LightSquared looks to have made arrangements granting the company more time to settle regulatory issues related to gaining access to spectrum assets, for a price.
LightSquared said today it reached a deal with Inmarsat to amend an agreement that will provide LightSquared with more time in which to attempt to secure access to spectrum needed to move forward with its mobile broadband plans. A report from Reuters noted that the agreement included an overdue $56.25 million payment to Inmarsat.
“This new agreement allows LightSquared an opportunity to focus its efforts on obtaining the necessary regulatory approvals to begin building the nation’s first, coast-to-coast wireless broadband system,” said Doug Smith, LightSquared’s interim COO and chief network officer. “The renewed partnership between LightSquared and Inmarsat strengthens the opportunity for consumers across the U.S. to obtain the benefits of increased competition that LightSquared will bring to the broadband wireless market, and the only viable opportunity for rural areas of the country to obtain access to reliable broadband wireless service.”
LightSquared has had an agreement with Inmarsat over the re-banding of spectrum assets that was to provide LightSquared with contiguous spectrum in the 1.6 GHz band to use for a nationwide, LTE-based wholesale network. However, LightSquared has not yet been provided approval to use that spectrum due to interference concerns with certain GPS systems.
LightSquared Chairman Sanjiv Ahuja noted at the recent Rural Cellular Association Spring Expo that the company would continue fighting to gain access to its spectrum.
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