Satellite-phone operator TerreStar is heading for Chapter 11 the Wall Street Journal reports, putting America's personal satellite phone network at risk. TerreStar has more than $1bn in debt, most of which got spent on its first bird, the imaginatively-named TerreStar-1, which went up in July 2009. Since then the company has …
Hasn't this been proven to fail - many times
Have none of the previous failures at any satellite venture proven that this isn't much of a "business" that anyone would want to be in? Iridium, two satellite TV providers, a couple of satellite radio ones as well.
Almost have to wonder if bankruptcy is part of the business plan at this point. Might be the next big business model they'll be teaching at MBA schools. The real surprise is how many people will pony up money to "invest" in these things.
Sure there are wide open spaces in the US with no cellular coverage, but then by definition those places are not very populated... so your expected revenue from those areas has got to be almost nil. Hard to make that back up when satellites cost a billion dollars each.