Dennis, from my experience in wireless voice and data, the #1 criteria today is coverage. People get annoyed with transmission rates, but they are willing to take slower rates than poorer coverage. With good coverage, they can at least get some connection - and they tend to use wireless when they can't connect to a wire. So, there'd better be a connection. Some day, we'll have great coverage, and great transmission speeds. But it's not available today. I guess with Iridium, it's great that they have great coverage - the transmission speed will catch up over time.
As for GStar and MCOM, I don't know about either's technology - however, I doubt they are compatible - and frankly, I don't think their business plans either - MCOM isn't clear if it wants to go after the home market or the Business market. And frankly, they're a bit player - limited regional coverage and decent transmission speed. THey think they've got a winner. Omnipoint thought the same. Omnipoint thought they'd go after the regional market with their limited coverage. Little did they understand how mobile the American wireless user is - especially in the NE. And even if the American user is not particularly mobile, Omnipoint's competitors are offering superior coverage at similar rates. So, that forces Omnipoint into a lower price bracket and eventually into oblivionn - either drivein out of business or forced to sell out - most probably to a European player. Same with MCOM, going after a regional strategy, and risk getting eaten by forces so much bigger than they, they'll be squashed like an ant. If they had technology that was compatible to others available or under development, then maybe they'd be in a position to be bought out. Also, apparently the large wireless data players have analysed MCOM's business plan and pricing structure and truly believe it's not financially sustainable.
But then, I could be totally wrong - however, when it comes to wireless, I'm generally right a lot more than I'm wrong. |
