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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

GPS-Galileo Negotiations:Commercial Issues at Stake

Briefing to ISAC-1April 25, 2002


Office of Space & Advanced TechnologyDepartment of State


Office of Space CommercializationDepartment of Commerce


Office of International Communications & Information PolicyDepartment of State

early consultations with europe
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
official u s position on galileo
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
u s principles for cooperation
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
u s approach toward cooperation
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
u s goals for cooperation
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
status of negotiations
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
key provisions of u s proposed agreement
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
unanswered questions about galileo
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?
additional questions
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?
issues under consideration interoperability
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
issues under consideration access to galileo specifications
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
issues under consideration access to markets
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
point of contact for u s industry
Point of Contact for U.S. Industry

Jason Y. KimSenior Policy AnalystOffice of Space CommercializationU.S. Department of 482-5827