in march 2010 , we entered into an agreement with space exploration technologies corp. , or spacex , to secure spacex as the primary launch services provider for iridium next , which we refer to as the spacex agreement . the spacex agreement , as amended , has a maximum price of $ 492.0 million for eight launches , each of which can carry nine satellites . as of december 31 , 2011 , we had made total payments of $ 43.9 million to spacex , which were classified within property and equipment , net , in the accompanying consolidated balance sheet as of december 31 , 2011 . 38 in june 2011 , we entered into an agreement with international space company kosmotras , or kosmotras , as a supplemental launch services provider for iridium next . the agreement provides for the purchase of up to six launches and six additional launch options . each launch can carry two satellites . if we purchase all six launches , we will pay kosmotras a total of approximately $ 184.3 million . if we do not purchase any launches by march 31 , 2013 , the agreement will terminate , and our payments to kosmotras , including in respect of pre-launch development work , non-recurring milestone payments already completed at that time and termination fees , would be approximately $ 15.1 million . as of december 31 , 2011 , we had made aggregate payments of $ 11.2 million to kosmotras which were capitalized as construction in progress within property and equipment , net in the accompanying consolidated balance sheet . credit facility on october 4 , 2010 , we entered into a $ 1.8 billion loan facility , or the credit facility , with a syndicate of bank lenders . ninety-five percent of our obligations under the credit facility are insured by compagnie française d'assurance pour le commerce extérieur , or coface . the credit facility consists of two tranches , with draws and repayments applied pro rata in respect of each tranche : tranche a  $ 1,537,500,000 at a fixed rate of 4.96 % ; and tranche b  $ 262,500,000 at a floating rate equal to the london interbank offer rate , or libor , plus 1.95 % . in connection with each draw made under the credit facility , we borrow an additional amount equal to 6.49 % of such draw to cover the premium for the coface insurance . we also pay a commitment fee of 0.80 % per year , in semi-annual installments , on any undrawn portion of the credit facility . funds drawn under the credit facility will be used for ( i ) 85 % of the costs under the fsd for the design and manufacture of iridium next , ( ii ) the premium for the coface insurance and ( iii ) the payment of a portion of interest during a portion of the construction and launch phase of iridium next . scheduled semi-annual principal repayments will begin six months after the earlier of ( i ) the successful deployment of a specified number of iridium next satellites or ( ii ) september 30 , 2017. during this repayment period , interest will be paid on the same date as the principal repayments . prior to the repayment period , interest payments are due on a semi-annual basis in april and october . interest expense incurred during the year ended december 31 , 2011 was $ 11.9 million . all interest costs incurred related to the credit facility are capitalized during the construction period of the assets ; accordingly we capitalized $ 11.9 million related to interest incurred in 2011. we pay interest on each semi-annual due date through a combination of a cash payment and a deemed additional loan . the $ 11.9 million in interest incurred during the year ended december 31 , 2011 consisted of $ 3.6 million payable in cash , of which $ 2.7 million was paid during the year and $ 0.9 million was accrued at year end , and $ 8.3 million payable by deemed loans , of which $ 6.3 million was paid during the year and $ 2.0 million was accrued at year end . the credit facility will mature seven years after the start of the principal repayment period . in addition , we are required to maintain minimum cash reserve levels for debt service , which are classified as restricted cash on the accompanying consolidated balance sheet . minimum debt service reserve levels are estimated as follows ( in millions ) : replace_table_token_9_th the required minimum debt service reserve level at december 31 , 2011 was $ 27.0 million . obligations under the credit facility are guaranteed by us and our subsidiaries that are obligors under the credit facility . our obligations are secured on a senior basis by a lien on substantially all of our assets and those of the other obligors . we may not prepay any borrowings prior to december 31 , 2015. if , on that date , a specified number of iridium next satellites have been successfully launched and we have adequate time and resources to complete the iridium next constellation on schedule , we may prepay the borrowings without penalty . in addition , following the completion of the iridium next constellation , we may prepay the borrowings without penalty . any amounts repaid may not be reborrowed . we must repay the loans in full upon ( i ) a delisting of our common stock , ( ii ) a change in control of our company or our ceasing to own 100 % of any of the other obligors or ( iii ) the sale of all or substantially all of our assets . we must apply all or a portion of specified capital raising proceeds , insurance proceeds and condemnation proceeds to the prepayment of the loans . story_separator_special_tag deferred financing costs direct and incremental costs incurred in connection with securing debt financing are deferred on our balance sheet and then are amortized as additional interest expense using an effective interest method over the term of the related debt . the effective interest rate calculation requires us to make assumptions and estimates in determining estimated periodic interest expense . the calculation includes assumptions and estimates with respect to future borrowing dates and amounts , repayment dates and amounts , and periodic libor . if actual borrowing amounts and dates , repayment amounts and dates , and libor rates are not consistent with our estimates or assumptions , we may be exposed to changes that could be material to our property and equipment , net balance ( since we are capitalizing interest expense as part of the cost of iridium next ) , deferred financing costs balance , depreciation expense , interest expense , income from operations and net income . 43 comparison of our results of operations for the year ended december 31 , 2011 and the year ended december 31 , 2010 replace_table_token_10_th revenue total revenue increased by 10 % for the year ended december 31 , 2011 , compared to the prior year , principally due to growth in billable subscribers , which drove growth in both commercial and government services revenue as well as increased sales of subscriber equipment . billable subscribers at december 31 , 2011 were approximately 523,000 , an increase of 22 % from december 31 , 2010. service revenue replace_table_token_11_th ( 1 ) billable subscriber numbers shown are at the end of the respective period . ( 2 ) average monthly revenue per unit , or arpu , is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period . service revenue was $ 262.3 million for the year ended december 31 , 2011 , an increase of 11 % from the prior year , primarily due to growth in billable subscribers in commercial and government services . 44 the increase in commercial voice revenue was principally due to billable subscriber growth , including growth related to iridium openport , our broadband data maritime service , and an increase in usage of pre-paid minutes , partially offset by a decrease in arpu . commercial voice arpu decreased by $ 3 over the comparative period due to a decline in average minutes of use per postpaid subscriber , partially offset by growth in the higher arpu iridium openport service . in 2012 , we expect continued growth in commercial voice subscribers and revenue . commercial m2m data revenue growth was driven principally by an increase in the billable subscriber base . commercial m2m data arpu decreased by $ 2 over the comparative period due to the growth in subscribers using plans that generate lower revenue per unit . we anticipate an increase in m2m data revenues and a decrease in m2m data arpu in 2012 as we expect to continue to experience further growth in our subscriber base with many subscribers utilizing lower arpu plans . the increase in government voice revenue was principally due to billable subscriber growth , including growth related to netted iridium , a service that provides beyond-line-of-sight , push-to-talk capability for user-defined groups . the increase in government m2m data revenue was driven primarily by billable subscriber growth . government voice arpu decreased by $ 5 over the comparative period due to a higher proportion of billable subscribers on the lower priced netted iridium plan . government m2m data arpu was flat year over year . future growth in government voice and m2m data billable subscribers and revenue may be negatively affected by reductions in u.s. defense spending and deployed troop levels , and a corresponding decrease in subscribers under our agreements with the u.s. government , which account for a majority of our government services revenue and are subject to annual renewals . subscriber equipment revenue subscriber equipment revenue increased to $ 94.7 million for the year ended december 31 , 2011 , an increase of 5 % from the prior year . the increase in subscriber equipment revenue was primarily due to increased volume in m2m data device and handset sales . these increases were partially offset by decreases in handset unit prices and the lower selling price of the iridium 9602 full-duplex short-burst data transceiver , introduced in may 2010 , which is less expensive than its predecessor , the iridium 9601. future subscriber equipment sales to the u.s. government , including sales through non-government distributors , may be negatively affected by reductions in u.s. defense spending and deployed troop levels . engineering and support service revenue replace_table_token_12_th engineering and support service revenue increased by $ 5.7 million , or 26 % , from the prior year primarily due to an increase in the level of effort for a gateway upgrade project for the u.s. government , partially offset by decreases in government sponsored research and development contracts . operating expenses total operating expenses decreased by 1 % to $ 307.3 million for the year ended december 31 , 2011 from $ 310.8 million for the prior year . this decrease was due to decreased cost of subscriber equipment , decreased cost of services and decreased selling , general and administrative expenses . the decrease was partially offset by increased depreciation and amortization . cost of services ( exclusive of depreciation and amortization ) cost of services ( exclusive of depreciation and amortization ) includes the cost of network engineering and operations staff , including contractors , software maintenance , product support services and cost of services for government and commercial engineering and support service revenue . cost of services ( exclusive of depreciation and amortization )

cash and indebtedness at december 31 , 2011 , our total cash and cash equivalents was $ 136.4 million , and we had an aggregate of $ 417.1 million of external indebtedness related to borrowings under the credit facility . 50 cash flows  comparison of the year ended december 31 , 2011 and the year ended december 31 , 2010 the following table shows our consolidated cash flows from operating , investing and financing activities for the years ended december 31 , ( in millions ) : replace_table_token_16_th cash flows from operating activities net cash provided by operating activities for the year ended december 31 , 2011 increased primarily due to a $ 36.0 million increase in net income including adjustments for non-cash items of $ 19.0 million . the increase in net income was driven by our revenue growth and operating expense savings . these two favorable trends to operating cash flow were partially offset by the $ 11.2 million increase in the commitment fee on the undrawn portion of our credit facility for the year ended december 31 , 2011 as a result of the credit facility being in place for the entire year . we incurred a commitment fee for only a portion of the prior year . cash flows from investing activities net cash used in investing activities for the year ended december 31 , 2011 increased primarily due to $ 122.0 million of increased capital expenditures related to iridium next , including payments related to the purchase of equipment and software for our satellite , network and gateway operations . cash flows from financing activities net cash provided by financing activities for the year ended december 31 , 2011 increased primarily due to a $ 139.8 million increase in borrowings under the credit facility .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash and indebtedness at december 31 , 2011 , our total cash and cash equivalents was $ 136.4 million , and we had an aggregate of $ 417.1 million of external indebtedness related to borrowings under the credit facility . 50 cash flows  comparison of the year ended december 31 , 2011 and the year ended december 31 , 2010 the following table shows our consolidated cash flows from operating , investing and financing activities for the years ended december 31 , ( in millions ) : replace_table_token_16_th cash flows from operating activities net cash provided by operating activities for the year ended december 31 , 2011 increased primarily due to a $ 36.0 million increase in net income including adjustments for non-cash items of $ 19.0 million . the increase in net income was driven by our revenue growth and operating expense savings . these two favorable trends to operating cash flow were partially offset by the $ 11.2 million increase in the commitment fee on the undrawn portion of our credit facility for the year ended december 31 , 2011 as a result of the credit facility being in place for the entire year . we incurred a commitment fee for only a portion of the prior year . cash flows from investing activities net cash used in investing activities for the year ended december 31 , 2011 increased primarily due to $ 122.0 million of increased capital expenditures related to iridium next , including payments related to the purchase of equipment and software for our satellite , network and gateway operations . cash flows from financing activities net cash provided by financing activities for the year ended december 31 , 2011 increased primarily due to a $ 139.8 million increase in borrowings under the credit facility .
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 Suspicious Activity Report : in march 2010 , we entered into an agreement with space exploration technologies corp. , or spacex , to secure spacex as the primary launch services provider for iridium next , which we refer to as the spacex agreement . the spacex agreement , as amended , has a maximum price of $ 492.0 million for eight launches , each of which can carry nine satellites . as of december 31 , 2011 , we had made total payments of $ 43.9 million to spacex , which were classified within property and equipment , net , in the accompanying consolidated balance sheet as of december 31 , 2011 . 38 in june 2011 , we entered into an agreement with international space company kosmotras , or kosmotras , as a supplemental launch services provider for iridium next . the agreement provides for the purchase of up to six launches and six additional launch options . each launch can carry two satellites . if we purchase all six launches , we will pay kosmotras a total of approximately $ 184.3 million . if we do not purchase any launches by march 31 , 2013 , the agreement will terminate , and our payments to kosmotras , including in respect of pre-launch development work , non-recurring milestone payments already completed at that time and termination fees , would be approximately $ 15.1 million . as of december 31 , 2011 , we had made aggregate payments of $ 11.2 million to kosmotras which were capitalized as construction in progress within property and equipment , net in the accompanying consolidated balance sheet . credit facility on october 4 , 2010 , we entered into a $ 1.8 billion loan facility , or the credit facility , with a syndicate of bank lenders . ninety-five percent of our obligations under the credit facility are insured by compagnie française d'assurance pour le commerce extérieur , or coface . the credit facility consists of two tranches , with draws and repayments applied pro rata in respect of each tranche : tranche a  $ 1,537,500,000 at a fixed rate of 4.96 % ; and tranche b  $ 262,500,000 at a floating rate equal to the london interbank offer rate , or libor , plus 1.95 % . in connection with each draw made under the credit facility , we borrow an additional amount equal to 6.49 % of such draw to cover the premium for the coface insurance . we also pay a commitment fee of 0.80 % per year , in semi-annual installments , on any undrawn portion of the credit facility . funds drawn under the credit facility will be used for ( i ) 85 % of the costs under the fsd for the design and manufacture of iridium next , ( ii ) the premium for the coface insurance and ( iii ) the payment of a portion of interest during a portion of the construction and launch phase of iridium next . scheduled semi-annual principal repayments will begin six months after the earlier of ( i ) the successful deployment of a specified number of iridium next satellites or ( ii ) september 30 , 2017. during this repayment period , interest will be paid on the same date as the principal repayments . prior to the repayment period , interest payments are due on a semi-annual basis in april and october . interest expense incurred during the year ended december 31 , 2011 was $ 11.9 million . all interest costs incurred related to the credit facility are capitalized during the construction period of the assets ; accordingly we capitalized $ 11.9 million related to interest incurred in 2011. we pay interest on each semi-annual due date through a combination of a cash payment and a deemed additional loan . the $ 11.9 million in interest incurred during the year ended december 31 , 2011 consisted of $ 3.6 million payable in cash , of which $ 2.7 million was paid during the year and $ 0.9 million was accrued at year end , and $ 8.3 million payable by deemed loans , of which $ 6.3 million was paid during the year and $ 2.0 million was accrued at year end . the credit facility will mature seven years after the start of the principal repayment period . in addition , we are required to maintain minimum cash reserve levels for debt service , which are classified as restricted cash on the accompanying consolidated balance sheet . minimum debt service reserve levels are estimated as follows ( in millions ) : replace_table_token_9_th the required minimum debt service reserve level at december 31 , 2011 was $ 27.0 million . obligations under the credit facility are guaranteed by us and our subsidiaries that are obligors under the credit facility . our obligations are secured on a senior basis by a lien on substantially all of our assets and those of the other obligors . we may not prepay any borrowings prior to december 31 , 2015. if , on that date , a specified number of iridium next satellites have been successfully launched and we have adequate time and resources to complete the iridium next constellation on schedule , we may prepay the borrowings without penalty . in addition , following the completion of the iridium next constellation , we may prepay the borrowings without penalty . any amounts repaid may not be reborrowed . we must repay the loans in full upon ( i ) a delisting of our common stock , ( ii ) a change in control of our company or our ceasing to own 100 % of any of the other obligors or ( iii ) the sale of all or substantially all of our assets . we must apply all or a portion of specified capital raising proceeds , insurance proceeds and condemnation proceeds to the prepayment of the loans . story_separator_special_tag deferred financing costs direct and incremental costs incurred in connection with securing debt financing are deferred on our balance sheet and then are amortized as additional interest expense using an effective interest method over the term of the related debt . the effective interest rate calculation requires us to make assumptions and estimates in determining estimated periodic interest expense . the calculation includes assumptions and estimates with respect to future borrowing dates and amounts , repayment dates and amounts , and periodic libor . if actual borrowing amounts and dates , repayment amounts and dates , and libor rates are not consistent with our estimates or assumptions , we may be exposed to changes that could be material to our property and equipment , net balance ( since we are capitalizing interest expense as part of the cost of iridium next ) , deferred financing costs balance , depreciation expense , interest expense , income from operations and net income . 43 comparison of our results of operations for the year ended december 31 , 2011 and the year ended december 31 , 2010 replace_table_token_10_th revenue total revenue increased by 10 % for the year ended december 31 , 2011 , compared to the prior year , principally due to growth in billable subscribers , which drove growth in both commercial and government services revenue as well as increased sales of subscriber equipment . billable subscribers at december 31 , 2011 were approximately 523,000 , an increase of 22 % from december 31 , 2010. service revenue replace_table_token_11_th ( 1 ) billable subscriber numbers shown are at the end of the respective period . ( 2 ) average monthly revenue per unit , or arpu , is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period . service revenue was $ 262.3 million for the year ended december 31 , 2011 , an increase of 11 % from the prior year , primarily due to growth in billable subscribers in commercial and government services . 44 the increase in commercial voice revenue was principally due to billable subscriber growth , including growth related to iridium openport , our broadband data maritime service , and an increase in usage of pre-paid minutes , partially offset by a decrease in arpu . commercial voice arpu decreased by $ 3 over the comparative period due to a decline in average minutes of use per postpaid subscriber , partially offset by growth in the higher arpu iridium openport service . in 2012 , we expect continued growth in commercial voice subscribers and revenue . commercial m2m data revenue growth was driven principally by an increase in the billable subscriber base . commercial m2m data arpu decreased by $ 2 over the comparative period due to the growth in subscribers using plans that generate lower revenue per unit . we anticipate an increase in m2m data revenues and a decrease in m2m data arpu in 2012 as we expect to continue to experience further growth in our subscriber base with many subscribers utilizing lower arpu plans . the increase in government voice revenue was principally due to billable subscriber growth , including growth related to netted iridium , a service that provides beyond-line-of-sight , push-to-talk capability for user-defined groups . the increase in government m2m data revenue was driven primarily by billable subscriber growth . government voice arpu decreased by $ 5 over the comparative period due to a higher proportion of billable subscribers on the lower priced netted iridium plan . government m2m data arpu was flat year over year . future growth in government voice and m2m data billable subscribers and revenue may be negatively affected by reductions in u.s. defense spending and deployed troop levels , and a corresponding decrease in subscribers under our agreements with the u.s. government , which account for a majority of our government services revenue and are subject to annual renewals . subscriber equipment revenue subscriber equipment revenue increased to $ 94.7 million for the year ended december 31 , 2011 , an increase of 5 % from the prior year . the increase in subscriber equipment revenue was primarily due to increased volume in m2m data device and handset sales . these increases were partially offset by decreases in handset unit prices and the lower selling price of the iridium 9602 full-duplex short-burst data transceiver , introduced in may 2010 , which is less expensive than its predecessor , the iridium 9601. future subscriber equipment sales to the u.s. government , including sales through non-government distributors , may be negatively affected by reductions in u.s. defense spending and deployed troop levels . engineering and support service revenue replace_table_token_12_th engineering and support service revenue increased by $ 5.7 million , or 26 % , from the prior year primarily due to an increase in the level of effort for a gateway upgrade project for the u.s. government , partially offset by decreases in government sponsored research and development contracts . operating expenses total operating expenses decreased by 1 % to $ 307.3 million for the year ended december 31 , 2011 from $ 310.8 million for the prior year . this decrease was due to decreased cost of subscriber equipment , decreased cost of services and decreased selling , general and administrative expenses . the decrease was partially offset by increased depreciation and amortization . cost of services ( exclusive of depreciation and amortization ) cost of services ( exclusive of depreciation and amortization ) includes the cost of network engineering and operations staff , including contractors , software maintenance , product support services and cost of services for government and commercial engineering and support service revenue . cost of services ( exclusive of depreciation and amortization )

