|
|
Learn About The Most Recent News Concerning Iridium Satellite Phone Difference In Selling Price
The bigger US cellular phone firms have tens of millions of buyers. Iridium currently (Mar 06) has about 150,000 - 100 times smaller than main mobile phone firms. The expense of its 66 satellite network is about $6 billion, and although those are all sunk costs, the satellites will have to be replaced at some stage.
A similar equation applies for the equipment. Popular mobile phone designs offer in quantities of many thousands, and the underlying technology changes little from model to design, permitting improvement costs to be split over many units, and with most efficient high volume production methods. However the Iridium satellite phones are selling extremely slowly, and have distinctive technology in them.
And so, whereas your normal mobile phone business can almost certainly make money by giving you a totally free phone and 1000 minutes of airtime for only $30/month; Iridium completely can not.
Lack of competition and price inelasticity
You have plenty of choices when choosing a typical cellular phone service. But there is only one completely global satellite phone supplier - Iridium - and only 1 source of Iridium handsets.
Could Iridium offer its 9505a device for less than $1500? Nearly certainly - the underlying variable expense per phone sold, to Iridium, is probably $50. No need to decrease the mobile price tag, because you can find no competitors.
Iridium might choose to drop the cost of the device being a way of encouraging far more folks to sign up for their assistance, in a similar way to how traditional mobile phone operators give away mobile phones, but to date it has resisted this kind of temptation.
Could Iridium offer its airtime for much less than the rates it does? That is a lot more complex question; for sure, the variable added price of accepting 1 more call onto their network is close to zero, but they've massive fixed costs that have to be covered. And, much like the phone price, for folks who genuinely have to have a satellite mobile phone, $1.50 a minute is a bargain. And for folks who don't will need a satellite telephone, even 50¢ a minute is possibly as well very much. Iridium possibly feels that for the kind of people who will need and use its services, its prices are fair.
Future satellite cell phone selling price trends
Thinking about these issues above, we do not predict major drops in either device or airtime expenses occurring with Iridium satellite service within the foreseeable long term.
Learn About The Most Up-To-Date Story Regarding Satellite Mobile Communications
A communication satellite function as an overhead wireless repeater station that provides a microwave communication link between two geographically remote sites. Due to its high altitude, satellite transmissions can cover a wide area over the surface of the earth.
Get The Most Recent News Concerning Why IsatphonePro Is Worth Purchasing
The Inmarsat Isatphone Pro combines everything you would want in a satellite mobile phone, and more. Through the Isatphonepro, Inmarsat has broken a lot of firsts.
Learn About The Most Recent Story Concerning Purchasing An Iridium Sat Phone - Difficulties To Contemplate
If you would like going to the Great Outback of Australia you should know that it's not only that simple.
Inmarsat Selects EMS Technology To Layout Next-Generation Worldwide Sat Phone
Inmarsat's next-generation dual-mode satellite phone and GSM mobile phone. The contract, which expands EMS's market focus beyond aeronautical broadband, is for approximately $26 million.
Learn About The Most Up-To-Date Information Concerning IsatPhone Professional Bringing Satellite Handset Calls For The Masses
The Inmarsat IsatPhone Pro was first unveiled by SingTel back in May. We finally got a chance to try it out at CommunicAsia 2010. This is a satellite phone that lets you make calls in areas out of regular cellular (such as GSM or CDMA) coverage.
Learn About The Latest Story With Regards To The Inmarsat Global Limited -- Exactly Why Choose Their Systems
Inmarsat Global Limited, together with its subsidiaries, provides mobile satellite communications services worldwide. It offers mobile satellite voice and data services
Get The Latest News With Regards To What's A Satellite Mobile Phone
Telephones have been used for many decades now, for the purpose of communication between individuals staying far away. The necessity of man in this fast moving world brought about the evolution of technology and cell phones.
|
More Articles
Blogroll
|
