Interesting they (Iridium) are talking a more GSTRF model. Surprised they don't have a more formalized relationship with wireless carriers. Maybe that's coming. The cost per minute still works against them here.
That said, Iridium does have the advantage of true global service. My impression is GSTRF is pretty much limited to terrestrial service, and somewhat patchy even there. That leaves a lot of water (and wilderness, for that matter) to cover. Anyone who has been on a cruise knows how expensive (and annoying -delay is awful) it is to use a ship provided satellite link. Yet, while on a cruise of the Mediterranean this fall my sense was that the satellite link was in constant use. It's hard not to check in on the office when it's just a phone call away - even at $10+ a minute. When I think of the number of people taking cruises, and I recall the crowds that jumped on their "handys" (euro talk for cell phone) every time we got near a port, I would think this a very lucrative market for Iridium.
It's still early in the game. I don't necessarily agree with Maurice that Iridium will lose because GSTRF will win. Iridium must learn to market to their strengths. For instance, if you travel between Europe and America regularly, only Iridium can give you full coverage with one dual mode (sat/cell) phone - plenty of GSM cell coverage and true global where the inevitable holes occur. I don't think GSTRF can match that kind of coverage. The key is that I wouldn't want a satellite only phone; but a cell first, true global satellite second makes a very compelling choice. Does Iridium even offer such a phone?
I confess I don't know. If they don't, they should. The statement by Staiano suggest to me they are beginning to draw a bead on an under served market that only they can serve, and learning perhaps that existing wireless carriers are the true source of volume sales.
Sorry for the ramble, but I keep trying to grasp the concept for each system, and as a famous now deceased Minnesota politician once said, "how do I know what I'm thinking until I hear myself say it?" So far, I've got GSTRF as a super cell phone and Iridium as a true global / cell phone combination. I know there are huge additional markets (fixed 3rd world systems etc.) but I'm concentrating now on initial volume users.
Pierre |
