GALILEO
261. According to the Department for Transport (DfT),
"Galileo will provide a highly accurate, guaranteed, global
positioning service, under civil control."[476]
30 Galileo satellites will be in circular orbits 23,222km above
the Earth, and ground stations spread about the globe will monitor
the satellites' positions and accuracies. Galileo will provide
five services: an open, free service like GPS; a commercial service;
a safety of life service for transport applications; a search
and rescue service, and an encrypted public regulated service.[477]
Until the exact details of the signals are finalised, the range
of specific applications is unknown.[478]
There are, however, numerous potential applications for Galileo,
ranging from the management of traffic and transport systems to
the navigation of emergency services to the co-ordination of works
on the public highway to reduce congestion. The Commission has
estimated that the potential market for GNSS products and services
(Galileo and GPS combined) could reach €400 billion in the
next decade, of which UK industry can expect to capture perhaps
as much as €24 billion.[479]
Following a recommendation by the House of Commons Transport Select
Committee, the DTI and DfT became more proactive in identifying
public sector uses for Galileo.[480]
The DfT, for example, is sponsoring research into possible applications,
including a road user charging project. The department has allocated
£10 million to time, distance, and place charging demonstration
projects.[481] The
DTI has set up and is funding a Location and Knowledge Transfer
Network in order to foster efforts to develop new applications
for services offered by Galileo. We welcome the work that DTI
and DfT have undertaken to identify new applications and services
that will be enabled by Galileo. We recommend that the Government
report on progress in this area in the annual BNSC report.
262. Galileo has the potential to be a dual-use system
serving civil and military purposes. The possibility that Galileo
could be used as a military programme was raised by the Transport
Select Committee in November 2004.[482]
The Committee was concerned that Galileo might be used for military
applications, such as missile guidance systems, as well as for
military uses, such as tracking groups of men.[483]
Whilst there would be no bar to using Galileo for military use,
it is not intended for military applications. The Government responded
that Galileo "will be a civil service, under civilian control
[…] Any proposals to alter the civilian status of the PRS
must be unanimously agreed by Member States."[484]
We are concerned, however, that there may be increasing pressure
in Europe to exploit the military potential of Galileo for military
applications. In July 2005, the European Scrutiny Committee noted
that the draft European space policy did not make a clear distinction
between the use of space for defence and security.[485]
The European Space Policy published on 26 April 2007 states that
"Many civilian programmes have a multiple-use capacity and
planned systems such as GALILEO and GMES may have military users."[486]
This comment does not clarify whether those military users could
use Galileo for military applications or not. A recent communication
from the Commission regarding Galileo noted that "Whilst
maintaining the system as a civil system significant revenues
could also come from military users."[487]Dr
David Williams told us that "other countries have been saying,
'We want to use this programme for military requirements', but
[…] the UK has a very strong, loud voice in Europe, saying,
'We must maintain this and we cannot allow it to drift across
to the military side'."[488]
In response to recent Parliamentary questions, the then Minister
for Transport, Dr Stephen Ladyman MP, reiterated that Galileo
remained a civil programme under civil control. He noted however
that Galileo's open service could be accessed by all and could
be used by military forces.[489]
We seek assurance from the Government that it will continue
working at a European level to ensure that Galileo remains a civil
system under civil control. The Government must clarify the ways
in which military forces would be allowed to use Galileo and whether
Galileo could be used for military applications.
263. Within the UK, the Department for Transport
is the lead department on the Galileo programme and it works closely
with BNSC.[490] Dr
Williams told us that "it is quite correct that if you are
going to have a system that is designed for traffic management
the department responsible, Transport, should be involved a at
policy level, saying what they are doing in the future."[491]
The DfT co-ordinates the UK position through the Galileo Co-ordination
Group, which brings together representatives from interested departments
across Government. Given that the focus of Galileo has been primarily
upon its use in transportation, the programme does not seem to
have suffered the same difficulties as GMES with regard to its
lead department. We note, however, that has been a significant
imbalance in funding between DTI and DfT. We recognise the
role taken by DfT to co-ordinate work on the Galileo programme.
We recommend that DfT be known as primary user for this programme,
DIUS as primary funder and BNSC Headquarters be identified as
the lead with the appropriate transfer of staff accordingly.
264. There was agreement between witnesses that there
are currently problems in the Galileo programme. Dr Williams told
us that "There is going to be a lot of hard management going
into Galileo with some very significant challenges coming up".[492]
Malcolm Wicks MP said that "I think Galileo has certainly
run into some difficulties."[493]
Elizabeth Duthie, Divisional Manager of the Galileo Programme
Division in DfT, told us that "There are a great many challenges
in the Galileo programme."[494]
265. The intention was that Galileo would be implemented
through a Public Private Partnership (PPP). The programme was
organised so that ESA would be responsible for putting four satellites
in orbit to demonstrate to private investors that the system can
work. A private concessionaire was then going to be responsible
for launching the next 26 satellites and for delivering the services.
A concessionaire, a consortium of eight companies, was appointed
but it was unable to agree on a common negotiating position.
266. On 16 May 2007, a communication from the Commission
to the European Parliament and the Council stated that "the
concession negotiation which should have led to the deployment
and exploitation of Galileo has stalled." In this communication,
the Commission invited the Council and European Parliament to
take note of the failure of the current concession negotiation
and to conclude that the current PPP negotiations should be ended.[495]
The Council adopted a resolution concluding that current concession
negotiations have failed and should be ended, supporting the deployment
of Galileo and recognising that the implementation of a deployment
of Galileo would need additional public funding.[496]
The Council requested that the Commission submit detailed alternative
proposals for funding Galileo by September 2007.
267. The Commission has recommended that the European
Union and its Members States run a public procurement of the first
constellation of eighteen satellites and then establish a PPP
to procure the remaining satellites. This scenario would require
the European Union and its Member States to find an additional
€3.4 billion for the period 2007 to 2013.[497]
On 13 June 2007, the Minister of State for Transport, Dr Stephen
Ladyman MP, explained that the UK was committed to the PPP principle
and was concerned about the potential increased costs of public
procurement.[498] The
Government welcomed the Presidency's acceptance that the project
could be ended if acceptable answers could not be found.
268. The proposed additional costs for a public procurement
are set against a history of rising costs within the programme.
The programme has four phases: definition, development and validation,
deployment, and commercial operating. The costs of the first two
phases have exceeded original estimates. The total cost of the
initial definition phase increased from €80 to €130
million. The total cost of the second phase, the development programme,
is estimated to be €1.5 billion, an increase of €400
million on the original estimate. The UK has invested £96.6
million in the programme so far, with £24.1 million contributed
by DfT and £72.5 million contributed by DTI.[499]
If the Commission proposal for funding the deployment is accepted,
the UK will be expected to pay its share of the further costs.
There have been cost/benefit studies undertaken on Galileo at
UK and European levels. We are however concerned that, given the
changes to this programme, these studies are now out of date.[500]
269. We are concerned that the failure of the
concessionaire and subsequent alternative funding proposals for
the Galileo programme are likely to result in rising costs to
the UK. We recommend that, before the next Transport Council meeting,
the Government publish a new analysis of the costs and benefits
of the Galileo programme to the UK. We recommend that the Government
report to Parliament on a regular basis on its intentions in relation
to Galileo.
Telecommunications
270. Telecommunications satellites are used frequently
in our everyday lives. Satellites are used for distributing radio
signals, for transmitting television signals, for distributing
text, audio, and video by news agencies, for providing access
to the internet, for providing mobile communications, and increasingly
for enabling tele-education and tele-medicine. There is now a
belt of over 100 satellites surrounding the Earth, providing radio,
television and telephone communications.
271. Telecommunications and broadcasting is the dominant
sector within the UK space industry. Satellite broadcast services
and satellite communications services accounted for 85% of downstream
industry turnover in 2004-06 (approximately £3496 million).[501]
Colin Paynter from EADS Astrium told us that "The facts in
the UK are that 80% of the industry and perhaps more of the wealth-creation
is locked into telecoms research and development leading to wealth-creation".[502]
ESA indicated that the market for satellite communications has
been expanding at a sustained rate of more than 15% a year.[503]
The DTI forecast that "With the increase in Internet traffic
and development of broadband, multimedia, mobile and digital broadcasting
technologies, the satellite communications industry is set to
experience significant growth in the coming years."[504]
272. The UK has maintained a strong position in the
development of the telecommunications sector. Intellect claimed
that "Over the past 40 years, the UK has been quite good
at keeping up with, in some cases even leading, world trends in
telecommunications and broadcasting".[505]
The DTI told us that "UK companies have played a key role
in the next generation of advanced civilian communications satellites
for Inmarsat and are currently working to deliver advanced broadband
and high definition TV services in Europe."[506]
The Inmarsat-4 F2 satellite for example was launched on 8 November
2005 and now supplies users with broadband internet and 3G phone
services. The UK is also involved in ESA's AlphaBus project, which
will create a platform able to accommodate up to 200 radio-frequency
transponders. AlphasBus will facilitate a wide range of commercial
missions ranging from TV broadcasting to multimedia applications,
and including Internet access, mobile or fixed services in the
widest sense.
273. It is important that the UK Government continues
to support the space industry in this sector. We have mentioned
earlier the importance of programmes such as ARTES and Alphasat
in supporting work in this area (paragraphs 144 and 149). The
BNSC acknowledged that "Much of the economic activity is
currently in broadcasting and telecommunications and reflects
past investments, with a significant downstream service industry
based on the use of satellite systems. Future developments in
this area will look at broadband links, digital communications
and broadcasting."[507]
The telecommunications sector is still growing. It is important
that the Government continues to fund initiatives in this area
such as ARTES and Alphasat, which provide vital seedcorn funding
for high-risk, early stage R&D.
274. There are various regulations governing the
orbit and frequency at which telecommunications satellites can
operate. Satellites orbit the Earth at various levels and to maintain
a particular orbit a satellite must travel at a specific orbital
velocity. When a satellite is in geo-synchronous orbit, it orbits
the earth once in 24 hours and is at approximately 36,000km above
the Earth. The equatorial GEO orbit is popular for communications
and weather satellites because the satellites remain stationary
over the same point on the Earth's surface. There is room for
only about 180 active satellites in this orbit so demand for orbital
slots and the frequencies at which they can communicate is high.[508]
275. Before a satellite is launched, it is necessary
for the national regulatory body or administration to register
and seek agreement for the proposed orbit and operating frequency
spectrum of the communications satellite with the International
Telecommunications Union Radiocommunications Bureau. UK registration
takes place through Ofcom, which is responsible for co-ordinating
applications for access to radio spectrums for communications
and access to specific orbits. It notifies the International Telecommunications
Union and then applicants join the queue for a frequency. Applicants
also require a licence from the Government under the Outer Space
Act (paragraph 169).
276. We have heard that UK satellite operators are
facing challenges created by the inconsistent application of regulations
internationally and the UK-centric focus of Ofcom.[509]
David Williams from Avanti told us that
some regulators will interpret ITU guidelines
and rules in a way which is very flexible and gives a distinct
competitive advantage to other satellite operators. So there are
satellite operators in Europe, for example, for whom the same
standard of rigour in interpretation of rules and guidelines that
apply to me does not apply, and that gives me a competitive disadvantage.[510]
Intellect wrote that "Ofcom's management of
UK spectrum use is becoming very UK-centric in that the wider
policy implications and international dimensions of existing and
new satellite services do not appear to be taken into adequate
account when planning future spectrum usage."[511]
It provided several different examples such as Ofcom's plans to
allow new terrestrial services to use the receive "C-band
transmission band", which could jeopardise links to other
countries such as Africa.[512]
277. There is potential for change in this area at
national and European levels. Ofcom is currently reviewing its
practices and has consulted interested parties regarding plans
for new terrestrial services.[513]
The European Space Policy states that "Pan-European licensing
of services, spectrum and content is needed, as well as a more
flexible, market-based regime for allocating radio spectrum."[514]
We recommend that the Government work at a European level to
ensure that there is a consistent standard of regulation across
Europe. When reviewing its practices, Ofcom should take the views
of satellite operators regarding the international impact of its
activities into account.
476 Ev 287 Back
477
As above. Back
478
Q 387 Back
479
Ev 288 Back
480
Transport Committee, Eighteenth Report of Session 2003-04, Galileo,
HC 1210, para 56; Ev 116 Back
481
Ev 372 Back
482
HC [2003-04]1210, para 51 Back
483
As above, para 47 Back
484
Transport Committee, Second Special Report of Session 2004-05,
Government Response to the Eighteenth Report of the Committee:
Galileo, HC 410, p 4 Back
485
European Scrutiny Committee, First Report of Session 2005-06,
HC 34-i, para 22.11 Back
486
EC, European Space Policy, SEC(2007)504, p 7 Back
487
Communication from the Commission to the European Parliament and
the Council, Galileo at a Cross-Road: The Implementation of the
European GNSS Programmes, Com (2007)261 final, p 14. Back
488
Q 112 Back
489
HC Deb, 24 May 2007, col 1460 WS; HC Deb, 11 June 2007, col 725
WS Back
490
Q 163 Back
491
Q 164 Back
492
Q 163 Back
493
Q 584 Back
494
Q 423 Back
495
Communication from the Commission to the European Parliament and
the Council, Galileo at a Cross-Road: The Implementation of the
European GNSS Programmes, Com (2007)261 final, p 2, p 6 Back
496
Council of the European Union, Council resolution on Galileo,
6-8 June 2007 Back
497
Communication from the Commission to the European Parliament and
the Council, Galileo at a Cross-Road: The Implementation of the
European GNSS Programmes, Com (2007)261 final, p 14. Back
498
HC Deb, 13 June 2007, col 55 WS Back
499
Ev 287 Back
500
Q 587. Price Waterhouse Cooper, Inception study to support the
development of a business plan for the Galileo programme ( 20
November 2001). Back
501
BNSC, The Size and Health of the UK Space Industry 2006: Executive
Summary, January 2006, p 7. Back
502
Q 8 Back
503
"Telecommunication satellites: what for?", www.esa.int Back
504
Ev 116 Back
505
Ev 211 Back
506
Ev 116 Back
507
Ev 119 Back
508
Military Uses of Space, POSTnote 273, Parliamentary Office
of Science and Technology, December 2006, p 3 Back
509
Ev 212 Back
510
Q 47 Back
511
Ev 212 Back
512
As above. Back
513
Ev 408 Back
514
EC. European Space Policy, SEC(2007)504, p 10 Back
