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The European Union plans to have its positioning, navigation, and timing (PNT) system, Galileo, in initial operation in 2008. As envisioned, Galileo will function and perform similarly to the U.S. Global Positioning System (GPS), the preeminent PNT system now in existence. Policy leaders and technical experts have been attempting to find cooperative ways to provide users with the benefits of both systems in the future, but there is concern about the kinds of effects the existence of this new system may have on U.S. economic and security interests. The authors concentrate on the economic impact of competition and cooperation that could result from the implementation and operation of Galileo in the presence of GPS. The competitive environment is defined in terms of system interoperability and/or compatibility, strategies that could be used to foster Galileo adoption, and schedules for GPS modernization and Galileo development. The cooperative environment is characterized as variation on the competitive environment. Information for the study was gathered through literature reviews, discussions with domain experts, and industry surveys. Recommendations for the United States to consider now in anticipation of Galileo becoming a reality are offered.

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