Down the Rabbit Hole

I’ll apologize up front. I am speaking in allegory and could not think of a holiday story as my base.

Just as Alice visited her Wonderland, so it goes in SatCom – there is never a shortage of adventures on which this industry embarks.

Inmarsat’s over-priced (my opinion) of Globe Wireless is another step in the adventure down the rabbit hole wiht the aim of turning Inmarsat into a retail company.

Maybe they are borrowing a page from Globalstar with a ‘retail’ version of the GSP 1700 now available in 10,000+ stores.  Kind of but not really.  Globalstar wants people like you and me to buy a satellite phone or tracker.  Makes sense for adventure travelers.

No, Inmarsat’s path is different; they are looking to usurp the distribution channel while (likely) patiently and frustratingly working to convince the channel how incredibly valuable they are.  That sounds good in press releases but when the little guys repeatedly lose business to a wholly owned Inmarsat subsidiary, it loses its luster.  It is pretty challenging to compete against your supplier who can always undercut your pricing, especially if they show no shame abut doing it.

News flash: You can either support your channel or compete against it, but not both.  Everyone knows that.  Everyone except Inmarsat, I guess.  Sort of like the Queen painting all the roses red and cutting off your head if you disagree.  This would be the nightmare: an ever-competitive SatCOm space AND the network providing the competition, rather than taking a hands-off approach rather than letting the distribution system work.

I’d expect some people will get a lump of coal on Wednesday morning.