Globalstar will spend a more modest $40
million by June of next year, hoping to
capture customers in narrow markets like
fishing fleets and oil rigs. "I spend every
waking minute being 180 degrees opposite"
from Iridium, says Andrew Radlow,
marketing chief at Airtouch Satellite,
Globalstar's U.S. provider.
Hey Andrew--if you are reading this, I say "BULLSHIT!" You are nowhere near 180 degrees opposite Iridium--more like 360 degreees. Your prices are higher. Your initial marketing steps are brutal. Take another look at your degree wheel.
That service orientation is critical, because
wireless carriers stress revenue generation
over cost recovery. Globalstar will start at
half Iridium's initial price, with phones
costing $1,500 and calls pegged at $1.50 to
$3 a minute. If consumers balk or
competition rises, Globalstar is ready to cut
prices 50%. Letting the carriers drive
Globalstar, even though Loral Space holds
the biggest single stake, was "a major pain
in the backside," Schwartz says now, "but
it's been a critical differentiation."
Pssssssssst. Hey--G*. Let me let you in on a secret. CONSUMERS WILL BALK AT $1500 PHONES AND $1.50-$3 PER MINUTE CHARGES. Pull heads out of sand and face up to it. Do it NOW. Don't waste time and precious cash trying to milk the customer. Adjust the price and sstart off with a bang. There is no alternative.
Staiano also matched Schwartz in
competitive carping; at an industry dinner
he bet Schwartz $200 that Globalstar would
fail to start service on time this year.
Pay up Bernard.
Despite his partners' caution, Schwartz,
never short on bluster........
Bluster, spin, whatever--you can say that again.
Loral's Schwartz says he is unfazed by the
challenges and that his service partners are
ordering more phones in anticipation of a big
buildup next year.
Right. How many phones have they ordered? I don't need spin--I need numbers. How many phones have they ordered and when will they be delivered? It is time for truth. I am spin resistant now. |
