NextNav: GPS Backup Promises $14.6 Billion in Economic Benefits

WASHINGTON, Oct. 25, 2024 – NextNav, a geolocation company, has made a bold case for a terrestrial GPS backup system, saying it could shield the U.S. economy from potential losses of up to $663 million per day during GPS outages. 

Supported by a new economic analysis, NextNav’s latest filing with the Federal Communications Commission underscored the economic and strategic value of dedicating part of the 900 MegaHertz spectrum band to this system.

This proposal, already the subject of industry debate over the need for GPS resilience, now comes with fresh support: an economic analysis commissioned by NextNav from The Brattle Group, which values the proposed system at $14.6 billion for the U.S. economy.

The Brattle Group report highlighted the scale of potential savings from NextNav’s proposed GPS backup. According to the report, a full month-long GPS outage could drive losses up to $31.9 billion. The report also introduced an “insurance premium” estimate, which valued the financial benefit of NextNav's proposed system as $10.8 billion over 20 years. 

GPS – the Global Positioning System – is a U.S.-owned, satellite-delivered utility that provides users with positioning, navigation, and timing (PNT) services.

As previously reported, GPS vulnerability has been a growing concern for the U.S. military. The Brattle Group’s analysis suggested the Defense Department might value such resilience efforts at up to $3.8 billion. This figure was based on comparable investments the military has considered for GPS improvements, specifically for a more resilient, jamming-resistant military signal known as M-code.

Finally, the Brattle report examined the benefits a terrestrial system, working alongside satellite GPS, could offer to first responders. "More accurate location information would improve emergency services and save lives," it stated. "Reducing emergency response times by one minute via improved location accuracy could be valued at $97 billion annually," the letter, signed by NextNav General Counsel Robert Lantz, added.

Federal regulators like the National Telecommunications and Information Administration support the need for a terrestrial GPS backup system like NextNav’s. But they have also raised concerns, shared by the Department of Transportation, about potential interference with critical transportation and infrastructure systems and have recommended further testing to address these issues.