JOHANNESBURG, South Africa-Iridium L.L.C.’s recent financial restructuring and voluntary bankruptcy filing are not expected to have a financial impact on Iridium Africa, said Iridium Africa’s chief operating officer, Thomas Alabakis. Iridium Africa is an independent company wholly owned by the Mawarid Group and is financially unaffected by Iridium L.L.C.’s actions.
Iridium Africa, not Iridium L.L.C., holds the licenses to provide Iridium L.L.C.’s services in 54 countries in Africa, including Turkey and Cyprus.
Iridium Africa is confident there will be no disruption to its service, no matter what the outcome of the Iridium L.L.C. financial restructuring. Motorola Inc., Iridium L.L.C.’s largest shareholder and the operator of the system, has publicly indicated it would continue its full operational support for Iridium L.L.C., the gateways and all current and future subscribers during the reorganization process. In addition, Motorola said it would continue to invest in the technology, is actively developing the next generation of Iridium products and remains optimistic about the long-range future of satellite-based communications.
Alabakis assured all Iridium Africa customers there would be no lapse in the services provided by the company.
“We will continue to work with our service providers to sell the Iridium product and service throughout Africa,” he said. “We have a solid business plan, a sound financial structure and a satisfied customer base.
“During the month of July, Iridium Africa enjoyed its highest percentage of subscriber growth to date indicating acceptance of our new lower airtime rates and decreased equipment costs,” continued Alabakis.
Iridium Africa also said it does not believe the current financial restructuring of Iridium L.L.C. should have any impact on its ability to obtain a commercial license in South Africa.
The licensing delays in South Africa are not only affecting Iridium Africa-for satellite-based phone services-but also could affect Globalstar’s plans to begin operating in South Africa in October. A Globalstar spokesperson in South Africa maintains, however, that the service will be technically ready by October, testing trials will be conducted starting in November and the system will be fully ready for commercial launch by February.
ICO Africa at this stage cannot comment on how South African-based operations would be affected by the collapse of its parent company.
The deployment of global mobile personal communications services (GMPCS) in South Africa will, however, still be affected by the delay in issuing GMPCS licenses. The South African Regulatory Authority (SATRA) has recommended that Iridium Africa be granted an interim license to provide services. It is the only service to be granted this license. The regulatory body has drawn up the licensing conditions for GMPCS and forwarded them to the Department of Communication for approval.
However, the Department of Communication has expressed its concern about granting such a license. The department believes the Telecommunications Act No. 103 of 1996 does not specifically provide for this kind of license, and the GMPCS service or technology is not defined in the Telecommunications Act. It has been reported that the Department of Communications is seeking legal advice on whether the act allows this type of license to be issued, or whether the act needs to be rewritten.
Iridium Africa is currently working with SATRA and the Department of Communication to clarify the issues.
