Cost of A Satellite Phone
While it is possible to obtain used handsets for the Thuraya, Iridium, and Globalstar networks for approximately US$200, the newest handsets are quite expensive. The Iridium 9505A, released in 2001, sold in March 2010 for over $1,000 USD new. Since satellite phones are purpose-built for one particular network and cannot be switched to other networks, the price of handsets varies with network performance. If a satellite phone provider encounters trouble with its network, handset prices will fall, then increase once new satellites are launched. Similarly, handset prices will increase when calling rates are reduced.
Among the most expensive satellite phones are BGAN terminals, often costing several thousand US dollars. These phones provide broadband Internet and voice communications. Satellite phones are sometimes subsidised by the provider if one signs a post-paid contract but subsidies are usually only a few hundred US dollars or less.
Since most satellite phones are built under license or the manufacturing of handsets is contracted out to OEMs, operators have a large influence over the selling price. Satellite networks operate under proprietary closed standards, making it difficult for manufacturers to independently make handsets.
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