Strategy Analytics takes a critical look at recent claims by mobile satellite service (MSS) providers that new technologies, such as satellite antenna beam steering, software and infrastructure for seamless satellite-terrestrial handover, will overcome common complaints, such as high satphone prices and poor indoor reception.

"TerreStar, MSV and several other MSS firms are in a good position to provide the satellite infrastructure for hybrid satellite-cellular phone services, which will use handsets that can operate via terrestrial cellular, switching to satellite in poor coverage areas," stated Chris Taylor, Director of RF and Wireless.

"However, an analysis of historical satphone volumes--as well as DVB-SH and SDARS, two other satellite-based mobile services--suggests that component firms should invest cautiously in developing new chips explicitly for hybrid satellite-cellular phones."

Stephen Entwistle, Vice President of the Strategic Technologies Practice at Strategy Analytics, adds, "The convergence of satellite phones and cellular handsets makes perfect sense, but most of the proposed schemes require new satellites, adding substantial investment and launch risk to the equation."

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