Globalstar and Iridium seek ways to keep their cash intact

by | May 12, 2015 | Satellites | 0 comments

While other outfits plan new LEO satellite constellations, two of the major constellations already in existence have their own cash flow concerns.  However, they are using inventive ways to navigate around the problem.  Globalstar Inc has managed to negotiate a deal with Hughes Network Systems, its ground network provider to accept payment in shares rather than cash for its services.  The deal involves 95% of a US$16.3 million owed being paid in discounted shares.

Meantime, Iridium Communications has reportedly approached its financiers including the export credit bank Coface, to give them leave from contractual obligations stipulating that they have to buy launch plus one year in orbit insurance for their new Iridium Next second generation satellite constellation, which given insurance sentiment against untested large constellations, will be priced at very high premiums. For the time being, the firm is counting on its remaining satellites working until next year when the new satellites will start to be launched.

While Iridium has suffered several satellite failures over the years, its constellation’s recent reliability has reportedly been better as it continues to service both voice and business-to-business data markets.

While revenues from Russia have fallen mainly due to the rouble devaluation, the firm’s financial position was recently bolstered by the signing of a new five-year contract worth US$400 million to provided US government and defence personnel with unlimited access to the Iridium Communications network.


About Seradata

Seradata produce the renowned Seradata database. Trusted by over 100 of the world’s leading Space organisations, Seradata is a fully queryable database used for market analysis, failure/risk assessment, spectrum analysis and space situational awareness (SSA).

For more information go to

Related Articles




nasaspacexecoreviewsissesaArianespacevideochina25virgin galacticFalcon 9v1.2FT Block 5falcon 9ULARoscosmosevaDGAspacewalkaviation weekaressoyuzIGTInternational Space StationBeidouawardsspaceRocket LabStarlinkBlue OriginSatellite broadcastingrussiamoonISROAirbus DSCargo Return VehicleboeingmarsblogresearchOneWebspaceshiptwoorionjaxaimpacthyperboladelaymarsEutelsatdemocratrocketlunarhypertextobamagoogle lunar prizelaunchVegabarack obamaconstellationSEStourismnorthfiguresthales alenia spacespaceflightnode 2fundedRaymond LygoIntelsat2009Lockheed MartinExpress MD-2Elon MuskAtlas Vromess2dassault aviationaviationLucy2008wk2sstlukradiomissilesuborbitaldocking portexplorationAriane 5 ECAVirgin OrbittestinternetChina Manned Space EngineeringAriane 5Northrop GrummanSLSLong March 2D/2sts-122Electron2010space tourismflightcotsnewspapermissile defensegalileospaceportExpress AMU 1Long March 4Cbuildspace stationaltairinternational astronautical congresssoyuz 2-1ashuttleProton MEuropean Space AgencyLauncherOneCosmosIntelsat 23scaled compositesrulesspace shuttlenew yorkhanleybudgetatvVietnamshenzhouAriane 6congressMojaveboldenLong March 2COrbital ATKnew shepardInmarsatGuiana Space Centeriaccneslunar landerksclawsSpace Systems/LoralUK Space AgencyLong March 4BILSUS Air ForceprotonTalulah RileyApollodarpaFalcon 9v1.2 Block 5Kuaizhou 1AVega CSkylonAstriumeupicturebaseusaastronautdragonlanderfiveeventTelesatNorth KoreaSSLElectron KSAprilSNC50thinterviewfalconSea LaunchLong MarchWednesdaycustomerlinkatlantissuccessor