Cellular phone price wholesale

Iridium unveiled Monday a revamped marketing strategy, which has as its cornerstone significantly reduced and simplified service and equipment pricing. The new strategy focuses on delivering tailored communications solutions to customers in the industrial marketplace that have the greatest immediate need for satellite communications services. The aggressive new strategy aims to position Iridium as a key player in the market and to drive sales worldwide.

"The feedback from the market provided two essential messages -- lower and simplify the pricing and focus on the customers who have the greatest need for the service," said John Richardson, Iridium Chief Executive Officer. "We have responded with price reductions that will allow our service providers to offer service price reductions of up to 65% of the original price. We have also simplified pricing so each customer will enjoy a flat per minute rate for international calls. In doing so we have repositioned Iridium as a competitively-priced telecommunications solution for our customers -- whether they are industrial users in mining, maritime, oil and gas, or individual users on business travel or vacation - any customer that has a need to communicate from remote locations."

Motorola and Kyocera have also announced significant reductions in the wholesale prices of their satellite subscriber product for the Iridium system. Motorola is introducing new pricing on the entire portfolio of Satellite Series handsets, pagers, and select accessories. Kyocera plans to reduce the price of its satellite voice handset. Effective July 1, Iridium customers will be able to purchase Iridium system equipment at extremely competitive and affordable rates.

In addition to pricing, Iridium is rolling out a more customer-driven approach to the marketplace. By creating service packages tailored to specific market segments, including both the industrial and personal markets, Iridium will provide solutions to the unique communications needs of its customers.

"We have a number of specialty products, including antennas for a variety of applications, solar chargers and portable docking stations for the phones, not to mention the cellular cassettes and pagers, that allow each service provider to deliver precisely the service its customers need," said Sue Kennedy, Vice President of Marketing and Distribution. "With reductions in both the equipment and service prices, our service providers will now have even greater flexibility and our customers will now be able to benefit from Iridium services at less than half of the original cost."

Iridium gateway distribution is being strengthened worldwide. In support of this effort, for example, Motorola, under the direction of its Global Satellite Solutions Group, is putting trained salespeople on the street to sell Iridium services and Iridium system products in an effort to reach the important industrial markets. Motorola will have a direct sales force of 200 in the United States by the end of this month. Motorola has also engaged its other product distribution teams around the world to assist gateways and service providers with sales of Iridium services and Motorola Satellite Series products. Additionally, Iridium is working with existing satellite service providers that currently sell to these industrial customers across multiple markets.

Iridium LLC recently received from its lenders a 30-day waiver of the financial covenants relating to customers and revenues under its $800 million Senior Secured Credit Facility. Iridium has taken advantage of this extension to make these important changes in its marketing and distribution strategy. Iridium is continuing to work with all its lenders to restructure its financing.

With regard to the impact of the pricing changes on Iridium's long-term effort to meet its business plan, John Richardson said, "These significant reductions have a short-term impact on our bottom line; however, we believe that the combination of attractive pricing and customer-driven service will ultimately help us to load the customers, and see the usage we need to make this business a financial success."

The overall health of the constellation remains excellent. Iridium recently celebrated its 20th consecutive successful launch, deploying two satellites that will act as spares for the Iridium constellation. With the network performing at a high level of quality, subscriber equipment now widely available and a comprehensive new equipment and service offering, Iridium is truly entering the commercial phase better prepared to address its customers' needs.

Iridium LLC became the world's first global satellite phone and paging company on November 1, 1998. Its network of 66-low earth orbiting satellites, combined with existing terrestrial cellular systems, enables customers to communicate around the globe. Iridium World Communications, Ltd. is the public investment vehicle of Iridium LLC.