Iridium to Slash Prices

Iridium World Communications Ltd., operator of the first global satellite-telephone network, plans to cut prices for its service as much as 65% and introduce a flat rate for international calls as it tries to lure customers. The cash-strapped company said Motorola Inc. and Kyocera Corp., which make the phones for its service, also cut prices on phones, pagers and other accessories. Domestic phone calls will cost $1.50 to $2.50 a minute, and international calls will be a flat $3 a minute. Satellite phones will sell for about $1,000, down from as much as $3,000. Washington-based Iridium, 18%-owned by Motorola, doesn’t have money to pay off $800 million owed to banks that extended credit until the end of this month. Iridium shares rose $1.28 to close at $9.03 on Nasdaq.