Galileo supplier decision delayed

The agency responsible for developing Europe's Euro 3.2bn Galileo satellite navigation system has delayed the appointment of its major supplier to undertake further negotiations.

Galileo Joint-Undertaking (GJU), a European Commission and European Space Agency led group, expected to decide between the Eurely and iNavSat consortia by February, but told Computing this week that the decision could now take a further three months.

The successful consortium will part-fund Europe's equivalent to the US-owned Global Positioning System, launching more than 30 satellites and building ground receiving stations (Computing, 15 December).

Following months of assessment, the GJU is confident both consortia are technically capable of operating Galileo and has invited them for further negotiations, focused on levels of financial investment each group can make and insurance of the project.

'I am convinced that this decision will prove the most beneficial for the public and I envisage that within the next three months it will become clear with whom the GJU will continue final negotiations,' said GJU executive director, Rainer Grohe.

The GJU says the extension will not affect the launch of its first satellites later this year or plans to become fully operational by 2008.

A number of major European transportation systems, including the proposed UK road pricing scheme (Computing, 28 July), are hoping to use Galileo, with the successful consortium set to profit by developing a range of new satellite navigation products, such as location-based services, telematics and safety systems.

EU transport ministers gave the green light for Galileo in December by approving plans to make the system the global standard for the civil satellite navigation market, estimated by the Commission to be worth Euro 300bn by 2020.

Commission vice president Jacques Barrot says fierce competition between the two private sector consortia shows the commercial viability of the European space project.

'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,' he said.

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