The satellite industry is experiencing a seismic shift, with the race for direct-to-device connectivity turning globally coordinated spectrum into a coveted resource. This has prompted established players to reevaluate their most valuable assets. We’re joined by Vladislav Zaimov, a veteran telecommunications specialist with deep expertise in enterprise networks and risk management, to unpack how Iridium is navigating this new landscape and positioning its unique “spectrum real estate” for a future of ubiquitous connectivity.
The market has seen a surge in interest in direct-to-device services, especially for mobile satellite spectrum. How has this industry-wide shift altered Iridium’s strategic view of its spectrum assets, and what specific types of business alliances are you now considering to maximize their value?
It’s been a dramatic and rapid re-evaluation. For years, Iridium viewed its spectrum purely as the foundation for its own satellite communication services. It was the essential plumbing, not a tradable commodity. But the industry was shaken up about six months ago when deals like SpaceX’s acquisition of EchoStar’s licenses put a multi-billion dollar price tag on this kind of asset. Suddenly, what was once just infrastructure is now seen as prime real estate. This has compelled a complete shift in thinking, where the company now openly discusses maximizing shareholder value through its spectrum. The door is now wide open to alliances that can generate incremental value, moving from a purely operational mindset to a strategic, asset-maximization approach.
Your L-band spectrum is global but only 9MHz wide. How do you balance the advantage of global coordination and landing rights against the limited bandwidth, and what challenges does this present when negotiating partnerships for services that require larger channels, such as 5G NTN?
That’s the fundamental push-and-pull of Iridium’s position. On one hand, possessing a clean, globally coordinated spectrum with landing rights in numerous countries is an incredibly powerful advantage. It eliminates the patchwork problem that plagues others, like AST SpaceMobile, who have to assemble regional licenses. This global nature is what makes the spectrum so special. On the other hand, 9MHz is indeed a narrow slice. When you’re in discussions about 5G NTN, which requires channels in the 3MHz to 5MHz range, that limited bandwidth becomes a significant constraint. It means we can’t be the sole provider for a broadband service. This reality shapes every negotiation; we can’t offer vast capacity, but we can offer unparalleled global access, which is a unique and critical piece of the puzzle for a potential partner.
Given that a full 5G NTN service would require more bandwidth than Iridium possesses, what would your primary role be in such an alliance? Could you walk us through how a partnership might be structured to augment another operator’s service using your unique spectrum rights?
Our role would be to augment, not to implement. We simply don’t have the capacity to build a full 5G NTN service from the ground up on our spectrum. A partnership would be structured so that another operator, one with a larger swath of spectrum but perhaps lacking global rights, would provide the core broadband service. Iridium would then bring its 9MHz to the table to fill in the gaps. This could mean providing a global roaming layer, ensuring a baseline of connectivity in regions where the primary partner lacks licenses, or offering a dedicated channel for critical, low-bandwidth communications that must work everywhere. The only way a 5G NTN service happens within our spectrum is through this kind of synergistic alliance where we complement a larger network, we don’t try to become one.
You are launching a standards-based narrowband IoT service later this year. How does this service fit into your broader D2D strategy, and how might it serve as a foundation or a bargaining chip for future partnerships aimed at more demanding broadband applications?
The new narrowband IoT service is a perfect fit for our current assets and a very strategic first step. With our 9MHz of spectrum, we have more than enough capacity to support this kind of service robustly and on a global scale. It allows us to immediately capitalize on the D2D trend and grow our subscriber base, which already sits at 2.4 million commercial users, 83% of whom are IoT data subscribers. This move accomplishes two things: it solidifies our position in a growing market segment and demonstrates the power and reliability of our network. It essentially serves as a proof-of-concept and a powerful bargaining chip. We can go into negotiations for a future broadband alliance not just with a valuable spectrum license, but with an active, standards-based, and successful global D2D service already in operation.
The competitive landscape for D2D spectrum includes players with regional licenses and others forming joint ventures. What specific advantages does Iridium offer a potential partner compared to these other models, and what key metrics will you use to evaluate the success of a potential spectrum alliance?
Iridium’s primary advantage is its simplicity and completeness. When a partner engages with us, they get a single, globally coordinated block of clean L-band spectrum. They don’t have to deal with the complexities of a “spectrum condo situation” like the Equatys joint venture, which can be a long-term and complicated arrangement. They also avoid the headache of piecing together a web of regional licenses. The key metrics for evaluating any alliance will be centered on incremental value. First, does it directly increase shareholder value beyond our current operational trajectory? Second, does it leverage our unique global position in a way that our own services cannot? And finally, does it create a sustainable, long-term revenue stream without compromising the integrity and performance of our core services, which brought in $871.7 million in revenue last year.
What is your forecast for the direct-to-device market over the next five years?
The next five years will be a period of intense experimentation and consolidation. We’ll see some of the initial, more speculative D2D concepts fail to gain traction, while others focused on clear use cases like emergency messaging, remote IoT, and service augmentation will flourish. The market will move beyond the initial hype and focus on tangible value and reliable service. I predict that hybrid models, where satellite operators partner with terrestrial mobile network operators, will become the dominant strategy. Standalone satellite D2D services will struggle to compete on price and convenience. Ultimately, the winners will be those who, like Iridium, hold clean, globally harmonized spectrum and can forge pragmatic, intelligent alliances to deliver seamless connectivity where it matters most.
