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FABLE: The Phone Network Nobody Wanted

There was once a company with a magnificent global vision. It would become a global telecommunications operator with everyone on the planet a potential customer.

 

The vision was to be implemented by putting up a satellite constellation. It was to be a network-in-orbit which even a Bedouin in the depths of the Sahara, or a sailor in the farthest reaches of the oceans, could access.

 

Putting up the network cost $5bn. It turned out that its phones didn't work indoors. Hardly anyone subscribed to the orbiting network and it was eventually sold for a pittance.

 

MORAL: Customers prefer utility to a magnificent vision.

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Comments (14)

Ian SMITH:

Did you ever see a handset? The aerials were huge! I worked for Motorola at the time and was proud of the idea and the technology, but another case of the wrong product at the wrong time. And it WAS a cool name.

David Manners Author Profile Page:

No, Ian I never saw one. Wish I had. I imagine they're museum pieces now.

cheese:

Heavy museum pieces, I would guess. Complete with battery packs the size of bricks, only heavier. You would need deep pockets to have one.

Loved the moral. I can think of several fables offering the same moral. What is amusing to see is the irrepressible temptation in various companies/CEOs to go after that magnificent vision while the menial task of figuring out the utility (isn't this called "business model" in CEO speak) is left as an exercise to the underlings (the yes men).

David Manners Author Profile Page:

Cheese you are so right. It's the same all over. I remember about a year before the launch of Iridium asking a public question at a Motorola conference about the strength of the signal needed to access a satellite from a mobile phone and getting no coherent reply. The vision obscured the reality.

Andy Buck:

The funny thing is that the network is still operational and used by lots of people.

Apart from Osma Bin Laden and his friends, lots of journalists use it, as do sailors and others.

Maybe they weren't so stupid...

Peter Excell:

Harrumph! It's easy to rubbish overenthusiastic engineering, yet people threw gazillions at crazy financial schemes. $5bn is just loose change to them. AND they pied-pipered the bright young people away...

Iridium was initially going to launch 77 satellites. This gave it the name as Iridium is element number 77. Due to cost reasons the system was cut back to 66. However Dysprosium is not quite such a snappy name so they stayed with the original.

The newer Iridium phones are nothing like so clunky as the original ones.

http://www.satphone.co.uk/networks/iridium/portable_equipment.shtml

David Manners Author Profile Page:

Thanks Chris, I'll try and get hold of one

El Rupester:

As Andy & Chris point out, there is actually a fantastic second act to this story: the rebirth.

The new devices have some VERY impressive technology inside them too...

Jeff Cousins:

The phones may still be big but they can be the only reliable way of phoning home if you're on a ship on the other side of the world.

Try:
http://www.heavens-above.com/iridium.asp
That's really what the network was for - predictable "shooting stars"! But it is wrong to wish on space hardware...

It wasn't the only one that was planned either, there were two others, one being TRW GlobalStar. Plus a High Altitude Platform version - basically stationary helium balloons -that even had the backing of Craig McCaw.

In 1995 I was at an IEEE conference keynote presentation by a senior TRW executive who asserted that GSM was 'purely a European phenomenon'. He implied the pig-headed Europeans wouldn't standardise to the superior US systems so they were having to take the initiative to put up a global satellite system so that their guys could do business while they were overseas. How many fallacies can you fit into one sentence? I wonder if he still has a job?

Jim Hillhouse :

I'll make an interesting prediction--Iridium will in the next 3 years nearly double it's current published subscription of 328K users. The key is price and ease-of-use. As good as is the new Iridium 9555, it more closely resembles a Nokia cell phone from 2000 than a typical cellphone today. Better user-experience will be key.

David Manners Author Profile Page:

Well that would be a turn up, Jim. Hope it happens.

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David Manners on FABLE: The Phone Network Nobody Wanted: Well that would be a turn up, Jim. Hope
Jim Hillhouse on FABLE: The Phone Network Nobody Wanted: I'll make an interesting prediction--Iri
Helen Duncan on FABLE: The Phone Network Nobody Wanted: It wasn't the only one that was planned
Lloyd Pople on FABLE: The Phone Network Nobody Wanted: Try: http://www.heavens-above.com/iridiu
Jeff Cousins on FABLE: The Phone Network Nobody Wanted: The phones may still be big but they can
El Rupester on FABLE: The Phone Network Nobody Wanted: As Andy & Chris point out, there is actu
David Manners on FABLE: The Phone Network Nobody Wanted: Thanks Chris, I'll try and get hold of o
Chris Green on FABLE: The Phone Network Nobody Wanted: Iridium was initially going to launch 77
Peter Excell on FABLE: The Phone Network Nobody Wanted: Harrumph! It's easy to rubbish overenthu
Andy Buck on FABLE: The Phone Network Nobody Wanted: The funny thing is that the network is s

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