be a 
provider of processed imagery and analytic product and not 
simply as a raw data provider.  Since RapidEye does not hold 
intellectual property rights (IPR) on their satellite bus or 
imaging technology, there is nothing stopping instant 
competition from arising if another firm were to procure an 
identical satellite constellation. 
 
ABOUT RAPIDEYE 
-------------- 
11.  (SBU) Founded in 1998, RapidEye AG is a Brandenburg 
based German start-up of approximately 90 employees.  Their 
primary business model is to provide imagery and value-added 
analysis of large areas of biomass for insurance companies 
and agricultural commodity futures traders.  To accomplish 
this task, RapidEye procured five 380 kg micro-satellites 
from the UK based Surrey Satellite Technology Ltd (SSTL) and 
multi-spectral space cameras from the German firm 
Jena-Optronic GmbH.  On August 29, 2008 RapidEye successfully 
launched this constellation onboard a Dnepr rocket from the 
Baikonur Cosmodrome in Kazakhstan.  Through a contract set up 
with Kongsberg Satellite Services AS, all RapidEye imagery is 
downloaded to an X-band antenna located in Svalbard, Norway. 
From their Brandenburg headquarters, they task the satellites 
via S-Band radio, receive the Svalbard downloaded imagery via 
a fiber-optic line, and produce their imagery products and 
analysis for export.  In total, RapidEye's costs to date are 
approximately 160 million euro for the entire package 
including; the satellites, sensors, launch, facilities costs, 
and employees.  On October 21, RapidEye released their first 
public imagery, showcasing the capabilities of the RapidEye 
constellation.  According to company officials, they expect 
to deliver their first commercial imagery by January 2009. 
TIMKEN JR