When satellite phones debuted they offered a new, unparalleled opportunity to communicate across all corners of the globe. This was an exciting technological breakthrough, but only the few who could afford it.
Retailing at well over $1,000 and charging per minute rates of over $10, satphones were clearly out of reach for the everyday user. Plus, they were literally the size of a brick.
Over the past decade, mobile satellite companies have been studying consumer trends and developing satphones that appeal to a larger customer segment. Devices today are smaller, easier to use, and more rugged and reliable. They can withstand harsh environmental factors at the top of mountains, in the middle of the desert or even at sea, where there is no terrestrial connectivity or cell towers for miles.
Recently, we’ve seen a slew of devices that have broken new ground and taken the mobile satellite industry to a completely new segment — the retail customer.
Satellite operators are challenged by what casual users look for when it comes to purchasing their first satphone. As someone who uses their satellite handset periodically or keeps it as a backup for emergencies, such a user wants an affordable, easy to use and compact handset that can be used for calls and SMS, and which doesn’t take up too much space in their backpack or pocket.
In the future, users will expect to have one device that will take care of all their global communication needs. For now, satellite operators and manufacturers are attempting to bridge the gap by addressing the questions: How affordable can a satellite handset be, and does affordability compromise quality?
Satellite handsets are inherently different from regular phones because of two key differentiators. First is the technology, which requires niche expertise and materials that result in longer development time. There are only a handful of companies that are capable of developing the technology to build the satellite chip that is used in a satellite phone.
Second is the economies of scale. In the satphone industry, the volumes manufactured are much lower, making unit costs higher.
But the good news is that due to technological advancements made in the industry, satellite operators are able to develop terminals that can now cater to a variety of needs — whether for heavier, frequent usage or for lighter, more casual use.
In addressing affordability, satellite operators have targeted handsets at a cost of between $400 and $500, a price range that is comparable to a standard mobile device. One mobile satellite service operator, Thuraya, has now achieved this key price for a satellite handset.
The key functionality of the Thuraya phone is simple, which is to provide a reliable means of communication in remote areas or in the occurrence of natural or manmade disasters. Affordability in this instance means safety, security and a channel to reach out for help, if needed, for a much larger audience today.
Also, the quality and aesthetic appeal of satellite handsets have improved over the years. Today, they are smaller, sleeker, and can easily fit into any piece of luggage or travel pack.
The final misconception that satellite operators have long tried to dispel, is the preconceived notion that satellite airtime rates are always higher. In fact, the rates are lower than people might think.
If you brought your GSM phone to another continent or country and made a call home, did you know that the charges could be more expensive than if you called using a satphone? Satellite voice price plans, depending on the region a user is in, can be as low as $0.75 per minute. In comparison with standard international roaming charges, satellite calling rates can be a bargain.
These are exciting times, where satellite operators and phone manufacturers are competing and also collaborating with each other to develop the best satellite communication device to date. Innovation breeds fresh ideas and we can’t wait to see what will be next.
Alexander Lachner is senior product manager for voice services at Thuraya