Very interesting. Actually, something similar happened in the US back in 2000, when Clinton turned off something called "Selective Availability" in the US. This program deliberately degraded civilian GPS signals. After SA was turned off, we went from a GPS system that was accurate to a football field-type area to one that is accurate to a tennis-court ish area.
Read more: http://www.gps.gov/systems/gps/modernization/sa/