Iridium bankruptcy (1999)
Iridium built a 66-satellite network for global phone service, backed by Motorola. Handsets were bulky and expensive, subscribers never came, and the company filed for bankruptcy nine months after launch under about $4 billion in debt.
Investors lost billions. The satellites were nearly de-orbited before a group bought the assets for $25 million.
A rebuilt Iridium later found a viable niche in specialized and government users, but never the mass consumer market it first imagined.
It is the cautionary tale for satellite phones: the technology can work while the economics fail. AST's edge is that it targets phones people already own, not new hardware.
