What changed in this filing

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Item 1. Business

2023-02-16 compared with 2022-02-17 · 146 added, 138 removed, 631 unchanged (31% of the section changed)

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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.

The current Iridium ® constellation was completed in 2019 and fully replaced our first-generation system while maintaining compatibility with all end-user equipment.

The current Iridium ® constellation was completed in 2019, fully replacing our first-generation system.

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.

Aireon has contracted to provide the service to our co-investors in Aireon and to other ANSPs around the world, including the U.S.

Federal Aviation Administration, or FAA.

Aireon has contracted to provide the service to our co-investors in Aireon and to other ANSPs around the world.

Aireon has also contracted to pay us a fee to host the ADS-B receivers on our satellites, as well as data service fees for the delivery of the air traffic surveillance data over the Iridium system.

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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.

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.

Recreational users rely on our services as a safety and critical personal communications lifeline to remain in contact with friends and family, as well as for emergency distress signals.

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.

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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.

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.

With broadband services provided for the maritime and land-mobile industries and a 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.

We expect that these and future Iridium Certus service offerings will continue to drive growth opportunities in our commercial business.

In January 2023, we announced that we entered into an agreement with Qualcomm Technologies, Inc.

to enable satellite messaging and emergency services in smartphones powered by Qualcomm’s Snapdragon ® Mobile Platforms.

This agreement is aimed to support our satellite services in a variety of smartphone brands and has the potential to expand our services to other consumer devices in the future.

government, directly and indirectly, has been and continues to be our largest single customer, generating $149.8 million in service and engineering and support service revenue, or 21% of our total revenue, for the year ended December 31, 2022.

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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.

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.

Department of Defense, or DoD, and other federal government subscribers.

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 between $100 million and $110.5 million over the term.

We may provide other services, such as Iridium Certus, to the U.S.

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government has made, and continues to make, significant investments to upgrade its dedicated gateway, to purchase our voice and data devices, and to invest directly and indirectly in research and development and implementation support for additional services on our network, such as Distributed Tactical Communications Services, or DTCS, and Iridium Certus.

We also provide engineering and support services to the U.S.

government under a contract awarded by the Space Development Agency in May 2022 to General Dynamics Mission Systems, with Iridium as a subcontractor, which we refer to as the SDA contract.

Under this contract, General Dynamics Mission Systems and Iridium will build ground entry points and operations centers for the Proliferated Warfighter Space Architecture (PWSA), as well as provide network operations and systems integration services for the SDA’s next tranche of proliferated low-earth orbit satellites.

We sell our products and services to commercial end users through a wholesale distribution network, encompassing approximately 85 service providers, approximately 285 value-added resellers, or VARs, and approximately 80 value-added manufacturers, or VAMs, which create and sell technology that uses the Iridium network either directly to the end user or indirectly through other service providers, VARs or dealers.

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Mobile satellite services operators provide voice and data services to people and machines using a network of satellites and ground facilities.

Mobile satellite services are intended to meet users’ needs for connectivity in all locations where terrestrial wireless and wireline communications networks do not exist, do not provide sufficient coverage, or are impaired, including rural and developing areas that lack adequate wireless or wireline networks, airways, ocean and polar regions where few alternatives exist, and regions where the telecommunications infrastructure has been affected by political conflicts or natural disasters.

Government organizations, including military and intelligence agencies and disaster response agencies, non-governmental organizations, and industrial operations and support teams depend on mobile and fixed voice and data satellite communications services on a regular basis.

areas that lack adequate wireless or wireline networks, airways, ocean and polar regions where few alternatives exist, and regions where the telecommunications infrastructure has been affected by political conflicts or natural disasters.

Government organizations, including military and disaster response agencies, non-governmental organizations, and industrial operations and support teams depend on mobile and fixed voice and data satellite communications services on a regular basis.

Businesses with global operations require reliable communications services when operating in remote locations around the world.

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By contrast, mobile satellite services providers, such as us, focus more on voice and data services, where mobility and small-sized terminals are essential.

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.

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 Space Exploration Technology Corp.’s (SpaceX) Starlink and OneWeb Holdings Limited.

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.

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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.

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.

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.

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.

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• Attractive and growing markets.

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.

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, the continued development of the IoT, and the continued development of other innovative, lower-cost technology, such as applications integrating mobile satellite products and services into other devices, including embedding satellite capability into terrestrial smartphones.

Only satellite providers can offer global coverage, and developing a satellite network requires significant financial investment, as well as technological and regulatory challenges.

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government is our largest single customer, and we have provided airtime services to the U.S.

government (particularly the Department of Defense, or DoD) since our inception.

government (particularly the DoD) since our inception.

We believe the U.S.

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This gateway is only compatible with our satellite network.

In September 2019, we entered into the EMSS contract and continue to see significant usage of our network under this contract.

In September 2019, we entered into the EMSS contract and continue to see usage of our network under this contract.

With ongoing investments by the DoD, we expect to see growth in adoption as enhancements are implemented and new services are launched.

We also view the SDA contract as a confirmation and expansion of our strategic relationship with the U.S.

• Wholesale distribution network.

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We believe our distribution network can continue to grow with us and increase our market penetration.

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.

For example, our network, spectrum and architecture are ideally suited to small, handheld devices used for personal communications, and we have leveraged our wholesale distribution approach to provide a wide array of such personal communications services using both Iridium and partner devices.

Our Business and Growth Strategies

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• Expand our target markets through the development of new products and services.

We believe that we can expand our target markets by developing and offering a broader range of products and services, including a wider array of cost-effective and competitive broadband, midband and IoT data services using Iridium Certus technology to complement and expand on our existing legacy narrowband services.

We believe that we can expand our target markets by developing and offering a broader range of products and services, including a wider array of cost-effective and competitive broadband, midband, safety services, and IoT data services using Iridium Certus technology to complement and expand on our existing narrowband services.

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.

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.

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.

For example, during 2022, we introduced Iridium Messaging Transport SM (IMT SM ), a two-way, cloud-native networked data service optimized for use over Iridium Certus and designed to make it easier to add satellite connections to existing or new IoT solutions.

• Accelerate the development of personal communications capabilities .

Part of our strategy for the development of personal mobile satellite communications is to allow individuals to connect to our network in more ways, including from devices such as smartphones, tablets and laptops through our Iridium GO!

® device or a variety of personal communication devices from VAMs and VARs like Garmin.

® and Iridium GO!

exec TM devices or a variety of personal communication devices from VAMs and VARs like Garmin.

We are making our technology more accessible and cost-effective for our distribution partners to integrate by licensing our core technologies;

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and by developing new services that take advantage of the capabilities of our global constellation.

For example, in January 2023, we announced a new agreement with Qualcomm to enable satellite messaging and emergency services in smartphones.

• Continued growth in services provided to the U.S.

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.

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.

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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.

Aireon has contracted to offer its service to ANSPs and other commercial customers worldwide.

Aireon has also contracted to pay us a fee to host their payloads on our satellites and pays us data service fees for the delivery of the air traffic surveillance data from those payloads over the Iridium system.

We will also continue to hold a meaningful equity stake in Aireon.

We also continue to hold a meaningful equity stake in Aireon.

Distribution Channels

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We also sell airtime services directly to the U.S.

government, including the Department of Defense, for resale to other government agencies.

government, including the DoD, for resale to other government agencies.

government and international government agencies may purchase additional services as well as our products and related applications through our network of distributors.

We provide our distributors with support services, including assistance with coordinating end user sales and marketing, strategic planning and training, and second-tier customer support, as well as helping them market our products and services and respond to new business opportunities.

We have representatives covering three regions around the world to better manage our distributor relationships:

We have representatives covering three regions around the world to better manage our

distributor relationships:

the Americas, which includes North, South and Central America;

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These VARs integrate our handsets, transceivers, high-speed data devices and Short Burst Data, or SBD ® , modems with other hardware and software to create packaged solutions for end users.

Examples of these applications include cockpit voice and data solutions for use by the aviation sector and voice, data and tracking applications for industrial customers, such as Caterpillar Inc., the Department of Defense, and other U.S.

and foreign government agencies.

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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.

Our VAMs include Beam Communications Pty Ltd., Calamp Wireless Networks Corporation, Garmin Services Inc.

and Honeywell Global Tracking Limited.

Our VAMs include Beam Communications Pty Ltd., Calamp Wireless Networks Corporation, Garmin Services Inc., Honeywell Global Tracking Limited and Qualcomm Technologies, Inc.

In addition to VARs and VAMs, we maintain relationships with approximately 75 value-added developers, or VADs.

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Our agreements with distributors typically have terms of one year and are automatically renewable for additional one-year terms, subject to termination rights.

We believe this business model 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.

We believe this business model 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.

Government Markets

We provide mission-critical mobile satellite products and services to all military branches of the Department of Defense as well as other U.S.

We provide mission-critical mobile satellite products and services to all military branches of the DoD as well as to other U.S.

government departments and agencies.

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We believe we are well positioned to satisfy demand from these users.

Our 9575A handset is the only commercial, mobile handheld satellite phone that is capable of Type I encryption accredited by the U.S.

Our 9575A handset is the only commercial, mobile handheld satellite phone capable of Type I encryption accredited by the U.S.

National Security Agency for Top Secret voice communications.

In addition, the U.S.

government continues to make significant investments in a dedicated gateway that provides operational security and allows users of encrypted U.S.

government handsets to communicate securely with other U.S.

government continues to make significant investments in a dedicated gateway that provides operational security and allows users of encrypted Iridium handsets to communicate securely with other U.S.

government communications equipment.

These investments include upgrading the gateway to take advantage of the enhanced capabilities of our new network, including Iridium Certus and other enhanced services.

These investments include upgrading the gateway to take advantage of the enhanced capabilities of our network, including Iridium Certus and other enhanced services.

government gateway is only compatible with our satellite network.

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government for resale to end users, our hardware products are sold to U.S.

government customers through our network of distributors, which typically integrate them with other products and technologies.

government customers through our network of distributors, who typically integrate them with other products and technologies.

We may provide other services, such as Iridium Certus, to the U.S.

government under separate arrangements for an additional fee.

Through December 31, 2021, we have invested approximately $8.3 million to support the U.S.

government's implementation of our enhanced services at its dedicated gateway, which we account for as cost of services in our consolidated financial statements.

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.

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.

This agreement, which became effective in April 2019, provides for a six-month base term and four one-year options, all of which have been exercised, for a total value of the contract to us of approximately $54 million.

In September 2019, we were also awarded a five-year indefinite-delivery/indefinite-quantity gateway evolution contract managed by the U.S.

Space Force to enable ongoing innovation and enhancements for the U.S.

government gateway.

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.

This contract had an initial one-year base period and four one-year options, the first three of which have been exercised, with a value of up to $76 million to us over the five-year period.

In May 2022, the SDA awarded General Dynamics Mission Systems, with Iridium as a subcontractor, the SDA contract, to establish the ground Operations and Integration (O&I) segment for Tranche 1 of the PWSA.

The SDA contract has an estimated value of $324.5 million, which includes a $163 million base amount and $161.5 million in options.

We expect to receive $133 million in revenue over the course of the contract’s seven-year term.

Revenues from the SDA contract contributed to higher engineering and support service revenue in 2022, as well as associated expenses, than in 2021, and we expect that trend to continue in 2023.

government services, including engineering services, accounted for approximately 21% of our total revenue for the year ended December 31, 2022.

Our reported U.S.

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.

government revenue includes airtime revenue derived from the EMSS contract and services provided through the GMSS contract, the gateway evolution contract, and other engineering and support contracts with the U.S.

Pursuant to federal acquisition regulations, the U.S.

government may terminate the EMSS, GMSS or IDIQ contracts, in whole or in part, at any time.

government may terminate the EMSS, GMSS, gateway evolution, or SDA contracts, in whole or in part, at any time.

Our government revenue does not include airtime services purchased by U.S.

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Our system is able to offer our customers cost-effective communications solutions with true global coverage in areas unserved or underserved by existing telecommunications infrastructure.

Our mission-critical communications solutions have become an integral part of the communications and business infrastructure of many of our end users.

Our mission-critical communications solutions have become an integral part of the communications and business

infrastructure of many of our end users.

In many cases, our service is the only connectivity for these critical applications or is used to complement terrestrial communications solutions.

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Commercial Voice and Data and Commercial Broadband

We offer commercial voice and data and commercial broadband services primarily in the land mobile, maritime, and aviation sectors.

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.

Because there is considerable overlap in these sectors, we continue to combine our discussion of these revenue lines in this report, noting within the discussion where our broadband services contribute, particularly in maritime.

We offer commercial broadband services primarily in the land mobile, maritime, and aviation sectors, as well as commercial voice and data services.

We separately report commercial Iridium Certus broadband revenue with Iridium OpenPort ® service revenue as commercial broadband revenue.

Because there is considerable overlap in these sectors, we have combined our discussion of these revenue lines in this report, noting within the discussion where our broadband services contribute, particularly in maritime.

We are the leading provider of mobile satellite communications services to the land mobile sector, providing handset services to areas not served or inconsistently served by existing terrestrial communications networks.

In a 2021 report, TMF Associates reported that there were approximately 756,000 land voice satellite units in service in 2020.

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.

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We believe that demand for mobile communications devices operating outside the coverage of terrestrial networks, combined with our small, lightweight, durable handsets with true global coverage, will allow us to capitalize on growth opportunities among these users.

In addition, we believe Iridium Certus broadband land mobile units are attractive in this market, as the combination of price, speeds, equipment, service costs and durability of equipment addresses a distinct market need.

We also expect Iridium Certus midband services to be a source of revenue growth in the coming years.

In addition, we believe Iridium Certus broadband land mobile units are attractive in this market, as the combination of price, speeds, equipment, reliability in various weather conditions, and durability of equipment addresses a distinct market need.

We also expect Iridium Certus midband products and services, such as our new Iridium GO!

exec device, to be a source of revenue growth in the coming years.

Our land mobile end users utilize our satellite communications services for:

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• Public safety and disaster relief :

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.

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 the volcanic eruption in Tonga in 2022, hurricanes - most recently Ian and Nicole in 2022, 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.

Further, many enterprises and governments include mobile satellite

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.

Further, many enterprises and governments include mobile satellite 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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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.

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.

For example, one of our distribution partners, Marlink 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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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.

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

inside the room to communicate with rescuing forces.

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 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.

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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.

to carry distress and safety terminals that provide GMDSS services.

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.

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 increasingly used in commercial and government aviation applications, principally by business 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.

As a result of authorizations by the U.S.

Federal Aviation Administration, or FAA, and U.S.

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.

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Avionics platforms that utilize our network are also retrofitted on thousands of corporate and commercial aircraft already in operation.

The global aviation community in particular has been negatively affected by the COVID-19 pandemic and measures taken to combat it.

We saw significant recovery in this sector in 2021 and expect to see continued recovery in 2022;

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.

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.

We continue to see aviation as an area of growth for us.

The global aviation community was particularly affected by the COVID-19 pandemic but has largely recovered, and we continue to see aviation as an area of growth for us.

Aviation end users utilize our satellite communications services for:

• Air traffic control communications and safety applications :

The International Civil Aviation Organization, or ICAO, has approved standards and recommended practices allowing us to provide AMS(R)S to commercial aircraft on long-haul routes.

The International Civil Aviation Organization, or ICAO, has approved standards and recommended practices allowing us to provide Aeronautical Mobile Satellite (Route) Service, or AMS(R)S, to commercial aircraft on long-haul routes.

This allows member states to evaluate and approve our services for safety communications on flights in oceanic and remote airspace.

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This includes the ADS-C automatic reporting of an aircraft’s position and mission-critical condition data to the ground and CPDLC for clearance and information services.

We provide critical communications applications for numerous airlines and air transport customers including Hawaiian Airlines, United Airlines, UPS, Cathay Pacific Airways, Delta Airlines, Southwest Airlines and El Al Airlines.

We provide critical communications applications for numerous airlines and air transport customers, including Hawaiian Airlines, United Airlines, UPS, Fedex, Cathay Pacific Airways, Delta Airlines, Southwest Airlines, American Airlines, Iceland Airlines, and El Al Airlines.

These operators rely on our services because other forms of communication may be unaffordable or unreliable in areas such as the polar regions.

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Companies such as Air Logistics, EagleMed and Air Evac Lifeteam rely on applications from our distributors for traditional voice communications, fleet tracking and management, and real-time flight diagnostics.

VARs and VAMs such as Flightcell International Ltd., Garmin Services Inc., Honeywell International, Inc., SkyTrac and Spider Tracks Limited incorporate Iridium products and services into their applications for these markets.

VARs and VAMs such as Flightcell International Ltd., Garmin Services

Inc., Honeywell International, Inc., SkyTrac and Spider Tracks Limited incorporate Iridium products and services into their applications for these markets.

• Unmanned Aerial Vehicles (UAVs) :

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In addition, our global footprint enables reliable, beyond-line-of-sight communications for these UAV platforms regardless of their operational range.

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.

We operate as the communication link for remote-piloted aircraft for uses such as package delivery, medical supply, power-line inspection, law enforcement, corporate surveying and even military applications.

We believe the benefits of Iridium Certus enhance our ability to address aviation market needs across these sectors.

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We believe increasing demand for automated data collection processes from mobile and remote assets operating outside the coverage of terrestrial wireline and wireless networks, as well as the continued need to integrate the operation of such assets into enterprise management and information technology systems, will likewise increase demand for our IoT applications.

For example, our IoT devices have been adopted as standard equipment and as factory options by heavy equipment manufacturers such as Caterpillar Inc., Hitachi, Komatsu and Doosan to provide telematics solutions for end users.

Our IoT services are used for:

• Personal tracking devices and location-based services :

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.

Several of our VAMs and VARs, such as Garmin, ACR Electronics, 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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Our global coverage permits our products and services to be used to monitor the location of vehicle fleets, hours of service and engine telemetry data, as well as to conduct two-way communications with drivers around the world.

Fleet management companies, such as Trimble Transportation & Logistics, Mix Telematics and Zatix, use our service to provide distance drivers with reliable communications to their dispatchers and their destinations to coordinate changing business needs, and our satellite network provides continuous communications coverage while they are in transit.

Fleet management companies, such as ID Systems, Mix Telematics, and Omnilink, use our service to provide distance drivers with reliable communications to their dispatchers and their destinations to coordinate changing business needs, and our satellite network provides continuous communications coverage while they are in transit.

We expect that the need for more efficient, cost-effective and safer fleet operations, as well as the imposition of regulatory mandates related to driver safety, such as drive-time monitoring, will increase demand for our services in this area.

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• Scientific data monitoring :

The global coverage of our network supports many scientific data collection applications such as the Argo float program of the National Oceanographic and Atmospheric Administration, or NOAA, the Global Ocean Observation project Challenger, operated by Rutgers University, and the anti-poaching programs of organizations such as Smithsonian National Zoo & Conservation Institute, Zoological Society of London, and Veterans Empowered to Protect African Wildlife, or VETPAW.

The global coverage of our network supports many scientific data collection applications, including the Argo float program of the National Oceanographic and Atmospheric Administration, or NOAA, the Global Ocean Observation project Challenger, operated by Rutgers University, and anti-poaching programs run by the Smithsonian National Zoo & Conservation Institute, the Zoological Society of London, and Veterans Empowered to

Protect African Wildlife, or VETPAW.

These programs rely on our IoT services to collect scientific data from buoys and ocean gliders located throughout the world’s oceans and from wildlife habitats for monitoring and analysis.

We believe the increased need for monitoring climate and environmental data associated with global climate change and human impact on the planet will increase demand for these services.

In the future, we expect our value-added partners to develop new IoT solutions with increased capabilities based on our Iridium Certus 9770 transceiver and other future midband devices we plan to provide across all of our key IoT vertical markets.

In the future, we expect our value-added partners to develop new IoT solutions with increased capabilities based on our Iridium Certus TM 9770 transceiver and other future midband devices we plan to provide across all of our key IoT vertical markets.

Hosted Payload and Other Data Services

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We generate revenue from these customers both from the hosted payload capacity and from data service fees.

Because these revenues are based on a contractual commitment for the life of the Iridium constellation, we recognize revenue from these customers over the expected life of the system.

Because the hosted payload revenues are based on a contractual commitment for the life of the Iridium constellation, we recognize revenue from these customers over the expected life of the system.

In addition to access and usage fees in the vertical lines of business described above, we generate revenue from several ancillary services related to our core service offerings.

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We are one of the leading providers of mobile satellite communications services to the U.S.

government, principally the Department of Defense.

government, principally the DoD.

We provide mobile satellite products and services to all branches of the U.S.

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In addition, we offer services to U.S.

government customers, including the Department of Defense.

government customers, including the DoD.

government services, including engineering services, accounted for approximately 21% of our total revenue for the year ended December 31, 2022.

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We also offer mobile voice services to service providers and VARs through prepaid plans.

Service providers and VARs pay us in advance for defined blocks of airtime minutes with expiration periods in various configurations, ranging from 30 days to two years.

Service providers and VARs pay us in advance for defined blocks of airtime minutes with expiration periods in various configurations, ranging from 30 days to two years and can be extended by the purchase of additional e-vouchers up to a maximum of three or four years.

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.

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Broadband Data Services

Our new broadband data offering, Iridium Certus, was launched in January 2019.

Our broadband data offering, Iridium Certus, was launched in January 2019.

Iridium Certus is a suite of products and services enabled by our upgraded satellite constellation.

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.

Iridium Certus is a multi-service platform capable of offering higher quality voice, enterprise-grade broadband functionality, and safety and security services on a global basis.

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.

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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.

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.

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.

We also continue to offer our legacy 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 monthly access fees and usage fees for airtime consumed by the respective subscribers for voice and data communications.

We have discontinued the manufacture of the Iridium Pilot ® platform that supports Iridium OpenPort services and see many of these customers upgrading to Iridium Certus technology, which we expect to continue.

Internet of Things Services

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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.

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 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.

We also offer Iridium GO!, a small, rugged, personal connectivity device that connects to the Iridium network to create a Wi-Fi hotspot, enabling the use of smartphones and tablets for voice calls, text messages and emails, posts to social networking sites, and limited use of optimized mobile websites.

• Iridium GO!

is a small, rugged, personal connectivity device that connects to the Iridium network to create a Wi-Fi hotspot, enabling the use of smartphones and tablets for voice calls, text messages and emails, posts to social networking sites, and limited use of optimized mobile websites.

also has an emergency SOS button and GPS and location-based services.

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connectivity into existing applications.

We expect these devices to maintain our competitive position as premium offerings in the market due to their capabilities, mobility, reliability and global coverage.

• Iridium GO!

exec, a premium version of the Iridium GO!, is powered by our Iridium Certus 100 service and provides IP connectivity to the Internet and up to two high-quality voice lines.

Data speeds are up to 40 times faster for downloads and 10 times faster for uploads compared to the Iridium GO!.

The Iridium GO!

exec has a modernized, sleek design with built-in color touch screen and speakerphone for mobile office connectivity and WiFi for access from smartphones or laptops within a range of up to 100 feet.

The built-in battery provides up to 24 hours of standby and up to 6 hours of use.

We expect these devices to help us maintain our competitive position as premium offerings in the market due to their capabilities, mobility, reliability and global coverage.

In addition to these devices, we offer variants of the Iridium 9555 handset and the Iridium Extreme handset that are qualified for sale to U.S.

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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.

Additional Iridium Certus 200 terminals are currently in development and are expected to be commercially available in 2023.

In aviation, Iridium Certus will deliver critical safety services and in-flight communications.

Our principal targeted end users for Iridium Certus in the aviation market include commercial, corporate and government users, general aviation, rotorcraft and

unmanned aircraft.

The initial terminals in this sector are the SkyTrac DLS-100 and the BlueSky SkyLink 7100.

Our principal targeted end users for Iridium Certus in the aviation market include commercial, corporate and government users, general aviation, rotorcraft and unmanned aircraft.

The initial terminals in this sector are the Blue Sky Networks Skylink 7100, Honeywell Aspire 350, Collins IRT NX, and Skytrac SDL-350.

A number of other VAMs have been licensed to create aviation terminals using Iridium Certus services as well.

Additional Iridium Certus aviation products are expected to become commercially available in 2023.

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.

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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.

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.

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.

Iridium 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.

Terminals that are approved for land mobile market include the Thales MissionLINK 700 and 200, BSN SkyLink 5100, NAL Research Quicksilver, and McQ CONNECT.

In the government market, Iridium Certus terminals provide beyond-line-of-sight communications critical to mission

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We provide gap-filler coverage for these applications, allowing users to operate anywhere on the globe.

We also offer Iridium Burst, our one-to-many global data broadcast service, which enables enterprises to send data to an unlimited number of devices anywhere in the world, even inside buildings, vehicles or aircraft, and Iridium Edge ® , an off-the-shelf, environmentally sealed, rugged device that complements existing cellular solutions to create dual-mode connectivity for the most remote and inaccessible areas of the world.

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.

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.

We also offer Iridium Burst, our one-to-many global data broadcast service, which enables enterprises to send data to an unlimited number of devices anywhere in the world, even inside buildings, vehicles or aircraft, and a suite of Iridium Edge ® finished IoT products designed to lower the barrier to adoption and speed time to market for customer applications.

The Iridium Edge device is an off-the-shelf, environmentally sealed, rugged device that complements existing cellular solutions to create dual-mode connectivity for the most remote and inaccessible areas of the world, reducing the cost and complications associated with hardware development, manufacture and certification of satellite-specific terminals.

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 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.

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.

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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.

The design of our constellation

ensures that generally at least one satellite is visible to subscribers from any point on the earth's surface.

The design of our constellation ensures that generally at least one satellite is visible to subscribers from any point on the earth’s surface at any given time.

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.

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The use of a TPN allows grounding traffic at multiple locations within our ground network infrastructure.

This and other design elements provide flexibility that allows for rapid reconfiguration of grounding traffic from the satellites in the event of a space, antenna or ground routing anomaly and results in greater reliability of our network.

of our network.

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.

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Our primary commercial gateway is located in Tempe, Arizona, with a second dedicated commercial gateway located in Russia.

A gateway processes and terminates calls and generates and controls user information pertaining to registered users, such as geo-location and call detail records.

A gateway processes and terminates calls and data and generates and controls user information pertaining to registered users, such as geo-location and call detail records.

government owns and operates a dedicated gateway for U.S.

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gateway earth station and the U.S.

government customer and commercial subscriber earth station licenses expire between March 2022 and November 2036.

government customer and commercial subscriber earth station licenses expire between February 2036 and March 2037.

We must file renewal applications for earth station licenses between 30 and 90 days prior to expiration.

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The Aireon system was developed by Aireon LLC, which we formed in 2011, with subsequent investments from the ANSPs of Canada, Italy, the United Kingdom, Denmark and Ireland, to provide a global air traffic surveillance service through a series of ADS-B receivers on our satellites.

Aireon has contracted to offer this service to our co-investors in Aireon, as well as other ANSPs, including the FAA.

These ANSPs will use the service to provide improved air traffic control services over the oceans, as well as polar and remote regions.

Aireon has contracted to offer this service to our co-investors in Aireon, as well as other ANSPs.

These ANSPs 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.

Under our agreements with Aireon, Aireon will pay us fees of $200.0 million to host the ADS-B receivers on our satellites, of which they have paid us $62.5 million as of December 31, 2021, as well as power and data services fees of approximately $23.5 million per year in the aggregate for the delivery of the air traffic surveillance data over the Iridium system.

Under our agreements with Aireon, Aireon will pay us fees of $200.0 million to host the ADS-B receivers on our satellites, of which they have paid us $78.5 million as of December 31, 2022.

These fees will be recognized over the life of the satellites, or approximately $16.0 million per year.

Additionally, Aireon pays power and data services fees of approximately $23.5 million per year in the aggregate for the delivery of the air traffic surveillance data over the Iridium system.

While the Aireon ADS-B receivers are the primary hosted payload on our satellites, we have also entered into an agreement with L3Harris for it to utilize the remaining space for payloads it has constructed for its customers.

This agreement resulted in an additional $74.1 million in hosting and data service fees, all of which L3Harris has paid as of December 31, 2022.

In September 2022, we announced that we have entered into an agreement with SpaceX to launch up to five of our remaining ground spare satellites on a Falcon-9 rocket from Vandenberg Space Force Base in mid-2023.

We do not currently hold any active in-orbit insurance policies covering losses from satellite failures, and we do not expect to obtain in-orbit insurance covering losses from satellite failures or other operational problems affecting our constellation.

We also do not plan to purchase launch insurance for the planned launch of our remaining spare satellites.

Regulatory Matters

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We have certain de-orbit obligations under our FCC licenses.

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.

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.

All of our second-generation satellites are subject to the less stringent 25 year de-orbit standard.

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.

We began de-orbiting individual first generation satellites as they were replaced with new satellites.

We completed the required de-orbit initiation process for our first-generation satellites during 2019.

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.

All of our second-generation satellites are subject to a 25-year de-orbit standard.

We plan to de-orbit our second-generation consistent with this standard, in accordance with the FCC authorization of our current constellation.

Aireon LLC and Aireon Holdings LLC Agreement

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;

We hold our ownership in Aireon LLC through the Amended and Restated Aireon Holdings LLC Agreement, along with subsidiaries of our co-investors NAV CANADA, the ANSP of Canada;

Enav S.p.A., the ANSP of Italy;

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Irish Aviation Authority Limited, the ANSP of Ireland;

NATS (Services) Limited, the ANSP of the United Kingdom, and wholly owned subsidiaries of NAV CANADA, Enav, NATS, Naviair, and IAA.

and NATS (Services) Limited, the ANSP of the United

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.

If and when funds are available, Aireon Holdings is required to redeem a portion of our ownership interest for a payment of $120 million, following which NAV CANADA’s subsidiary will hold a 45% interest in Aireon Holdings, and the other ANSP subsidiaries will collectively hold a 33% interest, with Iridium retaining a 22% interest.

In June 2022, we entered into a subscription agreement with Aireon Holdings and invested $50 million in exchange for an approximate 6% preferred membership interest.

We also hold a common membership interest.

The other investors hold the remaining preferred membership interests resulting from their investments in Aireon for an aggregate purchase price of approximately $339 million.

At December 31, 2022, our fully diluted ownership stake in Aireon Holdings was approximately 39.5%, up from 35.7% at December 31, 2021.

If and when funds are available, Aireon Holdings is required to redeem a portion of our common ownership interest for a payment to us of $120 million, following which NAV CANADA’s subsidiary will hold a 42% interest in Aireon Holdings, and the other ANSP subsidiaries will collectively hold a 31% interest, with Iridium retaining a 27% interest.

Based on Aireon’s business plan and restrictions under Aireon’s debt facility, we do not expect this redemption of our ownership interest to occur for several years.

The Aireon Holdings LLC Agreement provides for Aireon Holdings to be managed by a board of directors consisting of 11 members.

Currently, we may nominate two directors, NAV CANADA may nominate five directors, Enav and NATS may each nominate one director, and Naviair and IAA may together nominate one director.

Currently, we may nominate two directors, NAV CANADA may nominate five directors, and the other ANSPs nominate a total of three directors.

The chief executive officer of Aireon Holdings serves as the eleventh director.

The Aireon Holdings LLC Agreement also provides the minority-interest holders, including us, with several protective provisions.

At December 31, 2021, our fully diluted ownership stake in Aireon Holdings LLC was approximately 35.7%, and remained unchanged.

We account for our investment in Aireon Holdings LLC as an equity method investment.

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.

We account for our investment in Aireon Holdings as an equity method investment.

We and the other Aireon investors have agreed to participate pro-rata, based on our respective fully diluted current ownership stakes, in funding an investor bridge loan to Aireon.

Our maximum commitment under the investor bridge loan is $10.7 million.

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This design requires the use of multiple ground stations, which are impractical in extreme latitudes or over oceans.

ORBCOMM also provides commercial services using a fleet of LEO satellites.

ORBCOMM, which was acquired in 2022 by GI Partners, a private equity firm, also provides commercial services using a fleet of LEO satellites.

Like Globalstar, ORBCOMM’s network also has a “bent pipe” architecture, which constrains its real-time coverage area.

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Our regional mobile satellite services competitors currently include Thuraya, principally in Europe, the Middle East, Africa, Australia and several countries in Asia.

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.

In addition, there are a number of new entrants to the mobile satellite services industry, including Starlink and OneWeb, with varying constellation designs and business models, primarily providing commodity broadband services similar to existing GEO-based fixed satellite services operators.

New entrants face significant challenges, including the cost and difficulty associated with obtaining spectrum licenses and successfully building and launching a satellite network.

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.

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.

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.

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Research and Development

Our research and development efforts have focused on the development, design and testing of our new constellation and new products, such as Iridium Certus, Iridium Edge, Iridium PTT, Iridium Burst, Iridium GO!, transceiver modules and chipsets.

We also develop product enhancements and new applications for our existing products.

Our research and development efforts have focused on the development, design and testing of our new constellation and new products, such as Iridium Certus, Iridium Messaging Transport, Iridium Edge, Iridium PTT, Iridium Burst, Iridium GO!, Iridium GO!

exec, transceiver modules and chipsets.

We also develop network and product enhancements and new applications for our existing products.

Our research and development expenses were $16.2 million, $11.9 million and $12.0 million for the years ended December 31, 2022, 2021, and 2020, respectively.

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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.

In 2022, we introduced an annual survey to understand what benefits are important to our employees and ensure that we are offering a competitive total rewards package.

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.

Active ERGs include Iridium Women Connect.

In 2022, we launched the Iridium Co-Pilot Program, offering new hires a smoother onboarding process over their first 90 days with our company.

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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Each working group has its own goals, stakeholder relationships, strategy and executive sponsorship.

Response to COVID-19

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.

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.

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.

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.

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.

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

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patents and one foreign patent.

These patents cover several aspects of our satellite system, our global network, our communications services, and our devices.

In addition to our owned intellectual property, we also license critical intellectual property from Motorola Solutions to operate and maintain our network and related ground infrastructure and services as well as to design and manufacture our devices.

This intellectual property is essential to our ability to continue to operate our constellation and sell our services and devices.

These patents relate to several aspects of satellite systems, global networks, communications services, and communications devices.

In addition to our owned intellectual property, we also license critical intellectual property from Motorola Solutions to operate and maintain aspects of our network and related ground infrastructure and services as well as to design and manufacture certain of our devices.

This intellectual property is essential to our ability to continue to operate aspects of our constellation and sell certain of our services and devices.

We maintain our licenses with Motorola Solutions pursuant to several agreements, which can be terminated by Motorola Solutions upon the commencement by or against us of any bankruptcy proceeding or other specified liquidation proceedings or upon our material failure to perform or comply with any provision of the agreements.

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Any substitute intellectual property or technology may also have lower quality or performance standards, which would adversely affect the quality of our devices and services.

For more information, see “Risk Factors—We are dependent on intellectual property licensed from third parties to operate our constellation and sell our devices and for the enhancement of our existing devices and services.”

For more information, see “Risk Factors—We depend on intellectual property licensed from third parties to operate our constellation and sell our devices and for the enhancement of our existing devices and services.”

Available Information

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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.

What changed 10-K

Item 1. Business