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Research and Development
Start of Iridium -
Iridium Project was announced
Set to launch in 1996 with an estimated 1.4 million subscribers. -
Analyst predict customers to exceed 1.8 million by 2001.
700,000 customers needed to be profitable
System can support up to ten million customers. -
3.47 billion contract with Motorola
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Raised 800 Million
Involved160 countries to allocate LEO Spectrum Secured 14 investors, first meeting of the28 board members from 17 different countries. -
1.6 billion total raised
800 more in addition to the initial 800 million -
Period: to
Cellular networks expanded
Turned into a major competitor -
Set September 1998 commercial activation milestone
EARLY 90’s 6 different companies market was at 4 billion.
Early 90’s redesigning of the satellite -
Period: to
Redesigned phones
underestimated growth of cellular -
5 Iridium Satellites in orbit
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Raised 240 million
NASDAX IPO favored by analyst -
47 satellites in orbit, first test worked
1997 cost projection of 3.5 billion was raised to 4.9 billion -
Stock all time high $72
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Milestone missed for commercial launch
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Commercial service launched
1998 end only 3000 customers -
Banks require Iridium to sign 27,000 new customer in the next qtr.
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Shortage of handsets, Kyocera several months late delivering.
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Handset price now $1000 down from $3000, also reduced rates
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Chapter 11
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Only 55,000 customers
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1.54 million revenue.
Owed creditors 100 million plus on 3.4 billion debt -
End of commercial service
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System turned off