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Europe's navigation system still doesn't have leader BY STEPHEN CLARK SPACEFLIGHT NOW Posted: March 2, 2005 After a series of negotiations and reviews, European officials Tuesday announced they are still several months away from selecting a contractor to operate the $4.5 billion Galileo satellite navigation system due to begin launches within a year.
"After studying the two proposals in detail, the Galileo Joint Undertaking came to the conclusion that there was very little difference between them. At this stage it was impossible to decide between the two, so now negotiations on the concession agreement have to be opened with the two consortia simultaneously," the European Commission said in a statement. During this time, officials will begin to negotiate more detailed aspects of the system to determine which candidate offers the best option. The focus will be on cost, financing of the effort, and replenishment plans to keep the 30-satellite constellation at maximum capacity. Both competitors have been formed by powerhouses in the European aerospace, communications, and defense industries. Eurely is composed of Alcatel, Finmeccanica, Aena, and Hispasat, while the iNavSat consortium is made up chiefly of EADS Space, Thales, Inmarsat, and almost 40 more corporations worldwide. The winner will shoulder approximately $1.9 billion of the deployment cost that totals $2.8 billion. Member states will fund the remaining $900 million. "Both consortia substantially improved their original bids from September 2004. That is why it proved valuable to extend the phase," said Rainer Grohe, Executive Director of the Galileo Joint Undertaking. "Both consortia demonstrated to be capable to act as concessionaire. Due to this fact and in order to achieve the best value for the public I have decided to invite both consortia for parallel negotiations on the concession contract." The Galileo system has suffered setbacks in the past, including operations issues with the U.S. Department of Defense over possible interference and a rivalry between Galileo and the Global Positioning System. Discussions with Russia about the compatibility of Galileo with their Glonass system have also taken place. The objective is to ensure users can access both GPS and Galileo signals with a single receiver. However, officials say Tuesday's decision will not impact plans to have the constellation fully deployed by 2008. "I am convinced that this decision will prove the most beneficial for the public and I (envision) that within the next three months, it will become clear with whom the GJU will continue the final negotiations," Grohe said. "The quality of the proposals shows, if there was still any need for it, the commercial viability of this great European space project," said European Commision Vice President Jacques Barrot. "Opening simultaneous talks on the concession agreement will also make it possible to improve the two candidates' proposals, to the greater benefit of the Galileo project." Galileo will consist of 27 operational satellites, in addition to three on-orbit spares, in three orbital planes with an inclination of 56 degrees. From their position in medium Earth orbit 23,000 kilometers high, the spacecraft will deliver precise positioning and timing data to users around the world. Launches are scheduled to begin by the end of the year aboard two Soyuz rockets carrying a pair of testbed satellites designed to validate the performance of the radio signals and other technologies to be employed by the full constellation. Once full deployment begins, the remaining 1,500-pound spacecraft will likely be launched in clusters aboard larger rockets such as the Ariane 5. Galileo is a joint civilian-controlled program between the European Commission and ESA, which is responsible for the design and development of the space and ground segments of the system. The program has received much support from other partners around the world, most notably China who signed a collaborative agreement with the European Commission in 2003 to provide $265 million to the project. Cooperation with nations such as Israel, India, South Korea, Russia, Brazil, Australia, and Mexico has also been pursued. |
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