Iridium NEXT Partnership in Earth Observation: Costs and Schedules

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Iridium NEXT Partnership in Earth
ObservationCosts and Schedules

• Royal Society
• London
• 22nd January 2008
• Don Thoma
• Iridium Satellite LLC
• don.thoma_at_iridium.com
• 1.301.571.6240

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Overview

• Iridium Satellite and plans for NEXT
• Partnership in Earth Observation
• Decision milestones
• Potential business models

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Iridium Satellite LLC
Worlds largest and most sophisticated commercial
satellite network providing global communications
on the move people, vehicles, aircraft, assets

• 66 satellite polar orbiting constellation
• A single subscriber device works worldwide
• Ubiquitous coverage over all oceans land masses
  including polar routes
• Low time latency worldwide
• Satellite-to-satellite links create secure routes
  mesh network in space

230,000 subscribers and growing at over 30
annually
Iridium is starting it NEXT generation system for
deployment in 2013
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Geographic Traffic Distribution September 2004
Diversified Global Operator
Note Data based on origination of commercial
voice and data transmissions only
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Geographic Traffic Distribution September 2005
Diversified Global Operator
Note Data based on origination of commercial
voice and data transmissions only
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Geographic Traffic Distribution September 2006
Diversified Global Operator
Note Data based on origination of commercial
voice and data transmissions only
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Geographic Traffic Distribution September 2007
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International Waters 29
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Diversified Global Operator
Note Data based on origination of commercial
voice and data transmissions only
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Iridium NEXT Our Second Generation

• Plans underway to replace current constellation
  beginning 2013
• Backward compatible for existing customers
• Improved data speeds, subscriber technology, core
  technology improvements
• Maintain unique attributes -- global coverage,
  security, availability, LEO architecture
• Opportunities for secondary payloads to use
  network
• Estimated cost of NEXT 2.7B with secondary
  payload
• Alternative design with no secondary estimated at
  2.2B

Procurement process has begun
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NEXT Financed From Strong Cash Flows

• Strong financial performance since restart in
  2000
• 1.2B in operating cash available to finance
  majority of NEXT
• gt300M in 2015 cash flow to finance NEXT
• Possibly offset by secondary payload contribution

Revenue and Operational EBITDA
10 per year revenue Growth 2008-2015
300M operating Cash in 2015
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NEXT Program Schedule

• RFI responses in September 2007
• Selection of system prime candidates by early
  2008
• Secondary payload partners defined 2H 2008
• Contract and key suppliers selected by 1Q 2009,
  with PDR in mid 2010
• First launches expected in CY2013, until NEXT
  complete

NEXT development underway to ensure service and
business continuity
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Public-Private Partnership in Earth Observation

• Earth observation community shares the
  communications platform of commercial systems

Iridium
GEO Members
NEXT system design, build and launch Sensor
integration support Satellite operations Ground
segment and communications
Sensor selection EO sensors build and
integration Data processing, calibration Data
dissemination
Constellation based EO system providing a
comprehensive synergistic data set until 2030 and
beyond
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Allocation by Sharing Infrastructure

• Pricing model based on allocation of costs based
  on share of payload mass
• Assumes 50 Kg secondary payload
• Total satellite mass is 850 Kg (communications
  payload is 294 Kg)

Sensor mission is 20 of total spacecraft mass
Sensor mass is 15 of total payload mass
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Significant Cost Savings by Sharing Infrastructure

• Direct costs associated with secondary payload
  paid by secondary payload
• Secondary payload shares its proportion of core
  system capital and operating costs

Mission cost, M
Total mission cost equivalent of 1.6M per year
per satellite for 15 year operating life
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Economics and Procurement Mechanisms

• Total cost estimate for four missions 1.6B
  between 2009-2030
• Includes 66 sensors, integration, launch ground
  segment through 2030
• Data processing handled by existing
  infrastructure
• EO benefits from Iridiums 6.1B total investment
  in communications system
• NEXT constellation capital 2008-1016 (2.7B)
• Operating expense between 2014-2030 (2.4B)
• Sustaining capital and spares 2010-2030 (1.0B)
• Iridium benefits by offsetting cost through 1.0B
  pre-buy of data prior to 2016
• GEO members get data stream through 2014 2030

GEO Member Sponsor Agencies
Iridium
Sensor selection EO sensors build and
integration Data processing, calibration Data
dissemination
NEXT system design, build and launch Sensor
integration support Satellite operations Ground
segment and communications
NEXT Comm Infrastructure 6.1B
NextView like acquisition strategy will
enable comprehensive data set through 2030 and
beyond
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Advantage Over Heritage Mission Costs

• Study performed by Futron Corporation looking at
  economics of heritage mission compared to a
  hosted payload approach
• Evaluated 13 missions, publicly available costs
  of build, deployment, operations
• Parametric analysis comparing mission cost per
  sensor per year

Conventional Cost
NEXT Shared Cost
Fills critical data void at 5-50 cost of
conventional missions
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Example Mission - Altimeters

• 24 altimeter mission on hosted payload
• 1.76M per year for 15 years per altimetry sensor
• Complementary to high accuracy Jason mission
• Provides calibration baseline for operational
  altimetry mission

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Example Funding Profile Altimetry Mission

• Need to begin mission planning in 2008
• Begin budget process for design and manufacture
  expenditures in 2010

Action required in 2008 to ensure 2013 launch can
be met!
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Example Mission GPS Radio Occultation

• 24 off GPSRO mission
• 1.2M per year for 15 years per GPSRO sensor

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Example Funding Profile GPS RO

• Need to begin mission planning in 2008
• Begin budget process for design and manufacture
  expenditures in 2010

Action required in 2008 to ensure 2013 launch can
be met!
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Schedule Challenge and Opportunity

• Matching Government and commercial decision and
  funding cycles
• Quickly develop plan to synch up timelines
• Procurement models that support a public-private
  partnership

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Critical Issues

• Mission identification
• International cooperation
• Procurement vehicle that supports a
  Public-Private Partnership
• Funding mechanism
• Funding timeline

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Powerful Public-Private Partnership
Lets make this a reality!