To: CMon who wrote (5980 ) 7/23/1999 10:57:00 AM From: Jim Parkinson Respond to
Re: Airtouch's pricing plan, maybe we are making a false assumption on what they will charge in No. Am. The rollout isn't expected until the 4th qtr so a lot can happen between now and then. I called the 1-877-satphone # again yesterday. They had a record of my previous call and assured me that I am still on the "VIP list" for 1st option on a phone. I asked about pricing and was told that the phone was expected to cost between $1,000 - $1,200 and minutes averaging $1.50 in No. Am. Same story. She then asked me to answer a few questions re: my current usage, expected usage, travel plans, etc. I asked her if they were getting lots of calls and of course she said yes. I asked if she was getting lots of training and if there was more scheduled as the svc roll out neared. She said she understood that Airtouch was doing that and that she worked for Globalstar, not Airtouch. So, all the comments on pricing etc. are so far from Globalstar employees, not the SP. I think that is significant. She said they were gathering data from callers like me and the turning it all over to Airtouch. She made it very clear that Airtouch would be setting the prices which have yet to be set. I have got to believe Airtouch is listening to the market, watching Iridium, and if their track record is any indication, will make the right call when they actually have something to sell. It doesn't take a rocket scientist (no offense RS) to realize that if you price a product at or above a failed competitor's in a price sensitive market, you will fail too. I sell steaks and of course I believe mine are at least $5.00 better than Outback's or Morton's but guess what my prices are. I remain optimistic that Airtouch and the other SP's will make the right calls in light of all the data, Iridium, etc. they now have in front of them. BTW, I have yet to speak to an Airtouch rep. I did fill out the form on the web page and recd a prompt mailing telling me they would be contacting me once service commenced. No pricing info was provided. Maurice's pricing arguments are right on and I have some confidence and hope that the SP's are coming up with the same conclusions. Wow do I hope and hope and hope and....
