WASHINGTON-Iridium L.L.C. gave itself an early Christmas present on Dec. 23 when it announced
it was buying Claircom Communications Group Inc. from AT&T Corp. and Rogers Cantel for $65 million in cash and
debt.
Seattle-based Claircom is the second largest provider in the United States of telephone communications to
commercial airlines-such as Northwest, Delta International and Southwest Airlines-after GTE Airfone Inc. The
company owns and operates two switching centers and a digital air-to-ground network of 160 ground stations across
the United States, Canada and Mexico, as well as 1,700 phones in various commercial and executive airplanes,
allowing passengers to make phone calls while in flight.
Iridium said the purchase will allow it to further expand its
marketing and phone services by making Iridium services available to business travelers, even while they are in an
airplane. “Iridium exists to serve the traveler … wherever they are we want them to make that important call or
receive a message,” said Edward F. Staiano, vice chairman and CEO of Iridium.
Claircom’s telephones will be
renamed Iridium after the sale is completed in October.
Seattle-based Claircom began revenue service in 1993.
Iridium said it pursued Claircom rather than GTE Airfone because of Claircom’s strong international focus.
Iridium
expects to keep the current management team at Claircom, Staiano said.
Iridium, which began commercial
operation Nov. 1, hopes the acquisition of Claircom will help business travelers better identify with its satellite system.
Iridium’s networks uses 66 low-earth-orbit satellites combined with a terrestrial cellular network to create a seamless
international wireless communications system.
Iridium also is trying to solve complex distribution problems that left
many customers without handsets. “As we solve problems in one country, the number of handsets [delivered to
customers] jumps,” Staiano said.
