Although the talks are in the early stages, people close to the negotiations said McCaw is interested in investing in Iridium or a number of other satellite companies to help prove that the satellite communications business is viable. It is unclear whether Iridium, which continues to operate with a small subscriber base, would play any role in helping develop Teledesic.
Iridium is a satellite telephone service devoted primarily to voice operations.
And Teledesic, which is scheduled to begin in 2004, is supposed to use much larger satellites and a different technology to deliver broad-band data and Internet access. But it is believed by some analysts that by investing in Iridium or some other satellite venture, McCaw was trying to find a way to gain earlier access to the satellite business and learn valuable lessons about how it operates. Monday, a spokesman at Motorola Inc. in Schaumburg, Ill., said the company declined comment on the prospect of McCaw's investment. We're at the early stages of exploring a variety of early market options, but we have not committed to invest in any of them. Michelle Lyle, a spokeswoman at Iridium L.L.C. in Washington, also declined comment.