Globalstar giving subscribers new voice features and faster data downloads

December was a busy month for Milpitas CA-based Globalstar Inc. The satellite voice and data services provider launched its first new handset in more than five years, and signed a deal with Alcatel Alenia Space for a second-generation constellation of 48 low earth orbit (LEO) satellites, with launches slated to begin in 2009. The deal is valued at slightly more than $1 billion. The second-generation constellation, designed to last 15 years, is expected to integrate with - and eventually replace - Globalstar's current satellites. Newer satellites will also be backwards-compatible, providing continuity between older and new products and services. There are still eight first-generation satellites to be introduced into the constellation, and they are scheduled for launch in early 2007. Alcatel Alenia Space was responsible for Globalstar's first-generation constellation payloads, structures and integration, and is currently conducting pre-launch preparations for the eight satellites in Rome. Terrestrial wireless service providers have in recent years increased the speed of their networks, and the satellite carriers are starting to do the same. Globalstar's LEO satellites are expected to enable faster data transfer and improved network management for integrated terrestrial applications, video streaming and broadband data service. "We've been holding meetings across North America with customer groups, and one thing that comes out loud and clear for us is that people want much faster data rates than we provide today," says Steven Bell, senior VP of international operations. The second-generation satellites will provide just that. According to Bell, nearly 80% of Globalstar's revenue stems from voice applications, but data services are gaining momentum and popularity and account for an increasingly larger share of their bottom line. "We expect to be able to grow our business by 40% to 50%, year after year, on data services," he says. The LEO satellites are also being engineered to support a variety of potential handset services such as push-to-talk and multicast networking, as well as handle increased traffic. "Our devices are often used for emergency situations," explains Fintan Robb, senior marketing manager at Globalstar. "We want to be able to handle more service at peak times...times of emergency. Remember 9/11 or the blackout of 2003 - that was a challenge. Cellular phones were basically running busy." But satellite phones, he adds, worked well. Bell expects the new constellation will bolster revenue, but he doesn't expect to attract conventional wireless users. "Our business plan is very niche market." Globalstar won't, he says, "eat away at cellular companies' subscriber base." "Globalstar is the most affordable satellite system in North America," says Robb, but satellite phones remain out of reach for conventional wireless users. A heavy usage plan of 4,000 minutes per month nets the lowest per-minute rate: 16 cents, or a $650 monthly bill. While handsets have reduced in price significantly - from over $2,000 a few years ago to as low as $849 now - they're hardly a bargain for average wireless users accustomed to carrier giveaways and low cost handsets. "Our core business is definitely involved with major industries such as oil, forestry, mining, fishing and also the government sector," explains Robb. Globalstar is aiming to increase their presence among remote recreational users however, and the company has introduced a new handset that will appeal to a larger user base. Their new GSP-1700 is being hyped as the world's smallest, lightest satellite handset for use on a global satellite network, weighing in at just over 200 grams. Manufactured by San Diego-based Qualcomm, the handset incorporates its' MSM6500 chipset solution for EvDO networks. The GSP-1700 offers data speeds of 9.6 kbps and an increased battery life of four hours of talk time (36 hours of standby). The 1700 comes in copper, silver or red and is built to sustain the elements- operating anywhere from -20 C to more than 55 C. Bell notes that overall future growth might come from the leisure market - the hunters and snowmobilers for example. "People who are in remote areas, at hunting and fishing lodges, get real benefits from our products. We expect to be able to grow that market more aggressively than we have in the past, by reducing prices," he says. Growth in this market segment will also be bolstered by lower prices, which Bell predicts will happen. "The potential for a more mainstream market is there (with the GSP-1700). When you're hunting or snowmobiling you want to keep your weight load as low as possible, and keep connected," says Robb. Globalstar is offering additional GSP 1700 support products, such as a maritime and in-car installation kit, and satellite phone accessories enabling both land-based and marine applications. But at a retail price of $995, only the most dedicated recreational adventurers will be intrigued. The company's voice products are used for emergency communications in some of the most inaccessible parts of the world; Globalstar's network operates throughout many parts of the world - from the rainforests of South America to the frozen tundra of Siberia - with the exception of Africa, Asia and the polar caps. Their data services enable subscribers to monitor remote data, track assets and run SCADA applications. "If you attach one of Globalstar's data modems to an oil well, you can monitor it from say, Calgary or Toronto," instead of actually visiting it in the field, explains Robb. "SCADA applications, which are kind of controlling these oil wells, can turn them on and off from remote distances," using the Globalstar network as the pipe for the oil well data.

Globalstar giving subscribers new voice features and faster data downloads

News | January 11, 2007

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