Satellites in the wireless revolution: the need for realistic perspectives

Skeptics of low Earth orbiting satellite (LEOS) projects consider the costs well beyond what can be recouped by serving a select group of big spenders. With sticker prices of $3.4B for Iridium and $9B for Teledesic and per-minute rates of $3 or more, one really has to wonder whether adequate demand will arise to support these ventures. Proponents of LEOS projects claim their networks can serve not only high- and low-end markets, but also rural residents unserved by terrestrial options. Critics question whether LEOS technology will bypass conventional facilities and reduce the inflow of much-needed capital for basic service infrastructure development.