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LightSquared and Inmarsat go to Phase 2
Posted: 28-Jan-2011 [Source: LightSquared]

[After getting an FCC waiver earlier this week to offer its satellite communications spectrum to terrestrial partners, the company announces the go-ahead of Phase 2 of the agreement with Inmarsat expanding the spectrum available for deployment of its 4G-LTE integrated terrestrial and satellite network.]

Reston, VA -- LightSquared, the nation’s first wholesale-only integrated wireless broadband and satellite network, today announced it has delivered notice to Inmarsat for the triggering of Phase 2 the Cooperation Agreement between the two companies.

Under the Cooperation Agreement originally signed in December 2007, Inmarsat and LightSquared designed a two-phase plan aimed at increasing the amount of contiguous spectrum available to both parties and at providing LightSquared with enhanced operational flexibility for the deployment of its 4G-LTE integrated terrestrial and satellite network.

LightSquared triggered Phase 1 of the Cooperation Agreement in August 2010. For Phase 1, LightSquared is currently making a series of payments to Inmarsat totaling $337.5 (USD) million.

Under the provisions of Phase 2 of the agreement, Inmarsat will make additional spectrum available to LightSquared at an annual cost of $115 million (USD) that will increase at a rate of 3 percent yearly.

“We are pleased to report that LightSquared is experiencing very strong demand for capacity on its 4G-LTE wholesale network, and therefore we have decided to accelerate the triggering of Phase 2 of our agreement with Inmarsat,” said Sanjiv Ahuja, chairman and chief executive officer of LightSquared. “When Phase 2 is fully executed, LightSquared will have the use of up to 59 MHz of terrestrial and L-Band ATC spectrum over the continental United States and Canada to operate its nationwide integrated 4G-LTE and satellite network.”

“LightSquared will work diligently and cooperatively with Inmarsat and its user community to coordinate implementation of all phases of this cooperation agreement to insure a seamless transition,” Ahuja said.


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