Meanwhile, AT&T, Verizon, Vodaphone, and others are partnering with AST Space Mobile to bring full broadband via satellite to existing, unmodified iPhones and Androids.
Not clear what the advantage of a low bandwidth text message only service would be once these broadband systems are operational. Unless it remains free or at least dramatically cheaper.
Cost will be the key; although every time I hear AT&T/Verizon inexpensive does not come to mind.
While full broadband would be a valuable addition to areas that don't have good cellular service; what is the value to those who already have good cell service? Is it enough to pay for it?
It's not like speed is the limiting factor for most users, so why pay extra unless it is cheap?
When use my phone as a hotspot it is fast enough; even to stream video. Will satellite have sufficient bandwidth and low latency to be a better option than existing services?
If it was cheap enough and offered worldwide coverage, I could see getting it; but how many cellphone users travel internationally where there existing services don't work; and do so frequently enough to warrant the extra cost?
Even T-Mobile's low speed international data and free texting is good enough for FaceTime and most apps; and it comes with most plans.
I suspect there is a small segment of the cellular customer base where this is a worthwhile feature and costs will be a secondary consideration; especially in the corporate and government markets.
If I were analyzing the markets, the first questions I would ask are:
- How often and long are the current user base is out of data connectivity?
- Of those, what percentage and how much are they likely to pay to not lose connectivity?
It will be interesting to see how it is priced, performs, and bandwidth/usage limits.
I actually think this service will remain free forever as the backlash they would receive would be enormous for the reasons others have mentioned in this thread.
Which is a classic example of loss aversion. I suspect if you had asked people what they would pay for this it would be at best a nominal amount; but take it away or charge and it is the end of the world.
I look at this feature as a part of their long term strategy to keep users in the ecosystem
I suspect the emergency call feature may be kept free, since it is likely low volume and the providers, i.e. satellite and call center operators, of the service may at some point start getting government subsidies, similar to what 911 gets in the US, to help cover costs.