Dutch bring satellite plans crashing down to earth

EU transport ministers voted the project E200m (£124m) in development funds, but whether it is to come to fruition will depend on private sector funding.

The system will allow users to track their locations to an accuracy of one metre, using a network of satellites, as an alternative to the similar GPS system, run by the US Department of Defense.

Aircraft and telecoms companies are expected to be the main commercial users.

However, Dutch minister for communications and public works Tineke Netelenbos, doubted the ability of European companies to provide this funding, according to the Financial Times.

In the report, she warned that the telecoms companies involved face serious financial problems, due in part to crippling UMTS licence fees.

The future of the project should become clear by the end of the year, when private sector companies have to decide how much to pay for the service and EU ministers will determine future levels of public funding.