The Global Positioning System A Worldwide Information Utility November/December 2000

Overview PolicyPolicy Applications & MarketsApplications & Markets AugmentationsAugmentations Sustainment & ModernizationSustainment & Modernization International CooperationInternational Cooperation

PolicyPolicy

GPS is a Dual-Use System Cold War spinoffCold War spinoff –Developed in 1970s-1980s to support Allied forces –Prominent in Gulf War, Kosovo –After KAL-007, civilians gained free access to Standard Positioning Service Commercial use now dwarfs military useCommercial use now dwarfs military use GPS policy is managed at a national level by the Interagency GPS Executive Board (IGEB)GPS policy is managed at a national level by the Interagency GPS Executive Board (IGEB)

Agriculture Commerce State Interior NASA Justice Joint Chiefs of Staff DefenseTransportation Interagency GPS Executive Board

United States GPS Policy Presidential Decision Directive signed in 1996, endorsed by Congress in 1998Presidential Decision Directive signed in 1996, endorsed by Congress in 1998 GPS Standard Positioning Service to remain free of direct user feesGPS Standard Positioning Service to remain free of direct user fees U.S. to promote acceptance and use of GPS as a world standardU.S. to promote acceptance and use of GPS as a world standard Selective Availability -- ended May 2000Selective Availability -- ended May 2000 IGEB to manage GPS as a national assetIGEB to manage GPS as a national asset

United States GPS Policy, cont’d. Encourage private sector investment in/use of GPS technologies and servicesEncourage private sector investment in/use of GPS technologies and services Promote safety and efficiency in transportation and other fieldsPromote safety and efficiency in transportation and other fields Promote international cooperation in using GPS for peaceful purposesPromote international cooperation in using GPS for peaceful purposes Advance scientific and technical capabilitiesAdvance scientific and technical capabilities Strengthen and maintain national securityStrengthen and maintain national security

Applications & Markets

Worldwide Sales of GPS Goods & Services Will Reach $16B by 2003

Worldwide GPS Revenues By Market Segment

Car Navigation On-board navigationOn-board navigation Fleet managementFleet management Roadside assistanceRoadside assistance Stolen vehicle recoveryStolen vehicle recovery Enhanced servicesEnhanced services Mass market dominated by JapanMass market dominated by Japan Dataquest: Unit sales of chips for car navigation to reach 11.3M in 2001Dataquest: Unit sales of chips for car navigation to reach 11.3M in 2001 $4.7B sales by 2003$4.7B sales by 2003

Consumer/Recreational Portable receivers for fishermen, hunters, hikers, cyclists, etc.Portable receivers for fishermen, hunters, hikers, cyclists, etc. Recreational facilities -- golf courses, ski resortsRecreational facilities -- golf courses, ski resorts Integration of GPS into cellular phonesIntegration of GPS into cellular phones –E-911 requirement $3.8B market by 2003$3.8B market by 2003

Surveying/Mapping/GIS Sub-centimeter accuracySub-centimeter accuracy 100%-300% savings in time, cost, & labor100%-300% savings in time, cost, & labor –Control survey point: $10,000 in 1986; $250 in 1997 Rural electrificationRural electrification Telecom tower placementTelecom tower placement PipelinesPipelines Oil, gas, and mineral explorationOil, gas, and mineral exploration Flood plain mappingFlood plain mapping $3.12B market by 2003$3.12B market by 2003 Electricidade de Portugal Group uses GPS to survey the border of the Alqueva dam

Tracking/Machine Control Package/cargo deliveryPackage/cargo delivery Fleet and asset managementFleet and asset management Theft recoveryTheft recovery Public safety and servicesPublic safety and services Farming, mining, and construction equipmentFarming, mining, and construction equipment DGPS/RTK required for many applicationsDGPS/RTK required for many applications $3B market by 2003$3B market by 2003 GRUPISA (Madrid) FGC (Barcelona)

Public Services City planningCity planning Transportation infrastructureTransportation infrastructure –Road Billing Network (ROBIN) –Snowplows Emergency responseEmergency response –Law enforcement –Fire fighting –Search and rescue –Paramedics –Disaster relief

Aviation GPS approved for en-route navigationGPS approved for en-route navigation More efficient flight routing leads to fuel savingsMore efficient flight routing leads to fuel savings Better tracking of aircraft enhances safetyBetter tracking of aircraft enhances safety Closer spacing of planes increases airspace capacityCloser spacing of planes increases airspace capacity $710M market by 2003$710M market by 2003

Maritime Navigation GPS-based vessel tracking and traffic management maximizes effectiveness of waterwaysGPS-based vessel tracking and traffic management maximizes effectiveness of waterways Improved safety increases maritime commerceImproved safety increases maritime commerce Maritime DGPS service for enhanced accuracy and safety available in 34 countriesMaritime DGPS service for enhanced accuracy and safety available in 34 countries $210M market by 2003$210M market by 2003

Original Equipment Manufacturers ChipsetsChipsets Electronic boardsElectronic boards Antennas, componentsAntennas, components Standalone receiversStandalone receivers $690M market by 2003$690M market by 2003

Military GPS is a recognized NATO standardGPS is a recognized NATO standard GPS is required on all U.S. military systemsGPS is required on all U.S. military systems Precision munitions widely used during Gulf War, KosovoPrecision munitions widely used during Gulf War, Kosovo

Timing GPS offers an inexpensive alternative to costly, high maintenance timing equipmentGPS offers an inexpensive alternative to costly, high maintenance timing equipment Telecommunications network synchronization & managementTelecommunications network synchronization & management –Phones, pagers, wireless systems –LANs, WANs, Internet Financial transactionsFinancial transactions Electrical power grid management & fault locationElectrical power grid management & fault location Digital signatures for e-commerceDigital signatures for e-commerce Some estimate the timing market at $40-100MSome estimate the timing market at $40-100M

Scientific Research Monitoring geological changeMonitoring geological change –Glaciers, tectonic plates, earthquakes, volcanoes Wildlife behaviorWildlife behavior Atmospheric modelingAtmospheric modeling –Water vapor content Oceanic studiesOceanic studies –Tidal patterns –Surface mapping Time transferTime transfer

Environmental Management ForestryForestry Wetlands managementWetlands management Natural resource managementNatural resource management Fisheries boundary enforcementFisheries boundary enforcement Endangered species and habitat preservationEndangered species and habitat preservation Hazardous material cleanupHazardous material cleanup –Oil spills, toxic waste

Emerging GPS Applications Entrepreneurs and scientific researchers invent new applications almost every dayEntrepreneurs and scientific researchers invent new applications almost every day Higher precision is necessary for many cutting-edge applicationsHigher precision is necessary for many cutting-edge applications –Differential GPS (DGPS) –Relative DGPS –Carrier phase positioning –Real-Time Kinematic (RTK) –Post-processing

Precision Agriculture Maximize use of resourcesMaximize use of resources –Optimized plowing of crop rows –Tailored applications of seeds, fertilizer, water, pesticides –Improved management of land, machinery, personnel, time –Greater crop yields –Net benefit: $5-14 per acre Minimize environmental impactsMinimize environmental impacts –Localized identification and treatment of distressed crops reduces chemical use –Precise leveling of fields prevents fluid runoff

Open Pit Mining Enhanced management of assets, equipmentEnhanced management of assets, equipment Progress tracked in real-time, remotelyProgress tracked in real-time, remotely Improved machine control saves time, lowers maintenance and fuel consumption, prevents accidentsImproved machine control saves time, lowers maintenance and fuel consumption, prevents accidents Rapid surveying for drilling blast holesRapid surveying for drilling blast holes Smaller, more empowered workforceSmaller, more empowered workforce

Space Applications Improved orbit and attitude control for spacecraftImproved orbit and attitude control for spacecraft –International Space Station –Crew return vehicle –PoSat-1 microsatellite Advance Land Observing Satellite uses GPS to calibrate high resolution radar mapsAdvance Land Observing Satellite uses GPS to calibrate high resolution radar maps Satellite formation flyingSatellite formation flying Space launch range safetySpace launch range safety

Construction Machinery, asset, and personnel managementMachinery, asset, and personnel management Rapid surveys for laying foundation piles, etc.Rapid surveys for laying foundation piles, etc. Accident preventionAccident prevention Remote control of machinery possibleRemote control of machinery possible –Japanese volcano dam

Europe is a Major Player in the GPS Market Rapid growth projected, especially in car navigation sectorRapid growth projected, especially in car navigation sector Many European firms provide GPS goods and servicesMany European firms provide GPS goods and services –45 identified by Booz-Allen Hamilton European governments are investing in GPS augmentation and reference systemsEuropean governments are investing in GPS augmentation and reference systems –Maritime DGPS –EGNOS –EUREF Permanent Network

The Market is Wide Open Civil signals are freely available, right nowCivil signals are freely available, right now Openly published GPS specifications allow anyone to build receivers (no licensing fees)Openly published GPS specifications allow anyone to build receivers (no licensing fees) Hardware is becoming a commodityHardware is becoming a commodity Huge potential exists in value-added servicesHuge potential exists in value-added services –Software development –Embedded applications –Localized GIS databases –Internet integration –Wireless markets

Unit Cost of Receivers Is Falling At ~30% Per Year 0 $200 $400 $600 $ Source: U.S. GPS Industry Council

Projected Relative Market Share

AugmentationsAugmentations

Sustainment & Modernization

International Cooperation

Promote acceptance and peaceful use of GPS and its augmentationsPromote acceptance and peaceful use of GPS and its augmentations –International offering of GPS to ICAO and IMO Service free of direct user chargesService free of direct user charges Non-proprietary signal standards for civil servicesNon-proprietary signal standards for civil services –GPS Augmentations -- Worldwide interoperability Space-based systems (WAAS, MSAS, EGNOS) for aviationSpace-based systems (WAAS, MSAS, EGNOS) for aviation Land-based DGPS technology for maritime and terrestrial uses: already adopted by 35 countriesLand-based DGPS technology for maritime and terrestrial uses: already adopted by 35 countries Global, non-proprietary standardsGlobal, non-proprietary standards

Principles for Cooperation No direct user fees for civil and public safety servicesNo direct user fees for civil and public safety services Ensure open market driven competition for user equipment and applicationsEnsure open market driven competition for user equipment and applications Open signal structure for all civil services to promote equal access for applications development and value added servicesOpen signal structure for all civil services to promote equal access for applications development and value added services Protection of the current radionavigation spectrum from disruption and interferenceProtection of the current radionavigation spectrum from disruption and interference Use of GPS time, geodesy, and signal structure standardsUse of GPS time, geodesy, and signal structure standards Seamless, global interoperability of future systems with GPSSeamless, global interoperability of future systems with GPS Recognition of national and international security issues and protecting against misuseRecognition of national and international security issues and protecting against misuse

U.S. - Japan Cooperation September 1998: Joint Statement signedSeptember 1998: Joint Statement signed GPS based augmentationsGPS based augmentations Largest commercial market share for products and servicesLargest commercial market share for products and services September 1999: Working Groups met in Washington, D.C.September 1999: Working Groups met in Washington, D.C. –Policy –Transportation –Commercial & Scientific Next plenary session in TokyoNext plenary session in Tokyo

U.S. - Russia Consultation May 19 in Washington, D.C.May 19 in Washington, D.C. Excellent dialogueExcellent dialogue –Many common views –Principles of Cooperation Next meeting in Fall 2000 in MoscowNext meeting in Fall 2000 in Moscow

U.S. - E.U. Consultations Use of GPS and its augmentations for commercial products and services incorporating open signal structureUse of GPS and its augmentations for commercial products and services incorporating open signal structure 1998: U.S. presented draft Framework Agreement based on GPS and its augmentations1998: U.S. presented draft Framework Agreement based on GPS and its augmentations –Consider inclusion of: International Advisory Commission, Intent of Guarantee, Statement of Free Service 2000: Cooperation concept2000: Cooperation concept –Stage 1: Framework Cooperative Agreement based on Principles of Cooperation –Stage 2: Working groups –Stage 3: Follow-on agreement to cover Galileo operations phase

U.S. - E.U. Draft Agreement Presented to the Commission on October 5Presented to the Commission on October 5 Embodies GPS Policy & Principles of CooperationEmbodies GPS Policy & Principles of Cooperation –Government provided satellite signals free of user fees –Interoperability with GPS –Open signals for critical infrastructure and safety-of-life services –Open specifications and markets for civil equipment and services –Users choose which system or combination best meet their needs Recognizes efforts of other fora: ICAO, IMO, ITURecognizes efforts of other fora: ICAO, IMO, ITU Accounts for different levels of system maturityAccounts for different levels of system maturity Lays foundation for future cooperationLays foundation for future cooperation

U.S. Questions About Galileo To be understood:To be understood: –Revenue stream generation –Future regulatory actions –Required use (mandate through standards) –Interoperability of free open system with fee-based encrypted system Safety of life applicationsSafety of life applications –Prevention of misuse –Open specifications and standards for equal worldwide market access –Spectrum use –Security service

Summary GPS is a key component of the global information infrastructureGPS is a key component of the global information infrastructure U.S. is committed to providing GPS service free of direct user fees to users worldwideU.S. is committed to providing GPS service free of direct user fees to users worldwide Adherence to U.S. principles has led to GPS standardization and market growthAdherence to U.S. principles has led to GPS standardization and market growth GPS modernization is under wayGPS modernization is under way U.S. is continuing international outreach to further understanding of GPS, its augmentations, and its applicationsU.S. is continuing international outreach to further understanding of GPS, its augmentations, and its applications U.S. is fostering international dialogue to be responsive to global user needsU.S. is fostering international dialogue to be responsive to global user needs