Abu Dhabi-based satellite communications firm Thuraya this week slashed rates across its 81-country coverage area as it seeks to compete with land-based telecom firms.
Thuraya is re-launching its services with rates that are up to 70 per cent cheaper than currently applied to subscribers in Africa, Asia and Europe.
"Thuraya is realising who their real competition is - it's not the other satellite operators, it's the mobile operators," said Claude Rousseau, a satellite communications analyst based in France.
The company is trying to rebound from 2006 when it lost subscribers due to a malfunctioning satellite.
In October, Thuraya will gain access to the Asian market with the launch of its third satellite.
The new rates offer phone users a "competitive, terrestrial-like price for a premium satellite service" for blanket coverage not only in urban centres but also in remote and rural areas under its footprint, the company said.
Under the new rates, Thuraya-to-Thuraya calls will be charged at US$.20 per minute, while both national and international calls from a Thuraya phone will be charged equally at US$.39 per minute to any destination.
"To ensure that Thuraya services are made affordable to the widest segments possible in developing countries, we have introduced a new SIM card that costs only US$5, compared to the existing US$99 SIM card denomination," said Thuraya CEO, Yousuf Al Sayed.
Rousseau noted Thuraya price cuts did not mean the company was in dire straits. "I don't think they are in trouble - I think they are just realising they are a GSM mobile operator like any other operator and they need to put prices at that level. This is a sign of maturity for Thuraya." (Gulf News)
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