Plans for European GPS break down
By Andrew Bounds in Brussels
Plans to launch a European satellite navigation system to rival the US global positioning system have ground to a halt following a break down in relations between governments and private contractors.
Jacques Barrot, the transport commissioner, said on Wednesday he was writing to the eight companies building the Galileo system to discover the reason for more than a year’s delay. “They are just not working,” said his spokesman.
Allegations that Spain isblocking progress until it is guaranteed more jobs and work by the multinational consortium led one critic to brand the project “Airbus in space”. Spain said its companies were merely insisting that the consortium respect a 2005 commitment on the division of work.
EU governments fear that China could launch a competitor before Galileo is airborne. Governments will confront contractors representing the cream of European space industry at a meeting next week. “We will give the companies an ultimatum,” said a French diplomat. “But what will happen if that does not work?”
Industry sources said they doubted work would restart until there was a guarantee it could win business from GPS, the free American military system that sparked the huge market in car navigation devices.
“There is a doubt over the revenues,” said one. “Why sell Pepsi-cola when you can get Coca-Cola free?”
He suggested that governments would have to guarantee that emergency services such as fire and ambulance would pay to use the public signal.
The consortium includes European aerospace company EADS, France’s Thales and Alcatel-Lucent, the UK’s Inmarsat, Italy’s Finmeccanica, AENA and Hispasat of Spain, and a German group led by Deutsche Telekom.
They are balking at sharing development costs, which have doubled from €1bn to €2bn. Relations between them are so bad they have yet to establish a joint head office or appoint a chief executive. The consortium’s spokesman was unavailable for comment on Wednesday.
“In the light of these latest revelations it is looking increasingly like an Airbus in space,” said Gerard Batten, an MEP from the UK Independence party. He said taxpayers would be forced to bail out Galileo and pay for mandatory services such as road pricing to cover its costs.
Spain said its companies were merely insisting that the consortium respect a 2005 commitment on the division of work.
Last week the EU agency running the project had to launch a second satellite to prevent the loss of the crucial public frequency after technical problems aborted an early launch.
There were originally to be 30 satellites in place by 2010 but Mr Barrot’s spokesman said the system would not be operational until 2011, and the timetable was slipping by the day. China recently said its Beidou system would cover China and its neighbours by 2008, and then the rest of the world.
Galileo will be used to monitor natural disasters, in air and sea rescue services and for a range of commercial uses, including possibly road safety and pricing. Satellite services were worth €60bn in 2005 and growing at 25 per cent a year, said the Commission, which is looking for ideas to commercialise it. The developing companies will have a 20 year concession to run it.
Plans to launch a European satellite navigation system to rival the US global positioning system have ground to a halt following a break down in relations between governments and private contractors.
Jacques Barrot, the transport commissioner, said on Wednesday he was writing to the eight companies building the Galileo system to discover the reason for more than a year’s delay. “They are just not working,” said his spokesman.
Allegations that Spain isblocking progress until it is guaranteed more jobs and work by the multinational consortium led one critic to brand the project “Airbus in space”. Spain said its companies were merely insisting that the consortium respect a 2005 commitment on the division of work.
EU governments fear that China could launch a competitor before Galileo is airborne. Governments will confront contractors representing the cream of European space industry at a meeting next week. “We will give the companies an ultimatum,” said a French diplomat. “But what will happen if that does not work?”
Industry sources said they doubted work would restart until there was a guarantee it could win business from GPS, the free American military system that sparked the huge market in car navigation devices.
“There is a doubt over the revenues,” said one. “Why sell Pepsi-cola when you can get Coca-Cola free?”
He suggested that governments would have to guarantee that emergency services such as fire and ambulance would pay to use the public signal.
The consortium includes European aerospace company EADS, France’s Thales and Alcatel-Lucent, the UK’s Inmarsat, Italy’s Finmeccanica, AENA and Hispasat of Spain, and a German group led by Deutsche Telekom.
They are balking at sharing development costs, which have doubled from €1bn to €2bn. Relations between them are so bad they have yet to establish a joint head office or appoint a chief executive. The consortium’s spokesman was unavailable for comment on Wednesday.
“In the light of these latest revelations it is looking increasingly like an Airbus in space,” said Gerard Batten, an MEP from the UK Independence party. He said taxpayers would be forced to bail out Galileo and pay for mandatory services such as road pricing to cover its costs.
Spain said its companies were merely insisting that the consortium respect a 2005 commitment on the division of work.
Last week the EU agency running the project had to launch a second satellite to prevent the loss of the crucial public frequency after technical problems aborted an early launch.
There were originally to be 30 satellites in place by 2010 but Mr Barrot’s spokesman said the system would not be operational until 2011, and the timetable was slipping by the day. China recently said its Beidou system would cover China and its neighbours by 2008, and then the rest of the world.
Galileo will be used to monitor natural disasters, in air and sea rescue services and for a range of commercial uses, including possibly road safety and pricing. Satellite services were worth €60bn in 2005 and growing at 25 per cent a year, said the Commission, which is looking for ideas to commercialise it. The developing companies will have a 20 year concession to run it.
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