LightSquare, Inmarsat start first phase of broadband collaboration

By Tess Stynes, Dow Jones Newswires

Deal gives firms more contiguous spectrum in U.S.

Wholesale broadband company LightSquared has triggered the first phase of a late 2007 cooperation agreement with mobile satellite communications services provider Inmarsat PLC, which will receive a series of payments totaling $337.5 million, in a plan to meet growing demand for wireless broadband.

LightSquared is controlled by private-equity firm Harbinger Capital Partners, which is moving to build a nationwide broadband wireless network in the U.S. It awarded Nokia Siemens Networks a $7 billion contract last month to supply equipment. Harbinger’s plan involves installing 40,000 wireless base stations and launching two satellites, with a goal of covering 92% of the U.S. population within four and a half years.

The pact between LightSquared and Inmarsat aims to increase the contiguous broadband spectrum available to both companies and give LightSquared increased flexibility to roll out its fourth-generation network, which will allow those without their own wireless network or limited geographic coverage to develop and sell their own devices, applications and services.

Under the plan, Inmarsat will begin an 18-month transition to a modified spectrum plan during which Inmarsat will make a series of payments including a $81.3 million initial one.

LightSquared, formerly SkyTerra, has the option to implement Phase 2 through the start of 2013, under which Inmarsat would make additional spectrum available at a cost of $115 million a year. The program is expected to take 2 1/2 years.

Inmarsat shares traded in New York closed Tuesday at $10.70 and were inactive premarket.

About Mark Milliman

Mark Milliman is a Principal Consultant at Inphotonics Research driving the adoption and assisting local governments to plan, build, operate, and lease access open-access municipal broadband networks. Additionally, he works with entrepreneurs and venture capitalists to increase the value of their intellectual capital through the creation of strategic product plans and execution of innovative marketing strategies. With more than 22 years of experience in the telecommunications industry that began at AT&T Bell Laboratories, Mark has built fiber, cable, and wireless networks around the world to deliver voice, video, and data services. His thorough knowledge of all aspects of service delivery from content creation to the design, operation, and management of the network is utilized by carriers and equipment manufacturers. Mark conceived and developed one of the industry's first multi-service provisioning platform and is multiple patent holder. He is active in the IEEE as a senior member. Mark received his B.S. in Electrical Engineering from Iowa State University and M.S. in Electrical Engineering from Carnegie Mellon University.
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One Comment

  1. what is the problem/conflict with GPS satellites?

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