GlobalStar Goes Bankrupt Too
from the why-not? dept
Having learned nothing from Iridium, GlobalStar continued spending big on its satellite phone project and finally realized that, well, it’s not the sort of business that makes the initial capital expenditure worthwhile. No one bought the phones. No one used the phones, and they don’t have much money left. They’ve now filed for bankruptcy. Unlike Iridium, however, they’re not planning to shut down the service entirely – and instead have worked out a deal with their creditors which they hope will give them a new start. Perhaps it will, but it doesn’t change the fact that the demand for satellite phones is small, and probably decreasing over time.
