European satellite system gets green light

The European Space Agency (ESA) is set to push ahead with the development of a Global Satellite Navigation system following an independent report by PricewaterhouseCoopers.

Last week, the ESA said that the analyst's report confirmed previous estimates of the economic viability of the Galileo network.

According to the organisation the study underlines the "huge potential benefits" of Galileo, and pinpoints "two major sources" of market revenue: royalties from chipset sales and revenue from service providers.

Galileo, which was created to challenge US satellite dominance, will function as Europe's own network.

It will consist of 30 satellites in medium Earth orbit supported by a global network of ground control and monitoring stations. Any user will be able to determine their position to within a few metres from signals broadcast by three or four of the satellites.

The cost of building Galileo is estimated to be around £2.2bn, with the system scheduled to be up and running by 2008. Europe is set to allocate £680m by the end of the year, with a further £276m to be approved by the European Transport Commission next week.

The future funding and implementation of Galileo, Europe's own Global Satellite Navigation System, will be a major topic for discussion at the European Union's Transport Council in December. "In the meantime, the ESA is forging ahead with developing and testing the technology for the billion-euro project," it said.

Loyola de Palacio, vice president of the European Transport Commission, said the results of the study backed "Europe's intention to become a major player in the strategically important area of navigation and positioning by satellite".