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Globalstar’s U.S. and Canadian units launch service

DENVER, United States-Globalstar USA became the latest Globalstar L.P. partner to launch full commercial service, completing the company’s North American coverage for its mobile satellite phone service, perhaps Globalstar’s most important service region.

Globalstar USA launched at the same time as Globalstar Canada, while Globalstar de Mexico began commercial service earlier.

“Introduction of service in these three North American countries is a crowning moment for the Globalstar worldwide consortium,” said Anthony Navarra, president of Globalstar.

Globalstar USA executives, while excited, reacted more humbly.

“I think like any other team sport, the success of Globalstar is dependent on the success of all the players. We consider ourselves an important contributor to the overall team effort,” said Andrew Radlow, Globalstar USA marketing director. “I think we are going to be a major contributor to minutes of use, whether they originate here or from international roaming.”

As in other regions, Globalstar USA is targeting potential users who work or live in areas not covered by current wireless networks. Industry targets include such remote business operations as utilities, oil and gas, mining, forestry, construction, maritime and military personnel. The company has partnered with several distribution firms currently serving these industries.

The Globalstar tri-mode phone carries a suggested retail price of US$1,500. Accessories include a hands-free car kit for an additional US$1,000.

Airtime pricing is separated into three domestic plans. The Beyond Basic plan is US$30 a month, plus US$1.69 per minute of satellite airtime. The Beyond 100 plan is US$170 a month and includes 100 minutes of satellite airtime, with additional minutes charged at US$1.50. Finally, the Beyond 250 plan is US$370 a month for 250 satellite minutes and an additional US$1.40 for each minute more. The charges do not include international tariffs originating from the United States.

The company also introduced its international roaming rates for terrestrial-based airtime while in cellular or digital mode. Available at this time just in Canada and Mexico, roaming charges will be US$1.80 a minute, plus long-distance and local termination fees, the company said.

Radlow said roaming will be available in Brazil and Europe in March, with additional markets added on a region-by-region basis throughout the year.

Service will be available through a number of distribution partners and resellers, most notably Vodafone AirTouch and American Wireless.

The launch marks a piece of good news for the mobile satellite industry, which for months has been plagued by negative developments in both financial and operational issues. “We’ve held to our schedule for the last year,” Radlow said, admitting the soft launch was a little delayed due to a wait for certain regulatory approvals but that it is completing commercial launch before the end of the first quarter as promised.

Radlow said the soft launch allowed Globalstar USA to test the network against actual users’ expectations. While not providing specific call-completion percentages, he said customer expectations were either met or exceeded. The goal, he added, was to provide similar network quality to existing cellular networks.

In the future, Radlow said to look for data services, both packet and circuit-switched, on the Globalstar network-at speeds of 9.6 kilobits per second-including e-mail, fax and file-transfer abilities. Voice mail will be available to customers in March.

ICO and Iridium

Meanwhile, fellow Global Mobile for Personal Communications Systems (GMPCS) providers ICO Global Communications and Iridium, both of which remain in bankruptcy protection, look headed for different futures.

Teledesic, a satellite-based broadband data venture backed by Craig McCaw, an American wireless entrepreneur, plans to acquire ICO. McCaw had planned to also acquire Iridium assets through an auction, but decided against it after completing an interim financing package of US$5 million that funded operations through 6 March.

“After careful examination of Iridium’s technologies, we determined that there are closer synergies between ICO and Teledesic and the services they will provide customers worldwide,” said Dennis Weibling, president of Eagle River, McCaw’s investment firm.

Iridium secured another US$3 million to fund operations through 17 March.

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