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Globalstar’s new unlimited air time offer for “loyal†subscribers is seen as a last-ditch effort to retain customers, who are leaving the service in increasing numbers, according to NAB attendees.
The telephone operator’s satellite constellation is degrading at a rapid rate, and the company’s second-generation system will not be in orbit quickly enough to stop a major service gap. Not only are customers begining to seek alternatives, distributers were not even offering Globalstar to potential subscribers because of the service gaps.

Another potential fear, according to industry officials, is that first responders and others that have stocked Globalstar equipment for disaster relief communications may find that their emergency systems are unavailable when they are needed most.

Globalstar holds a subscriber advantage over Iridium because of cheaper equipment and service plans, but are the Globalstar problems leaving the door wide open for Iridium to claim the crown of dominant satellite telephone provider once and for all?