The ICO Global Communications group will launch its first satellite for global mobile satellite phones (GMSP) by the year-end. The group plans to put another six into orbit by 1999-end, which would enable it to offer skeletal GMSP service by the third quarter of 2000 world-wide, including India. The services will include e-mail and fax.
According to Bishnu Pradhan, senior vice-president and general manager of ICO India, the firm will launch a total of 10 satellites (medium earth orbits) and two spare satellites, and install 12 ground stations or satellite access nodes (SAN). "The SAN in Chattarpur, near Delhi, has been completed and is the only one with in-house orbit testing capabilities. This facility is critical in such satellite-based communication services," he said.
Communications major Iridium too plans similar services next month and will have the leverage of being the first. Iridium will launch 66 satellites at an estimated cost of $5 billion. Competition for ICO will also come from GlobalStar, which plans to introduce GMPS services by the year-end.
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"The tariff will be around $1.2 per minute for an international call," Pradhan said. The subscription charge, call charge and that for a call through a cellular service are yet to be fixed.
The total investment in GPMS is $4.5 billion. Of this, Inmarsat has invested $1.4 billion and VSNL, the second-largest shareholder in ICO Global, $2 billion. The rest will be raised through financial institutions. "ICO expects to break even in two years time," Pradhan said.
ICO has identified cellular roamers as the largest market, but will also place thrust on the rural market (basic services), transportation phones like those on ships and aircraft, and remote areas where semi-fixed services will be provided. This is because GMSP phones are designed for both satellite as well as fixed telephone mode of communication.
World-wide, the penetration of GMPS is 5 per cent that of cellular phones. Though the domestic cellular industry is not doing well, Pradhan was optimistic about it picking up. The penetration of GMSP services will be faster in remote and rural areas, he said.
ICO has already initiated talks with cellular operators in India for the distribution of its services. "This will not pose a threat to cellular operators because GMPS will only add value to cellular phones," Pradhan said.
He added that even MTNL, which plans to enter the cellular arena, may be roped in. ICO has given the contract for handsets to three companies _ NEC, Mitsubhishi and Samsung. The `ICO engine', which is a chip for this service, has been developed by the company and handed over to the contractors.
While five SANs will be located in Asia, including China and Korea, the others will in UAE, Australia, South Africa, Germany, US, Brazil and Chile. Optic fibre cables called ICONet will also be laid between the SANs.
ICO is working on the billing system. Packages will be used for integration with cellular operators and segments where the company will bill directly, Pradhan said. While the frequency has been fixed by the International Telecom Union, the government is yet to come up with a concrete GMPS policy here in India.