China's decision to expand the functionality of its satellite navigation network could undermine the economics of Europe's nascent Galileo system, according to sources close to the project.

Until now, experts believed that China's "Beidou" navigation system – a 35-satellite constellation – would only be used by its armed forces. This explained China's decision to invest €200 million in Europe's €2.5 billion Galileo programme.

But things appear to have changed in Beijing. On 2 November, the country's official news agency Xinhua reported that Beidou would, from 2008, begin providing an "open" level of service, with 10-metre accuracy, in addition to its "authorised", encrypted military service.

Precisely how open this 10-metre service will be, remains unclear, but the Xinhua report implied that it would be available free to all Chinese citizens and to other countries whose governments strike a deal to use the signal in satellite navigation devices.
Commercial plans

If this is true, it could be a big problem for the Galileo consortium, which had hoped to recoup part of its €2.5 billion investment in Galileo by selling receivers and commercial signal subscriptions in China.

"But if Beidou offers a free non-military service inside China then that idea goes out of the window," says a source close to the Galileo project, who spoke on condition of anonymity, due to the geopolitical sensitivity of the issue.

Full Story