The Internet Space Race

Now McCaw and Motorola will cooperate on a super-satellite system

When is it time for companies to put aside a feud? When they can team up and take the lead in a hot new market. That's what's happening with Motorola Inc. and satellite startup Teledesic. Wireless entrepreneur Craig O. McCaw, chairman of Teledesic, split with Motorola CEO Christopher B. Galvin last summer, a few months after McCaw handed the contract to build the $9 billion Teledesic system to Boeing Co. instead of Motorola. Galvin then announced plans to build its own satellite system, Celestri. "This is about Motorola trying to wreck Teledesic because they hate the idea of Boeing competing as a satellite provider," Teledesic President Russell Daggatt told one newspaper interviewer.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.