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Researcher says Internet is future for satellite business

CHESTERFIELD, Mo.-Referring to the failure of Iridium L.L.C.’s satellite phone service and the continued growth of OmniTracs’ Internet-based satellite tracking service, a report by Datacom Research Co. and Farrar & Associates concludes that the Internet, rather than telephone applications, is the future for satellite communications.

“The Internet is creating myriad opportunities for satellites,” explained Sam Farrar, principal author of “Satellites in Cyberspace: Opportunities for Internet-based Satellite Ventures.”

“Unfortunately, most of the industry is chasing small and often illusory satellite telephone markets. Satellite ventures that focus on Internet applications and employ innovative business models will be big winners.”

The report also discusses five key recommendations for the satellite industry, including converting voice channels to messaging and data; harmonizing satellite air interfaces with popular terrestrial interfaces; offering free Internet access to rural, remote and underdeveloped locations; providing introductory, advertiser-subsidized consumer services; and selling wholesale communications and tracking services.

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