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To: djane who wrote (6739)	8/22/1999 10:03:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

DDI, Kyocera stick loyally to Iridium (via I* yahoo thread) afr.com.au By Helen Meredith Japanese shareholders DDI Corp and Kyocera Corp have increased their holdings in Iridium South Pacific, underlining their conviction that the satellite mobile phone market will eventually take off. News of the increased Japanese funding came as US-based Iridium LLC was under increasing financial pressure. Last week a group of note holders forced management to file for bankruptcy protection after the company failed to meet loan repayments. The timing could not have been worse for the pioneering satellite service operator. Fully funded rival Globalstar is poised to launch a similar service in the next few weeks and has been given approval by analysts and investors. Iridium LLC is building and operating a 66-satellite network to support the ambitious communications project, the first to offer a global mobile service using hand-held phones. But since its launch last November Iridium has signed up only 20,000 subscribers, with no hope of meeting its goal of 500,000 by year's end. Revenues have fallen far short of the $30 million pledged to bankers and Iridium is now in default on an $800 million line of credit. With the constellation of satellites orbiting in space, carrier roaming agreements in place across the world and the service being marketed in 239 countries, the separate regional units of Iridium, which operate as independent financial entities, say they have no choice but to get on with business, in the hope that Iridium will trade its way out of its present difficulties. The slow uptake of subscriptions had already forced the regional companies to revamp marketing strategies and simplify pricing structures in early July. According to Mr Carlton Jennings, managing director of Sydney-based Iridium South Pacific, lower charges are seeing an increase in subscriptions. "We have had productive discussions with our shareholders this week aimed at ensuring the increased trend in customer uptake and network usage continues, both in Australia and the region". "But there is no getting away from the fact that eight months after launch we are not where we expected to be," he said. Mr Jennings said Iridium had initially failed to sell the capabilities of the system. Kyocera executive vice-president Mr Musahiro Umemura agrees. "This is new technology and it needs to be explained," he told the AFR. He emphasised the prospects of the new satellite-based networks. "We closely monitor trends on a global basis and have invested billions of dollars in technology growth areas. And we are convinced that mobile satellite communications is one of the key growth areas of the future," Mr Umemura said. The AFR understands DDI and Kyocera will each lift their interest in Iridium South Pacific from 25 to 30 per cent, leaving Indonesian communications company T. Bakrie with 40 per cent.