AT&T Introduces Satellite-Enabled Smart Phone
crimeandpunishment writes "Here's one way to deal with spotty cell phone coverage: backstop the network on a satellite. AT&T is now selling its first satellite-enabled smart phone....which could be invaluable for boaters, forest rangers, and others who regularly leave regular cellular coverage areas. But the TerreStar Genus comes with a hefty price tag: $799.....and the data costs are as sky-high as the satellite....400 times more than a standard plan. It also has to have a clear view of the southern sky, which means it can only be used outdoors."
799 is a hefty price for a gadget?? remind me how much nexus was going for on google site? and with regards to data costing 400 time more - excuse moi, i don't know where are you from, but here in canada rogers beats any satellite plan hands down.
Because people pay it.
In my experience with satellite phone users, there's two types:
1) The guys who are going camping way out in the middle of Nowhere. They wont use their phone unless someone is dying. At that point, I don't think they care about per-minute costs. Usually, those folks have bought $50-100 prepaid airtime cards.
2) Businessmen who need to be in contact with home base no matter what. That includes oil/gas industries, or senior-level executives. The folks in accounting get the bill and the end user just knows to dial, press send, and then carry on.
Source: Me, having to provide sales & support services to Irridium and INMARSAT users.
Good for you.
When I'm in the middle of the forest or out in a boat is it's because someone is paying me to do work out there. I often need to communicate with people back at the office in those situations, and texting is often the easiest way to do that.
i forget
Why should things be priced based on their actual cost to the provider? It makes much more sense to demand a price, which maximizes the profit. If you decide to use the service, it's obviously worth the price and both parties have gained something from the transaction.