Of course, by working closely with carrier partners who want their fair share of the profits, Globalstar will only receive a portion of the revenue from its service. This is not a cellphone The company has been careful not to position its service as a competitor to cellular or digital PCS mobile phone services, a potential death knell for getting carriers to sell its service. Cellular will always be cheaper. We're not trying to reach the exotic international traveler who wants to keep in touch across Antarctica. By using a different technology, whereby the majority of call processing and switching takes place at ground stations rather than in space, Globalstar believes its service will be cheaper than Iridium's.
Pricing is always a critical factor.
Although the satellite phone business has had its setbacks and has many hurdles yet to clear, analysts said the growing pains are not unlike those in other nascent businesses. But the firm expects market growth to accelerate after 2000 once new operators join the fray. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Copyright 1999 ABC News Internet Ventures.