Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington,
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Speaker 1: This is taking Stock, coming up on taking Stock, you know,
Speaker 1: in Vice President, then Vice President of the United States,
Speaker 1: Al Gore made the first irridium telephone call. This iridium technology,
Speaker 1: by placing satellites in orbit, was supposed to revolutionize the
Speaker 1: way telephone conversations and data were transmitted. When we've got
Speaker 1: details from John bloom whose new book Eccentric Orbits, The
Speaker 1: Irridium Story gives us the details of the company's history.
Speaker 1: I want more details on today's big business news, piem.
Speaker 1: Let's go right to Charlie Pellett in the news room
Speaker 1: with the Bloomberg Business Class, and I think I watch Kathleen.
Speaker 1: Thank you, Pam. We've got the SMP five hundred index
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Speaker 1: five hundred index up nineteen now gaining nine tenths of
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Speaker 1: and Pin Fox on Bloomberg Radio. Irridium. The Irridium satellite
Speaker 1: system was designed to revolutionize communications around the world. It
Speaker 1: also revolutionized the determ termination of many people to bring
Speaker 1: this company into the reality of operation. John Bloom is
Speaker 1: an author and investigative journalist and he is the author
Speaker 1: of a new book entitled Eccentric Orbits The Iridium Story.
Speaker 1: It looks at the development, launch, and bankruptcy of Motorola's
Speaker 1: revolutionary satellite system. John Bloom, thank you very much for
Speaker 1: being with us. Thank you for having me. How did
Speaker 1: you first become interested in the Iridium story. Well, I
Speaker 1: met a man named Dan Calusi who was retired in
Speaker 1: Florida playing golf, and uh had had had been the
Speaker 1: man who saved the system, but when he told me
Speaker 1: about it, I've never heard of it. It was the
Speaker 1: most expensive and complicated engineering project ever done. It was
Speaker 1: more complicated than Los alamos Um. It was these autonomous
Speaker 1: action satellites that functioned like cell towers in the I
Speaker 1: and it was supposedly was going to make every inch
Speaker 1: of the planet accessible by phone. So they built it.
Speaker 1: It worked, It was acclaimed by engineers all over the world.
Speaker 1: And so I met this guy years years later, and
Speaker 1: I've never heard of it, And so that's how I
Speaker 1: got interested in the in the story. Um, but you know,
Speaker 1: they plowed through eleven billion dollars in nine months, and
Speaker 1: so it became so the most extensive engineering project in
Speaker 1: history became the biggest bankruptcy in the history. Um. It
Speaker 1: was one year before Enron, so that record didn't last
Speaker 1: very long. But uh, it was that. That's what that
Speaker 1: was the original h impetus for the book. There was
Speaker 1: something about technology then and technology now. I think that
Speaker 1: when things go so quickly, you kind of lose track
Speaker 1: of even you know, we're short spending time how different
Speaker 1: things were and how far we've come. Well, the system
Speaker 1: was built by Motorola Corporation, which, in when the system
Speaker 1: was first conceived, Motorola controlled the whole world in terms
Speaker 1: of cell phones. They had invented the first cell phone. Uh,
Speaker 1: they were the leaders, they controlled of the market. Uh,
Speaker 1: and they thought this was the next step, because why
Speaker 1: is the world building cell towers? One to five miles
Speaker 1: apart throughout the entire planet, or trying to You can't
Speaker 1: really do it when you could just put cell towers
Speaker 1: in the sky. And so they thought this was the
Speaker 1: obvious next generation of UM cell phones. And it worked.
Speaker 1: But by the time it was finished UM they were
Speaker 1: going to market it to this elusive creature called the
Speaker 1: international business traveler. And the international business traveler needed to
Speaker 1: be accessible all over the world. And so by the
Speaker 1: time they finished it, UM the International Business Traveler had
Speaker 1: a g s M roaming phone that was small, compact,
Speaker 1: portable and really worked where all the people are in
Speaker 1: the world. He didn't he didn't need a phone that that,
Speaker 1: you know, UH went to Antarctica. So UM. So, even
Speaker 1: though it was the revolutionary system, it was too expensive
Speaker 1: and and they went to bankrupt pretty quick. But what
Speaker 1: what frightened the government is that Motorola just decided to
Speaker 1: abandon the project and crashed the satellites into the ocean. UM.
Speaker 1: That's why people remember it. Those those who remember it
Speaker 1: at all remember it as the biggest flame out in history.
Speaker 1: And you know, the Motorola's biggest mistake of the of
Speaker 1: the nineties. But because of the intervention of this one
Speaker 1: guy in Florida and Dan Calusi, who was retired but
Speaker 1: at one time he had run PanAm Airlines and UNC Corporation,
Speaker 1: and he just said, this is this is a crime.
Speaker 1: We can't let these things be destroyed. And so he
Speaker 1: um got involved with the Pentagon, the White House, the
Speaker 1: Secretary of Defense put together an investment group. What was
Speaker 1: strange is that any fortune company could have saved the
Speaker 1: system with just a few pennies, but they all passed
Speaker 1: on it. And so he put together this Motley investment
Speaker 1: group that included Saudi Arabians and the friends of Jesse
Speaker 1: Jackson venture capital firm in uh in Washington, d C.
Speaker 1: And they, through enormous efforts and a little luck, they
Speaker 1: saved the system. Is still flies today and it's still
Speaker 1: the only one of its kind and likely to be
Speaker 1: the only one of its kind into the foreseeable future.
Speaker 1: Um In in fact, it's going to be used for
Speaker 1: the next generation of air traffic control, so we don't
Speaker 1: have any airliners go off the grid anymore and lose
Speaker 1: them in the ocean. Um So, uh So there's two stories.
Speaker 1: How Motorola lost the company and how this little group
Speaker 1: Motley crewe Um saved the company and then this phone
Speaker 1: became essential in Iraq and Afghanistan for our for our troops. Well,
Speaker 1: we thank you so very much for joining us today.
Speaker 1: A fascinating story written by investigative journalist John bloom and
Speaker 1: it's brand new Eccentric Orbits, the development launching bankruptcy, and
Speaker 1: Motorola's revolutionary satellite system a Ridium. We thank you for
Speaker 1: joining us today. I'm Kafeine Hayes along with Pim Fox.
Speaker 1: This is taking Stock on Bloomberg Radio. Coming up on
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