IRIDIUM GAINSGSA CONTRACT FOR $52 MILLION | RCR Wireless

IRIDIUM GAINSGSA CONTRACT FOR $52 MILLION

by Reily Gregson

SCOTTSDALE, Ariz.-Motorola Inc.’s Worldwide Information Network Services group announced the U.S. General Services Administration awarded it a contract for Iridium L.L.C. products and services.

The contract is in addition to that with the U.S. Defense Information Systems Agency, part of the Department of Defense. The $219 million DISA contract cleared the way for other government agencies to have access to the Iridium System.

The GSA contract, valued at about $52 million in a two-year period, will allow U.S. government agencies, contractors and other organizations recognized by the government to buy Iridium voice and paging services through it as a reseller. Service will be provided through the Iridium North America gateway in Tempe, Ariz.

The DISA contract will provide service through a government-dedicated gateway in Hawaii.

The company did not say how many users are expected as a result of the GSA contract. However, any contract with the potential for a large number of users represents a boon for the struggling Iridium, which has until the end of May to reach its subscriber forecast of 17,000 before it is in violation of loan covenants.

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