This case describes the development and subsequent failure of Iridium. Iridium satellite communications system was originally developed by Motorola, and then spun off into a separate company. Using its constellation of 66 low earth orbit satellites, the Iridium system was designed to provide reliable communications from virtually anywhere in the world. As of November 1, 1998, Iridium started commercial operation of a satellite phone and paging service began two weeks later. However, a number of issues affected the company, and in May 1999, Iridium had only 10,000 subscribers. In August 1999, Iridium defaulted on its debt and filed for Chapter 11 bankruptcy. In March 2000, with only 50,000 subscribers, Iridium ceased services. Evaluation of the financial risks of the company to bankruptcy Motorola Iridium was $ 2.2 billion.
This study Thunderbird Case.The Rise and Fall of Iridium Case Solution
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by Andrew C. Inkpen Source: Thunderbird School of Global Management 14 pages. Publication Date: August 1, 2000. Prod. #: TB0179-PDF-ENG
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