Globalstar adds Data Mode
Globalstar, the satellite-based, mobile-telephone service, expects to shrug off sluggish sales, partly blamed on the Iridium debacle, with the introduction of Internet-ready data applications on the ground and in the air.
The San Jose, California-based communications service provider, which operates a network of 52 low-Earth-orbiting satellites, plans to launch, from this month, a range of data applications for its customers in North America.
These services also are expected to be offered in its markets in Asia, which include China and Australia, by the first quarter of next year.
Later next year it expects to provide two-way, broadband Internet connections directly to aircraft passengers.
"We hope these new services could make a difference, although it remains to be seen just how data will become important to our customers," senior vice-president for business development Terry Evans said.
"For Globalstar, 2001 might turn out to be a turning point."
Its North American customers are expected to be the first to use various data services, including Internet access, via a portable PC or hand-held communications device connected to a Globalstar handset. Equivalent service is supposed to be available next year in territories using GSM (global system for mobile) communications networks, such as those in Europe and in many Asia-Pacific markets.
In addition, Globalstar modems are supposed to be in production, following successful trials, for special data applications such as remote monitoring and reporting.
These modems are expected to be available commercially soon, with utility companies seen as a large potential market.
Globalstar also has teamed with In Flight Network, a joint venture between media giant News Corp and aviation electronics specialist Rockwell Collins, to provide high-speed, in-flight Internet connection to passengers' laptops, personal digital assistants and the airlines' existing in-flight entertainment systems.
According to Globalstar, its system's CDMA (code division multiple access) wireless communications platform is suited for many data applications.
The company is suffering from the reflected poor performance and eventual bankruptcy of its predecessor in the global satellite-based mobile communications market, the Motorola-led Iridium service.
Iridium became the world's first global satellite phone and paging company on November 1, 1998.
Its network of 66 low-Earth-orbiting satellites combined with existing terrestrial mobile systems to provide worldwide communications.
It filed for bankruptcy protection in August last year, and terminated its service in March.
In all, investors in the company had injected nearly US$5 billion.
"Obviously, our predecessor's problems have not helped us since they have created an additional level of discussion and concern for a lot of people," Mr Evans said.
"People are a little more hesitant, and some are sitting back waiting to see what happens."
Globalstar said its third quarter financial results, to September 30, indicated "continuing increases, but modest system usage and subscriptions".
It has about 22,000 subscribers worldwide. Globalstar estimates that the market for satellite-based mobile and fixed services exceeds 30 million potential subscribers.
Still, Mr Evans insisted that Globalstar had tried hard to get its expansion efforts going.
"In January we forecast to have 26 gateways in full operation by the end of the year. We have got 25 in service," he said.
"We also forecast 123 countries as revenue-generating markets. It turns out we have 109.
"We are not that far off from our plan."
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