Clinton Will Let Business Widen Use Of Satellite System

By Asra Q. Nomani

Staff Reporter of The Wall Street Journal

Washington-- President Clinton is expected to sign a directive today phasing out restrictions that The Pentagon had placed on civilian use of the government's sophisticated satellite-navigation system.

The new policy, which would grant expanded use of the system to U.S. airlines, auto makers, and other commercial enterprises, is expected to be unveiled formally by Vice President Gore tomorrow. The satellite technology can pinpoint the location of users anywhere in the world, from the skies to the golf courses.

The Pentagon's restrictions, based on national-security concerns, have limited the accuracy of the satellite-navigation system, reducing it's uses for civilian purposes and raising a concern among potential foreign buyers that the military's control on the technology was too tight. The new policy follows a recommendation from Rand Corp., which estimated the satellite-navigation industry is likely to grow to $8.5 billion a year by the end of the century from the current $1 billion.

The policy shift "will be a huge boost to business," said Frank O'Mahoney, a spokesman at Trimble Navigation Ltd., a leading maker of the small, portable radio receivers that are used to pick up information from a 24-satellite network, enabling the users on land , sea, or in the air to pinpoint their exact location. For example, drivers can figure out how to avoid traffic jams by using car-navigation systems based on this technology.

The announcement isn't likely to mean much to the makers of satellites, because the U.S. and commercial users will continue to use the 24 satellites that are already in orbit. Other potential commercial beneficiaries on the ground include Rockwell International Corp., Sony Corp., and General Motors Corp.

Another important feature of the new policy is that it apparently rejects proposals that the U.S. charge fees to users of the satellite technology, which started in the 1970's as a Defense Department project. Prepared by The White House Office of Science and Technology Policy, the policy means that the U.S. will continue upkeep of the satellite system without curbing or charging for commercial use.

A White House Official said, "This new policy will do a better job of balancing national-security needs with civil and commercial-sector uses" for the satellite-navigation system.

"It's long overdue," said Marvin White, General Manager of the commercial division of Etak Inc., a Menlo Park, Calif., unit of News Corp., which sells the technology to users such as ambulance services in Albuquerque, N. M., Kansas City, MO., and Baltimore. Other Etak customers include the makers of car-navigation systems such as Motorola Inc. "We would be delighted with a phase-out of military restrictions on the signals," Mr. White said. "That would make using maps and navigation equipment less expensive," because users would need one receiver instead of two receivers to unscramble satellite signals.

The Federal Aviation Administration and U.S. carriers are expected to increase the use of the system for air-traffic-control needs, and are already experimenting with it in The Pacific. UAL Corp.'s United Airlines and others have been investing in the system for their flying operations over places such as Russia and China, where language difficulties often hinder air-navigation efforts.

Car rental companies such as Hertz, Avis, and National have already been experimenting with navigation systems. Proshot Golf Inc., Newport Beach, Calif., just signed a deal with Trimble to develop advanced satellite-navigation parts for golf products; already, it uses the technology on golf carts to tell golfers how far they are from the green.

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