It is true there is competition, however when I consider the GO potential, I look it as follows:
1) existing Iridium customers:
Per the latest Iridium Q4 report, Iridium has 334,000 commercial voice and data subscribers, and 35,000 government voice and data customers. Essentially locked into the Iridium network. Now when these 370,000 customers handsets break/need replacing, do they purchase an old-school sat phone or do they consider a GO? Management have always made the point to me, when I have spoken to them to - consider the number of handsets Iridium sell each year! The implication being that GO is a genuine replacement to the traditional handset. Perhaps more so now ex-USA with the USD increase, highlighted in the recent call. This is a huge potentially easy market (370,000) for GO. The first order was for just 10,000.
2) new markets/customers
This is where the comparison with Isathub becomes more relevant. However, need to consider both the handset price point which you have pointed out, but also the Iridium vs Inmarsat pricing plans, which I understand Iridium is more competitive. Also need to consider whether the user needs/wants to pay for a full service broadband experience. When Iridium NEXT comes online in 2017, this will no longer be an issue though.
- Forums
- ASX - By Stock
- Iridium Go! vs. IsatHub
It is true there is competition, however when I consider the GO...
-
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WRR (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
MTL
MANTLE MINERALS LIMITED
Nick Poll, Executive Director
Nick Poll
Executive Director
SPONSORED BY The Market Online