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GPS is a ring of satelittes in space put up there by the American military which also allow use of the system to cilivians - they can however turn it off at the flick of a switch.
http://gps.engadget.com/entry/1234000303023896/
Some GPS Facts
Here are some other interesting facts about the GPS satellites (also called NAVSTAR, the official U.S. Department of Defence name for GPS):
The first GPS satellite was launched in 1978.
A full constellation of 24 satellites was achieved in 1994.
Each satellite is built to last about 10 years. Replacements are constantly being built and launched into orbit.
A GPS satellite weighs approximately 2,000 pounds and is about 17 feet across with the solar panels extended.
Transmitter power is only 50 watts or less.
What's the signal?
GPS satellites transmit two low power radio signals, designated L1 and L2. Civilian GPS uses the L1 frequency of 1575.42 MHz in the UHF band. The signals travel by line of sight, meaning they will pass through clouds, glass and plastic but will not go through most solid objects such as buildings and mountains.
There's no alternatives cheaper then using GPS - afterall the biggest cost is picked up by the Americans