The announcement was made by Dornier Satellitensysteme GmbH, which is the spokesperson for the first phase. The other founder-member companies are Alcatel Space, Alenia Aerospazio and Matra Marconi Space. The Definition Phase of the Galileo System will be funded by both the European Commission (EC) and the European Space Agency (ESA).

Galileo is a world-wide satellite-based network devoted to precise positioning and timing. End users equipped with receivers will be able to develop efficient value-added services where time and navigation data are required. The Galileo design will permit applications, from mass market to safety critical, which can be addressed to various types of end user.

This joint venture will co-ordinate the activities of its members and the European industrial team with regard to the Galileo programme, and will act as prime contractor for the EC and ESA during the Definition Phase. It will promote Galileo and ensure that, from an industrial point of view, the programme develops through a cost-effective competitive approach.

The venture is open to new members to bring additional capabilities to the programme. It will also be the industrial point of contact for customers and users on this, Europe's global satellite navigation system, and its services and applications.

Under the division of responsibilities between the EC and ESA for the definition phase, the EC is in charge of the overall architecture, including the definition of end user requirements.

The European Space Agency (ESA) will be responsible for the definition of the space segment and related ground segment required for the navigation satellites and their operation. This ESA programme is called GalileoSat. At the end of September the European industry consortium submitted its proposals to ESA and the EC for the Definition Phase, which will run until the end of 2000.

According to current plans, in the operational phase the Galileo System will consist of at least 24 spacecraft in Medium Earth Orbit and some in Geostationary Orbit. Service is scheduled to start in 2005, and the system is expected to be fully operational by 2008.

The partners in the European industry consortium also agreed to assume a major role in the operation of the Galileo System and will be co-operating with the EC on the establishment of a sustainable business through the Public-Private Partnership.

Following the signing of this agreement, it is envisaged that the Joint Venture will be operational before the end of the year.