A Pocket-Size Satellite Phone

Reston-based satellite firm TerreStar Networks is gearing up to launch a smartphone and phone service this year that will combine terrestrial wireless service with its upcoming satellite service. Under a deal the company has with AT&T, TerreStar users will have their calls directed either through that carrier's network or through TerreStar's service. Make a call that's in range of one of AT&T's towers, and AT&T's network will handle it. But if a customer travels outside the AT&T network's range, that call will be routed to TerreStar's new satellite. TerreStar is hoping to first address a market of federal agencies and emergency first-responders who need to know that they'll always have service, even in the event of a Katrina-like disaster that knocks out cell towers on the ground. If there's an emergency or a major event in one part of the country, TerreStar will be able to adjust its coverage so that, say, an area in Arizona has enough capacity to support increased phone traffic. The company's larger ambition is to build a market for its satellite phone among mainstream consumers, but TerreStar has not yet announced how much it will charge for the service.