The impact of Galileo Open Service on the Location Based Services markets: a review on the cost structure and the potential revenue streams

Many Location Based Services (LBS), such as navigation and tracking services, are using Global Satellite-based Navigation Systems (GNSS). GNSS is the most widely used positioning solution for LBS outdoors, therefore any improvement in the quality of GNSS positioning services will directly improve the quality of LBS and therefore it will generate more revenue and attract more users. One of the upcoming satellite navigation systems is Galileo, which is being deployed by the European Union (EU). Beside all political motivations behind Galileo, the availability of more satellites in view and a more accurate, reliable and continuous positioning service are some of the technological motivations of having yet another of GNSS on sky. Such improvement in positioning service and, as a result, in LBS applications will develop the market and attract more users. However, due to long delays, current powerful competitors which are making the GNSS market increasingly crowded, and also the cost of Galileo being covered by EU taxpayers only, there is a question if another of GNSS is really required and it is able to return all its cost in near future. This chapter assesses the financial aspects of Galileo at the time of writing the book, including increasing costs and impact of losing some parts of market and also its potential revenue and the economic impact of positioning and timing service improvement by Galileo, and finally the impact of Galileo on future markets of LBS is estimated