SpaceX Signs $492 Million Launch Services Contract With Iridium

SpaceX inked a half-billion-dollar contract today to launch next-generation Iridium communications satellites on Falcon 9 rockets at Vandenberg Air Force Base in California.

In a joint news release, the California company and Iridium Communications Inc. of McLean, Va., said the $492 million contract is "the largest single commercial launch deal ever signed," and "a new benchmark in cost-effective satellite delivery to space."

Iridium operates the world’s largest commercial satellite constellation, and is the only communications company to offer mobile, voice and data services around the world, the two companies said.

The Falcon 9s will carry multiple Iridium NEXT satellites per vehicle, inserting the satellites into a low-earth orbit (LEO) as Iridium replaces its current satellite constellation. The launches will take place between 2015 and 2017.

Iridium expects to sign on at least one additional launch services provider. Launch services are included in the total estimated cost of $2.9 billion for Iridium NEXT.

“We are proud to be partnered with SpaceX, and want to congratulate Elon Musk and the entire SpaceX team on its successful inaugural Falcon 9 launch," said Matt Desch, CEO of Iridium.

"Hands down, SpaceX offered us the best value coupled with an unwavering commitment to flawless performance and reliability. SpaceX has combined the best of aerospace and commercial best practices to design reliable and cost-effective access to space, and Iridium will be the beneficiary of that effort," he said.

“SpaceX also offered dedicated Iridium NEXT launch slots within its manifest, which currently has 24 Falcon 9 flights scheduled ahead of us, including those for commercial and government customers, during the coming five years. Clearly, SpaceX has established itself as a significant player in the launch industry, and we have great confidence that SpaceX will build on its recent success and continue to cement an impressive track record of successful space flight in advance of our mission.”

SpaceX CEO Elon Musk said Iridium now is the company's largest commercial satellite launch customer.

“We are impressed by Iridium’s comprehensive approach and diligence in its planning as the company prepares for the design, build and launch of Iridium NEXT. SpaceX greatly appreciates Iridium’s efficient approach to satellite production – an approach we share when it comes to our launch vehicles," Musk said.

"As the next generation of the world’s only global satellite constellation that reliably covers 100 percent of the Earth’s surface, the implementation of the Iridium NEXT satellites will mark a significant achievement in mobile satellite communications, and SpaceX is looking forward to making it happen.”

IMAGE NOTE: Click to enlarge the SpaceX photo of the inaugural Falcon 9 test flight from Cape Canaveral Air Force Station. Photo credit: SpaceX/Chris Thompson