Globalstar USA goes commercial

The Wireless 2000 show last week became the official launching pad for Globalstar USA's commercial service in the U.S., Canada and Mexico, with international roaming set to begin next month. The company already offers services worldwide.

After battling the stigma that Iridium's struggle has placed on the satellite communications industry, Globalstar USA's phased rollout strategy has paid off, said Mike Kerr, general manager and vice president of Globalstar USA. "The belief has been that satellite does not work. But mobile satellite is not Iridium."

Using bent pipe to provide a low-cost service is a good idea, said Larry Swasey, senior analyst with Allied Business Intelligence. Unlike Iridium, which also had a fixed, low-cost system in mind, "Globalstar [USA] did not just build it all and expect to run with it immediately," he said.

The company has focused on out-of-reach U.S. markets and professionals who work internationally.

"There is much competition among wireless carriers in each major U.S. metropolitan area, so it will be a tough market [for Globalstar USA]," Swasey said. "Although the company will get businessmen and women who do business overseas, it could be a great idea in many markets here, where there are fewer options."

Another competitive edge could be Globalstar USA's price points.

It offers three domestic pricing plans based on a monthly service charge and fees for satellite connection and use.

The Beyond Basic plan is $29.99 per month plus $1.69 per minute of airtime; the Beyond 100 plan includes 100 minutes for $169.99, with additional minutes at $1.49; and the Beyond 250 plan includes 250 minutes for $369.99, with additional minutes at $1.39.