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

  • National funding cuts cause fragmentation of US ITS market
    February 1, 2012
    Paul Everett, Research Director with IMS Research, looks at how ITS deployment varies across the US and what this means in terms of market potential for systems manufacturers and suppliers At the end of 2010, the US will have a total resident population of close to 310 million, rising to an estimated 439 million by 2050.
  • Kerb your enthusiasm, warns Passport
    March 4, 2019
    Dynamic kerbside management is crucial if urban authorities are to address increasingly chaotic situations caused by the gig economy and mobility innovation, says Adam Warnes at Passport Demand for the kerbside is growing and changing and it’s no surprise when you consider the recent innovations within the mobility industry. For starters, there are new modes of transport, including ride-shares, electric vehicles (EVs), dockless cycles, last-mile consolidations and autonomous vehicles (AVs). Secondly, the
  • Barcelona's bike share scheme a life saver
    January 26, 2012
    A recent study of the health benefits of Barcelona's Bicing communal bike share scheme, reveals it is a life-saver, responsible for saving 12 lives a year. Barcelona's community bicycle programme, Bicing, was inaugurated in March 2007. One of several schemes operated in cities around the world by Clear Channel, it has fulfilled its role of providing an efficient, ecologically friendly and critically important form of transport, helping to increase urban mobility and reduce street congestion. Clear Channel h
  • Making ITS connections requires leadership
    January 23, 2020
    From making the commute more bearable to saving the planet, Jim Alfred of BlackBerry Certicom believes that ITS has the capacity to drive a range of transformational opportunities – but leadership is required, he warns