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TIME: Almanac 1990s
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Time_Almanac_1990s_SoftKey_1994.iso
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1994-03-25
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<text id=90TT1808>
<title>
July 09, 1990: Always On Call
</title>
<history>
TIME--The Weekly Newsmagazine--1990
July 09, 1990 Abortion's Most Wrenching Questions
</history>
<article>
<source>Time Magazine</source>
<hdr>
BUSINESS, Page 51
Always on Call
</hdr>
<body>
<p>Motorola hopes to connect the globe with cellular phones
</p>
<p> First came cordless phones, which made it possible to take
all those irritating calls while mowing the lawn or relaxing
in the hammock. Before long, cellular phones eliminated the
commuter's peace and quiet on the highway. Now, if Motorola has
its way, being unreachable is going to be downright impossible.
</p>
<p> The suburban Chicago electronics giant (1989 sales: $9.6
billion) hopes to put in place by 1996 a network of 77
satellites that can relay phone calls to any spot on the
planet. That means when the boss has a question, no Himalayan
mountaintop or African jungle encampment will be beyond the
reach of the ringing phone. Named Iridium, for the chemical
element whose nucleus is orbited by 77 electrons, the Motorola
plan would constitute the first global cellular system. Calls
would cost $1 to $3 a minute, compared with about 50 cents a
minute for cellular calls within urban systems linked by radio
towers. Potential users include traveling executives and
mining engineers who work in remote locations.
</p>
<p> While Motorola stands ready to supply the handsets (initial
price: $3,500 apiece), the company will need investment
partners to finance the estimated $2.3 billion cost of building
and launching the network of 700-lb. satellites. The firm is
negotiating a joint venture with British Telecom, as well as
with potential investors in Japan, Australia and Hong Kong.
Motorola estimates that Iridium will need 700,000 users to
become profitable. While that is roughly equivalent to the
Pittsburgh white pages, it is less than 1% of the 100 million
people around the world who are expected to be using cellular
phones by the end of the decade.
</p>
</body>
</article>
</text>