Roaming Empire
SPS or satellite phone services are booming with an estimated market value of US $350 million in wholesale revenues. This is a market that should grow and is predicted to do so. Third party researchers are estimatingUS$500 million in wholesale revenues by 2010. This is a cut throat industry with many of the voice service providers in their own comfortable seat.
Inmarsat is the new kid on the block in the mobile satellite phone market. They believe that they are bringing a compelling product to the market. They have been observing the market closely and learning and studying the successes and failures of the competition. They have also spoken with handheld customers to get a feel on what the customer wants to see out of the industry. Even with the competition Inmarsat hopes to command at least a 10 percent piece of the market in handhelds by 2010. The IsatPhone and the pathway to fully modernized, global service they hope to “blow their socks off.” Inmarsat has renewed their satellite fleet. The competitors, Globalstar and Iridium, are facing some degradation issues. There is a large question mark over Globalstar’s ability to finance the next generation network and to provide dependable service for its current customers right now. Possibly a sole competitor, Iridium also has an aging satellite fleet and also has failed to show where the US$2 billion that is needed to finance their next generation of satellites. Inmarsat is boasting that they can provide reliable service for the next 20 years.
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