Globalstar USA Introduces Satellite Phone Service

During the limited-service phase, customers can purchase Qualcomm tri-mode handsets and satellite phone service, as well as activate the cellular mode of their handsets. The limited-service period provides the company the opportunity to make final adjustments to its network and operations before full commercial service. All limited-service phase customers will receive as much as 50% off their satellite phone bills until Feb. 15.
"The purpose of this phase is to fine tune our business processes, such as billing and customer care, so that the network can be further refined," said Mike Kerr, vice president and general manager of Globalstar USA.
The company's target audience consists of individuals needing cellular service in those areas not currently served by wireless providers. It will focus on industrial vertical markets, including utilities, natural resources, mining, maritime, government, and transportation.
Phased Rollout
The first phase in the three-phase rollout plan was a user trial period in November and December 1999, during which the company's distributors and potential key customers tested the service free and provided feedback. Globalstar USA received official approval on its FCC license in late December, leading to the second phasethe ensuing limited-service offering. The final phasefull commercial serviceis scheduled for later in the first quarter of 2000.
Agent Pricing Plan
In other news, Globalstar USA also its domestic agent retail pricing plan (see figure). The three-tiered plan is based on a monthly service charge and fees for satellite network connection and use. Globalstar handsets are expected to retail for approximately $1,499.00 in the U.S.

(1) This does not include land-based international long distance charges and local termination fees, which are set by the customer's designated long distance carrier.
Satellite Phone Service
The Globalstar system is a 48-satellite constellation that provides mobile satellite service, extending the coverage of today's analog and digital wireless. The system will eventually offer data capabilities, allowing for e-mail and short messaging.
To date, 40,000 Globalstar phones (both tri-mode and dual-mode) have been produced and distributed to service providers around the world, and friendly user trials, as well as soft-launch programs, have been underway by the company's service providers for several weeks in a number of other countries.