Heinz Hilbrecht

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Heinz Hilbrecht European Commission Directorate
General Transport and Energy
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The importance of GALILEO for the European
Economy
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• Content of the presentation
• Introduction Transport White paper
• Galileo features and planning
• The market and the GPS position
• System cost versus benefits
• The revenues to the operator
• PPP Joint Undertaking and the concession
• Conclusions

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• White Paper on Transport (EC, Sept. 2001)
• Road transport predominant
• Congestion and Pollution
• Needs from
• enlargement and
• sustainable growth

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• Decouple
• Transport Growth from Economic Growth
• equilibrium between transport modes
• decongestion
• increase safety
• ? Galileo is an enabler

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About GALILEO

• Global Satellite Navigation System (GNSS)
• 30 satellites (world-wide coverage)
• State of the art positioning and timing services
  (availability, integrity, guarantee for some
  services)
• Independent, interoperable with GPS and Glonass
• Joint Initiative EC-ESA initiative

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Programme Phases
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Worldwide GNSS Market Size
Breakdown by main application
4,000
3,500
3,000
Number of users (million uusers)
2,500
2,000
1,500
1,000
500
-
2005
2010
2015
2020
GNSS represents a major market with potentially
3.6 billion chipsets sold until 2020
Source PWC Final Report November 2001
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European dependence on GPS

• GPS hegemony
• No control by Europe
• implementation of European regulations
  (transport policy)
• Difficult European industry penetration in the
  navigation market
• Charges for GPS use ?
• GPS service disruption impact large number of
  applications

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Economic Cost Benefit Analysis

• Macro economic benefits for the European society
• aviation, maritime, route guidance
• rail, personal communication, agriculture,
  environment, etc.
• Total benefits in Net Present Value over 20
  years around 17 billion
• Total cost in Net Present Value over 20 years
  3.9 billion
• ? Benefit to cost ratio greater than 4

Source PWC Final Report November 2001
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Projected Market Revenues for the Galileo
Operator
600,000
550,000
Operator Purchase Revenue
Operator Service Revenue
500,000
450,000
400,000
350,000
Thousands of Euros
300,000
250,000
200,000
150,000
100,000
50,000
-
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026

• The projected Market Revenue for the operator is
  more than Euro 50m in 2010 and around Euro 500m
  in 2020

Source PWC Final Report November 2001
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Public Private Partnership

• Private sector is key for
• commercial orientation (secure revenues)
• management
• financing
• Steps
• The Joint Undertaking for the development phase
• The Concession for the subsequent phases

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Joint Undertaking
MISSION Deployment and Exploitation phase,
management structure and financing of next
phases, local elements, users applications LEGAL
STATUS Joint Undertaking (article 171 EU
Treaty) MEMBERS EC, ESA, (EIB, Private
Sector) DECISION EXPECTED Transport Council,
March 2002
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Concession scheme
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Conclusions

• Galileo is a must
• Galileo is technically feasible and financially
  sound
• Galileo will serve Transport Policies ... and
  many others
• Galileo is the first ambitious program of the
• European Space Strategy
• ? Political approval is expected

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• www.galileo-pgm.org
• www.esa.int/navigation