Therefore, it is evident Iridium's products and services can be applied in a broad range of businesses, enabling the company to build a diversified growth strategy.Īdditionally to the communications services, the corporation offers a range of products to its customers. Other activities facilitated by M2M services include fleet management, asset tracking, resource management in the fishing industry, and scientific data monitoring. Even now, Iridium provides its M2M communications services to global heavy equipment manufacturers like Caterpillar ( CAT ), making it possible to monitor all kinds of machines in the construction, mining, and other markets. Iridium already emphasized in its 2016 annual report the importance of M2M services for the company's future growth. These include such giants as Tesla ( TSLA), Intel ( INTC) after acquiring Mobileye ( MBLY), Delphi Automotive ( DLPH), and other big corporations that need global data communication to make connected cars possible. Therefore, the services offered by the company could be in demand by the industries involved in the smart city development or, especially, by the companies developing a self-driving technology. For instance, the company emphasized in the annual report its ability to profit from the advancement of Internet of Things (IOT) which requires significant machine-to-machine (M2M) data communication. Moreover, the current trends in global technology development seem to be beneficial for the type of business operated by Iridium. Additionally, the entry barriers (financial, regulatory, and technological) are significant, making the competition inside the industry rather predictable. The main advantage of such a business is the fact that relationships with the customers are likely to be long-term, which enables steady growth over a long period of time. The list of commercial clients includes companies from a broad range of industries, including aviation, utilities, mining, construction, and transportation. Thus, the corporation generated 25% of revenue from the U.S government for the year ended December 31, 2016, with the Department of Defense (DOD) being the primary customer. Iridium has been quite successful in the last five years with its existing satellite base and offered its services to both commercial and governmental institutions. The corporation claims to be "the second largest provider by revenue of mobile voice and data communications services" and currently possesses more than 60 operational satellites that facilitate global coverage. Iridium Communications ( NASDAQ: IRDM) is the company that offers telecommunications products and services powered by satellite.
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