The Global Positioning System A Worldwide Information Utility

1. The Global Positioning SystemA Worldwide Information Utility November/December 2000

2. Overview • Policy • Applications & Markets • Augmentations • Sustainment & Modernization • International Cooperation

3. Policy

4. GPS is a Dual-Use System • Cold War spinoff • Developed in 1970s-1980s to support Allied forces • Prominent in Gulf War, Kosovo • After KAL-007, civilians gained free access to Standard Positioning Service • Commercial use now dwarfs military use • GPS policy is managed at a national level by the Interagency GPS Executive Board (IGEB)

5. Interagency GPS Executive Board Defense Transportation State Commerce Agriculture Interior NASA Joint Chiefs of Staff Justice

6. United States GPS Policy • Presidential Decision Directive signed in 1996, endorsed by Congress in 1998 • GPS Standard Positioning Service to remain free of direct user fees • U.S. to promote acceptance and use of GPS as a world standard • Selective Availability -- ended May 2000 • IGEB to manage GPS as a national asset

7. United States GPS Policy, cont’d. • Encourage private sector investment in/use of GPS technologies and services • Promote safety and efficiency in transportation and other fields • Promote international cooperation in using GPS for peaceful purposes • Advance scientific and technical capabilities • Strengthen and maintain national security

8. Applications & Markets

9. Worldwide Sales of GPS Goods & Services Will Reach $16B by 2003

10. Worldwide GPS Revenues By Market Segment

11. Car Navigation • On-board navigation • Fleet management • Roadside assistance • Stolen vehicle recovery • Enhanced services • Mass market dominated by Japan • Dataquest: Unit sales of chips for car navigation to reach 11.3M in 2001 • $4.7B sales by 2003

12. Consumer/Recreational • Portable receivers for fishermen, hunters, hikers, cyclists, etc. • Recreational facilities -- golf courses, ski resorts • Integration of GPS into cellular phones • E-911 requirement • $3.8B market by 2003

13. Surveying/Mapping/GIS • Sub-centimeter accuracy • 100%-300% savings in time, cost, & labor • Control survey point: $10,000 in 1986; $250 in 1997 • Rural electrification • Telecom tower placement • Pipelines • Oil, gas, and mineral exploration • Flood plain mapping • $3.12B market by 2003 Electricidade de Portugal Group uses GPS to survey the border of the Alqueva dam

14. Tracking/Machine Control • Package/cargo delivery • Fleet and asset management • Theft recovery • Public safety and services • Farming, mining, and construction equipment • DGPS/RTK required for many applications • $3B market by 2003 FGC (Barcelona) GRUPISA (Madrid)

15. Public Services • City planning • Transportation infrastructure • Road Billing Network (ROBIN) • Snowplows • Emergency response • Law enforcement • Fire fighting • Search and rescue • Paramedics • Disaster relief

16. Aviation • GPS approved for en-route navigation • More efficient flight routing leads to fuel savings • Better tracking of aircraft enhances safety • Closer spacing of planes increases airspace capacity • $710M market by 2003

17. Maritime Navigation • GPS-based vessel tracking and traffic management maximizes effectiveness of waterways • Improved safety increases maritime commerce • Maritime DGPS service for enhanced accuracy and safety available in 34 countries • $210M market by 2003

18. Original Equipment Manufacturers • Chipsets • Electronic boards • Antennas, components • Standalone receivers • $690M market by 2003

19. Military • GPS is a recognized NATO standard • GPS is required on all U.S. military systems • Precision munitions widely used during Gulf War, Kosovo

20. Timing • GPS offers an inexpensive alternative to costly, high maintenance timing equipment • Telecommunications network synchronization & management • Phones, pagers, wireless systems • LANs, WANs, Internet • Financial transactions • Electrical power grid management & fault location • Digital signatures for e-commerce • Some estimate the timing market at $40-100M

21. Scientific Research • Monitoring geological change • Glaciers, tectonic plates, earthquakes, volcanoes • Wildlife behavior • Atmospheric modeling • Water vapor content • Oceanic studies • Tidal patterns • Surface mapping • Time transfer

22. Environmental Management • Forestry • Wetlands management • Natural resource management • Fisheries boundary enforcement • Endangered species and habitat preservation • Hazardous material cleanup • Oil spills, toxic waste

23. Emerging GPS Applications • Entrepreneurs and scientific researchers invent new applications almost every day • Higher precision is necessary for many cutting-edge applications • Differential GPS (DGPS) • Relative DGPS • Carrier phase positioning • Real-Time Kinematic (RTK) • Post-processing

24. Precision Agriculture • Maximize use of resources • Optimized plowing of crop rows • Tailored applications of seeds, fertilizer, water, pesticides • Improved management of land, machinery, personnel, time • Greater crop yields • Net benefit: $5-14 per acre • Minimize environmental impacts • Localized identification and treatment of distressed crops reduces chemical use • Precise leveling of fields prevents fluid runoff

25. Open Pit Mining • Enhanced management of assets, equipment • Progress tracked in real-time, remotely • Improved machine control saves time, lowers maintenance and fuel consumption, prevents accidents • Rapid surveying for drilling blast holes • Smaller, more empowered workforce

26. Space Applications • Improved orbit and attitude control for spacecraft • International Space Station • Crew return vehicle • PoSat-1 microsatellite • Advance Land Observing Satellite uses GPS to calibrate high resolution radar maps • Satellite formation flying • Space launch range safety

27. Construction • Machinery, asset, and personnel management • Rapid surveys for laying foundation piles, etc. • Accident prevention • Remote control of machinery possible • Japanese volcano dam

28. Europe is a Major Player in the GPS Market • Rapid growth projected, especially in car navigation sector • Many European firms provide GPS goods and services • 45 identified by Booz-Allen Hamilton • European governments are investing in GPS augmentation and reference systems • Maritime DGPS • EGNOS • EUREF Permanent Network

29. The Market is Wide Open • Civil signals are freely available, right now • Openly published GPS specifications allow anyone to build receivers (no licensing fees) • Hardware is becoming a commodity • Huge potential exists in value-added services • Software development • Embedded applications • Localized GIS databases • Internet integration • Wireless markets

30. Unit Cost of Receivers Is Falling At ~30% Per Year $800 $600 $400 $200 0 1991 1993 1995 1997 1999 Source: U.S. GPS Industry Council

31. Projected Relative Market Share

32. Augmentations

33. Sustainment & Modernization

34. International Cooperation

35. International Cooperation • Promote acceptance and peaceful use of GPS and its augmentations • International offering of GPS to ICAO and IMO • Service free of direct user charges • Non-proprietary signal standards for civil services • GPS Augmentations -- Worldwide interoperability • Space-based systems (WAAS, MSAS, EGNOS) for aviation • Land-based DGPS technology for maritime and terrestrial uses: already adopted by 35 countries • Global, non-proprietary standards

36. Principles for Cooperation • No direct user fees for civil and public safety services • Ensure open market driven competition for user equipment and applications • Open signal structure for all civil services to promote equal access for applications development and value added services • Protection of the current radionavigation spectrum from disruption and interference • Use of GPS time, geodesy, and signal structure standards • Seamless, global interoperability of future systems with GPS • Recognition of national and international security issues and protecting against misuse

37. U.S. - Japan Cooperation • September 1998: Joint Statement signed • GPS based augmentations • Largest commercial market share for products and services • September 1999: Working Groups met in Washington, D.C. • Policy • Transportation • Commercial & Scientific • Next plenary session in Tokyo

38. U.S. - Russia Consultation • May 19 in Washington, D.C. • Excellent dialogue • Many common views • Principles of Cooperation • Next meeting in Fall 2000 in Moscow

39. U.S. - E.U. Consultations • Use of GPS and its augmentations for commercial products and services incorporating open signal structure • 1998: U.S. presented draft Framework Agreement based on GPS and its augmentations • Consider inclusion of: International Advisory Commission, Intent of Guarantee, Statement of Free Service • 2000: Cooperation concept • Stage 1: Framework Cooperative Agreement based on Principles of Cooperation • Stage 2: Working groups • Stage 3: Follow-on agreement to cover Galileo operations phase

40. U.S. - E.U. Draft Agreement • Presented to the Commission on October 5 • Embodies GPS Policy & Principles of Cooperation • Government provided satellite signals free of user fees • Interoperability with GPS • Open signals for critical infrastructure and safety-of-life services • Open specifications and markets for civil equipment and services • Users choose which system or combination best meet their needs • Recognizes efforts of other fora: ICAO, IMO, ITU • Accounts for different levels of system maturity • Lays foundation for future cooperation

41. U.S. Questions About Galileo • To be understood: • Revenue stream generation • Future regulatory actions • Required use (mandate through standards) • Interoperability of free open system with fee-based encrypted system • Safety of life applications • Prevention of misuse • Open specifications and standards for equal worldwide market access • Spectrum use • Security service

42. Summary • GPS is a key component of the global information infrastructure • U.S. is committed to providing GPS service free of direct user fees to users worldwide • Adherence to U.S. principles has led to GPS standardization and market growth • GPS modernization is under way • U.S. is continuing international outreach to further understanding of GPS, its augmentations, and its applications • U.S. is fostering international dialogue to be responsive to global user needs