Iridium North America Announces New Pricing Structure
Business Editors
TEMPE, Ariz.--(BUSINESS WIRE)--June 24, 1999--Iridium North America
(INA) today announced a simplified call rate structure and an equipment price
reduction to further boost the value it offers U. S. Service providers and their
subscribers.
To demonstrate INA's commitment to the repositioning of the Iridium
program, the simplified call rate structure, which becomes effective July 1,
1999, will see Iridium reduce its original 15 international pricing zone rates to
as few as 4 pricing scenarios for voice services. Those pricing scenarios are (1)
Iridium satellite telephone calls from an Iridium handset to an Iridium handset;
(2) Iridium satellite telephone calls originated and terminated in North America
(domestic calls); (3) Iridium satellite telephone calls made from one
international location to another international location (international calls); (4)
and, Iridium World Roaming Service where calls are made across the terrestrial
networks.
The pricing scenarios for Iridium homed satellite calls have suggested retail
prices ranging from as low as $1.59 per minute using the Iridium network
exclusively to as low as $2.99 per minute for all other international satellite
calls. It should be noted that the satellite price is a total cost, including both
long distance and toll charges, unlike emerging competitors.
INA is working with its service providers to develop new usage based service
packages and pricing that are better aligned with their customer's needs.
Packages will vary from low monthly access fees with higher usage rates for
subscribers with contingency usage needs to higher monthly access and low
usage rates for those subscribers who use the Iridium solution consistently.
"Iridium North America's new pricing reflects the diversity of the markets we
serve and gives our service providers the latitude to create market-specific
access plans," said Jim Walz, president of Iridium North America. "In addition
to the simplified pricing structure, we will continue to fully support our service
providers by supplying them with the front and back office tools they need to be
successful."
Also, based on the feedback from the existing subscriber base, the
equipment package for Iridium handsets will now include a high capacity
battery, an auxiliary portable antenna and an antenna adapter, which has
previously been priced separately. The price of the handset equipment package
for use on the Iridium system in the U.S. has now been reduced to a suggested
retail rate of $1,495.00 for the Motorola Satellite Series 9500 Portable
Telephone and the Motorola Satellite Series 9501 Pager at a suggested retail
rate of $395.00. The suggested retail price for service and equipment is
exclusive of any programs, promotions or other incentives offered to new
subscribers by our Service Providers.
"Iridium offers a comprehensive communication solution for those
businesses and industries that can't afford to be out of reach," said Walz.
"These organizations understand the value that cost-effective communication
can contribute to their bottom lines."
Iridium North America's target industries include commercial and leisure
marine, entertainment, oil and gas, mining, construction, aviation,
humanitarian, agriculture, and government (military, emergency services,
disaster relief). These industries often operate in remote areas where there is
no land-based coverage and a communications solution is vital to their
success. INA's target market also includes the Global Citizens who travel
internationally and are heavy cellular users. These Global citizens need a
communications solution that will provide continuity of communications across
incompatible cellular standards as well as for those areas without any
land-based communications.
Iridium North America is the sole owner and operator for Iridium services in
North America. Iridium North America is actively selling services through
integrated wireless service providers and distribution partners providing
customers the ability for unique service that permits any type of telephone
transmission - voice, paging, data and fax - to reach its destination virtually
anywhere on Earth, at any time. Iridium North America is headquartered in
Tempe, Arizona and serves the United States, Bermuda, Guam and Puerto
Rico. Iridium North America is backed by telecommunications leaders
Motorola, Inc., Sprint Corporation and Iridium Canada, Inc. For additional
information regarding the Iridium system, please visit the web site at
www.iridium.com or call 1-888-IRIDIUM.
--30--rg/ny*
CONTACT: Iridium North America
Karla Williams
480/752-1102 |
