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

To: Herc who wrote (1812)	5/26/1999 10:33:00 AM
From: Bill Holtzman	Read Replies (2) \| Respond to of 2693

Motorola pulls engineers from Teledesic for Iridium: (from Yahoo) NEW YORK (AP) - Motorola Inc. has reduced its participation in Teledesic LLC's $9 billion project to create a satellite network for high-speed data transmissions. Motorola pulled many of its 600 engineers assigned to Teledesic and told several subcontractors to hold off on work relating to the project, The Wall Street Journal reported today. However, neither company said Motorola had dropped out of the project altogether. Teledesic is a planned network of 288 satellites that will transfer data to fixed locations, such as remote offices or cities with poor telecommunications infrastructure. Motorola said the engineers were reassigned to projects that are likely to bring more immediate benefits than Teledesic, which is scheduled to begin service in 2003, according to the Journal. Negotiations for a final contract to design and construct the Teledesic project, which also is backed by Microsoft Corp.'s (Nasdaq:MSFT - news) Bill Gates and cellular telephone pioneer Craig McCaw, are already about six months behind schedule. Teledesic, based in Kirkland, Wash., said the engineers left so that Motorola could concentrate resources on its Iridium satellite-communications project. Unlike the Teledesic network, the planned Iridium system is for voice and low transmission-rate data communications. Schaumburg, Ill.-based Motorola created the 66-satellite Iridium project and owns 18 percent of Iridium LLC. Since going commercial in November, Iridium - which cost $5 billion and 10 years to get off the ground - has proven to be a disappointment and faces a shortfall in expected revenues. *Why will engineers help Iridium?*