Globalstar USA Introduces First Public Availability of Satellite Phone Service; Domestic Pricing Plan for Full Commercial Launch Also Announced - Company Business and Marketing

Cambridge Telcom Report, Jan 10, 2000

Globalstar USA, the exclusive provider of Globalstar's satellite-based communications services in the United States, Thursday announced that Globalstar satellite phone service is available to customers on a limited basis for the first time. Globalstar USA also announced the domestic agent pricing plan for its full commercial launch, slated to begin later this quarter.

During this limited service phase, customers can purchase Qualcomm tri-mode handsets and satellite phone service, as well as activate the cellular mode of their handset. The limited service period is providing Globalstar USA the opportunity to make final adjustments to its network and operations before full commercial service. Additionally, all limited service phase customers will receive up to 50 percent off their satellite phone bill until February 15.

"The purpose of this phase is to fine tune our business processes, such as billing and customer care, so that the network can be further refined," said Mike Kerr, vice president and general manager of Globalstar USA. "Globalstar USA is introducing limited service now that it is available, so that our customers will receive the best quality and value, with a service that is easy to use."

Globalstar USA's target audience consists of individuals needing cellular service in those areas not currently served by wireless providers. The primary focus among those needing cellular extension will be industrial vertical markets, including utilities, natural resources, mining, maritime, government and transportation.

Phased Rollout of Service

Globalstar USA received official approval on its FCC license in late December. The ensuing limited service phase is second in Globalstar USA's three-phased service rollout plan. The first phase was a user trial period in November and December 1999, during which Globalstar USA's distributors and potential key customers tested the service free and provided feedback. The final phase -- full commercial service -- is scheduled for later in the first quarter of 2000.

Globalstar conducted hundreds of user trials with customers and dealers, to an overwhelmingly positive response. "The enthusiastic feedback we've received from prospective customers and dealers in our user trials confirms that we're ready to begin offering the service on a limited basis," said Eric Harrison, market segment manager of Globalstar USA.

"I have been in the satellite phone business since 1988 and have used every phone. The Globalstar voice quality is on par with Inmarsat standard A (highest voice quality for analog)," said John Zilenka of Manhattan Microwave. "It is a great system."

Globalstar handsets are expected to retail for approximately $1,499.00 in the U.S.

"Globalstar USA's greatest breakthrough is its ability to deliver satellite phone service affordably," said Jeff Clark, vice president of Vodafone Airtouch Satellite Services. "In one small, simple handset, our system extends the reach of cellular, delivering remote communications and near continuous connection at a competitive rate."

Globalstar Satellite Phone Service

No longer restricted to high-end use by cost or form, satellite phones are now more affordable and practical for a wide user base. The Globalstar system is a 48-satellite constellation that provides state-of-the-art mobile satellite service, extending the coverage of today's analog and digital wireless services and enabling phone calls to be made and received virtually anywhere in the world. The system will eventually offer data capabilities, allowing for e-mail and short messaging.

To date, 40,000 Globalstar phones (both tri-mode and dual-mode) have been produced and distributed to service providers around the world, and friendly user trials as well as soft launch programs have been underway by Globalstar's service providers for several weeks in a number of other countries.

The Qualcomm Tri-Mode Satellite Phone

Globalstar USA customers use a tri-mode mobile phone manufactured by Qualcomm. The tri-mode handset will work like a cellular phone wherever cellular service is available (if the user has a cellular subscription), both in analog and digital mode. In the absence of cellular service availability, the handset is switched to satellite mode. This ensures continuous service at the lowest possible cost.

Globalstar USA, a Vodafone AirTouch Plc. subsidiary, has exclusive rights to sell Globalstar satellite service in United States and is responsible for building the satellite gateways and interconnecting with the phone network, development and management of billing and customer care systems, sales, product distribution and marketing. Globalstar USA's business strategy focuses on superior service delivery and is based on a customer-focused model of quality, simplicity and value.

Globalstar USA is making Globalstar service commercially available to customers in the United States in the first quarter of 2000. FMI: www.globalstarusa.com, or call 1-877-SATPHONE.