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

  • Virtual traffic management centres, a new direction in traffic monitoring
    January 30, 2012
    David Crawford picks up a new direction trend in traffic monitoring The surprise winner in the Traffic Management Centre (TMC) category of the recently-announced 2011 OSMOSE (Open Source for MObile and SustainablE city) Awards for European innovations in urban transport, is the Danish city of Aalborg - which doesn't have a TMC. Alternatively, one might consider its 'virtual' TMC as a signpost for the future in medium-sized cities.
  • The Canadian way
    July 16, 2012
    Delcan has developed an ITS project evaluation methodology for Transport Canada. Victor Bruzon explains how it will assist in selecting and managing programmes. ITS projects offer a cost-effective solution for many transportation problems. Individual projects are often not evaluated and such evaluations can be restricted by limited data, the ability of ITS to affect only a portion of the transport network, and by evaluation methodologies that were developed with more traditional transport investments in min
  • IRU report: Money is ‘barrier’ to road safety
    February 20, 2020
    Road safety is being compromised due to lack of money, according to new research by IRU.
  • Bluetooth and Wi-Fi offer new options for travel time measurements
    November 20, 2013
    New trials show Bluetooth and Wi-Fi signals can be reliably used for measuring travel times and at a lower cost than an ANPR system, but which is the better proposition depends on many factors. Measuring travel times has traditionally relied automatic number plate (or licence plate) recognition (ANPR/ALPR) cameras capturing the progress of vehicles travelling along a pre-defined route. Such systems also have the benefit of being able to count passing traffic and have become a vital tool in dealing with c