The Hindu Business Line : Iridium Sat promises quality services

THE first year of the new millennium may have been a distinctly difficult one for hi-tech businesses the world over — but the folks at Iridium have a different story to tell.

Iridium Satellite LLC, the Arlington (Virginia)-based outfit which had bought the assets of the bankrupt Iridium LLC and which describes itself as ``the only provider of truly global satellite voice and data solutions with complete coverage of the earth'' has issued a statement in which it has sought ``to clear lingering confusion about the ownership of the satellite network, as well as its relationship with the predecessor company.''

It may be recalled that Iridium Satellite LLC had, in December 2000, announced the completion of its acquisition of the operating assets of Iridium LLC and its subsidiaries after the latter had defaulted on bank loans totalling more than $1.5 billion. The company had further defaulted on a $750 million bank loan guaranteed by Motorola, Inc., the biggest investor in the satellite phone company.

In specific, Iridium Satellite LLC has reiterated now that it is an entirely new company, founded in December, 2000, by a group of private investors formed to purchase the assets of the bankrupt Iridium LLC, and stressed the following:

Iridium LLC is in no way, shape or form associated with the former company, nor is it a party to any legal issues involving Motorola or its shareholders;

Iridium Satellite LLC operates at 10 per cent of the former company's costs. In fact, it provides higher quality and more affordable voice, paging and remote data services globally with 85 per cent fewer employees; and

The firm, which is currently the operator of the world's largest commercial satellite network, targets industrial, government and individual customers with a clear need for remote communications capabilities where no other form of communication is available.

Further, the company has made a prediction, based on an external study by an independent company (Aerospace Corporation of El Segundo, California) and internal analyses of satellite and operational data, that its constellation of satellites will retain mission functionality into the next decade.

Mr Gino Picasso, Iridium Satellite CEO, says, ``Based on our observations and the Aerospace Corporation's analysis, we are confident that the Iridium satellite constellation will deliver services to customers through mid-2010. The operational constellation is performing beautifully and, with the 14 in-orbit and ground spares, we'll continue providing quality service for years to come.''

Iridium Satellite is expected to launch additional satellites in 2002 to ensure the system's long-term performance.

Analysts, commenting on the made-over company's performance in diverse fora, point out that Iridium Satellite may well make the satellite phone business commercially viable with its success in signing a $72- million contract with the US Department of Defence and its proposal — still pending clearance — made to the US Federal Aviation Administration for monitoring cockpit communications.

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