Shares of Iridium Communications (IRDM +11.06%) climbed on Thursday after the satellite services provider announced a successful test of its NTN Direct network.
By the close of trading, Iridium’s stock price was up more than 11%.
Image source: Getty Images.
The future of connectivity
The test included two-way message transmission over Iridium’s low-Earth orbit satellite network. The space-based, direct-to-device platform could be among the first to support wireless communications between Internet of Things (IoT) devices worldwide.
Today’s Change
(11.06%) $2.17
Current Price
$21.79
Key Data Points
Market Cap
$2.1B
Day’s Range
$20.51 – $22.10
52wk Range
$15.64 – $34.45
Volume
5.4M
Avg Vol
2.5M
Gross Margin
47.33%
Dividend Yield
2.96%
Iridium hopes to partner with telecommunications companies like T-Mobile to enable them to extend service beyond their traditional land-based networks, thereby eliminating coverage gaps. Iridium also plans to work with device makers to help them more easily connect to its 5G voice, data, and navigation services.
“This milestone reinforces why mobile network operators and chipset makers are engaging with Iridium,” CEO Matt Desch said in a press release. “We offer a low-risk, globally coordinated, and operational network designed to complement what they do, not compete with what they do.”
On track to debut in 2026
Iridium is targeting a commercial launch later this year.
“Iridium NTN Direct is no longer a concept, it’s on the air, sending messages, and now being rigorously tested to meet our elite performance standards,” Desch said.