Satellite Phones have Transitioned from Commercial Use to Consumer Use

In 2000 the handheld satellite phone industry was in its infancy and had already faced a number of issues it must overcome. At that point the original Iridium satellite phone provider owned by Motorola was bankrupt and not offering service. Globalstar was in the process of rolling out service and at that moment and had its own financial struggles. The Globalstar handheld phone was retailing for $1,195.00 service was at 2.49 per minute. Inmarsat was providing bulky suite case terminals costing $3,000.00 to $10,000.00 each. The primary users of satellite phones in 2001 were government and commercial customers needing satellite voice and data service in remote areas at substantially high cost. At that point the average consumer had just started to be aware there was a satellite phone available. In 2001 GlobalCom had less than one hundred rental phones in their rental pool at the peak of the season. Rental customers were primarily people going on cruises and hunting trips. Rental rates in 2001 were averaging 159.00 a week plus 3.99 per minute.

The satellite phone industry has experienced tremendous changes and growth in the last five years. Iridium was acquired by a private investment group while in bankruptcy for pennies on the dollar. Iridium is back in commercial service via the Iridium satellite network, which was re-introduced on April 1, 2001. Iridium’s sixty-six satellite network is fully operational, providing truly global service. The handsets were retailed at 1995.00 and service was at 1.99 per minute plus 19.99 a month which was at much lower cost than what was offered originally by Motorola. On June 4, 2001 Iridium World Data Services were launched. The service includes Dial-Up Data with a throughput rate of up to 2.4 Kbps. Also, Direct Internet Data with a throughput rate of up to 10 Kbps. In 2006 the Iridium handset has an average street price of 1395.00. Postpaid service starts at 34.95 a month plus 1.49 per minute. Larger package minute plans offer rates as low as 99 cents per minute. Prepaid service has been offered over the last few years averaging $1.09 per minute. In 2000 only the U.S. government was offered Iridium service, now anyone can purchase or rent the Iridium phone and enjoy satellite voice and data service from virtually anywhere on the planet.

Toward the end of 2001 Globalstar drops the price of their handheld phone from 1195.00 to 699.00. Globalstar makes a radical move to complete with cellular dropping airtime rates as low as 17 cents per minute (only pennies on the dollar) for the home calling area of the U.S. and Caribbean. This is an 80% reduction in the price of service making Globalstar satellite service compete with cellular and more attractive to the average consumer. Unlike cellular Globalstar offers customers 100% voice and data service in over 120 countries. June 2003 Globalstar service usage soars in post war Iraq. A large amount of the use is from personal usage of military personnel who owned their phone. December of 2003 Thermo Capital Partners LLC acquires Globalstar and will control the new company providing new funding for the companies future growth. In 2006 GlobalCom now offers the Globalstar handheld phone at 645.00 and Globalstar fixed site units as low as 599.00 each.

Summer of 2006 Inmarsat provides voice and high speed data BGAN service to the U.S. using small portable terminals starting at $1,650.00. Before BGAN service customers had to purchase terminals at $8,000.00 and use the GAN service. The average consumer needing “super” reliable voice and high speed data can now take advantage of these new portable low cost units using the Inmarsat BGAN.

GlobalCom one of the leading suppliers of satellite phones in the U.S. has experienced an average of 30% increase in revenue each year from 2001 to 2005. GlobalCom now maintains hundreds of satellite phones in their rental pool stemming from consumer demand at rates 60% lower than just five years ago. The growth of the satellite phone industry has come from numerous sources which include terrorism stemming from 9/11, Afghanistan and Iraq wars, active hurricane seasons, lower service fees, lower hardware cost and consumer awareness. The public is seeing more of these devices in movies like Miami Vice which came out in the summer of 2006. Growing consumer awareness of the availability of portable and handheld satellite devices providing anyone voice and data service from virtually anywhere will continue to push the growth of the satellite phone industry for numerous years.

E. Moore

The captain has decades of experience in Alaskan waters and can navigate even the most remote areas. And that’s exactly where we headed–> remote, remote, remote. We set off for Alaska, the Juneau area, & boarded an 85′ charter boat. We brought our Globalstar phone and from anywhere, at anytime, the phone was used for a variety of purposes (mostly for daily business decisions, family contact, etc). The clarity of the phone was outstanding. We have ZERO complaints. Absolutely a wonderful service. Regardless of movement or speed, there was no hesitation in the service, nor did we (at any time) say “Hello! Hello! Can you hear me?” as is commonplace with cell phones. But the most immediately rewarding benefit of the phone was provided by life’s circumstances. It happened that we anchored in a “no one will ever find it” cove for the night. The captain lowered the anchor via remote switches & we set our sights on harvesting shrimp. Yes, we pulled up shrimp the next day… but what wouldn’t come up was the anchor. Somehow, it had wrenched itself in the depths below & no amount of strain, backing up, or re-positioning, could loosen the grip. The tremendous force placed upon the pulley strained the heavy chain… so strained that it busted and snapped the pulley at the bow… also damaged the bow. The only solution was to saw the chain, place a bouy on it, & hope for recovery on the next trip out. Enter: Globalstar phone. The tooling of a new pulley, housing, and bow re-enforcement would take approximately four days, which was two days beyond our re-docking and the entry of a new group which had chartered the boat. That is a situation no Captain or boarding guest takes pleasure in greeting. Several calls were made (to & fro) to tool replacements… sizing questions… measurements…a trek in finding the right man, with the right talent (with the time on his hands) to fix the problem. The task, however, was accomplished. The unit was overnighted by air from California to Alaska… it awaited the Captain as we pulled into harbor. Granted, it took some sweat to switch out the units & do the repairs, but the oncoming new guests were never the wiser. There was no lost time, no lost income, no alternate accommodation costs. In general conversation, it was decided that the phone would clearly have paid for itself resolving just that one instance. Additionally, the business use of the phone (owner-to-business site) reaped substantial rewards. And for the ladies? Constant contact with house & children sitters was an absolute comfort. I will never fret over a dropped call. Just a story about life, and about how Globalstar made it better. The benefits of remote communication cannot be undervalued. It certainly has proved its value to me.

E. Moore

John Madden

There’s a lot of land between California and New York, and cell phones just don’t work everywhere. I’ve tried Globalstar in the middle of nowhere, and it sounds great – like a regular phone. This phone works when I need it.

John Madden,
NFL football analyst

Sgt. Steve Jones

Dear GlobalCom,

I just wanted to drop a line about your products and service. I was recently deployed overseas to a remote area. I needed a reliable way to keep in touch with my family so I purchased a Globalstar phone from your company. I was impressed with the great service you provided in getting the item to me in a timely manner. This was extremely important due to the rapid deployment I was facing. After I arrived in theatre a family medical emergency arose stateside. Through the use of your product I was able to coordinate a rapid extraction from the remote area and expedite my travel arrangements back to the States.

>Thank you for providing such outstanding products and service, without it I wouldn’t have been there when my family needed me most.

Sincerely,
Sgt. Steve Jones
United States Air Force

Eric L.

There was no paging or cellular service, so I used the Globalstar phone to call the marina and lake patrol to ask if there were any reported incidents. My Globalstar phone came in handy last weekend while on a houseboat on Lake Mojave, NV. First, my friend’s wife was debating whether or not to go on the trip because she would be leaving their 15 month old daughter with her parents for three days and they would have no way to contact each other should their be a problem. I reminded them that I would have my Globalstar phone with me and they could use it to check in with her parents whenever they wanted to. She agreed to go and used the phone several times (she now wants one). The second incident came when a friend, who took a jet ski to the marina for “provisions,” was an hour overdue. Many of the 16 people on the houseboat became worried and debated whether or not we should pack up and go on a search and rescue. There was no paging or cellular service, so I used the Globalstar phone to call the marina and lake patrol to ask if there were any reported incidents. There were none, but they notified the patrol to be on the lookout for our wayward friend. Fifteen minutes later, he showed up and all was well. Just a couple of “real world” situations where Globalstar service proved its worth.

Eric L.

Larry N.

Last week, I was in an isolated location, quite far from any people or means to communicate with the outside world should an accident occur. I am a fly fishing enthusiast who takes a number of trips during the year to very remote locations where no cellular service is available. I decided to purchase your Globalstar Satellite Phone to take with me on these trips in case of an emergency. Last week, I was in an isolated location, quite far from any people or means to communicate with the outside world should and accident occur. I tested the Globalstar Satellite Phone and wanted you to know how well it works. It has remarkable clarity, and the weight of the phone is quite satisfactory for my fly vest. Your company should find a way to spread the message out to other fly fishermen so that they can get the same protection.

Sincerely,
Larry N.

Sarah

Dear GlobalCom,

I was sure you would like the original paperwork on the purchase we made. I also wanted to thank you for all the time you took giving me the information on the services you offer. It really made a big difference to me that you were able to give me such personal and attentive service. I appreciate it.

Sincerely,
Sarah
Beaty Construction

James

Dear GlobalCom,

The telephone was very useful in the middle of Neirgian Bay, Canada! It sure worked well and we’re very pleased. It’s nice to know technology can be at your finger tips in remote areas!

Thank you for the use!

James

Tohber

Dear Sir

A word about the missing battery. Presently it is at the bottom of the Little Current Lake north of Nabina Ontario, Canada. Above it, in the log-pile is my pinned canoe. While making the call with your satellite phone to arrange for helicopter pick-up, the water-proof phone box started to roll off the log-pile, dumping some of its contents which included the spare battery. Without the satellite phone I would still be in the bush in Ontario.

Yours
Tohber
Birmingham

susan

Dear GlobalCom,

Enclosed is the satellite phone I rented for John. Thank you for your assistance with this rental, we were very happy with the service you have provided.

Sincerely,
Susan
The Pepsi Bottling Group

T. Herndon

This is T. Herndon and I wanted to let you know how your phone worked for me and my hunting trip.The phone was used marginally during the first part of our trip to Alaska but when the bush pilot company didn’t pick us up it was used a lot more. Imagine being us, out there 300 miles from civilization and not knowing if we were going to be picked up! Well, without the sat phone that is exactly where we would have been. The pilot finally got us on Monday afternoon (we were supposed to be picked up on the Saturday before at 11 am and we were picked up on Mon. at 2 pm!)With your phone we kept in contact with all four of our more than upset wives, and children.
Summer, tell all of your people thanks for a job well done!

T. Herndon
Arizona Outfitter

Michael L.

Just flip up the antenna and talk…from anywhere! As an experienced user of satellite telephone services, I can say one thing about GlobalStar. It is not a satellite phone, it’s cellular on steroids! The new “GStar” works just like my cellular phone. No setup required! Just flip up the antenna and talk…from anywhere! Also, the service provides clear connections without the onerous delay associated with most satellite services and no echoes. Just like cellular. The price is reasonable, too!

Michael L.

Mick

Dear GlobalCom,

Enclosed is the Iridium satellite phone, data kit and solar panel we leased from you. I’ll be faxing the paperwork for purchase of the RBGAN unit today.

I really appreciate your help throughout our Iraq adventure and will certainly call you again if we need any other equipment.

Best Wishes,
Mick
The Providence Journal Company

Karen

Dear GlobalCom,

Enclosed is the satellite phone we recently rented. The phone worked great and I appreciate all the help you provided in getting it to me on short notice.

Please feel free to call me if you have any questions.

Thanks again,
Karen
Champion Elevators

Bob

Dear GlobalCom,

I want to take this time to thank you for your assistance in obtaining this phone and service. It has been a seamless transaction and your professionalism as well as your personal attention to our needs especially in making this so easy for my wife is worthy of recognition.

My son received the phone in Baghdad yesterday and was able to talk to his wife for more than just a few minutes for the first time in over 7 months when he deployed to the gulf. In fact they talked for nearly an hour. He called me this morning and he was so upbeat, this alone made every penny we have and will spend a value that will not be surpassed for a long, long time.

The quality of our conversation also far surpassed my expectations, there was no delay what so ever and he might as well have been next door the quality was so good. I want you to know that your efforts have had such a huge and positive impact on people you don’t even know and we are grateful that you were put in our path to help us during this most difficult time of separation.

My son is very much my hero but I would have you stand next to him any day of the week, you to have become a hero in the lives of so many people that you will never meet but you should feel good about yourself and proud of yourself for being an honest, hard working and enjoyable American. Thank you, I hope some day I have the opportunity to give you some portion of what you have given me, my son, my family and his family.

If you ever plan to come to the greater Sacramento area please do not hesitate to call me, I would be more than happy to arrange a comp stay for you here. Thank you Hobert, thank you!!

Bob
Doubletree Hotel

Donna Quinn

Dear Globalcom,

Your equipment was just wonderful. Dr. Bujnoski had no problems, and your are now in receipt of the returned phone. Today I called your office just to verify that, and asked to be sure and send the itemized bill to us as another doctor used the phone on this trip to Tanzania, and we will need his portion of the calls separated out so that he can reimburse Dr. B. Your office was very polite and we were told that the bill will not be received to your office until the middle of next month. This is fine by us, just as long as we do get a copy of the itemization after you have received it. Thank you again for the assistance and the great service and equipment, and we will recommend your company to other clients we have going to Africa with us.

Most sincerely,
Donna Quinn

Katy

To Whom it May Concern:

Enclosed please find the returned international satellite phone. He informed me that it worked perfectly in Argentina. Thank you for your assistance.

Sincerely
Katy
Roger Engemann Company

Mike B.

I recently went fly-fishing in Ascension Bay Mexico and brought along my Globalstar phone. I recently went fly-fishing in Ascension Bay Mexico and brought along my Globalstar phone. Cameras should have been there to see the smiles on everyone who used it, able to talk to their families and friends with crystal clear sound from a remote area of the world. Several of the folks who used the phone said they were going to go out and buy them. Just wanted to cheer you folks on – it’s a great system and hope that it takes off soon!

Mike B.