Australia is scrapping a $7 billion military satellite project, leaving defense communications potentially vulnerable

In a significant blow to Australia’s defense capabilities, the federal government is canceling what would have been the country’s largest-ever space project: a A$7 billion military satellite communications system.

The decision was confirmed today in a press statement. It comes just 18 months after the Albanian government gave the green light to the ambitious programme.

Defense industry sources quoted by the Australian newspaper indicated that insufficient funding had been allocated to launch the program, despite its strategic importance. According to the ABC“Defense industry figures believe cheaper options are available.”

The project’s cancellation would mark a dramatic turnaround for a program intended to make Australia’s military communications more secure at a time when the cyber threat landscape is steadily evolving.

The rise and fall of JP9102

The ambitious satellite program is known as JP9102. It was awarded to US defense contractor Lockheed Martin in April 2023 following a competitive tender process involving major players such as Airbus, Northrop Grumman and Optus.

The project intended for launch several large military-grade satellites. It would also include several ground stations, new satellite communications centers and a central management system. Taken together, this would create a secure communications network for the Australian military.

Currently, the Australian Defense Force (ADF) uses a complex network of up to 89 different ‘capabilities’ (military assets) that rely on satellite communications.

This existing system lacks the comprehensive security and coverage that JP9102 promised to deliver. Without this, Australia’s military communications remain potentially vulnerable to cyber and electronic warfare attacks.

In its statement, the Defense Department claims its “current satellite communications capabilities support the immediate needs of the organization.”

What can military satellites achieve?

The proposed satellite system was intended to create what experts call a “unhackable data network” within the ADF.

These military-grade satellites would have provided secure communications for fighter jets, naval vessels and ground troops in the vast Indo-Pacific region.

Unlike commercial satellites, military satellites have advanced encryption and anti-jamming capabilities. This makes them significantly more resistant to cyber attacks and electronic warfare.

Military satellites face advanced challenges cyber threats from both state and non-state actors.

It is widely recognized that China and Russia have advanced capabilities in this area. They have the ability to jam satellite signals, intercept communications and possibly even take control of satellite systems. North Korea has also demonstrated growing cyberwarfare capabilities, particularly in the area of ​​signal jamming.

In 2014, Russian armed forces allegedly blocked and disrupted satellite communications during their operations in Crimea. More recently, at the start of Russia’s invasion of Ukraine in 2022, hackers disabled thousands of satellite modems that were part of the Viasat satellite network, causing disruptions to both military and civilian communications across Europe.

In the commercial sector, Iran has been accused from interfering with satellite broadcasts and GPS signals.

This shows how even countries with less advanced military capabilities can pose a significant threat to satellite communications.

JP9102 was considered a ‘bleeding technology project’. It included plans for machine learning capabilities to increase agility and responsiveness.

The Australian Institute for Strategic Policy has previously praised the project’s potential to make room for future technological improvements:

The JP9102 satellites, if based on open architecture design or software-based systems, can benefit from future in-space maintenance technologies that can extend their operational life and improve their capabilities over time.

A budget reality

The key takeaway here is the growing gap between Australia’s defense ambitions and budget reality. As regional tensions continue to rise and cyber threats evolve, the decision to cancel JP9102 highlights the challenging trade-off between the need to secure Australia’s military communications and the costs this entails.

It raises the question of how Australia will secure its military communications in an increasingly contentious Indo-Pacific region. The cancellation of JP9102 creates a significant capability gap in Australia’s military communications strategy that must be addressed.

Defense planners will likely have to explore alternative solutions. This could include partnerships with commercial satellite providers or joining the military satellite networks of allied countries, such as the United States.