About Iridium Communications Inc. Iridium® is the only mobile voice and data satellite network that covers the entire world. Iridium enables connections between people, organizations, and assets to and from anywhere in real time. With its ecosystem of partner companies, Iridium offers an innovative and rich portfolio of reliable solutions for markets that require truly global communication. The company recently completed its next-generation satellite network and launched its new specialty broadband service, Iridium Certus®. Iridium Communications Inc. is headquartered in McLean, Virginia, USA, and its common shares trade on the Nasdaq Global Select Market under the symbol IRDM. For more information about Iridium`s partner products, services, and solutions, see www.iridium.com. For more information about Iridium, see: www.iridium.com In a statement, the agency said it signed the agreement because the Iridium system offers mobile and cryptographically secure phone services in small handsets that are currently not available to government-affiliated users worldwide. For more information about Iridium, please visit: www.iridium.comFor more information about the AMTC, visit: www.amtcenterprise.org WASHINGTON — After five months of renewals, the U.S. government has signed a seven-year agreement with Iridium Communications for unlimited use of the Company`s Mobile Communications constellation based in McLean, Virginia. . MCLEAN, Va., Sept.
16, 2019 /PRNewswire/ — Iridium Communications Inc. (NASDAQ: IRDM) announced today that it has received a seven-year, $738.5 million fixed-price contract with the U.S. Department of Defense through the United States. Air Force Space Command (AFSpC) offers unlimited satellite services from its unique LEO (Low Earth Orbit) constellation. Through AFSpC`s Enhanced Mobile Satellite Services (EMSS) program, Iridium will continue to provide access to secure and unsecured global voice, broadcast, network, or tactical communications (DTCS) systems and certain other services for an unlimited number of DoD-approved subscribers and related DoD-approved subscribers. With an unprecedented seven-year term, this contract demonstrates the enduring value Iridium offers in support of the Department of Defense`s vision for a satellite communications company (Satcom) and in recognition of the significant investments the company has made in its network in recent years. “Iridium`s relationship with the U.S. government has been a model of what a public-private partnership should look like in the satellite industry,” said Matt Desch, CEO of Iridium. ==References=====External links===The government has made significant investments in Iridium over the years, and we have also invested billions of dollars to ensure that our network remains the first reliable mobile satellite service with a proven ability to be deployed anywhere in the world.
Desch added, “While this new contract provides for the continued adoption of Iridium, it will also drive continued innovation through collaboration between the U.S. government, Iridium, industry partners, and user communities.” Iridium borrowed $1.8 billion in 2010 from a consortium of banks through a credit facility from BPIAE (formerly Coface), which it used to finance the purchase of 81 satellites from The French Italian manufacturer Thales Alenia Space. The company still owes $1.63 billion under the credit facility, according to a July 23 filing with the U.S. Securities and Exchange Commission. The deal is a huge boost for satellite communications network Iridium, which planned to decommission satellites less than four months ago. Originally proposed and built as a satellite phone company and operated by Schaumburg, Illinois Motorola Inc., the high-priced service could never attract enough customers to stay in business (see history). Iridium LLC in Reston, Virginia, filed for bankruptcy in August last year. A DOD spokeswoman had no comment on the contract. To support the EMSS program over the past 20 years, Iridium and the Ministry of Defense have jointly developed an operational environment that provides the network`s essential visibility and collaboration to enable successful execution of the fighter`s mission. In fact, Iridium was one of the first six industry participants in the Trade Integration Cell (CIC) to deal with the United States. The Air Force`s Combined Space Operations Center (CSpOC) is designed to improve information sharing and network situational awareness, while the Department of Defense continues to use commercial satellite networks. This now includes the ongoing transition of EMSS as well as all commercial SATCOM services from the Defense Information Systems Agency to the USAF.
Approximately 125,000 subscribers use Iridium services under the EMSS contract, a number that has increased by 145% since 2013. Through this contract, the Army intends to develop this payload to support the concept of a rapidly deployable Smallsat constellation to enable more efficient transmission of sensor-to-soldier data in the field. The development of this new payload is based on Iridium Burst technology®, a unique service that can transmit data to millions of simultaneously activated devices from space. Press Contact: Jordan Hassin Iridium Communications Inc.Jordan.Hassin@Iridium.com +1 (703) 287-7421Twitter: @Iridiumcomm Iridium`s new contract for enhanced mobile satellite services is two years longer and $238.5 million higher than the five-year contract the company signed in 2013, about four years before it began providing a second-generation constellation that promises better service. . Investor Contact: Kenneth LevyIridium Communications Inc.Ken.Levy@Iridium.com+1 (703) 287-7570 Under the current fixed-price agreement, the EMSS program has continuously and significantly increased the adoption and use of Iridium services®, while the features provided have also evolved over time, moving from simple voice and telephone data to broadcast services, multicast and other Internet of Things (IoT) services. During the previous contract period, the number of DoD subscribers increased from about 51,000 to more than 125,000, an increase of 145%. This growing adoption has also led to increased collaboration between the government and Iridium`s ecosystem of partners, who bring their expertise to further enhance the capabilities of the Ministry of Defense`s SATCOM portfolio. Iridium Next entered full service in February with 66 networked satellites in low Earth orbit. The system has nine spare parts in orbit and six other spare parts stored on the ground. .
Fitzpatrick said the EMSS contract would “set the stage” for Iridium to refinance the loans and allow the company to “do the things we see in our future, which is pay dividends, buy shares and make strategic investments.” The U.S. Department of Defense (DoD) and Iridium have been working together for more than 20 years, with hundreds of thousands of U.S. government subscribers using Iridium Push-to-Talk (PTT), voice, IoT, L-band broadband, and Iridium Burst services. Continued growth in the adoption of Iridium services is also driving increased collaboration between the government and the Iridium ecosystem of partners who bring their knowledge to complement and advance the DoD`s SatCOM capabilities. For this contract, Iridium partners Satelles and SEAKR will contribute their know-how as subcontractors to support the development. Iridium`s contract in 2013 was worth $400 million, or about $80 million a year. Under the new agreement, Iridium will receive an average of $105 million per year. “This contract could allow them to maintain their satellites for those two years, but this company will never, ever be a profitable business,” Hamilton said. The main problem is that the infrastructure is very expensive, with a satellite network and a number of ground stations to track and maintain operation.
“[The DOD agreement] still does nothing for the long-term viability of iridium.” This research and development project was made possible by an “Other Transaction Agreement” (OTA) to support the military and was completed between Advanced Technology International (ATI) and Iridium under the supervision of the Aviation and Missile Technology Consortium (AMTC). The OTA was developed by the authority of the Ministry of Defense to carry out this type of prototype projects and further streamline the process of introducing new technological solutions from various industries. . “This is one of the largest engineering contracts in Iridium`s history, and we are excited to once again highlight the value of Iridium and our partner ecosystem at the request of the U.S. Military,” said Matt Desch, CEO of Iridium. “This also represents another phase in the development of our growing relationship with the Ministry of Defense, and we are delighted to participate in this experimental adaptation of our service with multiple constellations.” Statements in this press release that are not purely historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has based these statements on its current expectations and the information we currently have. Forward-looking statements contained in this press release include statements regarding the value, duration, services and benefits of the Company`s new DoD contract.
.