December 27, 2013: By late 2013 the first European Union (EU) Galileo navigation (GPS or “Global Positioning System”) satellite was built and completed testing. The second one begins testing in early 2014 and both are to be launched by July 2014. In 2010 all four Galileo development birds had gone up and in 2012 eighteen production models were. By the end of the decade 30 Galileo satellites will be in orbit and that will give the network global coverage. Four is the minimum number of satellites needed to provide three-dimensional location information. The four development birds were used to validate the technology and refine the design of the production models.

Galileo came about because the Europeans didn't like being dependent on an American GPS system and didn't believe the Russians would be able to keep their GLONASS system viable. But in the meantime China began developing its Beidou system, which is currently ahead of the EU effort. Galileo is supposed to offer limited service by 2015 but that will be complicated by an unresolved technical dispute with Beidou (both systems use some of the same signal frequencies meaning they can interfere with each other).

If Galileo becomes operational the EU will pay for it but anyone can use it. Dual signal (GPS and Galileo) receivers won't cost much more (maybe 20 percent more) than GPS receivers do. Having two separate sets of signals makes for more reliable and accurate receivers. Also, the way Galileo is being set up, it will provide improved reliability in higher latitudes and in built up areas. The Russians and Chinese are making the same pitch. Thus by 2020, three decades after GPS first appeared, there will be four satellite navigation networks up there, with over 120 satellites and each with slightly different capabilities. In addition India is building a GPS system that will just serve South Asia.

The success of the American GPS satellite navigation system has generated all this competition. But so far these other efforts have found the work much more difficult than expected. The European consortium behind Galileo faces growing costs and technical problems. Initially, Galileo was to be funded with private money. But the costs climbed beyond the most optimistic estimates of future income, so now Galileo is being paid for with tax dollars, as was GPS and the competing Russian and Chinese systems.

In early 2013 China opened Beidou (its version of GPS) to civilian use and expects to grab a major share of the satellite navigation market from the original GPS system by the end of the decade. Currently China has 14 of 35 Beidou ("Compass") navigation satellites in service. This is sufficient to provide GPS type service for all of China. By the end of the decade all 35 satellites will be up and the entire planet will have access to Beidou. It was back in 2008 that China decided to expand its original Beidou 1 satellite navigation system to cover the entire planet and compete with GPS, Galileo, and Glonass. China used the experience from this Beidou 1 experimental network to rapidly build the world-wide "Beidou 2" system.

The Chinese Beidou (“Compass”) network incorporates the best features of the Russian GLONASS and European Galileo systems, as well as items planned for the next generation GPS satellites. With all that, no one has found a way to make a profit off a network of navigation satellites, at least not directly. There are plenty of ideas but no one has yet turned any of those ideas into cash. Moreover, there are problems between the Beidou, Galileo, and Glonass organizations over who should use what frequencies first. Since GPS got into service first no one is contesting the frequencies GPS uses. But the three other players have some problems.

Russia's answer to GPS, GLONASS, was at full strength (24 satellites) in 1996, shortly after the Cold War ended. But the end of the Cold War in 1991 meant the end of the regular financing for GLONASS. Maintaining the system required launching replacement satellites every 5-7 years. By the end of 2002, only seven GLONASS birds were still operational. However, the Russian economy recovered and provided funds for a series of launches in 2003, that increased the number of active satellites to twelve, and that went to 18 by the end of 2007. Russia had 24 GLONASS satellites in orbit by 2011, and had the system fully operational by 2012, making it the first real competitor for GPS.

The money for GLONASS is coming from a Russian government that does not want to be dependent on the American controlled GPS system. But the money is only there because of high oil prices. Most GLONASS receivers in use are actually combined GPS/GLONASS receivers. Russia will have to put billions of dollars into GLONASS over the next few years to get the system fully operational and then spend even more money to maintain the satellite network.