Burma's Sattellite Telephone Servic

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Subject: Burma's Sattellite Telephone Service Provider Iridium Files for

Bankruptcy
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Burma's Sattellite Telephone Service Iridium Provider Files for
Bankruptcy

NOTE: This is what happens when you do business with the illegal
military dictatorship.

Iridium Files Chapter 11
                 Satellite Phone Company Fails to Restructure Debts 

                 The Associated Press
                 N E W   Y O R K,   Aug. 13 ? Iridium LLC slid
                 into bankruptcy on Friday, unable to
                 pay its debts on a satellite-based
                 mobile phone network that cost
                 billions to build but attracted only
                 thousands of users. 
                      The international consortium, led by
                 Motorola, filed for protection from its
                 creditors in a Delaware court under Chapter
                 11 of the federal bankruptcy code. 
                      Iridium, the first of four satellite phone
                 networks to offer service, stumbled out of
                 the starting gate last November. 
                      Users complained about complex calling
                 plans with rates of up to $9 a minute, as
                 well as big clunky phones that were in short
                 supply, cost $3,500 and were confusing to
                 operate. 

                 Problems Attracting Customers
                 At last count, Iridium had only about 15,000
                 customers, well short of the subscriber
                 projections used to secure many of its
                 loans. 
                      In June, the company introduced a
                 simplified rate structure, slashing charges
                 as much as 65 percent, and unveiled
                 sleeker phones made by Motorola and
                 Kyocera costing about $1,500. 
                      In a statement Friday,
                 Washington-based Iridium said its banks,
                 bondholders and strategic partners have
                 voiced support for the decision to
                 restructure its finances under court
                 protection. 
                      Motorola, Iridium?s largest investor and
                 operator of Iridium?s 66-satellite system,
                 expressed support for the business, saying
                 it will continue to invest in the technology
                 and develop the next generation of Iridium
                 products. 
                      ?Given the progress being made to date
                 to restructure Iridium?s capital structure, we
                 are optimistic that a restructuring plan can
                 be accomplished within 30 days,? Motorola
                 said in Iridium?s statement.