[2/16/07] Iridium Satellite will spend more than $2 billion to build and deploy its second-generation satellite constellation, dubbed Iridium Next, the company announced Feb. 15.

Plans call for the system  to be rolled out incrementally in order to ensure a smooth transition from the current constellation: In 2007 and 2008, Iridium will focus on identifying customer and system requirements, developing the architecture and selecting development and deployment partners.
 
"Independent studies confirm our expectation that the Iridium constellation will be fully operational into the next decade,” Matt Desch, Iridium chairman and CEO, said in a statement. “We are acting now to ensure a smooth transition to next. We are making major infrastructure investments and we are inviting potential partners to work with us on this breakthrough program.”

A portion of the cost will be funded through cash flow, which is about $60 million per year, and the remainder from capital markets and strategic partners, Iridium said.