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| **PNT MEDIA ITEMS**                                                   |
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| [**www.pnt.gov**](http://www.pnt.gov/)                                |
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October 5, 2007

**GALILEO FUNDING PLAN TO DRAW FULLY ON COMMUNITY RESOURCES**

5 October 2007

[Europolitics Environment](javascript:void(0))

The European Commission will on 19 September propose to the EU\'s 27
transport ministers to take from the EU budget, by 2013, the total
monies needed - €3.4 billion - for the funding of the last development
phase and the entirety of the deployment phase of **Galileo**, the EU\'s
satellite navigation network.

This change of direction would not be at the expense of other Community
initiatives. One billion euro have already been budgeted for **Galileo**
in the Financial Perspectives 2017-2013 - it is therefore a question of
finding €2.4 billion more. According to the proposal to review these
perspectives, which Budget Commissioner Dalia Grybauskaité will present
on 19 September, the operation will consist, firstly, of recuperating
unused funds from the Common Agricultural Policy for 2007 and 2008. To
do this, the Council of Ministers and the European Parliament will be
invited to transfer into the **Galileo** line - part IA (competitivity)
of the perspectives - €1.7 billion from unused 2007 monies (out of a
total of some €2.1 billion) and €0.5 billion in unallocated 2008 monies.

Added to that €2.2 billion purse reallocated in this way would be €220
million in unallocated administrative monies (€120 million in 2007 and
€100 million in 2008) and another €300 million provisionally planned for
R&D activities between 2011 and 2013 for the future\... **Galileo** 2.
(The total amount to be collected exceeds the €2.4 billion needed - €300
million will be allocated to financing the future European Institute of
Technology.)

Therefore, not only has the Commission signed the final death
certificate of the public private partnership which, at the project\'s
origin, was supposed to bear at least half of the financial burden of
the European satellite navigation system, but it also gives up
advocating a combination of Community monies and direct contributions
from member states. On the other hand, the transport commissioner did
not rule out seeing the future operator of this competitor to the
American GPS, who would be designated by a call for tenders, be bound to
share its profits with the EU budget according to as yet unspecified
keys and methods.

In virtue of the principle of political caution\', Jacques Barrot does
not seek to hide the fact that there are questions regarding the
project\'s commercial viability, even in light of the current and
foreseeable expansion of the sale of equipment and services related to
satellite navigation. Ever cautious, the commissioner has already
earmarked a sum of €428 million within the total €3.4 billion purse to
cover any unforeseen expenses.

**EADS Astrium fears delay to Galileo from bidding round**

5 October 2007

[Financial Times Deutschland](javascript:void(0))

EADS Astrium, the aerospace subsidiary of European Aeronautic Defence
and Space Company (EADS), has said that the introduction of another
round of bids for the system management of the navigation satellite
project **Galileo** could lead to a two-year delay.

Evert Dudok, head of the management board, has said that the company
estimates that such a delay could push back the completion of the
30-strong satellite network to 2015 or 2016. The project has already
been delayed until mid-2013.

Germany fears that it could lose out to Italy or France in another round
of bids: at present, Germany holds an added-value stake of around 18 per
cent in the current development phase. Industry sources say that France
and Germany are considering setting up the network themselves and then
later expanding it as a European project. Dudok has said that costs for
the construction phase of the network have been estimated at

**How tracking Sputnik inspired GPS**

4 October 2007

[The Globe and Mail](javascript:void(0))

Right from the start of the space age, it was evident that satellites
would be very helpful for the military. After all, you didn\'t need to
be a rocket scientist to realize that they could be used to "spy" on
your enemies from orbit. But satellites also had the potential to
dramatically transform the way war is fought.

The night after Sputnik\'s historic launch on Oct. 4, 1957, scientists
at the Massachusetts Institute of Technology set out to chart the
satellite\'s precise orbit in the sky by tuning into the
"beep-beep-beep" of its radio signal.

As the satellite approach overhead, the frequency of the single
increased, and as it got further away, the frequency decreased. Or put
another way, the signal seemed to become stronger as satellite got
closer and then weaker as the spacecraft receded in the distance- a
phenomenon known as the Doppler effect.

It was readily apparent to the scientists that satellite signals could
be used for a sophisticated space-based navigational and guidance
system. Just as you could use the Doppler effect to pinpoint the
location of a satellite flying overhead, you could also employ satellite
signals to find your location on the ground. With such beckons in the
sky, ships would always know their precise position at sea, troops could
manoeuvre on the ground and bombs could be guided to their targets with
deadly accuracy.

That early inspiration eventually led to the creation of the Global
Positioning System, or GPS, a constellation of two-dozen satellites
developed and maintained by the U.S. military.

"Each satellite orbits the earth every 12 hours in fashion that ensures
that every point on the planet will always be in radio contact with at
least four satellites," according to a document by the U.S. National
Academy of Sciences. "Each satellite continuously broadcasts a radio
signal that includes both its own position and the exact time, exact to
a billionth of a second."

A GPS receiver on the ground can then use this information to pinpoint
its own longitude, latitude and altitude. (It essentially does this
calculation by comparing and contrasting its distance from at least four
satellites.) However, it took years of research and roughly \$14-billion
(U.S.) of investment for the military to determine the best way to make
this complex navigational system work.

The first GPS satellite was launched in 1978. The system reached full
capacity in 1995 when final testing was completed on the 24th satellite
put into orbit.

Yet even before it was completed, GPS was put to its first combat test
in the Persian Gulf War of 1990-91. It quickly became one of the stars
of military campaign. GPS satellites guided a lot of bombs to their
target with unprecedented accuracy. About 10 per cent air-dropped bombs
were "precision guided" although a lot of these weapons were still
directed to their targets by lasers, recall Lieutenant General Michael
Hamel, who heads up the U.S. Air Force\'s Space and Missile Systems
Center. And GPS receivers on the ground helped troops maneuver in the
near-featureless terrain of the desert.

In the more recent U.S.-led invasion of Iraq of 2002, GPS played an even
larger role in military operations. About 70 per cent of the weapons
dropped from the air were precision guided - and "the vast majority" of
them relied upon GPS, said Lt. Gen Hamel.

The U.S. military had originally hoped to keep GPS all to itself - or at
least limit it\'s use by others. But in 1983, when Korean Airlines
flight 007 strayed off course and was shot down over Soviet territory,
U.S. President Ronald Reagan promised that GPS would also be made
available for civilian uses once it was completed. Initially, the
military broadcasted in two satellite signals, a less accurate one for
civilian purposes and a far more precise one for itself. But big
business saw great commercial potential in gaining access to the highly
accurate military signals. Successive U.S. administrations bowed to the
lobbying. The military was eventually compelled to decode its satellite
signals, so everyone in the world can now receive unfettered GPS
broadcasts.

Today, a growing number of consumer products rely on GPS. Lost hikers
can find their way out of the woods with the aid of a hand-held GSP
mapping device. Shipping companies use GSP to track the movement of
goods around the world. And an increasing number of new cars have GPS
guidance systems built right into the dashboard.

Even so, the U.S. Department of Defence maintains total control over the
running of GPS, currently the only fully functional satellite navigation
system. (The Russians had created a GPS system, known as GLOSNASS, but
didn\'t have the money to keep it running at fully capacity.) The U.S.
military still has ability to curtail access to GPS - it can revert back
to coded signals. The European Space Agency has embarked on a plan to
create its own GPS system which would be known as **Galileo**. But the
4-billion Euro price tag to complete the project has been an issue for
the member states.

"Millions of people now rely on GPS," noted Pat Norris, with Logica CMG,
a British-based firm that creates computer soft ware to run space
probes. "There is a feeling, if it is so important, we can\'t afford to
rely on just one source," he added "It would like there was only one
telephone company -- that\'s a monopoly and it makes people nervous."

**European transport ministers unable to agree on financing for Galileo
project**

4 October 2007

[Die Welt](javascript:void(0))

Europe\'s transport ministers have been unable to agree on the financing
for the **Galileo** satellite navigation system, the most important
technology project in Europe. Like the UK and the Netherlands, Germany
is opposed to suggestions that the 2.4bn-euro gap in financing for the
30 satellites and other technical equipment could be filled exclusively
from the EU budget. The German government fears that the compromise that
has been reached on the EU budget for 2007 to 2013 would then have to be
abandoned once again.

The future of the project is now to be discussed at a meeting of
Europe\'s heads of state in December. The European Commission has
proposed that the **Galileo** project could be put out to tender once
again; Germany is also opposed to this, as it fears that more orders
could go to French and Italian companies as a result. The German
government wants the remaining 2.4bn euros in funding to be provided by
ESA, the European Space Agency.

**Russia space troops to launch several satellites.**

4 October 2007

[ITAR-TASS World Service](javascript:void(0))

MOSCOW\--The Russian Space Troops will launch two satellites of the
**GLONASS** system and several military satellites by the end of this
year, Space Troops Commander Lieutenant-General Vladimir Popovkin told
reporters on Thursday. He attended a ceremony of laying flowers at Red
Square graves of Sergei Korolev, Yuri Gagarin and Mikhail Nedelin on
October 4, the Day of the Russian Space Troops and the 50th anniversary
of the Soviet Union's launching the first satellite. "We shall make two
launches in the interests of replenishing the **GLONASS** system, and we
shall also launch several military satellites," Popovkin said.

"During the launch of the first artificial earth satellite, few thought
that the use of outer space will make a revolution in soldiery," he
said. " October 4 is a professional festivity of the Space Troops. Only
the military have been able to create cosmodromes in sands of Baikonur
and in mires of Plesetsk, and to deploy over ten instrumental posts in
the whole country," he said. "Largely owing to military space
exploration, the turning of the 'Cold War' into a 'hot' one could be
prevented," Popovkin said. "We are eyes and ears of the supreme command
at times of peace and war," he said.

**Russia must develop its space exploration**

4 October 2007

[BBC Monitoring Former Soviet Union](javascript:void(0))

Khimki (Moscow Region)\-- Russia needs a long-term space exploration
programme for a minimum of 30-40 years, State Duma chairman Boris
Gryzlov said today at a conference at the Lavochkin scientific
production association.

\"Unique space technologies - this is Russia\'s true competitive
ability,\" he said. \"Today, the main objective for our economy is to
develop high technologies and release them onto the world market. Space
is one of the few sectors where we can resolve an even more ambitious
task - namely, we are capable not \[only\] of selling technologies, but
of \[selling\] high-technological services.\" Specifically research in
the earth surface, navigation, communications and hydrometeorology, he
explained. \"Our country has made huge achievements in fundamental space
research, in the creation of corresponding technology,\" Gryzlov said.
\"Now we must learn to enter the market with all this. Everybody -
officials, structural engineers, scientists - must clearly understand:
success, to a large extent, is determined by how people can use your
achievements,\" he said.

In this respect he recalled the **GLONASS** global positioning system,
which many consumers are interested in including the most populated and
fast-growing countries such as China and India. \"This is a huge market,
and for this reason the full-scale development of **GLONASS** and the
information and communications infrastructure is one of our
highest-priority tasks,\" Gryzlov said.

Meanwhile, he said, it is not always easy for Russian producers to enter
the world market immediately. For this reason they must first and
foremost concentrate on the internal market. But in order to create it,
says Gryzlov, it is necessary not only to create a product, but also to
awaken the Russian buyers\' interest in domestic technologies, for which
new marketing decisions are needed. Ultimately, all this will lead to an
increase in the share of civilian production including in the rocket and
space industry: by 2015 it should increase from the current 20 per cent
to 40 per cent; in that way, taking into account the general increase in
production in the sector - 2.2 times by 2015 - the volume of civilian
production output will increase by over four times accordingly, Gryzlov
said.

**Proton rocket to launch three Glonass satellites Oct. 25.**

4 October 2007

[RIA Novosti](javascript:void(0))

MOSCOW\-- A Proton rocket will launch three global navigation
**Glonass** satellites October 25 from the Baikonur space center in
Kazakhstan, the system\'s manufacturer said Thursday. Nikolai
Testoyedov, general director of the Reshetnev Applied Mechanics
Production Association, said the launch will go ahead despite a recent
Proton-M rocket crash.

On September 6, a Proton-M rocket, with a Japanese satellite onboard,
was launched from the Baikonur space center. However, 139 seconds into
its flight it experienced engine malfunction and second-stage separation
failure, and crashed 40 kilometers (25 miles) southeast of the town of
Zhezkazgan.

Russian experts cleared the area where the rocket\'s booster came down,
after tests revealed that the toxic fuel concentrations in soil samples
exceeded permitted levels. The second-stage crash site in the central
Kazakh steppe was also polluted by the Proton\'s highly toxic heptyl
fuel. Astana and Moscow decided to suspend Proton-M launches from
Baikonur, but Commander of the Space Forces Col. Gen. Vladimir Popovkin
said Proton-M launches would be resumed after Russia compensated
Kazakhstan for any environmental damage caused by the crash.

Last year, a Russian Dnepr rocket crashed on lift off from Baikonur,
after which a special commission was formed to assess the resulting
environmental damage. On the basis of its findings, Russia paid
Kazakhstan \$1.1 million in compensation. Russia is developing a global
satellite navigation system, **Glonass**, a Russian version of the U.S.
Global Positioning System (GPS), which is designed for both military and
civilian use, and allows users to identify their positions in real time.
A total of 9.88 billion rubles (\$380 million) was allocated for
**Glonass** from the federal budget in 2007, and 4.7 billion (\$181
million) in 2006. The system is to become fully operational by 2008.

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