Rocket Lab bought Iridium’s satellite network for $8 billion to compete with SpaceX

Rocket Lab, the space company known as Small satellite launcher Electron, he has Announced acquisition plans Iridium Communications for $8 billion. The deal will combine Rocket Lab’s launch services and spacecraft manufacturing with Iridium’s satellite-based communications network, making it better positioned to challenge SpaceX.

Iridium provides communications services to more than 2.5 million subscribers worldwide. Its users leverage Iridium’s constellation of 66 low-Earth orbit satellites and L-band spectrum to maintain communication with people on ships, aircraft, and in other remote locations. Iridium has partnered with SpaceX to Launch of the NEXT satellite constellation In 2019.

in Video about acquisitionRocket Lab CEO Sir Peter Beck says the deal will provide a “shortcut” for the company to build a satellite network. “They have very valuable spectrum, and it’s very difficult to get,” Beck says. “They have millions of customers and, of course, are a trusted government provider.” Beck adds that it is a “very profitable business” and that the company “does not invest in hopes and dreams.” This step It mirrors SpaceX’s Starlink pushwhich is currently the only profitable business for the company.

Rocket Lab aims to build on the Iridium network and help deploy the next generation of satellites, which will include direct-to-instrument services that the space company says will “grow into an important new capability for U.S. national security and emergency response.”