Source: MotleyFool.com, August 31, 2010 - Full Article

Inmarsat owns and operates a network of eleven geostationary satellites through which its customers make satellite telephones calls and access the internet from almost anywhere on the surface of the Earth. Consequently its main customers are organisations which operate in what the company describes as “the remote environment market” such as the military, mining and oil companies, aid agencies and shipping (both commercial and recreational).

You can find more background information on Inmarsat in my article from last December.

In June Inmarsat started selling its first global handheld satellite telephone, the IsatPhone Pro, to good reviews. Intriguingly commentators on sailing websites have remarked that the IsatPhone Pro’s calling costs can sometimes be cheaper than those of some conventional mobile phone networks.

While the current range of satellite phones won’t replace most people’s mobile phones, if only because they won’t fit into your jeans or shirt pocket, it’s quite possible that they may directly compete with mobile phones one day.

Inmarsat’s satellite network represents a considerable barrier to entry for potential competitors as they would need to establish a similar network, or lease space on other satellites, which would take a lot of time to establish (and cost a lot). Consequently Inmarsat and its major competitors, Globalstar, Iridium and Thurya, have a big foothold in the market which makes it difficult for newcomers to dislodge them.

For more information on the IsatPhone Pro, please visit IsatPhone.com.