The competitor, Globalstar, is now the only one of the three major players in the global satellite telecommunications industry that has not filed for Chapter 11 bankruptcy. It will begin a limited roll-out of its service in late September, with more complete service becoming available into the fall and winter.

ICO, a UK-based company, took shelter in Chapter 11 after it failed to convince its investors to put in hundreds of millions of dollars in the company to save it from what a spokesman called "massive" debts. The company had already made two attempts to raise $600 million, but lowered its target after failing.

ICO has already raised $3.1 billion, but says it needs another $1.6 billion to complete its financing.

Chapter 11 is a part of the U.S. bankruptcy code that gives companies protection from debtors.

All eyes are now on Globalstar, whose success or failure could have major consequences for the satellite phone companies. The industry has been reeling since Iridium, the only operating satellite phone company, plunged in bankruptcy two weeks ago.

ICO and Globalstar maintain that Iridium's failure was due primarily to poor execution, not because of a lack of demand for satellite telephony.

So with Globalstar now set to take the stage, ICO is cheering and rooting it on. A good start for Globalstar, ICO hopes, could shift investors focus away from insolvent Iridium.

"The investment climate for satellite telephony is less than perfect because of the troubles Iridium has had," said Michael Johnson, an ICO spokesman. "But it's a reality, and we have to live with it until one of the three can show the market that there's a demand for this service. And that we think is coming up in the shape of Globalstar."

Globalstar, a Loral-backed company, says its finances are in order, having already raised the $3.8 billion it needs for the development, construction, and deployment of its service.