Repurposing Soviet-era ballistic missiles to serve as small-satellite launchers is turning out to be more costly than expected, leaving an opening for players in Europe and elsewhere to field vehicles that could take up the slack.

For months, Russia and Ukraine have been at odds over who should pay to convert and operate the Dnepr rocket, and how to divide revenue from the sale of launch services within ISC Kosmotras, which markets the former SS-18 Satan ICBM. In the meantime, with the promise of cheap, plentiful Russian and Ukrainian rockets slipping away, others are looking to capitalize on the burgeoning smallsat market.

The mostly Italian-built Vega light launcher debuted in February with a near-flawless maiden launch from the Guiana Space Center in Kourou, giving the Arianespace consortium that manages it a leg up in the small-satellite market. Priced at $40 million per mission, the Vega rocket—Europe's first all-new launch vehicle development in more than 20 years—is a bit pricey for smallsat operators. Vega managers say the next challenge is to increase the launch rate to four from one per year to reduce per-launch prices and capture what they say is a booming market for small spacecraft.

“Vega addresses a segment of the market which is rapidly growing, and the main segment of this market is Earth-observation,” says Louis Laurent, director of programs for Arianespace. “Internally, we are working on at least 10 different missions for Vega, which is an indication of the interest the market has for this launch vehicle.”

This is a very important "market."  To read more, click here.