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Ulviyya Poladova

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Over the past decade, Azercosmos has transformed from a modest regional satellite operator into one of the key technological symbols of modern Azerbaijan. This evolution reflects more than national pride - it represents a strategic response to the shifting realities of the 21st century, where digital sovereignty, information control, and communication resilience have become as vital as oil, gas, or transport corridors once were.

The launch of Azerspace-1 in February 2013 marked a turning point. Positioned at 46°E longitude, the country’s first telecommunications satellite connected Azerbaijan to Europe, Central Asia, the Middle East, and Africa. It not only elevated the nation into the global "space club" but also reduced reliance on foreign infrastructure, expanded television broadcasting and internet access, and strengthened the domestic communications backbone.

Since then, Azercosmos has evolved into a revenue-generating enterprise with growing export potential. In the first two months of 2026, the agency exported satellite communication services worth approximately $3 million, an 11.1% increase compared to the same period in 2025. The spectrum of its clientele shows a diversified market: the United Kingdom, Luxembourg, Sweden, Türkiye, and Pakistan rank among its largest importers.

Azercosmos’ integration into international networks further reinforces its strategic trajectory. On May 8, 2026, the agency became a member of the Digital Intermediate Frequency Interoperability (DIFI) Consortium, a global alliance committed to advancing interoperability, digital transformation, and open standards in satellite communications.

Membership provides Azercosmos with a seat at the table in shaping global satellite standards - a role typically reserved for major industry players. It also opens doors to technological collaborations that can accelerate Azerbaijan’s participation in next-generation satellite connectivity, artificial intelligence applications in space operations, and digital infrastructure resilience.

Beyond DIFI, Azercosmos maintains memberships in the World Teleport Association (WTA), Global Satellite Operators Association (GSOA), Islamic Network on Space Sciences and Technologies (ISNET), and the International Astronautical Federation (IAF).

In recent years, satellite infrastructure has acquired growing strategic significance amid geopolitical instability, cyber threats, and intensifying technological competition. Space systems now play a crucial role in communications security, navigation, intelligence gathering, and infrastructure monitoring.

For Azerbaijan - located at the crossroads of Europe and Asia - independent space capabilities mean strategic resilience as much as commercial opportunity. The use of remote sensing and Earth observation systems has proven particularly important since the restoration of control over formerly occupied territories. Satellite imaging now supports the reconstruction of infrastructure, environmental assessments, mapping, and monitoring of large-scale development projects in Karabakh and East Zangezur.

Meanwhile, the global space industry itself is undergoing rapid transformation. Whereas outer space was once almost entirely dominated by governments, the sector is now increasingly shaped by commercial competition, private investment, artificial intelligence, and satellite miniaturization. The development of low-Earth orbit satellite systems and reusable rocket technologies has fundamentally changed the economics of the global space industry.

In his comment for AzerNEWS, Chairman, Public Union for Support to the Development of New Technologies Jeyhun Khalilov emphasized that satellite independence is no longer a luxury for states, but a strategic necessity directly linked to national security and digital sovereignty.

"In the next decade, satellite infrastructure will become as strategic a resource as energy and the internet. Modern states are no longer defending only their physical borders - they are now defending their digital airspace," he said.

Khalilov pointed to the European Union’s IRIS² project as an example of how even major global actors are attempting to reduce dependence on foreign satellite platforms.

"The war in Ukraine clearly demonstrated that systems like Starlink are not simply communication tools. They influence tactical superiority and even the balance on the battlefield. Dependence on foreign satellite infrastructure can eventually turn political independence into strategic vulnerability," he noted.

Referring to the 2026 "Operation Epic Fury" military campaign against Iran, Khalilov argued that space superiority has become a direct prerequisite for military dominance.

"Intelligence gathered from 12,000 satellite images enabled around 900 precision strikes. At the same time, Iran’s reliance on Chinese satellite navigation systems showed how space dependency can evolve into strategic helplessness," he said.

According to Khalilov, Azerbaijan’s control over the 46° East orbital position through Azercosmos was an important step toward sovereign space capabilities. However, future competitiveness will not depend solely on owning satellites, but on how quickly countries can analyze satellite data and transform it into operational decisions.

Discussing cybersecurity threats, Khalilov warned that the space industry has already become an active cyber warfare domain. Modern satellites, he explained, face risks including signal jamming, GPS spoofing, uplink and downlink attacks, and attempts to seize control systems.

"These are no longer hypothetical scenarios. Incidents in the Caspian region as early as 2017 demonstrated that our region has already become an active electronic warfare environment," he stated.

The rapid expansion of low Earth orbit (LEO) satellite constellations, combined with AI-driven cyberattacks, creates additional vulnerabilities, Khalilov said. In his view, the greatest future danger is not the physical destruction of satellites, but their digital manipulation.

Khalilov also highlighted the enormous economic potential of the space sector beyond telecommunications. He noted that the global space economy has already exceeded $600 billion and could reach $1.8 trillion by 2035, driven primarily by geospatial data, climate analytics, smart agriculture, logistics, and defense technologies.

He further suggested that Azerbaijan’s geographic location between Europe, Central Asia, and the Middle East gives it the potential to become a regional hub for space data processing and distribution.

"Baku could evolve into a transit center for Eurasian space data flows - effectively becoming the space equivalent of Singapore’s regional technology hub model," Khalilov said.

Artificial intelligence, meanwhile, is expected to fundamentally transform Earth observation technologies and satellite operations.

"The challenge is no longer obtaining images from space. The challenge is analyzing billions of data points," he explained.

According to Khalilov, the industry is rapidly entering the era of "AI-powered Earth Observation," where artificial intelligence can automatically identify objects, predict natural disasters, analyze military activity, and monitor energy infrastructure risks in real time.

He pointed to the growing use of onboard AI processing systems, where data is analyzed directly in orbit rather than transmitted to Earth for later processing.

"Reaction times that once required hours or days can now be reduced to minutes," he said, referencing advanced satellite systems such as Airbus’ Pléiades Neo constellation.

Outlining the steps necessary for Azerbaijan to become a regional space and technology hub, Khalilov identified six strategic priorities: investment in human capital, creation of an independent regulatory framework, development of a space-tech startup ecosystem, integration of national AI infrastructure, careful selection of international partners, and active "orbital diplomacy."

He emphasized the need for specialized university programs in aerospace engineering, geospatial AI analytics, and orbital cybersecurity, while also calling for stronger legal and regulatory institutions similar to Luxembourg’s space governance model.

At the geopolitical level, he stressed that Azerbaijan should deepen cooperation with organizations such as the European Space Agency, Gulf countries, and Türkiye, while also promoting new regional frameworks among Turkic states.

"Azerbaijan has already entered this race. The orbital position exists, international credibility exists, and the initial infrastructure has been established. The key challenge now is strategic consistency, correct partnership choices, and investment in local human capital. Space sovereignty cannot be built overnight - but its foundation must be laid today," he concluded.