DoD Exercises Iridium Satellite Contract Option
Iridium Satellite LLC, provider of
secure global satellite voice and data communications, announces that the U.S.
Department of Defense (DoD) has exercised an option on its airtime contract.
The Defense Information Systems Agency (DISA) manages the contract under the
Enhanced Mobile Satellite Services (EMSS) Service Manager’s Office. The
contract gives unlimited airtime to warfighters and other approved users who
use the Iridium network for mobile voice, data and paging capabilities.
Since establishing its initial relationship with the DoD, Iridium has seen
extensive growth in system users and minutes used.
“DoD usage and subscriber growth has consistently increased year after
year,” said Carmen Lloyd, CEO and Chairman, Iridium Satellite. “We’ve seen
rapid growth in the number of DoD subscribers over the last four years.
Presently, there are more than 20,000 subscribers using more than 4 million
minutes per month in support of world wide activities.”
Given the increased growth of DoD requirements to date, the DoD renewal of
the Iridium airtime contract will ensure the continuation of service in FY 05
as well as provide a vehicle to respond to additional DoD requirements that
may arise. Iridium’s service has been critical to multiple DoD initiatives.
“We are extremely proud of the services we provide through our long-term
relationship with the DoD,” said Lloyd. “Combining our service, future
development efforts and unique capability to provide the only means for truly
global communications, we are confident that the DoD will continue to
experience positive results with their usage of the Iridium system.”
Iridium Satellite has experienced dramatic growth since the company’s
rebirth in 2001 through both its public and private sector business.
“Iridium now has positive EBITDA (Earnings Before Income Taxes
Depreciation and Amortization),” Lloyd said. “Our user base has exceeded
100,000 subscribers. Our satellite network is demonstrating exceptional
longevity with continued service expected for at least the next ten years
without the launch of additional satellites.”
In June 2001, Iridium started offering dial-up data and direct Internet
connections, followed by prepaid calling services in 2002 and short-burst data
and short messaging services (SMS) in 2003.
Lloyd announced that revenues grew more than 17 percent in the first half
of 2004. This growth follows record performance in 2003, when revenues
increased 44 percent over 2002 revenues. Iridium forecasts call for continued
revenue growth with flat costs.
While voice telephony remains the primary application for Iridium
Satellite, data services represent a particularly rapid growth area. Data
services now represent approximately 20 percent of Iridium traffic.
Independently verified studies predict that Iridium’s current satellite
constellation’s lifespan will extend to at least 2014 without additional
satellite launches. Iridium Satellite has an ongoing program of continuous
technical improvements in hardware and software.
About Iridium Satellite
Iridium Satellite LLC (http://www.iridium.com) is the only provider of
truly global satellite voice and data solutions with complete coverage of the
earth (including oceans, airways and Polar Regions). Iridium delivers
essential communications services to and from remote areas where no other form
of communication is available. Iridium makes this possible through a
constellation of 66 low-earth orbiting (LEO) satellites that The Boeing
Company operates. The service is ideally suited for industries such as
maritime, aviation, government/military, emergency/humanitarian services,
mining, forestry, oil and gas, and heavy construction. Iridium provides
service to the U.S. Department of Defense under a multi-year contract.
Iridium works with 44 seasoned service partners to sell and support the
service globally.
