LightSquared, that wants to build a new nationwide 4G-LTE wireless broadband network integrated with satellite coverage, has initiated Phase 1 of a Cooperation Agreement between Inmarsat and LightS
LightSquared, that wants to build a new nationwide 4G-LTE wireless broadband network integrated with satellite coverage, has initiated Phase 1 of a Cooperation Agreement between Inmarsat and LightSquared.
Under the agreement originally signed in December 2007 for L-Band operations in North America, Inmarsat and SkyTerra (now LightSquared), designed a phased plan aimed at addressing growing wireless broadband demand. The agreement increases the amount of contiguous spectrum available to both parties and provides LightSquared enhanced operational flexibility for deployment of its 4G-LTE integrated terrestrial and satellite network.
â€œImplementation of this agreement represents a significant milestone in LightSquaredâ€™s plan to build the nationâ€™s first wholesale only 4G-LTE wireless broadband network. 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,â€ said Sanjiv Ahuja, chairman and chief executive officer of LightSquared.
To implement Phase 1, Inmarsat will immediately begin a process of transition to a modified spectrum plan to increase spectrum contiguity. This process is expected to take 18 months and will require Inmarsat to incur the cost of certain network modifications.
During implementation of Phase 1, LightSquared will make a series of payments to Inmarsat totalling $337.5 million (USD). Additionally, LightSquared has an option to implement Phase 2 which will add further capacity to its network. Phase 2 may be exercised at any time through January 1, 2013 and provides that Inmarsat would make additional spectrum available at an annual cost of $115 million (USD) per year. The Phase 2 process is expected to take 30 months following the exercise by LightSquared of the Phase 2 option.
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