CEO Bernard Schwartz launched the soft-rollout of Globalstar, the second GMPCS (Global Mobile Personal Communications by Satellite) operator at Telecom 99, with the message that "the other guys aren’t of interest to me".

Both ICO and Iridium are relying on the success of Globalstar to bail themselves out of trouble. But only time will tell. "Today is the start of a soft rollout," said Schwartz. "There is a phased, hard roll out starting around 15 November." But he added that the mid-November rollout will not serve all locations.

"By 31 March 2001 we will have about 130,000 phones out and have the service to most of the parts of the world," Schwartz said.

Globalstar launched another four of its LEO craft on October 18 bringing the total number of Globalstar satellites now in space to 44. The latest four Globalstar satellites, manufactured by prime contractor Space Systems/Loral, were launched aboard a Soyuz-Ikar launch vehicle from the Baikonur Cosmodrome in Kazakhstan.

Globalstar, which has just begun a phased roll-out of its service, says it remains on schedule to launch another eight satellites spread over two launches in November (from Baikonur) and December (from Cape Canaveral) to complete its planned constellation of 48 satellites and four in-orbit spares.

Globalstar will serve the "VIP roamer", people who are not price sensitive and want the convenience, as well as underdeveloped areas that do not have telephone access. Schwartz estimated a six month period to prove that the market segment is a very "vibrant, dynamic one".

By the end of 2000, Schwartz estimates approximately one million phones in place. "And if we can do that, then we will be generating a gross revenue level of about somewhere in the region of $650 million, he said.

By 2003, Globalstar is anticipating three million subscribers, generating approximately $2.8 billion and a cash flow in the region of $2.1 billion.

The retail price is going to be set by the service provider. Globalstar is paid on the entire service, on a per minute basis. An all in charge is somewhere between 35 cents and 53 cents dependent on volume, with an average around 47 cents, Schwartz said.