You forget that there is not fierce competition for Loral, Globalstar, and Iridium. No other sytems are on track to being online that will compete against them until after the year 2000. I would agree with you for local cellular, there is fierce competition, but Globalstar and Iridium by-pass this. Remember, Globalstar and Iridium phones are dual mode and only use the Global satellite system when out of the local service area.
The facts remain that there are many underserved markets for telephony in the world, where there will be no land system, and economics don't warrant a local satellite system. however in the context of larger worldwide satellite telephony systems, the demand is there, and it is economical. Also, for the business traveller, no roaming charges and 1 number worldwide has its appeal.
Not a lot of competetition here for another few years, then enough demand that all systems will be maxed out of capacity. That is why Globalstar and Iridium are planning more capacity in there 2nd generation satellites by 2002, instead of 2006 as originally planned. |
