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Viewing cable 08BERLIN897, BERLIN GNSS TELEMATICS CONFERENCE: GALILEO FEELING

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Reference ID Created Released Classification Origin
08BERLIN897 2008-07-08 15:47 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Berlin
VZCZCXRO2012
PP RUEHAG RUEHAST RUEHDF RUEHHM RUEHLN RUEHLZ RUEHMA RUEHPB RUEHPOD
RUEHTM
DE RUEHRL #0897 1901547
ZNR UUUUU ZZH
P 081547Z JUL 08
FM AMEMBASSY BERLIN
TO RUEHC/SECSTATE WASHDC PRIORITY 1612
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNFRG/FRG COLLECTIVE
RUEHBS/AMEMBASSY BRUSSELS 0552
RUEHBS/USEU BRUSSELS
UNCLAS BERLIN 000897 
 
SENSITIVE 
 
SIPDIS, STATE FOR EUR/AGS, EUR/ERA AND EB/IFD/OMA 
 
E.O. 12958: N/A 
TAGS: EAIR ECON EINV ETRD PGOV PREL TSPA EUN NL GM
SUBJECT: BERLIN GNSS TELEMATICS CONFERENCE: GALILEO FEELING 
THE 2013 HEAT 
 
REF: A. 07 MUNICH 652 
     B. BERLIN 142 
     C. BRUSSELS 310 
     D. BERLIN 247 
     E. BERLIN 264 
 
1.  (SBU) The 2nd GNSS Technologies and Telematic 
Applications Conference, held June 12, 2008, highlighted a 
paradigm shift in Galileo's business philosophy to generate 
revenue and openness to foreign procurement.  Galileo 
representatives admitted that the goal of having a complete 
and operational Galileo satellite constellation by 2013 is 
"very ambitious".  They also expressed concern regarding 
EU/Chinese GNSS (Global Navigation Satellite System) 
cooperation. 
 
GALILEO BUSINESS PLAN FOCUSING ON DOWNSTREAM REVENUE 
--------------------------------------------- -------- 
2.  (SBU) Mr. Rainer Grohe, former Head of Galileo Joint 
Undertaking, and Mr. Carlo des Dorides, Head of Programs 
Department EU GNSS Supervisory Authority (GSA), both 
commented that industry feedback projects the Galileo 
commercial signal will not be a significant source of 
revenue.  Rather, Galileo management is now focusing on the 
downstream economic stimulus Galileo that will provide as a 
primary revenue source.  Grohe said the EU GNSS market 
expansion resulting from the Galileo signal is now expected 
to exceed 140,000 EU jobs and stated there is no indication 
that a market exists for an encrypted commercial service (CS) 
signal.  Grohe said the original Galileo driving force of 
EU/GPS independence is now "ridiculous" and that Galileo's 
success rests on user application services. 
 
GALILEO OPENING PROCUREMENT TO CONTRACTORS OUTSIDE THE EU 
--------------------------------------------- ------------ 
3.  (SBU) The GSA has softened its position on 
Galileo-related contracts being awarded exclusively within 
the EU. Dorides commented privately that in the interest of 
keeping the Galileo schedule on track, the GSA has adopted a 
more flexible posture, allowing contracts to be awarded on a 
subcontractor basis (not as a primary bidder) outside the EU. 
 Dorides specifically noted that using US contractors with 
ample satellite experience would be a likely scenario.  The 
German newspaper Handelsblatt reported on Monday June 16 that 
the US aerospace group Boeing is taking part in discussions 
with a view towards eventually participating in the Galileo 
project. 
 
GALILEO AND COMPASS ON A FREQUENCY COLLISION COURSE 
--------------------------------------------- ------ 
4.  (SBU) China's GNSS candidate (Compass) and the EU's 
(Galileo) are playing a game of chicken over the issue of 
frequency filings, and dialogue and negotiations to resolve 
this matter have been thus far unsuccessful.  (COMMENT: The 
current Chinese frequency selection would overlay on 
Galileo's encrypted Public Regulated Service (PRS) and would 
potentially limit the EU's options when it comes to NAVWAR 
situations.  END COMMENT.)  Grohe commented that there has 
been no resolution yet on the frequency overlap issue, adding 
that China is "playing a real game of hardball" on this issue 
and they are "not backing down."  In addition, Grohe 
commented on the EU perception that China's interest in 
Galileo is largely based a thirst to attain access to the 
core Galileo technologies.  According to Grohe, China's 
interest in Galileo is motivated by their goal of siphoning 
EU satellite technologies to speed up their own R&D process 
in constructing Compass.  Grohe added, the EU position is not 
necessarily to disallow Chinese participation in Galileo, but 
rather to ensure that their participation is limited to an 
external role (denying Chinese access to core Galileo 
technologies such as Galileo's atomic clock). 
 
POLITICAL PRESSURE THE REAL DRIVING FORCE BEHIND GALILEO 
--------------------------------------------- ----------- 
5.  (SBU) On the margins of the conference, Dr. Paolo 
Mulassano, a GNSS researcher at the Instituto Superiore Mario 
Boell - Italy, told Global Affairs officer the real drive 
behind Galileo is political and not the result of a private 
industry need for a second GNSS signal.  Mulassano welcomed 
the presence of a second viable GNSS signal, but added that 
it is questionable whether Galileo's investment cost is worth 
it.  Mulassano added, the 3.4 billion euro price tag is 
essentially the cost to prove the EU can successfully 
collaborate on a technical project on the scale of Galileo. 
TIMKEN JR