Rocket Lab has decided to acquire satellite communications company Iridium Communications, the Wall Street Journal reported on June 29. The strategy is to secure a satellite communications network and global spectrum assets to compete with SpaceX.

As SpaceX’s satellite service expands its foothold among consumer and government customers, pressure on rivals is increasing and industry consolidation is continuing, the report said. Globalstar agreed in April to be acquired by Amazon, and SES completed its acquisition of Intelsat last year. SpaceX also bought EchoStar spectrum.

Rocket Lab said it will combine its launch and satellite manufacturing capabilities with Iridium’s global service footprint and spectrum assets. It plans to use those resources to develop next-generation satellites to replace Iridium’s current constellation.

Iridium currently operates 66 low-Earth orbit satellites and provides communications services to ships, mines and U.S. government agencies. It holds spectrum rights usable worldwide, and the satellites have at least 10 years of service life remaining, the WSJ reported.

Rocket Lab CEO Peter Beck (피터 벡) said, "Not only have we secured excellent spectrum, but we have also gained a business that is already generating cash."

Iridium posted revenue of $872 million and net profit of $114 million last year.