Only seven months have passed since Matt Desch was named chairman and CEO of Bethesda, Md.-based Iridium Satellite LLC, the global supplier of mobile satellite communications services.
The former CEO of New Jersey-based Telcordia Technologies, a supplier of telecommunications software and services, Desch takes over Iridium during a time of transition for the company, but he anticipates an “explosion of applications” throughout the coming years. This is “an exciting growth company at a crossroads in its history,” Desch says. “As we move to the next generation [satellites], this is an exciting growth opportunity unlike anything else.”
That assessment of Iridium’s future is a direct contrast to comments made by Andrew Sukawaty, head of London-based competitor Inmarsat, who has publicly opined that “the clock is ticking” for Mobile Satellite Services companies that rely on low Earth orbit satellites to provide service. Sukawaty suggests those companies cannot compete with ones that use geosynchronous satellites, which can be deployed at half the cost of the low Earth orbit constellations.
Desch counters that Iridium is in fine shape, adding to its 175,000 customers at a 20-percent clip annually and leading him to believe that Iridium will have 400,000 to 500,000 customers within the next four to five years.
“I am excited to lead the Iridium team as it unleashes the full potential of this unique global network,” Desch says. “Iridium’s evolution from a handheld voice service to a full suite of voice and data solutions has impressed upon me the potential to become the world’s most robust, pervasive and fully-integrated global communications network.”
In February, Iridium unveiled plans to spend $2 billion to replace its 66-satellite constellation with a new generation of spacecraft that will provide even more services.
While Iridium is an infamous casualty among the high-profile telecoms bankruptcies that took place around the turn of the century, Desch also believes the public markets will not shy away from Iridium. The first launches for the new constellation are planned for 2013, and the bulk of the investment will be made closer to launch, meaning there is little immediate need to return to the public markets, he says. “Most of the costs will be handled by Iridium, which is fine since we’re profitable and can generate the cash to build the system,” Desch says.
Desch spoke to Via Satellite contributor J.J. McCoy about Iridium’s current operations and future plans.
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