The reduction of gravitational pull causes the satellite clock to run faster than Earth by 45 micorsecond a day. The movement of the satellites on the other hands slow down their clock by about 7 msec a day. This gives a net effect of 38msec a day slower for clock in satellites.
GPS positioning works by measuring the time it takes for a signal from the device on the ground to bounce off a satellite and returns. As each msec delay is translate to about 300 meters. The time difference, if not correct, will cause positioning problem of 10km each day.
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