Satellite cell phone network for every day use?

Reuters reported yesterday that Boeing will be providing Mobile Satellite Ventures (funded by Motient Corp.) with components to build a satellite/cellular hybrid network.

Satellite phones have been around for quite some time now, but because they are ‘line-of-sight’ dependent, they don’t really work in urban areas, or places that have tall obstructions such as mountains or trees. Satellite phones work best in flat, remote areas with lots and lots of sky. (Think Texas, African Plains, or Saskatchewan)

MSV hopes to address the issue by building a hybrid network that includes a system of cellular repeaters, probably functioning on existing cellular networks.

Expect handsets for this new network to be priced on the level with handsets being sold for GSM and CDMA networks. There is no word yet on which device manufacturers will be making the first satellite phones for this new network.

Iridium and Globalstar have attempted to launch satellite cell phone networks for consumer use, but the cost of building and maintaining necessary systems grossly outweighed the revenue generated by the relatively few customers who had a need for satellite service. Both companies eventually filed for Chapter 11 bankruptcy a few years after starting up.

The U.S. military has a $36 million contract with Iridium, allowing them unlimited airtime for 20,000 users. Civilians are charged about $1.50 per minute, with handsets costing around $1,500.

Hopefully Mobile Satellite Ventures will avoid the pitfalls that catapulted Iridium and Globalstar into bankruptcy.

If consumer reports are any indication, consumers are ready for an alternative to standard GSM/CDMA cell phone service providers. Cell phone service providers have landed in the bottom slots of consumer satisfaction surveys for years now, and they have had little motivation to make things any better for customers. (If you cancel your service, they still get 200 bucks out of you.)

Maybe now, with more competition out there, and the possibility for higher quality service, the cell service big boys will start playing nicely with their customers.