Interview with a student from University of Washington Business School with Hobert Pruitt President of GlobalCom Satellite Communications

Where do you think wireless communication is heading?
The satellite phone industry is going at 30% a year due to customer awareness and demand for emergency and remote communications. In the next few years the level of satellite data communication should grow at a greater rate than the voice communication.

Do you think satellite phones will dominate traditional home phones (cord) or traditional cell phones?
Depending on how that satellite phone industry positions itself in the next number of years satellite phones could take market share away from cellular phone industry. The problem is you must
have an external antenna to use a satellite phone indoors. Globalstar has
tested their CDMA satellite signal over terrestrial communication with success. Globalstar could eventually be able to use cell towers to connect calls while you are indoors and switch over to use the satellite constellation while you are outdoors.

Who are the current customers?
Business owners who travel outside of cellular range, government agencies, basically anyone that needs to stay in touch outside of cellular range. Numerous people who need a temporary need
for a satellite phone rent the units by the week.

Who will be future customers?
I believe the greatest number of future customer will be those who need a data solution for remote equipment that will need to be monitored. With the new Globalstar Duplex and Simplex modems there are endless possibilities for monitoring access in remote location saving the customer money and time.

What technology advancements are necessary for satellite communications to be targeted towards the consumer, or will it always be focused towards commercial use?
The cost will need to lower making it more affordable for the consumer to justify purchasing the phone this will need to go in hand with Globalstar offering terrestrial communication to compliment their satellite communication that is when it will benefit the consumer the most. You will then have a satellite phone that will work indoors and outdoors anywhere.

If consumer satellite phones become reality, what are the pros and cons of Satellite Cell Phone?
Pros are they work virtually anywhere. Currently the cons are you must have line of site of the satellite when using a satellite phone which can require an 80% view of the sky

Will the price of Satellite Cell Phone services go down?
The price of a few of the satellite phones on the market has been dropping for the past four years. The Globalstar phone went from costing $1195.00 in 2001 to the current price of $645.00. During that same period the per minute cost has also came down from 1.99 per minute to low as 17 cents per minute.

Target market: age group, culture (location), and income (pricing). The current target market would include higher income 40 to 50 year old group that has the income and need to purchase a satellite phone to stay in touch with their business affairs.

What companies do you see becoming dinosaurs with the advancement of Satellite Cell Phone technology? (Ex: regular cell phone services (AT&T
Wireless) or telephone line company (MCI)?
The telecoms out there will need to adapt as needs arise. I believe in the next five years will see technological advances that will be 25 times the advances of the last five years. Like with AT&T if you don't change to meet the customer's needs with solutions with a price that is competitive you come in last and get absorbed by the ones on top.

What other visions do you have for the future of wireless communications?
Depending on how the satellite industry positions itself in the next number of years it could become more cost effective for communications to move toward more satellite based devices than expanding maintaining terrestrial communications to meet the demands.

Do you think in the future there will be few large cell phone companies that provide the cell phone service, a large satellite company, and a Wi-Fi
(VoIP) company providing cell phone services?
You have already seen in 2000 where Bell Atlantic bought NYNEX (plus GTE) and became Verizon. Shortly after that SBC and BellSouth Wireless joined ventures and became Cingular. Now Cingular has purchased AT&T wireless and SBC is merged with AT&T. I believe telecom mergers will continue.

Will wireless communication move in one direction or many?
You will see wireless move more in the direction of Internet based solutions browsing email ect. Like European consumers the U.S. customers are relaying more on their cell phones and less on their land-line phones. In more and more homes and businesses the land-line is being done away with. You no longer need to sit by the phone to wait on a call. In the next number of years we may see the same happened to the cellular phones. You no longer need to stay in cellular range to receive a call. I believe a hybrid satellite phone that uses satellite signal while you are outdoors and the same signal over terrestrial wireless systems while you are indoors in seamless connection. I believe this will be the future of wireless technology.

Which cell phone company do you think will be the first mover to converge with satellite phone technology, if any?
Verizon was one of the original partners that started Globalstar. When the limited partnership that made up of numerous domestic and International telecoms dissolved Verizon was no longer partnered with Globalstar. I would believe they would be the first to enter back into a partnership with Globalstar. Globalstar and Verizon both use Code Division Multiple Access CDMA technology so a merger with Globalstar's satellite and Verizon's terrestrial communications could be in
the future. Verizon Australia and Globalstar Australia are partnered.
AT&T, Cingular, Tmobile as well as many other wireless companies have moved to the European standard of GSM cellular technology. GSM is becoming the International cellular technology standard.

The GSM cellular coverage is excellent in Western Europe but have you ever seen the "true" hidden behind in the back room coverage maps of cellular providers that serve the U.S.?
You would be amazed of the lack of cellular coverage there is in the U.S.