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Arpu isn't fixing the balance sheet or funding dividends but if they didn't have debt they would almost cover costs but wouldn't be putting money aside for another constellation.
Thank you, Dave and good afternoon everyone. Our satellite business again produced meaningful growth from the prior year as we generated higher ARPU in all core areas of our business and continue to expand our total subscriber base. These increases drove 9% revenue growth when compared to the fourth quarter of 2017 and a 15% increase year-over-year. Focusing on quarter-over-quarter financial performance, the increase in total revenue was due almost entirely to higher revenue from subscriber equipment sales as we introduced new products into the market during 2018.
"Meanwhile Iridium's brand new constellation is up and running while Globalstar ' s has only about 5 years of life left."
Interesting note on this.. In the Conference Call, someone poised a question on the remaining expected life of the constellation.. In response. Globalstar management stated.
Q. Lance Vitanza
" And so, I guess, I’m wondering, with the constellation of the satellites that you have, what sort of the useful life left remaining before we need to start thinking about meaningful increases in capital expenditures to support your MSS business? "
A. Jay Monroe
Well, the satellite constellation was completed on – in 2013 and the constellation was engineered as a 15-year lifespan.
But, but, but. The first 18 satellites were launched in 2010 and 2011. Only the final 6 were launched in 2013..
Thank you, Dave and good afternoon everyone. Our satellite business again produced meaningful growth from the prior year as we generated higher ARPU in all core areas of our business and continue to expand our total subscriber base. These increases drove 9% revenue growth when compared to the fourth quarter of 2017 and a 15% increase year-over-year. "
SPOT subscribers DOWN Y/Y Duplex subscribers DOWN Y/Y
You lose subscribers, so you raise prices on everyone left. Then you continue to "soak" the remaining subscribers more and more as your CHURN increases due to the price increases.
Like you have said Maurcie.. Pretty soon they will have $1,000 ARPU and one customer. But they have great ARPU..
Meanwhile, over at Iridum/Aireon.. They get ready to activate the Edmonton (NavCanada) Airspace (Polar Routes) using Aireon.
With the new ICOM worldwide PTT user device. Watch for a buyout from the likes of ATT or Verizon.
I would not have believed that 26 years after Globalstar's start that I would still not have a satellite connection and that nearly nobody would have.
Not just Globalstar either but all of them. I do have a SKY TV supply but that doesn't count as a mobile phone system.
And people keep doing completely ridiculous things such as continuous Halo coils in roads. It should take seconds to understand that that would be hopeless.
Qualcomm must have spent about $500 million on Halo. Just to buy the rights was $70 million.
Heck, even my stupid car has a connection to my phone so that I can make and receive calls hands-free. And it costs nothing other than the price of the equipment in the car. There's no monthly arpu. The phone is cheap too with low and falling arpu and the device is amazing. Globalstar could have done that and been the biggest worldwide single spectrum land sea and sir and space phone system with 5 billion customers paying $10 a year. (That's just an example not an actual price plan. I would make it $0 per year. Payment would be per megabyte depending on loading at the time = free when low usage and $1000 per megabyte if nearly full.)
Bad ideas are horribly expensive. But it's easy to have them.
Maybe somebody could design an idea checker that collects all information and vets it for bungness ... ideas are not enacted until everyone is signed off.
I would love to have that as I have gone along with very bung ideas that turned out to be fatal but seemed like good ideas at the time.