Iridium & Deutsche Telekom Join Forces to Expand Global IoT Connectivity

Iridium Communications (IRDM) recently partnered with Deutsche Telekom (DTEGY) 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 QuoteIridium’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 UpgradesIridium 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 OutlookIridium 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 PerformanceIridium 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 ResearchStocks to ConsiderUbiquiti Inc. (UI) carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks hereIn 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) 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.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Telekom AG (DTEGY): Free Stock Analysis Report Viasat Inc. (VSAT): Free Stock Analysis Report Iridium Communications Inc (IRDM): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks