Iridium Satellite System Gets Another Chance to Offer Phone Service.

Byline: Rob Kaiser

Mar. 28--One of Corporate America's bigger blunders in recent years is set to fly again.

The Iridium satellite system--which promised anywhere, anytime phone service, but nearly burnt up in the atmosphere--will go live again Friday for commercial customers. Instead of marketing the service to a broad audience, including international business travelers, Iridium's new owners are targeting people in remote areas, such as those aboard cargo ships, oil rig workers and adventure travelers.

The new Iridium has a distinct advantage over the old one: It was able to fish the $5 billion satellite system out of bankruptcy court for $25 million.

Now the company, led by former airline executive Dan Colussy, must find enough people and companies willing to shell out as much as $1,500 per phone and pay rates of $1.50 per minute so it can keep Iridium's 66-satellite constellation and eight spares circling the Earth.

Ginger Washburn, chief marketing officer for the recently formed Iridium Satellite LLC, said her company's leaner, more targeted approach will yield better results.

"Our business model is very different this time," Washburn said. "It's not the old Iridium."