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    DOD reserves gateway to Iridium's global satellite service; other agencies mayfollow

    The Defense Department is the largest single customer for Iridium LLC’s
    financially troubled global satellite communications service.


    DOD has reserved one of the consortium’s 12 ground gateways capable of serving up
    to 120,000 users and 1,000 simultaneous calls. The Army, Navy and Air Force are testing
    ways to integrate the Iridium satellite network into their communications plans.


    At a recent briefing at Iridium’s Washington headquarters, officials said the
    federal government ranks second on their marketing list, behind the maritime industry and
    ahead of the energy and construction industries.


    Civilian agencies that have expressed interest include NASA, the Federal Emergency
    Management Agency and the Federal Aviation Administration. FAA plans to use the
    consortium’s airplane communications equipment for Alaska-to-Siberia air routes.


    “We’re hopeful we will have that program up this year,” said Neal F.
    Meehan, Iridium’s vice president of aeronautical services.


    Iridium began offering commercial service in November on a constellation of 66
    satellites circling in polar orbits 485 miles above the Earth. The relatively low orbits
    mean that small handsets will suffice for communication. On-board signal processing lets
    the satellites hand off signals to each other, giving virtually global coverage.


    But Iridium service is expensive—$50 a month per user and $5 per minute for
    outbound calls.


    Also, capacity is limited. Chief executive officer Edward F. Staiano said the
    satellites handle only about 1.5 billion minutes of calls a year. Iridium is developing
    products and services for markets such as the government, which already use satellite
    communications.


    Iridium expects to ship its AirSat 1 single-channel aircraft transceiver in April. A
    five- or eight-channel model for commercial aircraft will be ready early next year. The
    products will leverage Iridium’s acquisition last year of in-flight telephone service
    provider Claircom Communications Group Inc. from AT&T Corp. By rebranding in-flight
    phone sets, Iridium can make its service available on about 1,500 commercial aircraft and
    400 business jets. The in-flight service will cost less than other satellite
    communications and less than Iridium’s own ground service, Staiano said.


    FAA’s plan for using Iridium on Siberian routes is a small deal, Meehan said, but
    talks are under way about using Iridium as a communications element in broader air traffic
    control systems.


    NASA is testing Iridium for its ER-2 high-altitude reconnaissance aircraft, the
    civilian version of the military’s U2-S spy plane, he said.


    FEMA has shown interest in Iridium telephones for disaster response, said John R.
    “Ted” O’Brien, vice president of vertical market sales for Iridium.  


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