Firm to offer pocket-sized satellite phone in N. America

Reston, Va.-based satellite firm TerreStar Networks is gearing up to launch a smartphone and phone service this year that is to combine terrestrial wireless service with its upcoming satellite service.

Under a deal the company has inked with AT&T, TerreStar users will have their calls directed either through that carrier's network or through TerreStar's service. Make a call that's in range of one of AT&T's towers, and AT&T's network will handle it. But if a customer travels outside the AT&T network's range, that call will be routed to TerreStar's new satellite. You'll never get stuck without phone service in a “dead zone” again, goes the pitch.

“It's a terrestrial or cell tower in the sky,” TerreStar president Jeffrey Epstein said. “That's the game-changing paradigm we're bringing.”

If all goes according to plan, TerreStar will launch the satellite that will host its upcoming service this week from French Guiana. The US$300 million satellite will sit 22,000 miles above the earth's surface and provide coverage across the United States and Canada, including Puerto Rico and Hawaii. After a few months of testing, TerreStar intends to commence service later this year.

Until now, satellite phones have been bulky devices known for their large antennas. That's because for a satellite phone service to connect properly there needs to be a large antenna on the ground or a large satellite parked in the sky. To attract customers with a pocket-sized phone that they could carry anywhere, TerreStar opted for the latter with its upcoming service. With a 65-foot span, TerreStar's new bird will be the largest-ever commercially launched satellite, about twice the size of typical TV service satellites. TerreStar is hoping to first address a market of federal agencies and emergency first-responders who need to know that they'll always have service, even in the event of a Katrina-like disaster that knocks out cell towers on the ground. If there's an emergency or a major event in one part of the country, TerreStar would be able to adjust its coverage so that, say, an area in Arizona has enough capacity to support increased phone traffic.

The company's larger ambition is to build a market for its satellite phone among mainstream consumers, but TerreStar has not yet announced how much it will charge for the service.

Analysts say that TerreStar's success isn't a given. After all, other companies in the past have tried and failed to bring satellite phone service to mainstream consumers.

“I'm a little bit of a skeptic on this,” said Edward Jurkevics, principal analyst at Chesapeake Analytics in Arlington, Va., who pointed to early satellite phone industry failures such as Iridium and Globalstar.

Jurkevics questioned the size of the market that might be interested in this product. “It think it's a niche play,” he said. “Their revenue prospects are modest. If you're a geologist out in the wilds of nowhere, you still need a connection, but that's not a big a piece of pie.”

TerreStar will soon face competition in this space; Reston-based satellite firm SkyTerra plans to launch two satellites next year and a similar service.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos Respond to this email