The Economic Lifeline of GPS: A Critical Infrastructure Worth Billions
The Global Positioning System (GPS) has been a cornerstone of modern life for nearly five decades, generating an estimated $1.4 trillion in economic benefits. However, the potential consequences of an outage are staggering, with losses estimated at $1 billion per day. To mitigate this risk, the U.S. Space Force has launched the Resilient Global Positioning System (R-GPS) program, a $2 billion initiative to create a backup network for the current satellite system.
The Importance of GPS: A Utility of Economy and Warfare
GPS is essential for daily life, from facilitating stock market transactions to guiding agricultural practices. Its significance extends to the military, where it plays a critical role in navigation and timing. The existing 31 GPS satellites in orbit are vulnerable to threats from adversaries like Russia and China, making the development of R-GPS a top priority.
Partnering with the Commercial Space Industry
The Space Force has turned to the private sector to develop R-GPS, awarding contracts to four companies: Astranis, Axient, L3 Harris, and Sierra Space. Astranis, a startup that launched its first “MicroGEO” spacecraft last year, sees the R-GPS program as a natural expansion into the market for positioning, navigation, and timing (PNT) services.
Astranis’ Nexus Product Line: A Next-Generation Solution
Astranis is introducing its Nexus product line of PNT satellites, designed specifically for the R-GPS program. These satellites will operate in medium Earth orbit, marking a significant expansion of the company’s capabilities. With $750 million in funding since its founding in 2015, Astranis is poised to capitalize on the R-GPS opportunity, which CEO John Gedmark estimates to be worth multi-billions of dollars.
Accelerating Innovation: The Quick Start Funding Authority
The R-GPS program has benefited from the Pentagon’s novel “Quick Start” funding authority, which enabled the Space Force to move at unprecedented speed. In under six months, the program secured approval, conducted market research, and awarded initial contracts – a process that typically takes three years. The companies will have an eight-month “phase zero” period to develop their designs, with a total budget of $40 million.
A Multi-Billion Dollar Opportunity
The R-GPS program is expected to cost between $1.2 billion and $1.9 billion over the next five to six years, with the potential to deploy up to 24 satellites. Space Systems Command plans to purchase and deploy the satellites in batches of eight, with the first set launching as soon as 2028. As the design reviews conclude, SSC will select one or more companies to move forward with the program into the construction stages. With its experience operating in geosynchronous orbit, Astranis is confident in its chances of success in the R-GPS program.
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