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GPS-Galileo Negotiations: Commercial Issues at Stake. Briefing to ISAC-1 April 25, 2002. RALPH BRAIBANTI Office of Space & Advanced Technology Department of State. JASON Y. KIM Office of Space Commercialization Department of Commerce. DAMON WELLS

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GPS-Galileo Negotiations: Commercial Issues at Stake

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GPS-Galileo Negotiations:Commercial Issues at Stake

Briefing to ISAC-1April 25, 2002

RALPH BRAIBANTI

Office of Space & Advanced TechnologyDepartment of State

JASON Y. KIM

Office of Space CommercializationDepartment of Commerce

DAMON WELLS

Office of International Communications & Information PolicyDepartment of State


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Early Consultations with Europe

  • U.S. initially pursued cooperation based on EGNOS interoperability and European use of GPS

  • May 1998: U.S. offered draft agreement

  • As European interest in an independent system grew, U.S. suggested that they field a subconstellation that would be fully interoperable with GPS

  • November 1998: U.S. outlined basic principles for cooperation

  • January 1999: Europe announced Galileo project


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Official U.S. Position on Galileo

  • Modernized GPS service will be sufficient to meet user needs worldwide

  • If Galileo does proceed, the U.S. could see benefits if it is designed to be truly interoperable with GPS

  • U.S. is waiting to see what path Galileo takes -- many open questions remain unanswered

  • Basic U.S. position has not changed since first articulated in 1999


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U.S. Principles for Cooperation

  • Seamless interoperability with GPS

  • No direct user fees for safety critical services

  • Open market access (non-discrimination)

    • Equal access to signal specifications

    • Equal access to user markets (free trade)

    • Market driven competition

    • Free choice for end users

  • Spectrum protection

  • Protection of national security interests


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U.S. Approach Toward Cooperation

  • Phased approach to reflect growing complexity of GPS-Galileo interaction over time

    • Phase 1: Framework agreement outlining overarching principles for cooperation during Galileo development

    • Phase 2: Establishment of working groups

    • Phase 3: Follow-on agreement addressing longer-term issues and operational interactions once Galileo goes online

  • Current U.S. stance: must have framework agreement in place before technical discussions


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U.S. Goals for Cooperation

  • Protect interests and investments of GPS user base

    • No degradation of GPS service

    • No user fees

    • Freedom of choice for end users

    • Lower costs through free market competition

    • Interoperability and backwards compatibility

    • No constraint on future GPS evolution

  • Protect national security interests

    • DoD/NATO denial capabilities

    • No overlay of M-Code

    • Control technology transfer and proliferation

    • Move any discussion of military Galileo to NATO

  • Ensure level playing field for commerce

  • Maximize benefits of combined GPS-Galileo service


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Status of Negotiations

  • U.S.-E.C. talks have proceeded in fits and starts

  • Meanwhile, U.S. has engaged in extensive outreach with E.C. member states (bilateral, multilateral)

  • October 2000: U.S. submitted new agreement text

    • September 2000: Briefing to industry

  • May 2001: E.C. submitted counterproposal

  • October 2001: Latest round of talks

    • First substantive presentation of currently proposed Galileo spectrum plan

    • U.S. responded with high-level letters and demarche

  • March 2002: Galileo funding approved

  • Next U.S.-E.C. meeting: June 2002


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Key Provisions of U.S. Proposed Agreement

  • Embodies GPS policy and principles for cooperation

    • Interoperability, spectrum protection, open signal structures, free signals, market competition, security issues

  • Recognizes efforts of other fora: ICAO, IMO, ITU

  • Encourages cooperation on a single, unencrypted safety-of-life service

  • Ensures free trade in satnav goods and services

  • Ensures open access to specifications

  • Requires consultations before introducing any new standard/regulation concerning satellite navigation

  • Prohibits overlay of military GPS bands

  • Lays foundation for future cooperation


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Unanswered Questions about Galileo

  • How viable is the business case?

  • Will European governments help generate revenue streams through regulations and standards that effectively mandate use of Galileo?

  • Will Galileo signals interfere with GPS?

  • Will the information needed for receiver production be made equally available to all manufacturers?

  • Will Galileo take on a strategic military role?

  • How will Europe prevent hostile misuse of Galileo?


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Additional Questions

  • Will the encrypted levels of service be truly interoperable with the free, safety-of-life services?

  • As EGNOS becomes integrated into Galileo, will it continue to provide GPS data vital to aviation?

  • How will Europe protect the sensitive encryption technology used?


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Issues Under Consideration: Interoperability

  • Galileo spectrum plan proposes overlay of L1, L5

  • Potential benefits to pursuing similar frequencies for GPS and Galileo:

    • Simplified receiver design (use same antenna, circuitry), leading to lower costs for producers and consumers

    • Possible backwards compatibility for some GPS hardware?

    • Simplified denial scenario for DoD/NATO

  • Potential drawbacks:

    • Some degradation of service for GPS-only users

    • May be problematic for spaceborne users that see many satellites at once (e.g., International Space Station)

    • Any proposed overlay of M-Code is totally unacceptable

  • U.S. has been studying options for many months


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Issues Under Consideration: Access to Galileo Specifications

  • Galileo intends to offer two types of services -- open access and controlled access (via encryption)

  • U.S. is asking Europe to openly publish all documentation for access to Galileo open service, just as is done for GPS Standard Positioning Service

  • U.S. also wants Europe to provide equal access to the specifications for controlled access services

    • Encryption algorithms should be openly published

    • Crypto key regime should not exclude non-Europeans

    • Any licensing arrangements and fees should not discriminate against non-European firms


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Issues Under Consideration: Access to Markets

  • U.S. is essentially seeking national treatment and MFN-like obligations from Europe in the satellite navigation area

    • No tariffs, no other discriminatory barriers to trade

    • Agreement explicitly seeks to go beyond current WTO provisions and obligations, which in many respects do not seem to apply in this area

  • U.S. is especially concerned that Europe may impose standards or regulations that effectively mandate use of Galileo within Europe

    • Any new standards should be technology neutral, allowing freedom of choice among users

    • Agreement must be binding not only to the E.C. but all member states and instrumentalities (e.g., Eurocontrol)

    • Text specifies that GPS shall automatically meet any European standard for satellite navigation services


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Point of Contact for U.S. Industry

Jason Y. KimSenior Policy AnalystOffice of Space CommercializationU.S. Department of [email protected](202) 482-5827


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