The news kept rolling for LigthSquared Subsidiary L.L.C. today as the company said it has triggered “Phase 2” of its spectrum realignment deal with fellow satellite communications provider Inmarsat.
The second phase of the 2007 Cooperation Agreement between LightSquared and Inmarsat calls Inmarsat to make additional spectrum available to LightSquared at an annual cost of $115 million that will increase at a rate of 3% yearly.
“When Phase 2 is fully executed, LightSquared will have the use of up to 59 megahertz of terrestrial and L-Band ATC spectrum over the continental United States and Canada to operate its nationwide integrated 4G-LTE and satellite network,” explained Sanjiv Ahuja, chairman and CEO of LightSquared.
Plans for this latest “trigger” were announced last October and had originally been planned to begin before the end of 2010. This followed up on the aptly-named Phase 1 of the agreement that was announced last August.
Earlier this week LightSquared received a waiver from the Federal Communications Commission that will allow the company to offer satellite- and terrestrial-based wholesale services. The FCC cited the spectrum realignment between LightSquared and Inmarsat that will free up spectrum for use with mobile broadband services as a main reason for granting the waiver.
LightSquared triggers 'Phase 2' of spectrum realignment plan
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