Iridium Communications (IRDM) 33rd Annual Deutsche Bank Media, Internet & Telecom Conference summary

Business model and network strengths

• Operates a global L-band satellite network with unique global landing rights, providing high resiliency and safety certification for maritime and aviation use cases.

• Network consists of 66 satellites with self-healing capabilities and redundancy, supporting critical communications.

• Generates significant free cash flow, enabling over $1 billion in share buybacks since 2021 and annual dividend increases.

• Sells through a global partner network of about 500 partners, reaching niche and broad markets.

• Focuses on safety, reliability, and global coverage, differentiating from high-capacity competitors.

Long-term outlook and growth drivers

• Outlined a plan to grow service revenue from $650 million in 2025 to $1 billion by 2030, with $3 billion in free cash flow expected over the period.

• Growth driven by stable telephony, strong pricing power, and rapid expansion in IoT, especially personal communications devices.

• Acquired Satelles for position, navigation, and timing (PNT), aiming for $100 million in revenue from this segment by 2030.

• Pursuing direct-to-device (D2D) and Narrowband IoT as additional growth pillars, leveraging standards-based solutions.

• Partner network provides market insight and access to diverse end-user applications.

Direct-to-device (D2D) and industry positioning

• Sees room for multiple winners in D2D, with different technical approaches (e.g., Starlink, Apple, standards-based solutions).

• Pivoted to a standards-based D2D solution after Qualcomm partnership ended; accepted into 3GPP Release 19, with rollout expected in Q4 2024 and device integration in 2026.

• Solution offers global coverage and is positioned as complementary to proprietary and regional offerings.

• Major OEMs, including Samsung and Qualcomm, support the standard, with broad Android adoption anticipated.

• Confident in current spectrum and satellite capacity to support D2D growth through at least 2035.