RDSS band attracts prospective satellite/cellular service projects

Mobile Phone News, July 4, 1991

When Motorola unveiled plans for the Iridium satellite-cellular project, the cellular industry grew defensive, resenting the idea of possible competition from a cellular service from the sky.

Motorola defended its project, assuring the cellular industry that its system would serve as a pre-cellular system, filling in where it was unprofitable to build a cellular system (MPN, Oct. 11, p. 3-4).

The satellite industry also has been skeptical about the Iridium project, maintaining that building and launching 77 low-earth-orbit (LEO) satellites is expensive, and receiving a license in each and every country that it plans to serve, is indeed, no small feat. Motorola, in a move to secure spectrum for Iridium, has applied for a radiodetermination satellite services (RDSS) license in the United States, in order to offer global and mobile voice services.

Although many nay sayers in the industry speculate that Iridium is a "pie in the sky" venture, Motorola continues to move ahead, undaunted by criticism. Most recently, British Aerospace (BAe) Space Systems Ltd. and Lockheed have joined Motorola in the project. However, neither company has announced plans to make a financial commitment to the project (MPN, June 6, p. 8).

As reported in MOBILE PHONE NEWS' April 11 issue, and recently confirmed, Hutchison Telecommunications is planning to join the Iridium project. Hutchison has been negotiating for a higher service-to-cash ratio in its contribution to Iridium rather than just a cash investment, as reported in our sister publication MOBILE SATELLITE NEWS. Also, it is planning to market shares in the venture as well as to construct landbases in its main areas of operation, Hong Kong and the United Kingdom.