European nations apparently have resolved their objections over budgeting of Galileo, Europe’s $4.2 billion rival to GPS. Several EU nations had voiced concern about Galileo’s high cost, with some countries, most recently Spain, complaining they had been left out of commercial bidding negotiations. Under the final plan, Spain’s share increases from 9.5 percent to 10.25 percent. The cost of Galileo is being shared by 15 European countries.
Galileo, Europe’s $4.2 billion rival to GPS, is in jeopardy of cancellation following clashes between EU nations over project budgeting, officials said. Several EU nations have voiced concern about Galileo’s high cost, complaining they have been left out of commercial bidding negotiations. The first Galileo satellites need to be launched by 2005 or Europe may have to forfeit frequencies allotted by the International Telecommunications Union.
The biggest question remaining about Europe’s homegrown satellite navigation project appears to be not whether the satnav network will ever be built but rather who will run the multibillion-dollar Galileo system after the first of its 30 satellites are launched later this year.