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In 1878, the earth's surface was divided into 24 equal time zones, each of 15 degrees of longitude, each corresponding to a time zone. The geographical longitude of zero (and the Prime Meridian) were assigned to the Royal Observatory in Greenwich, near London, England. The time zones are specified by their distance to the east (+) or to the west (-) of Greenwich.

In theory, all timepieces in any particular time zone should be set to the same time. In fact, however, the boundaries of the time zones have been adapted to follow national or regional borders. The time based on the Prime Meridian is also referred to as the World Time or, more formally, the Universal Time Coordinated = UTC. UTC is not suitable for general use because local time anywhere in the world with a longitude other than the Prime Meridian differs from UTC. As the GPS System only transmits UTC World Time, it has to be converted into local time.

Further information at Wikipedia

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