China’s decision to expand the
functionality of its satellite navigation
network could undermine the economics
of Europe’s nascent Galileo system,
according to sources close to the project.
Until now, experts believed that China’s
“Beidou” navigation system – a 35-
satellite constellation – would only be
used by its armed forces. This explained
China’s decision to invest €200 million in
Europe’s €2.5 billion Galileo programme.
But things appear to have changed in
Beijing. On 2 November, the country’s
official news agency Xinhua reported that
Beidou would, from 2008, begin providing
an “open” level of service, with 10-metre
accuracy, in addition to its “authorised”,
encrypted military service. Precisely
how open this 10-metre service will be,
remains unclear, but the Xinhua report
implied that it would be available free to
all Chinese citizens and to other countries
whose governments strike a deal to use
the signal in satellite navigation devices.
If this is true, it could be a big problem for
the Galileo consortium, which had hoped
to recoup part of its €2.5 billion investment
in Galileo by selling receivers and
commercial signal subscriptions in China.
It is not clear whether there are sufficient
frequencies for Beidou to be used globally.
But new agreements may be needed to
ensure receivers are compatible with
all three navigation standards: Galileo,
the US-run Global Positioning System,
and Beidou. Officially, however, the
European Commission (EC) says it does
not expect China’s plan to impact on
Galileo.
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