With competitive pricing and complete coverage of Australia, both parties anticipate a new level of interest in Iridium services across the continent's rural and remote regions. Iridium Satellite's CEO, Gino Picasso, said high costs previously posed a major barrier to those entering the satellite services market.

"However, the new Iridium, with its affordable pricing, business model and leadership, has helped overcome the barriers and is proving to be a real success story," said Picasso. "The Telstra-Iridium agreement demonstrates that affordable satellite communications has an important role to play in remote markets."

Eighty-six percent of the world's landmass and all of its oceans are in areas without wireless or landline service coverage. Iridium addresses the situation by providing coverage in all ocean areas, air routes, and landmasses, including the Poles. For people who live, work and travel in areas outside cellular coverage or in areas without landline services, Iridium offers an immediate, viable solution.

Telstra will provide Iridium services on a non-exclusive basis in Australia. The company will work closely with its Asia Pacific market coordinator, Quadrant Communications, to market and sell Iridium services including voice, data and text messaging. Telstra will also support the entire range of specialty equipment built for use with the Iridium system.

Quadrant Iridium Limited, which is a significant investor in the Iridium project, facilitated the negotiations with Telstra. Under the deal, Telstra will purchase equipment and airtime from Iridium and will resell services through its existing distribution network. Like all service providers in Iridium's global network, Telstra will be responsible for providing the crucial link to the customers by acquiring, provisioning and supporting their use of the service.

According to Michael Boyd, chairman of Quadrant Iridium Limited, Iridium's competitive pricing and comprehensive constellation played a significant role in Telstra's decision to become a service partner.

"Telstra's commitment to offer satellite services sends a strong signal to the market regarding the viability of this business and the strength of Iridium's new model. As a result, we expect to achieve significant gains in Australia and throughout the region," said Boyd.

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