It wants its own satellite internet network.
These days, it’s not enough to own a company that sends things up into space; you also need to own the things you’re sending up. Rocket Lab, one of the smaller names in the private spaceflight sector, has today announced it’s buying Iridium Communications in a deal worth $8 billion. In essence, it’s an attempt to buy the capacity it needs to go toe-to-toe with SpaceX’s ever-growing Starlink network. If all the regulatory hurdles are cleared, Rocket Lab will own Iridium’s network of 80 satellites, which connect some of the most remote locations on Earth, as well as its wireless spectrum.
If the name Iridium rings a distant bell, it’s because it’s the company Qualcomm partnered with to bring satellite texting to Android devices. Qualcomm dreamt up Snapdragon Satellite as an alternative to Apple’s space-based emergency SOS feature. Sadly, the program was scuttled in 2023 after phone manufacturers turned their noses up at the plan, and the only mainstream handsets with satellite connectivity are the Pixel 9 series.
The growing adoption of Starlink and SpaceX’s mad valuation have led plenty of its would-be rivals to buy in extra capacity. Back in April, Amazon announced a “merger” between its Leo satellite internet service and Globalstar, which provides the satellite backbone for Apple’s emergency SOS service.
In a statement, Rocket Lab said the deal would give it an “immediate foothold” in various space-based markets. That includes direct device communications and internet of things networks, as well as global positioning, navigation and timing services for major infrastructure providers. Rocket Lab will also likely see benefits for the various military satellite contracts it services. And while Iridium’s network hasn’t grown for a while due to its financial troubles, Rocket Lab is committing to “build upon it to scale into untapped markets and pioneer new space-based services to the benefit of global customers.”
