Iridium Awards Next Gen Satellite ContractIridium Awards Next Gen Satellite Contract

Iridium Communications has chosen Thales Alenia Space to deliver its next generation of 72 low-orbit satellites in a hard-fought contest that left Lockheed Martin as the loser. The entire program -- called Iridium NEXT -- is projected to eventually cost nearly $3 billion.

Iridium, based in McLean, Va., currently has about 360,000 subscribers using its mobile satellite service for voice and data, and the new satellite constellation is expected to appeal to a wider range of users. The new satellite fleet is scheduled to be formally launched between 2015 and 2017.

Thales Alenia Space is a joint French-Italian operation, although some 40% of the construction of the NEXT constellation will be carried out in North America, Iridium said Tuesday in announcing the award of the contract.

Iridium said that French export credit agency Coface has made provisions to cover 95% of the $1.8 billion credit facility for the project.

The fixed-price contract with Thales Alenia Space calls for construction of 72 operational satellites and in-orbit spares in addition to nine ground spares. Iridium said Thales Alenia Space can begin work immediately, before the completion of financing.

"We are very pleased with the completion of our comprehensive vendor selection process," said Iridium CEO Matt Desch, in a statement, adding that Thales Alenia has developed a way to seamlessly transition from its current network to the NEXT constellation. He added, "This is a critical step in maintaining our customers' and partners' confidence."

Desch noted that Iridium is the "world's only communications system that truly works everywhere in the world."