Skip to main content

GPS accuracy concern in US

Pressure is growing in the US over concerns that GPS accuracy could be affected. A coalition has formed that comprises an array of the leading construction equipment manufacturers, GPS technology providers and other concerned bodies including those from the agricultural and airline industries. The coalition claims that up to 3.3 million US jobs could be affected by the threat to GPS accuracy, with an economic impact of some US$96 billion in annual direct economic benefits to the US economy.
April 17, 2012 Read time: 3 mins
Pressure is growing in the US over concerns that GPS accuracy could be affected.

A coalition has formed that comprises an array of the leading construction equipment manufacturers, GPS technology providers and other concerned bodies including those from the agricultural and airline industries.

The coalition claims that up to 3.3 million US jobs could be affected by the threat to GPS accuracy, with an economic impact of some US$96 billion in annual direct economic benefits to the US economy. The threat is said to come from plans by a firm called 2628 LightSquared to install wireless broadband across the US. The firm has plans for some 40,000 base stations across the US and the concern is that the frequency used will be close to that of the GPS signals, causing interference and negatively affecting accuracy.

A study by Dr Nam D Pham of the Washington, DC-based NDP Consulting Group warns of, “…serious economic repercussions for the US economy” if LightSquared’s plans proceed. The study says that the $96 billion figure represents the equivalent of 0.7% of the US economy. This $96 billion comprises up to $87.2 billion in costs to commercial GPS users and up to $8.8 billion in costs to commercial GPS manufacturers. The commercial benefits of GPS are largely enabled by high precision GPS technologies. The study states that the commercial adoption of GPS continues to grow at a high rate and is expected to annually create $122.4 billion in benefits and grow to directly affect more than 5.8 million jobs in the downstream commercial GPS-intensive industries. The study makes clear that its analysis is confined to the economic benefits of GPS technology to commercial GPS users and GPS manufacturers, mainly high precision GPS users, and the economic costs of GPS signal degradation to only those sectors. The report therefore does not capture the considerable benefits and costs to consumer users of GPS, other non-commercial users and military users. The analysis shows that GPS equipment revenues in North America in the 2005-2010 time period averaged $33.5 billion per year and that commercial sales accounted for 25% of the total, while the consumer and military markets respectively made up 59% and 16% of the total. The report notes that the US Government has already invested $35 billion in taxpayer money in the GPS satellite constellation and continues to invest in GPS at a rate of about $1 billion/year.

For more information on companies in this article

Related Content

  • Felix Scheuter, of Haenni Instruments, on effective highway weight enforcement
    September 26, 2013
    Felix Scheuter, managing director at Haenni Instruments, the renowned Switzerland-based mobile scales manufacturer, gives World Highways his views on how best to ensure effective highway weight enforcement The main danger for any road is its gradual destruction by overloaded heavy goods vehicles (HGVs). The more frequently such vehicles use a highway, the faster it is destroyed. Mobile patrol teams using mobile weighing scales are a highly effective way to enforce weight limits aimed at protecting ro
  • Impact of US economic stimulus programme on ITS industry
    August 2, 2012
    Pete Goldin reports on the public sector perspective in this second article exploring the impact of the US economic stimulus programme on the domestic ITS industry The American Recovery and Reinvestment Act (ARRA) was enacted in February 2009 to help stimulate the US economy in the face of global recession. Of measures worth a nominal total of $787 billion, the US Department of Transportation (USDOT) received just over $48 billion with which to promote short-term economic recovery and an additional $1.5 bil
  • Mexico City seeks solutions to improve air quality
    December 6, 2017
    David Crawford ponders prospects for one of the world’s most congested and polluted cities. In 1992, the United Nations named Mexico City as the world’s most polluted urban centre. In the first half of 2016, following the updating of pollution alert limits to meet international standards, Mexico recorded 115 days where ozone concentrations exceeded the acute exposure health limit.
  • Study shows Irish speed cameras provide five-fold benefit
    April 30, 2015
    Ireland’s mobile speed cameras have been shown to save lives and money but face a legal challenge. David Crawford reports. In 2011 the Republic of Ireland introduced mobile safety cameras on dangerous roads which have, according to the country’s first cost-benefit analysis of the technology, saved an average of 23 lives a year.