Iridium cuts prices for feds

Iridium cuts prices for feds

After seeking Chapter 11 bankruptcy protection, financially troubled satellite communications provider Iridium LLC of Washington is offering the government cut-rate prices.

Three suppliers offer Iridium service under contracts with the General Services Administration's Federal Technology Service. They are Motorola Inc.'s worldwide information network services, Hughes Global Services Inc. of El Segundo, Calif., and John Tidrow and Associates Inc. of Fayetteville, N.C. Iridium began restructuring in August after defaulting on $800 million in debt.

The company provides global voice and paging services through a constellation of 66 low-orbiting satellites. Iridium prices of $50 a month per user and $5 a minute for outbound calls have been cut by 67 percent for government buyers, and the $2,000 Motorola handheld phone sets were reduced by 54 percent.

'Frank Tiboni and William Jackson


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