US based satellite voice and data operator Iridium Communications has announced plans to expand into South Africa. The company provides voice and data coverage to satellite phones, pagers and integrated transceivers over Earth’s entire surface.
The new…
US based satellite voice and data operator Iridium Communications has announced plans to expand into South Africa. The company provides voice and data coverage to satellite phones, pagers and integrated transceivers over Earth’s entire surface.
The new entity, Iridium South Africa, is licensed to operate, provide and sell mobile satellite services (MSS) in the country. Iridium’s MSS will be used by the South African government to provide backup communications in urban and rural areas and in emergency situations.
Iridium’s voice and data services are ideal for South Africa because of its coastal access to the South Atlantic Ocean and Indian Ocean, as well as its large rural landmass and significant mining operations.
The company anticipates opportunities for its 200 global distribution partners to form new partnerships to deliver innovative voice and data applications that will connect South Africa to the global Iridium network.
The South African venture follows hot on the heels of Iridium’s securing approval from the Russian Government in May to enter the Russian market. Prior to this, Iridium sold its services in Russia via a collaborative agreement with Khrunichev Space Center. Khrunichev owns an Iridium gateway and discussions are underway around gateway modernisation and operations.
The company recently secured financing for the US$2.9bn launch of a new constellation of 81 commercial satellites, with spacecraft to be manufactured by Thales Alenia Space. TAS pipped Lockheed Martin to what was the biggest prize in the satellite industry in the last few years.
Iridium’s network is currently based on 66 orbiting satellites. It boasts 359,000 subscribers. The new contract will establish the next generation of this system, under the brand Iridium NEXT. Space Exploration Technologies signed a US$492m deal to carry the satellites into space starting in 2015.
Coface, the French export credit guarantee organisation agreed to guarantee $1.8bn of the funding for the construction of the spacecraft, making it easier for Iridium to raise money from a syndicate of French and international banks. The remaining funds will come from Iridium’s cashflow.
Goldman Sachs, Societe Generale and Hawkpoint have been advising Iridium on the financing.
