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Peru signs $900,000 contract with Globalstar for satellite phones

Living in Peru
Israel J. Ruiz

Peru's Ministry of Transportation and Communications has announced it will begin using Globalstar, a satellite phone system, to provide the service for 100 satellite phones.

It was reported that after signing a $900,000 one-year contract, the government is to be provided the phones along with the service and maintenance to be used in the case of another natural disaster or national emergency.

The vice minister of communications Cayetana Aljovín explained that a contract with Globalstar had been signed and phones would begin to be distributed this week.

He added that government officials would have to be trained on how to use the phones.

Among those that are to receive one of the new satellite phones is the country's president, governors, ministers and vice ministers, the head of congress along with members of Peru's civil defense, national police and Armed Forces.

It was reported that authorities are only allowed to use the phones during emergencies and will be charged if used on any other occasion.

Aside from the low Earth orbit (LEO) satellite constellation the government is to use, authorities have requested that all the telephone companies in Peru create a special network for the one hundred people that are to have the satellite phones.

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# carlos omran says :
19 August, 2008 [ 21:02 ]

Amazing how ignorance of communications technology costs!!

I could give the Peruvian Government the same apparent deal for around
US $6,000.00

What a waste!!

# carlos.omran says :
19 August, 2008 [ 21:11 ]

I forgot to mention!

I can probably cut a better deal including 100 laptops with voice over IP
(VoIP) through ATM by utilizing satellite services like the ones that provide access to starband.net, directway.com, etc. etc.

(Their footprint can be focused on the spot!)$$$

Carlos

oh!! mi Peru!!  I wish I were the politician in charge of communications!!

oh well, that may be far fetched since I'm not holding a PHD in political sciense...

# Splaktar says :
19 August, 2008 [ 23:38 ]

Well something certainly needed to be done.  I don't think that most of the people in that list could handle a laptop and the satellite VOIP software even with training.  So the phones are much more practical.

Certainly something needed to be done as it became obvious during the earthquake that the existing Cell phone companies in Peru could not handle the required load.  This left many leaders of the country completely cut off and both unable to give orders or to hear the status of things.

# Carlos says :
20 August, 2008 [ 00:23 ]

All good and done.  ok!

I certainly hope that the entity or person responsible for closing the deal at this horrendous price, will feel their hearts beat as they train the Peruvian officials thoroughly!!

Moreover, I will expect the government representatives of our beloved
country to exercise more wisdom and responsability.!!

P.S. Thanks for your comment Splaktar!

# Jeff says :
20 August, 2008 [ 17:56 ]

Did anyone mention that the globalstar system is only running at about 10% at this time as most of their satellites have lost douplex capabilities (required for voice communications).

# Splaktar says :
20 August, 2008 [ 18:28 ]

Duplex is not required for voice communication.  It is only required for telephone like communications.  It would be more like talking on a radio where only 1 person can talk at a time.  But it still has the benefit of not being restricted by cellular networks which fail to cover most of Peru.

# David N says :
20 August, 2008 [ 19:42 ]

$900k is very excessive for 100 phones - that's $9,000 apiece for only one year.  Peru cannot afford silly toys for government officials.

Considering problems like the extreme poverty and hunger gripping the country, polluted air and water, and insufficient infrastructure, this is an irresponsible waste of money that could be spent elsewhere.  The leadership of the country must be either blind, worthless, or both.

# Tom says :
23 August, 2008 [ 22:17 ]

Check out:
http://www.satellitephonestore.com/globalstar/globalstar-satellite-phone.php
The phones in the article photo are GSP-1700's and are $995.00, and that is when you buy ONE. Air time is also very cheap on Globalstar right now, since it is "on sale" due to poor connection performance from failing satellites.
 
There HAS to be a typographical error in the article. Should it really read $90,000, not $900,000? Or did Globalstar cheat the Government of Peru? How is it possible to pay 10 times the going price, and then want to announce this? Of course, one admires the forward-thinking government officials for getting phones independent of ground infrastructure that may fail in earthquakes - but Iridium is not much more and is totally reliable with a very sound system.

# Splaktar says :
24 August, 2008 [ 01:52 ]

"but Iridium is not much more and is totally reliable with a very sound system."

None of that matters in Peru.  The only thing that is important is choosing the cheapest possible option.

I agree that this is a bit odd and that there might be a typo in this news as the price is much higher than you would expect.

# JG says :
25 August, 2008 [ 13:29 ]

Those of you debating the Iridium vs. Globalstar issue might be interested in the links below. The first is a comparative study of Iridium and Globalstar handsets performed by Frost & Sullivan last year. The second is an article published in SatMagazine last month (July 2008).

 

The SatMagazine article is based on a Futron study of satellite communications services intended to aid the decision-making process for first responders when purchasing emergency communications equipment. Both documents clearly outline the superiority of the Iridium system.

 

http://www.iridium.com/about/frostreport07.pdf

http://www.satmagazine.com/cgi-bin/display_article.cgi?number=847664029

It also seems Frost & Sullivan performed a follow-up study in early 2008 referenced here: http://www.satnews.com/cgi-bin/display_story.cgi?number=543741999. Unfortunately, I haven't been able to find a link to the study in its entirety. However, a Frost & Sullivan press release indicates that if you contact Tracy Henderson at tracy.henderson@frost.com with a full name, company name, title, phone number, fax number and email address, she will email a copy of the full report.

# jc says :
27 August, 2008 [ 03:27 ]

Can anyone tell me the best place to buy an iridium phone in Peru?
can this be set up in pre pago o post pago only?
I will be travelling all over south america and would like to carry one with me for emergency use.
jerrycook@hotmail.com

# Tom Cabs says :
12 October, 2008 [ 12:08 ]

This is a strange deal. Globalstar is practically non-functional at the moment. The only thing that works now without problems is the SPOT tracker.

There is a chance thought that it will change soon. This is what I found:
"Customers using voice and duplex data services will experience difficulty connecting and sustaining longer calls at certain times in specific locations at least until 2009."
http://www.satellitephonefaq.com/globalstar/

So AT LEAST 2009. That means PROBABLY 2010, or even more.

# Tom Cabs says :
12 October, 2008 [ 13:13 ]

This is where the information on Globalstar satellite phone problems is. It didn't get through last time.