1. 1 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 EGNOS and Galileo Pedro Pedreira Executive Director European GNSS Supervisory Authority Galileo/EGNOS applications and services – the way forward EPP-ED Group Hearing, European Parliament, Brussels 12 June 2008 Fostering the economic and social benefits of

2. 2 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 5 truths of Galileo/EGNOS applications 1. A huge – mostly untapped – opportunity. 2. This potential will not be reached all by itself: proactive action is needed and the clock is ticking. 3. Concession was supposed to develop the market: now Commission must fill the gap. 4. Need the right tools: specialised skills, know-how, resources, focus, results. 5. EGNOS is NOW, better not wait for a second chance.

3. 3 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Satellite navigation is booming Forecasts personal navigation devices sold 2011 Millions per year Forecasts GNSS enabled mobile phones sold 2011 Millions per year Note: graphs have been extrapolated based on published data from sources, colours refer to different sources Sources: Berg Insight, iSuppli, in-stat 18% 41% 27% 25% CAGR

4. 4 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Source: L.E.K. analysis b Galileo and EGNOS will create additional benefit for Europe 4.1 11.0 3.1 62.8 44.6 Estimated incremental benefit for Europe stemming from the introduction of Galileo and EGNOS, over the period 2008- 2030 Impact on employment ~1,400~20,800~22,200

5. 5 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 To reap the benefit, two action lines need to be followed Increasing market orientation Create value and project Europes image through the European GNSS programme Build and operate the system in an effective way Exploit GNSS systems, maximising direct benefits and externalities Supply: Ensure competiti- veness and promote innovation Demand: Stimulate usage to reap economic and social benefits Align design with demand and ensure usability Ensure delivery in- time, in- spec, with minimum cost Promote standardisation Stimulate downstream industry (receivers, applications) Ensure competitiveness of the system Competitive procurement Effective project management Specs compatible with basic requirements, budget and schedule Create awareness and sympathy Ensure fair pricing and quality of services Ensure adequate regulatory framework Demonstrate benefits and reliability Cooperate to accelerate uptake beyond Europe Ensure system usage through security accreditation Ensure system consistency with user needs Demonstrate compliance through certification Set up operational and commercial structures Galileos success drivers Developing Demand and Supply Ensuring Full Operational Capability in time

6. 6 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Coordination of the value chain is necessary Development of Services and Applications Deployment of the Systems PNT service providers Content & applications providers Device suppliers Platform & receivers suppliers Chipset suppliers GNSS Signal Providers Communic. & other complem. services Satellite operators Space infrastructure operators Launch services Satellites & ground equip. suppliers A key factor of coordination of the value chain is a reliable deployment schedule

7. 7 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Developing Demand and Supply Assessing the potential and maturity of market segments and supporting development accordingly Putting in place regulatory enablers (e.g., certification, standardisation, regulations) Looking out for market distortions (e.g., market dominance, shortfalls) Motivating and supporting initiatives that pursue promising business models Demonstrating the differentiators and benefits of EGNOS Preparing the commercialisation of the signals in space

8. 8 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Public Utility (impact on public benefits) Segment attractiveness (size, growth) o Road Pricing o LBS social o LBS innovation o Aviation commercial o Maritime o Rail o Timing o Security Low Medium High Low o Road Congestion o Road VAS o Road Fleet management o Aviation general o Aviation airports o Surveying MediumHigh o Road Emergency/ Security Assessing the potential and maturity of market segments

9. 9 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Supporting market enablers A. LBS Market context and obstacle s B. Analysis of enabler s and stakehol ders C. Assess GSA levers and define strategy D. Targete d action plan E. EU- wide promoti on F. Results and actions monitori ng AnalysisImplementation II. Unproven business model Application trials to demonstrate business potential 3 Regulatory push to implement accurate location e112 4 I. Poor (indoor) positioning performance Development of hybrid technologies 1 Introduction of EGNOS and Galileo 2 III. Stringent mobile phone cost and form factor requirements Ensure availability of cheap GNSS enabled mobile phones 5 Stimulate competition among tier-1 GNSS mobile phone manufacturers 6 IV. Lack of content and difficulties with integration Standardise content formats, interfaces and processes 7 Accelerate content availability 8

10. 10 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 LBS : applications that demonstrate market potential for LBS services and maturity of technology Road : road tolling and other GNSS-based applications SMEs : stimulate innovation, networking and co-operation among SMEs, demonstrate the benefits of EGNOS and Galileo. EGNOS in aviation: accelerate adoption of EGNOS in regional airlines, general aviation, helicopters and ground operations International : promote Galileo beyond the EU borders and create new opportunities for industry Mass market receivers : develop core receiver technologies for Galileo/EGNOS Motivating new entrants and promising business models

11. 11 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Promoting EGNOS CDDS Beta Test 2 Demonstration/Trial projects on Aviation applications 3 Demonstration/Trial projects on LBS applications 2 Demonstration/Trial projects on Road applications The Most Promising EGNOS Application Idea Special Topic Prize Starting in 2008

12. 12 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 EGNOS from technology to service 200820092010 The critical success factor of EGNOS is market-oriented management Operational Phase Open Signal SoL Service for Aviation From 2009, EGNOS the showcase for Galileo The EU is now taking the market risk formerly to be taken by the concessionaire The experience with the operational and commercial structuring of EGNOS should reduce the risk for Galileo

13. 13 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Paving the way to Galileo services Enable risk sharing with the private sector Provide incentives for efficiency Fulfil market expectations of quality of service Commercial approach to: A commercial system requires: Demand-oriented design of the system Definition of Service Models (CS, SoL, PRS) Operational and commercial structures set up well in advance of FOC Market-entry strategy

14. 14 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008 Conclusion Galileo and EGNOS will bring substantial benefits to European industry, users and society. To reap the benefits, it is necessary to: Ensure that the systems will reach Full Operational Capability in time Develop demand and supply of PNT services The Commission has to set up the means to: Ensure the public utility of the systems Replace the role of the former concessionaire in developing the market for the commercial services

15. 15 EPP-ED Hearing, European Parliament, Brussels – 12 June 2008