In recent months the US and the EU have agreed to change the modulation scheme for the new civil GPS and Galileo signals in the L1 band from Binary Offset Carrier (1,1) (BOC(1,1)) to a scheme having the so-called Multiplexed Binary Offset Carrier (MBOC) spectrum, although each system will implement this differently. This paper compares the performance of the new system in a number of areas against the original baseline. It is shown that the MBOC signal offers significant advantages in multipath and tracking performance, while retaining compatibility with BOC(1,1) receivers at the cost of a small correlation loss.