A
news release:
Lansdowne, VA - December 12, 2000 - Iridium Satellite LLC today announced that it has completed the acquisition of the operating assets of Iridium LLC and its subsidiaries. With the asset transfer complete, Iridium Satellite LLC now owns all of the former assets of Iridium LLC, including the satellite constellation, the terrestrial network, Iridium real property and intellectual property owned by Iridium LLC. With a purchase price of $25 million and a cost structure that amounts to less than $7 million per month for all operations, the Company expects that it will be able to deliver extremely competitive satellite communications services to the market.
Iridium Satellite LLC will begin service to the U.S. government immediately. By the end of the 1st quarter of 2001, the Company will launch commercial satellite communications services to heavy industry and other government customers. The marketing strategy will be to focus on industrial clients whose operations require reliable communications to and from remote areas of the globe where terrestrial systems are not available. The Iridium system has the unique ability to reach all of the world's remote areas, including the airspace, the oceans and the many under-developed parts of the globe that currently have no communications systems. Specifically, the Company will pursue industrial segments including aviation, maritime, oil & gas, mining, heavy construction, forestry, emergency services and the leisure market.
"We do not see Iridium as a mass consumer service," said Dan Colussy, Chairman of Iridium Satellite LLC. "It is a communications service that addresses the very specific needs of the industrial markets and other specialized segments. Because of our significantly reduced cost structure and Iridium's unique system capabilities, we will be able to serve these markets more effectively than any other existing service."
Iridium Satellite will begin service with voice and data capabilities of 2.4
Kbps. The Company expects to offer enhanced data and Internet capability at 10 Kbps within six months of service launch and short burst messaging by the end of 2001. Iridium satellite also plans to offer specialty equipment for aviation, maritime and fixed applications.
Iridium Satellite LLC has contracted with The Boeing Company to operate and maintain the satellite constellation, and Motorola has agreed to provide subscriber equipment.