Iridium Communications (IRDM Quick QuoteIRDM - Free Report) recently teamed up with Syniverse, a top provider of mobile connectivity solutions, to enable the global deployment of its new Iridium NTN Direct service, a cutting-edge, standards-based Non-Terrestrial Network (NTN) service. The initiative aims to provide direct-to-device (D2D) and narrowband IoT (NB-IoT) connectivity across the globe, seamlessly integrated with terrestrial mobile networks.

Iridium is known for its unique Low-Earth Orbit (LEO) satellite constellation, offering reliable global voice and data communication services. With the launch of Iridium NTN Direct, the company is expanding its footprint to support NTN services that directly connect consumer devices and IoT infrastructure, without the need for traditional ground-based cell towers.

Management further highlighted the GSMA 2025 Industry Survey, which states that 85% of MNOs interested in NTN services prefer LEO solutions for their global coverage capabilities. Iridium NTN Direct meets this demand with a fully deployed, owned and operated satellite constellation and globally harmonized MSS spectrum.

What Does Iridium NTN Direct Offer?

Iridium NTN Direct is a standards-compliant service aligned with the 3GPP Release 19, designed to support D2D messaging, NB-IoT communication and SOS services for emergencies. This capability unlocks opportunities for a broad spectrum of industries, including
consumer devices, automobiles and industrial applications in agriculture, transportation, logistics, energy and utilities.

The true power of Iridium NTN Direct lies in its integration with Syniverse, whose infrastructure supports roaming, interoperability, authentication and billing services for more than 830 mobile operators and 600 carrier customers across 170 countries. This integration is crucial for ensuring carrier-grade service quality, scalability and seamless global connectivity for Iridium’s new satellite offering. Through Syniverse’s global IPX backbone, Iridium NTN Direct will emerge as a user-friendly solution for MNOs, allowing them to extend their networks beyond terrestrial limits.

The 3GPP Release 19, which standardizes many aspects of NTN and D2D communications, is expected to be finalized by late 2025. Following this, Iridium-connected devices supporting NTN Direct are slated to hit the market in 2026.

As MNOs compete to capture emerging markets and meet growing demands for uninterrupted connectivity, especially in rural and industrial applications, Iridium NTN Direct is likely to offer a reliable, integrated solution for their subscribers.

Iridium IoT, PNT & NTN D2D Build Momentum

Iridium has been making solid R&D investments to boost its technology infrastructure. The company expects to generate about $1 billion in annual Service revenues by 2030. To achieve this long-term goal, management is focused on developing several services, including Satellite Time and Location (STL), Midband services, D2D and satellite-based personal communication devices. In January 2024, the company unveiled Project Stardust, marking the evolution of its D2D strategy through the development of a 3GPP 5G standards-based NB-IoT NB-NTN service. 

In September 2024, the 3GPP approved Iridium’s offer to expand the capability of NB-IoT for NTN into the official Work Plan for 3GPP Release 19 (set to conclude in the fourth quarter of 2025). This will likely be a key platform for its consumer-focused D2D services for smartphones and wearables. 

It will also support inbound roaming for IoT devices/applications, on its NB-IoT satellite network and provide reliable, worldwide coverage for these devices and applications. Standards-based chipsets are expected to reduce costs for manufacturers and customers using Iridium’s global network, making it easier to add satellite connectivity alongside cellular. This could open up new opportunities in industries where satellite was once too expensive and support strong IoT growth for Iridium in the years ahead.

IRDM’s Zacks Rank & Stock Price Performance

Iridium currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 20.5% in the past six months compared with the Zacks Satellite and Communication industry's fall of 16.2%.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Juniper Networks, Inc. (JNPR Quick QuoteJNPR - Free Report) , InterDigital, Inc. (IDCC Quick QuoteIDCC - Free Report) and Ubiquiti Inc. (UI Quick QuoteUI - Free Report) . JNPR presently sports a Zacks Rank #1(Strong Buy), while IDCC & UI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators. In the last reported quarter, it delivered an earnings surprise of 4.88%.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains well-suited to adapt to the changing market dynamics to overcome challenges while maximizing growth.