The Hidden Costs of Buying Iridium Satellite Phones from
the Low-Cost Provider!

In this global, internet-based business world, you can find any product or service with the click of a mouse. Anyone who has bought anything from a website knows, you don't always get what you pay for. And while the old adage 'You get what you pay for,' is pretty clear, it is crystal clear when talking about Iridium satellite phones.

A quick Google search on "Iridium 9505A Satellite Phones" will display for you a variety of prices and airtime plans, but what does it all really mean? Is buying a phone for $1,395 really better than buying one for $1,495? Maybe, maybe not? It is critically important to understand there are very distinct differences between the equipment, services, and options that Iridium Service Providers offer which significantly impact the retail price of the phone. In general, low price means very few options and services, if any, while higher prices include more accessories and service.

The ultimate purchasing objective is to pay a competitive price while receiving high value. Of course everyone's definition of value is different. However, consider the real reason you purchased a satellite phone: emergency response, business continuity, or communication in remote areas with the intangible reasons being to save lives, time and money. A typical scenario is that it is the middle of the night and your phone rings - the emergency plan has been activated and the team needs their Iridium phones. How can you be absolutely certain they will be working when you need them?

How do you know? Because you took delivery, unpacked them, and set them up yourself? Great! Did you set them up properly? How do you know? Did you test each phone with an inbound and an outbound call? Are the phones properly labeled, batteries charged, and fully functional? How long did that take you or your staff and how much did it really cost you and your organization in terms of time and lost productivity?

Sure, you received a great price and your phone(s) arrived in the standard Iridium packaging. However, did your low-cost vendor perform the following essential tasks for you that will ensure your Iridium satellite phones are fully operational in the time of greatest need? And, at no additional cost?

Keep in mind that if your vendor does not perform all of these tasks that you or your staff will be required to perform them in order to adequately prepare your phone for use:

Task Description Time Value*
Unpack Open each phone box, remove all components 10 min $4.81
Read Read set-up instructions 10 min $4.81
Inventory Verify you have received all components 3 min $1.44
SIM Insert the SIM card in each phone 3 min $1.44
Charge Unpack charger, insert battery, charge phone 3 min $1.44
Label Print a label and label each phone 4 min $1.92
Charge2 Check on charging status, swap phones 5 min $2.40
Test Remove PIN code and make, receive a test call 20 min $9.62
Trash Packaging disposal 2 min $0.96
Case Buy case for kit 30 min $14.43
Pack Pack the kit into the phone case 5 min $2.40
Card Create, print label and laminate a user card 30 min $14.43
TOTAL * Value based on $60,000/yr salary 125 min $60.10
Errors 20% No offense, but do you do this daily? 25 min $12.02
  The REAL total additional time and cost 150 min $72.12

These essential activities will almost bring your phone to par with the standard GlobaFone kit. When you receive the Iridium phone you bought from GlobaFone, all of these tasks are taken care of for you - simply turn on the phone and you are ready to go! You know it will be done right!

In addition, what is the opportunity cost for you and your organization to unpack and properly set up the phone? Setting up your Iridium phone will take you or your Admin person away from other high value projects. This more than doubles the cost of 'doing it yourself'. Is setting up an Iridium Satellite Phone a task that is of equal value to your other responsibilities? Isn't your time worth more than the value of setting up an Iridium phone? But you bought the phone at the 'lowest price' didn't you? Or, so you thought!

And here's a scary thought: What if you have to set up 50, 60, 80, 120 phones? Do you have the time? Do you have the staff? Oh, yes, do you have a place designated for setting up and charging a large quantity of Iridium satellite phones?

Along with the essential tasks performed as described above, here are the additional value added items included with each GlobaFone Iridium Satellite Phone kit:

Item Description Price Value*
Bag Padded nylon bag for the kit $0.00 $20.00
Card GlobaFone EasyGuide© instruction card that shows clearly how to use an Iridium phone $0.00 $10.00
Support 24 X 7 LIVE support for only one hours help (You'll likely need more) $0.00 $28.85

As you can clearly see, there are a number of highly valuable 'freebies' that you receive when you purchase an Iridium Satellite Phone from GlobaFone. From the time-consuming set-up to the free carrying bag to 24 X 7 live support, GlobaFone provides the exceptional service our clients deserve; all with the competitive pricing that everyone else claims is the lowest price.

So, here is the total of all the real hidden additional costs of buying Iridium phones from the lowest cost provider:

Self setup $72.12
Opportunity cost $72.12
GlobaFone bag $20.00
GlobaFone Easy Guide© $10.00
1 hour GlobaFone support $28.85
Total $203.09/phone

The lowest price is simply a number and is usually the lowest value.

The highest value encompasses far more and saves you more in the end.

How valuable is your time? How valuable is your money?

Please feel free to call GlobaFone for more information on 603.433.7232.


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