WASHINGTON-The Iridium satellite network has found a home, in part, at the Pentagon, which agreed to pay $36 million a year to Iridium Satellite L.L.C. for unlimited use by the Department of Defense. The contract is good for one year, and the Pentagon can renew it for another year at the same rate, The Wall Street Journal reported.
Iridium Satellite is the only company that can offer encrypted, global wireless service, which will allow the DOD to discuss classified information using Iridium satellite phones.
With this contract, Iridium Satellite now needs about 40,000 additional private subscribers willing to pay 80 cents per minute before it can break even, according to a Pentagon document. Without the government contract, the company will need 60,000 customers, the Journal said.
Dan Colussy, former president of Pan American World Airways, and several other investors acquired Iridium L.L.C.’s assets last month for $25 million.
