[Satellite TODAY Insider 02-21-11] Inmarsat issued a $60 million contract to iDirect to provide ground network infrastructure and core module technology to integrate into Inmarsat’s Global Xpress satellite terminals, Inmarsat announced Feb. 18.
    The agreement will see iDirect design, develop, manufacture, test and commission the Global Xpress ground network as well as supply a compatible core modules, delivering up to 50 Mbps downlink speeds to maritime satellite terminals. Inmarsat said iDirect also plans to produce a range of core modules designed for the aeronautical and government sectors.
    "This is another big step for us toward setting the new standard in VSAT by offering reliable, easy-to-use broadband connectivity solutions for remote and mobile platforms on land, at sea and in the air, wherever they are needed. iDirect’s technology base and track record for on-time performance strongly support our planned introduction of Global Xpress commercial services in 2013," Inmarsat’s Global Xpress Managing Director Leo Mondale said in a statement.
    Analysis firm NSR called the Inmarsat/iDirect deal a "win-win for both companies," as it creates benchmarks for Inmarsat to produce viable solutions from its Global Xpress service.
    "Global Xpress was initially seen as a defensive maneuver against FSS-based VSAT solutions ever encroaching on their legacy L-band market. It is no secret that Ku-band and, eventually, Ka-band mobile solutions are becoming increasing competition for Inmarsat, especially in the highly coveted maritime market. With Global Xpress enabled by iDirect, Inmarsat is now poised to jump ahead of the FSS competition and grow their business through new a new frequency and higher data rates at a much lower cost per bit," NSR said in a report issued Feb. 18.
    The firm added its assertion that iDirect was a top option for Inmarsat over suppliers such as Thrane & Thrane and Hughes, both of which also offer MSS and VSAT solutions. "iDirect can now be considered a Ka-band player and given the direction of mobility towards this frequency band, this deal should pay dividends over the mid- to long-term," the report said. "However, questions remain regarding the overlap of Global Xpress with the legacy Inmarsat L-band business, so the next few years will be critical for developing a dual L-band/FSS strategy that does not cannibalize the company’s bread and butter. But in the end, this is a good first step for this new network."

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