Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Jeffry K. Smith who wrote (11568)	4/7/2000 9:27:00 AM
From: Jeff Vayda	Respond to of 29987

For a quite Friday: Introducing New Satellite Services By Roger Rusch, President, TelAstra Inc. (Thanks Phillips Telecon) Jeff Vayda Transforming the world with new technology has never been an easy task. Humans procrastinate. Older technology survives. Unless obvious benefits stand out, few users will adopt a new idea immediately. Stubborn or reluctant consumers may ignore apparently great inventions or innovations. Most people need time to appreciate a new idea. The telephone was invented in 1876, but it took 70 years before 25 percent of American homes had telephone service. Mobile telephone service was introduced in 1948, but the growth surge in mobile telephones occurred 35 years later. Even then, it took over three years before one million users adopted "cellular" service and after 17 years, only about one American in four uses cellular. The satellite industry is introducing several new services that require consumers to embrace new technology. Mobile telephony, radio broadcasting and broadband Internet access must win over subscribers. There are four factors that must be considered for new satellite services. 1) Economic Advantage - New satellite services must compete effectively with terrestrial alternatives. Customers must conclude that a new service is affordable. This means that the airtime prices must be about the same or even less expensive than terrestrial alternatives to attract users. Ubiquitous service is a major advantage to a small addressable market. The issue is fair pricing. Few disadvantaged users will agree to pay exorbitant airtime or transmission rates. The service quality must be comparable to terrestrial services as well. The service should not have irritating characteristics like call disconnects or service interruptions. Satellite time delay is annoying in the case of telephony. Customers typically abstain rather than suffer inconvenience. 2) Compatibility with Vested Interests - In the complex world of business some customers are also competitors. The satellite industry has been forced to form alliances with competitors. The earliest users of satellites were telephone companies that operated undersea cables in competition with satellites. Later on, cable television services used satellites for distribution. Today, satellites contend with almost every telecommunications service. Actions taken by the giants of telecommunications can have a decisive impact on the satellite industry. 3) Visibility/Selling & Advertising - No product can reach a large market if potential customers don't know that it exits. Advertising was created to preclude the comment: "We have never heard about the service." Iridium did a great job of publicity. Almost everyone knows about Iridium, but fewer people have heard of Inmarsat or Globalstar. We were bewildered by criticism of Iridium for excessive or premature advertising. 4) Social Value/Prestige - In the earliest days of cellular, the mobile telephone became a great status symbol. There was a small industry of ersatz car antennas that created the impression of success for the imposters. The satellite industry has been able to maintain a glamorous image for 40 years. There is a continuing allure to space and satellite activities that is a great asset. I am frequently asked when it will be possible to make a cellular telephone call through satellites. If the mobile satellite services were truly competitive, there would be a reasonable market supplying services to elite buyers. It is possible that we will yet see conspicuous consumption in the less developed regions of the world when somewhat more affordable services become available. Roger Rusch is the president of satellite consultancy TelAstra, Inc. He can be reached at 310/373-1925 or via e-mail at RogerRusch@aol.com.