Iridium: A Look Back at the "Future" of Worldwide Communications

Imagine a “constellation” of 77 satellites, orbiting the earth at a height of 480 miles, providing worldwide telephone and internet service. Some years back, a startup called Iridium LLC not only imagined it, but decided to make it a reality.

Reducing the planned number of satellites by 11 (the company name came from the atomic number of the element Iridium: 77), they actually built the a network. But it failed commercially, and went bankrupt. The satellite network, created at a cost of $5 billion, was sold for a mere $25 million in 1999.

What went wrong?

Sounds like a great idea that somehow failed. Why?

To recoup $5 billion, you need a lot of paying customers. But “old-fashioned” cell phones—even in their early-ish days—offered more for less. And, since that time, traditional cell phones capabilities and internet access speeds have grown substantially. The Iridium network, for example, provided internet access at about ISND speeds—painfully slow compared to today’s broadband.

Is It Over?

I suspect not. Just as other technologies have advanced, so can the technologies in communications satellites. Orbiting networks are expensive, but so are land-based ones, like FIOS. And, unlike land-based networks, satellites can be used to create a comprehensive worldwide system. Another benefit: this would provide badly needed competition to the handful of dominant players in both internet access, and cell phones.

The more the merrier, I say. The day will come.

Meanwhile, the Iridium network is operating, run by the company that purchased the network: Iridium Satellite, LLC.