German SME and French launcher win Galileo satellite orders

Germany's OHB Technology will supply 14 satellites for the European Union's Galileo navigation system, while France's Arianespace will launch them.

2014 will be the starting point for Galileo. The first service will be operational by then and will expand with the launch of new satellites. But launches will begin in 2012.

Galileo, designed to compete with the American GPS system, has been plagued by delays and funding shortfalls that were finalized when the EU agreed to finance it with public funds. The system will be compatible with the GPS system. It will adjust and correct the GPS signal to make it more accurate. The system is intended to be global... that's why the designers are working with the Chinese and other partners.

The largest European space program will be led by the Franco-Italian group Thales Alenia Space under an €85 million contract.

OHB won the €566 million satellite construction contract after a battle with EADS. The two companies will continue to compete for contracts for future batches, likely between 8 and 18 satellites. OBH, a German SME, scored a "coupe" in this operation by winning this large contract. Observers joked, "The drugstore won against Carrefour." The EU prioritized the best value for money. OHB shares rose 10.4%.