Iridium Communications has contracted SpaceX to launch the 72 satellites that will comprise its second-generation constellation, Iridium NEXT.
Under the terms of the agreement, SpaceX will provide launch services to Iridium over a two-year period…
Iridium Communications has contracted SpaceX to launch the 72 satellites that will comprise its second-generation constellation, Iridium NEXT.
Under the terms of the agreement, SpaceX will provide launch services to Iridium over a two-year period starting in early 2015. The Iridium NEXT satellites will be launched into low-earth orbit by SpaceX’s Falcon 9 launch vehicle from the Vandenberg Air Force Base (VAFB) in California.
The contract is worth US$492m, the largest single commercial launch deal ever signed. However, this equates to a cost of approximately US$6.83m per satellite, which represents something of a bargain for Iridium. From SpaceX’s perspective, though, the lower returns will be outweighed by the commercial legitimacy that the contract will give to its Falcon 9 rocket.
UK satellite operator Avanti originally contracted SpaceX to launch its Ka-band satellite, Hylas, on a Falcon 9 but concerns over further delays in the schedule for the launch prompted it to switch launch provider to Arianespace. SpaceX has since successfully completed the inaugural launch of Falcon 9. Nonetheless the contract with Iridium stipulates that MSS operator is also in discussions with, and expects to contract with, at least one additional launch services provider.
Matt Desch, CEO of Iridium, commented: “This is the third major building block on the road to Iridium NEXT. Two weeks ago, we announced our fixed-price contract with Thales Alenia Space. We also announced our Coface-backed financing plan.
“We are proud to be partnered with SpaceX, and want to congratulate Elon Musk and the entire SpaceX team on its successful inaugural Falcon 9 launch. Hands down, SpaceX offered us the best value coupled with an unwavering commitment to flawless performance and reliability… SpaceX also offered dedicated Iridium NEXT launch slots within its manifest, which currently has 24 Falcon 9 flights scheduled ahead of us, including those for commercial and government customers, during the coming five years.”
The cost of the launch services are included in the total estimated US$2.9bn cost of Iridium NEXT. Iridium is currently in the process of raising a US$1.8bn debt facility to partially fund the system and like its rival Globalstar, has secure a guarantee for 95% of the financing from the French export credit agency Coface. The facility is predominantly being syndicated by French and international banks and expected to be completed this summer.
Goldman Sachs, Societe Generale and Hawkpoint continue to advise Iridium on the financing.
