AT&T Offers "Everyday" Satellite Phone–For a Price

Would you buy an $800 smartphone?

Probably not, but AT&T is betting that some businesses will — if it allows the user to stay connected even in remote areas and when cellular networks are down. The telecommunications giant on Tuesday began offering something it calls Satellite Augmented Mobile Service, along with a smartphone that doubles as a satellite phone.

The phone, made by TerreStar, operates on a regular cellular network, but the user can switch it to satellite service when needed. The device is $799 plus shipping and tax, which is not unusual for a satellite phone. It does not require a contract, but a subscription that allows the phone to be used with the TerreStar satellite is $24.99 a month, on top of the usual voice and data plans from AT&T. And satellite calls themselves are expensive — 65 cents a minute in the U.S. for a call, and $5 a megabyte for data.

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