If LightSquared is to be believed, the problem is that commodity GPS makers did not take adequate precautions against interference.
Of course, it's also a question of money - from the GPS manufacturers' perspective, they will have to assume all the costs while LightSquared derives the benefits. From LightSquared's perspective, they paid to acquire their spectrum while the GPS manufacturers get access to government infrastructure for free and are effectively blocking access to a significant chunk of spectrum just to reduce their per-unit costs.
If you're thinking that these operational constraints sound a lot like the performance envelope of a guided missile, then gosh, you're right. IIRC, unlocked GPS recievers are classified as MTCR category II dual-use missile related components, with the usual suite of import restrictions.
EDIT: Looked it up[1] for... some reason, and yep, category II, item 11, section A.3:
b. Designed or modified for airborne applications and having any of the following:
1. Capable of providing navigation information at speeds in excess of 600 m/s;
2. Employing decryption, designed or modified for military or
governmental services, to gain access to GNSS secure signal/data; or
3. Being specially designed to employ anti-jam features (e.g. null steering
antenna or electronically steerable antenna) to function in an
environment of active or passive countermeasures.
So, in fact, it's just the speed restriction. The numbers I have are probably from some American arms-control law, not a MTCR restriction.1: http://www.mtcr.info/english/MTCR-April2011-Technical-Annex....
Some manufacturers misinterpreted the restriction. Instead of OR it should be AND.
If you look around high altitude balloon forums, they usually maintain a list of good gps chips(stop working at 500m/s AND 18km instead of 500m/s OR 18km).
*3. Being specially designed to employ anti-jam features (e.g. null steering
antenna or electronically steerable antenna) to function in an
environment of active or passive countermeasures.*
I find this one slightly annoying. So no matter what, you can't connect an electronically steerable antenna to a GPS receiver and export the resulting device?So you can export it, it'll just be really expensive to do so, and they won't want you to sell them to terrorists.