Motorola Iridium the failure of the business model-.doc

 PAGE \* MERGEFORMAT 6 Motorola Iridium the failure of the business model? Iridium program is a once excited for many people the idea of Motorola. Engineer for Motorola, Barry #8226; Bodi Ge, the Iridium program this revolutionary idea came from his vacation in the Caribbean when his wife complained that she could not use the cellular phone to her customers. Returned home, Barry and Motorola to work in Arizona and two satellite communications group Iridium engineers thought of a solution - by the 66 near-Earth satellite constellation, so that users from anywhere in the world can call. Since the 20th century, in use since the 60’s, communications satellites are 22,000 miles of major high geosynchronous orbit satellite. Rely on this means a high degree of satellite phones to large, accompanied by 1 / 4 second sound lag. For example, the U.S. company’s planet 1 communications satellite phone weighs 4.5 pounds, and the computer about the same size. Iridium idea is that use of a number of near-Earth satellites (about 400-500 miles altitude, near-Earth satellite from the Earth due to closer calls machine size can be greatly reduced, the sound will lag almost imperceptible. Iridium plans despite the veto was Bodi Ge boss, but it has been president of Robert #8226; Galvin, Motorola’s favor and give support. For Robert, and his son, Chris #8226; Galvin (later to become his successor, the Motorola Iridium program is the display of highly skilled, has great potential, exciting, must not be abandoned. engineers for Motorola, the Iridium constellation of the challenge is to establish a classic “technology tug of war” - 50 billion cost in 1998, they finally will be put into use Iridium for the first time. The project was officially launched in 1991. At that time, Motorola established a $ 400,000,000 investment in Iridium. This is a separate company, Motorola has a 25% stake and 28 seats on the board in 6 seats. November 1, 1998, during the advertising cost of $ 18