It's been a dicey proposition from the start, but the stakes are even higher now because delays in getting networks up and running have allowed competing technologies to catch up. Standard wireless phone systems, for example, have expanded to cover geography previously only served by satellite phones. Voice transmissions from the phones are sent to satellites and then bounced to ground stations, or gateways, where they are then routed into the local phone network and transmitted to their intended destination. Still, Globalstar is confident that there is a large enough market to make satellite phones a profitable business. There are more than enough customers to fill out our system, at which time our return on investment will be superior to cellular.
Some analysts agree.
Unlike Iridium, which concentrated on globe-trotting executives who needed to be in constant contact with the office and could pay the high fees Iridium initially charged, Globalstar is targeting a broader audience. In the United States, for instance, it will market to outdoors enthusiasts who want the security of a cell phone while backpacking in the wilderness or rafting down some remote river. It will also try to sell to companies involved in mining, oil exploration and even commercial fishing, whose employees work in areas not served by regular wireless service. The demand for telephone access anywhere in the world is just not that great. Let us hear from you.