Constellation Communications Closes Office
While crusaders are tying to find a way to make Iridium LLC successful, others are awaiting news of stability and success of Globalstar L.P. [GSTRF].
Would-be competitor Constellation Communications Inc., is in a holding pattern to raise money in light of Globalstar’s slow start and the August 1999 bankruptcies of Iridium and ICO Global Communications, scaled back its operations to preserve cash by recently closing its Fair Lakes Circle, Va., office.
However, CCI is not throwing in the towel, said CEO Dr. Jerry Waylan. The company still plans to go forward with its business plan, but needs market conditions to improve to secure the necessary financing. Investors are wary due to the hefty costs of Iridium and Globalstar that forced higher prices to be charged for service and handsets than most of the potential users seem willing to pay.
Meanwhile, cellular phone systems now are offering service in many populated regions of the world, negating the advantage the more-expensive satellite systems would have held in providing calls virtually anytime, anywhere.