Plessey Malawi today announced it would begin marketing the Iridium satellite system in Malawi. The Iridium system provides telecommunications to industries operating in remote areas and to people living in, or travelling to, areas where there are no terrestrial (landline) or cellular services.  Iridium is the first, and only, company to provide voice and paging services with truly global coverage. 

"Telecommunications links are a prerequisite for a modern economy," said Derek Oehley, Iridium Africa's marketing manager. "The ability to use satellite phones in remote areas where fixed line and cellular communications do not exist will be a great boost to Malawi's economy, and its people."

Plessey Malawi, Iridium Africa's local business partner and trusted supplier of business communications equipment, will be marketing the Iridium service to users in government, transport, tourism, agriculture, construction, health and research and other industries.  "These customers need simple-to-use and truly portable communications in the remote areas and understand the contribution cost effective communication can make to the bottom line, " said Clive Bagshaw, managing director of Plessey Malawi.

Bagshaw pointed out that customers who have seen the Iridium handset have been impressed by its small size, its ease of use and the phone's dual role capability as either a satellite phone or a cellular phone.  "Iridium pushes the earlier generation briefcase-sized satellite phone into the history books.''  

And even more impressive, said Bagshaw, is the price tag of Iridium satellite phones, which retail at approximately half the cost of other satellite telephone systems.

Iridium handsets sell for around US$ 1500 and the pager for approximately US$500. Airtime rates range between US$1,45 (for Iridium satellite-to-Iridium satellite phone calls) and a fixed international call rate of US$3 per minute (for calls made from an Iridium phone to any other phone system, anywhere in the world).  All rates are exclusive of local VAT and taxes and in the case of handsets, exclusive of freight, local VAT and taxes.

A wide range of accessories tailored to the communication needs of each user - such as portable docking stations, car kits and magnetic mountable antennas - are also available.

Furthermore, Iridium offers subscribers the convenience of one phone number, one contract and one monthly bill.  Users roam effortlessly from satellite to cellular networks depending on the most cost-effective option for a given moment.

Although callers in Malawi are unable, at present, to dial the Iridium 8816 country code from a terrestrial or cellular phone, calls can be made from an Iridium handset to any phone system in Malawi (terrestrial or cellular) or the rest of the world.  Messages to the Iridium pager may be sent via the Internet for the cost of a local call, allowing users in Malawi to contact an Iridium pager, no matter where it is in the world, from any landline with Internet connection.

If Malawi is to grow as a country, it needs to connect with the rest of the world. "Economies grow by people talking to each other and developing opportunities, " said Oehley. "GMPCS (Global Mobile Personal Communications by Satellite) services, as offered by Iridium, will not only provide African countries - such as Malawi - with access to the world, but it does so without requiring governments to invest in costly telecommunications infrastructures."

It has been estimated that it costs an average of US$750 for every telephone line installed in Africa. But, says Oehley, cost is only one of many factors  that will make it difficult for governments and telecommunications operators to even contemplate universal access or dedicate large amounts of capital for telecommunications expansion.

Iridium Africa, a privately owned affiliate of the Mawarid Overseas Company, has to date obtained over 40 licenses to operate its system in Africa, a move which shows Africa recognises the benefits of a satellite telephone for increasing industrial efficiency.

On Friday, 13 August 1999 Iridium LLC opted for a voluntary Chapter 11 Protection filing in the US Bankruptcy Court in Delaware, USA. Iridium Africa has joined other major stakeholders - banks, bondholders and
strategic partners including Motorola - in supporting Iridium LLC's decision to pursue an orderly, court-supervised financial restructuring under the Chapter 11 filing. As an independent company, Iridium Africa is financially unaffected by the restructuring of Iridium LLC.

A Chapter 11 reorganisation does not have the same connotation as 'bankruptcy' has in the rest of the world.  Essentially, Chapter 11 in the US is a process designed primarily to give a financially troubled company the 'breathing room' to reorganise its business affairs. The action does not disable the company, and business will proceed as usual.  Iridium LLC CEO, John Richardson said that Iridium LLC's largest investors - including Motorola and Nippon Iridium Corporation - fully supported its efforts to restructure and remained committed to Iridium's success.