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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Vayda who wrote (1142)	12/9/1998 2:32:00 PM
From: Jeff Vayda	Read Replies (2) \| Respond to of 2693

Iridium's Subscriber Terminals Deliver The Goods In Satellite Tests After several months of waiting, Phillips Business Information editors got their hands on a number of Iridium LLC [IRIDF] satellite phones to test out service capabilities. Despite some initial difficulties in the actual operation of the handsets, most calls placed on the handsets manufactured by Motorola Inc. [MOT] connected without problem. Overall, callers were pleasantly surprised by the clarity of conversations. For purposes of the demonstration, Iridium removed cellular and GSM capabilities from the handsets, meaning that all the calls were placed using the system's constellation of 66 low-Earth-orbit satellites. Problems encountered by the Phillips team included the minor digital break-up of conversation, resulting in lost words, but the quality of service appeared no worse than terrestrial cellular phone calls. The most complex call made probably was from Phillips' Potomac, Md., offices to Dundee, Scotland. The signal was picked up by a satellite passing over the East Coast, then relayed virtually instantaneously through space via two satellites before being downlinked in Italy for landline transmission through Europe and across the North Sea to Scotland. The caller and the recipient enjoyed a crystal-clear conversation of several minutes with zero delay or echo on either voice. Craig Bond, Iridium's vice president in charge of market development, revealed that software problems are dogging the handsets manufactured by Kyocera Corp. [KYO]. However, the companies expect the glitches to be ironed out in about one month. Bond said the Japanese manufacturer has to date produced about 20,000 units, which will be shipped to customers as soon as the software problems are resolved. With demand far outstripping handset supplies, Bond said Motorola is ramping up production to try to deal with Iridium's backlog. Significantly, he also said that the next-generation Iridium handsets, which will be smaller and more versatile units, should be available in nine months to a year -- about the same time as rival Globalstar L.P. [GSTRF] aims to begin service with its first-generation phone. Separately, Iridium announced that affiliates of American International Group Inc. [AIG], a company whose principal line of business is insurance but which is well known as an investor in wireless joint ventures in emerging markets, will acquire approximately 4 million Class 1 interests in Iridium LLC for an undisclosed amount. The affiliates will purchase the interests from subsidiaries of Indonesia's PT Bakrie Communications Corp., in the midst of a financial restructuring. "We believe its business proposition is solid and represents an excellent investment opportunity," American International Vice Chairman Edward Matthews said of Iridium as the deal was announced. Bakrie Communications will remain affiliated with Iridium through Bakrie's joint venture with DDI Corp. of Japan. The venture is responsible for handling the provision of Iridium services in Australia, New Zealand and the South Pacific.