GPS-Galileo Negotiations:GPS-Galileo Negotiations:Commercial Issues at StakeCommercial Issues at StakeGPS-Galileo Negotiations:GPS-Galileo Negotiations:

Commercial Issues at StakeCommercial Issues at Stake

Briefing to the U.S. GPS Industry CouncilBriefing to the U.S. GPS Industry CouncilSunnyvale, CaliforniaSunnyvale, California

March 21, 2002March 21, 2002

RALPH BRAIBANTIRALPH BRAIBANTIOffice of Space & Office of Space &

Advanced TechnologyAdvanced TechnologyU.S. Department of StateU.S. Department of State

JASON Y. KIMJASON Y. KIMOffice of Space Office of Space

CommercializationCommercializationU.S. Department of U.S. Department of

CommerceCommerce

OverviewOverview

• International Outreach & CooperationInternational Outreach & Cooperation• U.S. Principles for CooperationU.S. Principles for Cooperation• Early Consultations with EuropeEarly Consultations with Europe• U.S. Position, Approach, Goals w.r.t. GalileoU.S. Position, Approach, Goals w.r.t. Galileo• Status of NegotiationsStatus of Negotiations• Key Provisions of U.S. Proposed AgreementKey Provisions of U.S. Proposed Agreement• Issues Under ConsiderationIssues Under Consideration

International Outreach EffortsInternational Outreach Efforts

• Open communication lines with usersOpen communication lines with users• Ensure accurate understanding of U.S. policy and Ensure accurate understanding of U.S. policy and

plans for the futureplans for the future• Correct misinformation (examples)Correct misinformation (examples)

– MYTH: GPS is a military system, can be shut off at any timeMYTH: GPS is a military system, can be shut off at any timeFACT: GPS is a dual-use system jointly controlled by IGEBFACT: GPS is a dual-use system jointly controlled by IGEB

– MYTH: DoD shut off GPS during Kosovo and on Sept. 11MYTH: DoD shut off GPS during Kosovo and on Sept. 11FACT: GPS operated as normal during Kosovo and at all FACT: GPS operated as normal during Kosovo and at all other times; SA has not been used since May 2000other times; SA has not been used since May 2000

• U.S. GPS outreach display booth deployed to many U.S. GPS outreach display booth deployed to many international meetings to promote GPS interestsinternational meetings to promote GPS interests– CITEL, CPM, ICAO, Paris Air Show, U.N. workshops, etc.CITEL, CPM, ICAO, Paris Air Show, U.N. workshops, etc.– Continued USGIC involvement encouragedContinued USGIC involvement encouraged

International CooperationInternational Cooperation

• U.S. GPS Policy of 1996 directed State U.S. GPS Policy of 1996 directed State Department to pursue cooperation with other Department to pursue cooperation with other nations to promote peaceful uses of GPS, nations to promote peaceful uses of GPS, establish it as world standardestablish it as world standard

• Talks occurred with Russia (GLONASS), Japan Talks occurred with Russia (GLONASS), Japan (MSAS), Europe (EGNOS)(MSAS), Europe (EGNOS)

• September 1998: Joint statement on GPS September 1998: Joint statement on GPS cooperation signed with Japancooperation signed with Japan

U.S. Principles for CooperationU.S. Principles for Cooperation

• Seamless interoperability with GPSSeamless interoperability with GPS• No direct user fees for safety critical servicesNo direct user fees for safety critical services• Open market access (non-discrimination)Open market access (non-discrimination)

– Equal access to signal specificationsEqual access to signal specifications– Equal access to user markets (free trade)Equal access to user markets (free trade)– Market driven competitionMarket driven competition– Free choice for end usersFree choice for end users

• Spectrum protectionSpectrum protection• Protection of national security interestsProtection of national security interests

Early Consultations with EuropeEarly Consultations with Europe

• U.S. initially pursued cooperation based on U.S. initially pursued cooperation based on EGNOS interoperability and European use of EGNOS interoperability and European use of GPSGPS

• May 1998: U.S. offered draft agreementMay 1998: U.S. offered draft agreement• As European interest in an independent As European interest in an independent

system grew, U.S. suggested that they field a system grew, U.S. suggested that they field a subconstellation that would be fully subconstellation that would be fully interoperable with GPSinteroperable with GPS

• November 1998: U.S. outlined basic principles November 1998: U.S. outlined basic principles for cooperationfor cooperation

• January 1999: Europe announced Galileo January 1999: Europe announced Galileo projectproject

Official U.S. Position on GalileoOfficial U.S. Position on Galileo

• Modernized GPS service will be sufficient to Modernized GPS service will be sufficient to meet user needs worldwidemeet user needs worldwide

• If Galileo does proceed, the U.S. could see If Galileo does proceed, the U.S. could see benefits if it is designed to be truly benefits if it is designed to be truly interoperable with GPSinteroperable with GPS

• U.S. is waiting to see what path Galileo takes U.S. is waiting to see what path Galileo takes -- many open questions remain unanswered-- many open questions remain unanswered

• Basic U.S. position has not changed since first Basic U.S. position has not changed since first articulated in 1999articulated in 1999

Unanswered Questions about Unanswered Questions about GalileoGalileo

• How viable is the business case?How viable is the business case?• Will European governments help generate Will European governments help generate

revenue streams through regulations and revenue streams through regulations and standards that effectively mandate use of standards that effectively mandate use of Galileo?Galileo?

• Will Galileo signals interfere with GPS?Will Galileo signals interfere with GPS?• Will the information needed for receiver Will the information needed for receiver

production be made equally available to all production be made equally available to all manufacturers?manufacturers?

• Will Galileo take on a strategic military role?Will Galileo take on a strategic military role?• How will Europe prevent hostile misuse of How will Europe prevent hostile misuse of

Galileo?Galileo?

Additional QuestionsAdditional Questions

• Will the encrypted levels of service be truly Will the encrypted levels of service be truly interoperable with the free, safety-of-life interoperable with the free, safety-of-life services?services?

• As EGNOS becomes integrated into Galileo, As EGNOS becomes integrated into Galileo, will it continue to provide GPS data vital to will it continue to provide GPS data vital to aviation?aviation?

• How will Europe protect the sensitive How will Europe protect the sensitive encryption technology used?encryption technology used?

U.S. Approach Toward U.S. Approach Toward CooperationCooperation

• Phased approach to reflect growing Phased approach to reflect growing complexity of GPS-Galileo interaction over complexity of GPS-Galileo interaction over timetime– Phase 1: Framework agreement outlining Phase 1: Framework agreement outlining

overarching principles for cooperation during Galileo overarching principles for cooperation during Galileo developmentdevelopment

– Phase 2: Establishment of working groupsPhase 2: Establishment of working groups– Phase 3: Follow-on agreement addressing longer-Phase 3: Follow-on agreement addressing longer-

term issues and operational interactions once term issues and operational interactions once Galileo goes onlineGalileo goes online

• Current U.S. stance: must have framework Current U.S. stance: must have framework agreement in place before technical agreement in place before technical discussionsdiscussions

U.S. Goals for CooperationU.S. Goals for Cooperation

• Protect interests and investments of GPS user baseProtect interests and investments of GPS user base– No degradation of GPS serviceNo degradation of GPS service– No user feesNo user fees– Freedom of choice for end usersFreedom of choice for end users– Lower costs through free market competitionLower costs through free market competition– Interoperability and backwards compatibilityInteroperability and backwards compatibility– No constraint on future GPS evolutionNo constraint on future GPS evolution

• Protect national security interestsProtect national security interests– DoD/NATO denial capabilitiesDoD/NATO denial capabilities– No overlay of M-CodeNo overlay of M-Code– Control technology transfer and proliferationControl technology transfer and proliferation– Move any discussion of military Galileo to NATOMove any discussion of military Galileo to NATO

• Ensure level playing field for commerceEnsure level playing field for commerce• Maximize benefits of combined GPS-Galileo serviceMaximize benefits of combined GPS-Galileo service

Status of NegotiationsStatus of Negotiations

• U.S.-E.C. talks have proceeded in fits and startsU.S.-E.C. talks have proceeded in fits and starts• Meanwhile, U.S. has engaged in extensive Meanwhile, U.S. has engaged in extensive

outreach with E.C. member states (bilateral, outreach with E.C. member states (bilateral, multilateral)multilateral)

• October 2000: U.S. submitted new agreement October 2000: U.S. submitted new agreement texttext– September 2000: Briefing to industrySeptember 2000: Briefing to industry

• May 2001: E.C. submitted counterproposalMay 2001: E.C. submitted counterproposal• October 2001: Latest round of talksOctober 2001: Latest round of talks

– First substantive presentation of Galileo spectrum First substantive presentation of Galileo spectrum planplan

– U.S. responded with high-level letters and demarcheU.S. responded with high-level letters and demarche

• Galileo funding decision delayed to March 2002Galileo funding decision delayed to March 2002• Next U.S.-E.C. meeting: April/May 2002Next U.S.-E.C. meeting: April/May 2002

Key Provisions of Key Provisions of U.S. Proposed AgreementU.S. Proposed Agreement

• Embodies GPS policy and principles for cooperationEmbodies GPS policy and principles for cooperation– Interoperability, spectrum protection, open signal Interoperability, spectrum protection, open signal

structures, free signals, market competition, security structures, free signals, market competition, security issuesissues

• Recognizes efforts of other fora: ICAO, IMO, ITURecognizes efforts of other fora: ICAO, IMO, ITU• Encourages cooperation on a single, unencrypted Encourages cooperation on a single, unencrypted

safety-of-life servicesafety-of-life service• Ensures free trade in satnav goods and servicesEnsures free trade in satnav goods and services• Ensures open access to specificationsEnsures open access to specifications• Requires consultations before introducing any new Requires consultations before introducing any new

standard/regulation concerning satellite navigationstandard/regulation concerning satellite navigation• Prohibits overlay of military GPS bandsProhibits overlay of military GPS bands• Lays foundation for future cooperationLays foundation for future cooperation

Issues Under Consideration: Issues Under Consideration: InteroperabilityInteroperability

• Galileo spectrum plan proposes overlay of L1, L5Galileo spectrum plan proposes overlay of L1, L5• Potential benefits to pursuing similar frequencies Potential benefits to pursuing similar frequencies

for GPS and Galileo:for GPS and Galileo:– Simplified receiver design (use same antenna, circuitry), Simplified receiver design (use same antenna, circuitry),

leading to lower costs for producers and consumersleading to lower costs for producers and consumers– Possible backwards compatibility for some GPS hardware?Possible backwards compatibility for some GPS hardware?– Simplified denial scenario for DoD/NATOSimplified denial scenario for DoD/NATO

• Potential drawbacks:Potential drawbacks:– Some degradation of service for GPS-only usersSome degradation of service for GPS-only users– May be problematic for spaceborne users that see many May be problematic for spaceborne users that see many

satellites at once (e.g., International Space Station)satellites at once (e.g., International Space Station)– Any proposed overlay of M-Code is totally unacceptableAny proposed overlay of M-Code is totally unacceptable

• U.S. has been studying options for many monthsU.S. has been studying options for many months

Issues Under Consideration: Issues Under Consideration: Access to Galileo SpecificationsAccess to Galileo Specifications

• Galileo intends to offer two types of services Galileo intends to offer two types of services -- open access and controlled access (via -- open access and controlled access (via encryption)encryption)

• U.S. is asking Europe to openly publish all U.S. is asking Europe to openly publish all documentation for access to Galileo open documentation for access to Galileo open service, just as is done for GPS Standard service, just as is done for GPS Standard Positioning ServicePositioning Service

• U.S. also wants Europe to provide equal U.S. also wants Europe to provide equal access to the specifications for controlled access to the specifications for controlled access servicesaccess services– Encryption algorithms should be openly publishedEncryption algorithms should be openly published– Crypto key regime should not exclude non-Crypto key regime should not exclude non-

EuropeansEuropeans– Any licensing arrangements and fees should not Any licensing arrangements and fees should not

discriminate against non-European firmsdiscriminate against non-European firms

Issues Under Consideration: Issues Under Consideration: Access to MarketsAccess to Markets

• U.S. is essentially seeking national treatment U.S. is essentially seeking national treatment and MFN-like obligations from Europe in the and MFN-like obligations from Europe in the satellite navigation areasatellite navigation area– No tariffs, no other discriminatory barriers to tradeNo tariffs, no other discriminatory barriers to trade– Agreement explicitly seeks to go beyond current WTO Agreement explicitly seeks to go beyond current WTO

provisions and obligations, which in many respects do provisions and obligations, which in many respects do not seem to apply in this areanot seem to apply in this area

• U.S. is especially concerned that Europe may U.S. is especially concerned that Europe may impose standards or regulations that effectively impose standards or regulations that effectively mandate use of Galileo within Europemandate use of Galileo within Europe– Any new standards should be technology neutral, Any new standards should be technology neutral,

allowing freedom of choice among usersallowing freedom of choice among users– Agreement must be binding not only to the E.C. but all Agreement must be binding not only to the E.C. but all

member states and instrumentalities (e.g., member states and instrumentalities (e.g., Eurocontrol)Eurocontrol)

– Text specifies that GPS shall automatically meet any Text specifies that GPS shall automatically meet any European standard for satellite navigation servicesEuropean standard for satellite navigation services

Point of Contact for U.S. Point of Contact for U.S. IndustryIndustry

Jason Y. KimJason Y. KimSenior Policy AnalystSenior Policy Analyst

Office of Space CommercializationOffice of Space CommercializationU.S. Department of CommerceU.S. Department of Commerce

jkim@ta.doc.govjkim@ta.doc.gov(202) 482-5827(202) 482-5827