Struggling satellite phone operator, Iridium is to cut rates by up to 65 per cent and flat per minute rate for international calls.
Motorola and Kyocera also said they will start selling handsets, pagers and selected accessories at "extremely competitive and affordable rates", but failed to give exact details.
The high cost of calls and handsets that have a price tag of around $3,000 each, have severely held back the take up of Iridium. Its launch was originally delayed because of technical difficulties.
During its latest financial quarter Iridium announced a loss of $505 million, on revenue of just $1.4 million. Its subscriber base at the end of March totalled just 10,294.
The latest move is not seen as enough to win the customers Iridium has been busy targeting with expensive mailings.
"At $3,000 for one of the handsets, you could buy two and a half really sexy laptops and have your remote workers use cellular technology," said one targeted customer in a recent campaign.
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