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Teledesic Comes Down to Earth

hibachi writes "Teledesic, the ambitious plan to build a constellation of low-earth orbiting satellites for global broadband services, has died on the assembly room floor. According to this press release, "the company does not believe that it is prudent, purely on speculation, to continue the substantial capital expenditures required to construct and launch the satellites consistent with the timing required to meet FCC and ITU regulatory milestones." Brainchild of Bill Gates and Craig McCaw, Teledesic held the promise of globally ubiquitous high speed Internet. It seems Teledesic's plans grew less ambitious over the years until finally the painful lessons of Iridium, and the current telecom climate, drove the last nails in its coffin. I am sad to see this happen."

4 of 176 comments (clear)

  1. 3 billion people without electricity by luzrek · · Score: 5, Insightful

    I think that a big part of their problems comes from trying to provide internet acess to 3 billion people who previously didn't have it (is it that few?). Not that this goal isn't admirable, but I think it would be better to concentrate on getting consistant electricity, clean water, and high quality food to the world poor, instead of internet access (lack of computers/electricity to run them could also be a problem).

    --

    Galium Arsenide is the material of the future, and always will be.

  2. The painfully stupid lesson of Iridium by rufusdufus · · Score: 5, Insightful

    Iridium bugs me. I've seen a lot of people claim it failed because of the technology. But this just isn't the case! It *might* have failed based on the technical [de]merits, but it never made it that far.
    I know this because I tried to buy an Iridium phone. I spent months and months trying. I tell you they WOULD NOT SELL ME ONE. It was a joke! No resellers had them, and there was no plan. The best I ever did was find a fly-by-night in Taiwan who would sell me a phone, but not a service plan. Who would buy a phone with no service plan?
    It was frustrating too, reading their glossy pamphlets and their web sites. They actually gave you (the customer) examples of what type of people would use an Iridium phone. Topping the list was Saudi Oil Sheiks! I'm not kidding! I tried to tell them, im not an oil sheik, but I HAVE MONEY and I want to BUY.
    Iridium failed because of internal failures inside the company (and motorola). They got caught up in internal politics and self-absorbsion. Apparently they forget to do marketing and build distribution channels.

  3. The real Iridium problem by rcs1000 · · Score: 5, Insightful

    Here in the UK it was perfectly possible to buy an Iridium phone. Almost every electronics shop on Tottenham Court Road stocked them. I even once saw someone buy one.

    The problem Iridium had was deeped. When the economics were first calculated in the mid-1980s, nobody envisaged a ubiquitious cell phone service and global roaming. (Nor did they imagine that cell phone services would price their minutes at $0.20 or less.) The key demographic of Iridium users - i.e. travelling businessmen - already had cell phones, and weren't prepared to swap them for larger devices, with lower quality sound, and which cost 30x as much per minute.

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    --- My dad's political betting
  4. Telecom dip/hype by Pooh22 · · Score: 5, Insightful

    Being a "victim" of the telecom crash myself, I feel like speaking freely about the not so positive parts here...

    In the last 5-10 years, there's been a constant push to develop more and newer technology to sell to willing customers (in the highly developed parts of the planet). This was in blind disregard of then common sense that enough is enough, if you don't need more features you're not going to buy it.

    Meanwhile, the amount of technology standards and "blueprints" for communication systems is advanced enough to last quite a while without new developments. Some refinement is good, but wider implementation of this technology would do much more good in the world, for peace and equality (thereby reducing risks of conflict between nations and peoples!). If every moderately developed country would have basic internet and telephony services available for 80-90% of the people for reasonable prices. The world would be much better off than with another way to get broadband for a few above average rich people.

    Of course, the need for food, shelter, education and freedom rises far above the need for communication and internet facilities. Also 3 million people a year are dying of aids, and so on and so forth... Life is not about more bandwidth (really!)

    Simon