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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Tennessee investigator makes plea for help in Bobo case 18 Apr 2011 Kanye West saves day, reputation at Coachella 18 Apr 2011 Japan ministers confident in Treasuries after S&P move 18 Apr 2011 UPDATE 3-White House, Congress under pressure from S&P move 18 Apr 2011 Apple sues Samsung over Galaxy products 18 Apr 2011 Discussed 88 Palin returns with feisty, anti-establishment speech 83 Obama to lay out deficit plan with focus on tax, spending 74 UPDATE 1-Geithner says Congress will pass debt limit increase Watched South Korean "super gun" packs hi-tech killing power Mon, Feb 14 2011 Cupless bra combats cleavage crinkle Fri, Apr 15 2011 VW unveils new sporty Beetle Mon, Apr 18 2011 SMALL BUSINESS Patent battle hits Supreme Court A small Canadian firm's record $290-million patent victory over software giant Microsoft rests in the hands of the Supreme Court. Down to its final appeal, Microsoft argued a lower standard should be used, which could make some patents more vulnerable to legal challenge. Full Article | Video Microsoft-i4i fight has big patent implications A decade later i4i's battle with Microsoft nears finale Tech firms look to grow government ties for space work Tweet Share this By Karen Jacobs ATLANTA (Reuters) - U.S. government spending on defense and space is coming under pressure, but some technology companies are finding ways to find new business by providing data services to defense and civil agencies. Companies such... Email Print Factbox Factbox: What government shutdown would look like Fri, Apr 8 2011 Related News Special Report: How Libya is a showcase in the new arms race Mon, Apr 18 2011 Special report: In cyberspy vs. cyberspy, China has the edge Thu, Apr 14 2011 108 mins that stunned the world: Russia honors Gagarin Tue, Apr 12 2011 With no budget deal, government shutdown looms Fri, Apr 8 2011 Analysis & Opinion Warner Music sale would only be an opening act Government shutdown may kill corporate debt Related Topics Politics » Technology » Stocks By Karen Jacobs ATLANTA | Mon Apr 18, 2011 3:50pm EDT ATLANTA (Reuters) - U.S. government spending on defense and space is coming under pressure, but some technology companies are finding ways to find new business by providing data services to defense and civil agencies. Companies such as Iridium Communications Inc, a mobile satellite service provider, want to leverage their technical know-how to meet emerging needs. In March, Iridium won a $13.4 million Defense Department contract to enhance its Netted Iridium satellite communication system, which powers tactical radios used by more than 5,600 U.S. soldiers. The radios on the Iridium network can transmit voice or data signals to and from multiple users simultaneously via satellite. The company is part of an alliance that is urging the government to work with private industry to send sensors and other equipment into space on satellites already built for commercial use. Such arrangements could be a way for government agencies to gain space-based data at a fraction of the cost of establishing proprietary satellites. "There's going to be a lot of pressure over the next couple of years, which is why we've been talking about hosted payloads being so important," Iridium CEO Matt Desch said in an interview. "It's a cheaper, smarter way of doing things." Iridium said its next-generation satellite system will enable it to offer more data services. Iridium NEXT, which will include 66 operational satellites and six spare satellites in low Earth orbit, is due to be up and operational starting in 2015. The company has reserved space on each satellite for third-party payloads. While senior U.S. military officials saw the value of so-called hosted payloads on commercial satellites, Desch said, current budget pressures and generally slow decision-making were hindrances to greater government involvement. Officials "are frustrated in their organization's ability to react quickly," Desch said. POSSIBLE AVIATION DEAL Even so, Iridium is eyeing other potential deals. Efforts are under way on behalf of organizations such as the U.S. Federal Aviation Administration, Eurocontrol and Nav Canada to place a special receiver on Iridium NEXT satellites that would track aircraft movement in real time for air traffic control purposes. "We estimate that the FAA opportunity alone could generate tens of millions of dollars annually," Raymond James analyst Chris Quilty said in a note to clients last week. Inmarsat Plc, an Iridium rival, said the earthquake in Haiti and conflicts in the Middle East spurred government demand for its satellite voice and video transmissions. "If we find creative ways to bring our services to market, the outlook is actually quite good in that the requirements are not going away," said Leo Mondale, managing director of the Inmarsat GX wireless broadband network subsidiary. "There's an increasing acceptance and even embrace by governments, both defense and civil agencies, of commercial capacity and services as a long-term part of their portfolio," he said. Harris Corp, which makes telecommunications gear such as antenna reflectors deployed on orbit and tactical radios for soldiers that distribute voice and data in an encrypted form, said it won more than $300 million in new space-related contracts in the current fiscal year. 1 2 Next Politics Technology Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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