As a journalist I have never had occasion to write a business plan, but I am guessing that one of the first questions for those who do write business plans is, who needs it?
Iridium can serve as a strong example for the new crowd of wireless-related start-ups. This week, it seems the clock may run out for Iridium. With financing quickly drying up and no savior in sight, the one-time stock market darling seems doomed to a quiet death in space. What an incredible waste.
There are a lot of great ideas out there. Is there really a market to support each great idea?
Iridium seemed like a great idea. Global satellite communications anywhere, anytime. Surely there were plenty of folks who would be interested. The upper echelon is filled with world travelers with plenty of disposable income and the importance to warrant continuous contact wherever they might be. Right?
Technically it worked. $5.8 billion and 10 years in the making, the company succeeded in placing a system made up of 66 satellites in the air. There were plenty of obstacles along the way, including handset troubles and the challenge of setting up country-by-country contractual arrangements. Was this the downfall or was it simply a marketing problem? I suppose you could look at it several ways.
Iridium was counting on the high-tech, high-income early adopter to carry it through infancy and that user just wasn’t there. There are just so many comprehensive low-priced options and choices for wireless users today.
Globalstar launched commercially in the United States this month at CTIA’s Wireless 2000 with an astronaut and plenty of fanfare. Early indications about its success in the global satellite communications arena are increasingly cautious. Low subscriber numbers and dropping prices have analysts standing back a bit.
Globalstar at least is focusing on a seemingly more realistic customer base including users who live and work in areas not covered by other systems. The company also plans to focus on specific industries including utilities, oil, gas, maritime users and the military.
Satellite communications is costly no matter how you look at it. Is this the best/only/most effective communications solution for these user groups? What has Globalstar learned from its competitor’s downfall? What will other companies learn?
Great ideas are a dime a dozen. Is the great idea feasible, does it have staying power, can it be competitive?
It is hard to believe in this fast-paced industry, but maybe some great ideas are just a little bit ahead of their time.
