Galileo Stubs Its Toe, Again
Well, you read it here a number of times before, folks. I predicted this months back and now the French Oops, I mean the European Union (the French are a part of that, aren’t they) is finally letting the cat out of the bag, one paw at a time.
Once upon a time there was a proud country that forgot its heritage. Instead of being happy (and justly proud) of its long traditions in democracy, world leadership and science the French sat around drinking pernod until they got the idea that they should build their own “GPS” simply because the US invented, built and maintained GPS system didn’t have the proper configuration of bars on its flag. I have no idea how much this was influenced by the tottering French telecom giant Alcatel, but since they were a big player in this Galileo fiasco (and are now slated to be a big loser … nothing new there, Alcatel excels at that) I would think they had a pretty important role. The analysis off Galileo’s coming demise is well worth reading, I have quoted a bit below:
Galileo industry partners were expected to pay for two-thirds of the cost of the system and the EU one-third, with the investment paid back by the sale of satellite navigation services, the BBC reported. The BBC estimated the market for navigational services would hit $650 billion a year by 2025.
Despite the alluring revenue stream, (my emphasis .. I must have missed this at the beginning, there never was a revenue stream that wasn’t alcohol-induced) maybe the industry consortium figured out the obvious: Why would anyone pay for precise location and navigation services from Galileo when they could get the same thing free from the U.S. backed GPS system, which is only going to get better.
The Times of London doubts if Galileo will ever get off the ground when it has to compete with free GPS service. “Europe’s desire to offer a competing system has been stymied by the free service provided by GPS,†the Times wrote in an opinion piece. “How do you persuade a minicab driver to subscribe to a Galileo navigation system when he can get GPS gratis?â€
The underlying premise behind my scribbling’s here has been how to get a return on investment (ROI) from GPS. The first way to get an ROI is not to make wasteful and duplicative investments … I think they teach this at the Harvard Business School, but just in case they don’t you can add my tip to your pending MBA folder.
There are many, many ways to not only get a ROI from using GPS technology, but even to earn a profit from providing GPS services (if you really and truly can’t think of any, I’m available for selective consults). But I’ll throw out the next increment in your online GPS MBA … don’t duplicate the existing US investment with your own second-rate after the fact copycat system. The billions and billions of sunk costs won’t be recoverable. Make a business plan out of what is freely available and you too have a chance to make a profit … but you do need a plan.
Anyway, now that all the PhD’s and industry execs have finally reached my non-degreed level of understanding perhaps, if they think the idea through a little better, something will eventually come from Galileo using a different (and sustainable) business model. Maybe they could get Airbus Industries to run it for them? (Incidentally … the “Program Name” for GPS, which is seldom used these days is “NAVSTAR” … relatively innocuous. Did anyone ever research the connotations behind Galileo before they began throwing billion of Euros at the name. Among other attributes Galileo Galilei is renown for is the fact that his contrary and pugnacious temperament has more to do with his persecution than the actual facts the Church of Rome tried him for).
