Users Unwilling to Pay Much Extra For Satellite Phone Capability

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Two out of five mobile phone subscribers are unwilling to pay any extra for direct-to-cell satellite services, which may give operators pause for thought as they continue to pump cash into scaling the infrastructure.

Much has been written about the race to enable satellite connectivity for mobile phones, typically to provide coverage in places such as rural or remote areas of the US where there may be no cell networks nearby.

The GSM Association (GSMA), an industry body representing the interests of mobile network operators worldwide, asked 1,000 respondents in ten countries how much additional spend they'd consider adding to their mobile tariff if satellite connectivity was included.

Some 40 percent said they wouldn't pay more for this capability. Of the remainder, 32 percent would only be willing to pay up to 5 percent extra; 17 percent said they'd be willing to pay up to 10 percent extra, and only 4 percent were prepared to add 20 percent to their tariff.

The GSMA put a positive spin on this, saying the figures indicate that 60 percent of people, on average, are willing to pay more on top of their existing bills.

Even 5 percent extra on tariffs would be a meaningful boost to the average revenue per user, the trade body claimed, "when spread across the applicable customer base of the mobile operators most likely to take satellite, whether in an existing tariff or as a separate offer."

It added: "in short, if it's built, they are likely to come."

The GSMA also noted that inclination to pay is "part science and part art," and consumer attitudes must be "taken with a grain of salt, compared to actual purchases."

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