1 1 Gian Gherardo Calini Head of Market Development European GNSS Supervisory Authority

2 2 GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

3 3 GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

4 4 All players shall benefit from a huge global GNSS market … GNSS worldwide market* revenues Products & services, bn Note: * Enabled market, i.e. including both price of services and devices Source: L.E.K. research and analysis

5 5 A new digital camera on the market has a built in compass, able to geo-tag images as they are captured Source: L.E.K. research and analysis A new watch incorporates a high sensitivity GPS, allowing to monitor altitude, barometric pressure, speed and distance A new ultra mobile PC, just presented in the US, works also as Personal Navigation Device … experiencing a continuing trend of new products and services… A new software able to show nearby points of interest, as well as a capture button to record favourite routes, locations, and voice memos A navigation device specific for the trucking industry, able to provide, specific information (e.g. height restrictions, hazardous materials restrictions, points of interest) A GPS-based waterproof recovery and tracking device, features also always-on cellular communications for security monitoring Nokia has introduced a new series of mobile phones with a built-in GPS receiver with Nokia Maps application and navigation services

6 6 Europe has a significant market share in key sectors of a relatively consolidated market … Market size of EU players by industry Products & services, % Note: * Approximate figures Source: L.E.K. research and analysis Size (bn)* Concentration 0.5 Very High 20 Medium >5 High >80 High 1 Very High >200 Medium Europe is a first tier player within the GNSS industry: In the key segments of services and devices it has a global market share ranging from 27% to 42% Europe has also a strong presence in other segments of the value chain

7 7 … and is therefore well positioned to exploit the benefits brought by Galileo Source: L.E.K. research and analysis Benefits for European firms, users and society Cumulated up to 2030, bn Galileo will bring 63bn of cumulated benefits to Europe up to 2030 Downstream and upstream industries will increase their competitiveness Users will benefits from launch of new services and from increased performance on existing ones Among social benefits, a reduction of pollution as well as increased safety will be the major source of benefits 4

8 8 GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

9 9 FP7 Strategic Objectives 1.Create economic value 2.Ensure EGNOS and Galileo competitiveness 3.Maximise public benefits 4.Project the image of Europe FP7: stimulating R&D towards market and GNSS industry progress

10 GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

11 R&D is a key element in our approach … Generation/ Concept Readiness level of technology, application and ideas Validation/ Demonstrati on Completion/ Operation Awareness programme Network events Business plan contest Marketing Support to R&D Research programmes Joint research Expert network Business incubation Incubation Expert network Test environment Funding Seed funding VC funding JV M&A Entry to Market FP7 focus

12 We concentrate on projects and activities impacting the whole value chain … Device makers require integrated solutions to produce complex products cost effectively Services are becoming key to attract new customers Focus is on applications (more than 50% of FP7 1 st call) which drive the downstream industry Chipset providers Platform & receiver manufactur ers Device manufactur ers Device manufactur ers Content & application s providers Service providers

13 Product Maturity Potential End-to-end Concept Tech. Devp. Regulatory/ legal. Business economics Pre-market trial Road Pricing LBS social LBS innovation Com. Aviation Maritime Rail Timing Security Road Congestion Road VAS Road Fleet mgt. General Aviation Aviation airports Agriculture Road Emergency Downstream markets opportunities have been reviewed… Surveying + -

14 …In the 1st call applications in road, aviation and LBS also via SMEs were addressed … Topic Budget (m) # of projects RoadInnovative GNSS-based road applications - focus on RUC and VAS 2.72 LBSInnovative GNSS-based mobile LBS Applications 2.32 AviationAccelerating EGNOS adoption in aviation - focus on general aviation 1.92 SME/LBS Innovation Open call for focussed innovative projects in mass-market GNSS applications

… while the 2nd call the main theme is to develop downstream markets via public sector adoption … Objectives of the 2nd call Stimulate EGNOS and CDDS use in EGNOS' priority segments (e.g., Aviation, Agriculture) Prepare Galileo introduction in segments with long lead times (e.g., Other Transport) Stimulate EU industry competitiveness in GNSS downstream markets by promoting innovation and supporting SMEs Topics covered Road telematics with emphasis on safety Fleet management and logistics High precision, including agriculture Accelerating EGNOS adoption in aviation EGNOS in rail and maritime Social LBS SAR service Education and and innovation

16 FP7 will also support priority actions to stimulate markets Promoting tools beyond R&D to accelerate market development (e.g. Contests for ideas) GNSS Knowledge hub for Application Developers and Users Galileo and EGNOS users needs monitoring EGNOS Market Entry Actions, including EDAS Beta testing …