FROM THE EDITOR

The Will to Position

glennOver the course of the next year, Europe will show the world what it has to offer -- and what it can deliver -- in the realm of satellite-based navigation, positioning, and timing. And it will have to do so in the historical context of the United States's Global Positioning System (GPS) that has been operating for more than 20 years.



The European initiative will be reflected most prominently in the definition phase of the Galileo programme led by the European Commission (EC) and the European Space Agency (ESA). During that phase, the two groups will expend at least $80 million to establish the organisational framework, system technical design, and economic justification for proceeding with a full-fledged European contribution to the Global Navigation Satellite System (GNSS). But Europe's GNSS capability and capacity will also be manifested by progress on its GNSS augmentation system the European Geostationary Navigation Overlay Service (EGNOS), by European industry's investment in developing GNSS-based products and services, and by the European public's willingness to avail itself of those.

Compared to the United States and Japan, European businesses' and consumers' embrace of GNSS has been lukewarm so far. Drawing on two recent studies, researchers estimate a $6 billion global market for GPS products in 1999, with less than $400 million coming from Europe. The level of economic activity may reveal reluctance to adopt a national military-operated system outside their governments' control, uncertainty regarding Europe's own GNSS plans, or merely limited interest in GNSS applications. But most researchers predict that this will change soon, and the enticement of Galileo, which could cost as much as $3 billion to build, would almost certainly hasten the process.

The GNSS program has already benefited Europe by forcing compromise and forging unity in the context of evaluating, planning, and funding a real-world system. In comments before EGNOS flight trials near Paris earlier this year, Jean-Eric Paquet, the top-ranking assistant to the EC's transport director-general, observ-ed, "EGNOS . . . has facilitated the creation of a political and technical framework for satellite navigation and 'enabled' Euro-pean industry to play a full role in future emerging satellite navigation and positioning markets." With Galileo, Europe is on the threshold of materialising a practical, far-reaching utility out of the abstraction of GNSS. It provides a leading example of a technological program stimulating the process of European integration, a role comparable to that of the adoption of the euro in the economic realm.

Some sceptics have scoffed that Europe's GNSS activities during the past five years have only proved again what the Americans have demonstrated for 25 years -- the viability of middle earth orbits, the efficacy of L-band frequencies and Gold code CDMA signal structure, and the need to preserve scarce radio spectrum for navigation/positioning services. Maybe so. But those years of serious, substantive effort have also built a cadre of engineers and political leaders whose knowledge of the technical and institutional issues is current, forward-looking, and unfettered by a quarter century of business as usual in the heretofore successful Global Positioning System.

The GNSS effort so far has also drawn together the collective political will of 17 disparate nations (including two non-EU members of ESA) and identified funding for more than half of the estimated costs to implement Galileo fully by 2008. That compares favourably to the recent failure of the U.S. government to secure $17 million in its fiscal year 2000 budget as the first instalment for a long-overdue modernisation of the civil GPS service. It will be interesting to see if the European Parliament, which gains expanded authority this year in approving EC budgets, will show more foresight than their American counterparts.

One key decision that the European Union and ESA will face in the coming year is whether private industry must buy into the program development during the implementation phase, taking on risks of sizeable investments in return for service and management fees. Revenue-driven service opportunities may indeed appear during the definition phase, which could attract a company or, more likely, a consortium of companies to make a commitment to the public-private partnership desired by the EU and ESA. But if they do not, Galileo's political leaders should continue to pursue other options in making the business case for the programme. The additional applications and markets that would be created by an independent, modern European GNSS would almost certainly generate additional taxable revenues many times larger than the public investment required to put Galileo in place.

If the experience with GPS is any guide, the benefits of a full European contribution to GNSS will prove immeasurably large, first to users and manufacturers in Europe and more generally to the same constituencies throughout the world. By the end of 2000, Europe should have discovered whether it has the technical and financial resources, the business acumen, and the political will to capture those benefits with Galileo.

Glen Gibbons Editor

 

 
 
 

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