LightSquared, a recent 4G wireless broadband company that’s making waves for plans to provide wholesale service, is changing up the game once again. They released a press release earlier today that their 2007 cooperation agreement with mobile satellite services provider Inmarstat has been initiated. Inmarstat will receive a series of payments from LightSquared that will total $337.5 million within 18 months. The plan, coordinated between the two companies in 2007, (back when LightSquared was still SkyTerra) will trigger the re-banding of the L-band radio spectrum in North America. It expands the potential contiguous spectrum for both companies, solving the dilemma of limited spectrum that many wireless networks are faced with. This will expand LightSquared’s opportunities for the deployment of its TD-LTE network.
“Implementation of this agreement represents a significant milestone in LightSquared’s plan to build the nation’s first wholesale only 4G-LTE wireless broadband network,” said Sanjiv Ahuja, chairman and chief executive officer of LightSquared. “Triggering this agreement will now give us the contiguous spectrum we need to support additional network capacity to meet the growing demand for wireless data.”
LightSquared is making a network that will allow smaller companies without their own network or that only have limited coverage to develop and market LightSquared’s service as their own, even with their own devices and plans. LightSquared is controlled by Harbinger Capital Partners, an investment banking firm. There is an option on when to implement the next phase of the plan (agreed upon in 2007) in which Inmarastat would make additional spectrum available for the lower cost of $115 million a year. The entire program is expected to take place within the next 3 years.
Disclosure: Long uk: isat