1. Current and Potential Economic Benefits of GPS Joseph H. Bogosian Deputy Assistant Secretary for Transportation and Machinery International Trade Administration U.S. Department of Commerce December 2003

2. Why the Commerce Department? Primary mission: promote commercial market growth and tradePrimary mission: promote commercial market growth and trade Largest constituency of GPS usersLargest constituency of GPS users National Continuously Operating Reference System (CORS)National Continuously Operating Reference System (CORS) Radio spectrum authorityRadio spectrum authority

3. Agriculture Commerce State Interior NASA Joint Chiefs of Staff Interagency GPS Executive Board DefenseTransportation

4. U.S. Policy Promotes Global Market Growth Free signalsFree signals Open documentationOpen documentation No licensing feesNo licensing fees StandardizationStandardization Selective Availability endedSelective Availability ended ModernizationModernization

5. Commerce Department Roles in Fostering GPS Market Growth Promote U.S. GPS policyPromote U.S. GPS policy Prevent/eliminate trade barriersPrevent/eliminate trade barriers Publish market statisticsPublish market statistics Keep track of industryKeep track of industry Promote opportunities for market developmentPromote opportunities for market development Represent industry within USGRepresent industry within USG

6. Commercial Applications Dominate the GPS Market 2000 Revenues from GPS Equipment Sales Source: DOC, 1998

7. Worldwide GPS Hardware Sales Exceed $9 Billion Per Year $Billions (Projected) Source: DOC, 2001

8. GPS Sales by Geographic Region 1998 Asia 2% Other 1% Japan 47% U.S. 32% Europe 18% 2003 Asia 2% Other 1% Japan 44% U.S. 30% Europe 23% Revenues from Buyers in Different Regions Source: DOC, 1998

9. Current Uses of GPS Technology TransportationTransportation –Automotive –Rail –Maritime –Aviation –Space IndustryIndustry –Agriculture –Construction –E-Commerce/Finance –Electric Power –Engineering –Fishing –Forestry –Manufacturing –Mining –Oil & Gas –Telecommunications GeographyGeography –Surveying –Mapping –Geodesy –Geographic Information Systems –Land Use Planning RecreationRecreation –Consumer Electronics –Hiking/Geocaching –Boating/Fishing –Sports –Tourism Science & EnvironmentScience & Environment –Weather Forecasting –Pollution Monitoring –Ecology & Wilderness Conservation –Toxic Waste/Oil Spill Cleanup –Animal Behavior –Disease Control –Geological Change Monitoring –Archaeology –Time Transfer MilitaryMilitary –Force Deployment –Logistical Support –Vehicle Navigation –Smart Munitions

10. New Commercial Applications Are Developed Every Day Open pit miningOpen pit mining Child safetyChild safety Automatic snowplow guidanceAutomatic snowplow guidance Spacecraft controlSpacecraft control Power grid managementPower grid management

11. Huge Potential Exists in the Market for Value Added Services Software developmentSoftware development Embedded applicationsEmbedded applications Localized GIS databasesLocalized GIS databases Internet integrationInternet integration Wireless marketsWireless markets Location-Based ServicesLocation-Based Services

12. GPS Modernization: DOC Roles Helped collect and advocate civilian user needs for the future GPS serviceHelped collect and advocate civilian user needs for the future GPS service Early proponent of three civil signalsEarly proponent of three civil signals Participated in the design and frequency selection for the two new civil signalsParticipated in the design and frequency selection for the two new civil signals Led studies and analyses demonstrating the economic benefits of GPS modernizationLed studies and analyses demonstrating the economic benefits of GPS modernization Endorsed high-level recommendations to the White House to deactivate SA and accelerate implementation of civilian capabilitiesEndorsed high-level recommendations to the White House to deactivate SA and accelerate implementation of civilian capabilities Participated in Congressional outreachParticipated in Congressional outreach

13. Cooperation with Europe: Commercial Issues at Stake Compatibility/InteroperabilityCompatibility/Interoperability NondiscriminationNondiscrimination –Access to Galileo signal specifications –Access to markets

14. United States GPS Policy “Our goals are to: …Encourage private sector investment in and use of U.S. GPS technologies and services.” “Our goals are to: …Encourage private sector investment in and use of U.S. GPS technologies and services.”

15. For Further Information IGEB Executive Secretariat U.S. Department of Commerce www.igeb.gov ExecSec@igeb.gov (202) 482-5809