U.S.’ GPS Remains Unchallenged; EU to Take Over Galileo Satellite System

BRUSSELS, May 7, 2007 - Satnews Daily - The European Union (EU) is poised to take control of its overdue Galileo satellite navigation system from the private sector, delaying until after 2013 Europe’s challenge to the U.S.’ dominant Global Positioning System (GPS).

An EU take over of Galileo is one of three options—and the one with the strongest backing—that Transport Commissioner Jacques Barrot will present on May 16 during a crucial meeting that will decide the fate of the controversial rival to the U.S.’ GPS run by the U.S. Air Force. Other options on the table include partially financing Galileo, which is a public-private partnership, with public money or abandoning the project completely.

Sources in the European Commission, however, said Barrot will propose the EU take over Galileo and foot the bill for building the project. Turning Galileo public, however, could cost the 27-nation EU as much as $2.7 billion, this in addition to the $2 billion allocated to Galileo by the European Commission from 2007-2013.

Analysts say the move to take Galileo public betrays a growing resentment at the private sector consortium charged with creating Galileo. Organized two years ago, the consortium consisting of EADS, France's Thales and Alcatel-Lucent, British company Inmarsat, Italy's Finmeccanica, AENA and Hispasat of Spain and a German group that includes Deutsche Telekom and the German Aerospace Center has since made little progress in getting Galileo up and running.

And lately, according to Barrot, the EU has received new demands from the consortium. One EU official said the consortium wants more time, more money and more public guarantees. The new conditions guarantee that the consortium members will not meet its May 10 deadline to work out their differences and get Galileo going.

As planned, Galileo is a satellite navigation system that will consist of 30 satellites intended to be operational by 2013. A joint initiative of the EU and the European Space Agency, Galileo will be the first global navigation satellite system geared to civil-user needs offering continuity and guaranteed services. The Galileo program is being carried out in three phases: definition, development and in-orbit validation, and full deployment and operations

The complete constellation of 30 satellites will eventually offer European citizens and institutional users state-of-the-art global positioning and timing services with outstanding accuracy, availability, integrity and a guaranteed signal.

There were originally to be 30 Galileo satellites in place by 2010 but the timeline for Galileo to be fully operational was moved to 2011-2012. The EU fears that China could launch its own satnav system called Compass before Galileo is fully operational. Russia is also improving its Glonass global satellite navigation fleet and will have new spacecraft in orbit by the end of this year.

Galileo development phase received a much needed boost early this month when the in-orbit GIOVE-A (Galileo In-Orbit Validation Element) satellite, successfully transmitted its first navigation message. This message contained the information needed by user receivers to calculate their position using Galileo. GIOVE-A is the first Galileo satellite and while only a demonstration, its data is an important step along the path to a fully operational system.

Last March, the EU gave the Galileo consortium until May 10 to incorporate the Galileo operating company and appoint its chief executive officer or else it “will undertake to explore alternatives for delivering the project”.

In a letter to the companies involved in the project and to the current German presidency of the 27-member European Union, Barrot rang the alarm bell about the mounting delays in Galileo's implementation.

“I consider that the delay so far accumulated and the absence of any sign of progress on the negotiation of the concession contract must now be considered as risk for the delivery of the project in the timeline that we envisaged. Moreover, we have to fear significant cost increases which could go well beyond the foreseen budget,” Barrot said.

If the private sector is not able to reach these deadlines, Barrot expects "the Council to provide the (European) Commission with a clear political mandate to review the situation".

"I do not exclude that we may have to revisit some fundamental aspects of our earlier assumptions and approach. A number of options are available for such alternatives and I would not want to exclude any of them at this stage. My objective is to ensure excellence, value for money, affordability and avoid further delays as much as possible," Barrot added.

The companies "are just not working," said Barrot’s spokesman, while another source said the Commission will give the companies an ultimatum at a European space industry summit next week.

Negotiations to set up a consortium have been suspended as the companies involved are at loggerheads over sharing development costs, and the projects profitability, said some sources. They also have not yet established a joint head office or appointed a chief executive of the industry network.