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Iridium & Deutsche Telekom Join Forces to Expand Global IoT Connectivity
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Key Takeaways
{\"0\":\"Iridium and Deutsche Telekom will integrate NTN Direct with global IoT infrastructure.\",\"1\":\"The service launches in 2026, enabling IoT roaming for industries worldwide.\",\"2\":\"IRDM targets $1B in annual service revenues by 2030 through tech upgrades.\"}
Iridium Communications ((IRDM - Free Report) ) recently partnered with Deutsche Telekom ((DTEGY - Free Report) ) to deliver global connectivity through Iridium’s upcoming NTN Direct service. This collaboration positions both companies at the forefront of 3GPP standards-based, 5G-powered non-terrestrial networks (NTN), bringing direct-to-device (D2D) connectivity for IoT to customers across industries and geographies.
The initiative focuses on integrating Iridium’s NTN Direct service into Deutsche Telekom’s terrestrial global IoT infrastructure. Iridium NTN Direct is built to complement terrestrial networks such as Deutsche Telekom’s, delivering seamless worldwide coverage and extending the reach of their existing infrastructure.
Through access to Iridium’s extensive LEO satellite network, Deutsche Telekom’s customers will gain expanded global NB-IoT coverage, ensuring reliable connectivity for sensors, machines, and vehicles. This integration is made possible by cost-efficient, 3GPP-compliant 5G devices that seamlessly operate on both terrestrial and non-terrestrial networks.
Iridium’s satellite constellation is the sole network offering genuine worldwide coverage over L-band spectrum, ensuring dependable connectivity even during severe weather conditions such as hurricanes and blizzards. Operating in low Earth orbit (LEO), it delivers better coverage, improved viewing angles, and lower latency than geostationary systems.
Set to debut commercially in 2026, the service will enable Deutsche Telekom’s IoT customers to connect via the Iridium network when roaming. This will support applications such as messaging, tracking, and device status updates across IoT, automotive, and industrial sectors. Potential use cases include global cargo logistics, remote monitoring of utilities, smart farming, and emergency response. Once roaming agreements are finalized, Deutsche Telekom customers will gain seamless access to Iridium NTN Direct as part of their global IoT service portfolio.
IRDM Drives Growth Through Technology Upgrades
Iridium is strengthening its technology infrastructure through solid R&D investments to reach $1 billion in annual service revenues by 2030. The company is advancing services such as Satellite Time and Location (STL), Midband, Direct-to-Device (D2D), and satellite-based personal communications. Its Project Stardust initiative, launched in 2024, underscores this strategy by developing a 3GPP 5G standards-based NB-IoT Non-Terrestrial Network (NB-NTN).
With 3GPP’s approval to expand NB-IoT for NTN in Release 19, Iridium is positioning itself to deliver consumer-focused D2D services for smartphones and wearables, while enabling global IoT roaming. Standard-based chipsets are expected to lower costs and broaden adoption, creating new opportunities in industries previously constrained by high satellite expenses. Looking ahead, CapEx of about $90 million in 2025 will fund satellite software, new cloud-based ground systems, and facility expansion, supporting long-term IoT growth.
Challenges Weighing on IRDM’s Near-Term Outlook
Iridium operates in a highly competitive market with licensing delays, rising tariffs, and funding cuts pressuring growth. The company trimmed its 2025 service revenue forecast to 3-5% due to maritime broadband transitions, voice subscriber losses, and delayed PNT revenues. Tariffs could add $6-$7 million in costs this year, while cybersecurity risks remain a persistent threat across industries relying on satellite connectivity. Adding to concerns, Iridium’s debt load has risen sharply, with a debt-to-capital ratio near 79% versus an industry average of 57%, making the stock riskier than its peers.
IRDM’s Zacks Rank & Stock Price Performance
Iridium currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 33.6% in the past six months against the Zacks Satellite and Communication industry's rise of 97.8%.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2 (Buy) at present. It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.
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Iridium & Deutsche Telekom Join Forces to Expand Global IoT Connectivity
Key Takeaways
Iridium Communications ((IRDM - Free Report) ) recently partnered with Deutsche Telekom ((DTEGY - Free Report) ) to deliver global connectivity through Iridium’s upcoming NTN Direct service. This collaboration positions both companies at the forefront of 3GPP standards-based, 5G-powered non-terrestrial networks (NTN), bringing direct-to-device (D2D) connectivity for IoT to customers across industries and geographies.
The initiative focuses on integrating Iridium’s NTN Direct service into Deutsche Telekom’s terrestrial global IoT infrastructure. Iridium NTN Direct is built to complement terrestrial networks such as Deutsche Telekom’s, delivering seamless worldwide coverage and extending the reach of their existing infrastructure.
Through access to Iridium’s extensive LEO satellite network, Deutsche Telekom’s customers will gain expanded global NB-IoT coverage, ensuring reliable connectivity for sensors, machines, and vehicles. This integration is made possible by cost-efficient, 3GPP-compliant 5G devices that seamlessly operate on both terrestrial and non-terrestrial networks.
Iridium Communications Inc Price and Consensus
Iridium Communications Inc price-consensus-chart | Iridium Communications Inc Quote
Iridium’s satellite constellation is the sole network offering genuine worldwide coverage over L-band spectrum, ensuring dependable connectivity even during severe weather conditions such as hurricanes and blizzards. Operating in low Earth orbit (LEO), it delivers better coverage, improved viewing angles, and lower latency than geostationary systems.
Set to debut commercially in 2026, the service will enable Deutsche Telekom’s IoT customers to connect via the Iridium network when roaming. This will support applications such as messaging, tracking, and device status updates across IoT, automotive, and industrial sectors. Potential use cases include global cargo logistics, remote monitoring of utilities, smart farming, and emergency response. Once roaming agreements are finalized, Deutsche Telekom customers will gain seamless access to Iridium NTN Direct as part of their global IoT service portfolio.
IRDM Drives Growth Through Technology Upgrades
Iridium is strengthening its technology infrastructure through solid R&D investments to reach $1 billion in annual service revenues by 2030. The company is advancing services such as Satellite Time and Location (STL), Midband, Direct-to-Device (D2D), and satellite-based personal communications. Its Project Stardust initiative, launched in 2024, underscores this strategy by developing a 3GPP 5G standards-based NB-IoT Non-Terrestrial Network (NB-NTN).
With 3GPP’s approval to expand NB-IoT for NTN in Release 19, Iridium is positioning itself to deliver consumer-focused D2D services for smartphones and wearables, while enabling global IoT roaming. Standard-based chipsets are expected to lower costs and broaden adoption, creating new opportunities in industries previously constrained by high satellite expenses. Looking ahead, CapEx of about $90 million in 2025 will fund satellite software, new cloud-based ground systems, and facility expansion, supporting long-term IoT growth.
Challenges Weighing on IRDM’s Near-Term Outlook
Iridium operates in a highly competitive market with licensing delays, rising tariffs, and funding cuts pressuring growth. The company trimmed its 2025 service revenue forecast to 3-5% due to maritime broadband transitions, voice subscriber losses, and delayed PNT revenues. Tariffs could add $6-$7 million in costs this year, while cybersecurity risks remain a persistent threat across industries relying on satellite connectivity. Adding to concerns, Iridium’s debt load has risen sharply, with a debt-to-capital ratio near 79% versus an industry average of 57%, making the stock riskier than its peers.
IRDM’s Zacks Rank & Stock Price Performance
Iridium currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 33.6% in the past six months against the Zacks Satellite and Communication industry's rise of 97.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Ubiquiti Inc. ((UI - Free Report) ) carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2 (Buy) at present. It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.