TerreStar plans satellite to power hybrid cellphones

We never could understand the allure of satellite phones — those briefcase-sized dinosaurs that could connect from anywhere for about $10 a minute — and apparently most people felt the same way, which is why the industry collapsed. Now, however, new companies are readying a next generation of satellite technology, which they hope will be able to create a market for hybrid satellite-cellphones that can use terrestrial networks and fall back to satellite when out of range of a compatible network. This week, Virginia-based TerreStar Networks announced that it was working with Loral Space Systems to build a satellite designed specifically to communicate with cellphones. The satellite is expected to be ready for launch by 2008, which should give TerreStar time to line up some cellphone operators to participate — or for it to go bust trying.