By Jo Best
Tuesday, September 05 2006 10:33 AM
URL: http://www.zdnetasia.com/news/communications/0,39044192,39418952,00.htm

Satellite communications company Inmarsat has taken the first steps towards building a worldwide hand-held satellite phone service.

It plans to launch satellite phone services in Asia before the end of this year and has confirmed that a worldwide service is on the agenda.

Inmarsat has teamed up with satellite operator ACeS to boost satellite coverage--by combining resources from next year--to provide both fixed and mobile voice services across the continent.

In preparation, Inmarsat will implement a series of network upgrades, while ACeS' R190 satellite phone will be modernized to work with the new services.

Inmarsat is hoping to expand the service, with global coverage within the next two years. It will be also be launching its third Inmarsat-4 satellite in late 2007, with a view to launching new broadband and maritime services.

It said the market for hand-held satellite communications is around US$350 million per year--and growing.

The globalisation process is expected to cost the satellite communications company up to US$45 million over the next two years, while the satellite, which has already been built, will cost between US$130 million and US$150 million to launch.

Jo Best of Silicon.com reported from London.