EU trims short list for Galileo satellite deal

IDG News Service - Three groups of companies have been selected to compete for the contract to operate the European Union's Galileo geopositioning satellite network, the European Commission said Friday.
The Eutelsat Consortium includes the space and satellite technology companies Eutelsat SA, Hispasat SA, Logica CMG and AENA. It will compete against the iNavSat Consortium, which includes EADS Space, Inmarsat Ventures PLC and Thales SA; and the Vinci Concessions Consortium, which includes Vinci Concessions SA, Alcatel SA and Finmeccanica.
All three consortia said they are willing to finance two-thirds of the $2.7 billion development project. They were chosen partly on their ability to raise funding, but also on their commercial approach to running Galileo and their design plans for the satellite network, the commission said.
A consortium led by German space technology firm OHB System AG was dropped from the bidding because it failed to measure up to the standards promised by the three finalists, the commission said.
"The preselection results are very encouraging," said European Commissioner for Transport Loyola de Palacio. "The quality of the three tenders selected augurs well for the competitive negotiation phase."
Galileo with be jointly run by one private consortium together with the European Commission and the European Space Agency. The winning consortium will be responsible for the development phase, including the purchase of 30 satellites and the establishment of ground stations around the world.
The commission said preparation work should be completed by 2008, when the system is due to go live. Galileo will lead to the development of a new generation of universal services in sectors such as telecommunications, transportation and agriculture, the commission said.
Unlike the U.S. Global Positioning System and the Russian GLONASS global positioning system, Galileo is intended for purely civilian use, the commission said.