Iridium Press Rel: Iridium Satellite Signs Deal with Telstra
Document date: Wed 01 May 2002 Published: Wed 01 May 2002 10:42:47 Document No: 215539 Document part: A Market Flag: Y Classification: Other QUADRANT IRIDIUM LIMITED 2002-05-01 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ Iridium Satellite LLC, which owns and operates the world's first and only global wireless communications system, today announced that Australia's Telstra Corporation Limited ("Telstra") signed a service partner Agreement to market and sell Iridium services.
The multi-year deal will enable Telstra to retail Iridium services and equipment to strengthen rural and remote service throughout Australia.
Iridium Satellite launched service in April 2001 after purchasing the assets of the bankrupt Iridium LLC.
With competitive pricing and complete coverage of Australia, both parties anticipate a new level of interest in Iridium services across Australia's rural and remote regions.
Iridium Satellite's CEO, Gino Picasso said high costs previously posed a major barrier to entrants into the satellite services market.
"However, the new Iridium's affordable pricing, business model and leadership has helped overcome these barriers and is Proving to be a real success story,"
"The Telstra-Iridium agreement demonstrates that affordable satellite communications have an important role to play in remote markets," said Mr Picasso.
"The Australian market in particular has unique attributes, including vast remote regions and highly developed industries that operate in those territories, that make satellite communications whether mobile or fixed, industrial or in the home, a critical part of the telecommunications infrastructure," Mr Picasso said.
Eighty-six percent of the world's landmass and all of its oceans are in areas without wireless or landline service coverage. The Iridium satellite network service addresses this situation by providing coverage in all ocean areas, air routes, and landmasses - even the Poles. For people who live, work and travel in areas outside cellular coverage or in areas without landline services, Iridium offers an immediate, viable solution.
Iridium's competitive pricing and comprehensive constellation played a significant role in Telstra's decision to sign on as an Iridium service partner, said Quadrant Iridium Limited Chairman Michael Boyd.
"Telstra's commitment to offering satellite services sends a strong signal to the market regarding the viability of this business and the strength of Iridium's new model. We expect to achieve significant gains in Australia and throughout the region as result," Mr Boyd said. Telstra will provide Iridium services on a non-exclusive basis in Australia. The company will work closely with Iridium's Asia Pacific market coordinator, Quadrant Communications, to market and sell Iridium services including voice, data and text messaging. Telstra will also support a range of specialty equipment built for use with the Iridium system.
Quadrant Iridium Limited, which is a significant investor in the Iridium project, facilitated the negotiations with Telstra. Under the deal, Telstra will purchase equipment and airtime from Iridium and will resell it through its existing distribution network. Like all service providers in Iridium's global network, Telstra will be responsible for providing the crucial link to the customers by acquiring, provisioning and supporting their use of the service.
Telstra Corporation Limited is Australia's leading telecommunications and information services company. It offers a full range of voice and data services on its fixed and mobile networks; competes in all telecommunications markets and provides wholesale services to other carriers and carriage service providers.
Telstra's fixed telephone network reaches virtually all Australian homes and most Australian businesses and its two digital mobile networks, GSM and CDMA, together cover over 97% of the population and GSM international roaming to 90 countries.
Telstra is Australia's largest Internet service provider as well as offering a variety of high-speed delivery platforms, such as ADSL, ISDN, and a hybrid fibre co-axial cable broadband network, IP-VPN and an international satellite infrastructure through affiliates.
In February 2001, Telstra completed a strategic alliance with Hong Kong based Pacific Century CyberWorks (PCCW), to take key growth business across Asia and globally. The alliance comprises:
* Reach Ltd a 50/50 joint venture with PCCW. Reach is a leading Asian and global connectivity Provider
* Regional Wireless Company (RWC) (60 per cent owned by Telstra) which owns and operates one of Hong Kong's leading mobile telephone businesses, Hong Kong CSL Limited (Hong Kong CSL).
Telstra has one of the highest debt ratings of its peers both locally and international. Telstra's long-term debts are rated AA- and Aa3 by Standard & Poors and Moody's respectively.
Telstra is 50.1 per cent owned by the Commonwealth Government of Australia. Its 49.9 per cent privately owned shares are listed on the Australian, New Zealand and the New York Stock Exchanges.
ABOUT IRIDIUM SATELLITE LLC
Iridium Satellite LLC is the only provider of truly global satellite voice and data solutions with complete coverage of the Earth (including oceans, airways and Polar Regions). Through a constellation of 66 low-earth orbiting (LEO) satellites operated by The Boeing Company, Iridium delivers essential communications services to and from remote areas where no other form of communication is available. The service is ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil & gas and heavy construction. According to an independent study, Iridium's constellation is expected to last until at least mid-2010. For more information, please visit www.iridium.com or call +1 703-465-1015.