New trends in Telecommunications

We have seen recently at the SUV´s Market the massive entry of Satellite Radio capacities, in 2008 and now in 2009 models, Dodge and General Motors have been adopting the standard of Satellite Radio together with GPS capabilities.

This is a very important step, thought even we have seen the advent of satellite internet we still didn´t have seen the massive implementation of "mobile" satellite internet.

I have talked with many specialists in the field and they say it is quite unlikely to have "mobile" satellite internet not for the technological complexities (We could think this as the next step of Satellite Radio) but there´re more economic alternatives as terrestrials networks.

They say WI MAX will be the standard for the next years.

I have another position and it is based on real facts as the advent of the mobile satellite radio standard. The experiences of SIRIUS Satellite Radio and XM Satellite Radio make us to think those companies are developing a solid market for this kind of services and the next natural step must be Internet.

Of course they need a large market volume to cover all the sunk costs and Investments in assets and R & D. So these companies need to reach scale economies to be competitive in prices with those terrestrial networks.

But to capture a large market share they need customers having the appropiate devices and this is what they are successfully doing after Dodge and GM have implemented those devices in their vehicles.

So the next natural step is to have the standard of satellite capabilities in laptops and pocket PC´s instead terrestrial networks, despite the facts those networks are working succesfully as it is in Chicago, IL USA with more than 2.000 points covering the city and at the north of Chile where a 120 miles network is right now operating mainly for geological purposes in mining.

So what´s next , are we talking about a specific and profitable market ( a focused strategy) or are we just seeing the begining of a large "mobile" satellite standard entry in the telecommunications market ( a cost leader strategy) ?