Market and policy drivers for the development of navigation services in the GALILEO era

Jonathan Styles, Nina Costa, Bryan Jenkins and Vincent Gabaglio

Abstract:	The paper charts the development of some of the major markets for satellite navigation products and services using the latest data from the GALILEO Market Observatory (GMO), led by ESYS plc, part of the EC funded GALILEI project. It examines the relationship between technology, market and policy drivers in market development. The GMO is one of many projects that are currently being undertaken in preparation for the development and launch of Europe’s civilian satellite navigation system. With its precursor study, ‘GALA’, GMO represents one of the most comprehensive and detailed market analyses of satellite navigation ever performed. In the specific market for Location Based Services (LBS) delivered via mobile phones an analysis of the technology choices for positioning was undertaken. In Europe, the technology choice for location of mobile phones is not being driven by the regulation concerning emergency calls (E-112 in Europe) as is the case for the E-911 calls in the USA, but rather by the commercial requirements for LBS. Phone manufacturers are pre-empting the market by announcing their plans for GPS integrated GSM devices (driven by developments in the US), while telecoms service providers are reluctant to make any immediate costly investments in infrastructure upgrades and are, in the short term, basing their services on cell- ID. In transport network management, Europe faces serious road congestion problems and many countries are planning to alleviate this by introducing road charging schemes. Following from announcements of plans to introduced distance based charging for goods vehicles in Germany and Austria, The Netherlands revealed plans (subsequently cancelled) to tax all vehicles according to the distance travelled instead of the current flat-rate annual road tax. The Dutch authorities foresaw the use of a GNSS based system and hoped that the terminal price would be made affordable by allowing telematics services to piggy-back on the obligatory in-car receiver and 2 way communication terminal. This study examines the extent to which road charging initiatives may drive the extent and timing of the uptake of GNSS-based telematics/route guidance services. In the urban vehicle and pedestrian guidance market, it is foreseen that the combined use of GPS and GALILEO will offer users a significant improvement in signal availability, especially in urban areas. As a consequence, the current thinking is that the vast majority of future GNSS receivers will be combined GPS and GALILEO receivers since the large benefits gained by combined use of both systems will easily outweigh any cost penalty in producing a dual constellation receiver. Under this assumption it follows that any market situation that favours the use of GPS will ultimately favour the uptake of GALILEO.
Published in:	Proceedings of the 15th International Technical Meeting of the Satellite Division of The Institute of Navigation (ION GPS 2002) September 24 - 27, 2002 Oregon Convention Center Portland, OR
Pages:	258 - 265
Cite this article:	Styles, Jonathan, Costa, Nina, Jenkins, Bryan, Gabaglio, Vincent, "Market and policy drivers for the development of navigation services in the GALILEO era," Proceedings of the 15th International Technical Meeting of the Satellite Division of The Institute of Navigation (ION GPS 2002), Portland, OR, September 2002, pp. 258-265.
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