Price Changes Looming from Iridium

Iridium has announced several changes to their postpaid pricing plans and prepaid plan philosophy. Most of the changes go in effect in the final quarter of 2012 or on January 1, 2013. Others, such as the expiration of prepaid minutes older than three years, are not implemented until December 2013. Lastly, Iridium is also announcing three new service offerings set to become available in the early part of next year. A summary of the impending changes are presented below.

Closure of Some Plans

  • The PostPaid 10/30/55 minute plans will be discontinued as of October 31, 2012. No new activations will be permitted under these plans after October 31. Current Postpaid 10/30/55 plan subscribers can remain on the plans through October 31, 2013. Subscribers remaining on these plans at that date will be transitioned to a basic postpaid plan by Iridium. (OCENS Note: Iridium tells us that early termination fees will apply if a 10/30/55 plan subscriber desires to move to another plan before the end of their prevailing contract).
  • SMS bundle plans are also closing on October 31, 2012. However, subscribers can transition to an alternative plan prior to October 31. Those who have not transitioned by November 1 will be migrated to a standard postpaid plan and associated plan fees will become effective with the January 2013 bill cycle.

Increases in Postpaid, Crew and Paging Monthly Access Fees

  • Monthly access fees for Iridium Postpaid plans are expected to increase during the January 2013 billing cycle. Iridium has not yet released to us the new fee structure. We will issue a follow-up post when the new pricing is available.
  • Monthly access fees for Crew and Paging plans are expected to increase during the July 2013 billing cycle. Iridium has not yet released to us the new fee structure. We will issue a follow-up post when the new pricing is available.
  • Usage (ie in most cases this means the price per minute you pay) rates are not changing.

Prepaid Plan Price Increases

  • Prepaid plan charges will increase on January 1. New prices are not yet available. We will issue a follow-up post as soon as the new pricing is released.

Prepaid Plan Closures

  • The CONUS and North American 800, 2500, 6000 and 30000 plans will be discontinued as of October 31, 2012 and no new activations under these plans will be allowed after that date. Customers presently on these plans will continue to remain active on these plans until the earlier of the account expiration date or the exhaustion of the minutes purchased. Once the account expires or the minutes are exhausted the sim is available for recharge with a standard Iridium prepaid plan. All minutes are lost if such a recharge is attempted before account expiration or minute exhaustion.

Prepaid Minute Expiration

Commencing December 17, 2013, prepaid minutes older than three years will be expired (a four year expiration applies to owners of 3000 or 5000 minute vouchers) on a daily basis. The change applies to all prepaid accounts except scratch cards or OpenPort GoChat cards.

The expiration process will be conducted on a daily basis by Iridium as follows:

1) The total number of minutes purchased more than three (3) years ago will be calculated;
2) If total prepaid minutes consumed during the lifetime of the account are greater than the number of minutes purchased three years ago, no minutes will be expired;
3) If total prepaid minutes consumed during the lifetime of the account is less than the number purchased more than three years ago, the difference between the total purchased and total consumed will be expired. Units will be expired at 2359 UTC each day.
4) Some sample minute expiration scenarios are depicted in the Addendum found at the end of this blog post.

This is a permanent policy change by Iridium.

Beginning February 2013, the number of minutes that may expire if not used by December 17, 2013 will be available to all subscribers by dialing 2888 or sending an SMS to 2888. After December 17, 2013, dialing or texting 2888 will provide the subscriber with the number of minutes that may expire if not used within the next six (6) months.

New Services from Iridium

  • Caller ID – Caller ID will be offered as an included feature for our voice service packages.
  • LBS1 ‐ A new entry level Location Based Service package called “LBS 1” with no additional monthly fee for active telephony subscribers, 1 KB of monthly data included, and usage charges for overage will apply.
  • LBS17 – A new high use, fee‐based Location Based Service package called “LBS 17” that will carry a higher monthly fee for active telephony subscribers, 17 KB of monthly data included, and usage charges for overage will apply.

OCENS will update our customers as further details on these price and policy changes are made available by Iridium. Of course, don’t hesitate to contact OCENS if you have immediate questions.

Addendum 1: Prepaid Minute Expiration Scenarios

 

 

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