The Future of the Satellite Phone Market Looks Bright

In the last five years there has been tremendous growth in the satellite phone market. The sales growth GlobalCom has experienced has averaged thirty percent each year for the past five years. Demand for rental units have almost doubled every year for the same period. Due to demands from terrorist attacks, power outages, and hurricanes public awareness of satellite phones has increased. Recently after the 2005 Katrina’s devastation we have seen an increased interest by businesses and government agencies outside the affected area of the hurricane realizing how vulnerable their organizations can be without reliable communications when the local telephone infrastructure is disrupted. But even with this increased awareness the majority of the general public is not aware there are hand held satellite phones available for purchase or rent which would give them voice and data service in areas where no other communications are available.

Globalstar recently introduced the Liberty satellite service plans which are recommended to the customer using the phone during periods of communication disruption. The package minutes on a Liberty plan can be used anytime during the year. The package minutes are not lost each month like with the monthly Freedom plans offered by Globalstar. An additional advantage to the Liberty plans is if multiple phones are activated under one account under the same Liberty plan the minutes are pooled across all the phones. This will greatly benefit the customer where the heavy users can use the majority of the minutes while the light users use a minimum amount of minutes. When the phones are activated on the Liberty plan the phones are ready to use without any notice to Globalstar or GlobalCom.

One of the latest services offered by GlobalCom is the Globalstar Express Data. This service along with the optional data kit allows the customer to access the Internet at speeds that emulate 56K operation. This service is offered free of charge to customers subscribing to any service plan above the Freedom 50 or Liberty 600 plans. The customer would simply use airtime while on line. This increased speed would allow the customer to download files and larger graphics where before was difficult with the native speed of 9.6K.

The new StarFax 100 is another new technology offered by Globalstar which allows the customer to use a standard off the shelf facsimile machines with the Globalstar phone, data kit, and fax service to transmit and receive fax documents anywhere in the Globalstar home calling area. The customer would receive a unique North American fax number along with the North American voice number with the StarFax service. While transmitting or receiving a fax the customer simply uses the home area package minutes included with their service.

GlobalCom is exited with the announcement of a new Globalstar gateway being constructed in Canada which will serve Alaska. Currently Globalstar’s coverage is limited to a small portion of the southeastern quarter of the State of Alaska. This new gateway will allow Globalstar customers reliable communications over the majority of the state where communication is needed due the vast areas where cellular coverage is not available.

Globalstar has offered the GSP-1600 hand held phone for over five years now and is planning a second generation phone. This unit will be smaller and lighter as well as more versatile for the end user offering portable auxiliary antennas for use while in a vehicle.

The future for the satellite phone market looks bright and fruitful. I expect the demand for satellite phones do continue to increase for the next number of years.