I think I get your point. There already is a global satellite phone system which is profitable, and that's Inmarsat. The problem with the Inmarsat phone system is that it's about the size of a laptop and uses a dish-type antenna, which is small for a dish but not the wire-type we are accustomed to with cell phones. On the other hand, it works, and can be used all over the world. Yesterday I posted a press release which stated that Inmarsat phone calls now cost $1.95 a minute.
G* phones are much smaller, similar to old-style cell phones, but the coverage is much less, and some people who have bought them have posted on the thread that they have had problems with communications.
Clearly, the technology is still very new. My perception is that G* is making the same mistake Iridium made, relying on sales to fund development, coupled with very poor marketing. Inmarsat had the same advantage the Internet had, it was developed with government funding. We've got a long way to go before G* can really compete with Inmarsat in the truly undeveloped world, and in much of the developed world, cell phones are already there. G*'s niche will have to be the area in between, where there is no cellular coverage, and hope its size makes it more attractive than Inmarsat, and that balances out the fact that Inmarsat phones can go anywhere.
Excellent points. Disclosure: not long or short G*. My interest is in broadband satellite internet. I am very interested in the proposed Inmarsat IPO. If G* shows signs of becoming profitable, I would probably buy in. I was long G* and Iridium in 1998, and am glad I sold both in 1999. |
