Well, I still hope that the rumors of Iridium's death are premature.
Though I don't hold the stock, nor know the details of it's financials, I believe it's demise would be bad for the Satcoms in general, including Loral and G*, which I do have a personal stake in.
Besides, I don't understand why Iridium's product wouldn't be attractive to a large number of corporate, gov't and NGOs. Iridium should be marketing it's product as a business tool, not some high end HDTV or Pentium III computer that early adapters will pay anything to get their hands on. Large organisations with physical and human assets outside the range of cell phones should find Iridium attractive at a cost that provides a reasonable profit to handset manufacturer and service provider, for sure now, and even for some years after G* service is launched, because in principle it's globally ubiquitus and (more or less) independent of terrestrial lines.
The anecdotal stories of lack of sales in the Ginza or through the Neiman Marcus catologue wouldn't bother me if Iridium had an understandable marketing plan that focused on a target market that really needed and could afford its service. Well probably it does, or will before it's too late.
Finally, I can't believe that Motorola will let Iridium go South, because it needs the investment community to back Teledesic.
So, in short, don't give up hope Jack Morgan and other Iridium longs.
Best wishes,
RS |
