How Much Does a Satellite Phone Cost?

Satellite phones can be incredibly useful for people who travel to land or water areas that do not have access to other types of phones. Customers who need satellite phones have several major brands to choose from when selecting a phone and a service plan.

Significance

The cost of a satellite phone includes the initial expense of the phone itself. It also includes the cost for a monthly subscription, the minutes used for each call and any activation fees. Satellite phones range in price from about $700 to $1,300, depending on the brand, its features and the retailer that's selling it. Basic subscriptions generally cost about $50 per month, but these subscriptions--unlike cell phone plans--do not include any minutes or airtime. The cost of airtime varies widely depending on the type of call; it may range from $1 to $10 per minute. Activation fees for most satellite phones run about $40 to $50.

Types

The major brands of satellite phones include Inmarsat, Iridium and Thuraya. The Inmarsat IsatPhone is a handset style phone that costs about $700. The Iridium handset phone costs about $1,500, and Thuraya offers satellite phones for about $1,000 to $1,300. Minutes for the Inmarsat IsatPhone cost about $1 for voice calls to PSTN or cell phones, $2 for calls to most other Inmarsat phones, and $3 to Iridium or Thuraya satellite phones. Iridium charges about $1 per minute for calls to PSTN phones or voice mail, less than $1 per minute for calls to other Iridium phones and over $10 per minute for calls to other brands of satellite phones. Calls between Thuraya phones cost about $1 per minute, while calls to other brands of satellite phones cost about $6 per minute and calls to other types of phones cost about $1.50 per minute.

Features

Since satellite phones can only be outdoors--where there is a clear path between the phone and the satellite--all three major brands also offer terminals that allow the phones to be used indoors. These terminals generally cost about $2,000 to $7,000 for stationary terminals, and they cost $18,000 to $25,000 for terminals that can be attached to a vehicle. Most terminals also include data transmission services, although these services may require extra monthly and per minute costs.

Function

There are two major ways that satellite phones can function. Geosynchronous satellites are located over 20,000 miles above the Earth, and these satellites stay fixed relative to the planet's rotation, allowing greater coverage per satellite and therefore requiring fewer satellites. However, the distance can also cause a delay or echo when talking on the satellite phone. Inmarsat and Thuraya phones use these types of satellites, and Thuraya also offers dual mode phones that combine both satellite and GSM phone services. Iridium phones use 66 Low Earth Orbiting, or LEO, satellites. These types of satellites, being about 500 miles above the earth, typically do not have a delay. Unlike cell phone providers, satellite phone services generally do not charge roaming fees, since their phones either work or do not work within a given area, depending on the satellite coverage.

Geography

The primary benefit of satellite phones is their ability to provide coverage in areas that do not have land line or cell phone services. Not all satellite phones cover the same areas. Inmarsat's BGAN service covers most of the world except for the areas near the north and south poles. Iridium satellite phones also work throughout most of the world. In contrast, Thuraya phones only have satellite coverage in most of Europe and western Russian, the Middle East, northern and central Africa, India, China, Japan, and Australia.

Resources

• The Sat Phone Shop offers satellite phones and services.
• The Travel Insider offers an overview of satellite phone types.