The European Space Agency (ESA) signed a 950 million euro ($1.2 billion) contract with Galileo Industries GmbH for the development and in-orbit validation of the Galileo satellite navigation constellation’s first four satellites, Alcatel announced Jan. 19.

The contract was signed in Berlin at the Ministry of Transport by Giuseppe Viriglio, director of EU and industrial programs at ESA, and Gunter Stamerjohanns, CEO of Galileo Industries, a consortium of Alcatel Alenia Space, EADS Astrium GmbH, EADS Astrium Ltd., Thales and Galileo Sistemas y Servicios (GSS), a consortium of 7 Spanish companies.

“Only a unified Europe made Galileo possible and in return Galileo now makes Europe an even stronger reality,” Serge Tchuruk, Chairman and CEO of Alcatel, said in a statement. “Galileo will open up numerous business and job opportunities for small and large companies as well as for new start-ups across Europe.”

The Galileo In Orbit Validation Elements-A (GIOVE-A) test satellite began transmitting signals Jan. 12. The second demonstration satellite, GIOVE-B, is scheduled to be launched in April aboard a Soyuz rocket.