While some analysts question whether low-orbit satellites offer the best service for the dollar in all areas, Teledesic says it has the cost and reliability issues solved.
"There's a myth that wireless and satellite are cheaper to implement, but it depends on the type of technology," said Sanjay Mewada, an analyst with the Yankee Group. "In wireless, CB is cheaper, but the quality is poor. PCS and cellular are more expensive."
Not so, says the Kirkland, Washington-based Teledesic. It's spending US$9 billion to deploy a satellite network it says will mimic the key characteristics of fiber - high capacity and reliability. By contrast, Pacific Bell has estimated its costs of upgrading its wireline network in California at $15 billion.
"We're spending just over half as much to provide a broadband network for the entire world. PacBell is rewiring one state," said a company spokesman.
Teledesic joins Motorola's Iridium and a number of other companies developing satellite networks to transport data at speeds they say will rival those of the existing fiber-based, high-capacity networks.
By blanketing the globe with 840 satellites that are closer in by some 35,300 kilometers than traditional orbits, Teledesic believes it will solve the capacity calamity, but not until 2002.
