Not including myself in the "GPS expert" group, and with no idea what the companies are doing, this is what I understand:
If you have a known point (Total ?) which coordinates are known to high level of accuracy, you can measure the difference between these and the GPS reading at this point. You can assume that this delta is valid for all area in the vicinity of the known point, so by adding or subtracting the differences, you'll get coordinates with accuracy which is very close to that of the known point. If the known station transmites the difference continuously and you use the real time difference, it is called DGPS (Differential GPS).
It will be smart to use the correction only partially as you go away from the station, but I don't know the ratio.
Also I don't know for how long the difference is valid, if you do not update it in real time.
and there are many other things that I don't know...