Motorola announces Celestri system, similar to Teledesic. Motorola folds Celestri into Teledesic and becomes prime contractor, usurping Boeing. Satellite phone system Iridium scheduled to start service. Teledesic signs launch contract with Lockheed Martin. Deadlines pass for agreement with Motorola on technical design.
Iridium attracts few customers, files for bankruptcy protection.
McCaw considers and rejects taking control of Iridium. Teledesic team works to merge ICO with Teledesic's planned system. New design and investors planned to be announced in coming weeks. The delays and design revisions have angered other contractors that have worked on pieces of Teledesic. They've also hurt the project's credibility with the satellite community, analysts and potential investors.