Corporate Background
−Removed: We were formed as GHL Acquisition Corp., a special purpose acquisition company, in November 2007, for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination.
+Added: Iridium Communications Inc.
+Added: (“we,” “us,” or “Iridium”) was formed as GHL Acquisition Corp., a special purpose acquisition company, in November 2007, for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination.
On February 21, 2008, we consummated our initial public offering.
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We are the only commercial provider of communications services offering true global coverage, connecting people, organizations and assets to and from anywhere, in real time.
−Removed: Our unique L-band satellite network provides reliable communications services to regions of the world where terrestrial wireless or wireline networks do not exist or are limited, including remote land areas, open ocean, airways, the polar regions, and regions where the telecommunications infrastructure has been affected by political conflicts or natural disasters.
+Added: Our low-earth orbit (LEO), L-band network provides reliable, weather-resilient communications services to regions of the world where terrestrial wireless or wireline networks do not exist or are limited, including remote land areas, open ocean, airways, the polar regions, and regions where the telecommunications infrastructure has been affected by political conflicts or natural disasters.
We provide voice and data communications services to businesses, the U.S.
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This unique architecture minimizes the need for local ground facilities to support the constellation, which facilitates the global reach of our services and allows us to offer services in countries and regions where we have no physical presence.
−Removed: In February 2019, we completed our Iridium ® NEXT program, the replacement of our first-generation satellites with a new satellite constellation that supports higher data speeds for new products, including Iridium Certus ® broadband service.
−Removed: The new constellation maintains the same interlinked mesh architecture of our first-generation constellation and is compatible with all end-user equipment.
−Removed: The Iridium constellation also hosts the Aireon ® system, which provides a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast, or ADS-B, receivers on our satellites.
+Added: The current Iridium ® constellation was completed in 2019 and fully replaced our first-generation system while maintaining compatibility with all end-user equipment.
+Added: In addition to supporting new products with higher data speeds, it also hosts the Aireon ® system, which provides a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast, or ADS-B, receivers on our satellites.
We formed Aireon LLC in 2011, with subsequent investments from the air navigation service providers, or ANSPs, of Canada, Italy, Denmark, Ireland and the United Kingdom, to develop and market this service.
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Many of our end users view our products and services as critical to their daily operations and integral to their communications and business infrastructure.
−Removed: For example, multinational corporations in various sectors use our services for business telephony, e-mail and data transfer, including telematics and personal location tracking, and to provide mobile communications services for employees in areas inadequately served by other telecommunications networks.
+Added: For example, multinational corporations in various sectors use our services for business telephony, email and data transfer, including telematics and personal location tracking, and to provide mobile communications services for employees in areas inadequately served by other telecommunications networks.
Commercial enterprises use our services to track assets in remote areas and provide telematics information such as location and engine diagnostics.
−Removed: Ship crews and passengers use our services for ship-to-shore calling, as well as to send and receive e-mail and data files, and to receive electronic media, weather reports, emergency bulletins and electronic charts.
+Added: Ship crews and passengers use our services for ship-to-shore calling, as well as to send and receive email and data files, and to receive electronic media, weather reports, emergency bulletins and electronic charts.
Shipping operators use our services to manage operations on board ships and to transmit data, such as course, speed, fuel, weather and other navigation service data.
Aviation end users use our services for air-to-ground telephony and data communications for position reporting, flight following, emergency tracking, weather information, electronic flight bag updates, and airline operational communications.
−Removed: Explorers and adventurers use our services as a safety and critical
−Removed: communications lifeline to remain in contact with friends and family, as well as for emergency distress signals.
−Removed: We expect that Iridium Certus, launched in January 2019, will continue to drive growth opportunities in our commercial business.
−Removed: With initial broadband services provided for the maritime and land-mobile industries, Iridium Certus offers the flexibility to scale device speeds, sizes and power requirements both up and down based on the needs of the end-user.
−Removed: It provides a platform for our partners to develop specialized broadband, narrowband and midband (a term we use to describe services between our legacy 2.4 Kbps narrowband and our 128 Kbps and higher broadband offerings) applications on our network.
+Added: Explorers and adventurers use our services as a safety and critical communications lifeline to remain in contact with friends and family, as well as for emergency distress signals.
+Added: We have also seen growing adoption of our services to support autonomous systems, for which Iridium is used for command and control, image transmission and environmental data gathering via unmanned aerial, underwater and surface vehicles.
+Added: Iridium Certus ® provides a platform for our partners to
+Added: develop specialized broadband and midband (a term we use to describe services between our legacy 2.4 Kbps narrowband and our 128 Kbps and higher broadband offerings) applications on our network.
+Added: With broadband services provided for the maritime and land-mobile industries and a recently launched midband service designed for maximum mobility, Iridium Certus offers the flexibility to scale device speeds, sizes and power requirements both up and down based on the needs of the end-user.
+Added: We expect that these and future Iridium Certus service offerings will continue to drive growth opportunities in our commercial business.
government, directly and indirectly, has been and continues to be our largest single customer, generating $129.7 million in service and engineering and support service revenue, or 21% of our total revenue, for the year ended December 31, 2021.
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We are operating under a multi-year, fixed-price contract with the U.S.
−Removed: government to provide specified satellite airtime services for an unlimited number of U.S.
+Added: government, which we refer to as our Enhanced Mobile Satellite Services, or EMSS, contract to provide specified satellite airtime services for an unlimited number of U.S.
Department of Defense and other federal government subscribers.
−Removed: This contract has a total value of $738.5 million over its seven-year term, through September 2026.
+Added: The EMSS contract, entered into in September 2019, has a total value of $738.5 million over its seven-year term, through September 2026, with annual revenues to us between $100 million and $110.5 million over the term.
We may provide other services, such as Iridium Certus, to the U.S.
government under separate arrangements for an additional fee.
−Removed: In addition, we intend to invest approximately $10-$12 million over the first three years of our Enhanced Mobile Satellite Services, or EMSS, contract in support of the U.S.
−Removed: government to implement enhanced services at its dedicated gateway, which will be accounted for as additional cost of services.
government owns and operates a dedicated gateway that is only compatible with our satellite network.
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Total revenue increased from $583.4 million in 2020 to $614.5 million in 2021.
−Removed: We compete in the mobile satellite services sector of the global communications industry.
+Added: We compete primarily in the mobile satellite services sector of the global communications industry.
Mobile satellite services operators provide voice and data services to people and machines using a network of satellites and ground facilities.
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Businesses with global operations require reliable communications services when operating in remote locations around the world.
−Removed: Mobile satellite services users span many sectors, including emergency services, maritime,
−Removed: aviation, government, utilities, oil and gas, mining, recreation, forestry, heavy equipment, construction, railways and other transportation, among others.
+Added: Mobile satellite services users span many sectors, including emergency services, maritime, aviation, government, utilities, oil and gas, mining, recreation, forestry, heavy equipment, construction, railways and other transportation, among others.
Many of our customers view satellite communications services as critical to their daily operations.
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By offering mobile communications services with global voice and data coverage, mobile satellite service providers address the demand from businesses, governments and individuals for connectivity and reliability in locations not consistently served by wireline and wireless terrestrial networks.
−Removed: The mobile satellite services industry also benefits from the continued development of innovative, lower-cost technology and applications integrating mobile satellite products and services, including the continued advancement of IoT.
+Added: The mobile satellite services sector of the global telecommunications industry also benefits from the continued development of innovative, lower-cost technology and applications integrating mobile satellite products and services, including the continued advancement of IoT.
We believe that growth in demand for mobile satellite services is driven in large part by the declining cost of these services, the diminishing size and lower costs of voice, data and IoT devices, the rollout of new applications tailored to the specific needs of customers across a variety of markets, and expansion into new international markets.
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• terrestrial services, which use a network of land-based equipment, including switching centers and radio base stations, to provide wireless or wireline connectivity and are complementary to satellite services.
−Removed: Within the two major satellite sectors, fixed satellite services and mobile satellite services, operators differ significantly from each other with respect to size of antenna and types of services offered.
+Added: Within the two major satellite sectors, fixed satellite services and mobile satellite services, the products that operators offer differ significantly from each other with respect to size of antenna and types of services that the products can offer.
Fixed satellite services providers, such as Intelsat S.A., Eutelsat Communications S.A.
and SES S.A., are characterized by large, often stationary or fixed ground terminals that send and receive high-bandwidth signals to and from the satellite network for video and high-speed data customers and international telephone markets.
−Removed: By contrast, mobile satellite services providers, such as us, Inmarsat Global Limited, Globalstar, Inc., and ORBCOMM Inc.
−Removed: focus more on voice and data services, where mobility and small-sized terminals are essential.
−Removed: LEO systems, such as the one we operate, generally have lower transmission delays, or latency, than GEO systems, such as that operated by Inmarsat, due to the shorter distance signals have to travel, which also enables the use of smaller antennas on mobile devices.
+Added: By contrast, mobile satellite services providers, such as us, focus more on voice and data services, where mobility and small-sized terminals are essential.
+Added: Other mobile satellite service providers include Globalstar, Inc., ORBCOMM Inc., and in some portions of their businesses, Inmarsat Global Limited and new entrants such as SpaceX’s Starlink and Network Access Associates Limited’s OneWeb.
+Added: LEO systems, such as the one we operate, generally have lower transmission delays, or latency, than GEO systems, due to the shorter distance signals have to travel, which also enables the use of smaller antennas on mobile devices.
+Added: Our L-band spectrum is also more resistant to weather interference than the K-band spectrum used by new entrants such as Starlink and OneWeb.
We believe the unique interlinked mesh architecture of our constellation, combined with the global footprint of our satellites, distinguishes us from regional LEO satellite operators such as Globalstar and ORBCOMM, by allowing us to route voice and data transmissions to and from anywhere on the earth’s surface without the need for local ground infrastructure.
−Removed: As a result, we are the only mobile satellite services operator offering real-time, low-latency services with true global coverage, including full coverage of the polar regions.
+Added: As a result, we are the only mobile satellite services operator offering real-time, weather-resilient, low-latency services with true global coverage, including full coverage of the polar regions.
Our Competitive Strengths
• Our Constellation.
−Removed: Our upgraded satellite constellation enables our Iridium Certus offerings, empowers the development of a range of new global products and services, and supports Aireon’s aircraft tracking service, as well as other hosted payload missions.
+Added: Our unique satellite constellation provides true global and weather-resilient coverage, which enables our Iridium Certus platform offerings and empowers the development of a range of new global products and services, as well as supporting Aireon’s aircraft tracking service and other hosted payload missions.
+Added: Our network design of 66 operational satellites uses an interlinked mesh architecture to transmit signals from satellite to satellite, which reduces the need for multiple local ground stations around the world and facilitates the global reach of our services.
+Added: Many of our competitors use GEO satellites, which orbit above the earth’s equator, limiting their visibility to far northern or southern latitudes and polar regions.
+Added: LEO satellites from operators like Globalstar and ORBCOMM use
+Added: an architecture commonly referred to as “bent pipe,” which requires voice and data transmissions to be immediately routed to ground stations in the same region as the satellite and can only provide real-time service when they are within view of a ground station, limiting coverage to areas near where they have been able to license and locate ground infrastructure.
+Added: The LEO design of our satellite constellation produces minimal voice and data transmission delays compared to GEO systems due to the shorter distance our signals have to travel, and LEO systems typically have smaller antenna and power requirements.
+Added: Our L-band spectrum is also more resistant to weather interference than the K-band spectrum used by many of our competitors.
• Attractive and growing markets.
−Removed: We believe that the mobile satellite services industry will continue to experience growth driven by the increasing awareness of the need for reliable mobile voice and data communications services, the lack of coverage of most of the earth's surface by terrestrial wireless systems, and the continued development of innovative, lower-cost technology, applications integrating mobile satellite products and services, and the continued development of the IoT.
−Removed: Only satellite providers can offer global coverage, and the satellite industry is characterized by significant financial, technological and regulatory barriers to entry.
+Added: We believe that mobile satellite services will continue to experience growth driven by the increasing awareness of the need for reliable mobile voice and data communications services, the lack of coverage of most of the earth's surface by terrestrial wireless systems, and the continued development of innovative, lower-cost technology, applications integrating mobile satellite products and services, including embedding satellite capability into terrestrial smartphones, and the continued development of the IoT.
+Added: Only satellite providers can offer global coverage, and developing a satellite network requires significant financial investment, as well as technological and regulatory challenges.
+Added: We believe that we are well-positioned to capitalize on the growth in our industry from end users who require reliable, easy-to-use mobile communications services in all locations.
• Strategic relationship with the U.S.
government is our largest single customer, and we have provided airtime services to the U.S.
−Removed: government (particularly the Department of Defense) since our inception.
+Added: government (particularly the Department of Defense, or DoD) since our inception.
We believe the U.S.
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This gateway is only compatible with our satellite network.
−Removed: In September 2019, we entered into a seven-year, fixed-price contract with the U.S.
−Removed: government to provide specific narrowband satellite airtime services for an unlimited number of U.S.
−Removed: government and other federal government subscribers, with a total contract value of $738.5 million.
−Removed: We have seen significant annual increases in the number of federal government subscribers during the last several years, and we expect this trend to continue, increasing the value of our services to U.S.
−Removed: government customers.
+Added: In September 2019, we entered into the EMSS contract and continue to see significant usage of our network under this contract.
+Added: With ongoing investments by the DoD, we expect to see growth in adoption as enhancements are implemented and new services are launched.
• Wholesale distribution network.
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For example, we used our wholesale distribution approach to introduce Iridium Certus, with multiple VAMs developing Iridium Certus TM customer terminals for the maritime, aviation and terrestrial markets at their expense, and agreements with numerous service partners to sell, service and support Iridium Certus terminals and service to global customers across these markets.
−Removed: • True global coverage.
−Removed: Our network provides true global coverage, which none of our competitors, whether LEO or GEO, can offer.
−Removed: Our network design of 66 operational satellites relies on an interlinked mesh architecture to transmit signals from satellite to satellite, which reduces the need for multiple local ground stations around the world and facilitates the global reach of our services.
−Removed: GEO satellites orbit above the earth’s equator, limiting their visibility to far northern or southern latitudes and polar regions.
−Removed: LEO satellites from operators like Globalstar and ORBCOMM use an architecture commonly referred to as “bent pipe,” which requires voice and data transmissions to be immediately routed to ground stations in the same region as the satellite and can only provide real-time service when they are within view of a ground station, limiting coverage to areas near where they have been able to license and locate ground infrastructure.
−Removed: The LEO design of our satellite constellation produces minimal voice and data transmission delays compared to GEO systems due to the shorter distance our signals have to travel, and LEO systems typically have smaller antenna and power requirements.
−Removed: As a result, we believe that we are well-positioned to capitalize on the growth in our industry from end users who require reliable, easy-to-use mobile communications services in all locations.
Our Business and Growth Strategies
−Removed: • Leverage our largely fixed-cost infrastructure by growing our service revenue .
−Removed: Our business model is characterized by high capital costs, primarily incurred every 10 to 15 years, in connection with designing, building and launching new generations of our satellite constellation, like our recently completed Iridium NEXT program, and a low incremental cost of providing service to additional end users.
−Removed: We believe that service revenue will be our largest source of future growth and profits, and we intend to focus on growing both our commercial and government service revenue in order to leverage our largely fixed-cost infrastructure.
−Removed: In particular, we believe that competitive broadband, midband and narrowband data services through Iridium Certus and satellite IoT services, where we are engaging large, global enterprises as long-term customers for data and telematics solutions, represent our greatest opportunities for service revenue growth.
+Added: • Leverage our largely fixed-cost infrastructure to grow our service revenue .
+Added: Our business model is characterized by high capital costs, primarily incurred every 10 to 15 years, in connection with designing, building and launching new generations of our satellite constellation, and a low incremental cost of providing service to additional end users.
+Added: We believe that service revenue will continue to be our largest source of future growth and profits, and we intend to focus on growing both our commercial and government service revenue in order to leverage our largely fixed-cost infrastructure.
+Added: In particular, we believe that competitive broadband, midband and narrowband data services through
+Added: Iridium Certus and satellite IoT services, where we are engaging large, global enterprises as long-term customers for data and telematics solutions, represent our greatest opportunities for service revenue growth.
• Expand our target markets through the development of new products and services.
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Iridium Certus is a multi-service platform that can deliver a range of services, from voice to a high-throughput L-band data connection, at a range of competitive price points, data speeds, and terminal dimensions to meet an expanding set of customer requirements.
−Removed: Iridium Certus services will include background IP data, streaming IP data, high quality voice, messaging, and safety services, including Global Maritime Distress Safety System, or GMDSS, and Aeronautical Mobile Satellite (Route) Service, or AMS(R)S.
−Removed: During 2020 we also introduced Iridium Edge Pro ® , which allows partners to create and run their own custom-made IoT applications, and Iridium Edge Solar, a self-charging, low-maintenance, long-field-life IoT product with over-the-air configuration capabilities, and launched Iridium GMDSS service.
+Added: Iridium Certus services will include background IP data, high quality voice, messaging, and safety services, including Global Maritime Distress and Safety System, or GMDSS, and Aeronautical Mobile Satellite (Route) Service, or AMS(R)S.
+Added: During 2021 we also introduced a new broadband service, Iridium Certus 200, offering uncompressed transmission speeds up to 176 Kbps and up to three high-quality voice lines through a small, lightweight and cost-effective antenna, and a new midband service, Iridium Certus 100, enabling small, low-profile antennas and battery-powered devices designed for maximum mobility, but with IP data speeds that efficiently support sending important pictures, emails and other vital information from remote places.
• Accelerate the development of personal communications capabilities .
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• Continued growth in services provided to the U.S.
−Removed: In 2019 we entered into a multi-year, fixed-price contract with the U.S.
−Removed: Space Force for Enhanced Mobile Satellite Services, or the EMSS Contract.
−Removed: Under the terms of this agreement, we provide Iridium airtime services, including unlimited global standard and secure voice, paging, fax, Short Burst Data ® , Iridium Burst ® , RUDICS and DTCS services for an unlimited number of Department of Defense and other federal government subscribers.
−Removed: The fixed-price rate for the current year of the EMSS contract is $103 million, with increases thereafter.
+Added: Under our EMSS contract, we provide Iridium airtime services, including unlimited global standard and secure voice, paging, fax, Short Burst Data ® , Iridium Burst ® , RUDICS and DTCS services for an unlimited number of Department of Defense and other federal government subscribers.
+Added: The fixed-price rate for the current year of the EMSS contract is $106 million, with increases thereafter up to $110.5 million for the final contract year ending in September 2026.
Other services such as Iridium Certus and Satellite Time and Location provide us with opportunities to offer new products and services to the U.S.
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We expect that our current and future value-added partners will continue to develop customized products, services and applications targeted to the land mobile, IoT, maritime, aviation and government markets.
−Removed: We believe these markets and the new service providers, VAMs and VARs who join our network as a result of new product offerings represent an attractive opportunity for continued subscriber growth.
+Added: We believe these markets and the new service providers, VAMs and VARs who join our network as a result of new product offerings represent an attractive opportunity for continued subscriber and revenue growth.
• C ontinue to support Aireon in the execution of its business plan .
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NAV CANADA, Enav (Italy), NATS (United Kingdom), Naviair (Denmark) and the Irish Aviation Authority.
−Removed: Aireon developed an ADS-B receiver payload which is hosted on our satellites and gathers ADS-B position information from aircraft to provide a global air traffic surveillance service.
+Added: Aireon developed an ADS-B receiver payload that is hosted on our satellites and gathers ADS-B position information from aircraft to provide a global air traffic surveillance service.
Aireon has contracted to offer its service to ANSPs, the FAA, and other commercial customers worldwide.
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the Americas, which includes North, South and Central America;
−Removed: Asia Pacific, which includes
−Removed: Australia and Asia;
+Added: Asia Pacific, which includes Australia and Asia;
and Europe, the Middle East, Africa and Russia.
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Our service providers include satellite service providers such as Marlink AS, Applied Satellite Technology Limited and Network Innovations, as well as some of the largest telecommunications companies in the world, including Telstra Corporation Limited, KDDI Corporation and Singapore Telecommunications Limited.
−Removed: Our VARs include ARINC Incorporated, Blue Sky Network, LLC, Caterpillar Inc., Garmin Services Inc., General Dynamics Satellite Communication Services, Inc., Gogo Business Aviation LLC, Komatsu Ltd, Kore Telematics Inc., MetOcean Telematics Limited, Mix Telematics International (Pty) Ltd., NAL Research Corporation, OnixSat Rastreamento de Veículos Ltda.
−Removed: and Zunibal S.A.
+Added: Our VARs include ARINC Incorporated, Blue Sky Network, LLC, Garmin Services Inc., Gogo Business Aviation LLC, Komatsu Ltd, Kore Telematics Inc., MetOcean Telematics Limited, NAL Research Corporation and Zunibal S.A.
We also sell our products to VAMs, who integrate our transceivers or chipsets into their proprietary hardware.
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As with our service providers and VARs, VAMs sell their products either directly or through other distributors, including some of our service providers and VARs.
−Removed: Our VAMs include Applied Satellite Engineering, Inc., Beam Communications Pty Ltd., Calamp Wireless Networks Corporation, Cobham plc, Garmin Services Inc., Gilat Telecom Ltd., Honeywell Global Tracking Limited and Quake Global, Inc.
+Added: Our VAMs include Beam Communications Pty Ltd., Calamp Wireless Networks Corporation, Garmin Services Inc.
+Added: and Honeywell Global Tracking Limited.
In addition to VARs and VAMs, we maintain relationships with approximately 75 value-added developers, or VADs.
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We believe that working with VADs allows us to create new platforms for our products and services and increases our market opportunity while reducing our overall research and development, marketing and support expenses.
−Removed: Our VADs include Global Marine Networks, LLC, Maxtena, Inc., TE Connectivity Corporation and Two10degrees Limited.
−Removed: We maintain a pricing model for our commercial products and services with a wholesale rate structure.
+Added: Our VADs include Pivotel Satellite Pty Ltd., Rockwell Collins Inc.
+Added: and two10degrees Limited.
+Added: We use a wholesale rate structure for our commercial products and services.
Under our distribution agreements, we charge our distributors wholesale rates for commercial products and services, subject to discount and promotional arrangements and geographic pricing.
We also charge fixed monthly access fees per subscriber for some of our services.
−Removed: Our distributors are in turn responsible for setting their own pricing to their customers.
+Added: Our distributors are in turn responsible for setting their own pricing to end users.
Our agreements with distributors typically have terms of one year and are automatically renewable for additional one-year terms, subject to termination rights.
−Removed: We believe we benefit from the simplicity of this business model, which reduces back-office complexities and costs and allows distributors to remain focused on revenue generation, while also providing incentives for distributors to focus on selling our commercial product and service portfolio and developing additional applications.
+Added: We believe this business model reduces back-office complexities and costs and allows distributors to remain focused on revenue generation, while also
+Added: providing incentives for distributors to focus on selling our commercial product and service portfolio and developing additional applications.
Government Markets
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government under separate arrangements for an additional fee.
−Removed: In addition, we intend to invest approximately $10-$12 million over the first three years of the EMSS contract in support of the U.S.
−Removed: government to implement enhanced services at its dedicated gateway, which will be accounted for as additional cost of services.
−Removed: Pursuant to federal acquisition regulations, the U.S.
−Removed: government may terminate the EMSS contract, in whole or in part, at any time.
+Added: Through December 31, 2021, we have invested approximately $8.3 million to support the U.S.
+Added: government's implementation of our enhanced services at its dedicated gateway, which we account for as cost of services in our consolidated financial statements.
+Added: We expect to invest another approximately $3.7 million during the year ending December 31, 2022.
We also provide maintenance services for the U.S.
government gateway pursuant to our Gateway Maintenance and Support Services, or GMSS, contract managed by the U.S.
−Removed: This agreement, effective April 2019, provides for a six-month base term and four one-year options, the first two of which have been exercised, for a total value of the contract to us of approximately $54 million.
−Removed: Pursuant to federal acquisition regulations, the U.S.
−Removed: government may terminate the GMSS contract, in whole or in part, at any time.
+Added: This agreement, which became effective in April 2019, provides for a six-month base term and four one-year options, the first three of which have been exercised, for a total value of the contract to us of approximately $54 million.
In October 2019, we were also awarded a five-year indefinite-delivery/indefinite-quantity, or IDIQ, contract managed by the U.S.
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government gateway.
−Removed: This contract has a one-year base period and four one-year options, the first of which has been exercised, with a value of up to $76 million to us over the five-year period.
−Removed: Pursuant to federal acquisition regulations, the U.S.
−Removed: government may terminate the IDIQ contract, in whole or in part, at any time.
+Added: This contract has a one-year base period and four one-year options, the first two of which have been exercised, with a value of up to $76 million to us over the five-year period.
government services accounted for approximately 21% of our total revenue for the year ended December 31, 2021.
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government revenue includes airtime revenue derived from the EMSS contract and services provided through the GMSS contract, the IDIQ contract, and other engineering and support contracts with the U.S.
−Removed: This revenue does not include airtime services purchased by U.S.
+Added: Pursuant to federal acquisition regulations, the U.S.
+Added: government may terminate the EMSS, GMSS or IDIQ contracts, in whole or in part, at any time.
+Added: Our government revenue does not include airtime services purchased by U.S.
government agencies that are provided through our commercial gateway, which we report as commercial service revenue, or equipment purchased by government customers from third-party distributors.
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We report commercial voice and data service, IoT data service, commercial broadband, hosted payload and other data service, and government service revenue separately.
−Removed: Land mobile and aviation are the principal contributors to the revenue we report as commercial voice and data, while maritime is primarily reported in commercial
−Removed: broadband revenue.
+Added: Land mobile and aviation are the principal contributors to the revenue we report as commercial voice and data, while maritime is primarily reported in commercial broadband revenue.
Since we introduced Iridium Certus broadband in January 2019, Iridium Certus services have accounted for an increasing portion of our revenue, and we expect that trend to continue.
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We offer commercial voice and data and commercial broadband services primarily in the land mobile, maritime, and aviation sectors.
−Removed: Beginning in 2020, we separately reported commercial Iridium Certus broadband revenue with Iridium OpenPort ® service revenue as commercial broadband revenue, and prior year periods have been conformed to this presentation in our financial information included in this report.
+Added: Beginning in 2020, we separately report commercial Iridium Certus broadband revenue with Iridium OpenPort ® service revenue as commercial broadband revenue, and prior year periods have been conformed to this presentation in our financial information included in this report.
Previously, Iridium Certus broadband revenue and Iridium OpenPort service revenue were included in commercial voice and data revenue.
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In a 2021 report, TMF Associates reported that there were approximately 756,000 land voice satellite units in service in 2020.
−Removed: Mining, forestry, construction, oil and gas, utilities, heavy industry and transport companies as well as the military, public safety and disaster relief agencies constitute the largest portion of our land mobile end users.
+Added: Mining, forestry, construction, oil and gas, utilities, heavy industry and transport companies as well as the military, public safety and disaster relief agencies are significant users of our land mobile services.
Sales of Iridium GO!
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• Voice and data :
−Removed: Multinational corporations in various sectors use our services for business telephony, e-mail and data transfer services, location-based services, broadband and to provide telephony services for employees in areas inadequately served by terrestrial networks.
+Added: Multinational corporations in various sectors use our services for business telephony, email and data transfer services, location-based services, broadband and to provide telephony services for employees in areas inadequately served by terrestrial networks.
Oil and gas and mining companies, for example, provide their personnel with our equipment solutions while surveying new drilling and mining opportunities and while conducting routine operations in remote areas that are not served by terrestrial wireless communications networks.
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The Thales MissionLINK terminal, the first Iridium Certus offering in the land mobile area, allows rapid deployment and on-the-move communications, location tracking and telemetry.
−Removed: We expect to introduce additional offerings, including Iridium Certus midband services in 2021.
+Added: During 2021, we also introduced Iridium Certus midband service for our commercial and government land mobile customers.
• Mobile and remote office connectivity :
−Removed: A variety of enterprises use our services to make and receive voice calls and to establish data, e-mail, internet and corporate network connections.
+Added: A variety of enterprises use our services to make and receive voice calls and to establish data, email, internet and corporate network connections.
• Public safety and disaster relief :
−Removed: Relief agencies, such as FEMA, and other agencies, such as the Department of Homeland Security, use our products and services in their emergency response plans, particularly in the aftermath of natural disasters such as Hurricanes Dorian, Harvey, Irma and Maria, and the 2017 Mexico City area earthquake.
+Added: Relief agencies, such as FEMA, and other agencies, such as the Department of Homeland Security, use our products and services in their emergency response plans, particularly in the aftermath of natural disasters such as Hurricanes Dorian, Harvey, Irma and Maria, and earthquakes in Haiti in 2021 and the Mexico City area in 2017.
These agencies generate significant demand for both our voice and data products, especially in advance of the hurricane season in North America.
+Added: Further, many enterprises and governments include mobile satellite
+Added: services such as ours as part of their PACE plan (Primary/Alternate/Contingency/Emergency), to maintain communications continuity in case of terrestrial communication network outages.
• Public telephone infrastructure :
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We serve the commercial maritime market with a variety of products, including broadband terminals, embedded devices and handsets.
−Removed: This market includes merchant shipping, fishing, leisure research vessels and specialized watercraft.
−Removed: Traditionally, the majority of our revenue from the maritime market has been derived from shipboard data terminals including the Iridium Pilot ® , which uses the Iridium OpenPort high-speed voice and data service.
−Removed: Since we introduced Iridium Certus broadband in January 2019, Iridium Certus services have accounted for an increasing portion of our revenue from this market, and we expect that trend to continue.
+Added: This market includes merchant shipping, fishing, leisure and research vessels, and specialized watercraft.
+Added: Since we introduced Iridium Certus broadband in January 2019, Iridium Certus services have accounted for an increasing portion of our revenue from this market, and we expect that trend to continue, although we still support our legacy broadband offering, Iridium OpenPort service.
Our products and services targeting the maritime market typically have high average revenue per subscriber.
Once one of our maritime systems is installed on a vessel, it often generates a multi-year recurring revenue stream from the customer.
−Removed: As a consequence, from time to time we may offer promotions or rebates to accelerate new customer acquisitions and solidify this expected long-term revenue stream.
+Added: To take advantage of this, from time to time we may offer promotions or rebates to accelerate new customer acquisitions and solidify this expected long-term revenue stream.
We believe demand for higher-speed, low-cost data services will allow us to capitalize on opportunities in this market.
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• Business critical data applications :
−Removed: Ship operators use our services to exchange e-mail and data files and to receive other information such as meteorological reports, emergency bulletins, cargo and voyage data and electronic chart updates.
−Removed: We believe Iridium Certus and Iridium OpenPort provide attractively priced options for shipping operators and fishing fleets seeking increased functionality, as well as for yachts, work boats and other vessels for which traditional marine satellite systems have typically been costly and underperforming.
+Added: Ship operators use our services to exchange email and data files and to receive other information such as meteorological reports, emergency bulletins, cargo and voyage data and electronic chart updates.
+Added: We believe the breadth of our Iridium Certus offerings provides attractively priced options for shipping operators and fishing fleets seeking increased functionality, as well as for yachts, work boats and other vessels for which traditional marine satellite systems have typically been costly and underperforming.
+Added: In conjunction with our distributors, we also offer additional services that permit service providers and VARs to offer complete integrated solutions for prepaid calling, email and IP-based data communications.
+Added: For example, one of our distribution partners, KVH Industries, Inc., has been integrating Iridium Certus with its miniature Very Small Aperture Terminal, or mini-VSAT SM , broadband service to provide companion connectivity when the mini-VSAT terminal is out of its coverage area or non-operational.
• Voice services :
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• Vessel management and asset tracking :
−Removed: Shipping operators, such as Briese Schiffahrts GmbH, use our services to manage operations on ships and to transmit data, such as course, speed and fuel stock.
+Added: Shipping operators use our services to manage operations on ships and to transmit data, such as course, speed and fuel stock.
Our services are commonly integrated with GPS to provide a real-time position reporting capability.
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European Union regulations, for example, require EU-registered fishing vessels of over 15 meters to carry terminals for the purpose of positional reporting of those vessels.
−Removed: Furthermore, new security regulations in some jurisdictions are expected to require tracking of merchant vessels in territorial waters, which would provide an additional growth opportunity for us.
+Added: Furthermore, new environmental regulations in some jurisdictions are expected to require monitoring of merchant vessels in territorial waters, which would provide an additional growth opportunity for us.
• Safety and Security applications :
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Most deep-sea passenger and cargo ships must be fitted with a device that can send an alert message containing the ship’s ID and position whenever the ship is under threat or has been compromised.
−Removed: In addition, the IMO and a NATO advisory group have recommended the installation of a safe room equipped with a standalone secure communication link the crew can use from inside the room to communicate with rescuing forces.
+Added: In addition, the IMO and a NATO advisory group have recommended the installation of a safe room or citadel equipped with a standalone secure communication link the crew can use from
+Added: inside the room to communicate with rescuing forces.
Our distribution partners have developed several product solutions using our network to meet these requirements for merchant and fishing vessels.
+Added: In addition, we have been recognized by the IMO as a provider for the GMDSS.
The GMDSS is a maritime service built to alert a maritime rescue coordination center of each vessel’s situation and position, information that can then be used to coordinate search and rescue efforts among ships in the area.
−Removed: GMDSS service is also used to distribute important navigational and meteorological information to vessels.
+Added: As part of the GMDSS service, navigational and meteorological information is distributed to vessels.
The IMO requires all vessels flagged by signatories to the International Convention for the Safety of Life at Sea, or SOLAS, over 300 gross tons and certain passenger vessels, irrespective of size, that travel in international waters to carry distress and safety terminals that provide GMDSS services.
−Removed: We have been recognized by the IMO as a provider for the GMDSS.
GMDSS service using our network became available in 2020, and our partners offer maritime terminals that include GMDSS service capabilities to vessel operators.
We are one of the leading providers of mobile satellite communications services to the aviation sector.
−Removed: Our services are increasingly used in commercial and global government aviation applications, principally by corporate jets, corporate and government helicopter fleets, specialized general aviation fleets, such as medevac companies and fire suppression fleets, and high-end personal aircraft.
+Added: Our services are increasingly used in commercial and government aviation applications, principally by corporate jets, corporate and government helicopter fleets, specialized general aviation fleets, such as medevac companies and fire suppression fleets, and high-end personal aircraft.
Our services are also employed by commercial airline operators for flight deck voice and data link services for aircraft operational and safety communications.
As a result of authorizations by the FAA and U.S.
−Removed: Communications Commission, or FCC, for us to provide air traffic datalink communications, commercial operators are installing avionics that use the Iridium network on the flight deck to comply with international air navigation communications requirements to operate in oceanic and remote airspace, including polar regions.
+Added: Federal Communications Commission, or FCC, for us to provide air traffic datalink communications, commercial operators are installing avionics that use the Iridium network on the flight deck to comply with international air navigation communications requirements to operate in oceanic and remote airspace, including polar regions.
Voice and data avionics platforms from our VAMs have been adopted as standard equipment and as factory options for a range of airframes in business aviation and air transport, such as Gulfstream Aerospace Corporation, Bombardier Inc., Cessna Aircraft Company, Boeing and Airbus.
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The global aviation community in particular has been negatively affected by the COVID-19 pandemic and measures taken to combat it.
−Removed: Global flight movements partially recovered during the last three quarters of 2020, gaining back approximately 50% of lost traffic levels from the low point in mid-April by year end.
−Removed: We expect to see continued recovery in the aviation sector in 2021, as COVID vaccine availability increases;
−Removed: however, it is likely that air traffic will not fully recover for a number of years.
−Removed: Charter or private jet usage has increased in this same period, and many commercial aircraft have been converted to cargo aircraft given the demand.
−Removed: In addition, rotorcraft and unmanned aerial vehicle usage has remained relatively flat in this period.
−Removed: We continue to see aviation as an area of growth for us as it recovers from these effects.
+Added: We saw significant recovery in this sector in 2021 and expect to see continued recovery in 2022;
+Added: however, it is likely that air traffic, particularly commercial transport air traffic, will not fully recover to its pre-pandemic levels for a number of years.
+Added: Charter or private jet usage has increased in this same period, and many commercial aircraft have been converted to cargo aircraft, while rotorcraft and unmanned aerial vehicle usage has remained relatively flat.
+Added: We continue to see aviation as an area of growth for us.
Aviation end users utilize our satellite communications services for:
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We believe our distributors’ small, lightweight, cost-effective solutions offer an attractive option for aircraft operators, particularly small fleet operators;
−Removed: for example, some operators use our services to enable small-cabin passengers to e-mail using their own Wi-Fi-enabled mobile devices, including smartphones, without causing interference with aircraft operation.
+Added: for example, some operators use our services to enable small-cabin passengers to email using their own Wi-Fi-enabled mobile devices, including smartphones, without causing interference with aircraft operation.
We expect that users in the corporate aviation market, and original equipment manufacturers, or OEMs, for business jets, will increase adoption of our services for in-flight passenger data communications using our network.
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We operate as the communication link for remote-piloted aircraft for uses such as package delivery, medical supply, law enforcement, corporate surveying and even military applications.
−Removed: We believe the benefits of Iridium Certus will enhance our ability to address aviation market needs across these sectors.
+Added: We believe the benefits of Iridium Certus enhance our ability to address aviation market needs across these sectors.
Commercial IoT Data
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• Personal tracking devices and location-based services :
−Removed: Several of our VAMs and VARs, such as Garmin, NAL Research and Somewear Labs, market small, portable devices that provide personal tracking and data communications services to consumers and commercial end users.
+Added: Several of our VAMs and VARs, such as Garmin, NAL Research and Zoleo, market small, portable devices that provide personal tracking and data communications services to consumers and commercial end users.
In addition, Iridium GO!
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These devices use IoT data services to send location information and other data to web-based portals for tracking.
−Removed: • Heavy equipment monitoring:
+Added: • Heavy equipment telematics:
Large, global heavy equipment original equipment manufacturers, such as Caterpillar Inc., Komatsu Limited, Hitachi Construction Machinery Co.
−Removed: Ltd., CNH Global N.V.
−Removed: and AGCO Corporation, use our global IoT services to monitor their off-road heavy equipment in markets such as construction, mining, agriculture and forestry.
+Added: Ltd., Hyundai Doosan Infracore and AGCO Corporation, use our global IoT services to monitor their off-road heavy equipment in markets such as construction, mining, agriculture and forestry.
• Fleet management :
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Global security concerns are among the factors driving demand for our products and services in this sector.
−Removed: Government Services” for more information.
+Added: Government Services” below for more information.
Our business is subject to seasonal usage changes for commercial customers, and we expect it to be affected by similar seasonality going forward.
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These services are then generally sold to subscribers in the form of prepaid e-vouchers and scratch cards that enable subscribers to use our services on a per-minute basis.
−Removed: We believe service providers and VARs are drawn to these services
−Removed: because they enable greater cost control by eliminating the need for monthly billings and reducing collection costs, and can be sold in countries where credit may not be readily available for end users.
+Added: We believe service providers and VARs are drawn to these services because they enable greater cost control by eliminating the need for monthly billings and reducing collection costs, and can be sold in countries where credit may not be readily available for end users.
Our distributors often offer our prepaid voice services through fixed devices to subscribers in rural villages, at remote industrial, commercial and residential sites, and on ships at sea, among other places.
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For example, Icom Inc.
−Removed: of Japan has developed the first purpose-built satellite PTT radio handheld unit for use on the Iridium network.
+Added: of Japan offers a purpose-built satellite PTT radio handheld unit for use on the Iridium network.
We and our partners are also developing interoperability solutions for existing terrestrial land mobile radio systems, which will further extend the utility of the service.
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Our new broadband data offering, Iridium Certus, was launched in January 2019.
−Removed: Iridium Certus is a new suite of products and services enabled by our upgraded satellite constellation.
−Removed: Iridium Certus is a multi-service platform capable of offering higher quality voice, enterprise-grade broadband functionality, SBD, streaming, PTT and safety services on a global basis, with speeds currently available up to 704 Kbps.
−Removed: Ultimately, Iridium Certus is designed to support a variety of cost points, antenna types and data speeds ranging from midband to broadband speeds as high as 1.4 Mbps.
+Added: Iridium Certus is a suite of products and services enabled by our upgraded satellite constellation.
+Added: Iridium Certus is a multi-service platform capable of offering higher quality voice, enterprise-grade broadband functionality, SBD, streaming, PTT and safety services on a global basis.
+Added: Iridium Certus is designed to support a variety of cost points, antenna types and data speeds ranging from midband to broadband speeds, currently available up to 704 Kbps.
We have licensed the Iridium Certus technology to VAMs who have introduced products for the maritime and land mobile markets and are developing additional products for those markets and the aviation and government markets, as well as distribution partners for the Iridium Certus service in each of these vertical markets.
We believe Iridium Certus provides a competitive, cost-effective and reliable range of services to the market, in standalone applications or as a complement to other wireless technologies for critical applications and safety services.
−Removed: We also offer Iridium OpenPort, which provides maritime, aviation and terrestrial users speeds of up to 134 Kbps and three independent voice lines.
+Added: We also continue to offer Iridium OpenPort services, which provides maritime, aviation and terrestrial users speeds of up to 134 Kbps and three independent voice lines.
For our Iridium OpenPort service, we typically charge service providers usage fees for airtime consumed by the respective subscribers for voice and data communications.
−Removed: In conjunction with our distributors, we also offer additional services that permit service providers and VARs to offer complete integrated solutions for prepaid calling, e-mail and IP-based data communications.
−Removed: For example, one of our distribution partners, KVH Industries, Inc., has been integrating Iridium Pilot with its miniature Very Small Aperture Terminal, or mini-VSAT SM , broadband service to provide backup connectivity when the mini-VSAT terminal is out of its coverage area or non-operational.
−Removed: In the future, we expect our distributors to focus on selling Iridium Certus and eventually transition many ships that use Iridium OpenPort services to Iridium Certus services.
+Added: We have discontinued the manufacture of the Iridium Pilot ® platform that supports Iridium OpenPort services, and we expect our distributors to focus on selling Iridium Certus and eventually transition many ships that use Iridium OpenPort services to Iridium Certus services.
Internet of Things Services
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government’s gateway under the EMSS contract, which is a fixed-price contract covering voice, low-speed data, paging, broadcast and DTCS services.
−Removed: Additional services, such as broadband capabilities utilizing Iridium Certus technology, would be provided at an additional fee.
+Added: Additional services, such as broadband capabilities utilizing Iridium Certus technology, may be provided at an additional fee.
To comply with U.S.
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Our VARs and VAMs typically integrate our products with other products, which they then offer to U.S.
−Removed: government customers as customized products, typically provisioned by Defense Information Systems Agency, or DISA.
+Added: government customers as customized products, typically provisioned by the U.S.
Our voice and data solutions for the U.S.
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armed forces.
−Removed: For example, in conjunction with DISA, we and select distribution partners offer DTCS, which provides critical, secure, PTT, netted communications using lightweight, handheld tactical radios, or add-ons to existing government tactical radios.
+Added: For example, in conjunction with the U.S.
+Added: Space Force, we and select distribution partners offer DTCS, which provides critical, secure, PTT, netted communications using lightweight, handheld tactical radios, or add-ons to existing government tactical radios.
In addition, we offer a secure satellite phone based on the Iridium Extreme, which we also developed with funding support from the U.S.
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Satellite Handsets and Iridium GO!
−Removed: Our principal handset offerings are the Iridium 9555 and Iridium Extreme satellite handsets, which are similar in functionality to ordinary cellular phones but with the solid, durable feel that satellite phone users demand.
−Removed: We believe our reputation for industrial-strength products is critical for customers, many of whom are located in the most inhospitable spots on the planet and require rugged and reliable communications equipment.
+Added: Our principal handset offerings are the Iridium 9555 and Iridium Extreme satellite handsets.
+Added: We believe the industrial-strength design of these products is critical for customers, many of whom are located in the most inhospitable spots on the planet and require rugged and reliable communications equipment.
Iridium 9555 .
−Removed: The Iridium 9555 provides voice, SMS and data connectivity.
−Removed: This model features a large, bright screen, SMS and e-mail capabilities, an integrated antenna and a speakerphone.
+Added: The Iridium 9555 provides voice, SMS and narrowband data connectivity.
+Added: This model features a grayscale screen, SMS capability, an integrated antenna and a speakerphone.
The Iridium 9555 weighs 9.4 ounces and offers up to 3.1 hours of talk time.
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The Iridium Extreme PTT enhances the Iridium Extreme with an intelligently designed push-to-talk mode, expanded speakerphone, reinforced PTT button, and extended capacity battery.
−Removed: The user interface provides access to multiple communication services, including voice calling, SMS and SOS, allowing users to connect to a talkgroup located in up
−Removed: to 10 customer-defined geographic regions worldwide.
+Added: The user interface provides access to multiple communication services, including voice calling, SMS and SOS, allowing users to connect to a talkgroup located in up to 10 customer-defined geographic regions worldwide.
The Iridium Extreme PTT weighs 9.5 ounces and offers up to 6.5 hours of talk time in phone mode and five hours of talk time in PTT mode.
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Iridium Certus terminals are specifically designed for the maritime, aviation, land mobile or government markets and ultimately will offer a variety of significantly enhanced data speeds and antenna types.
−Removed: Iridium Certus terminals provide enterprise-grade broadband functionality alongside high quality voice capabilities that can be used on a global basis, with speeds currently available up to 704 Kbps.
−Removed: Ultimately, Iridium Certus is designed to support a variety of cost points, antenna types and data speeds ranging from midband to broadband speeds as high as 1.4 Mbps.
+Added: Iridium Certus terminals provide enterprise-grade broadband functionality alongside high-quality voice capabilities that can be used on a global basis.
+Added: Iridium Certus is designed to support a variety of cost points, antenna types and data speeds ranging from midband to broadband speeds currently available up to 704 Kbps.
We have licensed the Iridium Certus technology to a group of VAMs who have introduced products for the maritime and land mobile markets and are developing additional products for those markets as well as the aviation and government markets.
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The initial terminals in this market were the Cobham Sailor 4300 and Thales VesseLINK.
−Removed: In addition, Intellian, a Korean maritime terminal manufacturer, introduced an Iridium Certus terminal to the market in 2020.
+Added: In addition, Intellian, a Korean maritime terminal manufacturer, introduced an Iridium Certus terminal to the market in 2020, and Thales introduced its VesseLINK 200 terminal, which uses our Iridium Certus 200 service, in 2021.
In aviation, Iridium Certus will deliver critical safety services and in-flight communications.
−Removed: Our principal targeted end users for Iridium Certus in the aviation market will include commercial, corporate and government users, general aviation, rotorcraft and unmanned aircraft.
−Removed: The initial terminal in this market will be the FlytLINK by Thales.
+Added: Our principal targeted end users for Iridium Certus in the aviation market include commercial, corporate and government users, general aviation, rotorcraft and
+Added: unmanned aircraft.
+Added: The initial terminals in this sector are the SkyTrac DLS-100 and the BlueSky SkyLink 7100.
A number of other VAMs have been licensed to create aviation terminals using Iridium Certus services as well.
−Removed: In the land mobile market, we expect enterprises, governments, and individuals that want to extend their use of mobile networks into remote areas without having to deploy ground-based infrastructure or expensive terminals will utilize Iridium Certus.
+Added: In the land mobile market, enterprises, governments, and individuals that want to maintain mobile IP and telephony connectivity for their operations while in remote areas without having to deploy ground-based infrastructure or expensive terminals utilize Iridium Certus.
Iridium Certus devices may be integrated with internet, cellular, land mobile radio, and location-based applications to keep users connected, offering global push-to-talk, situational awareness, email, messaging and voice-over-IP.
−Removed: We believe our principal end users for Iridium Certus in the land mobile market will be military users, rail, first responders, non-governmental organizations, oil and gas users, and remote fleets.
+Added: Our principal end users for Iridium Certus in the land mobile market are military users, rail, first responders, non-governmental organizations, oil and gas users, and remote fleets.
+Added: Iridium now offers Iridium Certus 100, Iridium Certus 200 and Iridium Certus 700 services, supporting a portfolio of broadband and midband terminals through our partners to provide a range of capabilities at various price points.
+Added: Terminals that are approved for land mobile market include the Thales MissionLINK 700 and 200, BSN SkyLink 5100, NAL Research Quicksilver, and McQ CONNECT, with additional Iridium Certus 100 terminals currently in development and expected to be commercially available in 2022.
+Added: In the government market, Iridium Certus terminals provide beyond-line-of-sight communications critical to mission
The initial terminal in this market is the Thales MissionLINK, with additional terminals expected in the near future.
−Removed: In the government market, Iridium Certus terminals will provide beyond-line-of-sight communications critical to mission
−Removed: The initial terminal in this market is the Thales MissionLINK.
Our legacy terminal, the Iridium Pilot, provides up to three independent voice lines and an internet connection for data communications of up to 134 Kbps, using our Iridium OpenPort service.
−Removed: All voice and data capabilities can be used simultaneously.
−Removed: Our principal customers for Iridium Pilot are service providers who integrate the device with their own hardware and software products to provide a suite of customer-focused voice and IP-based data packages for ship operation, crew calling and e-mail.
−Removed: We believe our Iridium Pilot terminal, with its flexible service options, provides an excellent low-cost option to the maritime market, including market sectors such as luxury yachts, tug boats, and other fishing and cruising vessels.
−Removed: Iridium Pilot also offers a low-cost solution as a companion to maritime Ku- and Ka- Band VSAT systems providing broadband and data services for ships, where Iridium Pilot can fill in coverage gaps and operate during significant rain fade events that impair K-band service, provide services where the VSAT terminal is not licensed to operate, and provide an alternate channel during VSAT maintenance and configuration.
−Removed: We also offer Iridium Pilot Land Station, which allows remote individuals and
−Removed: businesses from off-the-grid terrestrial locations to obtain reliable internet connections and voice calling no matter where they are located.
+Added: We have discontinued the manufacture of the Iridium Pilot terminal but still support the Iridium OpenPort service.
+Added: With the introduction of the more powerful Iridium Certus terminals, we expect our distributors to focus on selling Iridium Certus and eventually upgrade many ships that have Iridium Pilot installed to Iridium Certus technology.
Voice and Data Modems
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Iridium Edge reduces the cost and complications associated with hardware development, manufacture and certification of satellite-specific terminals, which we expect to enable greater adoption of our IoT services.
−Removed: In 2020, we introduced Iridium Edge Pro, a standalone IoT device that offers real-time GPS tracking capabilities, with a flexible programming platform that allows partners to create and run their own custom-made applications, and Iridium Edge Solar, a standalone, programmable, solar-powered device that offers real-time GPS tracking in a self-charging, low-maintenance unit with over-the-air configuration that allows partners to create distinct tracking applications.
−Removed: In the future, we expect our IoT partners to develop new products with increased capabilities based on Iridium Certus midband devices.
+Added: We also offer Iridium Edge Pro, a standalone IoT device that offers real-time GPS tracking capabilities, with a flexible programming platform that allows partners to create and run their own custom-made applications, and Iridium Edge Solar, a standalone, programmable, solar-powered
+Added: device that offers real-time GPS tracking in a self-charging, low-maintenance unit with over-the-air configuration that allows partners to create distinct tracking applications.
+Added: In addition, during 2021 several partners launched Iridium Certus midband solutions for IoT, including the SkyLink product from Blue Sky Networks and the RockREMOTE from Ground Control.
Device Development and Manufacturing
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Our agreement with Benchmark is automatically renewable for additional one-year terms unless terminated by either party.
−Removed: We selected several VAMs to manufacture terminals for use with our Iridium Certus broadband service.
−Removed: Iridium Certus terminals are specifically designed for the maritime, aviation or land mobile markets, and certain of these VAMs were given limited exclusivity in those markets, in exchange for sales commitments.
−Removed: We generally provide our distributors with a warranty on subscriber equipment for one to two years from the date of activation, depending on the product.
+Added: We generally provide our distributors with a warranty on subscriber equipment for one year to 18 months from the date of activation, depending on the product.
We also utilize other suppliers, some of which are the sole source, to manufacture some of the component parts of our devices.
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United States 54 % 55 % 54 %
−Removed: United Kingdom 8 % 9 % 10 %
Other Countries (1)
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A significant portion of our voice and data traffic originates outside the United States.
−Removed: The table below sets forth the percentage of our commercial voice and data traffic originating outside the United States, excluding Iridium OpenPort and Iridium Certus broadband traffic, for the last three years.
+Added: The table below sets forth the percentage of our commercial voice and data traffic originating outside the United States for the last three years.
Year Ended December 31,
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Our satellite network has an architecture of 66 operational LEO satellites in six orbital planes of eleven vehicles each in nearly circular polar orbits, in addition to in-orbit spares and related ground infrastructure, as well as ground spares.
−Removed: In 2019, we completed the process of replacing our first-generation constellation, which we refer to as the Iridium NEXT program.
−Removed: We deployed a total of 75 satellites on eight Falcon 9 rockets launched by Space Exploration Technologies Corp., or SpaceX, as part of this program and de-orbited our first generation satellites.
−Removed: These replacement satellites support new services and higher data speeds for new products.
Our operational satellites orbit at an altitude of approximately 483 miles (778 kilometers) above the earth and travel at approximately 16,689 miles per hour, resulting in a complete orbit of the earth approximately every 100 minutes.
−Removed: The design of our constellation ensures that generally at least one satellite is visible to subscribers from any point on the earth's surface, covering all of the world's population.
+Added: The design of our constellation
+Added: ensures that generally at least one satellite is visible to subscribers from any point on the earth's surface.
While our constellation offers true global coverage, most of our devices and antennas must have a direct line of sight to a satellite to transmit or receive a signal, and services on those devices are not available in locations where a satellite signal cannot be transmitted or received, which for some devices includes inside a building.
−Removed: Our constellation is unique among commercial constellations in the usage of radio frequency crosslinks between our satellites, which eliminates the need for local ground infrastructure.
+Added: Our constellation uses radio frequency crosslinks between our satellites, which eliminates the need for local ground infrastructure.
These crosslinks enable each satellite to communicate with up to four other satellites in space, two in the same orbital plane and two in adjacent planes.
Our traffic is routed on a preplanned route between satellites to a predetermined satellite that is in contact with one of the Iridium teleport network, or TPN, locations.
−Removed: The TPN sites then transmit and receive the traffic to and from the gateways, which in turn provide the interface to terrestrial-based
−Removed: networks such as the PSTN, a public land mobile network, or PLMN, and the internet.
+Added: The TPN sites then transmit and receive the traffic to and from the gateways, which in turn provide the interface to terrestrial-based networks such as the PSTN, a public land mobile network, or PLMN, and the internet.
The use of a TPN allows grounding traffic at multiple locations within our ground network infrastructure.
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The design of our space and ground control system also facilitates the real-time monitoring and management of the satellite constellation and facilitates service upgrades via software enhancements.
−Removed: We also upgraded our ground infrastructure, including gateway and teleport technology and satellite control systems, in advance of the completion of the Iridium NEXT program.
We believe our interlinked satellite infrastructure provides several advantages over low-earth-orbiting “bent-pipe” satellite networks that rely on multiple terrestrial gateways, such as Globalstar’s and ORBCOMM’s networks.
−Removed: We have the only satellite network with true global coverage, and our constellation is less vulnerable to single points of failure, as traffic can be routed around any one satellite problem to complete the communications path to the ground.
+Added: We have the only satellite network with true global coverage using weather-resilient L-band spectrum, and our constellation is less vulnerable to single points of failure, as traffic can be routed around any one satellite problem to complete the communications path to the ground.
In addition, the small number of ground stations increases the security of our constellation, a factor that makes our network particularly attractive to government institutions and large enterprises.
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We operate our satellite constellation from our satellite network operations center, or SNOC, in Leesburg, Virginia.
−Removed: This facility manages the performance and status of each of our satellites, developing and distributing routing tables for use by the satellites, TPN facilities and gateways, directing traffic routing through the network and controlling the formation of coverage areas by the satellites’ main mission antennas.
+Added: This facility manages the performance and status of each of our satellites, directing traffic routing through the network and controlling the formation of coverage areas by the satellites’ main mission antennas.
We also operate TPN facilities in Fairbanks, Alaska and Tempe, Arizona in the United States, in Svalbard, Norway, and in Punta Arenas, Chile, that perform telemetry, tracking and control functions and route commercial services.
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We believe this provides us with significant flexibility and contributes to the longevity of the constellation by enabling engineers to develop additional functionality and software-based solutions to occasional faults and anomalies in the system.
−Removed: We selectively replace parts for our gateway and TPN facilities as necessary and maintain an inventory of spare parts, which we continuously monitor.
−Removed: When we do not have necessary spares in inventory or our spares become obsolete, we rely on third parties to develop necessary parts.
+Added: We continuously monitor and upgrade our gateway and TPN facilities as necessary and also maintain an inventory of spare parts.
+Added: When we do not have necessary spares in inventory or our spares become obsolete, we may rely on third parties to develop necessary parts.
We hold a space station license for the launch and operation of our constellation, which expires February 23, 2032.
gateway earth station and the U.S.
−Removed: government customer and commercial subscriber earth station licenses expire between October 2021 and 2026.
+Added: government customer and commercial subscriber earth station licenses expire between March 2022 and November 2036.
We must file renewal applications for earth station licenses between 30 and 90 days prior to expiration.
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Aireon has contracted to offer this service to our co-investors in Aireon, as well as other ANSPs, including the FAA.
−Removed: These ANSPs will use the service to provide
−Removed: improved air traffic control services over the oceans, as well as polar and remote regions.
+Added: These ANSPs will use the service to provide improved air traffic control services over the oceans, as well as polar and remote regions.
Aireon also plans to market the data to airlines and other users.
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We have certain de-orbit obligations under our FCC licenses.
−Removed: Specifically, pursuant to an orbital debris mitigation plan incorporated into our FCC satellite constellation license in 2002, we were required to lower each of our first-generation satellites to an orbit with a perigee of approximately 250 kilometers as it reached the end of its useful life and to coordinate these orbit-lowering maneuvers with the U.S.
+Added: Specifically, pursuant to an orbital debris mitigation plan incorporated into our FCC satellite constellation license in 2002, we were required to lower each of our first-generation satellites to an orbit with a perigee of approximately 250 kilometers as it reached the end of its useful life and to coordinate
+Added: these orbit-lowering maneuvers with the U.S.
Combined Space Operations Center.
In August 2014, we received a license modification from the FCC permitting us to operate up to ten of our first-generation satellites pursuant to the less stringent 25 year de-orbit standards for non-geostationary satellites that the FCC acknowledged in 2004 would serve the public interest and has been utilized for other satellite constellations since that time.
−Removed: All of our new satellites are subject to the less stringent 25 year de-orbit standard.
−Removed: Our FCC license required us to de-orbit a first-generation satellite following its replacement with a new satellite and to notify the FCC within 30 days following removal of a first-generation satellite from its operational orbit for purposes of de-orbit.
+Added: All of our second-generation satellites are subject to the less stringent 25 year de-orbit standard.
+Added: Our FCC license required us to de-orbit a first-generation satellite following its replacement with a second-generation satellite and to notify the FCC within 30 days following removal of a first-generation satellite from its operational orbit for purposes of de-orbit.
We began de-orbiting individual satellites as they were replaced with new satellites.
−Removed: We completed the required de-orbit initiation
−Removed: process for our first-generation satellites during 2019.
−Removed: We plan to de-orbit our new satellites pursuant to and within the 25 year de-orbit standard consistent with the FCC authorization of our new constellation.
+Added: We completed the required de-orbit initiation process for our first-generation satellites during 2019.
+Added: We plan to de-orbit our second-generation satellites pursuant to and within the 25 year de-orbit standard consistent with the FCC authorization of our current constellation.
Aireon LLC and Aireon Holdings LLC Agreement
−Removed: In November 2012, we, through our Iridium Satellite subsidiary, and Aireon entered into an Amended and Restated Limited Liability Company Agreement with NAV CANADA, the ANSP of Canada, and a wholly owned subsidiary of NAV CANADA.
−Removed: In February 2014, we entered into a Second Amended and Restated Limited Liability Company Agreement, or the Aireon LLC Agreement, with NAV CANADA;
+Added: We hold our ownership in Aireon LLC through the Amended and Restated Aireon Holdings LLC Agreement, along with our co-investors NAV CANADA, the ANSP of Canada;
Enav S.p.A., the ANSP of Italy;
Naviair, the ANSP of Denmark;
−Removed: Irish Aviation Authority Limited, the ANSP of Ireland, or IAA;
−Removed: and wholly owned subsidiaries of NAV CANADA, Enav and Naviair.
−Removed: In May 2018, we entered into a Third Amended and Restated Limited Liability Company Agreement, or the Aireon LLC Agreement, with NAV CANADA;
−Removed: NATS (Services) Limited, the ANSP of the United Kingdom;
−Removed: and wholly owned subsidiaries of NAV CANADA, Enav, NATS, Naviair, and IAA.
−Removed: In December 2018, in connection with Aireon’s entry into a debt facility, we and the other Aireon investors contributed our interests in Aireon into a new holding company, Aireon Holdings LLC, and entered into an Amended and Restated Aireon Holdings LLC Agreement.
−Removed: Aireon Holdings holds 100% of the membership interests in Aireon LLC, which remains the operating entity.
+Added: Irish Aviation Authority Limited, the ANSP of Ireland;
+Added: NATS (Services) Limited, the ANSP of the United Kingdom, and wholly owned subsidiaries of NAV CANADA, Enav, NATS, Naviair, and IAA.
+Added: Aireon Holdings holds 100% of the membership interests in Aireon LLC, which is the operating entity for the Aireon system.
Under the Aireon Holdings LLC Agreement, we hold a common membership interest, and the other investors hold preferred membership interests resulting from their investments in Aireon for an aggregate purchase price of approximately $339 million.
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The chief executive officer of Aireon Holdings serves as the eleventh director.
−Removed: The Aireon Holdings LLC Agreement also provides the minority-interest holders with several protective provisions.
−Removed: In addition, pursuant to a debt facility for Aireon LLC provided by us and the other Aireon investors, we will participate pro-rata, based on our fully diluted current ownership stake, in an investor bridge loan.
−Removed: As such, in December 2020, we invested $0.2 million in Aireon LLC.
−Removed: We expect future funding by us and the other Aireon investors to be required in 2021 and 2022.
+Added: The Aireon Holdings LLC Agreement also provides the minority-interest holders, including us, with several protective provisions.
+Added: At December 31, 2021, our fully diluted ownership stake in Aireon Holdings LLC was approximately 35.7%, and remained unchanged.
+Added: We account for our investment in Aireon Holdings LLC as an equity method investment.
+Added: We and the other Aireon investors have agreed to participate pro-rata, based on our fully diluted current ownership stake, in funding an investor bridge loan to Aireon.
Our maximum commitment under the investor bridge loan is $10.7 million.
−Removed: The mobile satellite services industry is highly competitive but has significant barriers to entry, including the cost and difficulty associated with obtaining spectrum licenses and successfully building and launching a satellite network.
−Removed: In addition to cost, there is a significant amount of lead time associated with obtaining the required licenses, building and launching the satellite constellation, and deploying the ground network technology.
−Removed: We currently face substantial competition from other service providers that offer a range of mobile and fixed communications options.
+Added: In December 2020, we loaned $0.2 million to Aireon , which was subsequently repaid in June 2021 .
+Added: The mobile satellite services industry is highly competitive, and we currently face substantial competition from other service providers that offer a range of mobile and fixed communications options.
Currently, our principal mobile satellite services competitors are Inmarsat, Globalstar, ORBCOMM, and Thuraya Telecommunications Co., or Thuraya.
We compete primarily on the basis of coverage, quality, mobility and pricing of services and products.
−Removed: Inmarsat owns and operates a fleet of GEO satellites.
+Added: Inmarsat, which has agreed to be acquired by Viasat, owns and operates a fleet of GEO satellites.
Unlike LEO satellites, GEO satellites orbit the earth at approximately 22,300 miles above the equator.
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Like Globalstar, ORBCOMM’s network also has a “bent pipe” architecture, which constrains its real-time coverage area.
−Removed: ORBCOMM’s principal focus is low-cost data and
−Removed: IoT services, where it directly competes with our IoT offerings.
+Added: ORBCOMM’s principal focus is low-cost data and IoT services, where it directly competes with our IoT offerings.
Because a ground station may not be within view of a satellite, ORBCOMM’s services may have a significant amount of latency, which may limit their use in some mission-critical applications.
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In addition, there are a number of new entrants to the mobile satellite services industry, with varying constellation designs and business models, primarily providing commodity broadband services similar to existing GEO-based fixed satellite services operators.
−Removed: While their announced Ka and Ku-band operations and business plans are different from, and even complementary to, Iridium's L-band services, some may in the future provide services that compete with us.
+Added: New entrants face significant challenges, including the cost and difficulty associated with obtaining spectrum licenses and successfully building and launching a satellite network.
+Added: In addition to cost, there is a significant amount of lead time associated with obtaining the required licenses, building and launching the satellite constellation, and deploying the ground network technology.
+Added: While many new entrants have announced Ka and Ku-band operations and business plans that are different from, and even complementary to, Iridium's L-band services, some may in the future provide services that compete with us.
While we view our services as largely complementary to terrestrial wireline and wireless communications networks, we also compete with them indirectly.
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We foster this sentiment by focusing on development, employee wellness and social responsibility.
−Removed: This starts with an onboarding process that introduces our core mission and values, policies and procedures, performance review process and background about the company.
+Added: This starts with an onboarding process that introduces our core mission and values, policies and procedures, performance review process and background about our company.
We support our employees in their career development by providing on-the-job training and education reimbursement to help employees maintain or enhance skills in their current position or help with acquiring new skills to prepare for future opportunities.
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We take responses from our employees seriously and use them to inform specific strategies every year tailored to both the entire company as well as specific teams.
−Removed: We also help our employees stay engaged in other ways, including participation in Employee Resource Groups, or ERGs, and other outreach efforts that cover a range of topics and interests.
−Removed: Active ERGs include Iridium Women Connect and the Diversity and Inclusion Advisory Council.
+Added: We also help our employees stay engaged in other ways, including participation in Employee Resource Groups, or ERGs, volunteer activities through the Iridium Cares Program, and other outreach efforts that cover a range of topics and interests.
+Added: Active ERGs include Iridium Women Connect.
We formed our Diversity and Inclusion Advisory Council in 2020, and it has identified four objectives to make our Iridium community, and the world, a more diverse and inclusive place:
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Response to COVID-19
−Removed: As for most companies and individuals, the COVID-19 pandemic has dramatically changed the way that we all live and work.
−Removed: From the earliest reports of coronavirus, we closely monitored its spread to understand the potential impact on the health and safety of our workers and our partners.
−Removed: Our COVID-19 task force closely monitors federal and local guidelines and communicates frequently to employees about recent developments and actions.
−Removed: We developed a health and safety policy specific to COVID-19 that outlines protocols consistent with federal guidelines.
−Removed: We quickly transitioned our workforce to work from home, except for employees needing in-person access to laboratories or other resources onsite.
−Removed: We believe we’ve learned to operate successfully in this new environment, and we remain committed to supporting a more carbon-friendly, hybrid work program for our team once infection rates allow.
−Removed: For our employees whose duties require on-site work (less than 20% of our workforce), we increased cleaning and sanitation at all locations, installed smart screen questionnaires, installed hand sanitizer stations and had a third party inspector check for air quality improvements and required changes in our facilities.
−Removed: We developed a scenario analysis to guide our employees and are supporting them as needed to ensure they are safe and well-equipped to do their jobs.
+Added: As is the case for most companies and individuals, the COVID-19 pandemic has dramatically changed the way that we operate and how our employees live and work.
+Added: From the earliest reports of the coronavirus outbreak, we actively monitored its spread to understand the potential impact on the health and safety of our workers and our partners.
+Added: Our COVID-19 working group continues to closely monitor federal, state and local guidelines and requirements and communicate frequently to employees about recent developments and actions.
+Added: We developed a health and safety policy specific to COVID-19 that outlines protocols consistent with federal guidelines, and during 2020 we implemented an emergency COVID-19 sick leave policy to supplement existing paid time off.
+Added: We initially transitioned our workforce to work from home and have now moved to a hybrid model, except for employees needing in-person access to laboratories or other resources onsite.
+Added: We believe that we have learned to operate successfully in this new environment, and we remain committed to supporting our new, more carbon-friendly, hybrid work program for our team.
Intellectual Property
At December 31, 2021, we held 33 U.S.
+Added: patents and one foreign patent.
These patents cover several aspects of our satellite system, our global network, our communications services, and our devices.
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If Motorola Solutions were to terminate any such agreement, it may be difficult or, under certain circumstances, impossible to obtain the technology from alternative vendors.
−Removed: Motorola Solutions has assigned a portion of the patents covered by some of these licenses to one or more third parties.
We license additional intellectual property and technology from other third parties and expect to do so in the future in connection with our network and related ground infrastructure and services as well as our devices.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.