Iridium's launch and bankruptcy (1998-1999)
Motorola-backed Iridium launched 66 satellites to offer global satellite phones. The network worked, but the handsets were bulky and calls cost several dollars a minute. Customers stayed away.
Iridium filed for bankruptcy in 1999, about nine months after service began, with debts near $4 billion.
Investors bought the network for a fraction of its cost. Iridium survived and still operates today under new owners.
Iridium proved that building the satellites is the easy part. The hard part is signing up enough paying customers to cover enormous upfront costs, the same test AST now faces.
