Space News broadcasted a webcast earlier this morning featuring an interview session conducted by Peter de Selding with Inmarsat CEO, Andrew Sukawaty. Inmarsat is a mobile satellite service provider and currently has a fleet of 11 satellites.
During the discussion, Sukawaty discussed the new mobile handset that Inmarsat introduced about nine months ago. Of course, the landscape is getting more competitive for Inmarsat with Globalstar and Iridium both making their own headway in the industry. Sukawaty explained that the handset business is "an incremental additional business to us." Inmarsat spent around $100 million to develop the handset and infrastructure to support their handheld business.
Other businesses, explains Sukawaty, are dependent on the handheld business. "We're going to make money on the handheld business, there's no question," said Sukawaty. Indeed, how much money Inmarsat ends up making is dependent upon their customers. "Globalstar's network failed a few years ago," Sukawaty explained. "They've been out of the market. They will be back in."
Sukawaty went on to add, "We think Iridium stands a very good chance of failing before they get their constellation up." The constellation Sukawaty is referring to is Iridium NEXT, the 66 cross-linked satellite constellation fleet set to launch in 2015. "Look at the data and the announcements over the years. The date keeps getting moved out and out," Sukawaty said.
Of course, if Iridium NEXT does fail, Sukawaty says Inmarsat is standing there ready, because that's a huge additional opportunity. It did not take long for Iridium to respond to Sukawaty's comment on the LEO fleet.
Matt Desch, CEO of Iridium replied saying, "Our customers have come to rely on the Iridium network to work when they need it, everywhere on the planet. For our customers, where critical communications are essential, failure is not an option. Any doubt is wishful thinking by our competitors."
Desch continued, "We look forward to replacing the world's largest constellation with Iridium NEXT beginning in 2015, and continuing to deliver enhanced capabilities on the world's furthest reaching network."
You can also read more from Desch here.
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