| ARLINGTON, Va.May 26,
2002
Iridium Satellite LLC, which owns and
operates
the world's first and only global wireless communications system, today
announced that Australia's Telstra Corporation Limited has signed a
service partner agreement to market and sell Iridium services. The
multi-year deal enables Telstra to retail Iridium services and equipment
to strengthen rural and remote communications throughout Australia.
With competitive pricing and complete coverage of Australia, both parties
anticipate a new level of interest in Iridium services across the
continent's rural and remote regions. Iridium Satellite's CEO, Gino
Picasso, said high costs previously posed a major barrier to those
entering the satellite services market.
"However, the new Iridium, with its affordable pricing, business
model and leadership, has helped overcome the barriers and is proving to
be a real success story," said Picasso. "The
Telstra-Iridium agreement demonstrates that affordable satellite
communications has an important role to play in remote markets."
Eighty-six percent of the world's landmass and all of its oceans are in
areas without wireless or landline service coverage. Iridium
addresses the situation by providing coverage in all ocean areas, air
routes, and landmasses, including the Poles. For people who live,
work and travel in areas outside cellular coverage or in areas without
landline services, Iridium offers an immediate, viable solution.
Telstra will provide Iridium services on a
non-exclusive basis in Australia. The company will work closely with
its Asia Pacific market coordinator, Quadrant Communications, to market
and sell Iridium services including voice, data and text messaging.
Telstra will also support the entire range of specialty equipment built
for use with the Iridium system.
Quadrant Iridium Limited, which is a significant investor in the Iridium
project, facilitated the negotiations with Telstra. Under the deal,
Telstra will purchase equipment and airtime from Iridium and will resell
services through its existing distribution network. Like all service
providers in Iridium's global network, Telstra will be responsible for
providing the crucial link to the customers by acquiring, provisioning and
supporting their use of the service.
According to Michael Boyd, chairman of Quadrant Iridium Limited, Iridium's
competitive pricing and comprehensive constellation played a significant
role in Telstra's decision to become a service partner.
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