Globalstar Hoping to Learn From Iridium’s Mistakes
The first mobile phone network using space satellites is still stuck in bankruptcy court, but the second is confident the reception will be much better when it launches wireless service across North America this week.
Globalstar USA planned to announce today the introduction of service throughout the United States, Canada and Mexico for those who buy a special cell phone that can connect with the 52 Globalstar satellites orbiting the earth.
The service launch follows two months of limited trials designed to avoid the many technological, strategic and financial stumbles that have plagued Iridium since that satellite phone service went live in late 1998.
“Globalstar is approaching the market with some understanding of what befell Iridium,” said Crispin Vicars, an analyst at Yankee Group who is familiar with today’s planned announcement at an industry trade show in New Orleans.
Globalstar USA is owned by Britain’s Vodafone AirTouch, the world’s biggest mobile phone company and a partner in the Globalstar consortium, whose lead investor is Loral Space & Communications.
Iridium, also an international consortium, is led by Motorola, though it may soon fall under the control of cellular pioneer Craig McCaw, whose proposal to pump new life into the satellite company will be considered by a federal bankruptcy court later this week.
Notably, Globalstar is hitting the market at prices well below the sticker-shocking rates first introduced by Iridium, which included calls for up to $9 per minute and a brick-size handset costing $3,500.
While Iridium slashed prices last summer to jump-start its anemic usership, Globalstar’s calling rates are even more aggressive, with a base price of $1.79 per minute.
The handset made for Globalstar by Qualcomm Inc. sells for $1,500, similar to one introduced for Iridium last summer.