EGNOS and Galileo

1EPP-ED Hearing, European Parliament, Brussels – 12 June 2008

EGNOS and Galileo

Pedro PedreiraExecutive 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 Fostering the economic and social benefits ofand social benefits of


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.


Satellite navigation is boomingForecasts personal navigation devices sold 2011Millions per year

Forecasts GNSS enabled mobile phones sold 2011Millions per year

Note: graphs have been extrapolated based on published data from sources, colours refer to different sourcesSources: Berg Insight, iSuppli, in-stat

18%

0

100

200

300

400

500

600

700

800

2006 2007 2008 2009 2010 2011

41%

27%

25%

CAGR

0

200

400

600

800

1,000

1,200

1,400

1,600

2006 2007 2008 2009 2010 2011

Mill

ion

0%

5%

10%

15%

20%

25%

30%

35%

%

Mobile phone sales

GNSS enabledphone salesGNSS penetration


Source: L.E.K. analysis

€ b

Galileo and EGNOS willcreate additional benefit for Europe

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10

20

30

40

50

60

70

Up

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ial

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efits

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4.1

11.03.1 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


To reap the benefit,two action lines need to be followed

Incre

asin

g m

ark

et

ori

en

tati

on

Create value and project Europe’s 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

Galileo’s success drivers

DevelopingDemand andSupply

EnsuringFull Operational Capabilityin time


Coordination of the value chainis necessary

Development ofServices and Applications

Deployment ofthe Systems

PN

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A key factor of coordination of the value chain is a reliable deployment schedule


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


Public Utility(impact on public benefits)

Se

gm

en

t a

ttra

cti

ve

ne

ss

(s

ize

, g

row

th)

o Road Pricing

o LBS socialo LBS innovation

o Aviation commercial

o Maritime

o Rail

o Timing

o Security

Lo

wM

ed

ium

Hig

h

Low

o Road Congestion

o Road VAS

o Road Fleet management

o Aviation general

o Aviation airports

o Surveying

Medium High

o Road Emergency/ Security

Assessing the potential andmaturity of market segments


Supporting market enablers

A. LBS Market

context and obstacles

B. Analysis of enablers and stakeholders

C. Assess GSA levers and define strategy

D. Targeted action plan

E. EU-wide promotion

F. Results and actions monitoring

Analysis Implementation

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 technologies1

Introduction of EGNOS and Galileo2

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 availability8


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


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 IdeaSpecial Topic Prize

Starting in 2008


EGNOSfrom technology to service

2008 2009 2010

The critical success factor of EGNOS is market-oriented management

Operational Phase

Open SignalSoL 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


Paving the wayto 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


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

EGNOS and Galileo

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